Document:

nonqualifiedstockoption - Tom Steele

NONQUALIFIED STOCK OPTION

	THIS NONQUALIFIED STOCK OPTION (this "Option") is granted this 23rd day of July 1997, by
INDUSTRIAL ECOSYSTEMS, INC., a Delaware corporation (the "Company"), pursuant to a resolution of the board
of directors of the Company, to Bella Rosa, Ltd. (hereinafter "Optionee").

 

Grant

 

	1.	Grant of Option.  The Company hereby irrevocably grants to Optionee the right and option to purchase
all or any part of an aggregate of two hundred fifty thousand (250,000 ) shares of the Company's restricted common
stock, par value $0.001 (the "Common Stock") on the terms and conditions hereinafter set forth.

	2.	Exercise Price.  The exercise price of this Option shall be ten cents ($ 0.10) per share.

	3.	Term of Option.  Subject to the other provisions contained herein, this Option may be exercised, in
whole or in part, at any time prior to 12:00 midnight five (5) years from the date of this Option.

	4.	Shareholder's Rights.  The Optionee shall have the rights of a shareholder only with respect to
Common Stock fully paid for by Optionee under this Option.

	5.	Persons Entitled to Exercise.   During the Optionees lifetime, this Option can only be exercised by
the Optionee, and neither this Option nor any right hereunder can be transferred other than by testamentary disposition
or the laws of descent and distribution.  Neither this Option nor any right hereunder shall be subject to lien, attachment,
execution, or similar process.  In the event of any alienation, assignment, pledge, hypothecation, or other transfer of this
Option or any right hereunder or in the event of any levy, attachment, execution, or similar process, this Option and all
rights granted hereunder shall be immediately null and void.

	6.	Adjustment to Number of Shares of Common Stock.  The number of shares of Common Stock subject
to this Option shall be adjusted to take into account any stock split, stock dividend, or recapitalization of the Common
Stock of the Company.

	7.	Method of Exercise.  This Option may be exercised, in accordance with all of the terms and conditions
set forth in this Option, by delivery of a notice of exercise, a form of which is attached hereto as Exhibit "A" and
incorporated herein by this reference, setting forth the number of Options to be exercised along with either:

		(a)	A certified check or bank check payable to the order of the Company in the amount of the
full exercise price of the Common Stock being purchased; or

		(b)	Shares of Common Stock of the Company already owned by the Optionee equal to the
exercise price with the Common Stock valued at its fair market value based on the closing bid
quotation for such stock on the close of business on the day last preceeding the date of exercise of
such Option, as reported or quoted on the NASDAQ System or, if not included in the NASDAQ
System, shall mean the closing bid quotation for such stock as determined by the Company through
any other reliable means of determination available on the close of business on the day last preceeding
the date of exercise of such Option; or

		(c)	Options or other rights to purchase Common Stock valued at the amount by which the
closing bid quotations as determined in accordance with Clause (b) above of the Common Stock
subject to the options or other rights exceeds the exercise or purchase price provided on such options
or rights; or  

		(d)	Cancellation of debt owed by the Company to the Option Holder, including debt from
professional fees, services, employment relationships or otherwise, upon presentation of an invoice
for services provided to the Company.

As soon as practicable after receipt by the Company of such notice a certificate or certificates representing such shares
of Common Stock shall be issued in the name of the Optionee, or, if the Optionee shall so request in the notice
exercising the Option, in the name of the Optionee and another person jointly, with right of survivorship, and shall be
delivered to the Optionee.  If this Option is not exercised with respect to all Common Stock subject hereto, Optionee
shall be entitled to receive a similar Option of like tenor covering the number of shares of Common Stock with respect
to which this Option shall not have been exercised.

	8.	Availability of Shares.  During the term of this Option, the Company shall at all times keep available
for issuance the number of shares of Common Stock subject to this Option.

	9.	Limitations on Right to Exercise.  If the board of directors of the Company, in its sole discretion, shall
determine that it is necessary or desirable to list, register, or qualify the Common Stock under any state or federal law,
this Option may not be exercised, in whole or part, until such listing, registration, or qualification shall have been
obtained free of any conditions not acceptable to the board.

	10.	Registration Rights.  At such time as the Company files a registration statement to register securities
under the Securities Act of 1933, as amended, the Company shall use its best efforts to register the shares underlying
the option granted herein, provided, however, that such shares are eligible for inclusion under the form of registration
undertaken by the Company.  The Company will pay all expenses of such registration, including legal, accounting and
filing fees.  The rights granted under this paragraph are granted to the individual named on the Option, subject to the
eligibility requirements of the applicable form of registration and the exercise and transfer restrictions included in the
Option and may not be transferred or assigned.

	11.	Restrictions on Transfer.  The Option and the Common Stock subject to the Option (collectively
referred to as the "Securities") are subject to registration under the Securities Act of 1933, as amended (the "Securities
Act"), and any  applicable state securities statutes.  Optionee acknowledges that unless a registration statement with
respect to the Securities is filed and declared effective by the Securities and Exchange Commission and the appropriate
state governing agency, the Securities have or will be issued in reliance on specific exemptions from such registration
requirements for transactions by an issuer not involving a public offering and specific exemptions under state statutes.
Any disposition of the Securities may, under certain circumstances, be inconsistent with such exemptions.  The
Securities may be offered for sale, sold, or otherwise transferred only if (i) registered under the Securities Act, and in
come cases, under the applicable state securities acts, or, if not registered, (ii) only if pursuant to an exemption from such
registration requirements and only after the Optionee provides an opinion of counsel or other evidence satisfactory to
the Company to the effect that registration is not required.  In some states, specific conditions must be met or approval
of the securities regulatory authorities may be required before any such offer or sale.  If rule 144 is available (and no
assurance is given that it will be), only routine sales of the Common Stock in limited amounts can be made after one
year following the acquisition date of the Securities, as determined under rule 144(d), in accordance with the terms and
conditions of rule 144.  The Company is under no obligation to make rule 144 available.  In the event rule 144 is not
available, compliance with regulation A or some other disclosure exemption may be required before the Optionee can
sell, transfer, or otherwise dispose of the Securities without registration.  The Company and its registrar and transfer
agent will maintain a stop transfer of the Securities, and any certificate representing the Securities will bear a legend
in substantially the following form so restricting the sale or other transfer thereof:

	THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") AND ARE
"RESTRICTED SECURITIES" WITHIN THE MEANING OF RULE 144 PROMULGATED
UNDER THE SECURITIES ACT.  THE SECURITIES HAVE BEEN ACQUIRED FOR
INVESTMENT AND MAY NOT BE SOLD OR TRANSFERRED WITHOUT COMPLYING WITH
RULE 144 IN THE ABSENCE OF AN EFFECTIVE REGISTRATION OR OTHER COMPLIANCE
UNDER THE SECURITIES ACT.

	If the Securities are not registered, the Company may refuse to transfer the Securities to any transferee who
does not furnish in writing to the Company the same representations and warranties set forth in this paragraph and agree
to the same conditions with respect to such Securities as are set forth herein.  The Company may further refuse to
transfer the Securities if certain circumstances are present reasonably indicating that the proposed transferee's
representations are not accurate.  In any event, in the absence of an effective registration statement covering the
Securities, the Company may refuse to consent to any transfer in the absence of an opinion of legal counsel, satisfactory
to and independent of counsel of the Company, that such proposed transfer is consistent with the above conditions and
applicable securities laws.

	11.	Record Owner.	The Company may deem the Optionee as the absolute owner of this Option for all
purposes.  This Option is exercisable only by the Optionee or, by the Optionees duly designated or appointed
representative.  This Option is not assignable.

	12.	Validity and Construction.  The validity and construction of this Option shall be governed by the laws
of the state of Delaware.

	EXECUTED as of the date first above written.

The Company:						Optionee:

 

INDUSTRIAL ECOSYSTEMS, INC.			Bella Rosa, Ltd.

By_________________________________________	__________________________________________

     Its Duly Authorized Officer				

	EXHIBIT A

Form of Exercise

(to be signed only upon exercise of Option)

 

TO:	INDUSTRIAL ECOSYSTEMS, INC.

	

	

	The undersigned, the owner of the attached Option, hereby irrevocably elects to exercise the purchase rights
represented by the Option for, and to purchase thereunder, ______________ shares of Common Stock of Industrial
Ecosystems, Inc.  Enclosed is payment in the amount of $___________________________, the exercise price of the
Common Stock to be acquired.  Please have the certificate(s) registered in the name of
_____________________________________________________________________________________________
and delivered to _____________________________________________________________________.  If this exercise
does not include all of the Common Stock covered by the attached Option, please deliver a new option of like tenor for
the balance of the Common Stock to the undersigned at the foregoing address.

	DATED this ____ day of ______________, ______.  

							________________________________________

						 	Signature of Optionee

							Tax ID #EXHIBIT 10.59

                              Settlement Agreement
                            dated December 30, 1999,
                                     between
                             New York Skyline, Inc.
                                       and
                          Empire State Building Company
<PAGE>
                              SETTLEMENT AGREEMENT

                  This  Agreement is entered into as of December 30, 1999 by and
between New York  Skyline,  Inc.  ("Skyline"),  a New York  corporation  with an
office at 350 Fifth Avenue, New York, New York and Empire State Building Company
("ESBC"), a New York partnership with offices at 350 Fifth Avenue, New York, New
York.

     WHEREAS,  the parties to this Agreement are parties in an action titled New
York Skyline,  Inc. v. Empire State  Building  Company,  et al.,  pending in the
Supreme Court of the State of New York, County of New York (Index No. 606541/97)
(the "Action"); and

     WHEREAS,  the parties to this Agreement each desire,  in order to avoid the
further expense, inconvenience and burden of litigation, to settle their dispute
and dispose of the Action and the claims asserted therein upon and the terms and
conditions set forth below;

     NOW THEREFORE,  in consideration of the mutual covenants herein  contained,
and  other  good  and  valuable  consideration,   receipt  of  which  is  hereby
acknowledged, the parties to this Agreement stipulate and agree as follows:

                  Simultaneously  with  the  execution  of this  Agreement,  the
parties to this Agreement shall execute a stipulation  dismissing each and every
cause of action  asserted by Skyline in the Action in the form annexed hereto as
Exhibit A (the  "Stipulation").  ESBC will use  reasonable  efforts  to have the
other parties to the Action  execute the  Stipulation.  In the event that all of
the parties to the Action execute the Stipulation,  ESBC shall promptly file the
fully executed  stipulation  with the clerk of the court.  In the event that not
all of the parties to the action execute the Stipulation within thirty (30) days
of the execution of this Agreement,  ESBC and Skyline shall make a motion to the
court  seeking an order  dismissing  each and every cause of action  asserted by
Skyline as against  each of the  parties  to the  Action  who has  executed  the
Stipulation.

         1. Simultaneously  with the execution of this Agreement,  Skyline shall
provide to Empire State  Building  Company  ("ESBC") an executed  release in the
form annexed  hereto as Exhibit B. At the same time,  Skyline  shall  provide to
ESBC executed  release (the  "Additional  Releases") for Empire State  Building,
Inc. ("ESB, Inc."), Empire State Building Associates ("ESBA"),  Neil H. Kessner,
Kessner & Cyruli, f/k/a Neil H. Kessner & Associates (collectively,  "Kessner"),
Helmsley-Spear,  Inc.  ("Helmsley-Spear"),  Stephen A. Tole )  ("Tole"),  Eileen
Aluska  ("Aluska") and Peter L. Malkin ("Malkin")  (ESBC,  Inc., ESBA,  Kessner,
Helmsley-Spear,  Tole,  Aluska  and  Malkin  are  collectively  the  "Additional
Parties") in the forms collectively annexed hereto as Exhibit C. ESBC's counsel,
Duane,  Morris &  Heckscher  LLP  ("DMH"),  shall  hold  each of the  Additional
Releases in escrow  until such time as Skyline  receives a release  described in
paragraph 3 below from an Additional  Party. At such time, DMH shall provide the
Additional  Release to the  Additional  Party who has  provided  Skyline  with a
release.  If Skyline does not receive such a release  from an  Additional  Party
within  thirty  (30) days of the  execution  of this  Agreement,  then DMH shall
promptly return the Additional Release for that Additional Party to Skyline.

<PAGE>
         2.  Simultaneously  with the  execution of this  Agreement,  ESBC shall
provide to Skyline an executed  release in the form annexed hereto as Exhibit D.
ESBC  shall  use  reasonable   efforts  to  have  ESB,  Inc.,   ESBA,   Kessner,
Helmsley-Spear,  Tole, Aluska and Malkin provide to Skyline executed releases in
the forms  collectively  annexed  hereto as Exhibit E within thirty (30) days of
thee execution of this Agreement.

         3.  Simultaneously  with the execution of this  Agreement,  Skyline and
ESBC shall  execute the Second  Modification  of License  Agreement  in the form
annexed hereto as Exhibit F.

         4.  Simultaneously  with the execution of this  Agreement,  Skyline and
ESBC shall  execute the Third Lease  Modification  Agreement  to the Lease dated
February 266, 1993 in the form annexed hereto as Exhibit G.

         5. On or before  April 30,  2000,  Skyline  may  exercise  an option to
extend the lease dated April 14, 1994 in  substantially  the form annexed hereto
as Exhibit H. However,  if Skyline decides not to exercise the option,  it shall
notify ESBC of its decision not to extend the lease by March 31, 2000.

         6. In  consideration  of  Skyline  dismissing  all its  alleged  claims
against ESBC in  connection  with the Lease dated  February 26, 1993,  the Lease
Modification  Agreement  dated February 8, 1994, the Lease dated April 14, 1994,
the License  Agreement  dated  February 26, 1993,  and the License  Modification
Agreement dated March 1996, ESBC expressly  acknowledges that any and all claims
for rent and  licensee  fees  previously  alleged  by ESBC to be owed by Skyline
(which claims are now released pursuant to the terms and conditions of Exhibit D
hereto) relate solely to the aforementioned agreements.

         7. This Agreement shall be construed in accordance with the laws of the
State of New York, without regard to the conflict of laws provisions thereof.

     8. The  parties to this  Agreement  agree to be  responsible  for their own
costs and attorneys' fees with regard to the Action.

<PAGE>
     9. This Agreement may not be waived, altered, amended or modified except by
an agreement in writing and signed by the parties to the Agreement.

     10. The terms of this  Agreement  shall be  binding on the  parties to this
Agreement and their successors and assigns.

     11. At and after the  execution  of this  Agreement,  the  parties  to this
Agreement shall execute such further  documents and take such further actions as
are necessary or  appropriate to effectuate the provisions of this Agreement and
the settlement provided for herein.

     12. Other than as to any  representations  set forth herein, this Agreement
is without an admission of any liability of any party to any other party, and is
made solely to avoid the expense and inconvenience of further  litigation.  Each
of the  parties  to this  Agreement  represents  that it is  entering  into  and
executed this Agreement  voluntarily,  and no force, threat,  duress,  coercion,
fraud or improper  means has been  exerted  upon them by any person with respect
thereto.

     13. Except as otherwise required or provided herein or hereby, neither this
Agreement nor any of the terms hereof,  nor any statements made herein,  nor any
negotiations  or  proceedings  in connection  herewith,  shall  constitute or be
construed  as or be deemed to be  evidence  of an  admission  on the part of any
party to this Agreement of any liability or wrongdoing whatsoever,  of the truth
or untruth of any of the  statements  made or positions  taken by any party with
respect to the Action; nor shall this Agreement,  or any of the terms hereof, or
any statements  made herein,  or any  negotiations  or proceedings in connection
herewith,  be offered or received in evidence or used in any proceedings against
the  parties  to  this  Agreement  or  used in any  proceeding  for any  purpose
whatsoever except with respect to effectuation and enforcement of this Agreement
and the resolution of the Action.

     14. The parties to this Agreement  shall cause their  respective  officers,
directors, agents, servants, employees to abide by the terms of this Agreement.

     15. This Agreement may be executed in counterparts,  each of which shall be
deemed  an  original,  but all of  which  shall  constitute  one  and  the  same
Agreement.

     16. If any  provision  of this  Agreement or the  application  of all other
provisions shall not be affected thereby.

<PAGE>
     17. Whenever the text hereof requires, the use of the singular number shall
include the appropriate plural number.

     IN WITNESS  WHEREOF,  the  parties to this  Agreement  have  executed  this
Agreement as of this 30th day of December 1999.

NEW YORK SKYLINE, INC.

By: /s/ Robert Brenner
Name: Robert Brenner

Title: President/Chief
Executive Officer

EMPIRE STATE BUILDING COMPANY

By: Helmsley-Spear, Inc., Agent

By: /s/ John B. Trainor, Jr.
-------------------------
Name: John B. Trainor, Jr.
Title: Senior Vice President

<PAGE>

                                    EXHIBIT A

                                    CONTAINS:
                          STIPULATION OF DISCONTINUANCE
                                 WITH PREJUDICE

<PAGE>

                                    EXHIBIT B

                                    CONTAINS:
                                RELEASE OF CLAIM
                      AGAINST EMPIRE STATE BUILDING COMPANY
                                       BY
                             NEW YORK SKYLINE, INC.

<PAGE>

                                    EXHIBIT C

                                    CONTAINS:
                                RELEASE OF CLAIM
                            AGAINST OTHER DEFENDANTS
                                       BY
                             NEW YORK SKYLINE, INC.

<PAGE>

                                    EXHIBIT D

                                    CONTAINS:
                                RELEASE OF CLAIM
                         AGAINST NEW YORK SKYLINE, INC.
                                       BY
                         EMPIRE STATE BUILDING COMPANY.

<PAGE>

                                    EXHIBIT E

                                    CONTAINS:
                                RELEASE OF CLAIM
                         AGAINST NEW YORK SKYLINE, INC.
                                       BY
                                OTHER DEFENDANTS.

<PAGE>

                                    EXHIBIT F

                                    CONTAINS:
                               SECOND MODIFICATION
                              OF LICENSE AGREEMENT
                                     BETWEEN
                          EMPIRE STATE BUILDING COMPANY
                                       AND
                             NEW YORK SKYLINE, INC.

<PAGE>

                                    EXHIBIT G

                                    CONTAINS:
                        THIRD AMENDMENT OF LEASE BETWEEN
                          EMPIRE STATE BUILDING COMPANY
                                       AND
                             NEW YORK SKYLINE, INC.
                              CONCERNING OFFICES AT
                   350 FIFTH AVENUE, NEW YORK, NEW YORK 10118

<PAGE>

                                    EXHIBIT H

                                    CONTAINS:
                             OPTION TO EXTEND LEASE
                              CONCERNING OFFICES AT
                   350 FIFTH AVENUE, NEW YORK, NEW YORK 10118

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