Document:

Exhibit 10.18

                          Management Services Agreement

                                 By and between

         Azonic Corporation and Simmonds Mercantile and Management Inc.

This Management Services Agreement (this "Agreement") made as of the 1st day of
October 2004, by and between AZONIC CORPORATION a Nevada Corporation
(hereinafter "the Company'") and SIMMONDS MERCANTILE AND MANAGEMENT INC., a
corporation incorporated under the laws of the province of Ontario (hereinafter
the "Provider").

WHEREAS, the Company has the need for certain executive, accounting and
financial reporting, corporate secretarial, human resources and other general
management and administrative services relating to its operations, including
personnel services, finance, accounting, and investor relations; and

WHEREAS, the Provider has agreed to provide such executive, accounting and
financial reporting, corporate secretarial, human resources and other general
management and administrative services relating to its operations, including
personnel services, finance, accounting, and investor relations; and

WHEREAS, the Company has agreed to reimburse the Provider for the cost of such
executive, accounting and financial reporting, corporate secretarial, human
resources and other general management and administrative services relating to
its operations, including personnel services, finance, accounting, and investor
relations; and

NOW, THEREFORE, for and in consideration of the forgoing and the terms and
conditions contained hereinafter, the parties hereto agree as follows:

1.0 Term.

The initial term of this Agreement shall be for a 2 (two) year period beginning
and effective upon the closing of the purchase of certain assets from the
Filippo Guani Revocable Trust (the "Initial Term"); provided, however, that the
Company or the Provider may terminate this Agreement for cause at any time. The
Company may also terminate this Agreement without cause on 90 days prior written
notice, provided that the Company will be obligated to pay the lesser of: a) 6
(six) months fees or b) the remainder due under the Initial Term (provided that
the Company's failure to renew the Initial Term or any extension thereof shall
not constitute a termination by the Company for purposes of this sentence). This
agreement will automatically renew for successive terms of 1 (one) year unless
60 days prior written notice is provided to either party of intent to terminate
this agreement. As used herein, "cause" shall mean either the Company's failure
to timely make the payments specified in Section 3.0 hereof or the Provider's
failure to competently perform the services specified in Section 2.0 hereof, as
applicable, in each case after notice from one party to the other setting forth
the grounds on which the initiating party believes that this Agreement should be
terminated for cause and providing the other party with a reasonable opportunity
to cure any such deficiencies to the extent that such deficiencies are curable.

2.0 Services.

      2.1   The Provider agrees to provide, and the Company agrees to accept,
            executive, accounting and financial reporting, corporate
            secretarial, human resources and other general management and
            administrative services relating to its operations, including
            personnel services, finance, accounting, and investor relations,
            described in Exhibit A attached hereto and as otherwise mutually
            agreed by the Provider and the Company (the "services").

      2.2.  If not otherwise agreed, the specification of particular methods for
            rendering the Services and the assignment of personnel therefor will
            be determined by the Provider in such manner as in the Provider's
            judgement will best serve the objectives indicated by the Company.
            Such methods may include, but are not limited to: (a) remote
            consulting (by telephone, fax, E-

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mail, video conferencing, etc.); (b) written advice; (c) participation in
meetings, seminars and workshops; (d) secondment of employees for specific
activities; (e) supply of technical materials, studies and other information;
(f) introduction to persons, firms/companies which may be of interest to the
Company; and (g) other means mutually agreed upon from time to time.

3.0 Compensation.

In consideration for the Services, the Company shall pay the Provider a fee of
$20,000 per month, payable in advance for each calendar month during the Initial
Term or any extension thereof. The Company shall also reimburse the Provider for
its reasonable out-of-pocket expenses incurred in connection with the Services,
payable upon delivery of the Provider's invoice therefor.

4.0 Obligations.

      4.1   The Company agrees to fully cooperate with the Provider and to
            supply the Provider with any and all information reasonably
            necessary to enable the Provider to perform the Services hereunder,
            in such form as may be reasonably requested. The Company will give
            the Provider representatives' free access to any and all sources of
            information reasonably necessary to enable the Provider to
            satisfactorily perform the Services; provided that the Provider
            shall not, and shall not permit any of its representatives,
            employees or agents to, disclose any such information to any third
            party except to the extent necessary to enable the Provider to
            perform the services or to the extent required by applicable law.

      4.2   The Provider agrees to fully cooperate with the Company and to
            supply the Company with any and all information reasonably necessary
            to enable the Company to meet its legal and tax requirements.

5.0 Liability.

The Provider shall have no liability to the Company except to the extent of the
actual damages (excluding lost profits or special or punitive damages) suffered
by the Company as a direct result of the gross negligence or greater culpability
of the Provider.

6.0 Indemnity.

The Company shall indemnify the Provider and its officers, directors, employees,
independent contractors, agents and representatives, in their capacities as such
(each, an "Indemnified Party"), against and hold them harmless from and any all
damage, claim, loss, liability and expense (including, without limitation,
reasonable attorneys' fees and expenses) incurred or suffered by any Indemnified
Party arising out of or relating to the Services, except to the extent that such
damage, claim, loss, liability or expense is found in a final non-appeal able
judgement to have resulted from the Provider's gross negligence or willful
misconduct.

7.0 Notices.

All notices and other communications given or made pursuant to this Agreement
shall be in writing and shall be (i) sent by registered or certified mail,
return receipt requested, (ii) hand delivered, (iii) sent by electronic mail, or
(iv) sent by prepaid overnight carrier, with a record of receipt, to the parties
at the following addresses (or at such other addresses as shall be specified by
the parties by like notice):

(i)   if to the Provider at:
      Simmonds Mercantile and Management Inc.
      13980 Jane Street

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      King City, Ontario L7B A3
      Attention: John G. Simmonds, CEO

(ii)  if to the Company at:
      Azonic Corporation
      7 Dey Street, Suite 900
      New York, NY 10007
      Attention: Gregory Laborde

Each notice or communication shall be deemed to have been given on the date
received.

8.0 Miscellaneous Provisions.

      8.1   This Agreement contains the complete understanding of the parties
            hereto and there are no understandings, representations, or
            warranties of any kind, express or implied not specifically set
            forth herein. This Agreement may be amended only by written
            documents signed by duly authorized representatives of each of the
            parties hereto.

      8.2   This Agreement shall be governed, construed and interpreted in
            accordance with the laws of the State of New York.

      8.3   This Agreement may be executed in separate original or facsimile
            counterparts, each of which shall be deemed an original and both of
            which taken together shall constitute a single agreement.

      8.4   This Agreement shall be for the benefit of the Provider and the
            Company and shall be binding upon the parties and their respective
            successors and permitted assigns.

      8.5   Every provision of this Agreement is intended to be severable. If
            any term or provision hereof is illegal or invalid for any reasons
            whatsoever, such term or provision shall be enforced to the maximum
            extent permitted by law and, in any event, such illegality or
            invalidity shall not affect the validity of the remainder of the
            Agreement.

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

      AZONIC CORPORATION

     Per:________________________________________
     Gregory Laborde

     SIMMONDS MERCANTILE AND MANAGEMENT INC.

     Per:________________________________________
     John G. Simmonds

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EXHIBIT A

The   Services to be rendered under this Agreement may include, without
      limitation, the following:

1.    Assistance, advice and support in strategic policy, preparation of regular
      operating reviews, attendance at board meetings and the provision of
      operations consultancy and support;

2.    Assistance, advice and support in business organization, administration
      and logistics;

3.    Assistance, advice and support in business development, marketing,
      promotion, advertising and investor relations;

4.    Assistance, advice and support in human resources and training, including
      personnel recruitment, training and management as well as advice and
      assistance in human resource policies and procedures; also to engage and
      remunerate executive, secretarial, clerical and other non-executive staff
      and make them available to the Company. This may include making available
      the services of existing executive personnel.

5.    Assistance and advice in financial matters, including access to funds,
      cooperation with banks, cash management and treasury management;

6.    Assistance, advice and support in communications with the United States
      Securities and Exchange Commission;

7.    Assistance, advice and support in negotiating agreements with third
      parties;

8.    Provider may make available to the Company the services of such Provider's
      directors or executives for any purposes of the business including taking
      up appointments as directors, whether executive or non-executive, of the
      Company.

9.    Specifically under this agreement the Provider will include the following:

o     The following executives and appropriate responsibilities and obligations
      those positions hold:

Chief Executive Officer            - John Simmonds
Chief Financial Officer            - Gary Hokkanen
Corporate Secretary                - Carrie Weiler

Should it be determined that the Company requires additional services and human
resources, the Company and the Provider upon mutual consent may amend this
Agreement to incorporate any additions and fees associated with the amendments.

                                       4Exhibit 10.94

DRSUAA No.:_________

                DIRECTOR'S RESTRICTED STOCK UNIT AWARD AGREEMENT

Name: __________________________

Date: __________________

      1. (a) Pursuant to, among other things, Sections 6(e) and 6(h) of US
Energy Systems, Inc.'s 2000 Executive Incentive Compensation Plan (the "2000
Plan"), you are hereby granted, subject to your execution of this agreement and
the execution of this agreement by US Energy Systems, Inc. ("US Energy"), and
subject, with respect to awards granted subsequent to the date hereof, to the
prior approval of the Board or the Committee, the number of restricted stock
units ("Restricted Stock Units") issuable pursuant to Section 1(b) hereof.
Capitalized terms not otherwise defined herein shall have the meanings ascribed
to such terms by the 2000 Plan.

            (b) As of the last Business Day (as defined) of each calendar
quarter commencing July 1, 2003, you shall be entitled to the number of
Restricted Stock Units equal to the quotient obtained by dividing (i) the
product obtained by multiplying (A) the compensation payable to you in such
quarter for Directors Services (as defined) performed in such calendar quarter
by (B) 0.4 by (ii) the Fair Market Value of a share of Common Stock (as defined)
as of the close of business on the last Business Day of the applicable calendar
quarter.

            (c) The term "Business Day" shall mean any day other than Saturday,
Sunday, or a day on which banks in the State of New York are authorized or
obligated to be closed. The term "Director's Services" shall mean the fees and
compensation payable to Directors of US Energy for the applicable calendar
quarter for (i) serving a member of the Board, (ii) attending Board and/or
committee meetings, (iii) serving on one or more of committees, (iv) serving as
the chairman of a committee, and (v) any other services performed as a Director
of US Energy to the extent Directors of US Energy are compensated for such
services.

            (d) The Restricted Stock Units to which you are entitled pursuant to
Section 1(b) shall be deemed to have vested in full immediately upon the
applicable date to which you become entitled to same. Upon the expiration of the
deferral period provided for herein, each Restricted Stock Unit will be
converted automatically into one share of common stock of US Energy, par value
$.01 per share (the "Common Stock").

            (e) In the event the calculations provided for by Sections 1(b)
would result in the issuance of a fraction of a Restricted Stock Unit, the
number of units to which you are entitled shall be rounded to the nearest whole
number.

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      2. Delivery of Shares Underlying Restricted Stock Units. (a) Promptly
following the expiration of the deferral period provided for herein, US Energy
will deliver to you or to your legal representative a certificate representing
the shares of Common Stock underlying the applicable Restricted Stock Units
granted or to be granted to you pursuant to this agreement (the "Underlying
Shares").

            (b) You hereby irrevocably elect to defer receipt of the Underlying
Shares until the earlier to occur of (i) your death, (ii) your Disability, (iii)
a Change in Control, (iv) the cessation of your service as a Director or (v)
June 30, 2013. Upon the occurrence of any such event, the deferral period
effected herein shall immediately terminate and you shall promptly receive a
certificate for the number of Underlying Shares to which you are entitled
pursuant to this agreement. You acknowledge that, except as otherwise provided
in Section 2(c), you will not be entitled to any rights as a stockholder with
respect to such Restricted Stock Units, including without limitation, the right
to vote, until the deferral period has terminated,.

            (c) Contemporaneously with the grant of Restricted Stock Units to
you pursuant to this agreement, US Energy hereby grants you, pursuant to, among
other things, Section 6(g) of the 2000 Plan, Dividend Equivalent Rights (as
defined). The term "Dividend Equivalent Rights" shall mean your right to
receive, subject to your execution of an agreement in form reasonably acceptable
to US Energy, the number of Restricted Stock Units equal to the quotient
obtained by dividing the aggregate cash dividends that would have been payable
with respect to your Underlying Shares (as if such shares had been issued and
had not been deferred) as of the record date for the payment of such dividends
by the Fair Market Value of a share of Common Stock on such date. The terms and
conditions of the Restricted Stock Units granted pursuant to these Dividend
Equivalent Rights shall be the same as otherwise provided herein. The Restricted
Stock Units, if any, granted pursuant to the Dividend Equivalent Rights, shall
be deemed to be granted as of the payment date for the applicable dividend
payment.

            (d) Upon the occurrence of a Change in Control, the provisions of
Section 9 (a) of the 2000 Plan shall apply.

            (e) US Energy shall deliver to you from time to time at your request
a statement reflecting the number of Restricted Stock Units to which you are
entitled pursuant to this agreement.

      3. Transferability. You may not transfer, pledge, assign, sell or
otherwise alienate your Restricted Stock Units or the Underlying Shares until
the termination or expiration of the deferral period with respect thereto.

      4. Taxes. US Energy shall deduct or cause to be deducted from, or collect
or cause to be collected with respect to, your Restricted Stock Units (including
the Underlying Shares) any federal, state, or local taxes required by law to be
withheld or paid with respect to your Restricted Stock Units (including the
Underlying Shares) and you or your legal representative or beneficiaries shall
be required to pay any such amounts. US Energy shall have the right to take such
action as may be necessary, in its reasonable judgment, to satisfy such
obligations.

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<PAGE>

      5. Governing Law. The validity, construction and effect of this Agreement
shall be determined in accordance with the laws of the State of Delaware without
giving effect to principles of conflicts of law.

      6. Subject To 2000 Plan. This Agreement and the grant of Restricted Stock
Units are subject to all of the terms and conditions of the 2000 Plan. In the
event of a conflict between this Agreement and the 2000 Plan, the 2000 Plan
shall govern.

      7. Section 16. Notwithstanding anything to the contrary herein, in the
event that you would be subject to liability for short swing profits pursuant to
Section 16 of the Exchange Act resulting from the distribution to you of the
Underlying Shares, then, except as otherwise provided by the Plan, the
distribution of the Underlying Shares will be deferred and/or limited to the
extent necessary to eliminate such liability.

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      Please indicate your acceptance of the foregoing by signing at the place
provided and returning the original of this Agreement.

                                            Very truly yours,

                                            US ENERGY SYSTEMS, INC.

                                        By: ____________________________________

ACCEPTED AND AGREED:

_______________________________

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