Document:

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT ("Agreement") shall be effective as of the 15th day of
May, 2000 between Salix Pharmaceuticals, Ltd., a British Virgin Islands
International Business Company having an office at 3600 W. Bayshore Road, Suite
205, Palo Alto, CA 94303 (together with its subsidiaries, affiliates and
successors hereafter referred to as "Employer"), and Robert P. Ruscher who is an
individual having a residence at 7808 Hardwick Drive, Raleigh, NC 27615
("Employee").

                                    RECITALS

         WHEREAS, Employee currently is employed by Employer as President, Chief
Executive Officer and a member of the Board of Directors; and

         WHEREAS, the Board of Directors of Employer believes it is in the best
interests of Employer and its shareholders to ensure the continued employment of
Employee in the position set forth above and to dissuade Employee from pursuing
other employment opportunities outside of Employer; and

         WHEREAS, the Board of Directors of Employer believes it is imperative
to provide the Employee with certain benefits upon termination of Employee's
employment under certain circumstances, which benefits are intended to provide
the Employee with incentive to remain with the Employer.

         NOW THEREFORE, in consideration of the recitals above and the mutual
promises, covenants, and undertakings set forth below, Employer and Employee
agree as follows:

                                   OBLIGATIONS

                                    ARTICLE I
                                   EMPLOYMENT

         1.1 Employer hereby agrees to continue to employ Employee as an
executive in the position(s) set forth above with such duties as are reasonably
assigned by the Board of Directors (or its designee) from time to time that are
consistent with such position(s). Such employment shall continue until
terminated in accordance with the terms of this Agreement.

         1.2 Employee accepts employment with Employer as set forth herein.
Employee agrees to perform fully, faithfully, competently, and effectively such
duties as shall be reasonably assigned by the Board of Directors (or its
designee) and to devote Employee's best efforts to the business of Employer.
Employee shall be specifically obligated to work to maximize the success of
Employer's business throughout the world.
<PAGE>

                                   ARTICLE II
                               TERM OF EMPLOYMENT

         2.1 The term of Employee's employment at Employer shall continue unless
and until Employee's employment terminates pursuant to Article VI of this
Agreement.

                                   ARTICLE III
                                  COMPENSATION

         3.1 During the term of this Agreement, Employer shall pay to Employee
for services which Employee may render to Employer an annual salary to be
determined by the Employer in its sole discretion (subject to the terms of this
Agreement, with the initial Base Salary set forth in Appendix A) and subject to
periodic adjustment. For purposes of this Agreement, the term "Base Salary"
shall mean the annual salary referred to above, but shall exclude all
reimbursements for medical, professional, or transportation expenses, excess
group-term life insurance coverage, or other "fringe benefits." Employee's Base
Salary shall be paid in equal installments on Employer's regular payroll dates,
but shall be computed pro-rata in any partial year or other partial period of
employment. Employer shall also pay Employee an annual bonus (the "Bonus") to be
determined by the Board of Directors or its designee in its sole discretion and
subject to periodic adjustment. Employer shall withhold from all of Employee's
compensation, including without limitation the Base Salary and Bonus, such sums
as are required by federal, state and local laws, including, but not limited to,
federal, state, and local income taxes, FICA and Medicare, and such other sums
on which Employer and Employee may agree from time-to-time in writing.

         3.2 In addition to any compensation paid to Employee pursuant to
Section 3.1 of this Agreement, Employer shall provide Employee during the period
of Employee's employment with Employer with (A) benefits consistent with those
generally provided to similarly situated executives at Employer, (B)
reimbursement for professional license fees and continuing professional
education costs incurred by Employee; and (C) equipment (fax machine, printer,
computer, cell phone, PDA, copier and related accessories) and reimbursement for
related costs (internet connection fees, cell phone costs, office supplies,
phone/fax costs) to work in a home office (collectively, the "Benefits").

         3.3 Employee's Base Salary, Bonus, and Benefits are set forth in
Appendix "A" to this Agreement as may be amended from time-to-time at the sole
discretion of the Board of Directors or its designee, provided such amendments
are made in accordance with the terms of this Agreement.

         3.4 Upon the request of Employee, Employer shall loan Employee an
aggregate principal amount of up to US$100,000 (the "Loan"). The Loan shall
accrue

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<PAGE>

interest compounded annually at the lowest Applicable Federal Rate stated by the
Internal Revenue Service on the date of the Loan. The principal plus accrued
interest on the Loan shall be payable on the earlier to occur of (A) the date
three (3) years from the date of the Loan, or (B) unless the provisions of
Clause 6.4 and Exhibit B apply, the date one hundred twenty (120) days following
termination of Employee's employment with Employer. The Loan shall be a full
recourse obligation from Employee to Employer, as evidenced by this Agreement.
All unpaid principal and unpaid accrued interest of the Loan may be prepaid
without penalty, in whole or in part, at any time. Any prepayment of the Loan
will be credited first against accrued interest, then principal.

                                   ARTICLE IV
               SECRET, CONFIDENTIAL AND/OR PROPRIETARY INFORMATION

           4.1 Employee will hold for the benefit of Employer, its affiliates,
subsidiaries, related entities, and designees, and shall not disclose to any
person or entity other than Employer or persons or entities designated by
Employer, all secret, confidential or proprietary information, knowledge,
computer data and/or information, patents, trade secrets, customer identities,
marketing and other business methods, techniques, processes, practices,
procedures, plans and strategies regarding Employer, its subsidiaries and
affiliated corporations or business enterprises, and their customers obtained by
Employee during Employee's employment with Employer, and any other secret,
confidential or proprietary information pertaining to Employer, its subsidiaries
and affiliated corporations or business enterprises, and their customers, during
the term of this Agreement and at all times after Employee's termination of
employment with Employer, unless the Board in writing consents to the contrary.

           4.2 Immediately upon notice of termination of employment, Employee
shall give to Employer the originals and all copies of all documents,
correspondence, memoranda, records, notes, manuals, materials, customer and
prospective customer lists and information, including without limitation
computer data, and other things relating, either directly or indirectly, to
Employer's business, including, but not limited to, secret, confidential or
proprietary information, in Employee's possession, custody or control, unless
otherwise agreed to by the Board in writing.

                                    ARTICLE V
                       AGREEMENT NOT TO SOLICIT EMPLOYEES

           5.1 In recognition and consideration of Employee's employment,
compensation and benefits, the training in and information regarding Employer's
business which Employer will give Employee, Employee's introduction to
Employer's customers, and the carefully guarded methods of doing business which
Employer utilizes and deems crucial to the success of its business, Employee
shall not during the term of this Agreement, and for a period of one (1) year
following the termination of Employee's employment by Employer, regardless of
the reason for termination, either directly or

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<PAGE>

indirectly, solicit the employment of any person who was employed by the
Employer or any of its affiliates on a full time basis at the time of Employee's
termination of employment, unless such person (a) was involuntarily discharged
by the Employer or such affiliate or (b) voluntarily terminated his or her
relationship with Employer or such affiliate prior to contact by Employee.

           5.2 Employee acknowledges that any breach of any obligation contained
in this Article and the preceding Article is not adequately compensable by
monetary damages, and Employee agrees that any such breach shall cause Employer
irreparable harm for which Employer shall be entitled to a temporary restraining
order and preliminary injunction without prior notice to Employee. Any and all
attorneys' fees, costs and expenses incurred by Employer in enforcing the terms
of this Article and the preceding Article shall be reimbursed to Employer by
Employee.

           5.3 In the event that any body of competent jurisdiction shall
determine that any of the restrictive covenants in this Article V is inequitably
broad, it is the intention and agreement of the parties that the decision-maker
shall equitably adjust the obligations of Employee under this Agreement rather
than entirely eliminate any such obligations. In the event that the
decision-maker shall equitably adjust or eliminate any of the restrictive
covenants in this Agreement, all other aspects of this Agreement shall remain in
full force and effect.

           5.4 The enumeration of remedies in this Agreement to which Employer
is entitled does not limit any rights Employer otherwise possesses, including,
but not limited to, the right to monetary damages.

                                   ARTICLE VI
                                   TERMINATION

           6.1 This Agreement and Employee's employment with Employer may be
terminated by Employer only upon the occurrence of any of the following events
(each of which shall constitute "Reasonable Cause" for termination):

                  (i) Employee commits any act of gross negligence, fraud,
dishonesty, or willful violation of any law or material violation of any
significant written policy of Employer, that causes material harm to Employer;

                  (ii) Conviction of the Employee of (a) a felony or (b) a
serious crime involving moral turpitude;

                  (iii) Willful or gross failure by Employee to substantially
perform the duties reasonably assigned to Employee, or any intentional refusal
without compelling reason by Employee to discharge Employee's job
responsibilities and/or respond to Employer's legitimate job-related requests,
insofar as such duties, responsibilities and/or requests do not contravene law
and are consistent with Employee's position(s);

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<PAGE>

                  (iv) Failure to cooperate in an investigation conducted and/or
undertaken by Employer or a governmental agency which has reasonable and
legitimate objectives; and

                  (v) Any act of intentional conflict of interest by Employee
related to Employer which results in material economic and/or other material
damage to Employer;

provided, however, that Employee shall not be deemed to have been terminated for
Reasonable Cause unless and until there shall have been delivered to Employee a
Notice of Termination (as defined below) and a resolution adopted by the Board
of Directors of Employer at a meeting held for such purpose (after reasonable
notice to Employee and an opportunity for Employee, together with Employee's
counsel, to be heard before the Board), finding that, in the good faith opinion
of the Board, Employee has engaged in the conduct set forth above and specifying
the particulars thereof in reasonable detail. "Notice of Termination" shall mean
a written notice of termination of Employee's employment with Employer, which
notice indicates the specific termination provision in this Section 6.1 relied
upon and which sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for such termination.

           6.2 This Agreement and Employee's employment with Employer may be
terminated by Employee at any time for any or no reason upon prior written
notice to Employer. This Agreement shall also terminate in the event of the
death or incapacitating disability of Employee. This provision, by itself, shall
not be interpreted to effect the eligibility, if any, of Employee under any
disability policy maintained by Employer under which Employee is entitled to
disability benefits. Subject to the provisions of Subsection 6.4 and Appendix B
(with respect to termination by Employee for Good Reason), termination of this
Agreement under this Subsection 6.2 shall excuse Employer from any and all
future payments of cash under this Agreement, provided, however, Employee (or a
personal representative) shall be entitled to all compensation and benefits
earned hereunder to the date of termination of employment.

           6.3 Subject to the provisions of Section 6.4 and Appendix B, this
Agreement and Employee's employment with Employer may be terminated by Employer
at any time upon one (1) month written notice to Employee without, Reasonable
Cause and at Employer's sole discretion.

           6.4 In the event that (1) this Agreement and/or Employee's employment
with Employer is terminated by Employer without Reasonable Cause, or (2)
Employee terminates this Agreement and/or Employee's employment with Employer
for Good Reason (as defined below), in any of those instances and only then
Employer shall pay Employee severance pay as set forth in the Schedule of
Severance Benefits attached hereto as Appendix "B." For purposes of this
Agreement, "Good Reason" shall mean the occurrence of any of the following
events or conditions: (A) a material adverse change in, or the assignment to
Employee of any duties or responsibilities which are inconsistent with,
Employee's status, title, position or responsibilities (including

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<PAGE>

reporting responsibilities) with Employer, (B) a reduction in Employee's salary
and/or benefits except to the extent such reduction is comparable to percentage
reductions in salary and/or benefits of all other employees of Employer, or any
failure to pay Employee any compensation or benefits to which Employee is
entitled within five (5) days of the date due, (C) Employer or its successor
requires Employee to relocate beyond a twenty-five (25) mile radius from
Employee's current residence, (D) any purported termination of this Agreement or
Employee's employment by Employer without grounds therefor or any material
breach by Employer of any provision of this Agreement, or (E) the failure of
Employer to obtain an agreement in writing delivered to Employee, satisfactory
to the Employee, from any successor or assignee of the Employer to assume and
agree to perform this Agreement.

                                   ARTICLE VII
                               GENERAL PROVISIONS

           7.1 Employee represents and warrants that Employee is not currently
subject to any restrictive covenant, any other restriction on employment, or any
confidentiality agreement with any prior employer or other party except as
already disclosed to Employer. Employee shall indemnify and hold Employer
harmless with respect to any and all claims, causes of action, damages and
liability of any kind whatsoever, including reasonable attorneys' fees and
costs, successfully brought by a third-party arising out of any acts taken by
Employee which violate any such restrictive covenant, other restriction on
employment, or confidentiality agreement. Employee shall be entitled to
indemnification, in accordance with the applicable provisions of Employer's
charter documents and indemnification agreement, against all expense, liability
and loss (including reasonable attorneys' fees and settlement payments) that
Employee may incur by reason of any action, suit or proceeding arising from or
relating to the performance of Employee's duties as an officer or director of
Employer or any affiliate.

           7.2 All material furnished to Employee by Employer during the course
of employment shall remain the property of Employer and shall be returned by
Employee to Employer at any time upon demand and upon termination of employment.

           7.3 Neither this Agreement nor any right or interest hereunder shall
be assignable by Employee without Employer's prior written consent.

           7.4 This Agreement shall be deemed automatically assigned by Employer
(and assumed by the successor) in the event of any sale, transfer, merger,
and/or similar disposition of its business (whether direct or indirect and
whether by purchase, lease, merger, consolidation, liquidation or otherwise),
and shall inure to the benefit of and bind Employer's successors and assigns.
For purposes of this Agreement, the term "Employer" shall include the party
acquiring the business/assets of Employer upon any sale, transfer, merger,
and/or similar disposition of its business.

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<PAGE>

           7.5 The validity, interpretation, performance and enforcement of this
Agreement shall be governed by and construed in accordance with the laws of the
State of California. All actions brought under Paragraph 7.10 or otherwise shall
be brought and occur in Palo Alto, California. The parties agree that service of
notice of arbitration or any other process may be made as set forth in Paragraph
7.8 below and that service so made shall be as effective as if personally made.

           7.6 The waiver by a party of any breach by the other party of any
provision of this Agreement shall not operate or be construed as a waiver of any
other breach by the other party.

           7.7 In the event that any provision of this Agreement is determined
by any body of competent jurisdiction to be unenforceable, illegal or contrary
to public policy, that body shall modify such provision to conform to public
policy, or to interpret it in such a way as to render it enforceable and legal,
in accordance with the intent of the parties as expressed herein. In the event
that a body of competent jurisdiction decides that any provision of this
Agreement is unenforceable, illegal or contrary to public policy and cannot be
reformed, only such provision shall be affected and all other provisions of this
Agreement shall remain in full force and effect.

           7.8 Any notice given to Employee pursuant to this Agreement shall be
sufficiently given if sent to Employee by registered or certified mail addressed
to Employee's address set forth at the beginning of this Agreement or such other
address as Employee shall have designated in writing to Employer. Any notice
given to Employer pursuant to this Agreement shall be sufficiently given if sent
to Employer by registered or certified mail to Employer's address set forth at
the beginning of this Agreement or such other address as Employer shall have
designated in writing to Employee.

           7.9 This Agreement and Appendices "A" and "B" set forth the entire
understanding of the parties and the agreement they desire to reach relating to
the subject matter hereof. This Agreement supersedes all prior agreements of the
parties hereto on the subject matter hereof (excluding confidentiality and
invention agreements between or effecting the parties) including, but not
limited to, any prior negotiations, correspondence, agreements, proposals, or
understandings. Negotiations, correspondence, agreements, proposals, or
understandings not expressly incorporated into this Agreement shall be deemed to
be of no force or effect. There are no representations, warranties, or
agreements, whether express or implied, or oral or written, with respect to the
subject matter hereof, except as set forth herein. No modification, waiver or
agreement of termination of this Agreement shall be binding upon either party
unless made in writing and signed for or on behalf of each party. Any such
signature of the Employer must be that of the representative duly authorized by
the Board. In the event of any inconsistency between this Agreement and any
benefit plan of the Employer, the language of this Agreement shall control both
documents. This Agreement may be signed in counterparts.

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<PAGE>

           7.10 Any controversy or claim arising out of or relating to this
Agreement, or breach thereof, shall be finally settled under the Arbitration
Rules and Procedures of JAMS/Endispute ("JAMS"), as modified below, by a neutral
arbitrator appointed by the JAMS in accordance with said rules.

                     (a) the arbitration shall be conducted before one (1)
arbitrator selected by mutual agreement of the Employer and Employee; if no
agreement is made within ten (10) business days from the date a demand for
arbitration was filed with the JAMS, then the arbitrator shall be selected
according to the JAMS rules;

                     (b) the arbitration hearing shall take place no later than
thirty (30) days following the JAMS' notice of the selection of an arbitrator;

                     (c) the arbitration hearing shall last no more than one
day;

                     (d) no discovery shall be permitted, including depositions,
interrogatories, requests for admissions, or production of documents, except in
the case of extreme hardship as determined by the arbitrator;

                     (e) the arbitrator shall give his/her decision at the
conclusion of the arbitration proceeding if possible, but no later than two
business days following the conclusion of the proceeding;

                     (f) any arbitration proceeding under this Agreement shall
(1) be conducted in such a manner that the proprietary or confidential
information of the Employer remains protected, and (2) occur in Raleigh, North
Carolina, and

                     (g) the decision of the arbitrator is final, binding,
non-reviewable, and non-appealable, and may be entered as a final judgment in
any court having jurisdiction.

           7.11 Employee shall not be required to mitigate the amount of any
payment contemplated by this Agreement (whether by seeking new employment or in
any other manner), nor shall any such payment be reduced by any earnings that
Employee may receive from any other sources.

           7.12 In the event that Employee is required to institute action
against Employer to enforce this Agreement or any term of provision thereof, and
such action results in a finding in whole or in part in favor of Employee, then
Employer hereby agrees Employer shall pay immediately all legal fees and other
costs reasonably incurred by Employee in implementing and maintaining such
action.

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<PAGE>

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

"EMPLOYER"

By:      _________________________
         Lawrance Brown, Chairman of
         The Compensation Committee of
         The Board of Directors

"EMPLOYEE"

____________________
Robert P. Ruscher

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<PAGE>

                                  APPENDIX "A"

Employee's Base Salary and Benefits shall be as set forth in Paragraphs "A"
through "G" below:

           A. Base Salary. Employer shall pay Employee an initial annual salary
in the gross amount of Two Hundred Thirty Thousand Dollars ($230,000.00) per
annum as Employee's base salary ("Base Salary"). The Base Salary may be changed
from time-to-time in accordance with the normal business practices of the
Employer, however, in no instance shall the Base Salary be decreased below the
initial annual salary set forth above during the term of this Agreement except
for decreases to Base Salary applied on a equal percentage basis to all
employees of the Employer.

           B. Bonus. In addition to the Base Salary and in the sole discretion
of the Board of Directors (or its designee), the Employee may be given an annual
bonus (the "Bonus"). If Employee has not been discharged for Reasonable Cause as
that term is defined in Article VI of this Agreement, then Employer shall pay to
Employee on or before ninety (90) days following December 31 of the relevant
year the Bonus, if any, as determined by the Employer.

           C. Paid Vacation. During each twelve (12) month calendar period of
Employee's employment, Employee shall be entitled to twenty (20) days of paid
vacation (in addition to customary holidays, sick days and personal days in
accordance with the Employer's normal personnel policies). Unused vacation days
during any calendar year can be carried forward to the next calendar year.

           D. Other Employee Benefits. Employee shall be entitled to participate
and receive any and all other benefits that are generally available to other
executives of Employer pursuant to any benefit programs existing during the term
of this Agreement, including, among other things, participation in group life
insurance, hospital, vision, disability, dental, medical or other group health
and accident benefit plans. In addition, Employee shall be entitled to
participate in all 401(k), bonus, profit sharing, pension or retirement plans as
may be in existence during the term of this Agreement in accordance with their
respective terms and provisions; provided, however, that to the extent
participation or the amount of participation is in the discretion of the Board
or any committee thereof, then Employee's participation shall likewise be solely
in such discretion.

           E. Benefits Solely from General Assets. The benefits provided
hereunder shall be paid solely from the general assets of Employer. Nothing
herein shall be construed to require Employer to maintain any fund or segregate
any amount for the benefit of Employee, and neither Employee nor any other
person shall have any claim against, right to, or security or other interest in,
any fund, account or asset of Employer from which any payment under this
Agreement may be made.

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<PAGE>

           F. Withholding for Taxes. Employer makes no commitment that any
amounts paid to or for the benefit of Employee under Paragraphs A through E
above will be excluded from Employee's gross income for federal, state, and
local income tax purposes, or that any other federal, state, or local tax
treatment will apply to such payments or be available to Employee. Employer may
make such provisions as it deems appropriate for the withholding of any taxes
which Employer determines it is required to withhold in connection with this
Agreement and the payments contemplated hereby.

           G. Effect on Computation of Benefits. Any reimbursement of expenses
payable under this Agreement shall not be deemed salary or other compensation to
Employee for purposes of computing benefits to which Employee may be entitled
under any 401(k) plan, bonus, deferred compensation plan, or other arrangement
of Employer for the benefit of its employees.

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<PAGE>

                                  APPENDIX "B"

                         SCHEDULE OF SEVERANCE BENEFITS

                     A. Entitlement to Severance Benefit. In the event that the
provisions of Subsection 6.4 apply, then in addition to any other benefits
payable under this Agreement the Employer shall provide to the Employee the
severance benefits set forth in Sections B, C and D below. No such severance
benefits shall be payable under the Agreement for the Employee's termination of
employment for any other reason, including, but not limited to, voluntary
termination of employment by Employee (for other than Good Reason) or
termination of employment by Employer for Reasonable Cause, death or
incapacitating disability.

                     B. Term of Benefits. The Employer shall provide to Employee
the severance benefits described in Paragraph C below commencing on termination
of the Employee's employment with Employer or termination of this Agreement that
qualifies under the terms of Paragraph 6.4 of this Agreement for severance
benefits, with such severance benefits continuing for a period of twelve (12)
months (the "Benefit Period").

                     C. Amount of Benefits. Severance benefits shall consist of
the following:

                               1. Base. The Employer shall pay to Employee a
monthly cash payment in an amount that is equivalent to one-twelfth of the Base
Salary of Employee that is then in effect (or if a new, higher Base Salary has
been set by the Employer in a signed writing given to employee for an upcoming
year, or if the Base Salary for any period during the prior 24 month period was
greater, than by that higher Base Salary). The monthly cash payment above shall
also include an amount that is equivalent to one-twelfth of any cash Bonus that
was paid to Employee for the last full calendar year prior to the termination of
employment. Payment shall commence in the first regular pay period following the
date of termination. The monthly cash payments may be made monthly or otherwise
(e.g., on a two week or semi-monthly cycle) under the then existing regular
payroll payments dates of Employer.

                               2. Non-Compensation Benefits. The Employer shall
continue to cover the Employee and Employee's dependents for the Benefit Period
under all benefit plans covering other employees in positions similar to that of
Employee. Employee's and Employee's dependents continued participation in such
plans shall be at no greater cost to Employee than the cost Employee bore for
such participation immediately prior to the date of termination.

                                          (a) Legal Continuation Restrictions.
If Employee's participation in any such plan or program is barred or limited,
Employer shall arrange upon comparable terms, and at no greater cost to Employee
than the cost Employee bore for such plans and programs prior to the date of
termination, to provide Employee and

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<PAGE>

Employee's dependents with benefits substantially similar to those which
Employee was entitled to receive under any such plan or program

                                          (b) COBRA Continuation. Any benefits
provided under this Paragraph 2 following the Employee's termination of
employment shall count against the continuation period the Employee is otherwise
entitled to under the Consolidated Omnibus Budget Reconciliation Act of 1985, as
amended ("COBRA"), or any similar federal or state statute, as a result of the
termination of employment.

                               3. Employee Loans, Advances, Equipment. All
outstanding loans and advances from Employer to Employee shall be forgiven and
cancelled in their entirety. Employee shall have the option to purchase at book
value (or fair market value if lower) all home office equipment (computers,
printer, copier, fax machine, PDA, cell phone and related accessories) used by
Employee.

                  D. Stock Option Vesting. In the event that the provisions of
Subsection 6.4 apply, the shares subject to each stock option for the Employer's
(or its affiliate or successor) Common Stock held by Employee shall become fully
and immediately vested. Each stock option shall be exercisable to the extent so
vested in accordance with the provisions of the Option Agreement and related
stock option plan pursuant to which such stock option was granted.

                  E. Consulting Relationship. In the event that Employee's
employment with Employer and/or this Agreement is terminated for any reason
other than for Reasonable Cause (by Employer) or Employee's death or disability,
Employer (or its successor) and Employee (to the extent Employee is so allowed
by any new employer of Employee) shall immediately enter into a consulting
arrangement (the "Consulting Agreement") pursuant to which (a) to the extent not
already vested pursuant to Clause D above, all options granted to Employee by
Employer (or any affiliate or successor entity) shall continue to vest and be
exercisable in accordance with the terms thereof (without any interruption or
termination in Employee's continuous status as an employee or consultant); and
(b) Employee shall agree to provide up to an average of 16 hours per month of
consulting services to Employer as reasonably requested by Employer during the
term of the Consulting Agreement in order to ensure the smooth transition of
Employee's duties and responsibilities. Employer shall pay Employee for such
services monthly at an hourly rate equal to (1) the Base Salary of Employee that
is then in effect (or if a new, higher Base Salary has been set by the Employer
for an upcoming year, or if the Base Salary for any period during the prior 24
month period was greater, than by that higher Base Salary), (2) divided by
1350). The Consulting Agreement will terminate on the date twelve (12) months
from the date of such employment termination, unless terminated earlier by the
mutual written agreement of Employer and Employee. Employer agrees to reimburse
Employee for all reasonable out-of-pocket expenses incurred by Employee in
providing services to Employer at the request of Employer pursuant to the
Consulting Agreement.

                                       13{*} The  redacted  portions  indicated  by  this  symbol  are the  subject  of a
    confidential  treatment  request  and have been  filed  separately  with the
    Securities and Exchange Commission.

                                 EXECUTION COPY

               MASTER ENVIRONMENTAL MANAGEMENT SERVICES AGREEMENT

         THIS  AGREEMENT  is made and  entered  into on this day of April  24th,
2000,  effective as of the 1st day of January,  2000, by and between Atlanta Gas
Light  Company  ("AGLC"),   a  Georgia   corporation,   ThermoRetec   Consulting
Corporation ("ThermoRetec"),  a Delaware Corporation, and solely for purposes of
Article 6 hereof, ThermoRetec Corp., a Delaware corporation.

                                    RECITALS

         WHEREAS,  AGLC,  on behalf of itself  and as agent for  certain  of its
affiliates,  manages the environmental  investigation and remediation of certain
properties where manufactured gas plants ("MGPs") formerly operated and at which
certain investigation and clean-up activities ("Remediation Activities") are now
or may be necessary or appropriate; and

         WHEREAS,  AGLC desires to retain  ThermoRetec to perform  environmental
management services at such sites and other duties as assigned by AGLC from time
to  time,  and   ThermoRetec  is  willing  to  provide  such  services  as  more
specifically described below; and

         WHEREAS,  the parties  acknowledge  that their  mutual  objective is to
perform, or cause to be performed,  such environmental  management services in a
sound and cost-effective  manner that is in compliance with all applicable legal
requirements  and that  reduces  or  eliminates  the need for such  services  as
expeditiously as practicable; and

         WHEREAS,  AGLC has  required  as a  condition  to  entering  into  this
Agreement  that  ThermoRetec  Corp. be a party to this Agreement for the limited
purpose of providing  indemnification  under  Article 6 below,  and  ThermoRetec
Corp. has agreed to be a party to this Agreement solely for such purpose;

         NOW  THEREFORE,  in  consideration  of the  premises  and the  material
covenants  and  agreements  hereinafter  set forth,  and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, and
intending to be legally bound hereby, AGLC and ThermoRetec agree as follows:

1.  Term.  The  effective  date of this  Agreement  shall  be  January  1,  2000
("Effective Date").  Subject to the early termination as set forth in Section 8,
this  Agreement  shall  expire on the close of business on January 31, 2005 (the
"Initial Term"), or such later date as the parties may agree; provided, however,
that upon sixty (60) days prior written notice, AGLC may extend the term of this
Agreement as reasonably necessary to complete the Remediation Activities.

2.       Scope of Services.

         2.1  The  Services.  Subject  to  the  terms  and  conditions  of  this
Agreement, ThermoRetec is being retained to provide the environmental management
services  ("Services")  as more  specifically  set forth in  Exhibit 1  attached
hereto for the real properties  listed in Exhibit 2 attached  hereto  ("Sites"),
and  ThermoRetec  hereby agrees to perform such Services.  Additional  Sites and
Services may be added to or removed from Exhibits 1 or 2 (as  applicable) at any
time by  mutual  agreement  of the  parties.  In the event  that  such  Sites or
Services  are added or deleted,  the Annual  Budget (as defined in Section  3.1)
will be adjusted by a mutually  agreed upon amount.  AGLC agrees to use its best
efforts to ensure  completeness of, access to, and availability of files,  data,
records,  personnel  and  systems  for the  performance  by  ThermoRetec  of the
Services.

         2.2  Change  Orders.  AGLC  reserves  the right,  by written  notice to
ThermoRetec,  to make  changes in the  Services  so long as such  changes do not
materially expand the scope of the Services described herein.  ThermoRetec shall
proceed with the Services, as changed, immediately after receipt of said notice.
If such changes cause a material  increase or decrease in the cost of performing
the  Services or time of  performance,  an  equitable  adjustment  in the Annual
Budget and/or  schedule shall be made by AGLC within 30 days after the giving of
such notice.  If the parties cannot agree to the equitable  adjustment to either
the price and/or the schedule, then the party seeking relief may do so under the
provisions of Article 16.

         2.3      Additional  Services.  (a) AGLC may from time to time during
the term of this  Agreement  request that  ThermoRetec  perform a service that
is  outside  the scope of the  Services  ("Additional  Services").  Upon
receipt of such a request from AGLC, ThermoRetec shall provide AGLC with:

         (i)      a written description of the work ThermoRetec anticipates
                  performing in connection with such Additional Services, if
                  any;

         (ii)     a schedule for commencing and completing such Additional
                  Services;

         (iii)    ThermoRetec's   prospective   charges   for  such   Additional
                  Services,  including a detailed  breakdown  of any  applicable
                  charges,  and any proposed  additional  or modified  terms and
                  conditions; and

         (iv)     an estimate of the human resources necessary to provide the
                  Additional Services.

         (b)  ThermoRetec  shall not begin  performing any  Additional  Services
until AGLC has provided ThermoRetec with authorization to perform the Additional
Services.  If AGLC  authorizes  ThermoRetec to provide the Additional  Services,
then the  parties  shall  execute a change  order,  which shall  incorporate  by
reference  the terms of this  Agreement and set forth the  additional  terms and
conditions applicable to the provision of such Additional Services.

         2.4 MGP  Strategic  Plan.  Prior to the date  hereof,  ThermoRetec  has
prepared and  submitted  to AGLC for its review a  comprehensive  MGP  strategic
plan.  Within  five  business  days  after the date on which this  Agreement  is
entered into, the parties will mutually agree upon a comprehensive MGP strategic
plan (the "Plan"), which shall describe (A) the overall goals of the Services to
be provided by ThermoRetec  hereunder,  (B) a schedule for the completion of the
Services  on a Site  by  Site  basis,  (C) a  software  tool  for  collaborative
communications  between the parties,  (D) a master  schedule and detailed budget
for the period from  January 1, 2000 through  June 30, 2000 (the  "Initial  Year
Budget"), and (E) a plan for communications with external  stakeholders.  Except
as otherwise  agreed by AGLC,  ThermoRetec will comply with the schedule for the
completion  of the Services and the plan for  communications  with  stakeholders
contained in the Plan.

3.       Pricing and Payment Terms.

         3.1  Annual  Budget.  At least 90 days  prior to the end of the  period
covered by the Initial Year Budget and at least 90 days prior to the end of each
12-month period  thereafter,  ThermoRetec  will submit to AGLC a detailed budget
for the Services for such upcoming  12-month  period,  which shall reflect costs
which are  anticipated  to be incurred for  performance  of the Services at each
Site and for any Additional  Services  requested by AGLC. Each budget shall also
include all assumptions upon which ThermoRetec relies. Within 30 days of receipt
of the budget,  AGLC shall review and comment on the same, and ThermoRetec shall
promptly  submit  a  revised  draft  of the  budget  to  AGLC.  If the  parties'
respective  Program  Directors (as defined in Section 5.1) cannot agree upon the
budget within 60 days of AGLC's  receipt  thereof,  then any  unresolved  issues
shall be submitted to the  Management  Committee (as defined in Section 5.3) for
resolution.  The budget, after modifications are made thereto and after approval
thereof by AGLC and  acceptance by  ThermoRetec,  shall  constitute  the "Annual
Budget".  The Annual  Budget  shall not be modified  unless a Site or Service is
added or deleted  pursuant to Section 2, a change order for Additional  Services
(as described in Section 2.3) is issued or a material  change in Site conditions
or Service requirements has occurred.  All approved  modifications to the Annual
Budget shall be documented in the form of a change order.

         3.2 Compensation.  In consideration for ThermoRetec's prompt,  faithful
and  complete  performance  of this  Agreement to the  satisfaction  of AGLC and
subject to the conditions precedent to and as described in this Agreement,  AGLC
will pay or reimburse ThermoRetec an amount equal to the total of (a) the actual
costs  ("Actual  Costs")  of the  Services  as  defined in Exhibit 4 and (b) the
Aggregate  Performance  Fees  described  in Exhibit 3. Actual Costs shall be the
actual costs incurred by  ThermoRetec  plus a provision for indirect costs based
on the provisional  burden rates approved by the Gas Research  Institute ("GRI")
and  confirmed by audit by GRI at the end of each fiscal year.  If GRI no longer
provides such audit of ThermoRetec's indirect costs,  ThermoRetec shall continue
to use the GRI-established  cost principles to develop provisional rates for the
following  fiscal  year.  Such rates are subject to audit by a firm of certified
public accountants designated by ThermoRetec and acceptable to AGLC. Any cost of
said provisional rate review or audit will be a ThermoRetec expense. The initial
performance  fee for the AGLC-Lead  Sites (as  identified on Exhibit 1) has been
estimated and shall be set forth in the Initial Year Budget.

         3.3      Description  of Actual Costs.  Actual Costs consist  solely of
                  the types of costs incurred in the performance of the Services
                  that  meet  the  definitions  set  forth  in  Exhibit  4.  The
                  following  are  not  Actual  Costs:(A)  costs,   services  and
                  expenses   generated   by  any  of   ThermoRetec's   officers,
                  supervisory  personnel or employees  related to legal  (except
                  for negotiation of agreements with subcontractors to perform a
                  portion of the Services), labor relations,  insurance and tax,
                  and all  other  related  expenses  required  to  maintain  and
                  operate   ThermoRetec's  offices  other  than  any  costs  and
                  expenses for  operating any field office  directly  associated
                  with  one or  more  Sites.  Costs  and  expenses  incurred  by
                  ThermoRetec  officers  related to the duties of the Management
                  Committee are considered Actual Costs;

                  (B)      costs  incurred  as a result of the  negligence  or
                           willful  misconduct  of  ThermoRetec and/or its
                           agents, subcontractors, suppliers or employees; and

                  (C) any other costs not  directly  related to, and  reasonably
                  and necessarily incurred in ThermoRetec's  performance of, the
                  Services.

         3.4 Invoices; Payment.  ThermoRetec shall submit to AGLC within 20 days
after the end of each calendar month an invoice for the Actual Costs incurred in
the  previous  month.  AGLC shall  reimburse  ThermoRetec  for the amount of the
monthly  invoice  (except for any  Disputed  Items (as  defined in Section  3.6)
reflected thereon), plus the corresponding  ThermoRetec fee earned in accordance
with Exhibit 3 within 30 days of receipt. In addition to the monthly invoice and
under separate cover, ThermoRetec shall provide AGLC with a certified listing of
all ThermoRetec  internal labor costs and third-party vendor invoices (Labor and
ODC  Reports),  together  with a summary  of the  Actual  Costs  for each  Site.
Undisputed  invoiced  amounts not paid within 30 days after receipt shall accrue
interest at the rate of 1% per month on any unpaid  balance.  ThermoRetec  shall
have the right to stop  work if  undisputed  amounts  on  invoices  are not paid
within 60 days from the date of receipt by AGLC.

         3.5  Subcontractor   Waivers.   To  the  extent   ThermoRetec   engages
subcontractors  to perform  Services,  as a condition  of payment of any monthly
invoice  reflecting  final  payment  by  ThermoRetec  to  such   subcontractors,
ThermoRetec shall furnish a general release of all claims and final lien waivers
from such  subcontractor  to AGLC in such form and  substance  as is  reasonably
acceptable to AGLC.

         3.6 Disputed Amounts.  AGLC shall be entitled to dispute any item on an
invoice that it believes  deviates from the Services  which  ThermoRetec  was to
perform,  the Annual Budget or the requirements of this Agreement  (collectively
"Disputed  Items").  The disputed amount will be deducted from the invoice,  and
the undisputed  portions of the invoice will be paid in accordance  with Section
3.4.  The  Disputed  Items  shall  be  subject  to  resolution  pursuant  to the
procedures described in Section 16.1.

         3.7  Setoff.  Payments  otherwise  due  ThermoRetec  from  AGLC  may be
withheld  by AGLC,  without  payment of  interest,  on account of  Services  not
performed, defective Services performed and not remedied by ThermoRetec,  unpaid
labor or  materials  bills,  or unpaid  claims of any kind  agreed to be paid by
ThermoRetec. ThermoRetec agrees to defend, indemnify and hold AGLC harmless from
any claims,  demands,  liabilities  and damages  arising from any such  withheld
payment.  If and when the cause or causes for withholding  payments are remedied
or removed  without cost to AGLC, and  satisfactory  evidence of such remedy has
been  presented to AGLC,  the withheld  payment will be promptly made by AGLC to
ThermoRetec.  If  ThermoRetec  fails to remedy  such cause  within 30 days after
written  notice  from AGLC,  AGLC may remedy the cause and deduct the cost of it
from the amount due ThermoRetec; provided, however, AGLC is not obligated to pay
any bills of, or claims against  ThermoRetec from payments withheld,  but may do
so at its sole discretion.

         3.8 Fees  Beyond the Initial  Term.  If the term of this  Agreement  is
extended beyond the Initial Term, AGLC shall, unless otherwise specified in this
Agreement, continue to pay ThermoRetec in accordance with the provisions of this
Article 3 or as the parties may otherwise agree.

4.       Performance Standards, Warranties and Responsibilities.

         4.1  Time.  Time  is  of  the  essence.   In  particular,   ThermoRetec
acknowledges that corrective action plans must be approved for each of the Sites
by January 5, 2001, and that soil  remediation  must be completed at each of the
Sites by January 5, 2005.  ThermoRetec  shall  perform  all  Services  in strict
accordance with the requirements,  technical  specifications and, except for any
delays caused by AGLC,  schedules set forth in,  contemplated by or arising from
this  Agreement,  the Plan, and any  applicable  Governmental  Requirements  and
Orders (as  defined  in Section  4.4).  To the  extent  applicable,  ThermoRetec
acknowledges  and agrees that the timing of the  performance  of Services may be
dictated by the terms of Governmental  Requirements and Orders,  and ThermoRetec
agrees  to  obtain  a copy of all  such  Governmental  Requirements  and  Orders
applicable to the Sites and to comply with all deadlines  and/or other  schedule
requirements  set forth  therein.  If  ThermoRetec  believes that AGLC's acts or
omissions are causing or are likely to cause ThermoRetec to fail or be unable to
perform the Services in accordance with this Agreement, it shall promptly notify
AGLC in writing of such fact,  which notice shall state the acts or omissions of
AGLC which are or are likely to cause such failure.

         4.2 Technical Skills. ThermoRetec understands and acknowledges that the
Services performed  hereunder may involve hazardous or toxic substances,  wastes
and laws,  regulations  and  government  agency  policy and  guidance  documents
related  thereto.  ThermoRetec  represents and warrants that it is  technically,
physically,  financially  and  legally  ready,  willing  and able to perform the
Services  hereunder  and that it is familiar  with and  knowledgeable  about the
applicable laws, regulations and government agency policy and guidance documents
to the extent necessary to carry out its duties in a professional,  complete and
competent manner and in accordance with such applicable laws,  regulations,  and
government agency policy and guidance documents.

         4.3 Authority.  Each party hereby  represents and warrants to the other
party as follows (subject,  in the case of AGLC, to the approval of the Board of
Directors of AGL Resources Inc.):

                  (A)      that it has all requisite corporate power and
                           authority to enter into, and fully perform pursuant
                           to, this Agreement;

                  (B)      that the execution,  delivery and performance of this
                           Agreement  have been duly and properly  authorized by
                           all requisite corporate action on its part; and

                  (C) that this  Agreement  has been duly executed and delivered
by such party.

         4.4 Applicable Law. ThermoRetec warrants that all Services shall comply
with all  applicable  federal,  state and local laws,  regulations,  ordinances,
orders,  codes,  standards,  permits and licenses,  in each case as the same are
amended from time to time  (collectively,  the  "Governmental  Requirements  and
Orders").  ThermoRetec  agrees to obtain all  permits,  consents  and  approvals
necessary  or  appropriate  to  perform  the  Services  in  compliance  with the
Governmental  Requirements  and Orders,  except for those permits,  consents and
approvals AGLC or its affiliates are  specifically  required to obtain by virtue
of the terms of this Agreement or by Governmental  Requirements and Orders,  and
that if any requests for such permits,  consents or approvals are denied, to use
its best efforts,  after further consultation with AGLC, to obtain such permits,
consents or approvals.

         4.5 Governmental Orders. ThermoRetec expressly acknowledges, agrees and
warrants  to comply with the terms of any  specific  consent  order,  unilateral
order,  governmental  order,  judicial  decree,  permit  or  other  governmental
directive  pursuant to which AGLC is  contracting  for the  Services  hereunder,
including  that certain  Environmental  Response Cost  Recovery  Rider which was
initially adopted by the Georgia Public Service  Commission on September 1, 1992
(as amended) (the "Rider").

         4.6  Engineering  Skills.   ThermoRetec   warrants  that  all  Services
performed  hereunder  shall be (A)  conducted  in a manner  consistent  with the
generally accepted level of care and skill ordinarily  exercised by professional
engineers,  remediation contractors and other professionals  performing services
of a  similar  nature,  taking  into  account  standards,  technology,  laws and
requirements  existing  at the time the  Services  are  performed,  (B)  safely,
lawfully,  timely  and  properly  performed,  and  (C) in  conformity  with  the
requirements of this Agreement.

         4.7  Reliance.  ThermoRetec  acknowledges  and agrees  that (A) AGLC is
relying  upon  ThermoRetec's  special  and unique  abilities  and the  accuracy,
competence  and  completeness  of  ThermoRetec's  Services  and (B) the Services
performed  by  ThermoRetec  will be relied upon by AGLC to satisfy  Governmental
Requirements and Orders.

         4.8 Records.  To the extent the Services  performed require  laboratory
analysis,   sampling  or  field  services  of  any  kind,  ThermoRetec  and  its
subcontractors shall maintain complete copies of records of the chain of custody
and control of all hazardous and/or waste materials handled,  transported and/or
disposed  of as a result of  ThermoRetec's  and its  subcontractors'  activities
under this Agreement,  and ThermoRetec shall deliver all such records to AGLC in
accordance with instructions from AGLC. ThermoRetec and its subcontractors shall
not be considered the generator of any pre-existing  waste, nor will ThermoRetec
or its  subcontractors  take title to any waste  produced as result of providing
Services under this  Agreement.  ThermoRetec  shall have authority to sign waste
manifests for any materials removed from a Site as agent for AGLC.

         4.9 Hazardous  Risks.  ThermoRetec  understands the currently known and
potentially  hazardous  risks,  if any,  which are or may be  presented to human
beings,  property and the environment by potentially  hazardous substances at or
near  the  Sites  and  agrees  that it shall  inform  its  officers,  directors,
employees and  subcontractors of the nature of such materials and the health and
environmental risk associated therewith.

         4.10  Governmental  Actions.  Any  condition  threatening  to adversely
affect quality assurance, attainment of schedules, or control of the performance
of the  Services  hereunder  shall be  immediately  brought to the  attention of
AGLC's Program Director (as defined in Section 5.1).  Additionally,  ThermoRetec
will notify AGLC if it becomes aware of any pending or  threatened  governmental
or third-party  action or delay related to the Services  performed  hereunder or
any of the Sites. Likewise,  AGLC will notify ThermoRetec if it becomes aware of
any pending or threatened governmental or third-party action or delay related to
the Services performed hereunder or the Sites.

         4.11 Resources.  ThermoRetec represents, warrants and covenants that it
has or will  obtain the  requisite  personnel,  competence,  skill and  physical
resources  to  perform  the  Services  and that it has and  shall  maintain  the
capability,   experience,   registrations,   licenses,  permits  and  government
approvals required to perform the Services in accordance with the timetables set
forth herein.

         4.12  Remedial  Actions.  If any of the Services fail to conform to the
requirements of this Agreement,  ThermoRetec  will, at its sole cost and expense
and without any additional charges to AGLC, promptly perform corrective Services
of the type  originally  required to be  performed as may be required to correct
such defects of which ThermoRetec is notified by AGLC in writing within one year
after the  completion of the specific  Services at issue or within one year from
notice to AGLC by a  governmental  authority,  whichever is later.  In addition,
upon receipt of a notice from AGLC that ThermoRetec has failed to perform any of
the Services in accordance  with this  Agreement,  ThermoRetec  shall as soon as
reasonably practicable:  (A) perform a root-cause analysis to identify the cause
of such  failure;  (B) provide  AGLC with a report  detailing  the cause of, and
procedure  for  correcting,  such  failure;  (C) correct such  failure;  and (D)
provide AGLC with assurance  reasonably  satisfactory  to AGLC that such failure
shall not recur after the procedure has been completed.

         4.13 Subcontracting. Prior to subcontracting any of the Services or the
Transfer  Assistance (as defined in Section 9), ThermoRetec shall notify AGLC of
the  proposed  subcontractor.  ThermoRetec  agrees  to  follow  agreed  upon bid
procedures with respect to awarding any project to a subcontractor  and to enter
into a written  subcontract in  substantially  the form of the appropriate  form
subcontract  agreement  attached  hereto  as  Exhibit  5, as such  forms  may be
modified from time to time by mutual  agreement of the parties.  AGLC shall,  at
its  sole  and  absolute  discretion,  have  the  right  by  written  notice  to
ThermoRetec to cause  ThermoRetec to terminate a  subcontractor.  Further,  each
subcontract  shall provide that  ThermoRetec may assign the subcontract to AGLC,
one of its  affiliates  or another  third party  designated by AGLC upon written
notice to the subcontractor,  and ThermoRetec shall, upon receipt of notice from
AGLC, assign any or all specified subcontracts to AGLC, one of its affiliates or
another  third  party   designated   by  AGLC.   AGLC  hereby   approves   those
subcontractors  identified  on Exhibit 6 to the extent that such  subcontractors
continue to provide the  services  described  in Exhibit 6 or  elsewhere in this
Agreement.  ThermoRetec  shall remain primarily liable and obligated to AGLC for
the timely and proper performance of all of its obligations  hereunder,  even if
such obligations are delegated to third party subcontractors, and for the proper
and timely performance and actions of any person or entity to which it delegates
or subcontracts any such obligations.

         4.14  Conduct of  Personnel.  While at the Site or  otherwise on AGLC's
premises, ThermoRetec shall, and shall cause ThermoRetec's employees, agents and
subcontractors to, (A) comply with the requests,  standard rules and regulations
and policies  and  procedures  of AGLC  regarding  safety and health,  security,
personal and professional  conduct (including the wearing of personal protective
equipment  and  adhering to site  regulations  and general  safety  practices or
procedures)  generally  applicable at such location,  and (B) otherwise  conduct
themselves in a businesslike manner. If AGLC determines that a particular member
of ThermoRetec's  staff is not conducting  himself or herself in accordance with
this Section 4.14, AGLC may notify ThermoRetec of such conduct.  Upon receipt of
such  notice,  ThermoRetec  shall  promptly  investigate  the  matter  and  take
appropriate action, which may include removing the individual from the provision
of the  Services  and  providing  AGLC with prompt  notice of such  removal,  or
replacing the individual with a similarly qualified  individual,  or taking such
other appropriate disciplinary action to prevent a recurrence.

         4.15 Exceptions. Anything in this Agreement (including the Exhibits) to
the  contrary  notwithstanding,  the  parties  acknowledge  and  agree  that (a)
ThermoRetec  shall  not be  liable  hereunder  for  failure  to meet  applicable
deadlines if such delays are caused by Force Majeure  Events (as defined  below)
or due to delays caused by AGLC or its decisions and instructions,  and (b) with
respect  to  the  Non-AGLC  Lead  Sites,  ThermoRetec's  obligation  under  this
Agreement shall be to use its best efforts to meet applicable deadlines.

5.       Management and Control.

         5.1 Program  Directors.  ThermoRetec  and AGLC shall each  designate an
individual to serve in a project management  capacity (the "Program  Directors")
as well as an alternate Program Director who shall serve in such capacity in the
Program Director's  absence.  The initial Program Director and alternate Program
Director for the parties shall be as follows:  for AGLC Suzanne  Sitherwood  and
Donna Moore, and for ThermoRetec {*} and {*}. The Program Director designated by
ThermoRetec  shall be a  qualified  environmental  professional  and shall  have
substantial  experience providing and managing the provision of services similar
to the Services.  Each party's Program  Director or alternate  Program  Director
shall be available to the other party at reasonable times. ThermoRetec shall not
replace its Program  Director or alternate  Program  Director  without the prior
written  consent  of AGLC,  and  ThermoRetec  shall use  reasonable  efforts  to
maintain  its  Program  Director  for a term of at least  two  years  after  the
Effective Date. Whenever possible,  ThermoRetec shall give AGLC at least 60 days
advance notice of a change of the Program  Director.  If AGLC  reasonably and in
good  faith  determines  that it is not in the  best  interest  of AGLC  for the
ThermoRetec  Program Director to continue to serve in his or her capacity,  then
AGLC may give ThermoRetec written notice specifying the reasons for its position
and requesting that the ThermoRetec  Program  Director be replaced.  ThermoRetec
shall  immediately  investigate  the  matters  stated in such  notice and, if it
determines  that  AGLC's   concerns  are  reasonable  and  not  unlawful,   then
ThermoRetec  shall  replace  its Program  Director  with the  alternate  Program
Director or a new Program Director meeting the  qualifications set forth in this
Section 5.1. If AGLC decides at any time that any  ThermoRetec  employee  should
not  continue in the  performance  of the  Services,  then AGLC may, in its sole
discretion and upon notice to ThermoRetec, require removal of such employee from
the  provision  of the  Services.  ThermoRetec  shall,  as  soon  as  reasonably
practicable,  replace any such ThermoRetec  employee.  ThermoRetec  shall notify
AGLC as soon as possible after dismissing or reassigning any principal member of
its staff performing the Services.  AGLC may replace its Program Director or its
alternate Program Director upon written notice to ThermoRetec.

         5.2 Other Key  Personnel.  The parties  acknowledge  and agree that the
following  additional  employees of  ThermoRetec  are critical to  ThermoRetec's
performance  hereunder:  {*},  {*} and {*}.  ThermoRetec  shall  use  reasonable
efforts to retain these employees for a term of at least two (2) years after the
Effective Date.  ThermoRetec shall not replace any of these named individuals in
connection  with the provision of Services  without the prior written consent of
AGLC.  Whenever  possible,  ThermoRetec shall give AGLC at least sixty (60) days
advance notice of a change in the employment status, position or availability of
these employees for the provision of the Services.

         5.3  Management  Committee.  Prior to the  Effective  Date,  AGLC shall
appoint two representatives to serve on a management  committee (the "Management
Committee"),  and ThermoRetec shall appoint two  representatives to serve on the
Management  Committee.  The parties shall also mutually agree upon an individual
who is not affiliated with either party to serve as an independent member of the
Management  Committee.  AGLC shall designate one of its  representatives  on the
Management Committee to act as the chairperson of the Management Committee.  The
parties shall cause their  representatives on the Management Committee to attend
the meetings of the Management  Committee.  In addition,  each party shall cause
its Program  Director or alternate  Program  Director to attend  meetings of the
Management  Committee  as a  non-voting  member  thereof.  Any  decision  by the
Management  Committee to adjust any of the terms of this  Agreement must be made
by a vote that includes the vote of at least one  representative  of each party.
The Management  Committee shall be authorized and responsible for (A) overseeing
the  performance  of each  party's  obligations  under  this  Agreement  and (B)
monitoring and resolving  disputes in accordance  with Section 16.1. A party may
change any of its representatives on the Management Committee upon notice to the
other party.

         5.4 Monthly  Reports.  ThermoRetec  shall submit to AGLC within 10 days
after the end of each calendar  month a monthly  report,  detailing on a Site by
Site basis (A) activities  conducted during the prior calendar month relating to
the performance of the Services;  (B) activities  relating to the performance of
the Services  planned to be conducted in the next calendar month; (C) compliance
with, or any variations to, the schedule for the  performance of the Services as
set forth in the Plan;  and (D) any other matter  reasonably  requested by AGLC.
The parties shall agree on a form for such monthly reports.

6.       Indemnity.

         6.1 By ThermoRetec. To the fullest extent permitted by law, ThermoRetec
and ThermoRetec  Corp.  shall jointly and severally  indemnify,  defend and hold
harmless AGLC, its affiliates,  and its and their respective  agents,  officers,
directors,  and employees from and against any and all claims, causes of action,
suits,  damages,  losses and  expenses,  including but not limited to reasonable
attorneys' fees and amounts paid in settlement, arising out of or resulting from
(A) ThermoRetec's performance of the Services, provided that such claim, damage,
loss or expense is attributable to bodily injury,  sickness,  disease, or death,
or to injury to or  destruction  of tangible  property  (other than the Services
itself) including loss of use resulting therefrom, caused in whole or in part by
ThermoRetec, or any of its employees, agents or subcontractors,  anyone directly
or  indirectly  employed  by them or anyone  for whose  acts they may be liable,
except (i) to the extent that such claims and  actions  arise out of AGLC's,  or
any of its employees,  agents or contractors (other than  ThermoRetec),  willful
misconduct or negligent act or omission,  or (ii) to the extent the claim, cause
of action, suit, damage, loss or expense does not arise from a third party claim
against AGLC or its  affiliates  or its or their  respective  agents,  officers,
directors or employees,  then ThermoRetec's and ThermoRetec  Corp.'s obligations
under this  Section  6.1(A)  shall only arise  from the  willful  misconduct  or
negligence of ThermoRetec or its employees,  agents or  subcontractors,  (B) any
breach of this Agreement by ThermoRetec, (C) any breach of any representation or
warranty of ThermoRetec set forth in this Agreement,  (D) any infringement  upon
or  misappropriation  of the  proprietary  rights of any third party, or (E) any
violation of any federal, state, or local law, rule or regulation by ThermoRetec
or any of its  employees,  agents or  subcontractors  in the  performance of the
Services, provided that this clause (E) will not apply to any event occurring on
a Site  where  the  event is the  result  of  information  or  specific  express
directions given by AGLC.

         6.2 By  AGLC.  To the  fullest  extent  permitted  by law,  AGLC  shall
indemnify, defend and hold harmless ThermoRetec, its agents, officers, directors
and  employees  from and against any and all  claims,  causes of action,  suits,
damages, losses and expenses, including but not limited to reasonable attorneys'
fees and amounts paid in  settlement,  arising out of or  resulting  from AGLC's
obligations under this Agreement,  or from its acts or omissions,  provided that
such claim, damage, loss or expense is attributable to bodily injury,  sickness,
disease,  or death,  or to injury to or destruction of tangible  property (other
than the Services itself) including loss of use resulting therefrom, but only to
the extent caused in whole or in part by negligent acts or omissions of AGLC, or
any of its  employees,  agents or  contractors,  anyone  directly or  indirectly
employed  by them or anyone  for whose  acts they may be  liable,  except to the
extent that such claims and actions  arise out of  ThermoRetec's,  or any of its
employees,  agents or  subcontractors,  willful  misconduct  or negligent act or
omission.

         6.3  Proportionate  Liability.  In the event any  damages are caused in
part by actions or inactions of ThermoRetec  or those who it is responsible  for
under this Section 6 and caused in part by actions or inactions of AGLC or those
who it is responsible  for under this Section 6,  ThermoRetec  and AGLC shall be
proportionately  liable to each other and/or to any third party in proportion to
ThermoRetec's and AGLC's relative degrees of fault.

         6.4 Procedures.  The  obligations of each party and  ThermoRetec  Corp.
("Indemnitor")  in Sections 6.1 and 6.2 to  indemnify,  defend and hold harmless
the other party ("Indemnitee") shall be subject to the following:

                  (A) Indemnitee shall provide  Indemnitor with prompt notice of
         the claim giving rise to such obligation;  provided,  however, that any
         failure or delay in giving such notice shall only relieve Indemnitor of
         its  obligations  under  this  Section 6 to the  extent  it  reasonably
         demonstrates  that its defense or  settlement  of the claim or suit was
         adversely affected thereby;

                  (B) Indemnitor shall have sole control over the defense and of
                      all negotiations for settlement of such claim or suit; and

                  (C) Indemnitee  shall cooperate with Indemnitor in the defense
         or settlement of such claim or suit,  provided that Indemnitee shall be
         reimbursed  for  all  reasonable  out-of-pocket  expenses  incurred  in
         providing any  cooperation  requested by Indemnitor.  Subject to clause
         (B) above,  Indemnitee may participate in the defense of any such claim
         or suit at its own expense.

7.       Insurance.

         7.1 Contractor  Owned Insurance  Program.  As soon as possible and with
all due diligence after signature of this Agreement by both parties, ThermoRetec
shall use its best efforts to obtain and thereafter maintain as provided herein,
an insurance  program  covering  the Services  (the  "Insurance  Program")  that
conforms with the  following  provisions  and  requirements.  ThermoRetec  shall
consult  with  AGLC  and  obtain  AGLC's  written  approval  of the  form of the
insurance policies  comprising the proposed  Insurance Program,  their terms and
conditions,  exclusions and the related premiums,  and AGLC shall have the right
to request changes to the proposed Insurance  Program.  The Insurance Program so
approved  by AGLC or as  changed  by AGLC and  accepted  by the  insurers  shall
constitute AGLC's agreement that the Insurance program so obtained conforms with
the  requirements of this Agreement,  or if different from the  requirements set
forth in this Agreement,  that the  requirements set forth herein are amended to
conform with the coverages,  exclusions, terms and conditions of the policies in
the Insurance Program so obtained.

 (A)      The Insurance Program will include:  Commercial  General Liability
          Insurance ("CGL  Insurance"), including at a minimum  bodily injury
          and property  damage  liability,  personal and  advertising injury,
          completed operations,  independent  contractor's  liability,  and
          contractual liability, and all other  major  divisions  of coverage
          contained  in ISO form CG 00 01, with limits of not less  than
          $20,000,000  per  occurrence,   $20,000,000   policy   aggregate,  and
          $20,000,000 products/completed  operations aggregate,  and with a
          $100,000 self-insured  retention ("SIR") or deductible;  Professional
          liability ("Errors & Omissions  Insurance")  insurance with a limit of
          not less than $40,000,000 per claim and $40,000,000  policy aggregate,
          and with a $100,000 SIR; and Contractor's Pollution Liability
          Insurance ("COPS Insurance") with a limit of not less than $40,000,000
          per claim and $40,000,000 policy aggregate, and with a $100,000 SIR.

 (B)      The Insurance Program will cover: all Services at the Sites (including
          sites  that are not  listed in  Exhibit  2  hereto,  but which
          subsequently  are included  within the scope of Services under
          this Agreement);  off-site fabrication,  assembly, consulting,
          engineering  and  other  professional   services;   laboratory
          services;  remediation/removal,  disposal of wastes and debris
          and all other contracting operations necessary to complete the
          scope of Services,  but not including haulers or disposal site
          owners/operators, which are covered by Section 7.6.

 (C)      Except to the extent a claim  results from  negligent  acts or
          omissions or  intentional  misconduct of AGLC or its employees
          or contractors (other than ThermoRetec or its subcontractors),
          all  deductibles or SIRs shall be the sole  responsibility  of
          ThermoRetec  or  its  subcontractors,  and in no  event  shall
          deductibles  paid  by  ThermoRetec  or its  subcontractors  be
          passed  through  directly or  indirectly  as an Actual Cost or
          otherwise under this Agreement, other than deductibles paid by
          ThermoRetec   resulting  from  claims  covered  by  the  above
          exception.

 (D)      All  policies in the  insurance  program  will cover  Services
          rendered to AGLC in connection with the Sites after January 1,
          2000  and will  have a policy  period  covering  the  expected
          Initial Term of this  Contract  (nominally 5 years),  provided
          that each of  ThermoRetec  and AGLC  furnish to the  insurer a
          letter that they are aware of no claims or incidents  that are
          likely to give rise to claims having occurred  between January
          1, 2000 and the effective dates of the policies.

 (E)      The  Commercial  General  Liability  policy  will  be  written  on  an
          occurrence  or claims made basis as approved by AGLC and will  include
          completed  operations  coverage  providing a coverage extension of two
          years for completed operations claims.

 (F)      The Professional  Liability and  Contractor's  Pollution  Liability
          policies may be written on a claims made basis and shall have a policy
          period  covering  the Initial  Term of this  Agreement and with a two
          year extended  reporting  period.  The  Professional  Liability  and
          Contractor's Pollution  Liability  policies  may be written on a
          combined  basis as long as the policy  limits equal or  exceed  the
          requirements  of this  section.  The  policy  retroactive  dates  for
          both coverages  shall be no later than January 1, 2000  (subject to
          the same proviso as in (D) above), and will not be  advanced  during
          the policy  period or  subsequent  to the policy  period for at
          least two years after completion of all Services under this Agreement.

 (G)      As soon as  practicable  but in no event later than 15 days  following
          the  placement  of  coverage   ThermoRetec  shall  provide  AGLC  with
          certificates  of  insurance  confirming  that  insurance  policies  in
          accordance  with  the  above  terms  are in  place  and  effect.  Each
          certificate  also shall  provide that 30 days written  notice shall be
          given to AGLC in the event of cancellation or material change.

 (H)      The Insurance Program policies required  hereunder shall, with
          respect to the Services to be provided  hereunder,  be primary
          and  without  right to  contribution  of any  other  insurance
          policy  covering  the same  risks and  carried  by AGLC or its
          affiliates,  ThermoRetec  and  any of its  subcontractors  and
          their  affiliates,  but this shall not apply  with  respect to
          those policies  required to be carried by haulers and disposal
          site  owners/operators  pursuant  to  Section  7.6 (A) and (B)
          below.

 (I)      Except as agreed in writing by AGLC,  AGLC and its  affiliates
          and ThermoRetec will be included on all policies referenced by
          this section as Named Insureds. Except as agreed in writing by
          AGLC,   ThermoRetec  shall  assure  that  all   subcontractors
          approved  and  accepted  by AGLC and  ThermoRetec  to  provide
          Services  under this  Agreement,  except  haulers and disposal
          site owners or operators  covered by Section 7.6 will be added
          to each policy as insureds and a certificate of insurance will
          be issued to each subcontractor evidencing such.

 (J)      ThermoRetec shall provide AGLC with a copy of the policies  comprising
          the  Insurance  Program  within  thirty  days of its  receipt of those
          policies.

         7.2  Cost  for  the  Insurance  Program  and  AGLC   Cooperation.   (A)
ThermoRetec's  costs for the premiums to obtain the  Insurance  Program shall be
treated  as  Actual  Costs  to  be  reimbursed  to   ThermoRetec   as  incurred.
Notwithstanding  any provision in Section 8 hereof regarding  termination,  upon
any  termination of ThermoRetec  under this Agreement,  if thereafter  there are
continuing costs  associated with the Insurance  Program,  including  payment of
premiums and  ThermoRetec's  own costs of  administration,  AGLC shall reimburse
those costs as incurred by ThermoRetec,  at  ThermoRetec's  then standard rates,
except that premium costs shall be without any mark-up.

         (B)  AGLC  will  cooperate  with  ThermoRetec  for  the  effective  and
efficient  management of the Insurance Program. The parties recognize that there
may be requirements and procedures that they must comply with in order to obtain
the Insurance  Program as contemplated  herein,  for enrollment in the Insurance
Program,  for reporting of claims,  and for other  matters.  Each of the parties
agrees to cooperate with the other in order to accomplish  these objectives in a
timely and efficient manner.

         7.3  Remediation  Cap Insurance.  As part of the Services,  ThermoRetec
shall assist AGLC in securing an insurance policy providing  protection  against
exceeding a certain agreed maximum cost for the Remediation Activities. Further,
ThermoRetec  shall, if AGLC obtains such a policy,  reimburse AGLC promptly upon
demand for the first $200,000 in deductibles or self-insured  retentions payable
by AGLC under such policy as such payments are made by AGLC.

         7.4 Other Coverage Required for ThermoRetec and  Subcontractors.  Prior
to performing  any of the  Services,  ThermoRetec  shall obtain,  and unless the
coverage for occurrences taking place during the policy automatically remains in
effect indefinitely beyond the expiration of the policy period, shall thereafter
maintain  in full force and effect  until two years  after  termination  of this
Agreement, the following insurance coverages:

 (A)      Worker's  Compensation   Insurance,   including  Occupational  Disease
          Coverage,  in accordance with the  requirements of the applicable laws
          of the State(s) in which the Services are being performed.

 (B)      Employer's   Liability  Insurance  with  a  limit  of  $1,000,000  per
          incident,   $1,000,000   aggregate,   with  a   standard   All  States
          endorsement.

 (C)      Automobile  insurance for owned, non-owned or hired vehicles with
          limits for public liability of not less than  $2,000,000  per person
          per accident or occurrence  for bodily injury and limits of not less
          than  $2,000,000  per accident or  occurrence  for property  damage.
          ThermoRetec  shall assure that any  transporter  whose scope of
          Services  includes the  transportation  of any waste materials
          (including  wastes  characterized  as  hazardous  or  special  wastes)
          will  maintain automobile  liability  coverage with limits not less
          than $5,000,000  combined single limit, and including  both the MCS-90
          and  Insurance  Service  Office  ("ISO") CA 99 48 (or its  equivalent)
          endorsements.  ThermoRetec  shall assure that AGLC, ThermoRetec and
          their  affiliates are added to such policy as Additional  Insureds and
          evidence of such will be provided by  certificates  of
          insurance acceptable to AGLC.

 (D)      All  deductibles  or SIRs  under  any  policies  of  insurance
          required in this Section 7.4 shall be paid by  ThermoRetec  or
          its  sub-contractors  and,  in no event,  shall  such costs be
          passed   directly  or   indirectly   to  AGLC.   ThermoRetec's
          obligation  to assure that  subcontractors  carry the coverage
          required   under  this  Section  7.4  shall  be  satisfied  by
          obtaining a certificate  of insurance  evidencing the coverage
          required hereunder.

         7.5 General Policy  Requirements.  Except as provided elsewhere in this
Article 7, all insurance  required by this  Agreement  shall be maintained  with
companies  rated by A.M. Best "A" or better unless agreed to in writing by AGLC.
As soon as possible  after  placing  each policy  under the  Insurance  Program,
ThermoRetec shall furnish  certificates of insurance to AGLC which will evidence
the procurement of the insurance  required  hereunder.  Each  certificate  shall
provide  that 30 days  written  notice  shall be  given to AGLC in the  event of
cancellation or material change to the coverage.  ThermoRetec shall obtain,  and
cause its  subcontractors  to obtain,  a waiver of  subrogation in favor of AGLC
with  regard to the  coverage  in Section  7.4.  ThermoRetec  will  require  all
subcontractors  or  consultants  performing  a part  of the  Services  to  carry
insurance  of similar  types as required of  ThermoRetec  in this  Section  7.4,
provided that the Program  Directors may modify the levels of coverage  required
of a given  subcontractor  or consultant  based upon perceived  risk, so long as
such  decision  is  made by the  Program  Directors  in  writing.  Further,  any
subcontractor's  obligation to maintain  coverage in force beyond the end of the
policy period during which work was performed shall be limited to two years from
the time such subcontractor has completed all its work included in the Services.

         7.6 Insurance For Disposal Site Owners and Operators.  Except as may be
otherwise agreed in writing by AGLC, ThermoRetec shall require that any location
accepting any waste material generated by the performance of Services under this
Agreement (including  specifically any waste material characterized as hazardous
or special waste) for consolidation,  transfer,  storage,  and/or disposal shall
maintain the following  insurance coverages and limits of liability for a period
of 2 years following  acceptance of the last waste material by the disposal site
owner/operator under this contract,  or an extended reporting period of the same
duration,  which requirement  ThermoRetec shall be deemed to have been satisfied
by  obtaining a  certificate  of  insurance  evidencing  the  coverage  required
hereunder:

  (A)      Commercial General  Liability,  written on an occurrence form,
           and including all major divisions of coverage contained in ISO
           form CG 00 01,  with  limits of not less than  $5,000,000  per
           occurrence   for  bodily   injury  and/or   property   damage,
           $5,000,000     general      aggregate,      and     $5,000,000
           products/completed  operations  aggregate.  Any  deductible or
           self-insured  retention  contained  in the  policy  shall  not
           exceed  $100,000.  The policy will be endorsed to include AGLC
           and ThermoRetec as Additional Insureds and endorsed to provide
           a Waiver of Subrogation in favor of AGLC and ThermoRetec.

  (B)      Pollution  Legal  Liability,   including  coverage  for  both  sudden
           and  non-sudden  pollution conditions,  with limits not less than
           $10,000,000 per claim and  $10,000,000  total all claims. The policy
           will include  coverage  for bodily  injury, property damage, cleanup
           costs (on and off-site)  and  defense  costs.  The  policy may be
           written on a  claims-made  policy  form.  The policy  retroactive
           date  shall  be no  later  than the date  that  waste from the
           Remediation Activities  is first  accepted by the disposal site
           owner/operator, and such  retroactive  date shall not be advanced
           for a period of at least 2 years  following  acceptance  of the last
           waste material  by  that  disposal  site  owner/operator under this
           contract. Any deductible or self-insured  retention  contained in the
           policy shall not exceed $100,000.  AGLC and ThermoRetec shall be
           named as  Additional  Insureds  under this  policy,  and the policy
           will be endorsed to provide a Waiver of Subrogation in favor of AGLC
           and ThermoRetec.

  (C)      The cost for obtaining and  maintaining  the coverages  required
           under this section will be borne entirely by the  disposal  site
           owner/operator  and  included in their fees.  ThermoRetec  shall
           assure  that the  insurance  coverages  required  by this  section
           shall in no way  relieve any disposal site  owners/operators  of any
           liability  outside the scope of coverage of the insurance types and
           amounts by this  section, or in excess of the limits of liability
           provided  under the policies required by this section.  All insurance
           companies providing coverage to disposal site owners/operators in
           accordance with this section shall maintain an A.M. Best rating of
           not less than "A-" size class "X" or larger.

  (D)      ThermoRetec  shall assure that the policies required under paragraphs
           (A) and (B)  immediately  above shall be primary and without right to
           contribution  of any  insurance  policy  covering  the same risks and
           carried by AGLC or ThermoRetec.

         7.7 AGLC's Reliance of ThermoRetec's Brokers.  ThermoRetec shall obtain
written  evidence that AGLC is entitled to rely on the advice and performance of
any insurance brokers  assisting  ThermoRetec in the placement or administration
of the Insurance  Program to the same extent as  ThermoRetec is entitled to rely
upon those brokers.

         7.8 Insurance  Coverage  Pending  Placement of the  Insurance  Program.
Prior to the placement of the  Insurance  Program  contemplated  by Section 7.1,
ThermoRetec  shall maintain,  and shall require any  subcontractors to maintain,
such  insurance  as is  customary  in terms of scope and limits  among  firms of
ThermoRetec's size in the environmental engineering industry (or, in the case of
a  subcontractor,  customary for that entity's  size and  specialty)  engaged in
activities of the nature  contemplated by this Agreement,  which insurance shall
cover the Services until such time as the Insurance Program is in place.

         7.9 Exceptions. Notwithstanding anything herein to the contrary, (i) if
AGLC agrees at the Program  Director level or above that any insurance  coverage
to be obtained or maintained by ThermoRetec or a subcontractor  or consultant to
ThermoRetec need not be in accordance with the requirements  stated herein, then
such  other  requirements  as  agreed  in  writing  by  the  representatives  of
ThermoRetec  and AGLC shall apply,  and (ii) if with  respect to  subcontractors
AGLC does not agree to insurance coverages not in conformance with the terms set
forth herein, and ThermoRetec is unable to obtain a subcontractor's agreement to
accept  terms as herein  provided  after  exerting  its best  attempts to do so,
ThermoRetec  shall not enter into the  agreement  with that  subcontractor,  and
ThermoRetec  shall not as a result  thereof  be in breach  of this  contract  or
responsible for resulting delays.

8.       Termination.
         -----------

         8.1  Termination.  This Agreement may be terminated in whole or in part
by (A) either party in the event of a default consisting of substantial  failure
by the other party to fulfill its obligations  under this  Agreement;  provided,
that no such  termination  may be effected  unless such  default,  if capable of
cure,  has not been cured within 30 days after written  notice to the defaulting
party; (B) AGLC upon 30 days written notice given at any time within the 90 days
immediately following the consummation of a Change of Control of ThermoRetec (as
defined  below) that occurs prior to the CAP Date (as defined  below);  (C) AGLC
upon 30 days  written  notice  given at any time during the 90 days  immediately
following the  consummation  of a Change of Control of  ThermoRetec or Permitted
Change in Control  (as  defined  below),  in either case that occurs at any time
during  the term of this  Agreement;  or (D)  AGLC  immediately  in the  event a
petition  for relief  under any  bankruptcy  legislation  is filed by or against
ThermoRetec or any of its parent companies,  or ThermoRetec or any of its parent
companies  makes an  assignment  for the benefit of  creditors  or a receiver is
appointed for all or  substantially  all of  ThermoRetec's  or any of its parent
companies'  assets.  As used  herein,  "CAP Date" shall mean the earlier of such
date as  corrective  action  plans have been  approved  for all of the AGLC Lead
Sites or June 30, 2001. As used herein, "Change of Control of ThermoRetec" shall
mean:  (i) a  consolidation  or  merger  of  ThermoRetec  or any  of its  parent
companies with or into any entity wherein ThermoRetec or such parent company, as
the  case  may  be,  is  not  the  surviving  entity  (other  than a  merger  or
consolidation  with or into an Affiliated  Company (as defined  below)),  (ii) a
sale, transfer or other disposition of all or substantially all of the assets of
ThermoRetec or any of its parent companies,  other than to an Affiliated Company
(such transferee (other than an Affiliated  Company) to be thereafter treated as
if it were  ThermoRetec for purposes of this Section),  or (iii) the acquisition
(in any manner) by any person or entity,  or group of persons or entities acting
in concert,  of beneficial  ownership of 50% or more of the  outstanding  voting
securities of ThermoRetec or any of its parent  companies,  as a result of which
more than a majority of the voting shares of  ThermoRetec or such parent company
are  no  longer  held  by  an  Affiliated  Company;   provided,   however,  that
notwithstanding the foregoing, a Change of Control of ThermoRetec shall not mean
(x) a "change of control" (as defined below) of any person or entity that at one
time was an  Affiliated  Company but at the time of such change of control is no
longer  an  Affiliated  Company,  (y)  the  consolidation  or  merger  of one of
ThermoRetec's parent companies,  or the sale, transfer,  or other disposition of
the assets of one of its parent  companies or the  acquisition of 50% or more of
the outstanding  voting securities of one of its parent companies,  in each case
when 50% or more of the outstanding voting securities of ThermoRetec continue to
be owned,  directly or  indirectly,  by a person or entity who was an Affiliated
Company  prior  to the  transaction  described  in this  clause  (y),  and (z) a
Permitted Change of Control.  As used herein, a "Principal of ThermoRetec" shall
mean,  (i) in the  case of  {*},  a  position  in  ThermoRetec  or a  parent  or
subsidiary of ThermoRetec, or an entity into or with which ThermoRetec is merged
or consolidated or which has acquired all or substantially  all of ThermoRetec's
assets,  having  senior  executive  management   responsibility  which  includes
supervisory responsibility, at a senior executive level, for performance of this
Agreement,  and (ii) in the case of {*}, a position in ThermoRetec,  or a parent
or subsidiary of  ThermoRetec,  or an entity into or with which  ThermoRetec  is
merged  or  consolidated  or which  has  acquired  all or  substantially  all of
ThermoRetec's assets, having senior program management or technology development
responsibility  which includes supervisory  responsibility,  at a senior program
management level, for performance of this Agreement.  As used herein "Affiliated
Company"  shall mean any person or entity that  directly or  indirectly  owns at
least a majority of the voting shares of  ThermoRetec  (the "Owner" for purposes
of this definition) and any person or entity that directly or indirectly owns at
least a majority of the voting shares of the Owner or a majority of whose voting
shares are owned directly or indirectly by the Owner. As used herein  "Permitted
Change of Control" shall mean a Change of Control of ThermoRetec  that satisfies
all of the following conditions:  (i) after the Change of Control of ThermoRetec
the surviving entity or ThermoRetec  retains through the Cap Date  substantially
the same form of organization  (including,  without limitation,  the MGP Program
Management System, Environmental Reporting Management System, Program Management
Reporting  System and Work Process System) and management as prior to the Change
of Control of  ThermoRetec;  (ii) after the Change of Control of ThermoRetec the
surviving  entity or  ThermoRetec  retains  through the Cap Date a tangible  net
worth (calculated in accordance with generally accepted  accounting  principals,
consistently  applied) of at least  $9,800,000;  (iii) both {*} and {*} remain a
Principal of  ThermoRetec  on a full-time  basis (except as a result of death or
permanent  disability)  through the Cap Date;  and (iv) as part of the Change of
Control of ThermoRetec,  ThermoRetec  will use reasonable best efforts to ensure
that {*}, {*} and {*} will  continue to remain  involved in the  performance  of
this Agreement through the Cap Date in substantially the same capacity as before
the Change of Control of ThermoRetec,  including the use of reasonable retention
agreements.  As used herein, a "change of control" with respect to any person or
entity shall mean (i) a consolidation or merger of such person or entity with or
into  another  person or entity  wherein the person or entity in question is not
the surviving  entity,  (ii) a sale,  transfer,  or other  disposition of all or
substantially  all of the  assets  of  such  person  or  entity,  or  (iii)  the
acquisition (in any manner) by another person or entity,  or group of persons or
entities  acting  in  concert,  of  beneficial  ownership  of 50% or more of the
outstanding  voting securities of the person or entity in question,  as a result
of which more than a majority of the voting  shares of such person or entity are
no longer held by the shareholders immediately prior to such acquisition.

         8.2      For  Convenience.  This  Agreement  may be  terminated  in
                  whole  or in  part  by  AGLC  for its convenience at any time
                  by giving ThermoRetec at least 90 days written notice of
                  intent to terminate.

         8.3 For Change of Circumstances. AGLC shall have the right to terminate
this Agreement upon ninety (90) days written notice to ThermoRetec if, in AGLC's
sole good faith discretion,  continuation of this Agreement becomes  impossible,
impractical  or undesirable  due to legal,  economic,  or policy  constraints or
circumstances,  including,  but not  limited to any  change in the  Governmental
Requirements and Orders.

         8.4 For  Failure  to Satisfy  Conditions.  AGLC shall have the right to
terminate  this  Agreement  upon  90  days  written  notice  to  ThermoRetec  if
ThermoRetec  has not entered into a binding  subcontract  in form and  substance
acceptable to AGLC with Law  Engineering  and  Environmental  Services,  Inc. by
April 14, 2000.

         8.5 Reimbursable  Costs. (a) If termination is effected by AGLC for its
convenience under Section 8.2, AGLC will pay ThermoRetec all reimbursable  costs
which are due as of the effective date of  termination,  and in addition,  those
reimbursable  costs  incurred in good faith by  ThermoRetec  after the effective
date of termination in connection with demobilization of equipment and personnel
(including severance costs and subcontract and vendor settlements) plus the Site
Management  Fees  and a  negotiated  portion  of the  Performance  Fee  for  the
AGLC-Lead Sites otherwise due in accordance with the terms of Exhibit 3.

                  (b)  If   termination  is  effected  by  AGLC  for  change  of
circumstances  under  Section 8.3,  AGLC will pay  ThermoRetec  all Actual Costs
which are due as of the effective  date of  termination as well as the Aggregate
Performance  Fees due through the effective date of  termination,  including any
portion of the Performance Fees withheld in accordance with the terms of Exhibit
3.

                  (c) If termination is effected by AGLC because ThermoRetec has
not entered into a binding subcontract in form and substance  acceptable to AGLC
with Law, Engineering and Environmental Services, Inc. by April 14, 2000, as set
forth in Section 8.4, AGLC will pay  ThermoRetec  all Actual Costs which are due
as of the  effective  date  of  termination,  as  well  as 80% of the  Aggregate
Performance  Fees due in accordance  with the terms of Exhibit 3. AGLC shall not
be obligated to pay the remaining 20% of the Aggregate Performance Fees retained
in accordance with the terms of Exhibit 3.

                  (d) If  termination  is effected  by AGLC  pursuant to Section
8.1(B),  then (i) subject to Section 8.6 hereof,  ThermoRetec  shall provide the
Transfer  Assistance  Services as provided in Section 9 below without additional
charge  to  AGLC  for a  period  of 90  days  following  the  effective  date of
termination  and  thereafter  for an additional 180 days on a time and materials
basis at its standard rates, (ii) AGLC shall have no further obligation from and
after  the  effective  date  of  termination  to pay  any  additional  Aggregate
Performance Fees (including any that have been retained  pursuant  hereto),  and
(iii) ThermoRetec  shall pay to AGLC as liquidated  damages the amount set forth
on  Schedule  8.5  attached  hereto;  provided,  however,  that  AGLC  shall pay
ThermoRetec  all Actual  Costs which are due for services  provided  through the
effective date of termination and for all Actual Costs  identified in Exhibit 4,
item 4 for subcontractors  during the 90 day period when the Transfer Assistance
Services are otherwise provided without charge.

                  (e) If  termination  is effected  by AGLC  pursuant to Section
8.1(C),  then (i) subject to Section 8.6 hereof,  ThermoRetec  will  provide the
Transfer Assistance Services as provided in Section 9 below to AGLC for a period
of 90 days following the effective date of termination at  ThermoRetec's  Actual
Cost and thereafter for an additional 180 days on a time and materials  basis at
its  standard  rates,  and (ii) AGLC shall have no further  obligation  from and
after  the  effective  date  of  termination  to pay  any  additional  Aggregate
Performance Fees; provided,  however, that AGLC shall pay ThermoRetec all Actual
Cost  which  are  due  for  Services  provided  through  the  effective  date of
termination,  plus  the Site  Management  Fees  through  the  effective  date of
termination and a portion of the Performance Fee for the AGLC Lead Sites through
the effective date of termination in accordance with the terms of Exhibit 3.

                  (f) Other than  specifically  set forth in this  Section  8.5,
AGLC shall have no liability to  ThermoRetec  for any claims,  causes of action,
suits,  damages,  losses and expenses arising out of, or resulting from,  AGLC's
termination of this Agreement in accordance with this Section 8.

         8.6   Consequences  of  Termination.   Upon  receipt  of  a  notice  of
termination   pursuant  to  this  Article  8,  ThermoRetec  shall  (A)  promptly
discontinue all affected Services (unless the notice directs otherwise), and (B)
deliver to AGLC all data, drawings, specifications, reports, summaries, and such
other  information and materials as may have been  accumulated by ThermoRetec in
performing the Services,  whether completed or in process, with the exception of
one record copy of such  information  which shall be kept by ThermoRetec,  which
copy  shall  be  subject  to  the  confidentiality  provisions  of  Section  10.
Notwithstanding  any  other  provisions  hereof  (other  than  Section  24),  no
termination of this Agreement  shall affect the obligations of the parties under
Section 6 hereof,  and in the event of termination of this Agreement by AGLC for
any reason,  the parties  shall  cooperate  and use their best efforts to assure
that  ThermoRetec,  its affiliates and their  officers,  directors and employees
continue to be covered under the Insurance  Program as if this Agreement had not
been terminated,  including extended  reporting  periods,  for Services rendered
prior  to the  date  of  termination  and for any  Transfer  Assistance  that is
required to be performed  hereunder after the date of  termination.  ThermoRetec
shall  have no  obligation  to perform  any  Transfer  Assistance  except if the
Insurance Program  continues to cover the provision of such Transfer  Assistance
services.

9. Termination Services.  The parties agree that ThermoRetec will cooperate with
AGLC to  assist in the  orderly  transfer  of the  Services  to AGLC or  another
service  provider in connection  with the  expiration or earlier  termination of
this Agreement for any reason. Without limiting the generality of the foregoing,
upon AGLC's request,  subject to Section 8.6 hereof,  ThermoRetec  shall provide
transfer  assistance  in connection  with  migrating the work to AGLC or another
service provider ("Transfer  Assistance") for a period,  unless a shorter period
is specified in Section 8.5, of up to one year  following the expiration of this
Agreement or up to one year following any notice of termination (as the case may
be).  ThermoRetec shall provide the Transfer  Assistance in accordance with this
Section 9 even if AGLC has  materially  breached this  Agreement  (other than an
uncured  payment  default  or failure to defend  and  indemnify  ThermoRetec  as
provided  herein)  with  or  without  an  attendant  termination  for  cause  by
ThermoRetec,  if AGLC  prepays a  reasonable  projection  of the  other  charges
hereunder  for the  Transfer  Assistance  for the  entire  period  AGLC  desires
ThermoRetec to provide the Transfer Assistance. The Transfer Assistance shall be
provided pursuant to the terms and conditions of this Agreement,  and in lieu of
all  other  compensation  described  herein  (including  the  performance  fee),
ThermoRetec  shall be compensated on a time and materials  basis at its standard
rates for such assistance;  provided,  however, that if AGLC has terminated this
Agreement  pursuant to Section 8.1(A) or 8.1(D),  ThermoRetec  shall provide the
Transfer  Assistance without any additional charge to AGLC;  provided,  further,
that if AGLC has terminated this Agreement pursuant to Section 8.1(B) or 8.1(C),
ThermoRetec  shall provide the Transfer  Assistance for the time periods and for
the fees set forth in Section  8.5(d)  and (e),  respectively.  If the  Transfer
Assistance  requires  ThermoRetec  to incur  costs  that  ThermoRetec  would not
otherwise incur in the  performance of the Services under this  Agreement,  then
ThermoRetec  shall  notify  AGLC of the  identity  and  scope of the  activities
requiring  ThermoRetec  to incur  such  costs  and the  projected  amount of the
charges  that will be payable by AGLC for the  performance  of such  assistance.
Upon AGLC's authorization,  ThermoRetec shall perform the assistance and invoice
AGLC for such charges.  Within 30 days after the date of the invoice, AGLC shall
pay  ThermoRetec  for  authorized  additional  charges  incurred to provide such
assistance to AGLC.

10.      Confidentiality.

         10.1  Definition;  Restrictions.  From time to time  during the term of
this  Agreement,  a party (the  "Disclosing  Party") may  disclose  Confidential
Information (as defined below) to the other party (the "Disclosee").  Each party
agrees that it will  maintain the  confidentiality  of any and all  Confidential
Information of a Disclosing Party and not disclose any Confidential  Information
to any person other than to persons who require such  information to perform the
party's obligations  hereunder,  or use such Confidential  Information except to
perform its obligations hereunder.  As used herein,  "Confidential  Information"
means any technical,  business,  and other information related to the Disclosing
Party's  business,  disclosed  or  otherwise  obtained in  connection  with this
Agreement,  whether  or not in  writing,  which  (A)  derives  value,  actual or
potential,  from not being generally known to the public or to other persons who
can obtain value from its  disclosure  or use, and (B) is clearly  identified by
the party to whom such information belongs as confidential.

         10.2 Additional  Obligations.  In addition,  except as provided herein,
each  party  agrees to hold the terms of this  Agreement  in  confidence  and to
disclose  such  terms  only  to  its  employees,   agents,   subcontractors  and
representatives  who need to know such  information to perform their  respective
responsibilities and shall be directed to hold such terms in confidence.

         10.3  Exceptions.  The  obligations set forth in this Section 10 do not
apply  if and to the  extent  that  the  Disclosee  establishes  that:  (A)  the
information  was already known to the Disclosee,  without  obligation to keep it
confidential,  at the time of its  receipt,  as  evidenced  by  documents in the
possession  of the  Disclosee  prepared or received  prior to disclosure of such
information;  (B) the Disclosee  received the  information  in good faith from a
third party  lawfully in  possession  thereof  without  obligation  to keep such
information  confidential  and  without  requiring  the  Disclosee  to keep  the
information confidential;  (C) the information was publicly known at the time of
its receipt by the Disclosee or has become publicly known other than by a breach
of this  Agreement;  (D)  the  information  is  independently  developed  by the
Disclosee without use of the Disclosing Party's Confidential Information; or (E)
the  information  does not  constitute a trade secret under  applicable  law two
years after the expiration or termination of this Agreement.

         10.4  Compliance  with Legal  Process.  Nothing  herein shall  preclude
either  party  from  disclosing  information  which it is  legally  required  to
disclose  whether  pursuant to a valid legal  process,  court order,  regulatory
requirement or otherwise.  A party that is legally  required to make disclosures
of any matter  specified  herein  shall (a)  notify  the other  party as soon as
practicable  and in any event in advance of making such  disclosure,  specifying
the information it is legally  required to disclose,  and (b) where the court or
governmental  agency  requiring  the  disclosure  has a policy or procedure  for
protecting trade secrets or other confidential  information,  use such policy or
procedure (if applicable).

         10.5 Work Product.  ThermoRetec recognizes that it may obtain access to
information  created  by and for  AGLC  and  associated  communications  related
thereto  (collectively,   "Privileged  Work  Product")  which  are  confidential
attorney work product or subject to the  attorney-client  privilege.  AGLC shall
identify for ThermoRetec  the Privileged  Work Product to which  ThermoRetec may
obtain  access.  ThermoRetec  shall not  intentionally  reveal  Privileged  Work
Product to third parties, and ThermoRetec shall institute adequate safeguards to
prevent  the  unintentional  disclosure  of  Privileged  Work  Product  to third
parties.  The only persons who may have access to Privileged  Work Product shall
be those for whom such access is necessary for the purpose of providing Services
to AGLC.  AGLC has advised  ThermoRetec  that  Privileged  Work Product has been
prepared in  anticipation  of litigation and that  ThermoRetec is performing the
Services in respect of Privileged Work Product as an agent of AGLC, and that all
matters  related  thereto are protected from disclosure by Rule 26 of the United
States  Federal  Rules of Civil  Procedure,  or any  similar  law in other local
jurisdictions.  Should  ThermoRetec  ever be notified  of any  judicial or other
proceedings  seeking to obtain  access to Privileged  Work Product,  ThermoRetec
shall (A) promptly  notify AGLC and (B) take such  reasonable  actions as may be
specified by AGLC to resist providing such access. AGLC shall have the right and
duty to represent  ThermoRetec  in such  resistance or to select and  compensate
counsel to represent  ThermoRetec  in such matter or reimburse  ThermoRetec  for
reasonable attorneys' fees and expenses incurred in resisting such access.

11.  Independent  Contractor.  ThermoRetec's  relationship  with AGLC under this
Agreement shall be that of an independent contractor.  Except as contemplated in
Section  4.8,  nothing  in  this  Agreement  shall  be  construed  to  designate
ThermoRetec,  or  any  of  its  employees,   consultants  or  subcontractors  as
employees,  agents, joint venturers or partners of AGLC, and each party shall be
responsible for the expenses of its own employees.

12.      Health and Safety.

         12.1  Avoidance of Harm.  ThermoRetec  shall  conduct all Services in a
manner to avoid risk of bodily harm to persons or damage to property and in full
compliance with all  Governmental  Requirements  and Orders,  including  without
limitation,  the requirements of the Occupational  Safety and Health Act and the
Mine  Safety and Health  Act, as well as AGLC's  safety  requirements.  Further,
ThermoRetec shall  periodically  inspect materials and equipment to identify any
unsafe  conditions and shall promptly take action to correct any condition which
presents such a risk.

         12.2 Appropriate Knowledge. ThermoRetec represents and warrants that it
is fully  qualified  and  knowledgeable  with  respect  to all health and safety
requirements  relating to the  Services and that as an  independent  contractor,
ThermoRetec shall be solely responsible for compliance with those requirements.

         12.3 Safety  Equipment.  ThermoRetec shall provide and maintain its own
safety equipment in accordance with all applicable Governmental Requirements and
Orders.   ThermoRetec   is   responsible   for   providing   its  employees  and
subcontractors  with  adequate  information  and  training in  conformance  with
regulatory requirements.

         12.4  Notification.  In the  event  of  accident,  injury  or  incident
involving health,  safety or damage to property, in addition to its notification
requirements and other  obligations under applicable  Governmental  Requirements
and Orders,  ThermoRetec shall immediately notify AGLC and shall submit a report
on the incident in writing within 48 hours of such occurrence. ThermoRetec shall
maintain  accurate  records of all such  occurrences and shall furnish AGLC with
such reports on an annual basis.

13. Survival and Severability.  All rights and restrictions contained herein may
be exercised and shall be applicable and binding only to the extent that they do
not violate any applicable Governmental Requirements and Orders and are intended
to be limited to the extent necessary to render this Agreement legal,  valid and
enforceable.  If any term of this Agreement,  or part thereof,  not essential to
the commercial purpose of this Agreement shall be held to be illegal, invalid or
unenforceable by a court of competent  jurisdiction,  it is the intention of the
parties that the remaining  terms hereof,  or parts  thereof,  shall  constitute
their  agreement  with  respect  to the  subject  matter  hereof,  and all  such
remaining terms, or parts thereof, shall remain in full force and effect. To the
extent legally permissible, it is the intention of the parties that any illegal,
invalid or  unenforceable  provision  of this  Agreement  shall be replaced by a
valid  provision  which will  implement the  commercial  purpose of the illegal,
invalid or unenforceable provision.

14.      Force Majeure and Other Delays.

         14.1  Force  Majeure.  Neither  party  hereto  shall be liable  for its
failure to perform hereunder,  or delays in performing hereunder, in whole or in
part, due to contingencies  beyond its reasonable  control,  including,  but not
limited to, strikes, work stoppages or delays, labor disputes, riots, wars, acts
of God or nature,  injunction or compliance  with any law,  regulation or order,
whether valid or invalid, or delays,  decisions or inactions of any governmental
body or agency  whether now existing or hereafter  created  (individually,  each
being a "Force Majeure  Event").  The party claiming excuse from  performance or
delay in  performance  by reason of the  occurrence  shall give the other  party
prompt  notice in writing of the  occurrence  and shall use its best  efforts to
remove or mitigate the effects of the Force Majeure  Event upon its  performance
hereunder. Anything herein to the contrary,  ThermoRetec shall not be allowed to
claim  excuse  from  performance  by reason of AGLC's  failure  to  receive  any
approvals,  authorizations or consents from the Georgia Environmental Protection
Department,  the Georgia  Public  Service  Commission or any other  governmental
agency that has authority or responsibility with respect to the Services if such
failure arises from  ThermoRetec's  negligent act or omission or other breach of
this Agreement.

         14.2 AGLC Options. If any Force Majeure Event  substantially  prevents,
hinders or delays performance of the Services for more than 15 consecutive days,
then at AGLC's option:

         (A)      AGLC may procure such  interrupted  Services from an alternate
                  source at its  expense  and  withhold  payment to  ThermoRetec
                  therefor,  provided  that AGLC  continues to make  payments to
                  ThermoRetec  hereunder for Services that  ThermoRetec  has and
                  continues to provide; or

         (B)      until such time as  ThermoRetec  has restored the  interrupted
                  Services,  AGLC may suspend this  Agreement  effective as of a
                  date specified by AGLC in a written notice to ThermoRetec, and
                  AGLC will pay all fees due and payable  through such effective
                  date.

15. Notices.  All notices and other  communications  required or permitted to be
given or made under this Agreement shall be in writing and delivered  personally
or sent by prepaid,  first class,  certified or registered mail,  return receipt
requested,  by a reputable  overnight express delivery service,  or by facsimile
transmission,  to the  intended  recipient  thereof at its address or  facsimile
number set out below. Any such notice or  communication  shall be deemed to have
been  duly  given  immediately  (if  given  or made in  person  or by  facsimile
confirmed by mailing a copy thereof to the  recipient  in  accordance  with this
Section 15 on the date of such  facsimile),  two days after mailing (if given or
made by letter sent by express delivery service), or five days after mailing (if
given or made by mail), and in proving same, it shall be sufficient to show that
the envelope containing the same was delivered to the delivery or postal service
and  duly  addressed,  or that  receipt  of a  facsimile  was  confirmed  by the
recipient as provided above. The addresses and facsimile  numbers of the parties
for purposes of this Agreement are:

If to ThermoRetec, to:                           With a copy to:

Tim Goodson, Environmental Program Director      ThermoRetec Consulting Corp.
ThermoRetec Consulting Corporation               300 Baker Avenue
1140 Hammond Drive - Suite C-3200                Concord, MA  01742
Atlanta, GA 30328                                Attn:  President
Phone: 770.522.9300                              Phone:  978-371-1422
Fax: 770.522.9960                                Fax:  978-369-9279

and in the absence of the Program Director, alternatively to:

Scott Keating, Operations Manager
ThermoRetec Consulting Corporation
1140 Hammond Drive - Suite C-3200

Atlanta, GA 30328
Phone: 770.522.9300
Fax: 770.522.9960

If to AGLC, to:                       With a copies to:

1251 Caroline Street, NE              1251 Caroline Street, NE
Atlanta, GA 30307                     Atlanta, GA 30307
Attn:  Chief Engineer                 Attn:  Vice President, Engineering
Phone:  404-584-3487                  Phone:
Fax:  404-584-3489                    Fax:

                                      Edward Kazmarek, Esq.
                                      Kilpatrick Stockton LLP
                                      1100 Peachtree Street
                                      Suite 2800
                                      Atlanta, GA  30309
                                      Phone:  404-815-6496
                                      Fax:  404-815-6555

16.      Disputes and Choice of Law.

         16.1  Dispute  Resolution.  Any and all  disputes  arising out of or in
connection  with the  negotiation,  execution,  interpretation,  performance  or
non-performance  or breach of this Agreement and the  transactions  contemplated
herein shall be resolved as specified in this Section 16.1.

                  (A) A dispute  shall  initially be  considered in person or by
telephone by the Program Directors within 7 business days of receipt of a notice
from either party specifying the nature of the dispute.

                  (B) If the Program Directors do not resolve the dispute within
such 7 business days, the dispute shall be submitted to the Management Committee
for  resolution.  The Management  Committee  shall meet as often as necessary to
gather and furnish to each party all non-privileged  information with respect to
the matter in issue  which is  appropriate  and germane in  connection  with its
resolution.  The Management Committee shall discuss the problem and negotiate in
good faith in an effort to resolve the  dispute  without  the  necessity  of any
formal proceeding relating thereto.  During the course of such negotiation,  all
reasonable   requests  made  by  one  party  to  the  other  for  non-privileged
information reasonably related to this Agreement,  will be honored in order that
each party may be fully  advised of the other  party's  position.  The  specific
format for such  discussions  will be left to the  discretion of the  Management
Committee,  but it may include the preparation of agreed-upon statements of fact
or written statements of position furnished by each party to the other party.

                  (C) If the  Management  Committee does not resolve the dispute
within 30 days  after the date of  receipt  by the other  party of a request  to
submit  the  dispute  to  the  Management  Committee  as  described  above  (the
"Notice"),  then the  dispute  shall be  escalated  to an  executive  officer of
ThermoRetec and an executive officer of AGL Resources, Inc. for their review and
resolution  within 45 days after  receipt of the  Notice.  If the dispute is not
resolved by these officers  within such 45 day period,  the parties agree to try
in good faith to resolve the dispute by mediation in Atlanta,  Georgia under the
Commercial Mediation Rules of the American Arbitration Association.

                  (D) If the dispute is not resolved by mediation within 90 days
after the  Notice,  then the  dispute  shall be solely  and  finally  settled by
arbitration,  which shall be conducted in Atlanta,  Georgia, by a panel of three
arbitrators,  one of whom  shall  be  selected  by  AGLC,  one of whom  shall be
selected  by  ThermoRetec,  and the  third  of whom  shall  be  selected  by the
arbitrators  selected by them.  The parties  renounce all recourse to litigation
and agree  that the award of the  arbitrators  shall be final and  subject to no
judicial  review.  The  arbitrators  will  conduct  the  proceedings,  including
arguments and briefs,  in accordance with the rules of the American  Arbitration
Association. The arbitrators will decide the issues submitted in accordance with
the  provisions  and commercial  purposes of this  Agreement,  provided that all
substantial  questions of law will be determined  under the laws of the State of
Georgia, United States of America (without regard to its principles of conflicts
of laws).  All decisions of the arbitrators  will be in writing and submitted to
the parties and will set forth  findings of fact and  conclusions of law. In the
final award, the arbitrators will divide all costs,  other than fees of counsel,
incurred in conducting the  arbitration,  in any manner as the arbitrators  deem
just  and  equitable  under  the  circumstances.  Judgment  on the  award of the
arbitrators may be entered into by any court having  jurisdiction over the party
against whom  enforcement  of the award is being sought.  Each party agrees that
any award of the arbitrators  against it and on which judgment is entered may be
executed against the assets of that party in any  jurisdiction.  By execution of
this Agreement, each party irrevocably consents to the jurisdiction of any court
having jurisdiction over that party for the purpose of enforcing any award.

                  (E)  Notwithstanding any provision of this Section 16.1 to the
contrary,  each party shall be entitled to seek  injunctive and other  equitable
relief in any court of competent  jurisdiction to enforce the provisions of this
Agreement, even if a related matter has already been submitted to arbitration in
accordance with the provisions of this section.

         16.2  Performance  During  Disputes.  The parties  agree to continue to
perform their  respective  obligations  under this Agreement  while a dispute is
being  resolved  unless and until such  obligations  are terminated or expire in
accordance  with the provisions of this Agreement or unless such  performance is
prevented by the actions of the other party.

17.      Financial Audits; Oversight.

         17.1 GAAP. ThermoRetec shall set up and maintain its books, records and
accounts  relating to this  Agreement  and the Services  performed  hereunder in
accordance with generally accepted accounting principles consistently applied.

         17.2  Financial  Compliance.  Upon  reasonable  prior notice from AGLC,
ThermoRetec  shall  provide  AGLC,  any  of  AGLC's   representatives   and  the
representatives  of any governmental  agency approved by AGLC with access to its
facilities,  data and books and records with respect to this  Agreement  and the
Services  and any  assistance  that they  require for the purpose of  performing
financial  and  accounting  audits,  including  audits  or  inspections  of  the
Services. If any audit results in ThermoRetec being notified that ThermoRetec, a
ThermoRetec representative, agent or subcontractor is not in compliance with any
financial or accounting or audit requirement, ThermoRetec shall, and shall cause
its agents,  representatives  or  subcontractors  to,  promptly  take actions to
comply with such audits. ThermoRetec shall bear the expense of any such response
that is (A) required by a financial or accounting or audit requirement  relating
to ThermoRetec's  business or (B) necessary due to ThermoRetec's  non-compliance
with any financial or accounting or audit requirement imposed on ThermoRetec.

         17.3 Audit.  Upon reasonable prior notice from AGLC,  ThermoRetec shall
provide AGLC with access to such financial records and supporting  documentation
as may be  requested  by AGLC,  and AGLC may audit the fees  charged  to AGLC to
determine  if such fees are  accurate  and in  accordance  with this  Agreement.
Except as set forth below, AGLC shall be responsible for the costs of any audits
performed  pursuant  to this  Section  17. If, as a result of such  audit,  AGLC
determines  that   ThermoRetec  has  (A)  overcharged   AGLC,  it  shall  notify
ThermoRetec of the amount of such overcharge, and ThermoRetec shall promptly pay
to AGLC the amount of the overcharge, plus interest at the rate of 8% per annum,
calculated from the date of the overcharge until the date of payment to AGLC, or
(B)  undercharged  AGLC,  AGLC shall  notify  ThermoRetec  of the amount of such
undercharge and AGLC shall pay to ThermoRetec the amount of the undercharge.  If
any such audit  reveals an overcharge to AGLC of 5% or more for the period being
audited, ThermoRetec shall, at AGLC's option, issue to AGLC a credit against the
fees or reimburse AGLC, for an amount equal to the costs of such audit.

         17.4  Document  Retention.  ThermoRetec  shall (A) maintain  procedures
necessary to  accurately  monitor  compliance  with its  obligations  under this
Article 17, including compliance with the financial and accounting  requirements
of the Rider,  and (B) make and retain records and supporting  documentation  in
sufficient form and manner to document the Services and the fees paid or payable
by AGLC  under  this  Agreement,  and to  document  AGLC's  compliance  with the
financial and  accounting  requirements  of the Rider for a period of five years
after the completion of the Services.

         17.5  General  Compliance.  Upon  reasonable  prior  notice  from AGLC,
ThermoRetec  shall  provide  AGLC,  any  of  AGLC's   representatives   and  the
representatives  of any governmental  agency approved by AGLC with access to its
facilities,  data and books and records with respect to this  Agreement  and the
Services and any assistance  that they require for the purpose of inspecting the
Sites, the Services or the performance  thereof.  If any such inspection results
in ThermoRetec  being notified that ThermoRetec,  a ThermoRetec  representative,
agent or  subcontractor  is not in compliance  with any applicable  provision of
this Agreement or an applicable law or regulation,  ThermoRetec shall, and shall
cause its agents, representatives or subcontractors to, promptly take actions to
comply with such notice.

18.      Taxes.

         18.1 Sales Taxes. Any payments due to ThermoRetec pursuant to Section 3
are inclusive of  applicable  sales,  use,  excise,  personal  property or other
similar taxes  attributable  to the period on or after the Effective  Date based
upon or measured by (A) ThermoRetec's cost in acquiring or providing  equipment,
materials,  supplies or third party services furnished to or used by ThermoRetec
in  providing  and  performing  the  Services,  and (B)  all  taxes  payable  by
ThermoRetec  with respect to its revenues,  income and profit.  Each party shall
bear sole  responsibility  for all taxes,  assessments  and other real  property
related levies on its owned or leased real property.

         18.2 Cooperation.  The parties agree to reasonably  cooperate with each
other in good faith to more  accurately  determine  and reflect each party's tax
liabilities  and to minimize such liability to the extent  legally  permissible.
Each party shall provide and make available to the other any resale certificates
and other  exemption  certificates  or information  reasonably  requested by the
other party.

         18.3 Use and Services  Taxes.  Notwithstanding  any other  provision of
this Agreement, if a sales, services,  value added or similar tax is assessed on
ThermoRetec's  provision of the Services to AGLC or on ThermoRetec's  charges to
AGLC under this  Agreement,  AGLC will be responsible  for and pay the amount of
any such tax.

19. Assignment.  This Agreement shall not be assigned,  delegated or transferred
by any party  without the prior  written  approval of the other  parties,  which
approval shall not be unreasonably  withheld;  provided,  however, that AGLC may
assign this Agreement to an affiliate without prior approval; provided, further,
that  ThermoRetec  may assign this  Agreement to any party which acquires all or
substantially  all of its  assets in a Change of  Control  of  ThermoRetec  or a
Permitted  Change of Control.  Any such assignment will not relieve the party of
its obligations  under this Agreement.  This Agreement shall inure to the mutual
benefit of the parties and their permitted successors and assigns.

20. Entire  Agreement.  This Agreement  shall  constitute  the entire  agreement
between  the  parties  with  respect  to the  subject  matter  hereof  and shall
supersede all previous and contemporaneous  negotiations,  comments and writings
by the parties, including without limitation, any and all proposals, exceptions,
or limitation provided by ThermoRetec. In no event shall the preprinted terms or
conditions found on any ThermoRetec invoice or AGLC purchase order be considered
part of this Agreement.

21.      Waiver.  No waiver of any breach of any  provision  of this  Agreement
         shall  constitute  a waiver of any prior, concurrent or subsequent
         breach of the same or any other provision hereof.

22.      No  Third  Party  Beneficiaries.  The  parties  hereto  do not intend,
         nor will any  section  hereof  be interpreted, to create any third
         party beneficiary rights with respect to either of the parties.

23. Consents and Approvals.  The parties hereto agree that in any instance where
a consent,  approval or  agreement is required of a party in order for the other
party to  perform  under  or  comply  with  the  terms  and  conditions  of this
Agreement, then such party will not unreasonably withhold or delay such consent,
approval  or  agreement,  and where  consent,  approval or  agreement  cannot be
provided, the party shall notify the other party in a timely manner.

24.  Release  of  ThermoRetec  Corp.  If at any  time a  Change  of  Control  of
ThermoRetec or Permitted Change of Control is consummated,  then effective as of
the date such  transaction is consummated,  ThermoRetec  Corp. shall be released
from its obligations  under Article 6 for any claims,  causes of action,  suits,
damages,  losses and expenses (including but not limited to reasonable attorneys
fees and amounts paid in  settlement)  arising from acts or omissions  occurring
after the  consummation  of such Change of Control of  ThermoRetec  or Permitted
Change of Control.

25.Headings. All headings herein are not to be considered in the construction or
interpretation  of any provision of this  Agreement.  This Agreement was drafted
with the joint  participation  of both  parties and shall be  construed  neither
against nor in favor of either,  but rather in accordance  with the fair meaning
hereof.

26.  Commencement of Actions.  Neither party may bring an action,  regardless of
form, arising out of this Agreement more than two years after the later to occur
of the date on which the cause of action has  arisen,  or the date such cause of
action was or should have been discovered.

27.      Counterparts.  This  Agreement  may be  executed  in  counterparts,
         each of  which  shall  be  deemed  an original, and all of which taken
         together shall constitute a single instrument.

28.      Exhibits.  The following Exhibits are attached hereto and incorporated
         herein by reference:

         Exhibit 1 - Scope of Services
         Exhibit 2 - List of Sites
         Exhibit 3 - Annual Performance Fee Calculation
         Exhibit 4 - Categories of Cost Definitions
         Exhibit 5 - Sample Subcontractor Agreements
         Exhibit 6 - Approved Subcontractors

IN WITNESS  WHEREOF,  the parties  have caused this  Agreement to be executed by
their duly authorized representatives on the date first above written.

ATLANTA GAS LIGHT COMPANY                   THERMORETEC CONSULTING CORP.

By:   /s/ Paul R. Shlanta                   By:    /s/ Michael D. Knupp
      --------------------                         ---------------------
Name:     Paul R. Shlanta                   Name:      Michael D. Knupp
      --------------------                         ---------------------
Title:    Sr. Vice President                Title:     President
      -----------------------                      ---------------------

The  undersigned  agrees to be a party to this  Agreement  solely for purpose of
providing  indemnification  under  Article 6 and  agrees  that  notice  given to
ThermoRetec in accordance  with this Agreement  shall  constitute  notice to the
undersigned.

ThermoRetec Corp.

By:     /s/ Robert W. Dunlop
        ---------------------
Name:       Robert W. Dunlop
        ---------------------
Title:      President
        ---------------------
<PAGE>

                                        4

ATLLIB01  908254.11
                                    EXHIBIT 1

                                Scope of Services

Except as specifically limited in this Exhibit 1, or in the Master Environmental
Management Services  Agreement,  ThermoRetec shall provide general management of
the investigation and cleanup of all Sites listed in Exhibit 2. Without limiting
the  generality  of  this  obligation,   the  Services  shall  include,  without
limitation, the following:

1)       AGLC-Lead  Sites.  With  respect  to those  Sites  where AGLC is solely
         responsible for Site activities ("AGLC-Lead Sites") (Augusta,  Griffin,
         Macon #1, Rome, Savannah, Valdosta, and Waycross):

         a)       Administrative and General:
                  --------------------------

                  i)       General.  Overall  management  and  coordination  for
                           innovative,  cost-effective,  and timely  cleanup of
                           the Sites in  accordance  with the Plan and all
                           applicable Governmental Requirements and Orders.

                  ii)      Deadlines.  Meet all applicable deadlines established
                           by  EPD  and  PSC,   except  as   directed   by  AGLC
                           management.  Where there is a risk of  non-compliance
                           with applicable deadlines,  inform AGLC management at
                           the  earliest  possible  point,  develop  actions and
                           determine with AGLC management their appropriateness,
                           and take all  appropriate  measures to  overcome  any
                           impediments   to  meeting   deadlines,   and,   where
                           necessary,  assist AGLC  management in  communicating
                           the  appropriate  facts  and  justifications  to  EPD
                           and/or the PSC.

                  iii)     Subcontractors.   Identify  appropriate   remediation
                           subcontractors or suppliers,  prepare scopes of work,
                           solicit  proposals,  evaluate  responses,  coordinate
                           selection of subcontractors with AGLC management, and
                           notify AGLC  management  of any principal or alliance
                           subcontractors.

                  iv)      Stakeholders.  In coordination  with AGLC management,
                           identify  key  off-site  entities  with  interests or
                           concerns potentially affected by the MGP program, and
                           assist  AGLC  as  requested  in the  development  and
                           implementation   of  measures  to  respond  to  these
                           interests or  concerns.  Identify  those  persons for
                           whose  property  AGLC  must  obtain  access  and make
                           suitable and necessary arrangements.

                  v)       Claim Identification. Where ThermoRetec becomes aware
                           of claims or threatened  claims of property damage or
                           bodily  injury,  report  that fact  promptly  to AGLC
                           management and assist AGLC counsel, as requested,  in
                           evaluating and responding to such.

                  vi)      Cost Recovery. Assist outside  counsel, as requested,
                           in PRP cost recovery actions or negotiations,
                           including  providing documentation, testimony, and
                           other support necessary to justify the work,
                           expenses, and remediation decisions.

                  vii)     Property  Disposition.  In  connection  with  AGLC
                           management,   assist  in  developing property
                           disposition plans, employing remediation alternatives
                           appropriate for property reuse or redevelopment.

                  viii)    Recordkeeping.  Maintain  all  files and  records  as
                           necessary,  including those as required for PSC audit
                           and reporting  purposes,  as necessary for compliance
                           with the National  Contingency  Plan ("NCP"),  and as
                           required under  applicable rules and orders governing
                           the cleanup of the Sites.

                  ix)      Regulatory  Negotiations.  In  consultation  with and
                           as  requested  by AGLC,  represent AGLC  and  lead
                           negotiations with environmental agencies, identifying
                           for AGLC management all key strategic issues.

                  x)       Site Closure.  Supervise and conduct all Site closure
                           studies,  prepare  reports,  and obtain  from EPD all
                           necessary closure documentation, delisting decisions,
                           "no  further  action"  letters,  and  other  forms of
                           regulatory finality.

         b)       Technical.
                  ---------

                  i)       Investigations. Supervise/conduct all remedial
                           investigations and Site assessments.

                  ii)      Studies.   Supervise/conduct  all  required  research
                           initiatives  (such  as  natural attenuation,
                           sediments, and wetlands).

                  iii)     CAPs. Supervise/conduct the preparation of all
                           corrective action plans.

                  iv)      Remedial Design.  Supervise/conduct  the preparation
                           of all remedial designs, including the preparation of
                           appropriate remedial design documents.

                  v)       Remedial  Action.  Supervise  all cleanup  activities
                           performed  by   subcontractors,   assuring  that  all
                           remedial   objectives  have  been  attained  and  all
                           remedial   actions   comply  with  all   requirements
                           established  by  governmental  orders,   regulations,
                           statutes, or agreements.

                  vi)      Technical Documentation. Prepare all reports,
                           notices, and other documentation for EPD necessary
                           under applicable rules or orders, or as otherwise
                           appropriate.

         c)       Financial.
                  ---------

  i)       Cost  Estimates.  Prepare  probabilistic  cost  models,  as  required
           for  establishing forward-looking estimates of Expected Costs for
           each Site.

  ii)      Engineering Cost Estimates.  Prepare  engineering  cost estimates for
           remediation  costs or remedial alternatives.

  iii)     Cash flow. Prepare remedial project estimated cash flows.

  iv)      Insurance.  Provide assistance to develop insurance coverage strategy
           for the Sites to cover at least the risks of  additional  remediation
           costs,  regulatory  reopeners,  and  third-party  property damage and
           personal injury claims.

2)       Non-AGLC-Lead  Sites. For those Sites where AGLC shares responsibility
         with Georgia Power Company (Athens and Brunswick), and for those Sites
         where AGLC is a member of a PRP group (Sanford, St. Augustine, and
         Orlando):

         a)       Administrative and General.
                  --------------------------

                  i)       Committees.  In  consultation  with AGLC  management,
                           represent AGLC as the technical and management member
                           of  any  committees  (or,  if  so  directed  by  AGLC
                           management,  assist an AGLC  representative in such a
                           role).  Take such actions on such  committees  as are
                           necessary and  appropriate  to encourage  innovative,
                           cost-effective, and timely cleanups of the Sites.

                  ii)      Coordination. Represent AGLC's interests in decisions
                           by committees  regarding selection of subcontractors,
                           preparation   of  scopes  of  work,   evaluation   of
                           proposals, and other tasks. In consultation with AGLC
                           management,   represent   AGLC's   interests  in  the
                           identification  of  off-Site   stakeholders  and  the
                           development  of measures to address the  interests or
                           concerns  of  such  stakeholders.   Represent  AGLC's
                           interests  in the  technical  review of  reports  and
                           communications with the regulatory agencies.

                  iii)     Cost  allocation.   Assist  outside  counsel,  as
                           requested,   in  the  development  of information
                           necessary for cost allocation negotiations.

                  iv)      Recordkeeping.   Maintain   all  files  and   records
                           including   those  as  required  for  PSC  audit  and
                           reporting purposes,  as necessary for compliance with
                           the NCP, and as required under  applicable  rules and
                           orders governing the cleanup of the Sites.

                  v)       Regulatory   Negotiations.   To  the   extent   group
                           negotiations involving regulatory agencies require or
                           would  be  aided  by  technical   participation,   in
                           consultation with AGLC management, represent AGLC and
                           assist the committees to present  technical issues to
                           the regulatory agencies.

         b)       Technical.
                  ---------

                  i)       Studies,     Assessments,     and    Plans.    Review
                           recommendations   for  studies  or  assessments   for
                           investigation   or   cleanup   of   the   Sites.   In
                           consultation  with AGLC management,  represent AGLC's
                           interests   in  the  conduct  of  such   studies  and
                           assessments  and the  conduct of  required  research.
                           Represent  AGLC's interests in the preparation of any
                           Corrective  Action  Plans  or other  remedial  action
                           proposals.

                  ii)      Remedial  Design and Action.  Represent  AGLC's
                           interests in the review and supervision of all
                           remedial design activities and the conduct of all
                           remedial actions.

                  iii)     Documentation.  Review or arrange for the review of
                           reports,  scopes of work,  and other documentation
                           prepared in the course of such studies or
                           assessments.

         c)       Financial.
                  ---------

                  i)       Cost Estimates. Prepare probabilistic cost estimates,
                           as   required   for   establishing    forward-looking
                           estimates of Expected Costs for each Site.  Represent
                           AGLC's  interests  in the  preparation  or  review of
                           engineering   cost  estimates  of  closure  costs  or
                           remedial   alternatives.   Prepare  remedial  project
                           estimated cash flows.

                  ii)      Insurance.  Provide  assistance to develop  insurance
                           coverage strategy for the Sites to cover at least the
                           risks of  additional  remediation  costs,  regulatory
                           reopeners,   and  third-party   property  damage  and
                           personal injury claims.

<PAGE>

ATLLIB01  908254.11
                                    EXHIBIT 2

                                  List of Sites

AGLC Lead Sites (Georgia)

Augusta
Griffin
Macon
Rome
Savannah
Valdosta
Waycross

Non-AGLC Lead Sites (Georgia and Florida)
-----------------------------------------
Athens
Brunswick
Orlando
Sanford

St. Augustine

<PAGE>

                                        4

ATLLIB01  908254.11
                                    EXHIBIT 3

                       Annual Performance Fee Calculation

1.       During the Initial Term AGLC shall pay  ThermoRetec  the following two
         performance  fees (the  "Aggregate Performance Fees"):

         (a)      A "Site Management Fee" for the Non-AGLC-Lead Sites
                 (as defined in Exhibit 2); and

         (b)      A "Performance Fee" for the AGLC-Lead Sites.

2.       Site  Management  Fee. The Site Management Fee shall be payable monthly
         in accordance with Section 3.4 and shall be equal to 10.5% of the
         Actual Costs associated with the Non-AGLC-Lead Sites.

3.       Performance Fee.
         ---------------

         (a)      General. The Performance Fee shall be calculated as set forth
                  below:

                  (i)      The parties  believe  that the total Actual Costs for
                           the AGLC-Lead  Sites will be  ${*}  ("Expected
                           Cost").   This   expectation   is   subject   to  the
                           assumptions  and caveats set forth on Attachment 1 of
                           this  Exhibit.  The  Expected  Cost,  as the  Parties
                           anticipate  it will be incurred  on an annual  basis,
                           unless  adjusted for additional  services as provided
                           for in paragraphs  2.2 or 2.3 of the Master  Services
                           Agreement, forms the basis for the calculation of the
                           Performance  Fee. The  expected  Actual Costs for the
                           AGLC-Lead Sites are shown below.

                                             Current Estimate
                                             of Actual Cost by

                Contract Year                Contract Year

   Year 1(Jan. 1, 2000/June 30, 2000)         $ {*}
   Year 2(July 1, 2000/June 30, 2001)           {*}
   Year 3(July 1, 2001/June 30, 2002)           {*}
   Year 4(July 1, 2002/June 30, 2003)           {*}
   Year 5(July 1, 2003/June 30, 2004)           {*}
   Year 6(July 1, 2004/Jan. 31, 2005)           {*}
                                              -----------

   Expected Cost:                             $ {*}

  (i)       The parties acknowledge that the expected Actual Costs per year will
            be adjusted annually with the approval of the Annual Budget.

   (ii)     If, at the end of the Initial  Term,  the total Actual Costs for the
            AGLC-Lead  Sites are equal to the Expected  Cost,  ThermoRetec  will
            have  earned a total  Performance  Fee of ${*}.  For any other total
            Actual  Costs,  the  Performance  Fee will be  adjusted as set forth
            below.

 (b)      Year 1  Calculation:  Subject  to  paragraph  (d)  below,  for
          purposes of calculating  the  Performance Fee during the first
          Contract  Year,  the parties have agreed that the  Performance
          Fee will be ${*}  per month,  which would be equal to a pro
          rata  amount of  ThermoRetec's  Performance  Fee  during  such
          period,  if the Actual Costs for such period were equal to the
          forecasted  amount  (${*}  million / ${*}  million) * ${*}
          million / {*} for the initial Contract Year (a 6 month period)).
          The  Performance  Fee  shall be paid by AGLC at the same  time
          that it makes its monthly payment under Section 3.4.

 (c)      Subsequent  Year  Calculations:  Within thirty (30) days after
          the end of each  Contract  Year,  ThermoRetec  shall total the
          Actual  Costs for the  preceding  Contract  Year(s) and shall,
          using these Actual Costs,  recalculate  the forecast  Expected
          Cost  (EC{R})  and  revised   budgeted  Actual  Costs  for  each
          subsequent  Contract Year (BC{Rn}).  The Performance Fee for the
          upcoming Contract Year (PF{n}) will then be calculated according
          to the following formula:

  (i)      The slope (S) of the Performance Fee function is given by:

           S =  ${*}                                (Eq. 1)
                ------------------------------
                ${*} - ${*}
         S = -0.370899

  (ii)     The Total Performance Fee (PF{T}) based upon the recalculated
           Expected Cost(ECR)shall be determined pursuant to the following
           formula:

                   PF{T} = (EC{R} - C{max}) * S            (Eq. 2)

                            where

            C{max}            =          ${*},
            unless adjusted as setforth in paragraph 3(g), below.

  (iii)    The Performance  Fee in Contract Year n (PF{n}) is determined
           pursuant to the following formula:

PF{n} = (PF{T}-sum of previous years PF{n})*BC{Rn}/sum of remaining years BC{R}
                                                          (Eq. 3)

          (iv)     Given  the  complexity  of  the  calculation,   three  sample
                   calculations  are set forth on  Attachment 2 to this Exhibit.
                   The sample  calculations  are  illustrative in nature and are
                   not binding on the parties.

 (d)      Monthly Payments. (i) The Performance Fee shall be paid monthly at the
          same time  payments are made under  Section  3.4. The amount  actually
          paid each month shall be equal to eighty  percent (80%)  multiplied by
          one-twelfth  (1/12) of the Performance Fee for such Contract Year. The
          remaining 20% shall be withheld and applied as described in paragraphs
          (e) and (f) below.

                  (i)      If the  Performance  Fee for any particular  Contract
                           Year is a  negative  number,  then AGLC shall make no
                           payment of the  Performance  Fee to  ThermoRetec  for
                           such Contract  Year, but shall instead be entitled to
                           off-set the Negative  Performance  Fee first  against
                           Site Management Fees during such year, and at the end
                           of  such   Contract   Year,   against  any   retained
                           Performance Fees from previous years.

         (e)      Year-End Payment. Within sixty (60) days after the end of each
                  Contract  Year,  except  the final  Contract  Year  within the
                  Initial  Term,  ThermoRetec  shall be paid up to fifty percent
                  (50%) of the withheld  portion of the  Performance Fee for the
                  preceding  Contract  Year, as the Management  Committee  deems
                  appropriate  given  AGLC's   satisfaction  with  ThermoRetec's
                  performance and such other factors as the Management Committee
                  considers appropriate.  All withheld amounts that are not paid
                  at year end shall continue to be withheld until the end of the
                  Initial Term.

         (f)      Payment upon  Expiration  of Initial  Term.  Within sixty (60)
                  days after the end of the Initial Term,  ThermoRetec  shall be
                  paid the balance of all  withheld  amounts  from the  previous
                  years,  adjusted for any  deficiencies  or make-up,  which may
                  have occurred during the Initial Term.

         (g)      Adjustment  for  Windfalls.  The parties  understand and agree
                  that  there are  factors  beyond  the  reasonable  control  of
                  ThermoRetec for which it would be unfair to reward ThermoRetec
                  (for lower costs) or penalize  ThermoRetec  (for higher costs)
                  as a result of these factors.

                  A windfall is the difference  between the yearly budgeted cost
                  and the actual cost for soil remediation at a site or operable
                  unit.

                  A  windfall   does  not  arise  when  better   than   expected
                  performance   results   due   to   construction    efficiency,
                  procedures,  systems,  schedule,  strategy,  people  or  other
                  innovative  factors.  A +/- 5% change  in Actual  Cost for the
                  Augusta,  Macon or Savannah Sites or any operable unit thereof
                  shall not constitute a Windfall situation.  A change in Actual
                  Cost for all other sites shall not constitute a windfall.

                  Accordingly,  should any such  windfall  factors  arise at the
                  Augusta, Macon or Savannah Sites or any operable unit thereof,
                  the  benchmarks  according  to which  the  Performance  Fee is
                  calculated  shall be modified as  follows.  ThermoRetec  shall
                  calculate or show the change to the Expected  Cost as a result
                  of the windfall event, C{W}. C{max} would then be increased or
                  decreased  by C{W}, and the recalculated C{maxr}, unless  the
                  Management  Committee  decides on  equitable  grounds to use a
                  different   figure,   shall   be   used   in  all   subsequent
                  calculations.

         (h)      Adjustment for Lower Costs.  If the total Actual Costs for the
                  AGLC-Lead  Sites is or is  forecasted to be less than ${*}, as
                  adjusted  for the sum of all windfall  savings or costs,  then
                  the  parties  agree  to  negotiate  an  acceptable   equitable
                  adjustment to the formula set forth above.

         (i)      Adjustment for Time-Shifted  Costs. If a substantial amount of
                  Actual Costs  forecasted  for one  Contract  Year are actually
                  incurred  in  a  different   Contract  Year,   such  that  the
                  calculation of the  Performance Fee for that one Contract Year
                  would be unfair to either party under the  circumstances,  the
                  parties agree to negotiate an acceptable  equitable adjustment
                  to the  formulae  set forth  above.  This clause shall have no
                  effect on  ThermoRetec's  ability to accrue costs for incurred
                  work,  which will not be billed  until  after the close of the
                  Contract  Year  (and in  accordance  with  accepted  financial
                  practices).

         (j)      Limitations.  Subject  to  paragraph  (h) above,  the  parties
                  acknowledge and agree that the final aggregate Performance Fee
                  shall not exceed ${*} under any circumstances, nor shall it be
                  less than zero.

<PAGE>

ATLLIB01  908254.11
                                  Attachment 1

<TABLE>

Site Assumptions and Caveats
       <S>                                     <C>                                                             <C>
------------------- -------------------------------------------------------------------------------- -------------------------------
  Site              Assumptions                                                                      Caveats
------------------- -------------------------------------------------------------------------------- -------------------------------
Athens              No groundwater pump & treat required                                             {*}
                    {*}
------------------- -------------------------------------------------------------------------------- -------------------------------
------------------- -------------------------------------------------------------------------------- -------------------------------
Augusta             {*}                                                                              {*}
                    {*}                                                                              {*}
                    Thermal Desorption can effectively meet RRS
                    {*}
------------------- -------------------------------------------------------------------------------- -------------------------------
------------------- -------------------------------------------------------------------------------- -------------------------------
Brunswick           {*}                                                                              No groundwater pump & treat
                                                                                                     will be required
                    {*}
                    Natural attenuation is the final remedy for groundwater
------------------- -------------------------------------------------------------------------------- -------------------------------
------------------- -------------------------------------------------------------------------------- -------------------------------
Griffin             No groundwater pump & treat required
------------------- -------------------------------------------------------------------------------- -------------------------------
------------------- -------------------------------------------------------------------------------- -------------------------------
Macon               Trestle at river will not require removal                                        {*}
                    {*}                                                                              {*}
                    All soil  manifested  as  non-hazardous
                    {*}
                    {*}
                    {*}

------------------- -------------------------------------------------------------------------------- -------------------------------
------------------- -------------------------------------------------------------------------------- -------------------------------
Rome                {*}                                                                              {*}                  {*}
                    {*}
------------------- -------------------------------------------------------------------------------- -------------------------------
------------------- -------------------------------------------------------------------------------- -------------------------------
Savannah            {*}                                                                              {*}
                    {*}                                                                              No Significant archeological
                    {*}                                                                              findings will be made
                    No hazardous waste costs

------------------- -------------------------------------------------------------------------------- -------------------------------
------------------- -------------------------------------------------------------------------------- -------------------------------
Valdosta            GPC property excavation will not be larger than currently anticipated            {*}

                    Wetlands impacts are not more extensive than estimated
------------------- -------------------------------------------------------------------------------- -------------------------------
------------------- -------------------------------------------------------------------------------- -------------------------------
Waycross            Onsite excavation will not be larger than anticipated                            {*}
                                                                                                     {*}

------------------- -------------------------------------------------------------------------------- -------------------------------
------------------- -------------------------------------------------------------------------------- -------------------------------
Sanford             All impacted soils will be remediated via excavation                             {*}

                    Natural attenuation is the final remedy for groundwater
------------------- -------------------------------------------------------------------------------- -------------------------------
------------------- -------------------------------------------------------------------------------- -------------------------------
St. Augustine       AGLC will pay for thermal desorption of regulated materials excavated from
                    the harbor                                                                       Excavation in the harbor below
                                                                                                     3 feet is considered part of
                                                                                                     the property development
                                                                                                     activities

------------------- -------------------------------------------------------------------------------- -------------------------------
</TABLE>

<PAGE>

                                  Attachment 2

(1)      Costs are as expected  until year 3, when Retec  obtains a ${*} million
         cost savings ({*} versus {*}),  yielding a revised  expected cost (ECR)
         of ${*}.  Retec has  earned  performance  fees up to this point of ${*}
         million.  Absent any further changes,  Retec's performance fees for the
         remaining years are given by:

                           PF{T} = ({*}-{*})*S

                                 = ${*} million (versus {*} million)

                           PF{4}      = ({*}-{*}) * ({*}/{*})

                                      = ${*} million

                           PF{5}      = ({*}-{*}) * ({*}/{*}) = {*}
                           PF{6}      = ({*}-{*}) * ({*}/{*}) = {*}

(2)      Same, but in year 4, Retec's costs go up by $*** million,  negating the
         prior year's cost savings and increasing  the revised  expected cost to
         $***** million.

                           PF{T}      = ({*}-{*})*S
                                      = {*} million (versus {*} million)

                           PF{5}      = ({*}-{*})*({*}/{*}) = {*}
                           PF{6}      = ({*}-{*})*({*}/{*}) = {*}

(3)      Same as (1), but in year 4 Retec saves an additional ${*} million (${*}
         versus ${*}), resulting in a revised total expected cost of $80.36.

                           PF{T}      = (${*}-{*})*S
                                      = ${*} million

                           PF{5}      = ({*}-{*})*({*}/{*}) = {*} ({*})
                           PF{6}      = ({*}-{*})*({*}/{*}) = {*} ({*})

<PAGE>

                                    EXHIBIT 4

                         Categories of Cost Definitions

1.  Salaries and Wages

         Direct Labor cost specifically the actual wages and salaries  exclusive
         of any bonus or fringe benefits paid to ThermoRetec  employees directly
         engaged in the performance of Services described in this Agreement.

2.  Applied Overhead Rate

         The rate  applied  to  Direct  Labor  for the  cost of all  ThermoRetec
         overhead and G&A costs as audited by the Gas Research Institute for use
         as a forward  pricing rate and actual final audited rates to be applied
         to existing  costs  incurred for  adjustment to actual  overhead  costs
         incurred.

3.  Supplies and Materials

         The direct costs including  transportation  and applicable taxes of all
         site and office supplies and materials  purchased and consumed directly
         in the performance of Services described in this Agreement. These costs
         are exclusive of any markup or processing fees.

4.  Subcontractors

         The direct cost paid by ThermoRetec to  subcontractors  and consultants
         for work  performed  in  relation  to the  Services  described  in this
         Agreement. Amounts are exclusive of any markup or processing fee.

5.  Rentals and Leases

         Rental fees for all necessary machinery and equipment,  either owned by
         ThermoRetec  or obtained  from a  third-party  vendor for use on Sites.
         Such charges for ThermoRetec-owned  machinery and equipment shall be at
         competitive  prices  prevailing  for similar  use in the  site-specific
         areas that would be charged by a third-party vendor

<PAGE>

6.  Utilities

         The actual cost of all electric,  telephone,  water,  gas,  sewer,  and
         heating oil for operations at the Sites,  late fees or processing costs
         excluded.

7.       Travel, Transportation and Living Expenses

         All costs reasonably incurred by ThermoRetec for travel, transportation
         and living expenses of its personnel in connection with  performance of
         the Services.

8.  Miscellaneous Expenses

         Amounts  paid by  ThermoRetec  on behalf of AGLC for all other items or
         services  used or  consumed  directly  in the  performance  of Services
         described in this Agreement.  Amounts should be exclusive of any markup
         or processing fees.

9.  General

         Anything  herein  to the  contrary  notwithstanding,  nothing  in  this
         Agreement  shall permit any cost or expense  incurred by ThermoRetec to
         be recovered more than once.

<PAGE>

                                    EXHIBIT 5

                         Sample Subcontractor Agreements

    ThermoRetec Consulting Corporation

                      MASTER SUBCONTRACT SERVICES AGREEMENT

THIS AGREEMENT is made this ____ day of _________, ______ by and between:

                           ThermoRetec Consulting Corporation
                           9 Damonmill Square, Suite 3-A
                           Concord, MA 01742-2851

(hereinafter called "ThermoRetec"), and

(hereinafter called "Subcontractor")

WITNESSETH:

         ARTICLE 1 - TERM.  This  agreement  is  effective  from  __________  to
_________. The term of this Agreement may be extended by the mutual agreement of
the parties.

         ARTICLE 2 - SCOPE OF  SERVICES.  The Scope of Services  is  hereinafter
referred to as the "Work".  Subcontractor  shall provide qualified  personnel to
perform  services  generally  in  the  area  of  ___________________   services.
Individual tasks will be authorized by written Work Orders (Attachment 1) issued
by ThermoRetec from time to time and accepted in writing by Subcontractor.

         Each Work  Order  hereunder  shall  refer to this  Agreement,  shall be
governed by the terms and provisions hereof, and shall indicate the scope of and
include  any  required  data  or  specifications  for the  Work to be  performed
pursuant  thereto.  Subcontractor  shall not proceed  with any phase of any work
prior to the receipt of a written order describing such work and subcontractor's
written  acceptance  of such order.  Each Work Order will  contain a price which
will not be exceeded  without a written change to the Work Order. No other terms
not specifically noted in this Agreement will apply.

         In the event of conflict  among  documents  pertaining to the Work, the
order of priority shall be: (1) This Agreement;  (2) ThermoRetec Work Order; (3)
Written  Work  Order  Change;   (4)  Request  for  Quotation;   (5)  ThermoRetec
Specifications; (6) ThermoRetec Drawings.

         ARTICLE 3 - INTENT.  ThermoRetec  and its Client desire to complete the
Work  in  an  economical   mariner   consistent  with  the  Scope  of  Services.
Subcontractor, recognizing the trust and confidence established with ThermoRetec
by virtue of this Agreement,  agrees to use its best efforts in furnishing skill
and judgment in the  scheduling  and execution of the Work  consistent  with the
interests of ThermoRetec and in accordance with its requests and approvals.

         ARTICLE 4 - INVOICING AND PAYMENT.  ThermoRetec shall pay Subcontractor
for services rendered in accordance with Subcontractor's quoted price list dated
_________________,  which is attached and made a part hereof as  Attachment  II.
The  following  procedures  will be used in  making  reimbursements  under  this
Agreement:

         (a) No less  than  once per  month  during  the  progress  of the Work,
Subcontractor  shall  provide a separate  invoice to  ThermoRetec  for each Work
Order issued under this  Agreement for all costs  incurred by the  Subcontractor
during the period covered by the invoice.  Invoices will show a breakdown of the
work performed, broken down by the cost basis noted in each work order. Invoices
for  orders  performed  on a Time and  Material  (T&M)  cost plus  basis must be
supported  with  copies of daily  time  cards and  copies  of  receipts  for all
materials and travel expenses.  Each invoice will show the Master Services date,
Work Order No., Work Order date,  Work Order amount,  balance of funds remaining
on the Work Order,  ThermoRetec's  Project  No.,  and the name of  ThermoRetec's
Representative named on the Work Order.  Description of services provided should
document site location and detail scope of work.

         Subcontractor  will  submit  original  invoice and one copy to the Work
Order Representative.

         (b) Properly supported and approved invoices are due and payable to the
Subcontractor within five (5) working days of ThermoRetec's reimbursement by its
client but in no event more than  sixty-five  (65) days from the date of receipt
by ThermoRetec's  Accounts  Payable  department.  In order to expedite  payment,
Subcontractor  should submit invoices no later than the end of the third week of
each month.

         (c) For any work performed on a Time and Materials basis, Subcontractor
shall maintain  accurate  accounting  records of all reimbursable  costs paid or
incurred  by  Subcontractor  in  connection  with  the  Work  and  shall  permit
ThermoRetec to have access during regular business hours to all records, account
books,  vouchers,  invoices, and payroll related to the cost of the Work. In the
event ThermoRetec  desires to perform an audit of Subcontractor's  cost records,
it shall be completed  within one (1) year after the final  billing is presented
to ThermoRetec.

         (d) For Work Orders performed on a Lump Sum, Fixed Price basis, or Unit
Price basis, ThermoRetec's audit rights under 4(c) above do not apply.

         (e) At ThermoRetec's  request,  Subcontractor  shall furnish  evidence,
satisfactory to ThermoRetec,  that all labor and materials  furnished during the
period  covered by each  invoice have been paid for in full and that the Work is
not  subject to liens or claims on account  thereof.  ThermoRetec  may  withhold
payment of invoices until Subcontractor furnishes such evidence.

         Any Work performed under this Agreement which require progress payments
may be subject to a ten percent (10%)  retainage.  The final  retention  invoice
shall be submitted for payment after completion and final acceptance of the Work
by  ThermoRetec.  Payment for  retained  amounts is due 30 days from  receipt by
ThermoRetec's Subcontract Department of an approved invoice.

         Subcontractor  must submit proper  Insurance  Certificates  (Attachment
III)  and IRS  Form  W-9,  Attachment  IV  before  any  payment  will be made by
ThermoRetec under this Agreement.

         ARTICLE 5 - COMPLIANCE WITH LAWS.  Subcontractor  agrees to comply with
all applicable local,  state and federal laws and regulations  pertaining to the
Work under this Agreement.

         ARTICLE 6 - INDEPENDENT  CONTRACTOR.  The relationship of Subcontractor
to ThermoRetec  shall be that of an Independent Contractor.

         ARTICLE 7 - TERMINATION. This Agreement shall continue in force for the
term specified in Article 1; provided,  however, that ThermoRetec shall have the
right to terminate  this  Agreement  pursuant to the  provisions of this Article
hereunder.

         (a)  ThermoRetec  and Client shall have the right at any time,  with or
without cause, to terminate further performance of the Work by written notice to
Subcontractor specifying the date of termination.

         (b) This Agreement may be terminated by ThermoRetec in whole or in part
in writing in the event of a default  consisting of  substantial  failure by the
Subcontractor to fulfill its obligations  under this Agreement  through no fault
of ThermoRetec,  provided,  that no such  termination may be effected unless the
Subcontractor is given written notice of default and a reasonable opportunity to
cure the default.

         (c) If termination is effected  under 7(a) above for  ThermoRetec's  or
Client's convenience,  and Subcontractor is not in default, ThermoRetec will pay
Subcontractor  all reimbursable  costs which are due as of the effective date of
termination, and in addition, those reimbursable costs incurred in good faith by
Subcontractor  after the effective date of  termination  in connection  with (1)
demobilization  of equipment and  personnel  and (2) any  necessary  subcontract
and/or vendor settlements.

         (d) Upon receipt of termination  notice  pursuant to Paragraphs 7(a) or
7(b) above,  Subcontractor  shall (1)  promptly  discontinue  all Work  affected
(unless the notice directs otherwise),  and (2) deliver to ThermoRetec all data,
drawings,  specifications,  reports,  summaries,  and such other information and
materials as may have been  accumulated by Subcontractor in performing the Work,
whether  completed or in process,  with the exception of one record copy of such
information which shall be kept by Subcontractor.

         (e) The rights and remedies of ThermoRetec and  Subcontractor  provided
in this Article are in addition to any other rights and remedies provided by law
or under this Agreement.

         ARTICLE 8 - NOTICES. The ThermoRetec  Representative named in each Work
Order  shall  receive all  communication  related to the Work Order and shall be
available as necessary for issuing Work Orders,  Change  Orders,  inspecting and
approving  the  Work,  and for  approving  invoices  and  other  records  of the
Subcontractor.  ThermoRetec's  Representative  may  delegate  his/her  work  and
authority  to  others  as  desired,   confirming   such  action  in  writing  to
Subcontractor.

<PAGE>

         ThermoRetec's address for legal notices is:

         Name:           Charlotte E. Lawson, Corporate Contracts Administrator
         Company Name:   ThermoRetec Consulting Corporation
         Address:        9 Damonmill Square, Suite 3-A
                         Concord, MA 01742-2851

         Telephone No.:             978-371-1422
         FAX:                       978-369-9279

         Subcontractor's  Representative shall be available for conferring with,
receiving requests, and taking communications from ThermoRetec.  Subcontractor's
Representative  may delegate his/her authority to others within  Subcontractor's
organization   as  he/she   desires,   confirming  such  action  in  writing  to
ThermoRetec,   prior   to   delegation   of  said   authority.   Subcontractor's
Representative and address for notices and communications is:

         Name:
         Company Name:
         Address:

         Telephone No.:
         Fax No.:

         ARTICLE 9 - ACCESS TO THE WORK.  ThermoRetec and  ThermoRetec's  Client
shall have access at all  reasonable  times to all Work done and product made by
or for  Subcontractor  pursuant  to any Work Order  hereunder  and such Work and
product shall be the property of ThermoRetec at all times.  Subcontractor  shall
turn over to ThermoRetec all such Work done and product made upon timely request
by  ThermoRetec  during  the  progress  of  the  Work  or at the  expiration  or
termination of the Work to be performed under any Order hereunder.

         ARTICLE 10 - CONFIDENTIALITY.  Subcontractor  will, for the duration of
this  Agreement  and for a  period  of five  (5)  years  thereafter,  retain  in
confidence  all  technical  and business  information  designated  in writing as
"CONFIDENTIAL" and disclosed by ThermoRetec to Subcontractor except:

         (a)      ThermoRetec's and/or ThermoRetec's  Client's technical and
business information  previously known to Subcontractor; or

         (b)      ThermoRetec's  and/or  ThermoRetec's  Client's  technical and
business  information which becomes known to Subcontractor through legal means;
or
         (c) ThermoRetec's and/or ThermoRetec's  Client's technical and business
information  which is public knowledge or subsequently  becomes public knowledge
through no fault of Subcontractor and without breach of this Agreement.

         Neither  party  shall  be  liable  for the  inadvertent  or  accidental
disclosure of such information,  if such disclosure occurs, despite the exercise
of the  same  degree  of care as such  party  normally  takes  to  preserve  and
safeguard its own confidential information.

         ARTICLE 11 - LIABILITY,  INDEMNIFICATION  AND INSURANCE.  Subcontractor
agrees to indemnify, save and keep harmless ThermoRetec and ThermoRetec's Client
from and against any and all loss,  damage,  cost, charges or expenses or claims
for same which  ThermoRetec or ThermoRetec's  Client may suffer or sustain or be
in any way subjected to on account of injury to or death of any person or damage
to or  loss  of  property  arising  out of the  negligent  performance  of  this
Agreement by Subcontractor, its servants, employees, agents or representatives.

         Subcontractor  agrees to indemnify,  hold harmless,  protect and defend
ThermoRetec,   its   successors  or  assigns,   its  clients  and  the  user  of
Subcontractor's  goods and  services  against  all  suits  and from all  claims,
demands,  judgment, costs and attorney's fees for actual or alleged infringement
of letters  patent,  trademarks  and  copyrights  in  connection  with goods and
services  supplied  hereunder,  provided that they are used as normally intended
and are not made to ThermoRetec's own specifications.

         Subcontractor  agrees  to  provide  and  maintain  at its own  expense,
insurance  coverage until the Work is completed and accepted by ThermoRetec  and
to furnish  certificates  (Attachment III) from its insurance  carrier,  showing
that Subcontractor carries insurance in the following minimum limits:

         (a) Worker's  Compensation,  including  coverage  under  United  States
Longshoremen's and Harbor Worker's Act where applicable, at the statutory limits
for the  state or  states  in  which  the  work is to be  performed.  Employer's
Liability insurance in the amount of $500,000.

         (b) Comprehensive  General Public Liability  insurance in the amount of
$1,000,000  combined  single  limit  for  bodily  injury  and  property  damage,
including product liability,  completed  operations,  contractual liability and,
where applicable, coverage for damage caused by blasting, collapse or structural
injury and/or damage to underground utilities.

         (c)  Automobile  Public  Liability  in the  amount  of  $1,000,000  per
occurrence  for  bodily  injury  and  property   damage,   including   non-owned
automobiles.

         All  such  policies  shall  be in  form  and  with  insurance  carriers
acceptable to ThermoRetec. Subcontractor will cause ThermoRetec to be designated
as additional insured under such policy.  Subcontractor must provide ThermoRetec
with thirty (30) days prior written notice of cancellation  before  cancellation
of any policy will be effective.

         ARTICLE  12 -  FORCE  MAJEURE.  Either  party  shall  be  excused  from
performance  of its  obligations  under this  Agreement,  other than  payment of
monies when due, in the event and to the extent that such performance is delayed
or prevented by any cause or event beyond the  reasonable  control of such party
including,  but not  limited  to,  any act of God or of the public  enemy,  war,
insurrection,  riot, civil disturbances,  labor dispute,  fire, flood, washouts,
storms, landslides,  explosion, any embargo, or any act or order of any military
or civil authority, including courts. Within a reasonable period of time after a
party  determines that an event of force majeure exists which delays or prevents
the performance of its obligations  under this Agreement,  such party shall give
the other party notice thereof,  and such party shall use all reasonable efforts
to eliminate  such event in so far as possible with a minimum of delay.  Nothing
herein  contained  shall require such party to submit to what it considers to be
unreasonable conditions or restrictions.

         ARTICLE 13 - SUCCESSORS AND ASSIGNS.  This Agreement shall inure to the
benefit  of  and be  binding  upon  the  parties  hereto  and  their  respective
successors  and assigns.  Neither party may assign its interests  herein (unless
the assignee assumes in writing  assignor's  obligations  hereunder) without the
prior  written  consent of the party,  which  consent  will not be  unreasonably
withheld.  No assignment shall operate to relieve the assignor of its obligation
under this Agreement.

         ARTICLE 14 - HEALTH & SAFETY. As the prime contractor, ThermoRetec will
be responsible for supplying copies of the Project Specific Health & Safety Plan
("Plan") to the Subcontractor  prior to the initiation of any work activities at
a Project site.  The Plan will  establish the health and safety  protocols to be
observed by all Subcontractor personnel assigned to the project.

         Subcontractor's  personnel  will  review  the Plan with the  designated
Health & Safety  Coordinator  prior to beginning any work on a Work Order. It is
the responsibility of the Subcontractor's personnel to abide by the requirements
of the Plan or take  exception  in  writing  prior to  initiation  of the  Work.
Failure  to  abide by the  requirements  of the Plan  may  result  in  immediate
dismissal of  Subcontractor  Personnel from the job site and the  termination of
this Agreement.

         Before Subcontractor's  personnel are allowed on the job, Subcontractor
must furnish  proper  documentation  to the  ThermoRetec  representative  of any
required  OSHA  Training,  Drug Testing,  Medical  Surveillance  and  Respirator
Fit-Testing for all Subcontractor personnel on the job.

         ARTICLE  15  -  APPLICABLE  LAW.  The  validity,   interpretation   and
performance of these terms and  conditions  shall be governed by the laws of the
Commonwealth of Massachusetts.

         ARTICLE 16 -  ATTACHMENTS.  The following  Attachments  hereby become a
part of this Agreement:

                  Attachment I - Sample Work Order Form
                  Attachment II - Subcontractor's Price Quote
                  Attachment III- Subcontractor's Certificate of Insurance
                  Attachment IV- Subcontractor's IRS Form W-9

<PAGE>

IN WITNESS WHEREOF, the parties have caused these presents to be executed on the
date first hereinabove written.

ThermoRetec Consulting Corporation

by:                                                           by:

Charlotte E. Lawson                                           Name

Corporate Contracts Administrator

Title                                                         Title

Date:                                                         Date:
     ---------------------------------------

<PAGE>

                                  ATTACHMENT I

                                   WORK ORDER

                      Project No.:________________________

                 Work Order No.:________________________________

ThermoRetec Representative:_________________/ThermoRetec Project Assistant (A/P)
                           Address:
                           Address:

                           Phone:                    FAX:

         In accordance with the Subcontract  Agreement between Subcontractor and
ThermoRetec  dated  _______________,  this  Work  Order  describes  the Scope of
Services, Time Schedule, and Price and Payment Terms for the Project known as:

Scope of Services:

Time Schedule:             All work to be completed
-------------

Price Not To Exceed:       Total costs not to exceed . . . . . . . . . . . . .$
-------------------

QA/QC Criteria/Health & Safety Requirements:

         Acceptance  of the  terms of this  Work  Order is  acknowledged  by the
following  signatures of the  Authorized  Representatives  of the parties to the
Agreement.  This Work Order consists of this document and any supplemental pages
attached and referenced hereto.

Approval and Acceptance:

ThermoRetec Consulting Corporation

Signature                                                     Signature

Name                                                          Name

Date                                                          Date

<PAGE>

                                 ATTACHMENT III

                            CERTIFICATE OF INSURANCE

<PAGE>

                                  ATTACHMENT IV

W-9               PAYER'S REQUEST FOR TAXPAYER IDENTIFICATION NUMBER

Name of Subcontractor As Shown on Federal Account

Address

City, State, Zip Code

Taxpayer Identification Number (TIN)

Employer ID Number                 OR                Social Security Number

Please check appropriate box:

                  Individual/Sole Proprietor

                  Corporation

                  Partnership

                  Other:

CERTIFICATION           Under  the  penalties  of  perjury,   I  certify  the
                        information  provided  on this form is true,  correct
                        and complete.

Signature                                                     Date

Please check, if this applies to your Company.

Minority-Owned Business Enterprises

Women-Owned Business Enterprises

<PAGE>

                                    EXHIBIT 6

                             Approved Subcontractors

PROPOSED LIST OF THERMORETEC SUBCONTRACTORS FOR AGLC OUTSOURCING

1)       AE Drilling                                  Driller

2)       Alliance                                     Driller

3)       BFI                                          Landfill/Hauler

4)       Chambers - Richland County Landfill          Landfill/Hauler

5)       Creamer                                      Remediation Contractor

6)       Donaldson, Garrett & Associates              Surveyor

7)       EarthTech                                    Remediation Contractor

8)       Exponent                                     Eco-Risk

9)       Gradient                                     Risk Assessment

10)      IT Corporation                               Remediation Contractor

11)      Laidlaw                                      Landfill/Hauler

12)      Ogden                                        Eco-Risk

13)      PhytoWorks                                   Phytoremediation

14)      SE Technologies                              Technology Vendor

15)      Savannah Laboratories                        Lab

16)      Superior Services                            Landfill

17)      TRC Garrow                                   Arch/Historic Consultant

18)      WRS Infrastructure and Environment, Inc.     Remediation and
                                                      Construction

18)      Winter Environmental                         Remediation Contractor

19)      Williams Environmental Services              Remediation Contractor

20)      Law Engineering & Environmental              Env. Consultant

21)      Lancaster Laboratories                       Lab

EXISTING TRT MSAs

21)      AES                                          Laboratory

22)      TEG                                          Driller

23)      Alliance                                     Driller

24)      Analytical Services                          Laboratory

25)      ASI Analytical Services                      Laboratory

26)      Augusta Industrial                           Waste Broker

27)      CSRA Analytical Labs                         Laboratory

28)      ECM CAD and Graphics                         CAD

29)      EarthTech                                    Remediation Contractor

30)      Ferguson Harbor                              Remediation Contractor

31)      Hussey, Gay, Bell and DeYoung                Engineering Consultant

32)      Savannah Laboratories                        Laboratory

34)      Winter Environmental                         Remediation Contractor

<PAGE>

 SCHEDULE 8.5

Time Period in which Effective Date of            Amount to be Paid to AGLC by
Termination Occurs                                ThermoRetec

1/1/2000 - 6/30/2000                              ${*}
7/1/2000 - 6/30/2001                              ${*}
7/1/2001 - 10/28/2001                             ${*}

{*} The  redacted  portions  indicated  by  this  symbol  are the  subject  of a
    confidential  treatment  request  and have been  filed  separately  with the
    Securities and Exchange Commission.

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