Document:

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                                                                     EXHIBIT 4.5

                                    [FORM OF]
                          REGISTRATION RIGHTS AGREEMENT

         Registration Rights Agreement (this "Agreement"), dated as of       by
and between The Ultimate Software Group, Inc., a Delaware corporation (the
"Company"), and the undersigned purchaser ("Purchaser").

         WHEREAS, the Company and Purchaser have entered into a Subscription
Agreement (the "Subscription Agreement"), dated           pursuant to which
Purchaser subscribed to purchase and the Company has agreed to sell (i) the
number of shares of common stock, par value $0.01 per share, of the Company
("Common Stock") set forth on Schedule A hereto and (ii) a warrant to purchase
the number of shares of Common Stock set forth on Schedule A at an exercise
price of $4.00 per share (the "Warrant");

         WHEREAS, the shares of Common Stock set forth on Schedule A hereto,
including the shares of Common Stock which Purchaser shall be entitled to
purchase upon exercise of the Warrant, are hereinafter collectively referred to
as the "Shares"; and

         WHEREAS, the Company and Purchaser desire to provide for certain
arrangements with respect to the registration of the Shares under the Securities
Act of 1933, as amended, and the rules and regulations thereunder (the
"Securities Act").

         NOW THEREFORE, in consideration of the mutual covenants and agreements
set forth herein, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto, intending to be
legally bound, hereby agree as follows:

         SECTION 1. DEFINITIONS. As used in this Agreement, the following terms
have the meanings indicated below or in the referenced sections of this
Agreement:

         "Person" means an individual, a partnership, a corporation, a limited
liability company or partnership, an association, a joint stock company, a
trust, a business trust, a joint venture, an unincorporated organization or a
government entity or any department, agency, or political subdivision thereof.

         "Piggyback Registration" shall have the meaning set forth in Section
2(a) of this Agreement.

         "Registrable Securities" means the Shares held by Purchaser; provided,
that a Registrable Security ceases to be a Registrable Security when (i) it is
registered under the Securities Act and disposed of in accordance with the
registration statement covering it, (ii) it is sold or transferred in accordance
with the requirements of Rule 144 (or similar provisions then in effect)
promulgated by the SEC under the Securities Act ("Rule 144"), or (iii) it is
eligible to be sold or transferred under Rule 144 as confirmed to the Company
and Purchaser in a Resale Opinion (as defined in Section 7) that has been
delivered to Purchaser and the Company.

         "SEC" shall mean the United States Securities and Exchange Commission.

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         "Securities Act" shall have the meaning set forth in the second recital
of this Agreement.

         "Shares" shall have the meaning set forth in the second recital of this
Agreement.

         SECTION 2. PIGGYBACK REGISTRATIONS.

         (a) RIGHT TO PIGGYBACK. Whenever the Company proposes to register
common stock under the Securities Act of 1933 in connection with a public
offering solely for cash on Form S-1, S-2 or S-3 (or any replacement or
successor forms), the Company shall promptly give Purchaser written notice of
such registration (a "Piggyback Registration"). Upon the written request of
Purchaser given within 20 days following the date of such notice, the Company
shall, subject to Section 2(c), cause to be included in such registration
statement and use its reasonable efforts to be registered under the Securities
Act all Registrable Securities that Purchaser shall have requested to be
registered. All Registrable Securities that Purchaser shall have requested to be
registered may be made subject to an underwriters' over-allotment option, if so
requested by the managing underwriter. The Company shall have the absolute right
to withdraw or cease to prepare or file any registration statement for any
offering referred to in this Section 2(a) without any obligation or liability to
Purchaser.

         (b) EXPENSES. Purchaser shall bear and pay all expenses incurred in
connection with any registration, filing or qualification of Registrable
Securities with respect to a registration pursuant to this Section 2, including
without limitation Purchaser's pro rata share of all registration, filing, and
qualification fees and printers' and accounting fees relating or apportionable
thereto.

         (c) PRIORITY ON REGISTRATIONS. If the managing underwriter shall advise
the Company in writing (with a copy to Purchaser) that, in the opinion of the
underwriter, marketing factors require a limitation of the number of securities
requested to be included in a registration pursuant to this Section 2, then the
Company will include in such registration, to the extent of the amount and class
which the Company is so advised can be sold without such material adverse effect
in such offering: FIRST, all securities proposed to be sold by the Company for
its own account; SECOND, all securities requested to be included in such
registration by J.P. Morgan Investment Corporation, Sixty Wall Street SBIC Fund,
L.P., HarbourVest Partners V-Direct Fund L.P. and their respective permitted
assigns; THIRD, the Registrable Securities requested to be included in such
registration by Purchaser pursuant to this Section 2, and all other securities
being registered pursuant to the exercise of contractual rights comparable to
the rights granted in this Section 2, including the contractual rights of
Aberdeen Strategic Capital LP, in proportion (as nearly as practicable) to the
amount of such Shares and securities of the Company owned by each holder thereof
requesting inclusion of such Shares and securities in such registration; and
FOURTH, all other securities requested to be included in such registration.

         SECTION 3. HOLDBACK AGREEMENT. To the extent not inconsistent with
applicable law, Purchaser agrees, upon the request of the managing underwriter
or underwriters in an underwritten offering, not to effect any sale or
distribution of securities of the Company of the same class as the securities
included in such registration statement, or any securities convertible into or
exchangeable or exercisable for such securities (except as part of such
registration), during the 180-day period beginning on the effective date of such

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registration statement ("Resale Restrictions"), if and to the extent requested
by the managing underwriter or underwriters; PROVIDED that (a) Registrable
Securities owned by Purchaser are registered and sold pursuant to such
registration statement and (b) all other security holders registering securities
pursuant to the exercise of registration rights are subject to Resale
Restrictions that are no more favorable to such holders than those applicable to
Purchaser.

         SECTION 4. REGISTRATION PROCEDURES.

         (a) OBLIGATIONS OF THE COMPANY. Whenever Purchaser requests the
registration of any Registrable Securities pursuant to this Agreement, the
Company shall use its reasonable efforts to register and to permit the sale of
the Registrable Securities. To carry out this obligation, the Company shall take
all steps reasonably necessary to effect the registration of the Registrable
Securities contemplated hereby.

         (b) PURCHASER INFORMATION. In the event of any registration by the
Company, from time to time, the Company may require Purchaser to furnish to the
Company information regarding Purchaser and the distribution of the securities
subject to the registration, and Purchaser shall furnish all such information
requested by the Company.

         (c) NOTICE TO DISCONTINUE. The Company shall notify Purchaser (a
"Notice"), at any time when a prospectus is required to be delivered under the
Securities Act, of any event as a result of which the prospectus or any document
incorporated therein by reference contains an untrue statement of a material
fact or omits to state any material fact necessary to make the statements
therein not misleading in light of the circumstances under which such statements
were made, and prepare a supplement or amendment to the prospectus or any such
document incorporated therein so that thereafter the prospectus will not contain
an untrue statement of a material fact or omit to state any material fact
necessary to make the statements therein not misleading in light of the
circumstances under which said statements were made. Purchaser agrees that, upon
receipt of a Notice from the Company, it will discontinue disposition of
Registrable Securities until it receives copies of the supplemented or amended
prospectus as described above. In addition, if the Company requests, Purchaser
will deliver to the Company all copies, other than permanent file copies then in
Purchaser's possession, of the prospectus covering the Registrable Securities
current at the time of receipt of the Notice.

         SECTION 5. INDEMNIFICATION.

         (a) INDEMNIFICATION BY COMPANY. The Company agrees to indemnify and
hold harmless, to the full extent permitted by law, (i) Purchaser, (ii) each
Person who controls Purchaser (within the meaning of the Act), and (iii) the
trustees, officers, directors, partners, employees, representatives and/or
agents, as applicable, of each Person described in the foregoing clauses (i) and
(ii), from and against any and all losses, claims, damages, liabilities and
expenses caused by any untrue or alleged untrue statement of material fact
contained in the registration statement, prospectus or preliminary prospectus
(or any amendments or supplements thereto), including any document incorporated
by reference therein, or caused by any omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein (in case of a prospectus or preliminary prospectus, in light
of the circumstances under which they were made) not misleading, except insofar

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as the same are caused by, contained in, or, with respect to any material
omission, omitted from, any information with respect to such indemnified party
furnished in writing to the Company by Purchaser or such indemnified party
expressly for use therein. The Company will also indemnify and hold harmless (A)
any underwriters of the Registrable Securities, (B) each Person who controls
such underwriters (within the meaning of the Act), and (C) the officers,
directors, partners, employees, representatives and/or agents of each Person
described in the foregoing clauses (A) and (B), to the same extent as provided
above with respect to the indemnification of the Purchaser.

         (b) INDEMNIFICATION BY PURCHASER. Purchaser agrees to indemnify and
hold harmless, to the full extent permitted by law, (i) the Company, (ii) each
Person who controls the Company (within the meaning of the Act), and (iii) the
officers, directors, partners, employees, representatives and/or agents, as
applicable, of each Person described in the foregoing clauses (i) and (ii), from
and against any losses, claims, damages, liabilities and expenses caused by any
untrue or alleged untrue statement of a material fact or any omission or alleged
omission of a material fact required to be stated in the registration statement,
prospectus or preliminary prospectus (or any amendments or supplements thereto)
or necessary to make the statements therein (in the case of a prospectus or
preliminary prospectus, in the light or the circumstances under which they were
made) not misleading, to the extent, but only to the extent, that such untrue
statement or omission is contained in, or with respect to any material omission,
omitted from, any information with respect to Purchaser so furnished in writing
by Purchaser expressly for use therein. In no event shall the liability of
Purchaser be greater in amount than the dollar amount of the proceeds received
by Purchaser upon the sales of Restricted Securities giving rise to such
indemnification obligation.

         (c) INDEMNIFICATION PROCEEDINGS. Any Person entitled to indemnification
hereunder agrees to give prompt written notice to the indemnifying party after
the receipt by such Person of any written notice of the commencement of any
action, suit, proceeding or investigation or threat thereof made in writing for
which such Person will claim indemnification or contribution pursuant to this
Agreement (but the failure to give such notice will not affect the right to
indemnification or contribution hereunder unless, and only to the extent that,
the indemnifying party is materially prejudiced by such failure). The
indemnifying party shall not have the right to assume the defense of such action
or proceeding on behalf of such indemnified party, it being understood, however,
that the indemnifying parties shall not, in connection with any one such action
or proceeding or separate but substantially similar or related actions or
proceedings in the same jurisdiction arising out of the same general allegations
or circumstances, be liable for the fees and expenses of more than one separate
firm of attorneys (in addition to any local counsel) in any one jurisdiction at
any time for all such indemnified parties, unless in the reasonable judgment of
an indemnified party a conflict of interest may exist between such indemnified
party and any other of such indemnified parties with respect to such claim, in
which event the indemnifying party shall be obligated to pay the fees and
expenses of such additional counsel or counsels. Any indemnified party shall
also have the right to employ separate counsel in any such action and

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participate in the defense thereof at such indemnified party's expense. The
indemnifying party will not be subject to any liability for any settlements made
without its consent, which shall not be unreasonably withheld. No indemnifying
party shall, without the consent of such indemnified party, effect any
settlement of any pending or threatened proceeding in respect of which such
indemnified party is or could have been a party and indemnity could have been
sought hereunder by such indemnified party, unless such settlement includes an
unconditional release of such indemnified party from all liability for claims
that are the subject matter of such proceeding.

         (d) CONTRIBUTION. If for any reason the indemnity provided for in this
Section 5 is unavailable to, or is insufficient to hold harmless, an indemnified
party, then the indemnifying party, in lieu of indemnifying such party, shall
contribute to the amount paid or payable by the indemnified party as a result of
such losses, claims, damages, liabilities or expenses in such proportion as is
appropriate to reflect the relative fault of the indemnifying party, on the one
hand, and the indemnified party, on the other hand, in connection with the
statements or omissions which resulted in such losses, claims, damages,
liabilities or expenses, as well as any other relevant equitable considerations.
The relative fault of the indemnifying party, on the one hand, and the
indemnified party, on the other hand, shall be determined by reference to, among
other things, whether any action in question, including any untrue or alleged
untrue statement of a material fact or omission or alleged omission to state a
material fact, has been made by, or relates to information supplied by, the
indemnifying party or the indemnified party; and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
action. The amount paid or payable by an indemnified party as a result of the
losses, claims, damages, liabilities and expenses referred to above shall be
deemed to include, subject to the limitations set forth in Section 5(c), any
legal or other fees or expenses reasonably incurred by such indemnified party in
connection with any investigation or proceeding.

         The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 5(d) were determined by PRO RATA
allocation or by any other method of allocation which does not take account of
the equitable considerations referred to in the immediately preceding paragraph.
No Person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Act) shall be entitled to contribution from any Person who was not
guilty of such fraudulent misrepresentation.

         SECTION 6. PARTICIPATION IN UNDERWRITTEN REGISTRATION. Purchaser may
not participate in any underwritten registration without (a) agreeing to sell
securities on the basis provided in underwriting arrangements approved by the
Company, and (b) completing and executing all questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents required by
the underwriting arrangements.

         SECTION 7. TERMINATION. This Agreement and the obligations of the
Company hereunder shall terminate on the earlier to occur of (i) the fourth
anniversary hereof and (ii) the date on which a written opinion of U.S. counsel,
which counsel shall be reasonably acceptable to the Company, addressed to
Purchaser and the Company, in form and substance reasonably acceptable to
Purchaser, that all Registrable Securities may be sold or transferred pursuant
to Rule 144 (a "Resale Opinion"). Purchaser shall engage such counsel for
purposes of obtaining a Resale Opinion upon the request of the Company.
Purchaser shall bear and pay all fees and disbursements of such counsel in
connection therewith.

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         SECTION 8. MISCELLANEOUS.

         (a) RECAPITALIZATIONS, EXCHANGES, ETC. The provisions of this Agreement
shall apply to the full extent set forth herein with respect to (i) the Shares
and (ii) any and all shares of common stock of the Company into which the Shares
are converted, exchanged or substituted in any recapitalization or other capital
reorganization by the Company.

         (b) AMENDMENT. This Agreement may be amended or modified only by a
written agreement executed by the Company and Purchaser.

         (c) SUCCESSORS AND ASSIGNS. All of the terms and provisions of this
Agreement shall be binding on and inure to the benefit of the parties and their
respective successors and assigns. No party may assign any of such party's
rights, interests or obligations hereunder without the prior written consent of
the other party hereto.

         (d) ENTIRE AGREEMENT. This Agreement contains the entire understanding
of the parties with respect to the subject matter of this Agreement and
supersedes all prior agreements and understandings between the parties with
respect thereto. There are no promises, covenants or undertakings other than
those expressly set forth or provided for in this Agreement.

         (e) GOVERNING LAW. This Agreement shall be governed in all respects by
the laws of the State of Delaware, without reference to its conflicts of law
principles.

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

                                      THE ULTIMATE SOFTWARE GROUP, INC.

                                      By:
                                           ------------------------------------
                                            Name:
                                            Title:

                                      By:
                                           ------------------------------------

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                                   SCHEDULE A

COMMON STOCK:

         Number of shares purchased:
                                    --------------------------

WARRANT:

         Aggregate number of shares
         purchasable upon exercise:
                                   ---------------------------

                                       8EX-10.1 Equipment Inspection and Repair Agreement

 

EXHIBIT 10.1

SYSTEMONE EQUIPMENT INSPECTION AND REPAIR AGREEMENT

     This Agreement (this “Agreement”), effective this 30th day of July, 2003,
is by and between Safety-Kleen Systems, Inc. (“Safety-Kleen”) with offices at
5400 Legacy Dr., Cluster II, Building 3, Plano, TX 75024 and SystemOne
Technologies Inc. (“SystemOne”) with offices at 8305 N.W. 27th Street, Suite
107, Miami, FL 33122.

     Safety-Kleen and SystemOne entered into a Second Amended and Restated
Marketing and Distribution Agreement (the “Marketing Agreement”) as of March 8,
2001. On June 27, 2003, Safety-Kleen sent a letter to SystemOne that in
general, among other things, notified SystemOne it considered the Model 250
Recycling Parts Washers (the “Washers”), including the approximately 6,000
Washers in Safety-Kleen’s inventory, to contain defects and, pursuant to
Section 4.2(b)(iii) of the Marketing Agreement, requested SystemOne to cure the
alleged defects. The Marketing Agreement provides, in general, that a material
breach, if one occurs, shall be cured within twenty (20) business days or, if
it cannot be cured within twenty (20) business days, then the breaching party
must “pursue with due diligence the prompt curing of same.”

     This Agreement documents the agreed procedures for inspection and Repair
(as defined below) of Washers, starting with the date of this Agreement and
concluding no later than as set forth below. This Agreement does not
constitute an admission or concession by SystemOne as to the existence or
non-existence of a material breach of the Marketing Agreement or of defective
Washers; nor a waiver by Safety-Kleen or SystemOne of its rights under the
Marketing Agreement or by Safety-Kleen of any rights, remedies and damages
under its June 27, 2003 letter or otherwise (all of which are expressly
reserved); nor an accord and satisfaction.

1. PURPOSE:

     A.     SystemOne shall inspect and repair, which repair may include, at
SystemOne’s option, upgrade or replacement (“Repair”), of (i) factory
defects in Washers and (ii) leaking solvent storage tanks (irrespective
of whether such are factory defects) in (x) all Washers in Safety-Kleen’s
current inventory at all Safety-Kleen Branches, Distribution Centers
(DC’s) and the Safety-Kleen storage facility in Macon, GA, and (y) any
Washers of Safety-Kleen customers (1) described in Schedule I attached
hereto, or (2) which report or have reported such leaks to Safety-Kleen,
at such customers’ respective locations; all expenses related to the
inspections and Repairs, including but not limited to transportation,
labor, replacement parts, etc., shall be at SystemOne’s sole expense.

     B.     The inspection process will include a comprehensive functionality
review and, in particular, extensive inspection of and when necessary
Repair of the solvent storage tanks in Washers, all as more fully
described below.

2. INSPECTION PROCEDURES BY SYSTEMONE:

     A.     For Inventory Washers, unwrap and visually inspect for in-transit
damage

     B.     Fill holding tank above the float level with Safety-Kleen
Premium Solvent

     C.     Perform a “full run” 4 minute cycle test

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	 	     1. Connect to appropriate power source and remove back panel.

		
	 	     2. Fill wash basin with approximately 1-2 gallons of solvent.

		
	 	     3. Recycle equipment.

		
	 	     4. When vacuum stabilizes, check all connections for potential
solvent and vacuum leaks.

		
	 	     5. Complete an equipment inspection report detailing results of
inspection. Such inspection report shall be provided promptly to
Safety-Kleen; no Safety-Kleen employee of any Branch, DC or storage
facility shall be requested to sign such inspection report or any other
document waiving (or resulting in the waiver of ) Safety-Kleen’s rights
or releasing (or resulting in the release of) SystemOne.

		
	 	     6. Drain solvent on all units ready to ship leaving 1-2 gallons in
distillation tank.

		
	 	     7. Repackage units that pass inspection and return to Customer,
Branch, or DC or storage inventory.

		
	 	     8. Order any components or supplies needed to Repair all defects.

		
	 	     9. (i) Factory defects and (ii) leaking solvent storage tanks
(irrespective of whether such are factory defects) will be Repaired, and
corrective work completed, as promptly as possible, but not later than
the time periods set forth below in Section 3 following initial
inspection with steps B and C repeated to verify that such Repair
resolved the problem identified during initial inspection.

3. RESPONSIBILITIES:

     A.     SystemOne

		
	 	     a. Washers at Customer locations, Safety-Kleen
Branches, and Pomona DC

		
	 	     1. SystemOne’s Regional Service Managers and factory
technicians will inspect and evaluate (a) all (100%) Washers in
Safety-Kleen’s inventory at Safety-Kleen Branches, and the Safety-Kleen Distribution Center in Pomona, CA (“Pomona DC”), and (b) any
leaking storage tanks in Washers of Safety-Kleen Customers
described in Schedule I or of Customers who report or have reported
such leaks at such Customer’s respective locations and Repair all
(i) factory defects and (ii) leaking solvent storage tanks
(irrespective of whether such are factory defects) in such Washers.

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	 	     2. All Customer Washers identified in Schedule I shall be
inspected and Repaired within 21 days after the date of this
Agreement. Safety-Kleen shall provide to SystemOne a list of any
additional Customer Washers as to which reports of solvent storage
tank leaks have been provided to Safety-Kleen on August 1, 2003,
and all such Washers shall be inspected and Repaired on or before
August 22, 2003. Thereafter, Safety-Kleen shall provide to
SystemOne a list of any additional Customer Washers as to which
reports of solvent storage tank leaks have been provided to
Safety-Kleen on Friday of each subsequent week, commencing August
8, 2003, and any such Washers shall be inspected and Repaired
within 14 days after the date of receipt by SystemOne of written
notification of such Washers and their locations. All Washers at
Safety-Kleen Branches or the Pomona DC shall be inspected within 30
days after the date of this Agreement. Safety-Kleen shall use its
best efforts to ensure that all information provided to SystemOne
in such lists is accurate and complete.

		
	 	     3. Based on the process and procedures set forth in this
Agreement, the Regional Service Managers will determine the parts
to be replaced and will place the order for those items with
SystemOne-Miami. SystemOne represents to Safety-Kleen that there
are sufficient parts in inventory at SystemOne-Miami, or otherwise
available to SystemOne in a timely fashion, for it to perform its
obligations under this Agreement.

		
	 	     4. SystemOne-Miami will at its sole discretion expedite
shipment of any required parts ordered by the Regional Service
Managers directly to the appropriate Safety-Kleen Customer, Branch,
and Pomona DC site.

		
	 	     5. SystemOne will provide the manpower, equipment, lighting,
materials and electrical generators, as needed, to complete the
inspection and Repair at the Customer, Branch, and Pomona DC sites
in accordance with this Agreement. SystemOne will utilize
Safety-Kleen Premium Solvent supplied by Safety-Kleen at no cost to
SystemOne, unless a spill or test procedure makes it impractical to
return significant quantities of solvent to storage. To the extent
that Safety-Kleen cannot, as reasonably determined by Safety-Kleen,
provide material handling equipment (e.g. forklifts) as set forth
below, SystemOne shall at its expense provide such equipment.

		
	 	     6. SystemOne will install the required replacement parts or
materials needed to Repair any factory defect or leaking solvent
storage tank found.

		
	 	     7. After completion of the inspection and where necessary
Repair of a Washer, the SystemOne Regional Service Manager will
certify the Washer as having been inspected and/or Repaired and
then will notify Mark Wekesser of Safety-Kleen and Jon Clawson of
SystemOne that the process has been completed.

3

 

		
	 	     8. Replaced parts will be appropriately tagged, packaged and
returned by the Regional Service Managers at SystemOne’s sole
expense directly to SystemOne-Miami for further inspection and
evaluation.

		
	 	     9. If any Repair on a Customer Washer will result or results
in a Customer being unable to use its Washer for more than eight
(8) hours during the Repair period set forth in this Agreement,
then SystemOne shall provide at its sole cost a temporary Washer
for Customer’s use. The temporary Washer shall at no time be sold
to Safety-Kleen as a new Washer.

		
	 	     b. Washers at Safety-Kleen DCs (excluding Pomona
DC), and Macon storage site

		
	 	     1. On or before July 31, 2003, SystemOne will ship 1-2
truckloads of fully-tested, new Washers to Safety-Kleen DCs
(excluding the Pomona DC), plus the Macon, GA storage site, in
accordance with Safety-Kleen’s shipping instructions (comprising
approximately 1040 Washers in total), and transport not less than
an equal number of Washers from Safety-Kleen’s inventory at such
DCs and Macon site, to SystemOne’s factory in Miami.

		
	 	     2. SystemOne will inspect all such Washers and Repair all (i)
factory defects and (ii) leaking solvent storage tanks
(irrespective of whether such are factory defects) in such Washers,
at the SystemOne factory, and then transport the Washers back to a
DC or the Macon site, as specified by Safety-Kleen. SystemOne will
then pick up another truckload of Washers which have not yet been
inspected and Repaired in accordance with this Agreement from the
DCs and the Macon site, transport them to the SystemOne factory for
inspection and Repair, as appropriate, and subsequent return to the
specified location, and continue the process until all Washers in
Safety-Kleen’s inventory as of the date hereof (approximately 6000)
have been inspected and Repaired.

		
	 	     3. All such Washers (approximately 6000) shall be inspected
and Repaired within 45 days after the date of this Agreement, with
no less than 2000 Washers completed within 15 days, and no less
than 4000 Washers completed within 30 days.

		
	 	     c. Other

		
	 	     1. SystemOne-Miami will generate and maintain a separate data
base by serial number and original Customer, Branch, DC or storage
location to track and monitor future reported defects on all units
inspected as well as units certified as ready to use, which
information SystemOne shall provide to Safety-Kleen upon request.

		
	 	     2. SystemOne is to provide proof of adequate insurance,
consisting of at least $5 million dollars of both general liability
and workers’ compensation insurance prior to entering work premises
of Safety-Kleen.

4

 

		
	 	     3. SystemOne will provide notice as far in advance as
reasonably possible, but not less than one (1) business day in
advance, of any inspection/Repair at a Branch or Customer location,
in order to enable Safety-Kleen to have appropriate personnel
present. Any delay requested by Safety-Kleen in writing, or
confirmed by the parties in writing shall be added to the time
periods for SystemOne’s performance of this Agreement. SystemOne
has initiated ongoing inspection/Repairs at the SystemOne factory,
and will provide reasonable cooperation in allowing Safety-Kleen
personnel to be present for such inspection/Repairs at the
SystemOne factory. The failure of Safety-Kleen to provide such
personnel shall not prevent SystemOne from performing such
inspection and Repair work.

		
	 	     4. SystemOne will provide a report to Ed Zielinski of
Safety-Kleen on Monday of each week, for all activity during the
past week identifying: the serial number and location of each
Washer inspected and/or Repaired, the nature of the problem, if any
identified, the nature of the Repair, and the date of such actions.

		
	 	     5. SystemOne will pay, within 30 days after receiving a
statement from Safety-Kleen, any actual out-of-pocket costs
(consisting of labor involved in loading and unloading Washers)
incurred by Safety-Kleen at SystemOne’s request, in connection with
this inspection and Repair program. Safety-Kleen shall provide to
SystemOne such supporting data for any such expenses as SystemOne
may reasonably request. Except as set forth in the last paragraph
of Section 3B of this Agreement, Safety-Kleen reserves the right,
pursuant to Section 10 of the Marketing Agreement or otherwise to
seek reimbursement and damages for Safety-Kleen’s labor costs, and
SystemOne reserves the right to challenge such costs.

		
	 	     6. SystemOne agrees to hold Safety-Kleen harmless from any
damage and liability associated with any Repair work other than
damage or liability caused by Safety-Kleen’s sole negligence or
willful misconduct. Nothing in this paragraph or Agreement shall
limit SystemOne’s obligations under the Marketing Agreement.

		
	 	     7. Notwithstanding anything else in this Agreement to the
contrary, no Washer replaced and Repaired by SystemOne shall later
be sold to Safety-Kleen as a new Washer under the Marketing
Agreement.

     B.     Safety-Kleen

		
	 	     1. Provide single point of contact for coordination of the
inspection and Repair activities set forth in this Agreement at each
Branch site and, as required hereby, at each Customer location, and the
delivery and/or exchange of all Washers in Safety-Kleen’s inventory at
its DCs and the Macon site.

5

 

		
	 	     2. To the extent available, as reasonably determined by
Safety-Kleen, provide available space for inspection and temporary
holding for arrival and installation of parts for Repairs, at Branch
sites. If such space is not available due to usage or size limitations
as reasonably determined by Safety-Kleen, and additional space must be
obtained (trailer, etc.), then SystemOne shall be responsible for all out
of pocket costs associated with such additional space. It is understood
that, notwithstanding the foregoing, Safety-Kleen shall not be required
to provide available space if doing so, as reasonably determined by
Safety-Kleen, shall disrupt its operations or result in additional costs
to Safety-Kleen.

		
	 	     3. Provide material handling equipment for movement of equipment
within each Branch, DC and the Macon site to the extent available without
disrupting Safety-Kleen’s day to day operations or resulting in
additional costs to Safety-Kleen, as reasonably determined by
Safety-Kleen, and provide, at no cost to SystemOne, Safety-Kleen Premium
Solvent (or to sell at Safety-Kleen’s cost any solvent necessary to
replace significant lost quantities of solvent), required for testing.

		
	 	     4. Safety-Kleen will segregate completed Washers from other
inventories and ship to Branches and/or Customers only Washers inspected
or Repaired or newly produced Washers delivered to Safety-Kleen on or
after July 28, 2003.

		
	 	     5. Safety-Kleen will bear all costs associated with having
representatives present at any inspection and Repair of Washers.

4. MISCELLANEOUS:

     A.     This Agreement and the Marketing Agreement constitute the full
understanding of the parties and all prior agreements, negotiations,
dealings and understandings, whether written or oral, regarding the
subject matter hereof are superseded by this Agreement.

     B.     This Agreement may be amended only by a written agreement executed by
the parties hereto.

     C.     No waiver by either party with respect to any breach or default or of
any right or remedy and no course of dealing or performance shall be
deemed to constitute a continuing waiver of any other breach or default
or of any other right or remedy, unless such waiver be expressed in
writing signed by the party to be bound.

     D.     Section headings as to the contents of particular sections are for
convenience only and are in no way to be construed as part of this
Agreement or as a limitation of the scope of the particular sections to
which they refer.

     E. In the event any term or provision of this Agreement, or any portion
hereof, or any application of any term or provision shall be invalid or
unenforceable, the remainder of this Agreement or any other application
of such term or provision shall not be affected thereby.

6

 

     F.     All rights conferred by this Agreement shall be binding upon, inure to
the benefit of, and be enforceable against the respective permitted
successors and assigns of the parties.

     G.     All notices, requests, approvals and other communications required or
permitted under this Agreement shall be in writing and shall be given in
accordance with the notice provisions set forth in Section 13.7 of the
Marketing Agreement.

     H.     This Agreement may be executed in identical duplicate copies. The
parties agree to execute at least two identical original copies of this
Agreement. Each identical counterpart shall be deemed an original, but
all of which together shall constitute one and the same instrument.

     I.     Section 13.9 of the Marketing Agreement shall be deemed to apply to
all Confidential Information (as defined in the Marketing Agreement)
provided pursuant to or in connection with this Agreement.

     J.     Notwithstanding anything contained herein to the contrary, neither
party will be liable in any way as a result of delay in the fulfillment
of any term of this Agreement, when such delay is due to an act of God,
act or request of governmental authority, war, riot, any voluntary or
involuntary shutdown or curtailment of or interference with, its
facilities, incident to any labor controversy or failure of any customary
source of supplies which may directly or indirectly affect the
obligations arising hereunder for such (a “Permitted Delay”), nor shall
any such Permitted Delay constitute a basis to terminate this Agreement;
however, a party’s failure to fulfill its obligations after a Permitted
Delay no longer exists shall constitute a breach of this Agreement. This
clause shall not apply to payment obligations set forth in this
Agreement.

     K.     If the parties should have a material dispute arising out of or
relating to this Agreement then it shall be resolved pursuant to the
applicable provisions of the Marketing Agreement; nothing in this
Agreement shall preclude Safety-Kleen from arguing that a material breach
of this Agreement constitutes a material breach of the Marketing
Agreement or a failure to cure with due diligence pursuant to Section
4.2(b)(iii) of the Marketing Agreement, or from exercising all of its
rights under the Marketing Agreement, at law or in equity.

     L.     This Agreement shall inure to the benefit of the parties and their
successors and assigns.

     M.     Section 18 of the Marketing Agreement shall apply to this Agreement.

     N.     This Agreement shall terminate automatically upon the termination of
the Marketing Agreement, provided that this Section 4 shall survive any
such termination.

     O. The parties agree to provide all reasonable mutual cooperation in
order to accomplish the purposes of this Agreement.

7

 

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

	 	 	 
	SystemOne Technologies, Inc.	 	
Safety-Kleen Systems Inc.
	 	 	 
	 	 	 
	By: /s/ Paul Mansur	 	
By: /s/ Mark Phariss
	
	 	

	Paul Mansur

Chief Executive Officer	 	
Mark Phariss

Assistant General Counsel

8

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