Document:

Exhibit 10.3

     

    Exhibit
      10.3

     

    
 

    Employment
      Agreement

     

    This
      Employment Agreement (the “Agreement”)
      dated
      as of ___, 2006 and effective as of January 1, 2006 (the “Effective
      Date”),
      is
      made by and between Bryan Kuskie (the “Executive”)
      and
      Envirosafe Corporation and any of its subsidiaries and affiliates as may employ
      Executive from time to time (collectively, and together with any successor
      thereto, the “Company”).
      

     

    RECITALS

     

    
      	
              A.

            	
              It
                is the desire of the Company to assure itself of the services of
                the
                Executive by engaging the Executive to perform services under the
                terms
                hereof.

            

    

     

    
      	
              B.

            	
              The
                Executive desires to provide services to the Company on the terms
                herein
                provided.

            

    

     

    AGREEMENT

     

    NOW,
      THEREFORE, in consideration of the foregoing and of the respective covenants
      and
      agreements set forth below the parties hereto agree as follows:

     

    1.  Certain
      Definitions.

     

    
      	(a)  	
              “Annual
                Base Salary”
                shall have the meaning set forth in Section 3(a).

            

    

     

    
      	(b)  	
              “Board”
                shall mean the Board of Directors of the
                Company.

            

    

     

    
      	(c)  	
              The
                Company shall have “Cause”
                to terminate the Executive’s employment hereunder
                upon:

            

    

     

    
      	(i)  	
              Executive’s
                failure to (A) follow a legal order of the Board or (B) failure to
                substantially perform any duties under this Agreement (as reasonably
                determined by the Board), other than any such failure or failures
                resulting from the Executive’s Disability, and such failure or failures
                are not remedied within 30 days after receipt of written
                notice;

            

    

     

    
      	(ii)  	
              Executive’s
                gross or willful misconduct to the
                Company;

            

    

     

    
      	(iii)  	
              Executive’s conviction
                of a felony or of a crime involving material dishonesty or moral
                turpitude; or

            

    

     

    
      	(iv)  	
              Executive’s
                fraud or personal dishonesty involving the Company’s
                assets.

            

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      	(d)  	
              “Company”
                shall have the meaning set forth in the preamble
                hereto.

            

    

     

    
      	(e)  	
              “Date
                of Termination”
                shall mean (i) if the Executive’s employment is terminated by his death,
                the date of his death; (ii) if the Executive’s employment is terminated
                pursuant to Section
                4(a)(ii) - (iv)
                either the date indicated in the Notice of Termination or the date
                specified by the Company pursuant to Section
                4(b),
                whichever is earlier; (iii) if the Executive’s employment is terminated
                pursuant to Section
                4(a)(v)
                or
                Section
                4(a)(vi),
                the expiration of the then-applicable
                Term.

            

    

     

    
      	(f)  	
              “Disability”
                shall mean the absence of the Executive from the Executive’s duties to the
                Company on a full-time basis for a total of six months during any
                12-month
                period as a result of incapacity due to mental or physical illness
                which
                is determined to be reasonably likely to extend beyond the completion
                of
                the Term and which determination is made by a physician selected
                by the
                Company and acceptable to the Executive or the Executive’s legal
                representative (such agreement as to acceptability not to be withheld
                unreasonably). A Disability shall not be “incurred” hereunder until, at
                the earliest, the last day of the sixth month of such
                absence.

            

    

     

    
      	(g)  	
              “Executive”
                shall have the meaning set forth in the preamble
                hereto.

            

    

     

    
      	(h)  	
              “Inventions”
                shall have the meaning set forth in Section
                8.

            

    

     

    
      	(i)  	
              “Notice
                of Termination”
                shall have the meaning set forth in Section 4(b).

            

    

     

    
      	(j)  	
              “Term”
                shall have the meaning set forth in Section 2(b).

            

    

     

    
      
        
        

      

      
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    2.  Employment.

     

    
      	(a)  	
              The
                Company shall employ the Executive and the Executive shall enter
                the
                employ of the Company, for the period set forth in Section
                2(b),
                in the position set forth in Section
                2(c),
                and upon the other terms and conditions herein provided.
                

            

    

     

    
      	(b)  	
              The
                initial term of employment under this Agreement (the “Initial
                Term”)
                shall be for the period beginning on the Effective Date of this Agreement
                and ending on the [third]
                anniversary thereof, unless earlier terminated as provided in Section
                4.
                The employment term hereunder shall automatically be extended for
                successive one-year periods (“Extension
                Terms”
                and, collectively with the Initial Term, the “Term”)
                unless either party gives notice of non-extension to the other no
                later
                than 90 days prior to the expiration of the then-applicable Term.
                

            

    

     

    
      	(c)  	
              Position
                and Duties.
                The Executive shall serve as Chief Executive Officer of the Company
                and
                shall have the authorities duties and responsibilities customarily
                commensurate with such position and such additional customary
                responsibilities, duties and authority, as may from time to time
                be
                reasonably assigned to the Executive by the Board. The Executive
                shall
                report to the Board. The Executive agrees to observe and comply with
                the
                Company’s rules and policies as adopted by the Company from time to time.
                

            

    

     

    3.  Compensation
      and Related Matters.

     

    
      	(a)  	
              Annual
                Base Salary.
                During the Term, the Executive shall receive a base salary at a rate
                of
                $120,000 per annum, which shall be paid in accordance with the customary
                payroll practices of the Company, subject to increase as determined
                by the
                Board, in its sole discretion (the “Annual
                Base Salary”).

            

    

     

    
      	(b)  	
              Annual
                Bonus.
                During the Term, the Executive will be eligible to receive an annual
                performance-based bonus which shall be determined based upon performance
                targets established by the Board. Such bonus shall be payable at
                such time
                as bonuses are paid to other senior executive officers who participate
                therein.

            

    

     

    
      	(c)  	
              Benefits.
                The Executive shall be entitled to participate in all employee benefit
                plans, programs and arrangements of the Company which are applicable
                to
                the senior officers of the Company at a level commensurate with the
                Executive’s position.

            

    

     

    
      	(d)  	
              Expenses.
                During the Term, the Company shall reimburse the Executive for all
                reasonable travel and other business expenses incurred by his in
                the
                performance of his duties to the Company in accordance with the Company’s
                expense reimbursement policy.

            

    

     

    
      	(e)  	
              Vacation.
                During the Term, the Executive shall be entitled to four weeks paid
                vacation each calendar year. Any vacation shall be taken at the reasonable
                and mutual convenience of the Company and the Executive.
                

            

    

     

    
      
        
        

      

      
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    4.  Termination.

     

    The
      Executive’s employment hereunder may be terminated by the Company or the
      Executive, as applicable, without any breach of this Agreement only under the
      following circumstances:

     

    
      	(a)  	
              Circumstances.

            

    

     

    
      	(i)  	
              Death.
                The Executive’s employment hereunder shall terminate upon his death.
                

            

    

     

    
      	(ii)  	
              Disability.
                If the Executive has incurred a Disability, the Company may give
                the
                Executive written notice of its intention to terminate the Executive’s
                employment. In that event, the Executive’s employment with the Company
                shall terminate effective on the 30th
                day after receipt of such notice by the Executive, provided that
                within
                the 30 days after such receipt, the Executive shall not have returned
                to
                full-time performance of his duties.

            

    

     

    
      	(iii)  	
              Termination
                for Cause.
                The Company may terminate the Executive’s employment for
                Cause.

            

    

     

    
      	(iv)  	
              Termination
                without Cause.
                The Company may terminate the Executive’s employment without
                Cause.

            

    

     

    
      	(v)  	
              Non-extension
                of Term by the Company.
                The Company may give notice of non-extension to the Executive pursuant
                to
                Section
                2(b). 

            

    

     

    
      	(vi)  	
              Non-extension
                of Term by the Executive.
                The Executive may give notice of non-extension to the Company pursuant
                to
                Section
                2(b).

            

    

     

    
      	(b)  	
              Notice
                of Termination.
                Any termination of the Executive’s employment by the Company or by the
                Executive under this Section
                4
                (other than termination pursuant to paragraph (a)(i)) shall be
                communicated by a written notice to the other party hereto indicating
                the
                specific termination provision in this Agreement relied upon, setting
                forth in reasonable detail the facts and circumstances claimed to
                provide
                a basis for termination of the Executive’s employment under the provision
                so indicated, and specifying a Date of Termination which, if submitted
                by
                the Executive, shall be at least 30 days following the date of such
                notice
                (a “Notice
                of Termination”)
                provided,
                however,
                that the Company may, in its sole discretion, change the Date of
                Termination to any date following the Company’s receipt of the Notice of
                Termination. A Notice of Termination submitted by the Company may
                provide
                for a Date of Termination on the date the Executive receives the
                Notice of
                Termination, or any date thereafter elected by the Company in its
                sole
                discretion. The failure by the Company to set forth in the Notice
                of
                Termination any fact or circumstance which contributes to a showing
                of
                Cause shall not waive any right of the Company hereunder or preclude
                the
                Company from asserting such fact or circumstance in enforcing the
                Company’s rights hereunder.

            

    

     

    
      	(c)  	
              Company
                Obligations Upon Termination.
                Upon termination of the Executive’s employment, the Executive (or the
                Executive’s estate) shall be entitled to receive a lump sum equal to the
                Executive’s Annual Base Salary through the Date of Termination not
                theretofore paid, any bonus if declared or earned but not yet paid
                for a
                completed fiscal year, any expenses owed to the Executive, any accrued
                vacation pay owed to the Executive, and any amount arising from the
                Executive’s participation in, or benefits under any employee benefit
                plans, programs or arrangements, which amounts shall be payable in
                accordance with the terms and conditions of such employee benefit
                plans,
                programs or arrangements. 

            

    

     

    
      
        
        

      

      
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    5.  Severance
      Payments.

     

    
      	(a)  	
              Termination
                upon death or Disability.
                If the Executive’s employment shall terminate pursuant to Sections
                4(a)(i)
                due to the Executive’s death, or pursuant to Section
                4(a)(ii)
                due to the Executive’s Disability, the Company shall pay to the Executive
                (or the Executive’s estate) within 30 days following the Date of
                Termination and otherwise in accordance with the Company’s regular payroll
                practice, an amount equal to the Annual Base Salary that the Executive
                would have been entitled to receive if the Executive had continued
                his
                employment for a period of six months following the Date of
                Termination.

            

    

     

    
      	(b)  	
              Survival.
                The expiration or termination of the Term shall not impair the rights
                or
                obligations of any party hereto, which shall have accrued prior to
                such
                expiration or termination.

            

    

     

    
      	(c)  	
              Mitigation.
                The Executive shall have no duty to mitigate the amount of any payment
                provided for hereunder by seeking other employment, and any income
                earned
                by the Executive from other employment or self-employment shall not
                be
                offset against any obligations of the Company to the Executive
                hereunder.

            

    

     

    6.  Competition.

     

    
      	(a)  	
              The
                Executive shall not, at any time during the Term or during the 12-month
                period following the later of the expiration of the Term or the Date
                of
                Termination directly or indirectly engage in, have any equity interest
                in,
                or manage or operate any person, firm, corporation, partnership or
                business (whether as director, officer, employee, agent, representative,
                partner, security holder, consultant or otherwise) that engages in
                any
                business which competes with any business of the Company or any entity
                owned by the Company anywhere in the United States provided,
                however,
                that the Executive shall be permitted to acquire a passive stock
                or equity
                interest in such a business provided the stock or other equity interest
                acquired is not more than five percent (5%) of the outstanding interest
                in
                such business. 

            

    

     

    
      	(b)  	
              During
                the Term and during the term set forth in Section
                6(a),
                the Executive will not, except in the performance of his duties for
                the
                Company, and will not permit any of his affiliates to, directly or
                indirectly, recruit or otherwise solicit or induce any non-clerical
                employee, customer, subscriber or supplier of the Company to terminate,
                or
                otherwise change its relationship with the Company, or establish
                any
                relationship with the Executive or any of his affiliates for any
                business
                purpose that is prohibited by subsection (a) above. Nothing herein
                shall
                prevent the Executive from serving as a
                reference.

            

    

     

    
      	(c)  	
              In
                the event the terms of this Section
                6
                shall be determined by any court of competent jurisdiction to be
                unenforceable by reason of its extending for too great a period of
                time or
                over too great a geographical area or by reason of its being too
                extensive
                in any other respect, it will be interpreted to extend only over
                the
                maximum period of time for which it may be enforceable, over the
                maximum
                geographical area as to which it may be enforceable, or to the maximum
                extent in all other respects as to which it may be enforceable, all
                as
                determined by such court in such
                action.

            

    

     

    
      	(d)  	
              As
                used in this Section
                6,
                the term “Company” shall include the Company, its parent and any of its
                direct or indirect subsidiaries.

            

    

     

    
      
        
        

      

      
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    7.  Nondisclosure
      of Proprietary Information.

     

    
      	(a)  	
              Except
                as required in the faithful performance of the Executive’s duties
                hereunder or pursuant to Section
                7(c),
                the Executive shall, in perpetuity, maintain in confidence and shall
                not
                directly, indirectly or otherwise, use, disseminate, disclose or
                publish,
                or use for his benefit or the benefit of any person, firm, corporation
                or
                other entity any confidential or proprietary information or trade
                secrets
                of or relating to the Company, including, without limitation, information
                with respect to the Company’s operations, processes, products, inventions,
                business practices, finances, principals, vendors, suppliers, customers,
                potential customers, marketing methods, costs, prices, contractual
                relationships, regulatory status, compensation paid to employees
                or other
                terms of employment, or deliver to any person, firm, corporation
                or other
                entity any document, record, notebook, computer program or similar
                repository of or containing any such confidential or proprietary
                information or trade secrets. The parties hereby stipulate and agree
                that
                as between them the foregoing matters are important, material and
                confidential proprietary information and trade secrets and affect
                the
                successful conduct of the businesses of the Company (and any successor
                or
                assignee of the Company).

            

    

     

    
      	(b)  	
              Upon
                termination of the Executive’s employment with the Company for any reason,
                the Executive will promptly deliver to the Company all correspondence,
                drawings, manuals, letters, notes, notebooks, reports, programs,
                plans,
                proposals, financial documents, or any other documents concerning
                the
                Company’s customers, business plans, marketing strategies, products or
                processes that are in his possession, custody or control. The Executive
                shall be permitted to retain his rolodex (and similar address and
                telephone directories).

            

    

     

    
      	(c)  	
              The
                Executive may respond to a lawful and valid subpoena or other legal
                process but shall: (i) give the Company the earliest reasonably possible
                notice thereof, (ii) as much reasonably in advance of the return
                date as
                possible, make available to the Company and its counsel the documents
                and
                other information sought, and (iii) reasonably assist such counsel
                in
                resisting or otherwise responding to such process. Notwithstanding
                Section
                7(a),
                the Executive may use or disclose information that is public knowledge.
                

            

    

     

    
      	(d)  	
              As
                used in this Section
                7,
                the term “Company” shall include the Company, its parent and any of its
                direct or indirect subsidiaries.

            

    

     

    8.  Inventions.
      

     

    All
      rights to discoveries, inventions, improvements and innovations (including
      all
      data and records pertaining thereto) directly related to the Company’s business,
      whether or not patentable, copyrightable, registrable as a trademark, or reduced
      to writing, that the Executive may discover, invent or originate during the
      Term, either alone or with others and whether or not during working hours or
      by
      the use of the facilities of the Company (“Inventions”),
      shall
      be the exclusive property of the Company. The Executive shall promptly disclose
      all Inventions to the Company, shall execute at the request of the Company
      any
      assignments or other documents the Company may deem necessary to protect or
      perfect its rights therein, and shall assist the Company, at the Company’s
      expense, in obtaining, defending and enforcing the Company’s rights therein. The
      Executive hereby appoints the Company as his attorney-in-fact to execute on
      his
      behalf any assignments or other documents deemed necessary by the Company to
      protect or perfect its rights to any Inventions.

     

    9.  Non-Disparagement.

     

    Each
      of
      the parties agrees that, during and following the Term, he or it will not
      disparage or denigrate to any person any aspect of his or its past relationship
      with the other, nor the character of the other or the other’s agents,
      affiliates, representatives, products, or operating methods, whether past,
      present, or future. 

     

    
      
        
        

      

      
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    10.  Injunctive
      Relief.

     

    It
      is
      recognized and acknowledged by the Executive that a breach of the covenants
      contained in Sections
      6, 7, 8 and 9
      will
      cause irreparable damage to Company and its goodwill, the exact amount of which
      will be difficult or impossible to ascertain, and that the remedies at law
      for
      any such breach will be inadequate. Accordingly, the Executive agrees that
      in
      the event of a breach of any of the covenants contained in Sections
      6, 7, 8 and 9,
      in
      addition to any other remedy which may be available at law or in equity, the
      Company will be entitled to specific performance and injunctive
      relief.

     

    11.  Assignment
      and Successors.

     

    The
      Company may assign its rights and obligations under this Agreement to any
      entity, including any successor to all or substantially all the assets of the
      Company, by merger or otherwise, and may assign or encumber this Agreement
      and
      its rights hereunder as security for indebtedness of the Company and its
      affiliates, provided said successor entity assumes all of the obligations of
      the
      Company hereunder. The Executive may not assign his rights or obligations under
      this Agreement to any individual or entity, except his estate upon his death.
      This Agreement shall be binding upon and inure to the benefit of the Company,
      the Executive and their respective successors, assigns, personnel and legal
      representatives, executors, administrators, heirs, distributees, devisees,
      and
      legatees, as applicable.

     

    12.  Governing
      Law.

     

    This
      Agreement shall be governed, construed, interpreted and enforced in accordance
      with the substantive laws of the state of New York, without reference to the
      principles of conflicts of law of New York or any other jurisdiction, and where
      applicable, the laws of the United States.

     

    13.  Notices.

     

    Any
      notice, request, claim, demand, document and other communication hereunder
      to
      any party shall be effective upon receipt (or refusal of receipt) and shall
      be
      in writing and delivered personally or sent by telex, telecopy, overnight
      courier service or certified or registered mail, postage prepaid, as
      follows:

     

    
      	(a)  	
              If
                to the Company:

            

    

     

    Envirosafe
      Corporation

    Fax:
      

    Attn:
      Secretary

    

    and
      a
      copy to:

    

    Lia
      Law
      LLP

    Two
      Lafayette Court

    Greenwich,
      CT 06830

    Fax:
      (203) 983-3036

    Attn:
      Tom
      Mukamal, Esq.

    

    
      	(b)  	
              If
                to the Executive: 

            

    

     

    Bryan
      Kuskie

    21205
      Hickory Forest Way

    Germantown,
      Maryland

    20876

    

    or
      at any
      other address as any party shall have specified by notice in writing to the
      other party.

     

    
      
        
        

      

      
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    14.  Counterparts.

     

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

     

    15.  Entire
      Agreement.

     

    The
      terms
      of this Agreement and the other agreements and instruments contemplated hereby
      or referred to herein (collectively the “Related
      Agreements”)
      are
      intended by the parties to be the final expression of their agreement with
      respect to the employment of the Executive by the Company and may not be
      contradicted by evidence of any prior or contemporaneous agreement. The parties
      further intend that this Agreement and the Related Agreements shall constitute
      the complete and exclusive statement of their terms and that except as required
      by applicable law no extrinsic evidence whatsoever may be introduced in any
      judicial, administrative, or other legal proceeding to vary the terms of this
      Agreement and the Related Agreements.

     

    16.  Amendments;
      Waivers.

     

    This
      Agreement may not be modified, amended, or terminated except by an instrument
      in
      writing, signed by the Executive and a duly authorized officer of Company.
      By an
      instrument in writing similarly executed, the Executive or a duly authorized
      officer of the Company may waive compliance by the other party or parties with
      any provision of this Agreement that such other party was or is obligated to
      comply with or perform, provided,
      however,
      that
      such waiver shall not operate as a waiver of, or estoppel with respect to,
      any
      other or subsequent failure. No failure to exercise and no delay in exercising
      any right, remedy, or power hereunder preclude any other or further exercise
      of
      any other right, remedy, or power provided herein or by law or in
      equity.

     

    17.  No
      Inconsistent
      Actions.

     

    The
      parties hereto shall not voluntarily undertake or fail to undertake any action
      or course of action inconsistent with the provisions or essential intent of
      this
      Agreement. Furthermore, it is the intent of the parties hereto to act in a
      fair
      and reasonable manner with respect to the interpretation and application of
      the
      provisions of this Agreement.

     

    18.  Construction.

     

    This
      Agreement shall be deemed drafted equally by both the parties. Its language
      shall be construed as a whole and according to its fair meaning. Any presumption
      or principle that the language is to be construed against any party shall not
      apply. The headings in this Agreement are only for convenience and are not
      intended to affect construction or interpretation. Any references to paragraphs,
      subparagraphs, sections or subsections are to those parts of this Agreement,
      unless the context clearly indicates to the contrary. Also, unless the context
      clearly indicates to the contrary, (a) the plural includes the singular and
      the
      singular includes the plural; (b) “and” and “or” are each used both
      conjunctively and disjunctively; (c) “any,” “all,” “each,” or “every” means “any
      and all,” and “each and every”; (d) “includes” and “including” are each “without
      limitation”; (e) “herein,” “hereof,” “hereunder” and other similar compounds of
      the word “here” refer to the entire Agreement and not to any particular
      paragraph, subparagraph, section or subsection; and (f) all pronouns and any
      variations thereof shall be deemed to refer to the masculine, feminine, neuter,
      singular or plural as the identity of the entities or persons referred to may
      require.

     

    
      
        
        

      

      
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    19.  Arbitration.

     

    Any
      dispute or controversy arising under or in connection with this Agreement shall
      be settled exclusively by arbitration, conducted before an arbitrator in New
      York, New York in accordance with the employment rules of the American
      Arbitration Association then in effect. Judgment may be entered on the
      arbitration award in any court having jurisdiction, provided,
      however,
      that
      the Company shall be entitled to seek a restraining order or injunction in
      any
      court of competent jurisdiction to prevent any continuation of any violation
      of
      the provisions of Sections
      6, 7, 8 or 9
      of the
      Agreement and the Executive hereby consents that such restraining order or
      injunction may be granted without requiring the Company to post a bond. Only
      individuals who are (i) lawyers engaged in the practice of law; and (ii) on
      the
      AAA register of arbitrators shall be selected as an arbitrator. Within 20 days
      of the closure of the arbitration record, the arbitrator shall prepare written
      findings of fact and conclusions of law. It is mutually agreed that the written
      decision of the arbitrator shall be valid, binding, final and non-appealable,
      provided however, that the parties hereto agree that the arbitrator shall not
      be
      empowered to award punitive damages against any party to such arbitration.
      The
      arbitrator shall require the non-prevailing party to pay the arbitrator’s full
      fees and expenses or, if in the arbitrator’s opinion there is no prevailing
      party, the arbitrator’s fees and expenses will be borne equally by the parties
      thereto. In the event action is brought to enforce the provisions of this
      Agreement pursuant to this Section
      19,
      the
      non-prevailing parties shall be required to pay the reasonable attorney’s fees
      and expenses of the prevailing parties to the extent determined to be
      appropriate by the arbitrator, acting in its sole discretion.

     

    20.  Validity;
      Enforcement.

     

    If
      any
      provision of this Agreement is held to be illegal, invalid or unenforceable
      under present or future laws effective during the term of this Agreement, such
      provision shall be fully severable; this Agreement shall be construed and
      enforced as if such illegal, invalid or unenforceable provision had never
      comprised a portion of this Agreement; and the remaining provisions of this
      Agreement shall remain in full force and effect and shall not be affected by
      the
      illegal, invalid or unenforceable provision or by its severance from this
      Agreement. Furthermore, in lieu of such illegal, invalid or unenforceable
      provision there shall be added automatically as part of this Agreement a
      provision as similar in terms to such illegal, invalid or unenforceable
      provision as may be possible and be legal, valid and enforceable.

     

    21.  Withholding.

     

    The
      Company shall be entitled to withhold from any amounts payable under this
      Agreement any federal, state, local or foreign withholding or other taxes or
      charges which the Company is required to withhold. The Company shall be entitled
      to rely on an opinion of counsel if any questions as to the amount or
      requirement of withholding shall arise.

     

    22.  Sole
      Employment Agreement.

     

    The
      Executive acknowledges and agrees that he has taken all actions required under
      the terms of any prior employment in order to terminate that employment and
      that
      the provisions contained in that employment agreement, if any, do not bind
      the
      Company.

     

    23.  Employee
      Acknowledgement.

     

    The
      Executive acknowledges that he has read and understands this Agreement, is
      fully
      aware of its legal effect, has not acted in reliance upon any representations
      or
      promises made by the Company other than those contained in writing herein,
      and
      has entered into this Agreement freely based on his own judgment.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

       

          IN
        WITNESS
        WHEREOF, the parties have executed this Agreement on the date and year first
        above written.   

    

     

    COMPANY

     

    By:
       ________________________

    Name:
      Bryan Kuskie

    Title:
      Chairman

     

    EXECUTIVE

     

    By:
       ________________________

    Name:
      Bryan Kuskie

    

     

    
      
        
        

      

      
        10Exhibit 10.4

    Exhibit
      10.4

     

    MANUFACTURING
      AGREEMENT

    

    THIS
      MANUFACTURING AGREEMENT (this “Agreement”) is made this ______ day of April,
      ______ (“Effective Date”), by and between ANSCOTT CHEMICAL, INC., with its
      principle place of business at 26 Hanes Drive, Wayne, New Jersey. 07470
      (hereinafter “ANSCOTT”), and ENVIROSAFE CORPORATION with its principle place of
      business at _______________________________________________ (hereinafter
“ENVIROSAFE”). ANSCOTT and ENVIROSAFE are sometimes individually refereed to as
“party” or collectively as the “Parties.” In consideration of the mutual
      covenants herein contained, and other good and valuable consideration, the
      receipt and sufficiency of which is hereby acknowledged, the parties hereby
      agree as follows.

    

    ARTICLE
      1
      - APPOINTMENT OF ANSCOTT

    

    Appointment.
      ENVIROSAFE hereby appoints ANSCOTT, as its manufacturer to (i) receive, purchase
      and/or create ENVIROSAFE products; (ii) to blend and create products at a rate
      of $0.75 per pound for specialties and .25 for all cold blended materials
      shipped from the facility with a minimum of ____ pounds per year; (iii) provide
      up to two (2) labors for cosmetic products and other services or product
      offerings for additional cost as per Appendix A, (iv) no monitor of inventory
      and lot control; (iv) package product in 55 gallon open head drums are included;
      (v) all additional goods or services will be billed according to the attached
      pricing schedule with the exception of general maintenance being billed with
      the
      first hour free (vi) to oversee shipping management and Bill of Lading; (vii)
      to
      ship ENVIROSAFE’S finished products(the “Product”) F.O.B Wayne, New Jersey to
      end-user purchasers (the “Customers”).

    

    ARTICLE
      2
      - SERVICES; SUPPLY AND DELIVERY OF PRODUCTS

    

    Requirements
      for Product.
      ENVIROSAFE shall purchase from ANSCOTT and ANSCOTT shall sell to ENVIROSAFE
      ,
      such services, as ENVIROSAFE requires for sale to its Customers located within
      and outside the United States, in accordance with this Agreement. Except for
      the
      service, maintenance and support to be provided by ANSCOTT, pursuant to this
      Agreement, or unless directed otherwise by ANSCOTT in writing, ENVIROSAFE shall
      be solely responsible for the installation, maintenance and support of such
      Products. ENVIROSAFE shall have the right to have other manufacturers produce
      their products if products cannot be produced at Anscott.

    

    Purchase
      Orders.
      (a) Each
      request for purchase of services by ENVIROSAFE shall be pursuant to a fully
      completed written purchase order (a “Purchase Order”) executed and delivered to
      ANSCOTT. Each Purchase Order shall be deemed to specifically incorporate by
      reference this Agreement, and in the event of any inconsistency between this
      Agreement and any Purchase Order (other than as expressly permitted pursuant
      to
      the terms of this Agreement), this Agreement shall prevail. (b) No Purchase
      Order shall be binding upon ANSCOTT unless and until accepted in writing by
      ANSCOTT. ANSCOTT shall use commercially reasonable efforts to (i) timely notify
      ENVIROSAFE of the acceptance or rejection of such Purchase Order and (ii) on
      acceptance of such Purchase Order, deliver the Products on the requested
      delivery dates. Notwithstanding the foregoing, ENVIROSAFE acknowledges and
      agrees that (iii) ANSCOTT shall have the right to reject Purchase Orders and/or
      to delay or defer shipments of products in the event that ENVIROSAFE is in
      arrearages of any payments. Then those amounts due and owing ANSCOTT or
      otherwise in material breach of this Agreement and (iv) such action by ANSCOTT
      shall neither constitute a breach of this Agreement by ANSCOTT or excuse
      performance of ENVIROSAFE. 

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

    Payment
      Terms.
      ENVIROSAFE shall pay ANSCOTT the price for such services in accordance with
      Standard Payment Terms of payment in full after services rendered and prior
      to
      shipment, or as otherwise mutually agreed by the Parties, as set forth in the
      Purchase Order. 

    

    Inspection.
      ENVIROSAFE shall have five (5) days following the delivery of Products to
      ENVIROSAFE to inspect all Products to determine whether any damage to the
      Product occurred during shipment or whether there is any shortage or discrepancy
      between the Products actually delivered and the applicable shipping documents
      (a
“Discrepancy”). ENVIROSAFE will retain all Products for which there is a
      Discrepancy in their original packaging for inspection by ANSCOTT or the
      insurer. Within 3 days following the discovery of any Discrepancy, ENVIROSAFE
      shall notify ANSCOTT of such Discrepancy in writing and, unless otherwise
      directed by ANSCOTT. ENVIROSAFE shall make appropriate claims under the shipment
      insurance and commence arrangements to insure any ship the Products back to
      ANSCOTT as soon as practicable, but in no event longer than (5) days from the
      discovery of the Discrepancy. The proceeds of such insurance shall be used
      to
      cover the cost of the repair or replacement of the Products for which a
      Discrepancy has occurred, including the cost of return shipment and insurance
      and replacement shipment and insurance. In the event insurance proceeds do
      not
      cover all such costs, such additional costs shall be borne equally by ANSCOTT
      and ENVIROSAFE. 

     

    

    ARTICLE
      3
      - LIMITED PRODUCT WARRANTY

    

    Warranties.
      ANSCOTT
      will offer a Limited Warranty to produce ENVIROSAFE products in accordance
      with
      manufacturing procedures supplied by ENVIROSAFE .

    

    ANSCOTT
      MAKES NO OTHER WARRANTIES TO CUSTOMERS WITH RESPECT TO THE PRODUCT AND DISCLAIMS
      ALL OTHER WARRANTIES, INCLUDING WARRANTIES OF MERCHANTABILITY AND FITNESS FOR
      A
      PARTICULAR PURPOSE.

    

    OTHER
      THAN AS SET FORTH IN ARTICLE 2 ABOVE, ANSCOTT PROVIDES THE PRODUCTS TO
      ENVIROSAFE ON AN “AS IS” BASIS. ENVIROSAFE SHALL OFFER OR MAKE NO WARRANTIES,
      REPRESENTATIONS, OR STATEMENTS, EXPRESS OR IMPLIED, WITH RESPECT TO THE PRODUCT
      TO CUSTOMERS, AND ANY SUCH WARRANTIES, REPRESENTATIONS, OR STATEMENTS SHALL
      BE
      VOIDED, INVALID, AND UNENFORCEABLE AGAINST MANUFACTUURER.

    

    THE
      SOLE
      AND EXCLUSIVE REMEDY OF ENVIROSAFE FOR ANY DEFECT IN THE PRODUCTS SHALL BE
      TO
      OBTAIN REPLACEMENT OF THE DEFECTIVE ITEMS THAT ARE RETURNED TO ANSCOTT POINT
      OF
      SHIPMENT, FREIGHT PREPAID. 

    

    ARTICLE
      4
      - CONFIDENTIALITY

    

    Each
      party agrees not to disclose any Confidential Information provided to it by
      the
      other party and to maintain such Confidential Information in strictest
      confidence, to take all reasonable precautions to prevent its unauthorized
      dissemination and to refrain from sharing any or all of the information with
      any
      third party for any reason whatsoever except as required by court order, both
      during and after the termination of this Agreement. Without limiting the scope
      of this duty, each party agrees to limit its internal distribution of the other
      party's Confidential Information only on a "need to know" basis and solely
      in
      connection with the performance of this Agreement, and to take steps to ensure
      that the disseminations is so limited. Each party agrees not to use the other
      party's Confidential Information for its own benefit or for the benefit of
      anyone other than the providing party. All Confidential Information remains
      the
      property of the providing party and no license or other rights in the provided
      Confidential Information is granted hereby. Upon written request of the
      providing party, or upon the expiration or other termination of this Agreement
      for any reason whatsoever, the recipient party agrees to return to the providing
      party all such provided Confidential Information, including but not limited
      to
      all documentation, notes, plans, drawings, and copies thereof. Confidential
      information will include but be limited to information regarding each parties
      product formulas, customers, pricing, client contacts and
      suppliers.

    

    The
      parties agree that the terms of this Agreement are confidential, and that
      neither shall disclose any such terms to any third party without prior written
      consent of the other.

    

    The
      provisions of this Section shall survive the expiration or other termination
      of
      this Agreement.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      5
      - REPRESENTATIONS AND WARRANTIES

    

    Each
      Party hereby represents and warrants to the other Party as follows:

    

    Existence
      and Power.
      Such
      Party is duly organized, validly existing and in good standing under the laws
      of
      the jurisdiction of its organization and is in compliance with all material
      requirements of applicable law.

    

    Authorization
      and Enforcement of Obligations.
      Such
      Party (a) has the power, authority and legal right to enter into this Agreement,
      perform its obligations hereunder and consummate the transactions with third
      parties contemplated hereby and (b) has taken all necessary action on its part
      to authorize the execution and delivery of this Agreement and the performance
      of
      its obligations hereunder. This Agreement constitutes a legal, valid and binding
      obligation of each Party, enforceable against such Party in accordance with
      its
      terms.

    

    No
      Consents.
      All
      necessary consents, approvals and authorizations of all governmental authorities
      and other Persons required to be obtained by such Party in connection with
      this
      Agreement and the consummation of transactions with third parties contemplated
      hereby have been obtained.

    

    No
      Conflict.
      The
      execution and delivery of this Agreement, performance of such Party's
      obligations hereunder and consummation of the transactions with third parties
      contemplated hereby do not conflict with or violate any requirement of any
      applicable law of regulations and do not conflict with or constitute a default
      under any contractual obligation of such Party.

    

    Liens
      and Encumbrances.
      Providing that ENVIROSAFE is current with all payments due, ANSCOTT will not
      cause any liens or encumbrances to be placed on ENVIROSAFE inventory or
      equipment on the premises of ANSCOTT.

    

    Indemnification.
      ANSCOTT
      will indemnify ENVIROSAFE and hold harmless any liability in connection with
      its
      breach of representations and warranties in connection with its performance
      under this agreement. ENVIROSAFE will indemnify ANSCOTT and hold harmless any
      liability in connection with its breach of representations and warranties in
      connection with its performance under this agreement.

    

    

    ARTICLE
      6
      - TERM AND TERMINATION

    

    Term.
      This
      Agreement shall commence on the Effective Date and continue in force for one
      (1)
      years with an automatic renewal at market rates unless notified within one
      (1)
      month of renewal that a party chooses not to renew. 

    

    Termination.
      For
      cause by either party without prejudice to any rights either party may have
      under this Agreement or in law, equity or otherwise, either party shall have
      the
      right to terminate this Agreement if the other party materially defaults in
      the
      performance of any of its obligations or materially breaches any term,
      provision, warrant, or representation under this Agreement ("Default")
      and
      fails to correct the Default or to commence any and all steps reasonably
      necessary to cure such Default within thirty (30) days of receipt of written
      notice of such Default by the non-defaulting party.

    

    ENVIROSAFE
      may
      terminate the H.D. REALTY Lease and/or ANSCOTT Manufacturing agreements with
      a
      one (1) month notice.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    Effect
      of Termination.
      On
      termination of this Agreement for any reason, all rights granted by either
      party
      to one another hereunder shall automatically and completely revert to the
      granting party on the effective date of Termination, unless otherwise agreed
      to
      in writing by the Parties. 

    

    
      	(a)  	
              Within
                ten (10) days of the effective date of such Termination, both parties
                shall submit to one another:

            

    

    

    
      	(b)  	
              A
                list of all Products in the possession, custody, or control of the
                other
                party as of the effective date of such
                termination.

            

    

    

    
      	(c)  	
              All
                unshipped Product Orders shall be automatically
                canceled.

            

    

    

    
      	(d)  	
              All
                monies then outstanding and due to one party by the other party shall
                immediately be payable in full, and shall be paid to the other party
                within ten (10) days of the effective date of
                termination.

            

    

    

    
      	(e)  	
              Both
                parties shall promptly return to the other party any and all property
                of
                any kind belonging to the other
                party.

            

    

    

    

    NO
      ACTION, REGARDLESS OF FORM, ARISING OUT OF THE TRANSACTIONS UNDER THIS AGREEMENT
      MAY BE BROUGHT BY EITHER PARTY MORE THAN ONE (1) YEAR AFTER THE PARTY KNEW
      OF
      THE OCCURRENCE OF THE EVENT(S) GIVING RISE TO THE CAUSE OF ACTION.

    

    
      	(a)  	
              The
                provisions of this paragraph shall survive the termination of this
                Agreement. 

            

    

    

    ARTICLE
      7
      - MISCELLANEOUS

    

    Independent
      Contractors.
      Both
      ANSCOTT and ENVIROSAFE are independent contractors not affiliated with one
      another and shall retain its independent status throughout this Agreement and
      use it own discretion in performing the tasks assigned. No employment
      relationship is created by this Agreement. Both parties will report as income
      to
      the appropriate government agencies all compensation received pursuant to this
      Agreement and will pay all applicable taxes. Neither party will not make
      deductions from its fees, nor shall it in any way be deemed liable to the other
      party, for taxes, insurance, bonds, or any other subscription of any kind.
      Both
      parties will be responsible for and will promptly pay all relevant taxes,
      chargeable or assessed with respect to its employees. ENVIROSAFE employees
      and
      sub-contractors will be under the sole and exclusive direction and control
      of
      ENVIROSAFE, will not be considered employees of ANSCOTT for any purpose, and
      are
      ineligible for any ANSCOTT employee benefits.

    

    No
      Assignment.
      Neither
      party may assign or transfer this Agreement either directly or indirectly.
      Any
      such assignment in violation of this Section shall be void, unenforceable,
      and a
      material breach of this Agreement by the breaching party.

    

    Notice.
      Any
      notice given by either party to the other party shall be in the English language
      and shall be sent by courier, mail, electronic mail or electronic transmission
      (facsimile) confirmed by mail to the other party's signatory at the address
      set
      forth in this Agreement or as shall have otherwise been notified to the other
      party. Notices shall be deemed delivered on confirmed receipt.

    

    Force
      Majeure.
      Neither
      party will be deemed in default or breach of this Agreement to the extent that
      performance of its obligations or attempts to cure any breach are delayed or
      prevented by reason of any act of God, fire, natural disaster, accident, act
      of
      government, or an act that is beyond the reasonable control of either party,
      provided that such party gives the other party written notice thereof promptly
      and, in any event, within fifteen (15) days of discovery thereof and uses its
      best efforts to continue to so perform or cure. In the event of such a Force
      Majeure, the time for performance or cure will be extended for a period equal
      to
      the duration of the Force Majeure, but in no event more than thirty (30)
      days.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    Severability. 
      If any
      part of this Agreement is held to be invalid or unenforceable, such invalidity
      or unenforceability shall not affect the validity or enforceability of any
      other
      part of provision of this Agreement, which shall remain in full force and
      effect.

    

    Governing
      Law: Remedies.

    

    
      	(i)  	
              This
                Agreement shall be governed by and construed in accordance with the
                laws
                of the state of New Jersey, United States of America, as applicable
                to
                contracts made to be performed within such state without giving effect
                to
                its conflict of law provisions. Both Parties expressly consent to
                jurisdiction and venue in a court of competent jurisdiction in the
                County
                of Passaic State of New Jersey over all disputes had by one party
                against
                the other arising out of this
                Agreement.

            

    

    

    
      	(ii)  	
              If
                any action is brought to enforce or interpret this Agreement, the
                prevailing Party will recover its reasonable attorneys fees and other
                costs incurred in that action from the other Party, in addition to
                any and
                all other relief to which the prevailing Party may be
                entitled.

            

    

    

    No
      Waiver.
      The
      waiver of any provision of this Agreement by either party, or the failure of
      either party to require performance of any provision of this Agreement shall
      not
      be construed as a waiver of its rights to insist on performance of that same
      provision, or any other provision, at some other time. Any waiver, variation
      or
      amendment, or modification, of any term or condition of this Agreement shall
      be
      effective only if in writing signed by an authorized representative of both
      parties hereto. The waiver by either party of any right created by this
      Agreement is one or more instances shall not be construed as a further
      continuing waiver of such right or any other right created by this
      Agreement.

    

    Language.
      The
      governing language of this Agreement shall be English, and the American usage
      thereof, and all measurements and calendars shall be those conventions used
      in
      the U.S. In the event this Agreement is translated into another language, the
      English version shall control if there is a conflict in the meaning of the
      translated version and the English version.

    

    Entire
      Agreement.
      The
      English language version of this Agreement shall be the official text hereof,
      despite translations or interpretation of this Agreement in other languages.
      This Agreement constitutes the entire agreement between parties concerning
      the
      subject matter hereof, and expressly supercedes any prior written or oral
      understandings or agreements between them with respect to the subject matter
      hereof.

    

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

    

    

    

    ANSCOTT
      CHEMICAL, INC.    ENVIROSAFE
      CORPORATION

    

    By:___________________________
        By:
      __________________________

    

    Name:
            
Name:
       

     

    Title:                           
      Title:
       

     

    Date:                                                               
      Date:

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    Appendix
      A

    

    

    
      	
              Material
                Handling and Space

            	
              Item
                #

            	
              Pricing

            	
               

            	
              Goods
                and Services

            	
              Item
                #

            	
              Pricing

            
	 	 	 	 	 	 	 
	
              Monthly
                Storage Space 1,000 - 5,000 Sq Ft 

            	
              VIC001A

            	
              2.50
                Per Sq Ft

            	 	
              UPS
                Freight Charges

            	
              VIC011

            	
              Cost
                + 15%

            
	
              Monthly
                Storage Space 5,001 - 10,000 Sq Ft 

            	
              VIC001B

            	
              1.50
                Per Sq Ft

            	 	
              Truck
                Freight Charges

            	
              VIC012

            	
              Cost
                + 15%

            
	
              Monthly
                Storage Space 10,001 - 20,001 Sq Ft 

            	
              VIC001C

            	
              .83
                Per Sq Ft

            	 	
              Miscellaneous/
                Contractor

            	
              VIC019

            	
              Cost
                + 15%

            
	
              Monthly
                Storage Space 20,001 - 30,000 Sq Ft 

            	
              VIC001D

            	
              .71
                Per Sq Ft

            	 	
              Skid
                (48x40)

            	
              VIC020

            	
              13.00
                Per Skid

            
	
              Daily
                Office Space plus phone service

            	
              VIC001E

            	
              35.00
                Per Day 

            	 	
              Boxes
                (4x1)

            	
              VIC021

            	
              1.00
                Per Box

            
	
              Daily
                Meeting Space with Overhead

            	
              VIC001F

            	
              50.00
                Per Day

            	 	
              Gallons
                untreated

            	
              VIC022

            	
              .80
                Per Gallon

            
	
              General
                Labor

            	
              VIC002A

            	
              28.00
                Per Hour

            	 	
              Gallons
                treated

            	
              VIC023

            	
              1.25
                Per Gallon

            
	
              Technical
                Labor

            	
              VIC002B

            	
              65.00
                Per Hour

            	 	
              Pails
                (steel lined)

            	
              VIC024

            	
              9.50
                Per Pail

            
	
              Professional
                Labor

            	
              VIC002C

            	
              85.00
                Per Hour

            	 	
              Pails
                (plastic)

            	
              VIC025

            	
              7.50
                Per Pail

            
	
              Drums
                In or Out

            	
              VIC003

            	
              1.97
                Per Drum

            	 	
              Drums
                (steel)

            	
              VIC026

            	
              40.00
                Per Drum

            
	
              Pails
                In or Out

            	
              VIC004

            	
              .24
                Per Drum

            	 	
              Drums
                (plastic)

            	
              VIC027

            	
              35.00
                Per Drum

            
	
              Boxes
                In or Out

            	
              VIC005

            	
              .24
                Per Box

            	 	
              Labels
                (setup)

            	
              VIC028

            	
              25.00
                Per Label

            
	
              Pallet
                Wrapping

            	
              VIC006

            	
              12.67
                Per Pallet

            	 	
              Labels
                (drum)

            	
              VIC029

            	
              .25
                Per Drum

            
	
              Cold
                Blending

            	
              VIC007A

            	
              .10
                - .24 Per Lb.

            	 	
              Labels
                (gallon)

            	
              VIC030

            	
              .12
                Per Gallon

            
	
              Hot
                Blending 

            	
              VIC007B

            	
              .10
                - .24 Per Lb.

            	 	
              Phone
                Lines w/one VM

            	
              VIC050

            	
              25.
                Per Line Monthly

            
	
              Specialized
                Blending

            	
              VIC007C

            	
              .38
                - 1.25 Per Lb.

            	 	
              Long
                Distance Interstate

            	
              VIC051

            	
              .075
                Per Minute

            
	
              Reaction
                Blending

            	
              VIC007D

            	
              Project
                Basis

            	 	
              Internet
                Access

            	
              VIC052

            	
              69.00
                Per Month

            
	
              Filling
                Pails & Gallons

            	
              VIC008A

            	
              .03
                - .10 Per Lb.

            	 	
              Voice
                Mail Box

            	
              VIC053

            	
              3.95
                Per Month

            
	
              Filling
                Under 128Oz

            	
              VIC008B

            	
              .10
                - .15 Per Lb.

            	 	
              Accounting
                Services

            	
              VIC075

            	
              Project
                Basis

            
	
              Copying

            	
              VIC009

            	
              .07
                Per Sheet

            	 	
              Engineering
                Services

            	
              VIC076

            	
              Project
                Basis

            
	
              Documentation

            	
              VIC010

            	
              .10
                Per Sheet

            	 	
              Laboratory
                Services

            	
              VIC077

            	
              Project
                Basis

            

    

     

    
 

    
      
        
        

      

      
        6

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