Document:

ex_10-28.htm

    
      
        

        

      

      EXHIBIT 10.28

       

      GUARANTY
AGREEMENT (as amended, restated, supplemented or otherwise modified, this “Guaranty” or this
“Agreement”),
dated as of August 31, 2008, is made by GENERAL ENVIRONMENTAL MANAGEMENT, INC.,
a Delaware corporation (“GEM-DE”), GENERAL
ENVIRONMENTAL MANAGEMENT OF RANCHO CORDOVA LLC, a California limited liability
company (“GEMRC”), GEM MOBILE
TREATMENT SERVICES, INC., a California corporation (“GEMMTS”) and GEM 6
ACQUISITIONS CORPORATION, a Delaware corporation (“GEM 6,” and
collectively with GEM-DE, GEMRC, GEMMTS and any and all Additional Guarantors
from time to time, each a “Guarantor” and
collectively the “Guarantors”), in
favor of CVC California, LLC (the “Lender”).

       

      STATEMENT OF
PURPOSE

       

      Pursuant
to the terms of the Revolving Credit and Term Loan Agreement of even date
herewith by and between General Environmental Management, Inc., a Nevada
corporation (the “Borrower”), and the
Lender (as same may be amended, modified, supplemented and/or restated from time
to time, the “Loan
Agreement”), the Lender has agreed to make one or more Loans to the
Borrower in an aggregate principal amount of up to $13,500,000 at any time
outstanding, upon the terms and subject to the conditions set forth
therein.

       

      Each of
the Guarantors is a direct or indirect wholly-owned Subsidiary of the
Borrower.

       

      The
Borrower and the Guarantors, though separate legal entities, comprise one
integrated financial enterprise, and the Loans will inure, directly or
indirectly, to the benefit of each of the Guarantors.

       

      It is a
condition precedent to the obligation of the Lender to make the Loans under the
Loan Agreement that the Guarantors shall have executed and delivered this
Guaranty to the Lender.

       

      NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged by the parties hereto, and to induce the Lender to
enter into the Loan Agreement and to make the Loans thereunder, the Guarantors
hereby agree with the Lender as follows:

       

      ARTICLE
I

       

      DEFINED
TERMS

       

      SECTION
1.1  Definitions.  The
following terms when used in this Guaranty shall have the meanings assigned to
them below:

       

      “Additional Guarantor”
means each direct or indirect Subsidiary of the Borrower which hereafter becomes
a Guarantor pursuant to Section 4.17 hereof
and Section 5.11 of the Loan Agreement.

       

      “Applicable Insolvency
Laws” means all Applicable Laws (domestic or foreign) governing
bankruptcy, reorganization, arrangement, adjustment of debts, relief of debtors,
dissolution, insolvency, fraudulent transfers or conveyances or other similar
laws (including, without limitation, 11 U.S.C. Sections 544, 547, 548 and
550 and other “avoidance” provisions of Title 11 of the United States Code, as
amended or supplemented).

       

      
        
          
          

        

        
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      “Guaranteed
Obligations” has the meaning set forth in Section
2.1.

       

      “Guaranty” means this
Guaranty Agreement, as amended, restated, supplemented or otherwise modified
from time to time.

       

      SECTION
1.2 Other Definitional
Provisions.  Capitalized terms used and not otherwise defined
in this Guaranty, including the preambles and recitals hereof, shall have the
meanings ascribed to them in the Loan Agreement.  In the event of a
conflict between capitalized terms defined herein and in the Loan Agreement, the
Loan Agreement shall control.  The words “hereof,” “herein”, “hereto”
and “hereunder” and words of similar import when used in this Guaranty shall
refer to this Guaranty as a whole and not to any particular provision of this
Guaranty, and Section references are to this Guaranty unless otherwise
specified.  The meanings given to terms defined herein shall be
equally applicable to both the singular and plural forms of such
terms.  Where the context requires, terms relating to the Collateral
or any part thereof, when used in relation to a Guarantor, shall refer to such
Guarantor’s Collateral or the relevant part thereof.  The word
“including” and words of similar import when used in this Agreement shall mean
“including, without limitation,” unless otherwise specified.

       

      ARTICLE
II

       

      GUARANTY

       

      SECTION
2.1  Guaranty.  Each
Guarantor hereby, jointly and severally with the other Guarantors,
unconditionally guarantees to the Lender and its successors, endorsees,
transferees and assigns, the prompt payment and performance of all Obligations
of the Borrower, whether primary or secondary (whether by way of endorsement or
otherwise), whether now existing or hereafter arising, whether or not from time
to time reduced or extinguished (except by payment thereof) or hereafter
increased or incurred, whether enforceable or unenforceable as against the
Borrower, whether or not discharged, stayed or otherwise affected by any
Applicable Insolvency Law or proceeding thereunder, whether matured or
unmatured, whether joint or several, as and when the same become due and payable
(whether at maturity or earlier, by reason of acceleration, mandatory repayment
or otherwise), in accordance with the terms of the agreements and instruments
evidencing such Obligations, including all renewals, extensions or modifications
thereof (all such Obligations of the Borrower being hereafter collectively
referred to as the “Guaranteed
Obligations”).

       

      SECTION
2.2  Bankruptcy
Limitations on Guarantors.  Notwithstanding anything to the
contrary contained in Section 2.1, it is
the intention of each Guarantor and the Lender that, in any proceeding involving
the bankruptcy, reorganization, arrangement, adjustment of debts, relief of
debtors, dissolution or insolvency or any similar proceeding with respect to any
Guarantor or its assets, the amount of such Guarantor’s obligations with respect
to the Guaranteed Obligations shall be equal to, but not in excess of, the
maximum amount thereof not subject to avoidance or recovery by operation of
Applicable Insolvency Laws after giving effect to Section
2.3.  To that end, but only in the event and to the extent that
after giving effect to Section 2.3 such
Guarantor’s obligations with respect to the Guaranteed Obligations or any
payment made pursuant to such Guaranteed Obligations would, but for
the

       

      
        
          
          

        

        
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      operation
of the first sentence of this Section 2.2, be
subject to avoidance or recovery in any such proceeding under Applicable
Insolvency Laws after giving effect to Section 2.3, the
amount of such Guarantor’s obligations with respect to the Guaranteed
Obligations shall be limited to the largest amount which, after giving effect
thereto, would not, under Applicable Insolvency Laws, render such Guarantor’s
obligations with respect to the Guaranteed Obligations unenforceable or
avoidable or otherwise subject to recovery under Applicable Insolvency
Laws.  To the extent any payment actually made pursuant to the
Guaranteed Obligations exceeds the limitation of the first sentence of this
Section 2.2 and
is otherwise subject to avoidance and recovery in any such proceeding under
Applicable Insolvency Laws, the amount subject to avoidance shall in all events
be limited to the amount by which such actual payment exceeds such limitation
and the Guaranteed Obligations as limited by the first sentence of this Section 2.2 shall in
all events remain in full force and effect and be fully enforceable against such
Guarantor.  The first sentence of this Section 2.2 is
intended solely to preserve the rights of the Lender hereunder against such
Guarantor in such proceeding to the maximum extent permitted by Applicable
Insolvency Laws and neither such Guarantor, the Borrower, any other Guarantor
nor any other Person shall have any right or claim under such sentence that
would not otherwise be available under Applicable Insolvency Laws in such
proceeding.

       

      SECTION
2.3 Agreements for
Contribution.

       

      (a) 
To the extent that any Guarantor is required, by reason of its obligations
hereunder, to pay to the Lender an amount greater than the amount of value (as
determined in accordance with Applicable Insolvency Laws) actually made
available to or for the benefit of such Guarantor on account of the Loan
Agreement, this Guaranty or any other Loan Document, such Guarantor shall have
an enforceable right of contribution against the remaining Guarantors, and the
remaining Guarantors shall be jointly and severally liable for repayment of the
full amount of such excess payment.  Subject only to the subordination
provided in Section
2.3(d), such Guarantor further shall be subrogated to any and all rights
of the Lender against the Borrower and the remaining Guarantors to the extent of
such excess payment.

       

      (b) 
To the extent that any Guarantor would, but for the operation of this Section 2.3 and
by reason of its obligations hereunder or its obligations to other Guarantors
under this Section
2.3, be rendered insolvent for any purpose under Applicable Insolvency
Laws, each of the Guarantors hereby agrees to indemnify such Guarantor and
commits to make a contribution to such Guarantor’s capital in an amount at least
equal to the amount necessary to prevent such Guarantor from having been
rendered insolvent by reason of the incurrence of any such
obligations.

       

      (c) 
To the extent that any Guarantor would, but for the operation of this Section 2.3, be
rendered insolvent under any Applicable Insolvency Law by reason of its
incurring of obligations to any other Guarantor under the foregoing Sections 2.3(a) and
(b), such Guarantor shall, in turn, have rights of contribution to the
full extent provided in the foregoing Sections 2.3(a) and
(b) against the remaining Guarantors, such that all obligations of all of
the Guarantors hereunder and under this Section 2.3
shall be allocated in a manner such that no Guarantor shall be rendered
insolvent for any purpose under Applicable Insolvency Law by reason of its
incurrence of such obligations.

       

      
        
          
          

        

        
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      (d) 
Notwithstanding any payment or payments by any of the Guarantors hereunder, or
any set-off or application of funds of any of the Guarantors by the Lender, or
the receipt of any amounts by the Lender with respect to any of the Guaranteed
Obligations, none of the Guarantors shall be entitled to be subrogated to any of
the rights of the Lender against the Borrower or the other Guarantors or against
any collateral security held by the Lender for the payment of the Guaranteed
Obligations, nor shall any of the Guarantors seek any reimbursement from the
Borrower or any of the other Guarantors in respect of payments made by such
Guarantor in connection with the Guaranteed Obligations.  If any
amount shall be paid to any Guarantor on account of such subrogation rights at
any time when all of the Guaranteed Obligations shall not have been paid in full
or the Revolving Credit Commitment remains outstanding, such amount shall be
held by such Guarantor in trust for the ratable benefit of the Lender,
segregated from other funds of such Guarantor, and shall, forthwith upon receipt
by such Guarantor, be turned over to the Lender in the exact form received by
such Guarantor (duly endorsed by such Guarantor to the Lender, if required) to
be applied against the Guaranteed Obligations, whether matured or unmatured, in
the order set forth in the Loan Agreement.

       

      SECTION
2.4  Nature of
Guaranty.

       

      (a) Each
Guarantor agrees that this Guaranty is a continuing, unconditional guaranty of
payment and performance and not of collection, and that its obligations under
this Guaranty shall be primary, absolute and unconditional, irrespective of, and
unaffected by:

       

      (i) 
the validity, enforceability or any future amendment of, or change in, the Loan
Agreement or any other Loan Document or any other agreement, document or
instrument to which the Borrower or any Subsidiary is or may become a
party;

       

      (ii) 
the absence of any action to enforce this Guaranty, the Loan Agreement or any
other Loan Document or the waiver or consent by the Lender with respect to any
of the provisions of this Guaranty, the Loan Agreement or any other Loan
Document;

       

      (iii) 
the existence, value or condition of, or failure to perfect any Lien against,
any security for or other guaranty of the Guaranteed Obligations or any action,
or the absence of any action, by the Lender in respect of such security or
guaranty (including, without limitation, the release of any such security or
guaranty); or

       

      (iv) 
any other action or circumstances which might otherwise constitute a legal or
equitable discharge or defense of a surety or guarantor (all of which are, to
the fullest extent permitted by law, hereby waived);

       

      it being
agreed by each Guarantor that, subject to the first sentence of Section 2.2, its
obligations under this Guaranty shall not be discharged until the final
indefeasible payment and performance, in full, of the Guaranteed
Obligations.

       

      (b) 
Each Guarantor represents, warrants and agrees that its obligations under this
Guaranty are not and shall not be subject to any counterclaims, offsets or
defenses (except payment in full) of any kind against the Lender or the
Borrower, whether now existing or which may arise in the future.

       

      
        
          
          

        

        
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      (c) 
Each Guarantor hereby agrees and acknowledges that the Guaranteed Obligations,
and any of them, shall conclusively be deemed to have been created, contracted
or incurred, or renewed, extended, amended or waived, in reliance upon this
Guaranty, and all dealings between the Borrower and any of the Guarantors, on
the one hand, and the Lender, on the other hand, likewise shall be conclusively
presumed to have been had or consummated in reliance upon this
Guaranty.

       

      SECTION
2.5 Waivers.  To
the extent permitted by law, each Guarantor expressly waives all of the
following rights and defenses (and agrees not to take advantage of or assert any
such right or defense):

       

      (a) 
any rights it may now or in the future have under any statute, or at law or in
equity, or otherwise, to compel the Lender to proceed in respect of the
Obligations against the Borrower or any other Person or against any security for
or other guaranty of the payment and performance of the Guaranteed Obligations
before proceeding against, or as a condition to proceeding against, such
Guarantor;

       

      (b) 
any defense based upon the failure of the Lender to commence an action in
respect of the Guaranteed Obligations against the Borrower, such Guarantor, any
other guarantor or any other Person or any security for the payment and
performance of the Guaranteed Obligations;

       

      (c) 
any right to insist upon, plead or in any manner whatever claim or take the
benefit or advantage of, any appraisal, valuation, stay, extension, marshalling
of assets or redemption laws, or exemption, whether now or at any time hereafter
in force, which may delay, prevent or otherwise affect the performance by such
Guarantor of its obligations under, or the enforcement by the Lender of this
Guaranty;

       

      (d) 
any right of diligence, presentment, demand, protest and notice (except as
specifically required herein) of whatever kind or nature with respect to any of
the Guaranteed Obligations and waives, to the extent permitted by Applicable
Law, the benefit of all provisions of law which are or might be in conflict with
the terms of this Guaranty;

       

      (e) 
any and all right to notice of the creation, renewal, extension or accrual of
any of the Obligations and notice of or proof of reliance by the Lender upon, or
acceptance of, this Guaranty;

       

      (f) 
ALL RIGHTS AND DEFENSES THAT ARE OR MAY BECOME AVAILABLE TO ANY GUARANTOR BY
REASON OF SECTIONS 2787 TO 2855, INCLUSIVE, AND SECTION 3433 OF THE CALIFORNIA
CIVIL CODE OR SIMILAR APPLICABLE LAW;

       

      (g) 
all rights and benefits under Section 2809 of the California Civil Code and any
similar applicable law purporting to reduce a guarantor’s obligations in
proportion to the obligation of the principal or providing that the obligation
of a surety or guarantor must neither be larger nor in other respects more
burdensome than that of the principal;

       

      
        
          
          

        

        
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      (h) 
WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, EACH GUARANTOR WAIVES ALL
RIGHTS AND DEFENSES THAT IT MAY HAVE BECAUSE ALL OR ANY PART OF THE OBLIGATIONS
ARE NOW, OR MAY HEREAFTER BE, SECURED BY REAL PROPERTY.  THIS MEANS,
AMONG OTHER THINGS, THAT: (1) THE LENDER OR ANY OTHER PERSON MAY COLLECT FROM
ANY GUARANTOR WITHOUT FIRST FORECLOSING ON ANY REAL OR PERSONAL PROPERTY
COLLATERAL PLEDGED BY THE BORROWER OR GUARANTOR; (2) IF THE LENDER OR ANY OTHER
PERSON FORECLOSES ON ANY REAL PROPERTY COLLATERAL PLEDGED BY ANY GUARANTOR (A)
THE AMOUNT OF THE DEBT MAY BE REDUCED ONLY BY THE PRICE FOR WHICH THAT
COLLATERAL IS SOLD AT THE FORECLOSURE SALE, EVEN IF THE COLLATERAL IS WORTH MORE
THAN THE SALE PRICE; (B) THE LENDER OR ANY OTHER PERSON MAY COLLECT FROM ANY
GUARANTOR EVEN IF THE LENDER OR SUCH OTHER PERSON, BY FORECLOSURE ON THE REAL
PROPERTY COLLATERAL, HAS DESTROYED ANY RIGHT SUCH GUARANTOR MAY HAVE TO COLLECT
FROM THE BORROWER OR ANY OTHER GUARANTOR.  THIS IS AN UNCONDITIONAL
AND IRREVOCABLE WAIVER OF ANY RIGHTS AND DEFENSES ANY GUARANTOR MAY HAVE BECAUSE
THE BORROWER'S OR ANY GUARANTOR'S DEBT IS NOW, OR HEREAFTER MAY BE, SECURED BY
REAL PROPERTY.  THESE RIGHTS AND DEFENSES INCLUDE, BUT ARE NOT LIMITED
TO, ANY RIGHTS OR DEFENSES BASED UPON SECTIONS 580a, 580b, OR 726 OF THE
CALIFORNIA CODE OF CIVIL PROCEDURE AND ANY SIMILAR APPLICABLE LAWS;
and

       

      (i) 
IN ADDITION, EACH GUARANTOR WAIVES ANY REQUIREMENT OF MARSHALING OR ANY OTHER
PRINCIPLE OF ELECTION OF REMEDIES, AND ALL RIGHTS AND DEFENSES ARISING OUT OF
ANY ELECTION OF REMEDIES BY ANY BENEFICIARY UNDER A DEED OF TRUST, THE LENDER OR
ANY OTHER PERSON, EVEN THOUGH THAT ELECTION OF REMEDIES, SUCH AS A NON-JUDICIAL
FORECLOSURE WITH RESPECT TO SECURITY FOR A GUARANTEED OBLIGATION, HAS DESTROYED
SUCH GUARANTOR’S RIGHTS OF SUBROGATION AND REIMBURSEMENT AGAINST THE PRINCIPAL
BY THE OPERATION OF SECTION 580d OF THE CALIFORNIA CODE OF CIVIL PROCEDURE OR
OTHERWISE.

       

      The
foregoing waivers are of the essence of the transaction contemplated by the Loan
Agreement and the other Loan Documents and, but for this Guaranty and such
waivers, the Lender would decline to enter into the Loan Agreement and the other
Loan Documents.

       

      SECTION
2.6 Modification
of Loan Documents, etc.  None of the following shall impair or
release this Guaranty or any of the obligations of any Guarantor under this
Guaranty:

       

      (a) 
any change or extension of the manner, place or terms of payment of, or renewal
or alteration of all or any portion of, the Guaranteed Obligations;

       

      
        
          
          

        

        
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      (b) 
any action under or in respect of the Loan Agreement or the other Loan Documents
in the exercise of any remedy, power or privilege contained therein or available
to any of them at law, in equity or otherwise, or waiver or refrain from
exercising any such remedies, powers or privileges;

       

      (c) 
any amendment or modification, in any manner whatsoever (including, without
limitation, increases in principal amounts or lending commitments and increases
in interest rates, fees or other charges), of the Loan Documents;

       

      (d) 
any extension or waiver of the time for performance by any Guarantor, any other
guarantor, the Borrower or any other Person, or compliance with, any term,
covenant or agreement on its part to be performed or observed under a Loan
Document, or waiver of such performance or compliance or consent to a failure
of, or departure from, such performance or compliance;

       

      (e) 
the taking and holding security or Collateral for the payment of the Obligations
or the sale, exchange, release, disposal of, or other dealing with, any property
pledged, mortgaged or conveyed, or in which the Lender has been granted a Lien,
to secure any indebtedness of any Guarantor, any other guarantor or the Borrower
to the Lender (provided that the net
cash proceeds actually received by the Lender from Collateral shall be applied
to the Obligations);

       

      (f) 
the release of anyone who may be liable in any manner for the payment of any
amounts owed by any Guarantor, any other guarantor or the Borrower to the
Lender; or

       

      (g) 
any modification or termination of any intercreditor or subordination agreement
pursuant to which claims of other creditors of any Guarantor, any other
guarantor or the Borrower are subordinated to the claims of the
Lender.

       

      SECTION
2.7 Demand by the
Lender.  In addition to the terms set forth in this Article II and in no
manner imposing any limitation on such terms, if all or any portion of the then
outstanding Guaranteed Obligations are declared to be immediately due and
payable, then the Guarantors shall, upon demand in writing therefor by the
Lender to the Guarantors, pay all or such portion of the outstanding Guaranteed
Obligations then declared due and payable.

       

      SECTION
2.8 Remedies.  Upon
the occurrence and during the continuance of any Event of Default, the Lender
may enforce against the Guarantors their respective obligations and liabilities
hereunder and exercise such other rights and remedies as may be available to the
Lender hereunder, under the Loan Agreement or the other Loan Documents or
otherwise.

       

      SECTION
2.9 Benefits of
Guaranty.  The provisions of this Guaranty are for the benefit
of the Lender and its successors, transferees, endorsees and assigns, and
nothing herein contained shall impair, as between the Borrower and the Lender,
the obligations of the Borrower under the Loan Documents.  In the
event that all or any part of the Obligations are transferred, endorsed or
assigned by the Lender to any Person or Persons as permitted under the Loan
Agreement, any reference to a “Lender” herein shall be deemed to refer equally
to such Person or Persons.

       

      
        
          
          

        

        
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      SECTION
2.10 Termination;
Reinstatement.

       

      (a) 
Subject to Section
2.10(c) below, this Guaranty shall remain in full force and effect until
all the Guaranteed Obligations shall have been indefeasibly paid in
full.

       

      (b) 
No payment made by the Borrower, any other Guarantor, or any other Person
received or collected by the Lender from the Borrower, any other Guarantor, or
any other Person by virtue of any action or proceeding or any set-off or
appropriation or application at any time or from time to time in reduction of or
in payment of the Guaranteed Obligations shall be deemed to modify, reduce,
release or otherwise affect the liability of any Guarantor hereunder which
shall, notwithstanding any such payment (other than any payment made by such
Guarantor in respect of the obligations of the Guarantors or any payment
received or collected from such Guarantor in respect of the obligations of the
Guarantors), remain liable for the obligations of the Guarantors (as reduced by the
subject payment or collection) up to the maximum
liability of such Guarantor hereunder until the Guaranteed Obligations shall
have been indefeasibly paid in full.

       

      (c) 
Each Guarantor agrees that, if any payment made by the Borrower or any other
Person applied to the Obligations is at any time annulled, set aside, rescinded,
invalidated, declared to be fraudulent or preferential or otherwise required to
be refunded or repaid, or the proceeds of any Collateral are required to be
refunded by the Lender to the Borrower, its estate, trustee, receiver or any
other Person, including, without limitation, any Guarantor, under any
Applicable Law or equitable cause, then, to the extent of such payment or
repayment, each Guarantor’s liability hereunder (and any Lien or Collateral
securing such liability) shall be and remain in full force and effect, as fully
as if such payment had never been made, and, if prior thereto, this Guaranty
shall have been canceled or surrendered (and if any Lien or Collateral securing
such Guarantor’s liability hereunder shall have been released or terminated by
virtue of such cancellation or surrender), this Guaranty (and such Lien or
Collateral) shall be reinstated in full force and effect, and such prior
cancellation or surrender shall not diminish, release, discharge, impair or
otherwise affect the obligations of such Guarantor in respect of the amount of
such payment (or any Lien or Collateral securing such obligation).

       

      SECTION
2.11 Payments.  Payments
by the Guarantors shall be made to the Lender, to be credited and applied to the
Guaranteed Obligations in accordance with the Loan Agreement, in immediately
available Dollars to the account designated by the Lender.

       

      ARTICLE
III

       

      REPRESENTATIONS AND
WARRANTIES

       

      To induce
the Lender to make the Loans, each Guarantor hereby represents and warrants
that:

       

      SECTION
3.1 Existence.  Such
Guarantor is duly organized, validly existing and in good standing under the
laws of the jurisdiction of its incorporation or formation, has the requisite
power and authority to own, lease and operate its properties and to carry on its
business as now being and hereafter proposed to be conducted and is duly
qualified and authorized to do business in each jurisdiction in which the
character of its properties or the nature of its business requires such
qualification and authorization and the failure to be so qualified would
reasonably be expected to have a Material Adverse Effect.

       

      
        
          
          

        

        
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      SECTION
3.2 Authorization of
Agreement; Enforceability.  Such Guarantor has the right, power
and authority to execute, deliver and perform this Guaranty and has taken all
necessary corporate or other organizational action to authorize its execution,
delivery and performance of this Guaranty.  This Guaranty has been
duly executed and delivered by the duly authorized officers of such Guarantor
and this Guaranty constitutes the legal, valid and binding obligation of such
Guarantor enforceable against such Guarantor in accordance with its terms,
except as such enforcement may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar state or federal debtor relief laws from
time to time in effect which affect the enforcement of creditors’ rights in
general and the availability of equitable remedies.

       

      SECTION
3.3 No Conflict;
Consents.  The execution, delivery and performance by such
Guarantor of this Guaranty will not, by the passage of time, the giving of
notice or otherwise, violate any material provision of any Applicable Law or
Organic Document or contractual obligation of such Guarantor and will not result
in the creation or imposition of any Lien upon or with respect to any property
or revenues of such Guarantor.  No consent or authorization of, filing
with, or other act by or in respect of, any arbitrator or governmental authority
and no consent of any other Person (including, without limitation, any
stockholder or creditor of such Guarantor), is required in connection with the
execution, delivery, performance, validity or enforceability of this
Guaranty.

       

      SECTION
3.4 Litigation.  No
actions, suits or proceedings before any arbitrator or governmental authority
are pending or, to the Knowledge of such Guarantor, threatened by or against
such Guarantor or against any of its properties with respect to this Guaranty or
any of the transactions contemplated hereby.

       

      SECTION
3.5 Title to
Assets.  Such Guarantor has a valid leasehold interest in the
real property leased by it, and has good title to all of its personal property
sufficient to carry on its business free of any and all Liens of any type
whatsoever, except Permitted Liens.

       

      SECTION
3.6 Solvency.  As
of the Closing Date (or such later date upon which such Guarantor became a party
hereto), the Guarantors, taken as a whole, (i) have capital sufficient to carry
on their business and transactions and all business and transactions in which
they engage and are able to pay their debts as they mature, and (ii) do not
believe that they will incur debts or liabilities beyond their ability to pay
such debts or liabilities as they mature, subject in each case to the first
sentence of Section
2.2.

       

      ARTICLE
IV

       

      MISCELLANEOUS

       

      SECTION
4.1 Amendments in
Writing.  None of the terms or provisions of this Guaranty may
be waived, amended, supplemented or otherwise modified except in accordance with
Section 9.04 of the Loan Agreement.

       

      
        
          
          

        

        
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      SECTION
4.2 Notices.  All
notices and communications hereunder shall be given to the addresses and
otherwise made in accordance with Section 9.06 of the Loan Agreement; provided
that notices and communications to the Guarantors shall be directed to the
Guarantor at the address of the Borrower set forth in Section 9.06 of the Loan
Agreement.

       

      SECTION
4.3 Enforcement
Expenses, Indemnification.

       

      (a) 
Each Guarantor agrees to pay or reimburse the Lender for all its reasonable
costs and expenses incurred in connection with enforcing or preserving any
rights under this Guaranty and the other Loan Documents to which such Guarantor
is a party, including, without limitation, the reasonable fees and disbursements
of counsel to the Lender.

       

      (b) 
Each Guarantor agrees to pay, and to save the Lender harmless from, any and all
liabilities with respect to, or resulting from any delay in paying, any and all
stamp, excise, sales or other similar taxes which may be payable or determined
to be payable with respect to any of the Collateral or in connection with any of
the transactions contemplated by this Guaranty.  For clarity, the
foregoing does not include net income taxes, or franchise taxes imposed in lieu
of net income taxes, imposed generally by federal, state or local taxing
authorities with respect to interest or commitment fees or other fees payable
hereunder or changes in the rate of tax on the overall net income of the Lender
or its members.

       

      (c) 
Each Guarantor agrees to pay, and to save the Lender harmless from, any and all
liabilities, obligations, losses, damages, penalties, costs and expenses in
connection with actions, judgments, suits, costs, expenses or disbursements of
any kind or nature whatsoever with respect to the execution, delivery,
enforcement, performance and administration of this Guaranty to the extent the
Borrower would be required to do so pursuant to the Loan Agreement and/or the
Collateral Agreement.

       

      (d) 
The agreements in this Section 4.3 shall
survive repayment of the Obligations and all other amounts payable under the
Loan Agreement and the other Loan Documents.

       

      SECTION
4.4 Governing
Law.  This Guaranty shall be governed by, and construed and
interpreted in accordance with, the laws of the State of New York, without
giving effect to principles of conflicts of laws (other than Sections 5-1401 and
5-1402 of the New York General Obligations Law).

       

      SECTION
4.5 Consent to
Jurisdiction and Venue.

       

      (a) 
Each Guarantor hereby irrevocably consents to the personal jurisdiction of all
state and federal courts located in New York, New York (and any courts from
which an appeal from any of such courts must or may be taken) in any action,
claim or other proceeding arising out of any dispute in connection with this
Agreement and the other Loan Documents, any rights or obligations hereunder or
thereunder, or the performance of such rights and obligations.  Each
Guarantor hereby irrevocably consents to the service of a summons and complaint
and other process in any action, claim or proceeding brought by the Lender in
connection with this Agreement or the other Loan Documents, any rights or
obligations hereunder or thereunder, or the performance of such rights and
obligations, on behalf of itself or its property, by registered or certified
mail, return receipt requested, in the manner specified in Section 9.06 of the
Loan Agreement.  Nothing in this Section 4.5 shall
affect the right of the Lender to serve legal process in any other manner
permitted by Applicable Law or affect the right of the Lender to bring any
action or proceeding against any Guarantor or its properties in the courts of
any other jurisdictions.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      (b) 
The Guarantors hereby irrevocably waive any objection each may have now or in
the future to the laying of venue in the aforesaid jurisdiction in any action,
claim or other proceeding arising out of or in connection with this Guaranty,
any other Loan Document or the rights and obligations of the parties hereunder
or thereunder.  The Guarantors irrevocably waive, in connection with
such action, claim or proceeding, any plea or claim that the action, claim or
proceeding has been brought in an inconvenient forum.

       

      SECTION
4.6 Preservation of
Remedies, Damages

       

      (a) 
The parties hereto and to the other Loan Documents preserve, without diminution,
certain remedies that such Persons may employ or exercise freely, either alone,
in conjunction with or during a dispute.  Each such Person shall have
and hereby reserves the right to proceed in any court of proper jurisdiction or
by self-help (to the extent not prohibited by Applicable Law) to exercise or
prosecute the following remedies, as applicable:  (i) all rights to
foreclose against any real or personal property or other security by exercising
a power of sale granted in the Loan Documents or under Applicable Law or by
judicial foreclosure and sale, including a proceeding to confirm the sale, (ii)
all rights of self-help (to the extent not prohibited by Applicable Law)
including peaceful occupation of property and collection of rents, set-off, and
peaceful possession of property, (iii) obtaining provisional or ancillary
remedies including injunctive relief, sequestration, garnishment, attachment,
appointment of receiver and in filing an involuntary bankruptcy proceeding, and
(iv) when applicable, a judgment by confession of
judgment.  Preservation of these remedies does not limit the power of
an arbitrator to grant similar remedies that may be requested by a party in a
dispute.

       

      (b) 
Each Guarantor hereby agrees that it shall not have a remedy of punitive or
exemplary damages against any other party to a Loan Document and each Guarantor
hereby waives any right or claim to punitive or exemplary damages that it may
now have or may arise in the future in connection with any dispute, whether such
dispute is resolved through arbitration or judicially.

       

      (c) 
Each Guarantor hereby waives the right to interpose any counterclaims (other
than compulsory counterclaims) in any action brought by the Lender hereunder or
in respect of any other Loan Document, provided that this waiver shall not
preclude the Guarantor from pursuing any such claims by means of separate
proceedings.

       

      SECTION
4.7 Waiver of Jury
Trial.  TO THE
EXTENT PERMITTED BY APPLICABLE LAW, THE LENDER AND EACH GUARANTOR HEREBY
IRREVOCABLY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL WITH RESPECT TO ANY
ACTION, CLAIM OR OTHER PROCEEDING ARISING OUT OF ANY DISPUTE IN CONNECTION WITH
THIS GUARANTY, THE NOTES OR THE OTHER LOAN DOCUMENTS, ANY RIGHTS OR OBLIGATIONS
HEREUNDER OR THEREUNDER, OR THE PERFORMANCE OF SUCH RIGHTS AND
OBLIGATIONS.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      SECTION
4.8 No Waiver by
Course of Conduct, Cumulative Remedies.  The Lender shall not
by any act (except by a written instrument pursuant to Section 4.1),
delay, indulgence, omission or otherwise be deemed to have waived any right or
remedy hereunder or to have acquiesced in any Default or Event of
Default.  No failure to exercise, nor any delay in exercising on the
part of the Lender, any right, power or privilege hereunder shall operate as a
waiver thereof.  No single or partial exercise of any right, power or
privilege hereunder shall preclude any other or further exercise thereof or the
exercise of any other right, power or privilege.  A waiver by the
Lender of any right or remedy hereunder on any one occasion shall not be
construed as a bar to any right or remedy which the Lender would otherwise have
on any future occasion.  The rights and remedies herein provided are
cumulative, may be exercised singly or concurrently, and are not exclusive of
any other rights or remedies provided by law.

       

      SECTION
4.9 Successors and
Assigns.  This Guaranty shall be binding upon and shall inure
to the benefit of each Guarantor (and shall bind all Persons who become bound as
a Guarantor under this Guaranty), the Lender and their successors and assigns;
provided that
no Guarantor may assign, transfer or delegate any of its rights or obligations
under this Guaranty without the prior written consent of all holders of
Obligations.

       

      SECTION
4.10 Severability.  If
any provision hereof is held by a court of competent jurisdiction to be invalid
or unenforceable in any jurisdiction, then, to the fullest extent permitted by
law, (a) the other provisions hereof shall remain in full force and effect in
such jurisdiction and shall be liberally construed in favor of the Lender in
order to carry out the intentions of the parties hereto as nearly as may be
possible; and (b) the invalidity or unenforceability of any provisions hereof in
any jurisdiction shall not affect the validity or enforceability of such
provision in any other jurisdiction.

       

      SECTION
4.11 Headings.  The
various headings used in this Guaranty are for convenience of reference only and
shall not affect the meaning or interpretation of this Guaranty or any
provisions hereof.

       

      SECTION
4.12 Counterparts; Fax
Signatures.  This Guaranty may be executed by the parties
hereto in several counterparts, each of which shall be deemed to be an original
and all of which shall constitute together but one and the same
agreement.  This Guaranty may be executed by fax signature, which
shall be fully binding on the subject Guarantor.

       

      SECTION
4.13 Set-Off.  Each
Guarantor hereby irrevocably authorizes the Lender, at any time and from time to
time during the continuance of an Event of Default, without notice to such
Guarantor or any other Guarantor, any such notice being expressly waived by each
Guarantor, to set off and appropriate and apply any and all deposits (general or
special, time or demand, provisional or final), in any currency, and any other
credits, indebtedness or claims, in any currency, in each case whether direct or
indirect, absolute or contingent, matured or unmatured, at any time held or
owing by the Lender (or any agent of the Lender) to or for the credit or the
account of such Guarantor, or any part thereof, in such amounts as the Lender
may elect, against and on account of the obligations and liabilities of such
Guarantor to the Lender hereunder, as the Lender may elect, whether or not the
Lender has made any demand for payment and although such obligations,
liabilities and claims may be contingent or unmatured.  The Lender
shall notify such Guarantor promptly of any such set-off and the application
made by the Lender of the proceeds thereof; provided that the
failure to give such notice shall not affect the validity of such set-off and
application.  The rights of the Lender under this Section 4.13 are in
addition to other rights and remedies (including, without limitation, other
rights of set-off) which the Lender may have.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      SECTION
4.14  Integration.  This
Guaranty and the other Loan Documents represent the agreement of the Guarantors
and the Lender with respect to the subject matter hereof and thereof, and there
are no promises, undertakings, representations or warranties by the Lender
relative to subject matter hereof and thereof not expressly set forth or
referred to herein or in the other Loan Documents.

       

      SECTION
4.15  Acknowledgements.  Each
Guarantor hereby acknowledges that:

       

      (a) 
it has been advised by counsel in the negotiation, execution and delivery of
this Guaranty and the other Loan Documents to which it is a party;

       

      (b) 
the Lender as such has no fiduciary relationship with or duty to any Guarantor
arising out of or in connection with this Guaranty or any of the other Loan
Documents, and the relationship between the Guarantors, on the one hand, and the
Lender as such, on the other hand, in connection herewith or therewith is solely
that of debtor and creditor; and

       

      (c) 
no joint venture is created hereby or by the other Loan Documents or otherwise
exists by virtue of the transactions contemplated hereby among the Lender or
among the Guarantors and the Lender.

       

      SECTION
4.16  Releases.  At
such time as the Guaranteed Obligations shall have been indefeasibly paid in
full and the Revolving Credit Commitment has been terminated, this Guaranty and
all obligations (other than those expressly stated to survive such termination)
of the Guarantors hereunder shall terminate, all without delivery of any
instrument or performance of any act by any party.

       

      SECTION
4.17 Additional
Guarantors.  Each direct or indirect Subsidiary of the Borrower
that is required to become a party to this Guaranty pursuant to Section 5.11 of
the Loan Agreement shall become a Guarantor for all purposes of this Guaranty
upon execution and delivery by such Subsidiary of a supplement in form and
substance satisfactory to the Lender.

       

      SECTION
4.18 California
Specific Provisions.  Each Guarantor absolutely,
unconditionally, knowingly, and expressly waives any defense arising by reason
of or deriving from any claim or defense based upon an election of remedies by
the Lender, including any defense based upon an election of remedies by the
Lender under the provisions of the California Code of Civil Procedure Sections
580a, 580b, 580d, and 726 or any similar law of California or any other
jurisdiction.  Pursuant to California Civil Code Section
2856:

       

      Each
Guarantor waives all rights and defenses arising out of an election of remedies
by the Lender, even though that election of remedies, such as a non-judicial
foreclosure with respect to security for a guaranteed obligation, has destroyed
such Guarantor’s rights of subrogation and reimbursement by the operation of
California Code of Civil Procedure Section 580(d) or otherwise.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      Each
Guarantor waives all rights and defenses that such Guarantor may have because
the Guaranteed Obligations are secured by real property.  This means,
among other things, that:

       

      (1) 
The Lender may collect from the Guarantors without first foreclosing on any real
or personal property collateral pledged by or on behalf of the Borrower or any
Guarantor; and

       

      (2) 
If the Lender forecloses on any real property collateral pledged by or on behalf
of the Borrower or any Guarantor: (a) the amount of the Guaranteed Obligations
may be reduced only by the price for which that collateral is sold at the
foreclosure sale, even if the collateral is worth more than the sale price; and
(b) the Lender may collect from the Guarantors even if the Lender, by
foreclosing on the real property collateral, has destroyed any right the
Guarantors may have to collect from the Borrower or another
Guarantor.

       

      This is
an unconditional and irrevocable waiver of any rights and defenses the
Guarantors may have because the Guaranteed Obligations are secured by real
property.  These rights and defenses include, but are not limited to,
any rights or defenses based upon California Code of Civil Procedure Sections
580a, 580b, 580d, or 726.

       

      If any of
the Guaranteed Obligations are at any time secured by a mortgage or deed of
trust upon real property, the Lender may elect, in its sole discretion, upon a
default with respect to the Guaranteed Obligations, to foreclose such mortgage
or deed of trust judicially or non-judicially in any manner permitted by law,
before or after enforcing the Deed of Trust, the Notes or the other Loan
Documents, without diminishing or affecting the liability of the Guarantors
hereunder except to the extent that the Guaranteed Obligations are repaid with
the proceeds of such foreclosure.  Each Guarantor understands that (a)
by virtue of the operation of California’s antideficiency law applicable to
non-judicial foreclosures, an election by the Lender non-judicially to foreclose
such a mortgage or deed of trust probably would have the effect of impairing or
destroying rights of subrogation, reimbursement, contribution, or indemnity of
the Guarantors, and (b) absent the waiver given by the Guarantors, such an
election would prevent the Lender from enforcing the Deed of Trust, the Notes or
the other Loan Documents against the Guarantors.  Understanding the
foregoing, and understanding that each Guarantor is hereby relinquishing a
defense to the enforceability of the Deed of Trust, the Notes or the other Loan
Documents, each Guarantor hereby WAIVES any right to assert against the Lender
any defense to the enforcement of the Deed of Trust, the Notes or the other Loan
Documents, whether denominated “estoppel” or otherwise, based on or arising from
an election by the Lender non-judicially to foreclose any such mortgage or deed
of trust.  Each Guarantor understands that the effect of the foregoing
waiver may be that such Guarantor may have liability hereunder for amounts with
respect to which the Guarantors may be left without rights of subrogation,
reimbursement, contribution, or indemnity.  Each Guarantor also agrees
that the “fair market value” provisions of California Code of Civil Procedure
Section 580a shall have no applicability with respect to the determination of
such Guarantor’s liability under the Deed of Trust, the Notes or the other Loan
Documents.

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      Each
Guarantor hereby absolutely, unconditionally, knowingly, and expressly waives:
(i) any right of subrogation such Guarantor has or may have as against the
Borrower and the other Guarantors with respect to the Guaranteed Obligations;
(ii) any right to proceed against the Borrower and the Guarantors or any other
person or entity, now or hereafter, for contribution, indemnity, reimbursement,
or any other suretyship rights and claims, whether direct or indirect,
liquidated or contingent, whether arising under express or implied contract or
by operation of law, which the Guarantors may now or hereafter have as against
the Borrower and the Guarantors with respect to the Guaranteed Obligations; and
(iii) any right to proceed or seek recourse against or with respect to any
property or asset of the Borrower and the Guarantors.

       

      WITHOUT
LIMITING THE GENERALITY OF ANY OTHER WAIVER OR OTHER PROVISION SET FORTH IN THIS
AGREEMENT, EACH GUARANTOR HEREBY ABSOLUTELY, KNOWINGLY, UNCONDITIONALLY, AND
EXPRESSLY WAIVES, ANY AND ALL BENEFITS OR DEFENSES ARISING DIRECTLY OR
INDIRECTLY UNDER ANY ONE OR MORE OF CALIFORNIA CIVIL CODE SECTIONS 2799, 2808,
2809, 2810, 2814, 2815, 2819, 2820, 2821, 2822, 2825, 2839, 2845, 2848, 2849,
AND 2850, CALIFORNIA CODE OF CIVIL PROCEDURE SECTIONS 580a, 580b, 580c, 580d,
AND 726, AND CHAPTER 2 OF TITLE 14 OF PART 4 OF DIVISION 3 OF THE CALIFORNIA
CIVIL CODE.

       

      NOTWITHSTANDING
ANY OF THE PROVISIONS CONTAINED IN THIS AGREEMENT RELATING TO OR REFERENCING ANY
OF THE CALIFORNIA CIVIL CODE AND THE CALIFORNIA CODE OF CIVIL PROCEDURE
PROVISIONS, INCLUDING WITHOUT LIMITATION, ANY OF THE WAIVERS BY THE GUARANTORS
OF ANY RIGHT, BENEFIT OR DEFENSE UNDER THE CALIFORNIA CIVIL CODE OR THE
CALIFORNIA CODE OF CIVIL PROCEDURE, THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW
YORK WITHOUT REGARD TO CONFLICTS OF LAWS, PRINCIPLES, AND OTHERWISE IN
ACCORDANCE WITH SECTION 4.4 ABOVE.  NOTWITHSTANDING THE
FOREGOING, IN THE EVENT THAT THIS AGREEMENT IS CONSTRUED AND ENFORCED IN
ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF CALIFORNIA (IN OPPOSITION TO
THE INTENTION OF THE LENDER AND THE GUARANTORS AS EXPRESSED IN THE PREVIOUS
SENTENCE), THEN ALL SUCH PROVISIONS AND WAIVERS SHALL BE GIVEN FULL FORCE AND
EFFECT AS SET FORTH HEREIN.

       

      [Signature
Page Follows]

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      IN
WITNESS WHEREOF, each of the Guarantors has executed and delivered this Guaranty
by its duly authorized officer, all as of the date first set forth
above.

       

      
        
          
            	 	 	 	GENERAL
      ENVIRONMENTAL MANAGEMENT, INC., a Delaware corporation	 
	 	 	 	 	 
	
                     

                  	 	
                    By:  
      

                  	
                     

                  	 
	
                     

                  	 	 	
                    Timothy
      J. Koziol

                    Chief Executive Officer

                  	 

          

           

          
            
              
                
                  	 	 	 	GENERAL
      ENVIRONMENTAL MANAGEMENT OF RANCHO CORDOVA LLC	 
	 	 	 	 	 
	
                           

                        	 	
                          By:  
      

                        	
                           

                        	 
	
                           

                        	 	 	
                          
                            Timothy
      J. Koziol

                            Manager

                          

                        	 

                

              

            

          

           

          
            
              
                
                  
                    
                      	 	 	 	GEM
      MOBILE TREATMENT SERVICES, INC.	 
	 	 	 	 	 
	
                               

                            	 	
                              By:  
      

                            	
                               

                            	 
	
                               

                            	 	 	
                              
                                Timothy
      J. Koziol

                                Chief Executive Officer

                              

                            	 

                    

                  

                   

                  
                    
                      	 	 	 	GEM
      6 ACQUISITIONS CORPORATION	 
	 	 	 	 	 
	
                               

                            	 	
                              By:  
      

                            	
                               

                            	 
	
                               

                            	 	 	
                              
                                Timothy
      J. Koziol

                                President

                              

                            	 

                    

                  

                

              

            

          

           

           

          16ex_10-29.htm

    
      

      

    

    EXHIBIT
10.29

     

    
      

      

      

      

      

      

      

      

      

      STOCK
PURCHASE

      AGREEMENT

      

      

      

      ISLAND
ENVIRONMENTAL SERVICES, INC.

      

      

      

      

      

      

      

      

      

      

      

      
 

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      LIST
OF EXHIBITS AND SCHEDULES

       

      
        
          EXHIBITS

        

        

        
          	
                  Exhibit
      A:

                	
                  Promissory
      Note in favor of SELLERS in the Amount of
  $1,062,500

                

        

        

        
          	
                  Exhibit
      A-1

                	
                  Promissory
      Note in favor of NCT in the Amount of
$187,500

                

        

        

        
          	
                  Exhibit
      B:

                	
                  Corporate
      Guarantee of GEM Nevada for $1,062,500
Note

                

        

        

        
          	
                  Exhibit
      B-1

                	
                  Corporate
      Guarantee of GEM Nevada for $187,500
Note

                

        

        

        
          	
                  Exhibit
      C:

                	
                  Form
      of Contingent Promissory Notes

                

        

        

        
          	
                  Exhibit
      D:

                	
                  Form
      of Corporate Guarantee of GEM Nevada for Contingent
  Notes

                

        

        

        
          	
                  Exhibit
      E:

                	
                  Employment
      Agreement

                

        

        

        
          	
                  Exhibit
      F:

                	
                  Agreement
      Not to Compete

                

        

        

        
          	
                  Exhibit
      G:

                	
                  Premises
      Lease

                

        

         

        SCHEDULES*

         

        
          	
                  Schedule
      3:

                	
                  EBITDA
      Calculation Methodology

                

        

         

        
          	
                  Schedule
      3-A

                	
                  Examples
      of Calculation of Accelerated Note Payments and Contingent
      Earn-Out

                

        

         

        
          	
                  Schedule
      16(g):

                	
                  List
      of Policies of Liability and Other Forms of Insurance Held by
      ISLAND

                

        

         

        
          	
                  Schedule
      16(h):

                	
                  Material
      Contracts

                

        

         

        
          	
                  Schedule
      16(i)

                	
                  List
      of Pending Actions

                

        

         

        
          	
                  Schedule
      15(l)

                	
                  Leased
      Assets

                

        

         

        
          	
                  Schedule
      16(q)

                	
                  Certain
      Financial Information

                

        

         

        
          	
                  Schedule
      16(r):

                	
                  Financial
      Statements

                

        

         

        
          	
                  Schedule
      16(y):

                	
                  List
      of Permits, Licenses, Franchises, and Other Authorizations Held by Island
      Environmental Services, Inc.

                

        

        _____________________

      

      
        
          * Note the
schedules correspond to Section numbers in the Stock Purchase
Agreement.

           

          
            
              
              

            

            
              2

              
                

              

            

            
              
              

            

          

        

         

        
          STOCK
PURCHASE AGREEMENT

          

          THIS
STOCK PURCHASE AGREEMENT (this “Agreement”) is made and entered into effective
as of August 31, 2008, by and among ISLAND ENVIRONMENTAL SERVICES, INC., a
California corporation (“ISLAND”), RANDY COSTALES (“RANDY”), GLORIA D. COSTALES
(“DODIE”), each in their individual capacities, (RANDY and DODIE are sometimes
collectively referred to herein as “SELLERS”), NCF CORPORATION, a Florida
not-for-profit corporation, not individually but solely in its capacity as
Trustee of NCF CHARITABLE TRUST, a Florida wholly charitable trust and tax
exempt organization classified as a public charity (“NCT”) and GENERAL
ENVIRONMENTAL MANAGEMENT, INC. a Delaware corporation (“GEM” or
“BUYER”).

          

          Introduction

          

          RANDY,
DODIE and NCT collectively own Ten Thousand (10,000) shares (the “Shares”) of
the common stock of ISLAND, which Shares represent all of ISLAND’s issued and
outstanding stock.  GEM desires to acquire all of the Shares on the
terms and conditions set forth herein.   ISLAND owns and operates
a waste removal business at leased premises located at 2490 W. Pomona Blvd.,
Pomona, CA  91768 (the “Premises”).

          

          Terms

          

          NOW,
THEREFORE, in consideration of the covenants and conditions contained herein,
the parties hereto agree as follows:

           

          
            	
                    1.

                  	
                    Purchase of
      the
      Shares

                  

          

           

          At the
Closing, as defined in Section 9 herein, SELLERS and NCT shall deliver to
BUYER their respective stock certificates issued by ISLAND collectively
representing all of the Shares. SELLERS and NCT shall have duly executed either
the Stock Power of Assignment on the back of said certificates or an Assignment
Separate from Certificate in a form acceptable to BUYER for the purposes of
causing the Shares to be transferred to BUYER.

           

          
            	
                    2.

                  	
                    Purchase
      Price and
      Purchase Price Adjustment. 

                  

          

           

          In
consideration for the sale and delivery of the Shares, BUYER hereby agrees to
pay a total purchase price of $3,500,000.00 (the "Purchase Price") to SELLERS
and NCT, payable as follows:

          

          
            	
                     
      

                  	
                    (a)

                  	
                    BUYER
      shall pay SELLERS the sum of $1,912,500.00 at Closing by check or wire
      transfer of readily available
funds.

                  

          

          

          
            	
                     
      

                  	
                    (b)

                  	
                    BUYER
      shall pay NCT the sum of $337,500.00 at Closing by check or wire transfer
      of readily available funds.

                  

          

           

          
            
              
              

            

            
              3

              
                

              

            

            
              
              

            

          

           

          
            	
                     
      

                  	
                    (c)

                  	
                    The
      balance of the Purchase Price shall be paid pursuant to the terms of two
      (2) Promissory Notes of BUYER (each, a “Note” and collectively, the
      “Notes”) the first of which shall be payable to SELLERS in the amount of
      $1,062,500.00 and the second of which shall be payable to NCT in the
      amount of $187,500.00.  The Notes shall bear interest at eight
      percent (8%) with interest only payments payable quarterly and the entire
      balance of interest and principal shall be all due and payable thirty six
      (36) months after the Closing.  The Notes shall have a Due on
      Sale clause relative to any sale of all or substantially all of the assets
      or stock of BUYER or BUYER’s parent, GENERAL ENVIRONMENTAL MANAGEMENT,
      INC., a Nevada corporation (“GEM NEVADA”), or BUYER’s sale of ISLAND stock
      to an entity in which BUYER or its affiliates do not have a controlling
      interest.  The Notes shall provide that there shall be a partial
      principal payment at the end of the Contingent Period (as defined in
      Section 3 below) of up to (i) $637,500 with respect to the Note in favor
      of the SELLERS and (ii) $112,500 with respect to the Note in favor of
      NCT.  The Notes shall be guaranteed by GEM
      NEVADA.  The Note in favor of SELLERS shall be in the form of
      Exhibit A attached hereto and GEM NEVADA’s Guarantee of such Note shall be
      in the form of Exhibit B attached hereto.  The Note in favor of
      NCT shall be in the form of Exhibit A-1 attached hereto and GEM NEVADA’s
      Guarantee of such Note shall be in the form of Exhibit B-1 attached
      hereto.

                  

          

          

          
            	
                    3.

                  	
                    Accelerated Note
      Payment and Contingent
Earn-Out

                  

          

           

          As
additional consideration for the sale and delivery of the Shares (i) SELLERS shall be entitled
to an accelerated payment of up to $637,500 of the balance owing under the
$1,062,500 Note, (ii) NCT shall be entitled to an accelerated payment of up to
$112,500 of the balance owing under the $187,500 Note (each of the accelerated
payments described in the forgoing clauses (i) and (ii), an “Accelerated Note
Payment” and together, the “Accelerated Note Payments”) and (iii) SELLERS and
NCT shall be entitled to a contingent earn-out payment (the “Contingent
Earn-Out”) of up to an aggregate amount of $3,750,000 as set forth in this
Section 3.  The Accelerated Note Payments and the Contingent Earn-Out
shall be payable to SELLERS and NCT upon the recapture by ISLAND of EBITDA (as
defined below) in excess of $1,100,000 during the twelve (12) month period
following the Closing (the “Contingent Period”).  The amount of the
Contingent Earn-Out payable to SELLERS and NCT (if any) shall be calculated by
multiplying the EBITDA Recapture Percentage (as defined below) by $3,750,000 (it
being understood that in no event shall the EBITDA Recapture Percentage exceed
100%) and the amount of the Accelerated Note Payments payable to SELLERS and NCT
(if any) shall be calculated as follows:

           

          
            
              
              

            

            
              4

              
                

              

            

            
              
              

            

          

           

          
            	
                     
      

                  	
                    (a)

                  	
                    If
      the amount of the Contingent Earn-Out is zero then (i) the amount of the
      Accelerated Note Payment payable to SELLERS shall be $637,500 and (ii) the
      amount of the Accelerated Note Payment payable to NCT shall be
      $112,500.

                  

          

          

          
            	
                     
      

                  	
                    (b)

                  	
                    If
      the amount of the Contingent Earn-Out is between zero and $3,750,000 then
      (i) the amount of the Accelerated Note Payment payable to SELLERS shall be
      equal to eight-five percent (85%) of the aggregate Accelerated Amount (as
      defined below) and (ii) the amount of the Accelerated Note Payment payable
      to NCT shall be equal to fifteen percent (15%) of the aggregate
      Accelerated Amount.

                  

          

          

          
            	
                     
      

                  	
                    (c)

                  	
                    If
      the Contingent Earn-Out is $3,750,000 then the amount of the Accelerated
      Note Payments shall be zero.

                  

          

          

          For
purposes of this Agreement, (A) the term “EBITDA” shall mean the dollar figure
calculated pursuant to the accounting methods, principals and assumptions
described in Schedule 3 to this Agreement (B) the term “EBITDA Recapture
Percentage” shall mean the quotient (expressed as a percent) calculated by
dividing (1) the result obtained by subtracting $1,100,000 from ISLAND’s EBITDA
for the Contingent Period by (2) $1,400,000 and (C) the term “Accelerated
Amount” shall mean the dollar amount calculated by (1) subtracting the EBITDA
Recapture Percentage from one hundred percent (100%) and (2) multiplying such
resulting percentage by $750,000.  Several examples of the calculation
of the Accelerated Note Payments and the Contingent Earn-Out are set forth in
Schedule 3-A attached to this Agreement.

          

          It is
understood and agreed that the recapture by ISLAND of EBITDA for purposes of the
Contingent Earn-Out will be calculated by utilizing existing ISLAND customer
accounts and lines of business.  To further ensure an accurate and
fair determination of the Contingent Earn-Out (if any) payable to SELLERS, BUYER
covenants that during the Contingent Period it will operate ISLAND and its
business substantially as conducted by SELLERS prior to the Closing and will not
transfer any ISLAND customer accounts, assets, lines of business or other
material aspects of such business to any of its affiliates or use any of its
affiliates to perform services for any existing ISLAND customer which services
could otherwise have been performed by ISLAND under one or more of the lines of
business engaged in by ISLAND immediately prior to the Closing; provided,
however that the foregoing shall not prevent BUYER from permitting any of its
affiliates from using any ISLAND assets to provide services such affiliates’
customers where such assets are not otherwise being used by ISLAND.

           

          
            
              
              

            

            
              5

              
                

              

            

            
              
              

            

          

          

          No later
than ninety (90) days following the end of the Contingent Period, BUYER shall
deliver to SELLERS and NCT, in writing, BUYER’s calculation (based on the
procedures described in Schedule 3 hereto) of the amount (if any) of the
Accelerated Note Payments and the Contingent Earn-Out payable to SELLERS and
NCT.  SELLERS (individually and on behalf of NCT) shall have the right
to review BUYER’s calculation, and the books and records of BUYER and its
affiliates related thereto, for a period of ninety (90) days following the
receipt of such calculation to verify and confirm the accuracy
thereof.  If after such review SELLERS agree with BUYER’s calculation,
SELLERS shall promptly notify BUYER and NCT of such agreement and the
Accelerated Note Payments and the Contingent Earn-Out shall be paid as set forth
below in accordance with such calculation.  If after such review
SELLERS disagree with BUYER’s calculation, SELLERS shall promptly provide BUYER
and NCT with a statement indicating the basis for such disagreement and SELLERS
and BUYER shall meet and confer in an effort to resolve such disagreement in
good faith.

          

          In the
event BUYER and SELLERS are unable to resolve a disagreement with respect to the
Accelerated Note Payments and the Contingent Earn-Out within thirty (30) days
following the date of SELLERS’ objection, the amount of the Accelerated Note
Payments and the Contingent Earn-Out shall be determined an independent firm of
certified public accountants as is mutually agreeable to SELLERS and BUYER (the
“Contingent Earn-Out Referee”).  If issues in dispute are submitted to
the Contingent Earn-Out Referee for resolution, (i) each party shall furnish to
the Contingent Earn-Out Referee such work papers and other documents and
information relating to the disputed issues as the Contingent Earn-Out Referee
may request and are available to that party, and shall be afforded the
opportunity to present to the Contingent Earn-Out Referee any material relating
to the determination and to discuss the determination with the Contingent
Earn-Out Referee; (ii) the determination by the Contingent Earn-Out Referee of
amount of the Accelerated Note Payments and the Contingent Earn-Out, as set
forth in a notice delivered to both parties by the Contingent Earn-Out Referee,
will be binding and conclusive on the parties; and (iii) the fees and expenses
of the Contingent Earn-Out Referee for such determination shall be paid by the
parties based upon the degree to which the Contingent Earn-Out Referee accepts
the respective positions of the parties.  For example, if SELLERS
contend that the adjustment owed is $300, BUYER contends that the adjustment
owed is $100 and the Contingent Earn-Out Referee determines that the adjustment
owed is $150, then SELLERS shall pay 75% (300-150 / 300-100) of the Contingent
Earn-Out Referee’s fees and expenses and BUYER shall pay 25% (150-100 / 300-100)
of the Contingent Earn-Out Referee’s fees and expenses.  Other than
the expense of retaining the Contingent Earn-Out Referee, each party shall bear
its own expenses in, as applicable, preparing and reviewing the calculation of
the amount of the Accelerated Note Payment and the Contingent
Earn-Out.

           

          
            
              
              

            

            
              6

              
                

              

            

            
              
              

            

          

          

          The
parties acknowledge and agree that, other than its right to receive any
Accelerated Note Payment or any portion of the Contingent Earn-Out as determined
in accordance with this Section 3, NCT shall have no rights or responsibilities
with respect to, and shall have no role in connection with, the determination of
the amount of any such Accelerated Note Payment or Contingent Earn-Out and that
SELLERS shall for all purposes represent NCT’s interests in such
determination.  Any agreement or consent by SELLERS as to the final
amount of any Accelerated Note Payment or Contingent Earn-Out shall be final and
binding upon NCT and NCT shall have no responsibility for (and SELLERS shall
indemnify NCT from and against) any fees and expenses of the Contingent Earn-Out
Referee for which SELLERS may be deemed responsible pursuant to the preceding
paragraph.

          

          Upon the
final determination of the amount of the Accelerated Note Payments and the
Contingent Earn-Out, BUYER shall make the following payments to SELLERS and
NCT:

          

          
            	
                     
      

                  	
                    (x)

                  	
                    BUYER
      shall pay the Accelerated Note Payments to SELLERS and NCT by certified
      funds check or wire transfer of immediately available funds and, following
      SELLERS’ and NCT’s receipt of such payments, the outstanding principal
      amount of the Notes described in Sections 2(b) and 2(c) above shall be
      reduced by the amount of the applicable
payment;

                  

          

          

          
            	
                     
      

                  	
                    (y)

                  	
                    BUYER
      shall pay the Contingent Earn-Out to SELLERS and NCT as
      follows:

                  

          

          

          
            	
                     
      

                  	
                    (i)

                  	
                    A
      cash payment (to be paid by certified funds check or wire transfer of
      immediately available funds) in an aggregate amount equal to the result
      obtained by subtracting (A) the aggregate amount of the Accelerated Note
      Payments payable to SELLERS and NCT under clause (x) above from (B)
      $750,000.  The amount of any cash payment payable pursuant to
      this Section 3(y)(i) shall be paid eighty-five percent (85%) to SELLERS
      and fifteen percent (15%) to NCT.

                  

          

          

          
            	
                     
      

                  	
                    (ii)

                  	
                    The
      remainder pursuant to the terms of a promissory note issued by BUYER to
      each of SELLERS and NCT (the each, a “Contingent Note” and, together, the
      “Contingent Notes”) in substantially the form attached hereto as
      Exhibit C.  The aggregate amount payable to SELLERS and NCT
      pursuant to the Contingent Notes shall be paid eighty-five percent (85%)
      to SELLERS and fifteen percent (15%) to NCT.  The Contingent
      Notes (if any) shall include the following
  terms:

                  

          

          

          
            	
                     
      

                  	
                    (A)

                  	
                    Each
      Contingent Note shall bear interest at eight percent (8%) per year with
      interest only payments payable
quarterly;

                  

          

           

          
            
              
              

            

            
              7

              
                

              

            

            
              
              

            

          

           

          
            	
                     
      

                  	
                    (B)

                  	
                    The
      entire balance of principal and interest under each Contingent Note shall
      all be due and payable thirty six (36) months after the end of the
      Contingent Period.

                  

          

          

          
            	
                     
      

                  	
                    (C)

                  	
                    The
      Contingent Notes shall each have a Due on Sale clause relative to any sale
      of all or substantially all of the assets or stock of GEM NEVADA or BUYER
      or the sale of ISLAND stock to an entity in which BUYER or its affiliates
      do not possess a controlling
interest.

                  

          

          

          
            	
                     
      

                  	
                    (D)

                  	
                    The
      Contingent Notes shall each be guaranteed by GEM NEVADA and each such
      Guarantee shall be in the form of Exhibit D attached
    hereto.

                  

          

           

          
            	
                    4.

                  	
                    Cash/Vehicles to
      SELLERS

                  

          

           

          Notwithstanding
any other provision of this Agreement, at or prior to the Closing, SELLERS shall
have the right to cause ISLAND to make a distribution to SELLERS of all cash in
ISLAND’s existing cash and broker accounts; provided that SELLERS shall cause
there to be a general ledger book balance of at least one hundred thousand
dollars ($100,000.00) in ISLAND’S general ledger cash accounts as of the Closing
to cover ISLAND’s normal required operating capital needs following the
Closing.  In addition, at or prior to the Closing, SELLERS shall have
the right to cause ISLAND to transfer title and distribute to SELLERS the Lexus
vehicle and the vehicle commonly known as the “old Suburban” used by SELLERS in
the operation of ISLAND’s business.

          

          
            	
                    5.

                  	
                    Liabilities

                  

          

           

          SELLERS
represent and warrant that ISLAND has no liabilities, obligations or commitments
related to its business, assets or properties except (a) liabilities described
in this Agreement or the schedules and exhibits hereto, (b) liabilities
reflected on the balance sheet contained in the Financial Statements (as defined
in Section 16(r) below), (c) liabilities incurred in the ordinary course of
business since the date of the balance sheet described in clause (b) of this
Section 5 and (d) liabilities incurred in connection with the transactions
contemplated by this Agreement.  BUYER acknowledges and agrees that
ISLAND shall continue to be responsible for and BUYER shall cause ISLAND to pay
when due all liabilities described in the foregoing clauses
(a)-(d).

           

          
            	
                    6.

                  	
                    Leased Premises
      

                  

          

           

          SELLERS
and BUYER agree that in connection with the Closing ISLAND shall enter into a
new lease agreement (the “Lease”) with SELLERS or their affiliate with respect
to the Premises.  The Lease shall be in substantially the form
attached as Exhibit G hereto.  ISLAND’s performance under the Lease
shall be guaranteed by BUYER and GEM NEVADA pursuant to the form of Lease
Guarantee attached to the Lease.

           

          
            
              
              

            

            
              8

              
                

              

            

            
              
              

            

          

           

          
            	
                    7.

                  	
                    Closing of Corporate
      Books for Accounting and Tax
Purposes

                  

          

           

          SELLERS
and BUYER agree that ISLAND’s books shall be closed as of the date of Closing
and, pursuant to Section 1.1368-1(g)(2)(i) of the Internal Revenue Code
Regulations, SELLERS and ISLAND shall elect to treat the tax year as if it
consisted of two separate years, the first of which will end on the date of
Closing and the second of which shall commence on the day after the Closing date
and will end on December 31, 2008. SELLERS, jointly and severally (but not NCT),
shall be responsible for all state and federal tax liability incurred prior to
the Closing including taxes incurred as a result of the first short year and
BUYER shall be responsible for the tax incurred as a result of the second short
year. The first short year tax data shall be made according to generally
accepted accounting principles and in the manner previously utilized in
preparing ISLAND’s Federal and California State Income Tax Returns by SELLERS’
Certified Public Accountant, Silva & Silva (“CPA SILVA”).  SELLERS
(and not NCT) shall pay the fees for CPA SILVA in connection with the
preparation of tax data for the first short year (i.e. the portion of the 2008
calendar prior to the Closing date).  The second short year tax data
and the 2008 tax return of ISLAND (which shall include the first short year tax
data exactly as presented by CPA SILVA) shall be the responsibility of BUYER;
provided that SELLERS shall have the right to review and approve ISLAND’s 2008
tax return prior to filing.

          

          From and
after the Closing, BUYER shall not, and shall not permit ISLAND to, take any
action which could increase the SELLERS’ liability for
taxes.  Additionally, neither BUYER nor any of its affiliates shall,
or shall permit ISLAND to, amend, re-file or otherwise modify any tax return
relating in whole or in part to ISLAND with respect to any taxable year or
period beginning before the Closing date without the prior written consent of
SELLERS which consent may not be unreasonably withheld by SELLERS .

           

          
            	
                    8.

                  	
                    Intentionally
      Omitted

                  

          

           

           

          
            	
                    9.

                  	
                    Closing

                  

          

           

          The
Closing of the Purchase and Sale of the Shares (the “Closing”) shall take place
at the offices of Bohm, Matsen, Kegel & Aguilera, LLP, 695 Town Center
Drive, Suite 700, Costa Mesa, California (or at such other place as the parties
may mutually agree) at 10:00 a.m. local time and shall be effective August 31,
2008.  The effective date of the Closing may be postponed to a later
time and date by mutual agreement of the parties.  If the effective
date of the Closing is postponed, all references to the Closing date in this
Agreement shall refer to the postponed date.

          

          
            	
                     
      

                  	
                    (a)

                  	
                    Documents to be
      Delivered by SELLERS and NCT to BUYER at
  Closing.

                  

          

          

          
            	
                     
      

                  	
                    (1)

                  	
                    At
      the Closing, SELLERS will deliver to BUYER the following
      documents:

                  

          

          

          
            
              
              

            

            
              9

              
                

              

            

            
              
              

            

             

          

          
            	
                     
      

                  	
                    (A)

                  	
                    Stock
      Certificates for the Shares held by SELLERS free and clear of all liens
      claims charges, restrictions, equities or encumbrances of any kind which
      Certificates shall be accompanied by duly executed stock powers or
      assignments separate from certificate in form reasonably satisfactory to
      BUYER;

                  

          

          

          
            	
                     
      

                  	
                    (B)

                  	
                    The
      corporate records and documentation described in Section 11 of this
      Agreement;

                  

          

          

          
            	
                     
      

                  	
                    (C)

                  	
                    The
      written resignations of RANDY and DODIE from their positions as officers
      and directors of ISLAND;

                  

          

          

          
            	
                     
      

                  	
                    (D)

                  	
                    The
      Agreement Not to Compete (in the form attached hereto as Exhibit F)
      executed by RANDY and DODIE; and

                  

          

          

          
            	
                     
      

                  	
                    (E)

                  	
                    Such
      other certificates and documents executed by SELLERS as BUYER or their
      counsel may reasonably request.

                  

          

          

          
            	
                     
      

                  	
                    (2)

                  	
                    At
      the Closing, NCT will deliver to BUYER the following
      documents:

                  

          

          

          
            	
                     
      

                  	
                    (A)

                  	
                    Stock
      Certificates for the Shares held by NCT free and clear of all liens claims
      charges, restrictions, equities or encumbrances of any kind arising by,
      under or through NCT, which Certificates shall be accompanied by duly
      executed stock powers or assignments separate from certificate in form
      reasonably satisfactory to BUYER;
and

                  

          

          

          
            	
                     
      

                  	
                    (B)

                  	
                    Such
      other certificates and documents executed by NCT as BUYER or their counsel
      may reasonably request.

                  

          

           

          
            	
                     
      

                  	
                    (b)

                  	
                    Documents and Payments
      to be Delivered by BUYER to SELLERS and
  NCT.

                  

          

           

          
            	
                     
      

                  	
                    (1)

                  	
                    At
      the Closing BUYER will deliver to SELLERS the following documents and
      payments:

                  

          

          

          
            	
                     
      

                  	
                    (A)

                  	
                    The
      $1,912,500.00 cash payment described in Section 2(a) of this Agreement,
      which amount shall be paid by certified funds check or wire transfer of
      immediately available funds;

                  

          

          

          
            	
                     
      

                  	
                    (B)

                  	
                    The
      original of the Note for $1,062,500.00 (in the form attached as Exhibit A)
      properly executed by BUYER;

                  

          

           

          
            
              
              

            

            
              10

              
                

              

            

            
              
              

            

          

           

          
            	
                     
      

                  	
                    (C)

                  	
                    The
      properly executed Corporate Guarantee of GEM NEVADA (in the form attached
      as Exhibit B) with respect to the $1,062,500
  Note;

                  

          

          

          
            	
                     
      

                  	
                    (D)

                  	
                    A
      cash payment in an amount equal to the balance of all accounts payable of
      BUYER to ISLAND as of the Closing Date (less the amount of any accounts
      receivable owing by ISLAND to BUYER as of such date), which amount shall
      be paid by certified funds check or wire transfer of immediately available
      funds;

                  

          

          

          
            	
                     
      

                  	
                    (E)

                  	
                    The
      Employment Agreement between ISLAND and RANDY (in the form attached as
      Exhibit E) properly executed by
ISLAND;

                  

          

          

          
            	
                     
      

                  	
                    (F)

                  	
                    The
      Lease for the Premises (in the form attached has Exhibit G) properly
      executed by ISLAND;

                  

          

          

          
            	
                     
      

                  	
                    (G)

                  	
                    The
      Guarantee of BUYER and GEM NEVADA with respect to the Lease (in the form
      attached to the Lease) properly executed by BUYER and GEM NEVADA;
      and

                  

          

          

          
            	
                     
      

                  	
                    (H)

                  	
                    Such
      other certificates and documents as SELLERS and or their counsel may
      reasonably request.

                  

          

           

          
            	
                     
      

                  	
                    (2)

                  	
                    At
      the Closing BUYER will deliver to NCT the following documents and
      payments:

                  

          

          

          
            	
                     
      

                  	
                    (A)

                  	
                    The
      $337,500.00 cash payment described in Section 2(b) of this Agreement,
      which amount shall be paid by certified funds check or wire transfer of
      immediately available funds;

                  

          

          

          
            	
                     
      

                  	
                    (B)

                  	
                    The
      original of the Note for $187,500.00 (in the form attached as Exhibit A-1)
      properly executed by BUYER;

                  

          

          

          
            	
                     
      

                  	
                    (C)

                  	
                    The
      original of the properly executed Corporate Guarantee of GEM NEVADA (in
      the form attached as Exhibit B-1) with respect to the $187,500 Note;
      and

                  

          

          

          
            	
                     
      

                  	
                    (D)

                  	
                    Such
      other certificates and documents as NCT and or its counsel may reasonably
      request.

                  

          

           

          
            	
                    10.

                  	
                    Due
      Diligence

                  

          

           

          BUYER
shall have until 5:00 p.m., Pacific Daylight Time, on August 31, 2008 (the "Due
Diligence Period"), to approve or disapprove, in its sole and absolute
discretion, all material facts relating to ISLAND which BUYER may discover in
the course its review and investigation of ISLAND, its assets, business and
operations.

           

          
            
              
              

            

            
              11

              
                

              

            

            
              
              

            

          

          

          The Due
Diligence Period shall commence upon the execution of this
Agreement.  BUYER’S failure to disapprove in writing of any
information discovered by BUYER in the course of its due diligence investigation
prior to the expiration of the Due Diligence Period shall be deemed its approval
thereof for purpose of this Agreement.  If BUYER disapproves of any of
said information before the expiration of the Due Diligence Period, then this
Agreement shall terminate.

           

          
            	
                    11.

                  	
                    Records

                  

          

           

          At the
Closing, SELLERS shall turn over all corporate files and records and the
business files and records of ISLAND, including the original Minute Book, Stock
Certificate Book and other relevant corporate documentation, and all Federal and
State Income Tax Returns of ISLAND.  SELLERS shall have the right to
retain copies of such records, files and documents and, from and after the
Closing, SELLERS shall retain the right to have access and inspection rights
with respect to such records and documents for any reasonable purpose including
the defending of any claim with respect to SELLERS' indemnity and any issue
dealing with Federal or California Income Tax.  Such right of access
and inspection shall be upon reasonable notice to ISLAND during reasonable
business hours.

           

          
            	
                    12.

                  	
                    Resignation of
      Officers

                  

          

           

          At the
Closing, SELLERS shall provide ISLAND with the written resignations of RANDY and
DODIE as officers and Directors of ISLAND.

           

          
            	
                    13.

                  	
                    Employment
      Agreement

                  

          

           

          Effective
immediately after the Closing, BUYER will cause ISLAND to enter in to an
Employment Agreement with RANDY in substantially the form of Exhibit E
attached hereto.

           

          
            	
                    14.

                  	
                    Employees and Employee Benefit
      Plans

                  

          

           

          At the
Closing, ISLAND shall retain its current employees in substantially the same
manner as they are currently employed.  Except in the case of the
Island Environmental Services, Inc. Profit Sharing Plan dated January 1, 1999,
as amended (the “Profit Sharing Plan”), following the Closing, BUYER shall cause
ISLAND’s current 401k plan, medical plan, insurance and other employee benefit
plans (collectively, the “ISLAND Plans”) to be integrated into BUYER’S current
substantially similar plans.  As of or as soon as practicable
following the Closing, BUYER shall cause RANDY and DODIE to be removed as
administrators of all ISLAND Plans and BUYER agrees indemnify and hold RANDY and
DODIE harmless from any and all Losses (as defined in Section 19(a) below) they
may incur as a result of the administration or integration of such plans into
BUYER’s plans following the Closing.  With respect to the Profit
Sharing Plan, the parties acknowledge and agree that such plan shall be
terminated effective as of or as soon as practicable following the Closing and
that BUYER shall use its commercially reasonable efforts to permit any ISLAND
employee who so desires to roll such employee’s cash balance in such plan into a
similar tax-deferred plan administered by BUYER (if any).

           

          
            
              
              

            

            
              12

              
                

              

            

            
              
              

            

          

           

          
            	
                    15.

                  	
                    Operation of the
      Business Pending Closing

                  

          

           

          Pending
the Closing, SELLERS shall continue to operate the Business in its normal and
ordinary course and in substantially the same manner as SELLERS are presently
conducting it.

           

          
            	
                    16.

                  	
                    Representations and
      Warranties of SELLERS, ISLAND and
NCT

                  

          

           

          
            	
                     
      

                  	
                    SELLERS
      and ISLAND represent, warrant and agree as set forth in the following
      Sections 16(a)-(ab).  NCT represents, warrants and agrees as set
      forth in the following Sections
16(ac)–(af).

                  

          

          

          
            	
                     
      

                  	
                    (a)

                  	
                    ISLAND
      is a corporation duly organized, validly existing and in good standing
      under the laws of the State of California, and all of the shares of the
      outstanding stock of ISLAND have been duly authorized and validly
      issued.  ISLAND has the corporate power and authority to carry
      on its business and to own or lease its property as and in the places
      where such business is now conducted and such properties are now owned,
      leased or operated and ISLAND is duly qualified to do business and is in
      good standing in California.

                  

          

          

          
            	
                     
      

                  	
                    (b)

                  	
                    The
      authorized capital stock of ISLAND consists of one hundred thousand
      (100,000) shares of common stock, without par value, ten thousand (10,000)
      shares of which have been validly issued and are outstanding as specified
      previously herein.

                  

          

          

          
            	
                     
      

                  	
                    (c)

                  	
                    ISLAND
      does not have any commitments for issuance or sale of shares under
      options, warrants or other rights.  Other than as described in
      Section 5 of this Agreement, at the Closing hereof, ISLAND had no
      undisclosed liabilities, absolute or contingent.  With respect
      to the contracts and agreements described in Section 16(h) below, ISLAND
      is not and will not be subject to any claims resulting from price
      redetermination or from renegotiation with respect to amounts paid prior
      to the date of this Agreement for work completed under any such agreement
      prior to such date.

                  

          

          

          
            	
                     
      

                  	
                    (d)

                  	
                    RANDY
      is the lawful owner of three thousand seven hundred (3,700) of the Shares,
      DODIE is the lawful owner of four thousand eight hundred (4,800) of the
      Shares and NCT is the lawful owner of one thousand five hundred (1,500) of
      the Shares.  Each of RANDY and DODIE (i) has full power and
      authority to transfer all right, title and interest in and to the Shares
      held by them without the consent of any other person and (ii) will
      transfer to BUYER valid title to such Shares, free and clear of all liens,
      equities, encumbrances and claims of every
kind.

                  

          

           

          
            
              
              

            

            
              13

              
                

              

            

            
              
              

            

          

           

          
            	
                     
      

                  	
                    (e)

                  	
                    Neither
      the execution and delivery of this Agreement nor the consummation of the
      transactions contemplated hereby will result in a violation or breach of
      any agreement to which either SELLER is a party or by which the Shares
      held by either SELLER are bound or give rise to any right in any third
      party to terminate or modify any contract by which any of the Shares are
      bound.

                  

          

          

          
            	
                     
      

                  	
                    (f)

                  	
                    Neither
      of the SELLERS is engaged in or a party to, or has reasonable basis to
      anticipate, any legal action or other proceeding before any court or
      administrative agency in connection with his or her Shares or the
      transactions contemplated by this
Agreement.

                  

          

          

          
            	
                     
      

                  	
                    (g)

                  	
                    Attached
      hereto as Schedule 16(g) is a list of the policies of liability and
      other forms of insurance held by ISLAND relative to its business
      operations.  Such policies will be outstanding and duly in force
      at the Closing.  Complete copies of each such policy have been
      or will prior to the Closing be made available to
      BUYER.  SELLERS have no reason to believe that any such policy
      will be cancelled or subject to a material modification prior to the
      scheduled expiration thereof.

                  

          

          

          
            	
                     
      

                  	
                    (h)

                  	
                    Schedule 16(h)
      attached hereto lists all of the contracts and agreements to which ISLAND
      is a party and which fall into the following
  categories:

                  

          

          

          
            	
                     
      

                  	
                    (i)

                  	
                    Contracts
      or agreements involving the performance of services by ISLAND of an amount
      or value in excess of $100,000
annually;

                  

          

          

          
            	
                     
      

                  	
                    (ii)

                  	
                    Contracts
      or agreements involving the payment by ISLAND to any other party of more
      than $25,000 annually, unless terminable by ISLAND on not more than ninety
      (90) days prior written notice;

                  

          

          

          
            	
                     
      

                  	
                    (iii)

                  	
                    Real
      property or equipment lease contracts or
  agreements;

                  

          

          

          
            	
                     
      

                  	
                    (iv)

                  	
                    Contracts
      or agreements with employees of ISLAND (including employment agreements,
      agreements relating to bonus or profit sharing obligations and agreements
      that provide for the payment of bonus or severance upon
      termination);

                  

          

          

          
            	
                     
      

                  	
                    (v)

                  	
                    Contracts
      or agreements under which ISLAND is obligated to make any capital
      expenditure; and

                  

          

          

          
            	
                     
      

                  	
                    (vi)

                  	
                    Contracts
      or agreements relating to any indebtedness of the
  business.

                  

          

           

          
            
              
              

            

            
              14

              
                

              

            

            
              
              

            

          

           

          
            	
                     
      

                  	
                    (i)

                  	
                    Except
      as listed in Schedule 16(i) attached hereto, there are no actions, suits,
      proceedings or investigations pending or, to the knowledge of SELLERS,
      threatened against or affecting ISLAND, at law, or in equity or admiralty,
      or before or by any federal, state, municipal, or other governmental
      department, commission, board, bureau, agency or instrumentality, domestic
      or foreign.  ISLAND is not in default with respect to any order,
      writ, injunction or decree of any court or federal, state, municipal or
      other governmental department, commission, board, bureau, agency or
      instrumentality, domestic or
foreign.

                  

          

          

          
            	
                     
      

                  	
                    (j)

                  	
                    To
      the knowledge of SELLERS, ISLAND has complied in all material respects
      with all laws, regulations and judicial or administrative tribunal orders
      applicable to its business, except where any lack of such compliance has
      not had and is not reasonably likely to result in a material adverse
      change with respect to ISLAND.

                  

          

          

          
            	
                     
      

                  	
                    (k)

                  	
                    All
      federal, state or local tax obligations of any nature whatsoever required
      to be paid by ISLAND on or before the date of this Agreement have been
      duly paid or are being contested in good faith by ISLAND and/or the
      SELLERS.  Any contested obligations have been disclosed to
      BUYER.  Moreover, all federal, state and local tax returns
      required to be filed by ISLAND as of the date of this Agreement have been
      duly filed.

                  

          

          

          
            	
                     
      

                  	
                    (l)

                  	
                    Except
      for the leased assets described in Schedule 16(l), ISLAND has good and
      marketable title to all of the properties and tangible and intangible
      assets used by it in the conduct of its business, in each case free and
      clear of all liens, encumbrances, security interests and
      claims.

                  

          

          

          
            	
                     
      

                  	
                    (m)

                  	
                    ISLAND
      is not liable as guarantor, surety or endorser with respect to the
      obligation of any other person or
persons.

                  

          

          

          
            	
                     
      

                  	
                    (n)

                  	
                    ISLAND
      has no equity investments in any other business entities or
      subsidiaries.

                  

          

          

          
            	
                     
      

                  	
                    (o)

                  	
                    Intentionally
      Omitted.

                  

          

          

          
            	
                     
      

                  	
                    (p)

                  	
                    The
      execution and performance of this Agreement will not conflict with, or
      result in any breach of any of the terms, conditions or provisions of, or
      constitute a default under, or result in the creation of any lien, charge
      or encumbrance upon any of the properties or assets or outstanding stock
      of ISLAND pursuant to any corporate charter, by-law, indenture, mortgage
      or lease, or any other material agreement or instrument to which ISLAND or
      any of its shareholders is a party or by which it is bound.  The
      execution and carrying out of this Agreement will not violate any
      provision of applicable law.

                  

          

          

          
            
              
              

            

            
              15

              
                

              

            

            
              
              

            

             

          

          
            	
                     
      

                  	
                    (q)

                  	
                    To
      the knowledge of SELLERS, the financial information regarding the Company
      listed in Schedule 16(q) (which financial information has been previously
      provided to BUYER) were prepared in good faith and are accurate in all
      material respects as of the date produced by or for
    SELLERS.

                  

          

          

          
            	
                     
      

                  	
                    (r)

                  	
                    SELLERS
      have delivered to BUYER an internally prepared unaudited balance sheet as
      of December 31, 2007, a related unaudited statement of income for the
      calendar year ending December 31, 2007, and an unaudited interim statement
      of income for the six months ending June 30, 2008  (referred to herein
      as the “Financial Statements”).  To the knowledge of SELLERS,
      the Financial Statements are complete in all material respects as of the
      respective dates and for the respective periods above stated, are in
      accordance with the books and records of ISLAND, have been prepared in
      accordance with generally accepted accounting principles consistently
      applied, and fairly present the financial position of ISLAND as of the
      dates thereof and the results of operations for the periods
      indicated.  [Copies of the Financial Statements are attached
      hereto as Schedule 16(r)].

                  

          

          

          
            	
                     
      

                  	
                    (s)

                  	
                    Except
      as required by or disclosed in this Agreement and its exhibits and
      schedules, since June 30, 2008 (the “Balance Sheet Date”) (i) there has
      been no material adverse change in or to the business of ISLAND or to its
      operations, earning, prospects, liabilities or relationships with
      suppliers, distributors or customers, (ii) ISLAND has not entered into or
      performed any material transaction other than in the ordinary course of
      business and consistent with past practices and (iii) ISLAND has not
      cancelled, terminated, amended or granted a waiver of any material
      agreement or of any rights or claims of ISLAND arising
      thereunder.

                  

          

          

          
            	
                     
      

                  	
                    (t)

                  	
                    Intentionally
      Omitted.

                  

          

          

          
            	
                     
      

                  	
                    (u)

                  	
                    SELLERS
      have no knowledge of any fact that is reasonably likely to result in a
      material adverse change with respect to ISLAND or its business,
      operations, assets, or financial
condition.

                  

          

           

          
            
              
              

            

            
              16

              
                

              

            

            
              
              

            

          

           

          
            	
                     
      

                  	
                    (v)

                  	
                    To
      the knowledge of SELLERS, the business of ISLAND as currently conducted
      does not violate in any material respect, and as conducted during the five
      years prior to the date hereof did not violate in any material respect any
      applicable law, ordinance, rule, prohibition or regulation relating,
      respectively, to air quality, water quality, or noise pollution, or the
      production, storage, labeling or disposition of any wastes or of hazardous
      or toxic substances (collectively, “Environmental Laws”), or the health,
      safety or environmental conditions on, beneath, or about any of the
      properties used, owned, or leased by ISLAND.  ISLAND has timely
      filed all required reports, obtained all required data, documentation and
      records under any applicable Environmental Laws.  To the
      knowledge of SELLERS, with respect to the operation of ISLAND’s business
      there has been no unreported release of any Hazardous Material in
      violation of any applicable Environmental Laws or Licenses, including any
      “Hazardous Wastes,” “Hazardous Substances,” “Hazardous Materials,”
      “Pollutants,” “Toxic Substance,” “Solid Wastes” or “Contaminants” (as such
      terms are defined in any applicable Environmental Laws, including but not
      limited to the Comprehensive Environmental Response, Compensation an
      Liability Act of 1980, as amended (“CERCLA”); the Hazardous Materials
      Transportation Act; the Resource Conservation and Recovery Act; and the
      Toxic Substances Control Act; from any storage tanks, surface
      impoundments, septic tanks, pits, sumps or lagoons or any other location
      at the Premises.  Except as set forth above, such inventories
      and wastes, if any, were stored or disposed of in accordance with
      applicable laws and regulations and in a manner such that there was no
      release of any such chemicals into the environment which could cause the
      incurrence of material clean-up or other response costs under CERCLA or
      any other applicable laws or regulations.  ISLAND has not
      received any notice from any governmental agency or private or public
      entity advising it that it is or may be responsible, or potentially
      responsible, for response costs with respect to a release, a threatened
      release or clean-up of materials produced by, or resulting from, any
      business, commercial or industrial activities, operations, or processes,
      including but not limited to Hazardous Wastes, Hazardous Substances,
      Hazardous Materials, Toxic Substances, Solid Wastes, Pollutants or
      Contaminants.  To the knowledge of SELLERS, there is no asbestos
      or asbestos-containing material that requires current abatement or
      encapsulation under Environmental Laws at the
  Premises.

                  

          

           

          
            	
                     
      

                  	
                    (w)

                  	
                    No Environmental
      Remediation.  Neither the execution of this Agreement nor
      the consummation of the transactions contemplated hereby will result in
      the requirement that ISLAND conduct any removal, response, or remediation
      activities pursuant to any applicable Environmental Law or under any
      permit issued to ISLAND.

                  

          

          

          
            	
                     
      

                  	
                    (x)

                  	
                    Environmental
      Reports.  SELLERS have made available to BUYER copies of
      any environmental assessment or audit reports or other similar studies or
      analyses relating to the Premises which reports have been prepared by, or
      on behalf of, or are otherwise in the possession of
    SELLERS.

                  

          

          

          
            	
                     
      

                  	
                    (y)

                  	
                    Permits.  Set
      forth on Schedule 16(y) is a list of all permits, licenses, franchises or
      other authorizations held by ISLAND as of the date of this
      Agreement.  To knowledge of SELLERS, such permits, licenses,
      franchises and other authorizations constitute all such authorizations as
      are necessary for the operation of ISLAND’s business as presently
      conducted.  To knowledge of SELLERS, ISLAND is not in default
      under, or in violation of the terms of, any such
      authorization.  To the knowledge of Sellers, all such permits,
      licenses, franchises and other authorizations will remain in effect after
      the sale of the Shares to BUYER.

                  

          

           

          
            
              
              

            

            
              17

              
                

              

            

            
              
              

            

          

           

          
            	
                     
      

                  	
                    (z)

                  	
                    Labor
      Controversies.  ISLAND is not a party to any collective
      bargaining agreement.  There are not any controversies between
      ISLAND and any of its employees which might reasonably be expected to
      materially adversely affect the conduct of its business, or any unresolved
      labor union grievances or unfair labor practice or labor arbitration
      proceedings pending or, to the knowledge of SELLERS, threatened relating
      to ISLAND’s business and, to the knowledge of SELLERS, there are not any
      organizational efforts presently being made or threatened involving any of
      ISLAND’s employees.  ISLAND has not received notice of any claim
      that it has not complied with any laws relating to the employment of
      labor, including any provisions thereof relating to wages, hours,
      collective bargaining, the payment of social security and similar taxes,
      equal employment opportunity, employment discrimination and employment
      safety, or that ISLAND is liable for any arrears of wages or any taxes or
      penalties for failure to comply with any of the
  foregoing.

                  

          

          

          
            	
                     
      

                  	
                    (aa)

                  	
                    Intellectual
      Property.  The term “Intellectual Property” includes all
      patents and patent applications, trademarks, service marks, trade names,
      trademark, service mark and trade name registrations (and applications
      therefore), copyrights, trade secrets, inventions, know-how and
      formulations (and all licenses for any of the
      foregoing).  ISLAND has no registered copyrights, trademarks, or
      service marks.  To the knowledge of SELLERS, ISLAND’s
      Intellectual Property is sufficient to conduct its business as presently
      conducted and its rights under such Intellectual Property will not be
      altered, limited or impaired by the sale of the Shares under this
      Agreement.  None of the past or present employees, officers,
      directors, shareholders or affiliates of ISLAND has any rights in any such
      Intellectual Property.  ISLAND has not granted any outstanding
      license or other rights to Intellectual Property owned by or licensed to
      it, and is not liable, and has not made any contracts or arrangement
      whereby it may become liable, to any person for any royalty or other
      compensation for the use of any Intellectual Property.  To the
      knowledge of SELLERS, ISLAND’s business, as presently conducted, does not
      infringe any Intellectual Property rights of others, and ISLAND has not
      been charged or threatened to be charged with any such
      infringement.  Specifically, SELLERS acknowledge that the trade
      name “Island Environmental Services” is a valuable asset of ISLAND and
      agree not to use that name or any similar name in an environmental waste
      management related business so long as BUYER operates ISLAND’s business
      under that trade name.

                  

          

          

          
            	
                     
      

                  	
                    (ab)

                  	
                    No Powers of
      Attorney.  ISLAND does not have any powers of attorney or
      comparable delegations of authority
outstanding.

                  

          

           

          
            
              
              

            

            
              18

              
                

              

            

            
              
              

            

             

          

          
            	
                     
      

                  	
                    (ac)

                  	
                    NCT
      is a corporation duly organized, validly existing and in good standing
      under the laws of the State of Florida and is the sole Trustee of NCF
      Charitable Trust (the “TRUST”) on whose behalf NCT holds its
      Shares.  The TRUST is a wholly charitable trust duly organized,
      validly existing and in good standing under the laws of the State of
      Florida.

                  

          

          

          
            	
                     
      

                  	
                    (ad)

                  	
                    Effective
      August 29, 2008, NCT received one thousand five hundred (1,500) of the
      Shares as a gift from RANDY and, to its knowledge, is the lawful owner of
      such Shares as of the date of this Agreement.  NCT (i) has full
      power and authority to transfer all of its right, title and interest in
      and to the Shares held by it without the consent of any other person and
      (ii) will transfer to BUYER all of its title to such Shares, free and
      clear of all liens, equities, encumbrances and claims of every kind
      arising by, under or through NCT.

                  

          

          

          
            	
                     
      

                  	
                    (ae)

                  	
                    Neither
      the execution and delivery of this Agreement nor the consummation of the
      transactions contemplated hereby will result in a violation or breach of
      any agreement to which NCT is a party or, to the knowledge of NCT, by
      which the Shares held by NCT are bound or give rise to any right in any
      third party to terminate or modify any contract by which any of the Shares
      are bound.

                  

          

          

          
            	
                     
      

                  	
                    (af)

                  	
                    NCT
      is not engaged in or a party to, nor does NCT have any reasonable basis to
      anticipate, any legal action or other proceeding before any court or
      administrative agency in connection with the Shares held by it or the
      transactions contemplated by this
Agreement.

                  

          

           

          
            	
                    17.

                  	
                    Interim Covenants and
      Agreements of SELLERS

                  

          

           

          
            	
                     
      

                  	
                    SELLERS
      hereby covenant and agree that from and after the date of execution
      hereof, to and including the Closing, except as otherwise permitted or
      required by this Agreement, SELLERS shall not, without the prior written
      consent of BUYER (which consent shall not be unreasonably withheld), cause
      ISLAND to:

                  

          

          

          
            	
                     
      

                  	
                    (a)

                  	
                    Dispose
      of any of its properties or assets or waive any of its rights except in
      the ordinary course of business;

                  

          

          

          
            	
                     
      

                  	
                    (b)

                  	
                    Fail
      to keep ISLAND's property and assets insured consistent with its prior
      practice.

                  

          

          

          
            	
                     
      

                  	
                    (c)

                  	
                    Suffer
      or incur any liabilities or encumbrances except in the ordinary course of
      business.

                  

          

          

          
            	
                     
      

                  	
                    (d)

                  	
                    Fail
      to keep the business assets of ISLAND in good repair and order (subject to
      ordinary wear and tear).

                  

          

          

          
            	
                     
      

                  	
                    (e)

                  	
                    Amend
      the Articles of Incorporation or Bylaws of
  ISLAND.

                  

          

          

          
            
              
              

            

            
              19

              
                

              

            

            
              
              

            

             

          

          
            	
                     
      

                  	
                    (f)

                  	
                    Change
      the authorized capital of ISLAND or the equity ownership of ISLAND or
      grant any options, warrants, puts, calls, conversion rights or commitments
      relating to the equity interests of
ISLAND.

                  

          

          

          
            	
                     
      

                  	
                    (g)

                  	
                    Declare
      or pay any dividend of ISLAND or indirectly purchase, redeem, or otherwise
      acquire or retire for value or issue any shares of stock of
      ISLAND.

                  

          

          

          
            	
                     
      

                  	
                    (h)

                  	
                    Enter
      into any contract or commitment or incur or agree to incur any liability
      or make any capital expenditures in excess of an aggregate of Fifty
      Thousand Dollars ($50,000.00).

                  

          

          

          
            	
                     
      

                  	
                    (i)

                  	
                    Increase
      the compensation payable or to become payable to any officer, director,
      stockholder, employee, consultant or agent, or make any bonus or
      management fee payable to any such person other than in connection with
      any regularly schedule annual employment and/or salary reviews and in
      amounts consistent with past
practice.

                  

          

          

          
            	
                     
      

                  	
                    (j)

                  	
                    Create,
      assume, or permit to exist any mortgage, pledge or other lien or
      encumbrance upon any assets or properties whether now owned or hereafter
      acquired.

                  

          

          

          
            	
                     
      

                  	
                    (k)

                  	
                    Sell,
      assign, lease or otherwise transfer or dispose of any property or
      equipment other than in the ordinary course of
  business.

                  

          

          

          
            	
                     
      

                  	
                    (l)

                  	
                    Merge
      or consolidate or agree to merge or consolidate with or into any other
      corporation or entity.

                  

          

          

          
            	
                     
      

                  	
                    (m)

                  	
                    Breach
      or permit a breach of, amend or terminate any material agreement, or any
      permit (excluding violations cited by inspection), license or other
      agreement or right to which Company is a
party.

                  

          

          

          
            	
                     
      

                  	
                    (n)

                  	
                    Enter
      into any other transaction outside the ordinary course of its business or
      otherwise prohibited hereunder.

                  

          

          

          
            	
                     
      

                  	
                    (o)

                  	
                    SELLERS
      further agree to use their commercially reasonable efforts to prevent from
      occurring any other action or omission, or series of actions or omissions,
      by ISLAND or by RANDY and DODIE that would cause a warranty of the SELLERS
      contained in this Agreement to be untrue on the Closing
    Date.

                  

          

           

          
            	
                    18.

                  	
                    Representations,
      Warranties and Covenants of BUYER

                  

          

           

          
            	
                     
      

                  	
                    BUYER
      represents and warrants to SELLERS and agrees as
  follows:

                  

          

          

          
            	
                     
      

                  	
                    (a)

                  	
                    BUYER
      is a corporation duly organized, validly existing and in good standing
      under the laws of the State of Delaware and has all corporate right, power
      and authority to enter into and perform this Agreement and any other
      Agreements contemplated by this
Agreement.

                  

          

          

          
            
              
              

            

            
              20

              
                

              

            

            
              
              

            

             

          

          
            	
                     
      

                  	
                    (b)

                  	
                    The
      execution, delivery and performance by BUYER of this Agreement have been
      duly authorized by all necessary corporate action.  This
      Agreement has been duly executed and delivered by BUYER and constitutes a
      valid and binding agreement of BUYER enforceable against BUYER in
      accordance with its terms.

                  

          

          

          
            	
                     
      

                  	
                    (c)

                  	
                    The
      execution, delivery and performance by BUYER of this Agreement and the
      consummation by BUYER of the transactions contemplated hereby require no
      action by or in respect of, or filing with, any governmental authority
      other than any applicable requirements of the Securities and Exchange Act
      of 1934.

                  

          

          

          
            	
                     
      

                  	
                    (d)

                  	
                    The
      execution, delivery and performance by BUYER of this Agreement and the
      consummation of the transactions contemplated hereby do not, and will not,
      (i) contravene or conflict with BUYER’s charter documents, (ii) conflict
      with or result in any breach of any of the terms, conditions or provisions
      of, or constitute a default under or result in the creation of any lien,
      charge or encumbrance upon any of the properties or assets of BUYER, (iii)
      violate any provision of any law, regulation, judgment, injunction, order
      or decree binding upon or applicable to BUYER, GEM NEVADA or any of their
      respective affiliates (iv) constitute a default under (or an event which
      with notice, the lapse of time or both would become a default) under or
      give rise to a right of termination, cancellation or acceleration of any
      right or obligation of BUYER, GEM NEVADA or any of their respective
      affiliates or to a loss of any benefit to which BUYER, GEM NEVADA or any
      of their respective affiliates is entitled to under any provision of any
      agreement, contract or other instrument binding upon BUYER, GEM NEVADA or
      their respective affiliates.

                  

          

          

          
            	
                     
      

                  	
                    (e)

                  	
                    There
      is no action, suit, claim, proceeding or other legal process pending or,
      to the knowledge of BUYER, threatened against or BUYER, GEM NEVADA or any
      of their respective affiliates that could adversely affect or restrict the
      ability of BUYER to fully consummate the transactions contemplated by this
      Agreement or that in any manner draws into question the validity of this
      Agreement.

                  

          

          

          
            	
                     
      

                  	
                    (f)

                  	
                    Prior
      to the Closing, BUYER shall have (or shall have secured firm commitments
      to receive as of the Closing) sufficient funding to pay the portion of the
      Purchase Price payable at Closing in accordance with the terms of this
      Agreement.

                  

          

          

          
            
              
              

            

            
              21

              
                

              

            

            
              
              

            

             

          

          
            	
                     
      

                  	
                    (g)

                  	
                    Investment for Own
      Account.  BUYER represents to SELLERS and NCT that the
      shares to be received by it will be acquired for investment for its own
      account, not as a nominee or agent, and not with a view to the sale or
      distribution of any part thereof, and that BUYER has no present intention
      of selling, granting participation in, or otherwise distributing the same,
      but subject nevertheless to any requirement of law that the disposition of
      property shall at all times be within its control.  By executing
      this Agreement, BUYER further represents that it does not have any
      contract, undertaking, agreement, or arrangement with any person to sell,
      transfer, or grant participation to any such person, or to any third
      person, with respect to any of the
shares.

                  

          

          

          
            	
                     

                  	
                    (h)

                  	
                    Investor
      Experience. BUYER
      represents to SELLERS and NCT that it is experienced in evaluating,
      investing in and acquiring companies such as ISLAND, is able to fend for
      itself in the transactions contemplated by this Agreement, has such
      knowledge and experience in financial and business matters as to be
      capable of evaluating the merits and risks of investment, and has the
      ability to bear the economic risks of the
      investment.

                  

          

          

          
            	
                     
      

                  	
                    (i)

                  	
                    Personal Guarantees of
      SELLERS.  BUYER acknowledges that SELLERS have previously
      executed certain personal guarantees in connection with their ownership of
      ISLAND and the operation its business (collectively, the “Seller Personal
      Guarantees”).  Prior to and following the Closing, SELLERS shall
      have the right to terminate any or all of the Seller Personal Guarantees
      at any time to the extent permitted by the Seller Personal Guarantees.
      BUYER agrees indemnify and hold SELLERS harmless from any and all Losses
      (as defined in Section 19(a) below) they may incur with respect to the
      Seller Personal Guaranties following the Closing.  In addition,
      for any time period following the Closing during which any Seller Personal
      Guarantee is in effect, BUYER shall not (and BUYER shall not permit ISLAND
      to) undertake or accept any further advance on any line of credit or other
      obligation secured by any Seller Personal Guarantee without the prior
      written consent of SELLERS.

                  

          

           

          
            	
                    19.

                  	
                    Indemnification.

                  

          

           

          
            	
                     
      

                  	
                    (a)

                  	
                    By
      SELLERS.  In addition to any indemnification obligations
      on the part of SELLERS set forth elsewhere in this Agreement, SELLERS,
      jointly and severally, agree to indemnify and hold BUYER harmless from any
      and all claims, demands, actions, losses or liabilities including, without
      limitation, reasonable attorneys’ fees and costs (collectively, “Losses”)
      arising out of or resulting from (i) any breach of any representation or
      warranty made by SELLERS herein or (ii) any breach or default in the
      performance by SELLERS of any covenant or agreement of SELLERS contained
      herein.

                  

          

          

          
            
              
              

            

            
              22

              
                

              

            

            
              
              

            

             

          

          
            	
                     
      

                  	
                    (b)

                  	
                    By
      NCT.  NCT hereby agrees to indemnify and hold BUYER
      harmless from any and all Losses arising out of or resulting from (i) any
      breach of any representation or warranty made by NCT herein or (ii) any
      breach or default in the performance by NCT of any covenant or agreement
      of NCT contained herein.

                  

          

          

          
            	
                     
      

                  	
                    (c)

                  	
                    By
      BUYER.  In addition to any indemnification obligations on
      the part of BUYER set forth elsewhere in this Agreement, BUYER hereby
      agrees to indemnify and hold SELLERS and NCT harmless from any and all
      Losses arising out of or resulting from (i) any breach of any
      representation or warranty made by BUYER herein or (ii) any breach or
      default in the performance by BUYER of any covenant or agreement of BUYER
      contained herein.

                  

          

          

          
            	
                     
      

                  	
                    (d)

                  	
                    Separate Obligations
      of SELLERS and NCT.  Notwithstanding any other provision
      of this Agreement, BUYER acknowledges and agrees that (i) NCT received
      title its Shares effective August 29, 2008 pursuant to a charitable gift
      from RANDY, (ii) NCT does not currently, and never has had, any direct or
      indirect role in the operation of ISLAND or its business, (iii) the
      respective representations, warranties and covenants of SELLERS and NCT
      under this Agreement are in all cases being made severally and not jointly
      and any liability for any breach of such representations, warranties and
      covenants shall be several not joint with respect to SELLERS and NCT, (iv)
      in the event of any breach of any representation, warranty or covenant by
      either SELLERS or NCT, BUYER shall look solely to the breaching party for
      indemnification pursuant to this Section 19 and (v) NCT’s liability, if
      any, for Losses under this Agreement shall be limited to, and BUYER
      covenants that it shall not seek recovery from NCT for any amounts in
      excess of, the aggregate cash amount actually paid by BUYER to NCT under
      this Agreement (including amounts paid under the $187,500 Note issued to
      NCT pursuant to Section 2(c) above) in connection with BUYER’s purchase of
      NCT’s Shares.  

                  

          

          

          
            	
                     
      

                  	
                    (e)

                  	
                    Survival of
      Representations, Warranties and Covenants.  The rights of
      the parties to assert a claim under clause (i) of Section 19(a), clause
      (i) of Section 19(b) or clause (i) of Section 19(c) above shall survive
      for a period of twelve (12) months following the Closing and thereafter
      shall terminate and expire; provided that rights with respect to any claim
      asserted in writing prior to the expiration of such twelve (12) month
      period shall continue until such claim has been finally settled, decided
      or adjudicated; and provided further that rights with respect to any claim
      under clause (ii) of Section 19(a), clause (ii) of Section 19(b) or clause
      (ii) of Section 19(c) in connection with a covenant or agreement to be
      performed after the Closing shall survive until such covenant or agreement
      has been fully performed.

                  

          

          

          
            
              
              

            

            
              23

              
                

              

            

            
              
              

            

             

          

          
            	
                     
      

                  	
                    (f)

                  	
                    Limitation on
      Liability.

                  

          

          

          
            	
                     
      

                  	
                    (1)

                  	
                    As Between SELLERS and
      BUYER.  The SELLERS shall not have any obligation to
      indemnify BUYER, nor shall the BUYER have any obligation to indemnify
      SELLERS pursuant to this Section 19 until the aggregate Losses for which
      the indemnified party is entitled to indemnity exceed $35,000 (the
      “Deductible Amount”) whereupon the indemnifying party shall be liable only
      to the extent that such Losses exceed the Deductible Amount.  In
      addition, the maximum liability of the indemnifying party to indemnify the
      indemnified party with respect to any claim for indemnification of Losses
      under this Agreement shall not exceed the Purchase
  Price.

                  

          

          

          
            	
                     
      

                  	
                    (2)

                  	
                    As Between NCT and
      BUYER.  With respect to any claim for indemnity pursuant
      to this Section 19 as between NCT and BUYER, the maximum liability of the
      indemnifying party to indemnify the indemnified party with respect to any
      claim for indemnification of Losses under this Agreement shall not exceed
      the aggregate cash amount actually paid by BUYER to NCT under this
      Agreement (including amounts paid under the $187,500 Note issued to NCT
      pursuant to Section 2(c) above) in connection with BUYER’s purchase of
      NCT’s Shares.

                  

          

          

          
            	
                     
      

                  	
                    (g)

                  	
                    Claims for
      Indemnification.  All claims for indemnification under
      Sections 19(a), 19(b) and 19(c) above shall be handled in accordance with
      the procedures set forth in Schedule 19(g) attached
  hereto.

                  

          

          

          
            	
                     
      

                  	
                    (h)

                  	
                    Computation of
      Losses.  Notwithstanding anything in this Agreement to
      the contrary, the amount of any Losses otherwise payable under Sections
      19(a), (b) or (c) to an indemnified party shall be reduced by the amount
      of net insurance proceeds actually received by such indemnified party
      (giving effect to deductibles or self insured or co-insurance payments
      made) as compensation for the damage or Losses caused by the act,
      omission, fact or circumstance giving rise to the
  Losses.

                  

          

          

          
            	
                     
      

                  	
                    (i)

                  	
                    Exclusive
      Remedy.  From and after the Closing, the rights and
      remedies of the parties under this Section 19 are the sole and exclusive
      rights and remedies of the parties with respect to any dispute arising out
      of this Agreement.  EACH PARTY HEREBY WAIVES RELEASES AND
      DISCHARGES ALL RIGHTS TO ALL PUNITIVE, SPECIAL, EXEMPLARY OR
      CONSEQUENTIAL, DIRECT OR INDIRECT OR OTHER DAMAGES, HOWEVER CHARACTERIZED,
      WHETHER IN CONTRACT OR IN TORT, AT LAW OR IN EQUITY, OTHER THAN THOSE
      EXPRESSY SET FORTH UNDER THIS SECTION
19.

                  

          

           

          
            
              
              

            

            
              24

              
                

              

            

            
              
              

            

             

          

          
            	
                    20.

                  	
                    Agreement Not to
      Compete

                  

          

           

          As part
of the consideration herein rendered and as an express condition precedent
thereto, SELLERS, jointly and severally, shall enter into an Agreement Not to
Compete for a duration of five (5) years from the date of the Closing in the
form of Exhibit F attached hereto.  BUYER acknowledges that NCT shall
have no obligation to enter into, and shall not be subject to the terms of, any
such Agreement not to Compete.

          

          
            	
                    21.

                  	
                    Transition

                  

          

           

          Following
the Closing, SELLERS will not take any action that is designed or intended to
have the effect of discouraging any customer or business associate of ISLAND
from maintaining the same business relationships with ISLAND after the Closing
that it maintained with ISLAND before the Closing and SELLERS will refer all
customer inquiries they receive relating to the business to
BUYER.  Further, SELLERS agree that for a period of ninety (90) days
following the Closing, SELLERS will reasonably assist BUYER, at BUYER’s request,
with the orderly transition of the operations of ISLAND from SELLERS to BUYER,
including, without limitation, recommendations, advice and interaction with
customers and potential customers of ISLAND and BUYER, and governmental
agencies.

           

          
            	
                    22.

                  	
                    Conditions to
      Obligations of BUYER

                  

          

           

          The
obligation of BUYER to proceed with the Closing under this Agreement is subject
to the satisfaction, on or prior to the Closing, of each of the following
conditions, each of which may be waived by BUYER:

          

          
            	
                     
      

                  	
                    (a)

                  	
                    All
      the terms, covenants and conditions of this Agreement to be complied with
      and performed by SELLERS and NCT on or before the Closing shall have been
      fully complied with and performed in all material
  respects;

                  

          

          

          
            	
                     
      

                  	
                    (b)

                  	
                    Prior
      to the expiration of the Due Diligence Period, BUYER shall not have
      formally objected in writing to any matters of due diligence set forth in
      Section 10 herein;

                  

          

          

          
            	
                     
      

                  	
                    (c)

                  	
                    The
      representations and warranties of each of SELLERS and NCT contained herein
      shall be correct in all material respects on and at the Closing with the
      same effect as though all such representations and warranties had been
      made on and as of that date;

                  

          

          

          
            	
                     
      

                  	
                    (d)

                  	
                    SELLERS
      shall have delivered to BUYER the documents described in Section 9(a)(1)
      of this Agreement along with such other documents or instruments as in the
      reasonable opinion of BUYER may be necessary or desirable to effectuate
      the transaction provided for in this Agreement;
  and

                  

          

          

          
            	
                     
      

                  	
                    (e)

                  	
                    NCT
      shall have delivered to BUYER the documents described in Section 9(a)(2)
      of this Agreement along with such other documents or instruments as in the
      reasonable opinion of BUYER may be necessary or desirable to effectuate
      the transaction provided for in this
Agreement.

                  

          

           

          
            
              
              

            

            
              25

              
                

              

            

            
              
              

            

          

           

          
            	
                    23.

                  	
                    Conditions to
      Obligations of SELLERS and
      NCT

                  

          

           

          The
obligation of SELLERS and NCT to proceed with the Closing under this Agreement
is subject to the satisfaction, on or prior to the Closing, of each of the
following conditions, each of which may be waived by SELLERS and
NCT:

          

          
            	
                     
      

                  	
                    (a)

                  	
                    All
      the terms, covenants and conditions of this Agreement to be complied with
      and performed by BUYER on or before the Closing Date shall have been fully
      complied with and performed in all material
  respects;

                  

          

          

          
            	
                     
      

                  	
                    (b)

                  	
                    The
      representations and warranties made by BUYER herein shall be correct in
      all material respects, on and at the Closing, with the same force and
      effect as though such representations and warranties had been made at the
      Closing;

                  

          

          

          
            	
                     
      

                  	
                    (c)

                  	
                    BUYER
      shall have delivered to SELLERS the documents and payments described in
      Section 9(b)(1) of this Agreement along with such other documents or
      instruments as in the reasonable opinion of SELLERS may be necessary or
      desirable to effectuate the transaction provided for in this Agreement;
      and

                  

          

          

          
            	
                     
      

                  	
                    (d)

                  	
                    BUYER
      shall have delivered to NCT the documents and payments described in
      Section 9(b)(2) of this Agreement along with such other documents or
      instruments as in the reasonable opinion of NCT may be necessary or
      desirable to effectuate the transaction provided for in this
      Agreement.

                  

          

           

          
            	
                    24.

                  	
                    Termination

                  

          

           

          This
Agreement and the transactions contemplated herein may be terminated at any time
prior to Closing:

          

          
            	
                     
      

                  	
                    (a)

                  	
                    By
      the mutual written consent of SELLER and
BUYER;

                  

          

          

          
            	
                     
      

                  	
                    (b)

                  	
                    By
      BUYER if there has been a breach of any representation, warranty, covenant
      or agreement of SELLERS or NCT that has had or is reasonably likely to
      result in a material adverse effect on the ability of SELLERS or NCT to
      consummate the transactions contemplated hereby; provided that, as
      applicable, SELLERS or NCT will have ten (10) days after receiving notice
      from BUYER thereof to cure such
breach;

                  

          

          

          
            	
                     
      

                  	
                    (c)

                  	
                    By
      SELLERS if there has been a breach of any representation, warranty,
      covenant or agreement of BUYER that has had or is reasonably likely to
      result in a material adverse effect on the ability of BUYER to consummate
      the transactions contemplated hereby; provided that BUYER will have ten
      (10) days after receiving notice from SELLERS thereof to cure such breach;
      or

                  

          

          

          
            
              
              

            

            
              26

              
                

              

            

            
              
              

            

             

          

          
            	
                     
      

                  	
                    (d)

                  	
                    By
      either BUYER or SELLERS if the sale and purchase of the Shares
      contemplated by this Agreement shall not have been consummated on or
      before September 30, 2008; provided, however that the right to terminate
      this Agreement under this Section 24(d) shall not be available to any
      party whose breach of any obligation under this Agreement has been the
      cause of, or resulted in, the failure of such transaction to occur before
      such date.

                  

          

          

          The
termination of this Agreement pursuant to this Section 24 shall terminate all
obligations of the parties hereunder and this Agreement shall become void and
have no effect without any liability on the part of any party.

           

          
            	
                    25.

                  	
                    Additional
      Deliveries

                  

          

           

          After the
Closing, the SELLERS and NCT will execute and deliver such additional
instruments as BUYER or its counsel may reasonably request in order to carry out
the transactions contemplated by this Agreement, and BUYER will execute and
deliver such additional instruments as SELLERS or its counsel may reasonably
request in order to carry out the transactions contemplated by this
Agreement.

           

          
            	
                    26.

                  	
                    Legal
      Fees

                  

          

           

          In the
event it becomes necessary for any of the parties to this Agreement to engage
legal counsel to enforce the terms of this Agreement or sue for damages
hereunder, then the prevailing party shall be entitled to reasonable attorneys'
fees and court costs actually expended.

           

          
            	
                    27.

                  	
                    Notices

                  

          

           

          All
notices, requests and other communications hereunder shall be in writing and
shall be deemed to have been given only if mailed, certified return receipt
requested, or if sent by Federal Express or other well recognized private
courier ("Courier") or if personally delivered to, or if sent by fax with the
original thereof sent by Courier to:

           

          
            
              	
                       
      

                    	
                      SELLER:

                    	
                      RANDY
      COSTALES & GLORIA D. COSTALES

                    

            

            
              	
                       
      

                    	
                      19970
      Golden Baugh Drive

                    

            

            
              	
                       
      

                    	
                      Covina,
      CA 91724

                    

            

            

            
              	
                       
      

                    	
                      With
      a copy to:

                    	
                      THOMAS
      F. MORRISON, Esq.

                    

            

            
              	
                       
      

                    	
                      Garrett
      DeFrenza Stiepel LLP

                    

            

            
              	
                       
      

                    	
                      695
      Town Center Drive, Suite 500

                    

            

            
              	
                       
      

                    	
                      Costa
      Mesa, CA 92626

                    

            

            
              	
                       
      

                    	
                      Fax
      (714) 384-4320

                    

            

             

            
              
                
                  
                  

                

                
                  27

                  
                    

                  

                

                
                  
                  

                

              

               

            

            
              	
                       
      

                    	
                      NCT:

                    	
                      NCF
      CHARITABLE TRUST

                    

            

            
              	
                       
      

                    	
                      1408
      North Westshore Blvd., Suite 504

                    

            

            
              	
                       
      

                    	
                      Tampa,
      FL  33607

                    

            

            

            
              	
                       
      

                    	
                      With
      a copy to:

                    	
                      NATIONAL
      CHRISTIAN CHARITABLE FOUNDATION,
INC.

                    

            

            
              	
                       
      

                    	
                      11625
      Rainwater Dr., Suite 500

                    

            

            
              	
                       
      

                    	
                      Alpharetta,
      GA  30009

                    

            

            
              	
                       
      

                    	
                      Attn:  General
      Counsel

                    

            

             

            
              	
                       
      

                    	
                      BUYER:

                    	
                      GENERAL
      ENVIRONMENTAL MANAGEMENT, INC.

                    

            

            
              	
                       
      

                    	
                      Attn:
      TIM KOZIOL

                    

            

            
              	
                       
      

                    	
                      3191
      Temple Ave., Suite 250

                    

            

            
              	
                       
      

                    	
                      Pomona,
      CA 91768

                    

            

            
              	
                       
      

                    	
                      Fax:
      909-444-9900

                    

            

            

            
              	
                       
      

                    	
                      With
      a copy to:

                    	
                      PATRICK
      LUND, Esq.

                    

            

            
              	
                       
      

                    	
                      Bohm,
      Matsen, Kegel & Aguilera, LLP

                    

            

            
              	
                       
      

                    	
                      695
      Town Center Drive, #700

                    

            

            
              	
                       
      

                    	
                      Costa
      Mesa, CA 92626

                    

            

            
              	
                       
      

                    	
                      Fax
      (714) 384-6501

                    

            

          

           

          All
notices, requests and other communications shall be deemed received on the date
of acknowledgment or other evidence of actual receipt in the case of certified
mail, Courier delivery or personal delivery or, in the case of fax delivery,
upon the date of fax receipt provided that the original is delivered within
two (2) business days thereafter.  Any party hereto may designate
different or additional parties for the receipt of notice, pursuant to notice
given in accordance with the foregoing.

           

          
            	
                    28.

                  	
                    Certain
      Definitions.  

                  

          

           

          The
following terms shall have the following meanings when used in this
Agreement:

          

          
            	
                     
      

                  	
                    (a)

                  	
                    The
      term “affiliate” when used with respect to a person or entity shall any
      other person or entity controlling, controlled by or under common control
      with the indicated person or
entity.

                  

          

          

          
            	
                     
      

                  	
                    (b)

                  	
                    The
      term “control” (including when used in a correlative form such as
      “controlling,” “controlled by,” or “under common control with”), when used
      with respect to any person or entity means the possession, direct or
      indirect, of the power to direct or cause the direction of the management
      and policies of such person or entity, whether through the ownership of
      voting securities or other ownership interest, by contract or
      otherwise.

                  

          

          

          
            
              
              

            

            
              28

              
                

              

            

            
              
              

            

             

          

          
            	
                     
      

                  	
                    (c)

                  	
                    The
      term “material adverse change” when used with respect to ISLAND shall mean
      any change, effect, circumstance or event that is materially adverse to
      the business, assets, operations or financial condition of ISLAND other
      than as a result of (i) changes, conditions or events that are generally
      applicable to the industry in which ISLAND conducts business, (ii)
      seasonal fluctuations in the performance of ISLAND or (iii) the effects
      including, without limitation, effects on relations and business with
      customers, suppliers and employees, of any of the transactions
      contemplated by this Agreement.

                  

          

          

          
            	
                     
      

                  	
                    (d)

                  	
                    The
      term “to the knowledge of” when used (i) with respect to SELLERS shall
      mean to the actual knowledge of either RANDY or DODIE after reasonable
      investigation and (ii) with respect to NCT shall mean to the actual
      knowledge of NCT with no duty of
investigation.

                  

          

           

          
            	
                    29.

                  	
                    Successors and
      Assigns

                  

          

           

          This
Agreement is binding on and inures to the benefit of the parties, their
executors, administrators, personal representatives and successors and assigns;
provided that no party may assign, delegate or otherwise transfer any of its
rights or obligations under this Agreement without the prior written consent of
the other parties hereto.

           

          
            	
                    30.

                  	
                    Applicable
      Law;
      Jurisdiction

                  

          

           

          This
Agreement shall be governed by and construed in accordance with the internal
laws of the State of California.  Any action or proceeding seeking to
enforce any provision of, or based on any matter arising in connection with,
this Agreement or the transactions contemplated hereby may be brought against
any of the parties only in any state or federal court located in Orange County,
California and each of the parties hereby consents to the exclusive jurisdiction
of such courts (and of the appropriate appellate courts) in any such action or
proceeding and waives any objection to venue laid therein.

           

          
            	
                    31.

                  	
                    Entire
      Agreement

                  

          

           

          This
Agreement and the exhibits and schedules hereto contains and constitutes the
entire agreement between the parties hereto with respect to the subject matter
hereof and supersedes all prior agreements or understandings between the parties
hereto relating to such subject matter.  ISLAND, SELLERS, and BUYER
hereby expressly agree that there are no direct or indirect agreements, options
or clandestine arrangements of any kind between the parties hereto or any
associates or relatives of the parties, nor do there exist any representations
or warranties by either party other than as stated herein.

           

          
            	
                    32.

                  	
                    Covenant of
      Cooperation and Fair Dealing

                  

          

           

          The
parties agree to cooperate in promptly and properly executing any and all
documents or making any and all requests for documents, clearances, etc. in
order to accomplish the consummation of this Agreement.

           

          
            
              
              

            

            
              29

              
                

              

            

            
              
              

            

          

           

          
            	
                    33.

                  	
                    Amendments and
      Waivers

                  

          

           

          This
Agreement cannot be altered or amended except pursuant to an instrument in
writing signed by all of the parties hereto.  No failure or delay by
any party in exercising any right, power or privilege hereunder shall operate as
a waiver thereof nor shall nay single or partial exercise thereof preclude any
other or further exercise thereof or the exercise of any other right, power or
privilege granted hereunder.

           

          
            	
                    34. 

                  	
                    Counterparts

                  

          

           

          This
Agreement may be executed in multiple counterparts, each of which shall be
binding against the party executing it and considered as an
original.

          

          

          [Remainder of Page Intentionally Left
Blank – Signature Page Follows]

           

           

           

           

           

           

           

          
            
              
              

            

            
              30

              
                

              

            

            
              
              

            

          

           

          [Signature Page to Stock Purchase
Agreement]

          

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

           

          
            
              	SELLERS:	 	 	
                      NCT:

                    	 
	 	 	 	 	 
	 	 	 	
                      NCF
      CORPORATION, not individually but solely in its capacity as Trustee of NCF
      CHARITABLE TRUST

                    	 
	 	 	 	 	 
	 	 	 	 	 
	
                       

                    	 	By:	
                       

                    	 
	
                      RANDY COSTALES, an
      individual

                    	 	Name:	
                       

                    	 
	
                       

                    	 	Title:	
                       

                    	 

            

          

           

          
            
              	
                       

                    	 	 	
                       

                    	 
	
                      GLORIA D. COSTALES, an
      individual

                    	 	 	
                       

                    	 
	
                       

                    	 	 	
                       

                    	 

            

             

          

          
            
              	
                      ISLAND:

                    	 	 	 	 
	 	 	 	 	 	 
	
                      ISLAND
      ENVIRONMENTAL SERVICES INC., a California Corporation

                    	 	 	 	 
	 	 	 	 	 	 
	By:	
                       

                    	 	 	
                       

                    	 
	 	
                      RANDY COSTALES,
      President

                    	 	 	
                       

                    	 

            

          

           

          
             

            
              
                	
                        BUYER:

                      	 	 	 	 
	 	 	 	 	 	 
	
                        GENERAL
      ENVIRONMENTAL MANAGEMENT, INC. a Delaware Corporation

                      	 	 	 	 
	 	 	 	 	 	 
	By:	
                         

                      	 	 	
                         

                      	 
	 	
                        TIMOTHY J. KOZIOL, Chairman and
      Chief Executive Officer

                      	 	 	
                         

                      	 

              

            

             

            
              
                
                

              

              
                31

                
                  

                

              

              
                
                

              

            

          

           

          UNDERTAKING OF GEM
NEVADA

           

          The
undersigned, General Environmental Management, Inc., a Nevada corporation, (“GEM
NEVADA”) hereby agrees to be responsible (as though it were a primary obligor
and not a guarantor) for and indemnify SELLERS against any Losses (as defined in
Section 19(a) of this Agreement) they may incur as a result of the breach by
BUYER of any of its representations, warranties or covenants under this
Agreement to the same extent as if GEM NEVADA were the “BUYER”
hereunder.

          

          GENERAL
ENVIRONMENTAL MANAGEMENT, INC. a Nevada Corporation

          

          
            
              	 	 	 	 	 	 
	By: 	
                       

                    	 	 	
                       

                    	 
	Name:	
                       

                    	 	 	
                       

                    	 
	Title: 	
                       

                    	 	 	
                       

                    	 

            

          

           

           

          
            
              
              

            

            
              32

              
                

              

            

            
              
              

            

          

           

          EXHIBIT
A

          

          Promissory
Note in the Amount of $1,062,500

          

          (Attached
hereto)

           

          
            
              
              

            

            
              33

              
                

              

            

            
              
              

            

          

           

          EXHIBIT
A-1

          

          Promissory
Note in the Amount of $187,500

          

          (Attached
hereto)

           

          
            
              
              

            

            
              34

              
                

              

            

            
              
              

            

          

           

          EXHIBIT
B

          

          Corporate
Guaranty of GEM Nevada for the $1,062,500 Note

          

          (Attached
hereto)

           

          
            
              
              

            

            
              35

              
                

              

            

            
              
              

            

          

           

          EXHIBIT
B-1

          

          Corporate
Guaranty of GEM Nevada for the $187,500 Note

          

          (Attached
hereto)

           

          
            
              
              

            

            
              36

              
                

              

            

            
              
              

            

          

          

          EXHIBIT
C

          

          Form
of Contingent Promissory Note

          

          (Attached
hereto)

           

          
            
              
              

            

            
              37

              
                

              

            

            
              
              

            

          

           

          EXHIBIT
D

          

          Form
of Guaranty of GEM Nevada for Contingent Note

          

          (Attached
hereto)

           

          
            
              
              

            

            
              38

              
                

              

            

            
              
              

            

          

           

          EXHIBIT
E

          

          Employment
Agreement

          

          (Attached
hereto)

           

          
            
              
              

            

            
              39

              
                

              

            

            
              
              

            

          

           

          EXHIBIT
F

          

          Agreement
Not to Compete

          

          (Attached
hereto)

           

          
            
              
              

            

            
              40

              
                

              

            

            
              
              

            

          

          

          EXHIBIT
G

          

          Premises
Lease

          

          [Attached
hereto]

           

          
            
              
              

            

            
              41

              
                

              

            

            
              
              

            

          

           

          Schedule
3

          

          EBITDA
Calculation Methodology

          

          EBITDA.  “EBITDA”
shall mean all Earnings Before Interest, Taxes, Depreciation, and Amortization
of Island Environmental Services, Inc. as defined by Generally Accepted
Accounting Principles (GAAP), consistently applied.

          

          Exclusions
from EBITDA will include the following:

          

          Revenue,
costs, and expenses from new customers and/or new service offerings on existing
customer accounts obtained after the closing date. New divisions, departments,
geographies, regions or affiliates of existing customer accounts will not be
considered ‘new’ accounts nor will any prospective customer that prior to
closing has been provided a sales quote by Island for that quoted
business.

          

          Any
costs, expenses, or overhead allocations from GEM, its subsidiaries, affiliates,
or shareholders, including closing costs related to the purchase of
Island.

           

        

        
          
            
            

          

          
            42

            
              

            

          

          
            
            

          

        

      

       

      Schedule
3-A

      

      Examples
of Calculation of Accelerated Note Payments and Contingent Earn-Out

      

      Example
#1

      a.           Assumption:
EBITDA Recapture Percentage = 0%

      b.           Amounts
Due:

      
        	
                 
      

              	
                (i)

              	
                Accelerated
      Note Payment = $750,000 to be split 85%/15% between SELLER and NCT (see
      Section 3(a) of the Agreement).

              

      

      
        	
                 
      

              	
                (ii)

              	
                Contingent
      Earn-Out = $0.00

              

      

       

      
        Example
#2

      

      
      

      a.           Assumption:  EBITDA
Recapture Percentage = 25%

      b.           Amounts
Due:

      
        	
                 
      

              	
                (i)

              	
                Accelerated
      Note Payment = $562,500 (.75 x $750,000) to be split 85%/15% between
      SELLER and NCT.

              

      

      
        	
                 
      

              	
                (ii)

              	
                Contingent
      Earn-Out = $937,500 (.25 x $3,750,000) payable to SELLERS and NCT as
      follows:

              

      

      
        	
                 
      

              	
                (A)

              	
                Cash
      Payment of $187,500 ($750,000 - $562,500) to be split 85%/15% between
      SELLER and NCT

              

      

      
        	
                 
      

              	
                (B)

              	
                Contingent
      Notes in the aggregate amount of $750,000 ($937,500 - $187,500) to be
      split 85%/15% between SELLER and
NCT

              

      

       

      Example
#3

      a.           Assumption:  EBITDA
Recapture Percentage = 50%

      b.           Amounts
Due:

      
        	
                 
      

              	
                (i)

              	
                Accelerated
      Note Payment = $375,000 (.50 x $750,000) to be split 85%/15% between
      SELLER and NCT.

              

      

      
        	
                 
      

              	
                (ii)

              	
                Contingent
      Earn-Out = $1,875,000 (.50 x $3,750,000) payable to SELLERS and NCT as
      follows:

              

      

      
        	
                 
      

              	
                (A)

              	
                Cash
      Payment of $375,000 ($750,000 - $375,000) to be split 85%/15% between
      SELLER and NCT

              

      

      
        	
                 
      

              	
                (B)

              	
                Contingent
      Notes in the aggregate amount of $1,500,000 ($1,875,000 - $375,000) to be
      split 85%/15% between SELLER and
NCT

              

      

       

      Example
#4

      a.           Assumption:  EBITDA
Recapture Percentage = 75%

      b.           Amounts
Due:

      
        	
                 
      

              	
                (i)

              	
                Accelerated
      Note Payment = $187,500 (.25 x $750,000) to be split 85%/15% between
      SELLER and NCT.

              

      

      
        	
                 
      

              	
                (ii)

              	
                Contingent
      Earn-Out = $2,812,500 (.75 x $3,750,000) payable to SELLERS and NCT as
      follows:

              

      

      
        	
                 
      

              	
                (A)

              	
                Cash
      Payment of $562,500 ($750,000 - $187,500) to be split 85%/15% between
      SELLER and NCT

              

      

      
        	
                 
      

              	
                (B)

              	
                Contingent
      Notes in the aggregate amount of $2,250,000 ($2,812,500 - $562,500) to be
      split 85%/15% between SELLER and
NCT

              

      

      

      [Exhibit Continues on Next
Page]

       

      
        
          
          

        

        
          43

          
            

          

        

        
          
          

        

      

       

      Example
#5

      a.           Assumption:  EBITDA
Recapture Percentage = 100%

      b.           Amounts
Due:

      
        	
                 
      

              	
                (i)

              	
                Accelerated
      Note Payment = $0 (0 x $750,000)

              

      

      
        	
                 
      

              	
                (ii)

              	
                Contingent
      Earn-Out = $3,750,000 (1.0 x $3,750,000) payable to SELLERS and NCT as
      follows:

              

      

      
        	
                 
      

              	
                (A)

              	
                Cash
      Payment of $750,000 ($750,000 - $0) to be split 85%/15% between SELLER and
      NCT

              

      

      
        	
                 
      

              	
                (B)

              	
                Contingent
      Notes in the aggregate amount of $3,000,000 ($3,750,000 - $750,000) to be
      split 85%/15% between SELLER and
NCT

              

      

       

      
        
          
          

        

        
          44

          
            

          

        

        
          
          

        

      

       

      Schedule
16(g)

      

      Policies
of Insurance

      

      
        	
                Company
      Name

              	
                Insurance
      Type

              	
                Start
      Date

              	
                End
      Date

              	
                Amount
      Covered

              
	
                Zurich
      American Insurance Company

              	
                General
      Liability

              	
                3/15/2008

              	
                3/15/2009

              	
                $2,000,000.00

              
	
                Zurich
      American Insurance Company

              	
                Automobile
      Liability  & Physical Damage

              	
                3/15/2008

              	
                3/15/2009

              	
                $1,200,000.00

              
	
                Steadfast
      Insurance Company

              	
                Excess
      Liability

              	
                3/15/2008

              	
                3/15/2009

              	
                $4,000,000.00

              
	
                General
      Star Insurance Company

              	
                Commercial
      Property

              	
                3/15/2008

              	
                3/15/2009

              	
                $880,000.00

              
	
                Zurich
      American Insurance Company

              	
                California
      Workers' Compensation

              	
                12/31/2007

              	
                12/31/2008

              	
                $1,000,000.00

              
	
                Steadfast
      Insurance Company

              	
                Professional
      Environmental Consultant's Liability

              	
                3/15/2008

              	
                3/15/2009

              	
                $1,000,000.00

              
	
                HCC
      Surety Group

              	
                Bidder's
      Bonds

              	
                7/09/2008

              	
                10/01/2008

              	
                $10,000.00

              
	
                Arch
      Insurance Company

              	
                Bidder's
      Bonds

              	
                3/21/2008

              	 
      	
                10%
      of Bid

              
	
                American
      Contractors Indemnity Company

              	
                Bidder's
      Bonds

              	
                7/09/2008

              	 
      	
                $10,000.00

              
	
                American
      Contractors Indemnity Company

              	
                ERISA
      Bond

              	
                11/27/2007

              	
                11/27/2010

              	
                $150,000.00

              
	
                Economy
      Bonds & Insurance Services

              	
                Contractors
      Bond

              	
                10/02/2007

              	
                11/01/2010

              	
                $12,500.00

              
	
                American
      Contractors Indemnity Company

              	
                Bond
      of Qualifying Individual

              	
                10/02/2007

              	
                10/02/2009

              	
                $10,000.00

              
	
                American
      Contractors Indemnity Company

              	
                Waste
      Tire Hauler Bond

              	
                11/02/2005

              	
                Yearly

              	
                $10,000.00

              

      

      

      
        
          
          

        

        
          45

          
            

          

        

        
          
          

        

      

       

      Schedule
16(h)

      

      Material
Contracts

      

      Customer
Contracts:

      

      
        	
                Customer
      Name

              	
                Contract
      Number

              	
                Start
      Date

              	
                End
      Date

              	
                Contract
      Value

              
	
                Anaheim,
      City Of

              	
                MA
      106 400372

              	
                03/01/2008

              	
                02/28/2009

              	
                Per
      Unit

              
	
                Beverly
      Hills, City of

              	
                99-08

              	
                06/23/2008

              	
                12/19/2008

              	
                $111,114.00

              
	
                Caltrans

              	
                07A2046
      A01

              	
                07/17/2008

              	
                09/12/2008

              	
                $2,498,000.00

              
	
                Caltrans

              	
                12a1118

              	
                12/01/2007

              	
                11/30/2010

              	
                $58,100.00

              
	
                Caltrans

              	
                07A2226

              	
                09/01/2007

              	
                06/30/2009

              	
                $363,800.00

              
	
                The
      Dial Corporation

              	
                4750003847

              	
                01/01/2008

              	
                12/31/2008

              	
                $15,600.00

              
	
                Los
      Angeles County: Internal Services Dept.

              	
                PO-15-32000

              	
                08/04/2008

              	
                06/30/2009

              	
                $318,000.00

              
	
                Los
      Angeles County Sheriff

              	
                DPO-SH-36505732-2

              	
                07/17/2008

              	 
      	
                $87,500.00

              
	
                Los
      Angeles County Sheriff

              	
                DPO-SH-36505734

              	
                07/01/2008

              	
                06/30/2009

              	
                $19,500.00

              
	
                Orineco

              	 
      	
                11/9/2006

              	
                11/9/2008

              	 
      

      

      

      

      Vendor
Contracts:

      

      
        	
                Vendor
      Name

              	
                Start
      Date

              	
                End
      Date

              	
                Contract
      Service

              
	
                Penske
      Truck Leasing

              	
                01/01/2008

              	
                N/A

              	
                Leased
      Vehicles

              
	
                Arch
      Insurance Company

              	
                06/30/2006

              	
                N/A

              	
                Bond
      Services

              
	
                Jack
      Doheny Companies

              	
                01/01/2008

              	
                N/A

              	
                Short
      Term Rental of Vehicles

              
	
                Athens
      Services

              	
                03/31/2007

              	
                N/A

              	
                Trash
      Service

              
	
                GSM
      Insurance Services

              	
                03/01/2008

              	
                N/A

              	
                Insurance
      Broker Services

              
	
                Airgas

              	
                02/19/2008

              	
                N/A

              	
                Dry
      Ice

              
	
                California
      Drug Testing Associates

              	
                03/24/2008

              	
                N/A

              	
                Drug/Alcohol
      Testing Program

              
	
                HCC
      Surety Group

              	
                07/09/2008

              	
                08/31/2008

              	
                Bond
      Services

              
	
                Recycle
      Service Agreement

              	
                05/06/2005

              	
                N/A

              	
                Disposal
      Services

              
	
                MB
      Trucking

              	
                09/14/2004

              	
                N/A

              	
                Trucking
      Subcontractor

              
	
                Zamora
      Trucking

              	
                09/26/2007

              	
                N/A

              	
                Trucking
      Subcontractor

              

      

      

      [Schedule
continues on next page]

       

      
        
          
          

        

        
          46

          
            

          

        

        
          
          

        

      

      

      
        	
                Vendor
      Name

              	
                Start
      Date

              	
                End
      Date

              	
                Contract
      Service

              
	
                Southbound
      Transportation

              	
                09/18/2007

              	
                N/A

              	
                Trucking
      Subcontractor

              
	
                GoDaddy

              	
                01/15/2005

              	
                N/A

              	
                Email
      Services

              
	
                Hasler
      Mailing Systems and Solutions

              	
                10/26/2005

              	
                12/31/2008

              	
                Postage
      Meter

              
	
                Paetec
      Communications

              	
                10/22/2004

              	
                N/A

              	
                Phone
      Services and T1 LAN Line

              
	
                @Road

              	
                11/19/2004

              	
                N/A

              	
                GPS
      Service in Trucks

              
	
                ADP

              	
                05/18/2005

              	
                N/A

              	
                Payroll
      Services

              
	
                U.S.
      Health Works

              	
                07/13/2006

              	
                N/A

              	
                Health
      Exam Services

              
	
                Baker
      Tanks

              	
                06/22/2006

              	
                N/A

              	
                Truck
      Rentals

              
	
                Benefit
      Consulting Group

              	
                11/10/2006

              	
                N/A

              	
                Benefits
      Administration Profit
      Sharing Plan

              
	
                Occuscreen

              	
                03/15/2007

              	
                N/A

              	
                Employment
      Screening

              
	
                Cintas

              	
                02/01/2007

              	
                N/A

              	
                Uniform
      Rental

              
	
                Haney's
      Landscape Maintenance

              	
                08/28/2007

              	
                N/A

              	
                Lawn
      Maintenance

              
	
                Citistreet

              	
                04/30/2008

              	
                N/A

              	
                401.K
      Administration

              
	
                GE
      Capital

              	
                06/20/2008

              	
                06/20/2010

              	
                Copier
      Machines

              

      

       

      Agreements
with Employees:

      

      ISLAND
has in place at-will employee agreements in standard form with all of its
employees, copies of which have been made available to BUYER.

      

      ISLAND
also has in place agreements for bonuses for the following
employees:

      

      A.  Margaret
Hoyos, 5% of net profits on Caltrans Projects

      B.  Juan Rivers, 5% of net
profits on Caltrans and construction projects

      

      See
Section 16(l) regarding equipment leases

       

      
        
          
          

        

        
          47

          
            

          

        

        
          
          

        

      

      

      Schedule
16(i)

      

      Pending
Actions

      

      1.  In
process of audit by L.A. County Tax Assessor’s Office – 57lL (Busines
Property)

      

      2.  Worker’s
Comp Claims Still Open:

      

      A.  Eric Rogers  –
DOI 1/17/06 – Back Injury

      B.  Todd Gireth – DOI 8/15/07
– Hernia Repair

      C.  Roger Suits  –
DOI 8/21/07  -  Back Injury

       

      
        
          
          

        

        
          48

          
            

          

        

        
          
          

        

      

       

      Schedule
16(l)

      

      Leased
Assets

      

      1.  2006
Freightliner (Unit #99) – Leased from Penske

      

      2.  3
Konica Copiers – Leased from GE Capital

      

      3.  Postage
Meter – Leased from Hassler

       

      
        
          
          

        

        
          49

          
            

          

        

        
          
          

        

      

      

      Schedule
16(q)

      

      Certain
Financial Information

       

      
        
          	
                  1.

                	
                  Schedules
      included in IES 12-31-07 binder which includes balance sheets, income
      statements, reconciliations of EBITDA and supporting financial
      data.

                

        

        
          	
                  2.

                	
                  Schedules
      included in IES 9-30-06 binder which includes balance sheets, income
      statements, reconciliations of EBITDA and supporting financial
      data.

                

        

        
          	
                  3.

                	
                  Schedules
      included in IES 12-31-06 binder which includes balance sheets, income
      statements, reconciliations of EBITDA and supporting financial
      data.

                

        

        
          	
                  4.

                	
                  Schedules
      included in IES 9-30-05 binder which includes balance sheets, income
      statements, reconciliations of EBITDA and supporting financial
      data.

                

        

        
          	
                  5.

                	
                  Check
      Register for pay date 01/14/05

                

        

        
          	
                  6.

                	
                  Payroll
      Register for pay date 01/13/06

                

        

        
          	
                  7.

                	
                  Payroll
      Register for pay date 01/12/07

                

        

        
          	
                  8.

                	
                  Vacation
      schedules12/2004 through 07/2008

                

        

        
          	
                  9.

                	
                  Balance
      Sheet at 03/31/08

                

        

        
          	
                  10.

                	
                  Balance
      Sheet and Income Statement at
05/31/08

                

        

        
          	
                  11.

                	
                  Balance
      Sheet and Income Statement at
06/30/08

                

        

        
          	
                  12.

                	
                  Balance
      Sheet and Income Statement at
07/31/08

                

        

        
          	
                  13.

                	
                  Trial
      balance from 01/01/08 – 03/31/08

                

        

        
          	
                  14.

                	
                  Accounts
      Receivable Aging Detail Report at
03/31/08

                

        

        
          	
                  15.

                	
                  Income
      Statement by month for FYE 12/31/07

                

        

        
          	
                  16.

                	
                  Income
      Statement by month for FYE 12/31/06

                

        

        
          	
                  17.

                	
                  Reviewed
      Financial Statement at 12/31/07

                

        

        
          	
                  18.

                	
                  Equipment
      List at 04/01/08

                

        

        
          	
                  19.

                	
                  Accounts
      Payable Journal from 03/01/08 –
03/31/08

                

        

        
          	
                  20.

                	
                  Account
      Balance Statement for profit sharing plan from 10/01/06 –
      09/30/07

                

        

        
          	
                  21.

                	
                  Fixed
      Asset Detail at 12/31/06

                

        

        
          	
                  22.

                	
                  Balance
      Sheet, Income Statement, Trial Balance, Payroll Accrual, Vacation Accrual,
      Fixed Asset Detail, AR Aging Summary, AP Aging Summary for FYE
      12/31/05

                

        

        
          	
                  23.

                	
                  Balance
      Sheet, Income Statement, Trial Balance, Payroll Accruals for FYE
      12/31/06

                

        

        
          	
                  24.

                	
                  Income
      Statement, Balance Sheet, Trial Balance at
  09/30/07

                

        

        
          	
                  25.

                	
                  Balance
      Sheet, Income Statement, Trial Balance at
  09/30/06

                

        

        
          	
                  26.

                	
                  Balance
      Sheet, Income Statement at 09/30/04

                

        

        
          	
                  27.

                	
                  Island
      Stormwater Services Income Statement at
09/30/06

                

        

        
          	
                  28.

                	
                  Balance
      Sheet, Income Statement at 09/30/03

                

        

        
          	
                  29.

                	
                  Property
      Tax form 571L for 2008

                

        

        
          	
                  30.

                	
                  Vendor
      information on K-Pure Waterworks, Pacific Resource Recovery, Rain for
      Rent, and US Ecology & Remedy
Environmental

                

        

        
          	
                  31.

                	
                  AR
      & AP Aging Detail at 07/31/08

                

        

        
          	
                  32.

                	
                  Fixed
      Asset GL Transaction Register at
07/2008

                

        

      

       

      
        
          
          

        

        
          50

          
            

          

        

        
          
          

        

      

       

      Schedule
16(r)

      

      Financial
Statements

      

      [Attached
hereto]

       

      
        
          
          

        

        
          51

          
            

          

        

        
          
          

        

      

       

      Schedule
16(y)

      

      Permits,
Licenses, Franchises, etc.

      

      
        	
                Name
      of Permitting/Licensing Agency

              	
                Expiration
      Date

              
	
                ENVIRONMENTAL
      PROTECTIVE AGENCY IDENTIFICATION NUMBER

              	
                N/A

              
	
                MOTOR
      CARRIER PERMIT

              	
                N/A

              
	
                HAZARDOUS
      MATERIALS CERTIFICATE OF REGISTRATION

              	
                06/30/09

              
	
                U.S.
      DOT IDENTIFICATION #465272

              	
                N/A

              
	
                U.S.
      DOT MOTOR CARRIER SAFETY RATING CERTIFICATE OF ACHIEVEMENT

              	
                N/A

              
	
                STATE
      OF CALIFORNIA, DEPT OF TOXIC SUBSTANCES CONTROL

              	
                10/31/08

              
	
                METROPOLITAN
      TRANSPORTATION AUTHORITY

              	
                12/11/09

              
	
                WMBE
      CLEARING HOUSE - CITY
      OF LOS ANGELES

              	
                01/24/09

              
	
                COUNTY
      OF LOS ANGELES - OFFICE OF AFFIRMATIVE ACTION COMPLIANCE

              	
                11/29/09

              
	
                STATE
      OF CALIFORNIA CERTIFICATION OF
      STATUS

              	
                02/28/09

              
	
                CALIFORNIA
      HIGHWAY PATROL - HAZARDOUS
      MATERIAL TRANSPORTATION

              	
                03/31/09

              
	
                CALIFORNIA
      STATE BOARD OF EQUALIZATION - SELLER'S PERMIT

              	
                N/A

              
	
                CITY
      OF LOS ANGELES - TAX
      REGISTRATION CERTIFICATE

              	
                N/A

              
	
                CALIFORNIA
      STATE BOARD OF EQUALIZATION USE
      FUEL TAX PERMIT

              	
                N/A

              
	
                INTERNATIONAL
      FUEL TAX AGREEMENT

              	
                12/31/08

              
	
                DEPARTMENT
      OF FOOD & AGRICULTURE

              	
                12/31/08

              
	
                CITY
      OF POMONA

              	
                06/30/08

              
	
                CITY
      OF FULLERTON

              	
                04/01/09

              
	
                CITY
      OF INGLEWOOD

              	
                12/31/08

              
	
                STATE
      OF CALIFORNIA DEPARTMENT OF INDUSTRIAL RELATIONS

              	
                11/29/09

              
	
                STATE
      OF CALIFORNIA DEPARTMENT OF INDUSTRIAL RELATIONS

              	
                11/29/09

              
	
                LOS
      ANGELES COUNTY FIRE DEPARTMENT

              	
                12/31/08

              
	
                NATIONAL
      MOTOR FREIGHT TRAFFIC ASSOCIATION, INC.

              	
                06/30/09

              
	
                CITY
      OF RENO

              	
                02/28/09

              
	
                DEPARTMENT
      OF GENERAL SERVICES OFFICE
      OF SMALL BUSINESS CERTIFICATION AND RESOURCES

              	
                07/31/09

              
	
                ALLIANCE
      FOR UNIFORM HAZMAT TRANSPORTATION PERMIT

              	
                12/31/08

              
	
                METROPOLITAN
      TRANSPORTATION AUTHORITY

              	
                10/12/08

              
	
                CALIFORNIA
      DRUG TESTING ASSOCIATES

              	
                12/31/08

              
	
                UTAH
      DEPT. OF TRANSPORTATION

              	
                UNKNOWN

              
	
                ARKANSAS
      HAZARDOUS WASTE TRANSPORTATION
      PERMIT

              	
                01/05/09

              
	
                CALIFORNIA
      UNIFIED CERTIFICATION PROGRAM (MTA-CERT DBE/MBE)

              	
                06/01/08

              
	
                CITY
      OF RIVERSIDE

              	
                06/21/09

              
	
                GENERAL
      ENGINEERING A. CONTRACTORS
      STATE LICENSE BOARD

              	
                10/31/08

              

      

       

      
        
          
          

        

        
          52

          
            

          

        

        
          
          

        

      

       

      
        	
                STATE
      OF CALIFORNIA, DEPT. OF  TOXIC SUBSTANCE CONTROL
      (TTU)

              	
                06/12/09

              
	
                STATE
      WATER RESOURCES CONTROL BOARD DIV.
      OF WATER QUALITY

              	
                N/A

              
	
                COUNTY
      OF LOS ANGELES DEPT.
      OF HEALTH SERVICES

              	
                06/30/08

              
	
                COUNTY
      OF LOS ANGELES DEPT.
      OF HEALTH SERVICES

              	
                06/30/08

              
	
                ARIZONA
      DEPARTMENT OF ENVIRONMENTAL
      QUALITY

              	
                12/31/07

              
	
                STATE
      OF NEW MEXICO TAXATION
      & REVENUE DEPT.

              	
                12/31/08

              
	
                CALIFORNIA
      INTEGRATED WASTE MANAGEMENT BOARD

              	
                12/31/08

              
	
                OREGON
      DEPARTMENT OF TRANSPORTATION

              	
                12/31/08

              
	
                CALIFORNIA
      REGIONAL WATER QUALITY CONTROL BOARD

              	
                08/01/08

              
	
                CALIFORNIA
      REGIONAL WATER QUALITY CONTROL BOARD

              	
                08/01/08

              
	
                LOS
      ANGELES COUNTY FIRE DEPT. – CUPA

              	
                12/11/08

              
	
                LICENSED
      CONTRACTOR’S INSURANCE AGENCY

              	
                10/02/09

              
	
                CITY
      OF SANTA FE SPRINGS

              	
                07/31/08

              
	
                US
      DEPT. OF  TRANSPORTATION MOTOR
      CARRIER PERMIT – FEDERAL

              	
                N/A

              
	
                U.S.
      DEPT. OF TRANSPORTATION (PIPELINE & HAZARDOUS MATERIALS SAFETY
      ADMINISTRATION)

              	
                04/30/09

              
	
                COUNTY
      OF LOS ANGELES, DEPARTMENT OF HEALTH SERVICES

              	
                06/28/08

              
	
                COUNTY
      OF LOS ANGELES, DEPARTMENT OF PUBLIC HEALTH

              	
                04/28/08

              
	
                BOND
      SERVICES OF CALIFORNIA

              	
                11/02/08

              
	
                STATE
      OF CALIFORNIA, SECRETARY OF STATE

              	
                02/29/08

              
	
                DIESEL
      AIR FLEET SERVICE

              	
                06/09/08

              
	
                UNIFORM
      INTERMODAL INTERCHANGE & FACILITIES ACCESS AGREEMENT
      (UIIA)

              	
                11/15/08

              
	
                COUNTY
      SANITATION DISTRICTS OF LOS
      ANGELES COUNTY

              	
                12/31/08

              
	
                COUNTY
      SANITATION DISTRICTS OF LOS
      ANGELES COUNTY

              	
                12/31/08

              
	
                COUNTY
      OF RIVERSIDE, COMMUNITY
      HEALTH AGENCY DEPT.
      OF ENVIRONMENTAL HEALTH

              	
                12/31/08

              
	
                SANTA
      ANA WATERSHED PROJECT AUTHORITY
      (SAWPA)

              	
                05/27/10

              

      

       

      
        
          
          

        

        
          53

          
            

          

        

        
          
          

        

      

       

      Schedule
19(g)

      

      Indemnification
Claim Procedures

      

      Claims for
Indemnity.  Whenever a claim for Losses shall arise for which
one party the (the “Indemnified Party”)
shall be entitled to indemnification hereunder, the Indemnified Party shall
notify the other party (the “Indemnifying Party”)
in writing describing the claim and the basis therefor; provided however, that
the failure to give notice shall not affect the right of the Indemnified Party
to indemnification hereunder except to the extent that such failure prejudices
the ability of the Indemnifying Party to defend any claim.  The right
of the Indemnified Party to indemnification, as set forth in this notice, shall
be deemed agreed to by the Indemnifying Party unless, within thirty (30) days
after the mailing of such notice, the Indemnifying Party shall notify the
Indemnified Party in writing that it disputes the right of the Indemnified Party
to indemnification.  If the Indemnified Party shall be duly notified
of such dispute, the parties shall attempt to settle and compromise the
same.

      

      Defense of
Claims.  Upon receipt by the Indemnifying Party of a notice
from the Indemnified Party with respect to any claim of a third party against
the Indemnified Party, and acknowledgment by the Indemnifying Party (whether
after resolution of a dispute or otherwise) of the Indemnified Party’s right to
indemnification hereunder with respect to such claim, the Indemnifying Party
shall assume the defense of such claim with counsel reasonably satisfactory to
the Indemnified Party and the Indemnified Party shall cooperate to the extent
reasonably requested by the Indemnifying Party in defense or prosecution
thereof, provided that the Indemnified Party is reimbursed by the Indemnifying
Party for its costs in connection with such cooperation.  If the
Indemnifying Party shall acknowledge the Indemnified Party’s right to
indemnification and elect to assume the defense of such claim, the Indemnified
Party shall have the right to employ its own counsel in any such case, but the
fees and expenses of such counsel shall be at the expense of the Indemnified
Party, unless there is, under applicable standards of conduct, a conflict on any
significant issue between Indemnifying Party and the Indemnified Party that
makes it improper for one counsel to represent both parties, in which case the
reasonable fees and expenses of such counsel shall be at the expense of the
Indemnifying Party.  If the Indemnifying Party has assumed the defense
of any claim against the Indemnified Party, the Indemnifying Party shall have
the right to settle any claim for which indemnification has been sought and is
available hereunder; provided that, to the extent that such settlement requires
the Indemnified Party to take, or prohibits the Indemnified Party from taking,
any action or purports to obligate the Indemnified Party, then the Indemnifying
Party shall not settle such claim without the prior written consent of the
Indemnified Party, which consent shall not be unreasonably
withheld.  If the Indemnifying Party does not assume the defense of a
third party claim and disputes the Indemnified Party’s right to indemnification,
the Indemnifying Party shall have the right to participate in the defense of
such claim through counsel of its choice, at the Indemnifying Party’s expense,
and the Indemnified Party shall have control over the litigation and authority
to resolve such claim subject to this Schedule 19(e).

       

       

      54

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