Document:

CONSULTING
      AGREEMENT

     

    CONSULTING
      AGREEMENT dated as of March 31 2008 (the “Agreement”) by and between Straw
      Marketing, a Delaware corporation and Darryl Strawberry (collectively, the
      “Consultant”) and Spongetech Delivery Systems, Inc.. a Delaware corporation (the
“Company”).

     

    WHEREAS,
      the Company is in the business of designing, producing, and distributing
      cleaning products for vehicular and household uses;

     

    WHEREAS,
      the Company desires to engage the Consultant as a consultant and in connection
      therewith the Consultant shall provide certain consulting services related
      to
      the development of the Company’s business and promotion of the Company’s
      products and Consultant is willing to be engaged by the Company as a consultant
      and to provide such services, on the terms and conditions set forth
      below;

     

    NOW,
      THEREFORE, in consideration of the mutual covenants and agreements contained
      herein, the receipt and sufficiency of which are hereby acknowledged, the
      Company and Consultant agree as follows:

     

    1. Consulting. The
      Company hereby retains Consultant, and Consultant hereby agrees to make himself
      available as a consultant to the Company, upon the terms and subject to the
      conditions contained herein. During the Consultant Term (as hereinafter
      defined), Consultant shall provide certain consulting services to the Company
      as
      requested by management, including but not limited to: 

     

    A.
      Make
      promotional appearances on behalf of the Company; 

     

    B.
      Coordinate promotional appearances and campaigns with the New York Yankees
      and
      the New York Mets; 

     

    C.
      Introduce the Company to promotional opportunities with Major League Baseball;
      

     

    D.
      Arrange meetings with the Company and other parties to coordinate licensing
      agreements or arrangements; and 

     

    E.
      Attend
      trade shows with the Company to promote its products. 

     

    2. Term.
      Subject
      to the provisions for termination hereinafter provided, the term of this
      Agreement shall commence on the date hereof (the “Effective Date”) and shall
      continue until February 28, 2009 (the “Consultant Term”). 

     

    3. Compensation.
      A. In
      consideration of the services to be rendered by Consultant hereunder, during
      the
      Consultant Term the Company agrees to pay to Consultant, and Consultant agrees
      to accept, as a consulting fee of an aggregate of $40,000 (the “Consulting
      Fee”).
      payable quarterly as follows: 

     

    (a).
      $10,000, upon execution hereof; 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b).
      $10,000 on June 1, 2008; 

     

    (c).
      $10,000 on September 1, 2008; and

     

    (d).
      $10,000 on December 1, 2008. 

     

    B. In
      addition, the Company agrees to issue to the Consultant 500,000 shares of common
      stock of the Company (the “Shares”). The Company shall use its best efforts to
      register the Shares using a registration statement on Form S-8. The Company
      shall file such Form S-8 with the Securities and Exchange Commission within
      one
      (1) year of the execution of this Agreement.

     

    C.
       The
      Company agrees to pay to Consultant $10,000 upon the execution of a Licensing
      Agreement entered into by the Company with a party introduced to the Company
      by
      the Consultant. In addition, in connection with any such licensing agreement,
      at
      such time after the Company shall have received $750,000 in gross receipts
      from
      the sale of such licensed product, the Company shall pay the Consultant as
      a
      bonus, 1.5% for every $1,000,000 in gross receipts from the sale of such
      licensed product. 

     

    4. Termination.
      The
      Company may, in its discretion and at its option terminate this Agreement at
      any
      time.

     

    5. Reimbursement.
      The
      Company will reimburse Consultant for all reasonable out-of-pocket expenses
      incurred in connection with this Agreement.

     

    6. Investment
      Representations.

     

    A. Consultant
      Bears Economic Risk.
      The
      Consultant must bear the economic risk of this investment indefinitely unless
      the Shares are registered pursuant to the Securities Act of 1933, as amended
      (the “Securities Act”), or an exemption from registration is available. The
      Consultant also understands that there is no assurance that any exemption from
      registration under the Securities Act will be available and that, even if
      available, such exemption may not allow the Consultant to transfer all or any
      portion of the shares of the common stock of the Company to be received by
      the
      Consultant pursuant to this Agreement under the circumstances, in the amounts
      or
      at the times the Consultant might propose.

     

    B. Acquisition
      for Own Account.
      The
      Consultant is acquiring the Shares to be received by the Consultant pursuant
      to
      this Agreement for its/his own account for investment only, and not with a
      view
      towards distribution.

     

    C. The
      Consultant Can Protect His Interest.
      The
      Consultant represents that by reason of its/his business or financial
      experience, the Consultant has the capacity to protect its/his own interests
      in
      connection with the transactions contemplated by this Agreement. Further, the
      Consultant is aware of no publication of any advertisement in connection with
      the transactions contemplated by this Agreement.

     

    D. Company
      Information.
      The
      Consultant has had an opportunity to discuss the Company’s business, management
      and financial affairs with directors, officers and management of the Company
      and
      has had the opportunity to review the Company’s operations and facilities. The
      Consultant has also had the opportunity to ask questions of and receive answers
      from the Company and its management regarding the terms and conditions of this
      investment. 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    E. Transfer
      Restrictions. The
      Consultant will not sell or otherwise transfer the Shares, without registration
      under the Securities Act or unless an exemption from registration is available.
      

     

    F. Rule
      144.
      The
      Consultant acknowledges and agrees that the common stock of the Company to
      be
      received by the Consultant pursuant to this Agreement must be held indefinitely
      unless it is subsequently registered under the Securities Act or an exemption
      from such registration is available. The Consultant is aware that the Shares
      are
“restricted securities,” as such term is defined in Rule 144 promulgated under
      the Securities Act. The Consultant has been advised or is aware of the
      provisions of Rule 144 promulgated under the Securities Act as in effect from
      time to time, which permits limited resale of shares purchased in a private
      placement subject to the satisfaction of certain conditions, including, among
      other things: the availability of certain current public information about
      the
      Company and the resale occurring following the required holding period under
      Rule 144.

     

    G. No
      Representations or Warranties.
      No
      representations or warranties have been made to the Consultant by the Company
      or
      any officer, director, employee, agent, affiliate or subsidiary of the Company
      other than those contained herein, and in accepting shares of common stock
      of
      the Company, the Consultant is not relying on any representations other than
      those contained herein.

     

    H. Legend. The
      Consultant understands and acknowledges that any shares of common stock of
      the
      Company to be received by the Consultant pursuant to this Agreement shall bear
      a
      legend substantially as follows until such time as (a) such securities shall
      have been registered under the Securities Act, or (b) in the opinion of counsel
      for the Company such securities may be sold without registration under the
      Securities Act as well as any applicable state securities laws:

     

    “THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OR ANY STATE SECURITIES LAW AND MAY NOT BE PLEDGED, HYPOTHECATED,
      SOLD OR TRANSFERRED UNLESS REGISTERED AND QUALIFIED UNDER THE SECURITIES ACT
      AND, IF APPLICABLE, STATE SECURITIES LAWS, OR IN THE OPINION OF COUNSEL
      REASONABLY SATISFACTORY TO THE COMPANY SUCH REGISTRATION AND QUALIFICATION
      ARE
      NOT REQUIRED.”

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    6. Confidential
      Information.
      Consultant recognizes and acknowledges that by reason of Consultant’s retention
      by and service to the Company before, during and, if applicable, after the
      Consulting Term, Consultant will have access to certain confidential and
      proprietary information relating to the Company’s business, which may include,
      but is not limited to, trade secrets, trade “know-how,” product development
      techniques and plans, formulas, customer lists and addresses, financing
      services, funding programs, cost and pricing information, marketing and sales
      techniques, strategy and programs, computer programs and software and financial
      information (collectively referred to as “Confidential Information”). Consultant
      acknowledges that such Confidential Information is a valuable and unique asset
      of the Company and Consultant covenants that she will not, unless expressly
      authorized in writing by the Company, at any time during the Consulting Term
      use
      any Confidential Information or divulge or disclose any Confidential Information
      to any person, firm or corporation except in connection with the performance
      of
      Consultant’s duties for the Company and in a manner consistent with the
      Company’s policies regarding Confidential Information. Consultant also covenants
      that at any time after the termination of this Agreement, directly or
      indirectly, she will not use any Confidential Information or divulge or disclose
      any Confidential Information to any person, firm or corporation, unless such
      information is in the public domain through no fault of Consultant or except
      when required to do so by a court of law, by any governmental agency having
      supervisory authority over the business of the Company or by any administrative
      or legislative body (including a committee thereof) with apparent jurisdiction
      to order Consultant to divulge, disclose or make accessible such information.
      All written Confidential Information (including, without limitation, in any
      computer or other electronic format) which comes into Consultant’s possession
      during the Consulting Term shall remain the property of the Company. Except
      as
      required in the performance of Consultant’s duties for the Company, or unless
      expressly authorized in writing by the Company, Consultant shall not remove
      any
      written Confidential Information from the Company’s premises, except in
      connection with the performance of Consultant’s duties for the Company and in a
      manner consistent with the Company’s policies regarding Confidential
      Information. Upon termination of this Agreement, the Consultant agrees to return
      immediately to the Company all written Confidential Information (including,
      without limitation, in any computer or other electronic format) in Consultant’s
      possession. 

     

    7. Independent
      Contractor.
      It is
      understood and agreed that this Agreement does not create any relationship
      of
      association, partnership or joint venture between the parties, nor constitute
      either party as the agent or legal representative of the other for any purpose
      whatsoever; and the relationship of Consultant to the Company for all purposes
      shall be one of independent contractor. Neither party shall have any right
      or
      authority to create any obligation or responsibility, express or implied, on
      behalf or in the name of the other, or to bind the other in any manner
      whatsoever.

     

    8. Conflict
      of Interest.
      The
      Consultant and the Company hereby agree that there is no conflict of interest
      in
      connection with the retention by the Company of the Consultant pursuant to
      this
      Agreement.

     

    9. Waiver
      of Breach.
      The
      waiver by any party hereto of a breach of any provision of this Agreement shall
      not operate nor be construed as a waiver of any subsequent breach.

     

    10. Binding
      Effect; Benefits.
      None of
      the parties hereto may assign his or its rights hereunder without the prior
      written consent of the other parties hereto, and any such attempted assignment
      without such consent shall be null and void and without effect. This Agreement
      shall inure to the benefit of, and shall be binding upon, the parties hereto
      and
      their respective successors, permitted assigns, heirs and legal representatives.
      

     

    11. Notices.
      All
      notices and other communications which are required or may be given under this
      Agreement shall be in writing and shall be deemed to have been duly given (a)
      when delivered in person, (b) one (1) business day after being mailed with
      a
      nationally recognized overnight courier service, or (c) three (3) business
      days
      after being mailed by registered or certified first class mail, postage prepaid,
      return receipt requested, to the parties hereto at:

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

      
        	
                If
                  to the Company, to :

              	
                Spongetech
                  Delivery Systems, Inc.

              
	 	 
	 	
                43
                  West 33rd Street, Suite 600

              
	 	
                New
                  York, NY 10001

              
	 	 
	
                If
                  to the Consultant, to:

              	
                Straw
                  Marketing

              

      

    

     

    12. Entire
      Agreement; Amendments.
      This
      Agreement contains the entire agreement and supersedes all prior agreements
      and
      understandings, oral or written, between the parties hereto with respect to
      the
      subject matter hereof. This Agreement may not be changed orally, but only by
      an
      agreement in writing signed by the party against whom any waiver, change,
      amendment, modification or discharge is sought.

     

    13. Severability.
      The
      invalidity of all or any part of any provision of this Agreement shall not
      render invalid the remainder of this Agreement or the remainder of such
      provision. If any provision of this Agreement is so broad as to be
      unenforceable, such provision shall be interpreted to be only so broad as is
      enforceable.

     

    14. Governing
      Law; Consent to Jurisdiction.
      This
      Agreement shall be governed by and construed in accordance with the law of
      the
      State of New York without giving effect to the principles of conflicts of law
      thereof. The parties hereto each hereby submits herself or itself for the sole
      purpose of this Agreement and any controversy arising hereunder to the exclusive
      jurisdiction of the state courts in the State of New York.

     

    15. Headings.
      The
      headings herein are inserted only as a matter of convenience and reference,
      and
      in no way define, limit or describe the scope of this Agreement or the intent
      of
      the provisions thereof.

     

    16. Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed an original and all of which together shall constitute one and the same
      instrument. Signatures evidenced by facsimile transmission will be accepted
      as
      original signatures.

     

    [SIGNATURE
      PAGE FOLLOWS]

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

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

     

    
      	 	
              Spongetech
                Delivery Systems, Inc.

            
	 	 	 
	 	
              By:

            	
                  /s/
                Steven Moskowitz

            
	 	 	 
	 	 	 
	 	
              Straw
                Marketing

            
	 	 	 
	 	
              By:

            	
                  /s/
                Tracy Strawberry

            
	 	 	 
	 	 	 
	 	
                  /s/
                Darryl Strawberry 

            
	 	
              Darryl
                Strawberry

            

    

    

    
      
        
        

      

      
        6[Letter
      head of the New York Mets]

     

    Confidential
      treatment has been requested for portions of this exhibit. The copy filed
      herewith omits the information subject to the confidentiality request.
      Omissions
      are designated as [***]. A complete version of this exhibit has been filed
      separately with the Securities and Exchange Commission.

    

    April
      14,
      2008

    

    Steven
      Moskowitz

    Spongetech
      Delivery Systems, Inc.

    43
      West
      33rd
      Street

    New
      York,
      NY 10001

    

    Re:   
      Shea
      Stadium Advertising Agreement 

    

    Dear
      Mr.
      Moskowitz:

    

    I
      am
      writing to confirm the agreement reached between Sterling Mets, L.P.
      (“Sterling”), owner and operator of the New York Mets National League Baseball
      team (the “Mets”), and Spongetech Delivery Systems, Inc. (“Advertiser”),
      manufacturer of the Spongetech brand of vehicle cleaning products (“Spongetech”)
      for advertising rights during the 2008 baseball season.

    

    Per
      the
      agreement, Spongetech
      will receive the following advertising rights, goods and services during the
      2008 baseball season:

    

    1.
      The
      right to advertise Spongetech on one panel on each of two 7’ by 35’ rotating
      tri-vision signs, one located in right field, and the other located in left
      field, each next to the outfield foul poles. Each of Spongetech’s panels will be
      displayed on a one-third rotating basis during each Mets game at Shea Stadium
      (the “Stadium”) (i.e., three innings during a nine-inning game). Fabrication of
      the signage will be at the expense of Spongetech.

    

    2.
      Four
      Field Box tickets to ten mutually agreed upon Mets regular season games at
      the
      Stadium. 

    

    3.
      Sponsorship by Spongetech of a mutually agreed upon promotional day on May
      13,
      2008 (the “Event”), at the Stadium. On the Event date, a mutually agreed upon
      promotional item supplied by Advertiser, displaying Spongetech and the Mets
      logos, will be distributed to the first 12,000 kids (ages 12 and under) in
      attendance at the Stadium. 

    

    Sterling
      will promote the Event and Spongetech’s sponsorship thereof in: 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    
      	 	
              ·

            	
              One
                30 second announcement during each Mets game broadcast on each of
                (i)
                SportsNet New York; (ii) WPIX TV and (iii) WFAN radio, all during
                the
                two-week period prior to the Event.

            

    

    

    On
      the
      day of the Event, Advertiser will receive: 

    

    (a)
      Sponsorship of a pre-game baseball clinic at the Stadium for up to 125 children.
      Advertiser shall secure releases of liability in favor of Sterling, in a form
      acceptable to Sterling in its sole discretion, from each individual who will
      be
      permitted to enter the Stadium field. 

    

    (b)
      300
      upper reserved tickets to the game.

    

    
      
        (c)
          Sterling
          will display two 3’X 6’ banners bearing Spongetech’s logo on the first and third
base
          camera wells (the banners will be provided by Advertiser, at its
          expense).

      

    

    

    (d)
      “Welcome to Spongetech day” will appear periodically on the matrix scoreboard
      from the time the Stadium gates open until game time.

    

    
      
        4.
          Use
          of
          one 15-person Diamond View Suite, including food and beverages for 15 guests,
          on
          two mutually
          agreed upon Mets regular season home game dates. Advertiser shall be responsible
          for compliance with all usage rules issued by Sterling applicable to suite
          holders.

      

    

    

    The
      tickets and suites provided hereunder may not be used for a contest or promotion
      without the prior written approval of Sterling.

    

    Advertiser
      will be responsible for the content of its advertisements, subject to the
      reasonable approval of Sterling. Advertiser shall defend and indemnify Sterling
      against any claims relating to the content of any advertising materials
      submitted by Advertiser.

    

    Advertiser
      will pay [***]
      for
      the
      foregoing goods and services. (This is a net figure and will not be reduced
      by
      any commission or other amounts.) The payment shall be made in five equal
      installments of [***],
      due and
      payable on or before May 1, June 1, July 1, August 1 and September 1,
      2008.

    

    In
      the
      event of a default by Advertiser
      in
      making any payment due pursuant to this Agreement, which default shall not
      have
      been remedied within three (3) working days after notice of default has been
      given in writing to Advertiser
      by
      Sterling, then, in addition to any other remedies which may under the
      circumstances be available to Sterling, which are expressly reserved,
Advertiser
      shall be
      obligated to pay Sterling, on demand, interest on all unpaid sums at a rate
      equal to twelve (16%) per annum.

    

    Notwithstanding
      any other provision of this Agreement, this Agreement and any rights or
      exclusivities granted by Sterling hereunder shall in all respects be subordinate
      to each of the following, as may be amended from time to time (collectively,
      “MLB Documents”): (i) any present or future agreements entered into by, or on
      behalf of, any of the Major League Baseball (“MLB”) entities or affiliates, or
      the member Clubs acting collectively (“MLB Entities”), including, without
      limitation, agreements entered into pursuant to the Major League Constitution,
      the American and National League Constitutions, the Professional Baseball
      Agreement, the Major League Rules, the Interactive Media Rights Agreement,
      and
      each agency agreement and operating guidelines among the Major League Baseball
      Clubs and an MLB Entity, or (ii) the present and future mandates, rules,
      regulations, policies, bulletins or directives issued or adopted by the
      Commissioner or the MLB Entities. The issuance, entering into, amendment, or
      implementation of any of the MLB Documents shall be at no cost or liability
      to
      any MLB entity or affiliate or to any individual or entity related thereto.
      The
      territory within which Advertiser is granted rights is limited to, and nothing
      herein shall be construed as conferring on Advertiser rights in areas outside
      of, the Home Television Territory of the Mets, as established and amended from
      time to time. No rights, exclusivities or obligations involving the Internet
      or
      any interactive or on-line media (as defined by the MLB Entities) are conferred
      by this Agreement, except as are specifically approved in writing by the
      applicable MLB entity.

     

    
      
        

      

      [***]CERTAIN
        INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
        SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
        WITH RESPECT TO SUCH OMITTED PORTIONS.

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

       

    

    Additionally,
      this
      Agreement shall be subject and subordinate to the lease agreement for Shea
      Stadium between Sterling and the City of New York.

    

    Please
      sign below to indicate your assent to the foregoing material terms and return
      the signed letter to my attention.

    

    This
      letter shall be a binding and enforceable agreement once signed by both parties
      and a court may supply consistent additional terms as necessary to carry out
      the
      parties' intent.

    

    
      	
              Sincerely,

            
	
              /s/
                Paul Asencio

            

    

    

    
      	
              Agreed
                to and Accepted by:

            
	 
	
              Spongetech
                Delivery Systems, Inc.

            
	 
	
              /s/
                Steven Moskowitz

            
	
              By:
                Steven
                Moskowitz

            
	
              Title:
                COO

            
	 	 
	
              4/11/08

            
	
              Date

            

    

    

    
      
         

      

      
        3

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