Document:

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                                                                    Exhibit 10.2

                                    AGREEMENT

         THIS AGREEMENT (this "Agreement") is effective as of the April 1, 2005
pending the closing of the merger (the "Separation Date"), between Mittal Steel
N.V. and International Steel Group Inc. (the "Company"), located at 4020 Kinross
Lakes Parkway, Richfield, Ohio 44286 and JEROME V. NELSON ("Executive"),
residing at 7544 South Mannheim Court, Hudson, Ohio 44236

                                   WITNESSETH:

         WHEREAS, prior to the Separation Date, Executive was the Vice President
Sales & Marketing of the Company;

         WHEREAS, effective on the Separation Date, Executive resigned as an
employee of the Company, and from any and all offices of the Company and its
subsidiaries, and any other position, office or directorship of any other entity
for which Executive was serving at the request of the Company; and

         WHEREAS, the Company accepts Executive's resignation as of the date
referenced above; and

         WHEREAS, the Company and Executive desire to set forth the payments and
benefits that Executive will be entitled to receive from the Company in
connection with his resignation from employment with the Company; and

         WHEREAS, the Company and Executive wish to resolve, settle and/or
compromise certain matters, claims and issues between them, including, without
limitation, Executive's resignation from the offices he held and from his
employment with the Company.

         NOW, THEREFORE, in consideration of the promises and agreements
contained herein and other good and valuable consideration, the sufficiency and
receipt of which are hereby acknowledged, and intending to be legally bound, the
Company and Executive hereby agree as follows:

         1. RESIGNATION. Executive hereby resigns, effective on the Separation
Date, his employment with the Company and its subsidiaries and related or
affiliated companies, and his position as Vice President Sales & Marketing of
the Company. Executive further resigns, effective on the Separation Date, from
any other directorship, office, or position of the Company or any entity that is
a subsidiary of, or is otherwise related to or affiliated with, the Company (or
to which he has otherwise been appointed). The Company hereby consents to and
accepts said resignations.

         2. COMPENSATION AND BENEFITS. Subject to the conditions hereof, the
Company and Executive agree to the following:

                  a. SEVERANCE COMPENSATION. As severance compensation, the
Company shall pay Executive an amount equal to $1,348,061.34. Such amount shall
be paid to Executive

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in a lump sum payment, within ten (10) business days following the Executive's
execution of this Agreement and the expiration of the revocation period set
forth in Paragraph 4.c.(iv) hereof if Executive has not exercised his right of
revocation pursuant to such paragraph prior to such date. All of Executive's
Stock Options shall be cancelled as of the effective time of the merger with
Mittal Steel Company and Executive will receive in cash an amount equal to the
difference between $42.00 per share and the applicable per share exercise price
of the option.

                  b. MEDICAL COVERAGE. Executive shall he entitled to continue
to participate in the Company's medical, prescription drug, and dental plans or
programs in which he participated immediately prior to the Separation Date (with
a monthly premium cost to Executive equal to the premium cost as in effect for
active employees of the Company with respect to such plans or programs, as
amended or changed from time to time) until the earlier of (i) Executive's
coverage under another employer's or any other medical, prescription drug and/or
dental plans or programs or (ii) 24 months following the Separation Date (the
"Benefit Period"). The Company agrees that the period of coverage under such
plans shall not count against such plans' obligation to provide continuation
coverage pursuant to Part 6 of Subtitle B of Title I of the Employee Retirement
Income Security Act of 1974, as amended ("COBRA"). It is expressly understood
that the Company's payment obligations and Executive's participation rights
under this Paragraph 2.b. shall cease in the event Executive breaches any of the
agreements in Paragraph 3 hereof.

                  c. PROFESSIONAL FEES. The Company and Executive acknowledge
and agree that each shall be responsible for the payment of their respective
legal fees and costs (and related disbursements) incurred in connection with
Executive's resignation and all matters relating to the negotiation and
execution of the releases and all other matters covered by this Agreement;
provided however, that Executive shall be entitled to reimbursement of
reasonable attorney fees and expenses in connection with the enforcement of
Executive's rights under this agreement, provided that Executive is the
prevailing party in such a proceeding or dispute.

                  d. COMPANY BENEFIT PLANS. Except as provided above in
Paragraph 2.b. of this Agreement, Executive's post-Separation Date eligibility
for benefits, if any, as a past employee of the Company under the Company's
retirement and welfare benefit plans shall be as set forth in the respective
plan documents and shall be based on his employment termination on the
Separation Date, and his entitlement to benefits for the period of his
participation therein shall be determined pursuant to the terms thereof.

                  e. BUSINESS EXPENSES. The Company will reimburse Executive for
any reasonable business expenses incurred by Executive prior to the Separation
Date that are reimbursable pursuant to the Company's expense reimbursement
policies. All expense reimbursement requests must be presented to the Company
for payment not later than 30 days following the Separation Date.

                  f. ACCRUED SALARY. Executive shall be paid in accordance with
the Company's normal payroll cycle the gross amount of $10,100.00, less required
deductions, representing base salary through and including April 15, 2005; the
gross amount of $13,984.66, less required deductions, representing accrued but
unused 2005 vacation; and the grass amount

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of $181,800.00, less required deductions, representing the amount earned under
the Officers Cash and Stack Bonus Plan as of the Separation Date.

                  g. WITHHOLDING. The Company shall withhold such amounts from
the payments described herein as are required by applicable tax or other law.

         3. RESTRICTIVE COVENANTS. Executive will be bound by the following
restrictive covenants. If Executive fails to abide by any of the following
covenants, the Company may cease any remaining payments or benefits payable to
Executive hereunder.

                  a. For a period of 12 months after termination of the
Executive's employment with the Company, Executive shall not within the United
States, Canada and/or Mexico (i) engage, directly or indirectly, whether as an
employee, officer, director, consultant or otherwise, in the research,
development, manufacture, marketing, sale or distribution of steel or steel
products similar to those products sold or developed by the Company and/or any
Controlled Group member; (ii) solicit, directly, or indirectly, whether as an
employee, officer, director, consultant or otherwise, any person or entity which
is then a customer of the Company and/or any Controlled Group member or has been
a customer or solicited by the Company and/or any Controlled Group member for a
one (1) year period, to purchase steel or steel products from any entity other
than the Company and/or any Controlled Group member; (iii) solicit for
employment, engage and/or hire, whether directly or indirectly, any individual
who is then employed by the Company and/or any Controlled Group member; and/or
(iv) encourage or induce, whether directly or indirectly, any individual who is
then employed by the Company and/or any Controlled Group member to end his/her
business relationship with the Company and/or any Controlled Group member.

                  b. Executive will keep in strict confidence, and will not,
directly or indirectly, at any time during or after the Benefit Period,
disclose, furnish, disseminate, make available or, except in the course of
performing Executive's duties of employment, use any trade secrets or
confidential business and technical information of the Company or any Controlled
Group member or their customers or vendors, including without limitation as to
when or how Executive may have acquired such information. Such confidential
information shall include, without limitation, the Company's and any Controlled
Group member's unique selling, manufacturing and servicing methods and business
techniques, training, service and business manuals, promotional materials,
training courses and other training and instructional materials, vendor and
product information, customer and prospective customer lists, other customer and
prospective customer information and other business information. Executive
specifically acknowledges that all such confidential information, whether
reduced to writing, maintained on any form of electronic media, or maintained in
Executive's mind or memory and whether compiled by the Company, any Controlled
Group member and/or Executive, derives independent economic value from not being
readily known to or ascertainable by proper means by others who can obtain
economic value from its disclosure or use, that reasonable efforts have been
made by the Company and the Controlled Group members to maintain the secrecy of
such information, that such information is the sole property of the Company or
the Controlled Group members and that any retention and use of such information
by Executive during the Benefit Period shall constitute a misappropriation of
the Company's or any Controlled Croup member's trade secrets.

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                  c. For purposes of this Paragraph 3, "Controlled Group" shall
mean the Company and any other entity which is a member of the Company's
controlled group {as such term is defined in Sections 414(b) or 414(c) of the
Internal Revenue Code).

         4. RELEASE BY EXECUTIVE.

                  a. Executive for himself and his dependents, successors,
assigns, heirs, executors and administrators (and his and their legal
representatives of every kind), hereby releases, dismisses, remisses and forever
discharges the Company from any and all arbitrations claims (including claims
for attorney's fees), demands, damages, suits, proceedings, actions and/or
causes of action of any kind and every description, whether known or unknown,
which Executive now has or may have had for, upon, or by reason of any cause
whatsoever (except that this release shall not apply to (x) the obligations of
the Company arising under this Agreement and (y) Executive's rights of
indemnification by the Company, if any, pursuant to the Company's certificate of
incorporation or by-laws or any agreement between the Company and Executive),
against the Company ("claims"), including but not limited to:

                  (i) any and all claims, directly or indirectly, arising out of
         or relating to: (A) Executive's past employment or service with the
         Company; and (B) Executive's resignation as Vice President Sales &
         Marketing of the Company and any other position described in Paragraph
         1 of this Agreement.

                  (ii) any and all claims of discrimination, including but not
         limited to claims of discrimination on the basis of sex, race, age,
         national origin, marital status, religion or disability, including,
         specifically, but without limiting the generality of the foregoing, any
         claims under the Age Discrimination in Employment Act, as amended (the
         "ADEA"), Title VII of the Civil Rights Act of 1964, as amended, the
         Americans with Disabilities Act of 1990, the Family and Medical Leave
         Act of 1993 and Ohio Revised Code Chapter 4112;

                  (iii) any and all claims of wrongful or unjust discharge or
         breach of any contract or promise, express or implied; and

                  (iv) any and all claims under or relating to any and all
         employee compensation, employee benefit, employee severance or employee
         incentive bonus plans and arrangements, all of which Executive agrees
         are forfeited upon his resignation; provided that he shall remain
         entitled to the amounts and benefits described in Paragraph 2 above.
         Executive agrees that he intends to release any and all workers
         compensation claims he may have against the Company by this Agreement,
         and further agrees to execute any documentation as may be reasonably
         required to perfect such release when presented to him by the Company.

                  b. Executive understands and acknowledges that the Company
does not admit any violation of law, liability or invasion of any of his rights
and that any such violation, liability or invasion is expressly denied. The
consideration provided under this Agreement is made for the purpose of settling
and extinguishing all claims and rights {and every other similar or dissimilar
matter} that Executive ever had or now may have or ever will have against the

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Company to the extent provided in this Paragraph 4. Executive further agrees and
acknowledges that no representations, promises or inducements have been made by
the Company other than as appear in this Agreement.

                  c. Executive further understands and acknowledges that:

                  (i) The release provided for in this Paragraph 4, including
         claims under the ADEA to and including the date of this Agreement, is
         in exchange for the additional consideration provided for in this
         Agreement, to which consideration he was not heretofore entitled.

                  (ii) He has been advised by the Company to consult with legal
         counsel prior to executing this Agreement and the release provided for
         in this Paragraph 4, has had an opportunity to consult with and to be
         advised by legal counsel of his choice, fully understands the terms of
         this Agreement, and enters into this Agreement freely, voluntarily and
         intending to be bound;

                  (iii) He has been given a period of twenty-one days to review
         and consider the terms of this Agreement, and the release contained
         herein, prior to its execution and that he may use as much of the
         twenty-one day period as he desires; and

                  (iv) He may, within seven days after execution, revoke the
         release set forth in this Paragraph 4. Revocation shall be made by
         delivering a written notice of revocation to the Vice President of
         Human Resources at the Company. For such revocation to be effective,
         written notice must be actually received by the Vice President of Human
         Resources at the Company no later than the close of business on the
         seventh day after Executive executes this Agreement. If Executive does
         exercise his right to revoke this release, all of the terms and
         conditions of the Agreement shall be of no force and effect and the
         Company shall have no obligation to satisfy the terms or make any
         payment to Executive as set forth in Paragraph 2 of this Agreement.

                  d. Executive will never file a lawsuit or other complaint
asserting any claim that is released in this Paragraph 4.

                  e. Executive and the Company acknowledge that his resignation
is by mutual agreement between the Company and Executive, and that Executive
waives and releases any claim that he has or may have to reemployment.

                  f. For purposes of the above provisions of this Paragraph 4,
the "Company" shall include its present and former predecessors, subsidiaries,
divisions, related or affiliated companies, officers, directors, stockholders,
members, employees, heirs, successors, assigns, representatives, agents,
accountants and counsel.

         5. DISCLOSURE.

                  a. From the date of this Agreement through the end of the
Benefit Period, Executive will communicate the contents of Paragraphs 3, 6.b., 7
and 9 of this Agreement to any

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person, firm, association, or corporation other than the Company which he
intends to be employed by, associated in business with, or represent.

                  b. Executive shall take no action with respect to the
Company's common stock that is in violation of the federal securities laws.

         6. BREACH.

                  a. If Executive breaches any of the provisions of this
Agreement (and in the case of a breach that is capable of being cured, fails to
cure such breach within fifteen days after written notice by the Company to
Executive specifying the circumstances that constitute such breach), then the
Company may, at its sole option, immediately terminate all remaining benefits
described in this Agreement and obtain reimbursement from Executive of all
payments and benefits already provided pursuant to Paragraph 2 of this
Agreement, plus any expenses and damages incurred as a result of the breach
(including, without limitation, reasonable attorneys' fees), with the remainder
of this Agreement, and all promises and covenants herein, remaining in full
force and effect. Notwithstanding the foregoing, the Company will not terminate
pursuant to Paragraph 6.a. above any benefits to which Executive is entitled
under any tax-qualified retirement plan of the Company, and Executive's rights
under COBRA, if any, will not be reduced by any action taken by the Company
under Paragraph 6.a. above.

                  b. Executive acknowledges and agrees that the remedy at law
available to the Company for breach by Executive of any of his obligations under
Paragraphs 3 and 5 of this Agreement would be inadequate and that damages
flowing from such a breach would not readily be susceptible to being measured in
monetary terms. Accordingly, Executive acknowledges, consents and agrees that,
in addition to any other rights or remedies which the Company may have at law,
in equity or under this Agreement, upon adequate proof of Executive's violation
of any provision of Paragraphs 3 or 5 of this Agreement, the Company shall be
entitled to immediate injunctive relief and may obtain a temporary order
restraining any threatened or further breach, without the necessity of proof of
actual damage.

         7. CONTINUED AVAILABILITY AND COOPERATION.

                  a. Executive shall cooperate fully with the Company, the
Company's counsel and the Company's insurer in connection with any present and
future actual or threatened litigation or administrative proceeding involving
the Company that relates to events, occurrences or conduct occurring (or claimed
to have occurred) during the period of Executive's employment by the Company.
This cooperation by Executive shall include, but not be limited to:

                  (i) making himself reasonably available for interviews and
         discussions with the Company's counsel as well as for depositions and
         trial testimony;

                  (ii) if depositions or trial testimony are to occur, making
         himself reasonably available and cooperating in the preparation
         therefor as and to the extent that the Company or the Company's counsel
         reasonably requests;

                  (iii) refraining from impeding in any way the Company's
         prosecution or defense of such litigation or administrative proceeding;
         and

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                  (iv) cooperating fully in the development and presentation of
         the Company's prosecution or defense of such litigation or
         administrative proceeding.

                  b. Executive shall be reimbursed by the Company for reasonable
travel, lodging, telephone and similar expenses incurred in connection with such
cooperation, which the Company shall reasonably endeavor to schedule at times
not conflicting with the reasonable requirements of any employer of Executive,
or with the requirements of any third party with whom Executive has a business
relationship permitted hereunder that provides remuneration to Executive.
Executive shall not unreasonably withhold his availability for such cooperation.

         8. SUCCESSORS AND BINDING AGREEMENT.

                  a. This Agreement shall be binding upon and inure to the
benefit of the Company and any successor of or to the Company, including,
without limitation, any persons acquiring, directly or indirectly, all or
substantially all of the business and/or assets of the Company whether by
purchase, merger, consolidation, reorganization, or otherwise (and such
successor shall thereafter be deemed included in the definition of "the Company"
for purposes of this Agreement), but shall not otherwise be assignable or
delegable by the Company.

                  b. This Agreement shall inure to the benefit of and be
enforceable by Executive's personal or legal representatives, executors,
administrators, successors, heirs, distributees, and/or legatees.

                  c. This Agreement is personal in nature and none of the
parties hereto shall, without the consent of the other parties, assign, transfer
or delegate this Agreement or any rights or obligations hereunder except as
expressly provided in Subparagraphs (a) and (b) of this Paragraph 8.

                  d. This Agreement is intended to be for the exclusive benefit
of the parties hereto, and except as provided in Subparagraphs (a) and (b) of
this Paragraph 8, no third party shall have any rights hereunder.

         9. NON-DISCLOSURE; STATEMENTS TO THIRD PARTIES.

                  a. Except as otherwise provided in Paragraph 5, all provisions
of this Agreement and the circumstances giving rise hereto are and shall remain
confidential and shall not be disclosed to any person not a party hereto (other
than (i) Executive's spouse, if any and (ii) each party's attorney, financial
advisor and/or tax advisor to the extent necessary for such advisor to render
appropriate legal, financial and tax advice), except as necessary to carry out
the provisions of this Agreement, and except as may be required by law.
Notwithstanding the foregoing, this Agreement may be disclosed and described as
well as filed with or provided to the Securities and Exchange Commission or any
other governmental instrumentality or agency, including the Internal Revenue
Service, if the Company deems such filing or provision to be necessary.

                  b. Because the purpose of this Agreement is to settle amicably
any and all potential disputes or claims among the parties, neither Executive
nor the Company shall, directly or indirectly, make or cause to be made any
statements to any third parties criticizing or

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disparaging the other or commenting on the character or business reputation of
the other. Executive further hereby agrees not: (i) to comment to others
concerning the status, plans or prospects of the business of the Company, or
(ii) to engage in any act or omission that would be detrimental, financially or
otherwise, to the Company, or that would subject the Company to public
disrespect, scandal, or ridicule. For purposes of this Subparagraph 9.b., the
"Company" shall mean the Company and its directors, officers, predecessors,
parents, subsidiaries, divisions, and related or affiliated companies, officers,
directors, stockholders, members, employees, heirs, successors, assigns,
representatives, agents, accountants and counsel.

         10. NOTICES. For all purposes of this Agreement, all communications
provided for herein shall be in writing and shall be deemed to have been duly
given when delivered, addressed to the Company (to the attention of Karen A.
Smith, Vice President Human Resources) at its principal executive offices and to
Executive at his principal residence, 7544 South Mannheim Court, Hudson, Ohio
44236, or to such other address as any party may have furnished to the other in
writing and in accordance herewith. Notices of change of address shall be
effective only upon receipt.

         11. MISCELLANEOUS. No provision of this Agreement may be modified,
waived or discharged unless such modification, waiver or discharge is agreed to
in writing signed by Executive and the Company. No waiver by either party hereto
at any time of any breach by the other party hereto or compliance with any
condition or provision of this Agreement to be performed by such other party
shall be deemed a waiver of similar or dissimilar provisions or conditions at
the same or at any prior or subsequent time. No agreements or representations,
oral or otherwise, expressed or implied with respect to the subject matter
hereof have been made by any of the parties that are not set forth expressly in
this Agreement and every one of them (if, in fact, there have been any) is
hereby terminated without liability or any other legal effect whatsoever.

         12. ENTIRE AGREEMENT. This Agreement embodies the complete agreement
and understanding between the parties with respect to the subject matter hereof
and effective as of its date supersedes and preempts any prior understandings,
agreements or representations by or between the parties, written or oral
(including without limitation, the Executive Severance Pay Plan, any employment
agreement between Executive and the Company, whether written or oral) and the
Officer Cash and Stock Bonus Plan), which may have related to the subject matter
hereof in any way.

         13. GOVERNING LAW. Any dispute, controversy, or claim of whatever
nature arising out of or relating to this Agreement or breach thereof shall be
governed by and under the laws of the State of Ohio. The parties agree that any
and all disputes, controversies, or claims of whatever nature arising out of or
relating to this agreement or breach thereof shall be resolved by a court of
general jurisdiction in the State of Ohio, and the parties hereby consent to the
exclusive jurisdiction of such court in any action or proceeding arising under
or brought to challenge, enforce, or interpret any of the terms of this
Agreement.

         14. VALIDITY. The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall nevertheless remain in full force and
effect.

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

         16. CAPTIONS AND PARAGRAPH HEADINGS. Captions and Paragraph headings
used herein are for convenience and are not part of this Agreement and shall not
be used in construing it.

         17. FURTHER ASSURANCES. Each party hereto shall execute such additional
documents, and do such additional things, as may reasonably be requested by the
other party to effectuate the purposes and provisions of this Agreement.

                         [SIGNATURES ON FOLLOWING PAGE]

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         IN WITNESS WHEREOF, the parties have executed and delivered this
Agreement as of the date set forth below.

                                    INTERNATIONAL STEEL GROUP INC.

                                    By: /s/ KAREN A. SMITH
                                        ----------------------------------------
                                    Name: KAREN A. SMITH
                                    Title: VICE PRESIDENT HUMAN RESOURCES

                                    Date: 4-1-05
                                          --------------------------------------

                                    /s/ JEROME V. NELSON
                                    --------------------------------------------
                                    JEROME V. NELSON

                                    Date: 4/6/05
                                          --------------------------------------

                                       10Exhibit 10.14

                    HQ SUSTAINABLE MARITIME INDUSTRIES, INC.
                           14 Wall Street, 20th Floor
                               New York, NY 10005

                                 April 11, 2005

Norbert Sporns
225 Rector Park
Suite 23G
New York, NY 10280

Re: Amendment No. 1 to Employment Agreement

Dear Mr. Sporns:

         This  letter  is in  reference  to that  certain  Employment  Agreement
effective as of April 1, 2004 (the "Agreement"), between HQ Sustainable Maritime
Industries,  Inc., a Delaware corporation (the "Company") and you, a resident of
the State of New York.  Capitalized terms used herein,  unless otherwise defined
or unless the context otherwise  indicates,  shall have the same meanings as set
forth in the Agreement. The Agreement is hereby amended as follows:

1.       Section 5.

         Section 5 is hereby amended to read in its entirety as follows:

         "Section 5. Location.  The locus of the Executive's employment with the
Company shall be the Company's office located at 14 Wall Street, Suite 2000, New
York, New York 10005."

2.       Section 10(b)(v).

         Section 10(b)(v) is hereby amended to read in its entirety as follows:

         "(v) The Company  shall  purchase a directors  and  officers  liability
insurance policy or otherwise obtain directors and officers liability  insurance
coverage,  in the  amount  of Five  Million  Dollars  (US$5,000,000.00)  for the
Executive  as soon as  practicable,  but in no event  later  than the end of the
Company's first fiscal year following the Effective Date."

3.       Section 11.

Section 11 is hereby amended to read in its entirety as follows:

<PAGE>

"a. Death. In the event that,  during the term of this Agreement,  the Executive
dies,  this  Agreement  and the  Executive's  employment  with the Company shall
automatically  terminate  and the Company shall have no further  obligations  or
liability  to the  Executive  or his heirs,  administrators  or  executors  with
respect  to  compensation  and  benefits  accruing  thereafter,  except  for the
obligation to pay the Executive's heirs,  administrators or executors any earned
but unpaid base salary,  unpaid pro rata annual bonus and unused  vacation  days
accrued through the date of death.  The Company shall deduct,  from all payments
made hereunder,  all applicable taxes,  including income tax, FICA and FUTA, and
other appropriate deductions.

b.  Disability.  In the  event  that,  during  the term of this  Agreement,  the
Executive  shall be prevented from  performing  his duties and  responsibilities
hereunder to the full extent required by the Company by reason of  "Disability,"
as defined hereinbelow,  this Agreement and the Executive's  employment with the
Company  shall  automatically  terminate  and the Company  shall have no further
obligations  or  liability  to the  Executive  or his heirs,  administrators  or
executors with respect to compensation and benefits accruing thereafter,  except
for the obligation to pay the Executive's heirs, administrators or executors any
earned but unpaid base salary,  unpaid pro rata annual bonus and unused vacation
days accrued through the date of Disability.  The Company shall deduct, from all
payments made hereunder,  all applicable  taxes,  including income tax, FICA and
FUTA, and other appropriate  deductions through the last date of the Executive's
employment with the Company. For purposes of this Agreement,  "Disability" shall
mean a physical  or mental  disability  that  prevents  the  performance  by the
Executive,  with  or  without  reasonable  accommodation,   of  his  duties  and
responsibilities  hereunder  for a  continuous  period  of not  less  than  four
consecutive  months,  or not less than an  aggregate  of four months  during any
one-year period.

c.       "Cause."

         (i) At any time  during the term of this  Agreement,  the  Company  may
terminate this Agreement and the Executive's  employment  hereunder for "Cause."
For  purposes  of this  Agreement,  "Cause"  shall  mean:  (a) the  willful  and
continued  failure  of the  Executive  to perform  substantially  his duties and
responsibilities  for the Company (other than any such failure  resulting from a
Disability)  after a written demand for substantial  performance is delivered to
the Executive by the Company, which specifically  identifies the manner in which
the Company  believes  that the Executive  has not  substantially  performed his
duties and responsibilities, which willful and continued failure is not cured by
the Executive within thirty (30) days of his receipt of said written demand; (b)
the conviction  of, or plea of guilty or nolo contendre to, a felony,  after the
exhaustion  of  all  available  appeals;  or (c)  the  willful  engaging  by the
Executive in gross misconduct which is materially and demonstratively  injurious
to the Company, after a written demand to cease or cure such gross misconduct is
delivered to the Executive by the Company,  which  specifically  identifies  the
manner in which the Company  believes that the  Executive  has  committed  gross
misconduct  that is  materially  and  demonstratively  injurious to the Company,
which gross  misconduct  does not cease or is not cured by the Executive  within
thirty (30) days of his receipt of said written demand.

         (ii)  Termination  of the Executive for "Cause"  pursuant to paragraphs
11(c)(i)(a)  and (c) shall be made by delivery to the Executive of a copy of the
written  demand  referred to in paragraphs  11(c)(i)(a)  and (c), or pursuant to
paragraphs  11(c)(i)(b) by a written  notice,  either of which shall specify the

<PAGE>

basis of such  termination and the  particulars  thereof and finding that in the
reasonable  judgment  of  the  Company,  the  conduct  set  forth  in  paragraph
11(c)(i)(a),  11(c)(i)(b) or 11(c)(i)(c),  as applicable,  has occurred and that
such occurrence warrants the Executive's termination.

         (iii) Upon termination of this Agreement for "Cause," the Company shall
have  no  further  obligations  or  liability  to the  Executive  or his  heirs,
administrators   or  executors  with  respect  to   compensation   and  benefits
thereafter, except for the obligation to pay the Executive any earned but unpaid
base  salary,  unpaid pro rata annual  bonus and unused  vacation  days  accrued
through the  Executive's  last day of employment  with the Company.  The Company
shall deduct, from all payments made hereunder,  all applicable taxes, including
income tax, FICA and FUTA, and other appropriate deductions.

d.       "Good Reason."

         (i) At any time  during  the  term of this  Agreement,  subject  to the
conditions  set forth in paragraph  11(d)(iii)  hereinbelow,  the  Executive may
terminate this  Agreement and the  Executive's  employment  with the Company for
"Good  Reason." For purposes of this  Agreement,  "Good  Reason"  shall mean the
occurrence, without the Executive's consent, of any of the following events: (a)
the assignment to the Executive of duties that are significantly different from,
and that result in a  substantial  diminution  of, the duties that he assumed on
the  Inception  Date;  (b) the  assignment  to the  Executive of a title that is
different  from  and   subordinate  to  the  title   specified  in  paragraph  2
hereinabove,  or (c) a Change of  Control  (as  defined in  paragraph  11(d)(ii)
hereinbelow).

         (ii) For  purposes of this  Agreement,  "Change of  Control"  means the
Company's Board votes to approve: (a) any consolidation or merger of the Company
pursuant  to  which  fifty  percent  (50%)  or  less of the  outstanding  voting
securities of the surviving or resulting  company are not owned  collectively by
the common share and warrant holders of Sino-Sult  Canada  (S.S.C.)  Limited and
Red Coral Group  Limited,  Inc. as of  September 1, 2004 (the  "Current  Control
Group"); (b) any sale, lease,  exchange or other transfer (in one transaction or
a series of related transactions) of all, or substantially all, of the assets of
the  Company  other than any sale,  lease,  exchange  or other  transfer  to any
company  where the  Company  owns,  directly or  indirectly,  100 percent of the
outstanding  voting securities of such company after any such transfer;  (c) any
person or persons (as such term is used in Section  13(d) of the Exchange Act of
1934, as amended), other than the Current Control Group, shall acquire or become
the  beneficial  owner (within the meaning of Rule 13d-3 under the Exchange Act)
whether directly,  indirectly,  beneficially or of record, of 50 percent or more
of outstanding  voting  securities of the Company;  or (d)  commencement  by any
entity,  person,  or group  (including  any  affiliate  thereof,  other than the
Company) of a tender  offer or exchange  offer where the offeree  acquires  more
than 50 percent of the then outstanding voting securities of the Company.

         (iii) The Executive  shall not be entitled to terminate his  employment
with the Company and this  Agreement for "Good  Reason"  unless and until (a) he
shall have  received  written  notice from the Company of the  occurrence  of an
event  constituting  "Good Reason" as that term is defined in paragraph 11(d)(i)
and (ii)  hereinabove,  which  written  notice the Company  shall deliver to the
Executive within five (5) business days of the occurrence of any such event; (b)
he shall  have  delivered  written  notice to the  Company of his  intention  to

<PAGE>

terminate this  Agreement or his employment  with the Company for "Good Reason,"
which notice specifies in reasonable detail the circumstances claimed to provide
the basis for such  termination for "Good Reason," within 30 days of his receipt
from the Company of the written  notice  described  in  paragraph  11(d)(iii)(a)
hereinabove,  the  Executive's  having  obtained  actual  knowledge  of a  "Good
Reason;"  and (c) the  Company  shall  not  have  eliminated  the  circumstances
constituting  "Good Reason"  within 30 days of its receipt from the Executive of
the written notice described in paragraph 11(d)(iii)(b) hereinabove."

         (iv) In the event that the Executive  terminates this Agreement and his
employment  with the Company for "Good Reason," the Company shall pay or provide
to  the  Executive  (or,   following  his  death,  to  the  Executive's   heirs,
administrators or executors):  (a) any earned but unpaid base salary, unpaid pro
rata annual bonus and unused vacation days accrued through the Executive's  last
day of  employment  with the  Company;  (b) the  Executive's  full  base  salary
(including  guaranteed annual ten percent (10%) increases) through the Scheduled
Termination Date; (c) the Executive's guaranteed annual bonuses in the amount of
US$50,000.00  that he would have been awarded through the Scheduled  Termination
Date;  (d) the value of  vacation  days that the  Executive  would have  accrued
through the Scheduled Termination Date; (e) continued coverage, at the Company's
expense,  under all  Benefits  Plans in which the  Executive  was a  participant
immediately  prior to his last date of employment  with the Company,  or, in the
event  that any such  Benefit  Plans do not  permit  coverage  of the  Executive
following his last date of employment with the Company, under benefit plans that
provide  no less  coverage  than  such  Benefit  Plans,  through  the  Scheduled
Termination Date ("Continued Benefits"); and (f) severance in an amount equal to
the sum of the Executive's annual base salary in effect immediately prior to his
last date of employment  with the Company.  The Company  shall deduct,  from all
payments made hereunder,  all applicable  taxes,  including income tax, FICA and
FUTA, and other appropriate deductions.

         (v) The  Executive,  at his  option,  shall be  entitled to receive the
amounts  described in paragraphs  11(d)(iv)(b) and (c) hereinabove in a lump sum
within forty-five (45) days of his last date of employment with the Company.  To
exercise such option,  the Executive shall deliver to the Company written notice
therefore  within ten (10) business days after his last date of employment  with
the Company.  If the Executive  fails to deliver such written  notice within ten
(10)  business  days after his last date of  employment  with the  Company,  the
amounts  described in paragraphs  11(d)(iv)(b) and (c) hereinabove shall be paid
to the  Executive in the same manner as they would have been paid, in accordance
with the  provisions  of  paragraphs  6(a) and (b), had the  Executive  remained
employed by the Company. The amount described in paragraph 11(d)(iv)(f) shall be
paid to the Executive  within  forty-five (45) days of the Executive's last date
of employment with the Company.

         (vi) The Executive  shall have no duty to mitigate his damages,  except
that  Continued  Benefits  shall be  canceled  or  reduced  to the extent of any
comparable  benefit coverage offered to the Executive during the period prior to
the  Scheduled  Termination  Date by a  subsequent  employer or other  person or
entity for which the Executive performs  services,  including but not limited to
consulting services.

e.       Without "Good Reason" Or "Cause"

<PAGE>

         (i) By The  Executive.  At any time during the term of this  Agreement,
the Executive  shall be entitled to terminate this Agreement and the Executive's
employment  with the Company  without "Good  Reason," as that term is defined in
paragraph 11(d)(i) and (ii) hereinabove, by providing prior written notice of at
least thirty (30) days to the Company. Upon termination by the Executive of this
Agreement and the Executive's employment with the Company without "Good Reason,"
the Company shall have no further  obligations  or liability to the Executive or
his heirs, administrators or executors with respect to compensation and benefits
thereafter, except for the obligation to pay the Executive any earned but unpaid
base salary,  pro rata annual bonus and unused vacation days accrued through the
Executive's  last day of employment with the Company.  The Company shall deduct,
from all payments made hereunder,  all applicable  taxes,  including income tax,
FICA and FUTA, and other appropriate deductions."

         (ii) By The Company. At any time during the term of this Agreement, the
Company  shall be entitled  to  terminate  this  Agreement  and the  Executive's
employment  with  the  Company  without  "Cause,"  as that  term is  defined  in
paragraph  11(c)(i)  hereinabove,  by providing prior written notice of at least
ninety  (90) days to the  Executive.  Upon  termination  by the  Company of this
Agreement and the Executive's  employment  with the Company  without Cause,  the
Company shall pay or provide to the Executive (or,  following his death,  to the
Executive's heirs,  administrators or executors): (a) any earned but unpaid base
salary,  unpaid pro rata annual bonus and unused  vacation days accrued  through
the  Executive's  last day of employment  with the Company;  (b) the Executive's
full base  salary  (including  guaranteed  annual ten percent  (10%)  increases)
through the Scheduled  Termination  Date; (c) the Executive's  guaranteed annual
bonuses in the amount of  US$50,000.00  that he would have been awarded  through
the  Scheduled  Termination  Date;  (d) the  value  of  vacation  days  that the
Executive  would have  accrued  through  the  Scheduled  Termination  Date;  (e)
continued coverage, at the Company's expense,  under all Benefits Plans in which
the Executive was a participant immediately prior to his last date of employment
with the  Company,  or, in the event that any such  Benefit  Plans do not permit
coverage  of the  Executive  following  his  last  date of  employment  with the
Company,  under  benefit  plans that provide no less  coverage than such Benefit
Plans, through the Scheduled  Termination Date ("Continued  Benefits");  and (f)
severance in an amount equal to the sum of the Executive's annual base salary in
effect  immediately  prior to his last date of employment with the Company.  The
Company shall deduct,  from all payments made hereunder,  all applicable  taxes,
including income tax, FICA and FUTA, and other appropriate deductions.

         (iii) The  Executive,  at his option,  shall be entitled to receive the
amounts  described in paragraphs  11(e)(ii)(b) and (c) hereinabove in a lump sum
within forty-five (45) days of his last date of employment with the Company.  To
exercise such option,  the Executive shall deliver to the Company written notice
therefore  within ten (10) business days after his last date of employment  with
the Company.  If the Executive  fails to deliver such written  notice within ten
(10)  business  days after his last date of  employment  with the  Company,  the
amounts  described in paragraphs  11(e)(ii)(b) and (c) hereinabove shall be paid
to the  Executive in the same manner as they would have been paid, in accordance
with the  provisions  of  paragraphs  6(a) and (b), had the  Executive  remained
employed by the Company. The amount described in paragraph 11(e)(ii)(f) shall be
paid to the Executive  within  forty-five (45) days of the Executive's last date
of employment with the Company."

<PAGE>

         Except for the aforementioned amendments to Sections 5, 10(b)(v) and 11
of the Agreement  set forth in this letter,  no other terms or provisions of the
Agreement are being or have been amended,  and all other terms and provisions of
the Agreement shall remain in full force and effect.

                                                    Very truly yours,

                                                    HQ SUSTAINABLE MARITIME
                                                    INDUSTRIES, INC.

                                                     /s/ Norbert Sporns
                                                    ----------------------------
                                                    By:  Norbert Sporns
                                                    Its: Chief Executive Officer

Agreed To And Accepted By:

NORBERT SPORNS

 /s/ Norbert Sporns
------------------------------

Date:  April 11, 2005

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