Document:

Exhibit 10.1

VITA FOOD PRODUCTS, INC.

SECURITIES PURCHASE AGREEMENT

THIS SECURITIES PURCHASE AGREEMENT (this “Agreement”),
is made and entered into as of the 14th day of May 2007, by and between VITA
FOOD PRODUCTS, INC., a Nevada corporation (the “Company”),
located at 2222 West Lake Street, Chicago, Illinois, and HOWARD BEDFORD (the “Purchaser”).

ARTICLE 1

AUTHORIZATION AND SALE

1.1           Authorization.   The
Company has authorized the sale and issuance to the Purchaser of:

(a)           2,400,000
shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”). The shares of Common Stock to be issued
pursuant to the terms hereof are referred to as the “Common
Shares”;

(b)           A
two year warrant, in the form attached hereto as Exhibit A (the “A Warrant”) to purchase 500,000 shares of Common Stock at
an exercise price of $1.25 per share (all subject to adjustment as set forth in
the A Warrant);

(c)           A three
year warrant in the form attached hereto as Exhibit B (the “B Warrant”) to purchase 500,000 shares of Common Stock at an
exercise price of $1.50 per share (all subject to adjustment as set forth in
the B Warrant);

(d)           A
four year Warrant in the form attached hereto as Exhibit C (the “C Warrant”) to purchase 500,000 shares of Common Stock at an
exercise price of $1.50 per share (all subject to adjustment as set forth in
the Warrant); and

(e)           A
five year Warrant in the form attached hereto as Exhibit D (the “D Warrant”) to purchase 500,000 shares of Common Stock at an
exercise price of $1.75 per share (all subject to adjustment as set forth in
the D Warrant).

The A Warrant, B Warrant, C Warrant and D Warrant are sometimes
referred to individually as a “Warrant” or
collectively as the “Warrants”. Any
shares of Common Stock issued upon exercise of any of the Warrants are referred
to herein as the “Warrant Shares”.
The Common Shares and the Warrants are collectively referred to herein as the “Securities”.

1.2           Agreement to
Purchase and Sell the Securities.   The Company agrees to issue and
sell to the Purchaser, and the Purchaser agrees to purchase from the Company
the Securities for an amount equal to Three Million Dollars ($3,000,000) (the “Purchase Price”), on the terms and
conditions set forth herein.

1.3           Closing and
Delivery.   The purchase and sale of the Securities shall occur as
follows:

(a)           Purchaser
has paid to the Company the sum of One Million Dollars ($1,000,000). Upon
execution of this Agreement, the Company will issue to Purchaser 800,000 of the
Common Shares and one-third (1/3) of each of the Warrants.

(b)           Upon
satisfaction or waiver of the last of the closing conditions described in
Section 4.1 and 4.2 below, Purchaser will deliver to the Company by wire
transfer the sum of Two Million Dollars ($2,000,000), and the Company will
issue to Purchaser 1,600,000 of the Common Shares and the remaining two-thirds
(2/3) of each of the Warrants (the “Second Closing”).

1.4           Nature of
Offering.   The sale of the Common Shares, the Warrants and the Warrant
Shares issuable thereunder is being made in reliance upon the provisions of
Section 4(2) (“Section 4(2)”) of
the United States Securities Act of 1933, as amended (the “Securities Act”), and Regulation D (“Regulation D”) and the other rules and
regulations promulgated under the Securities Act and/or upon such other
exemption from the registration requirements of the Securities Act as may be
available with respect to the investment to be made hereunder.

ARTICLE 2

REPRESENTATIONS AND WARRANTIES

2.1           By the Company.   The
Company hereby represents and warrants to the Purchaser as follows:

(a)           Status.   The
Company is a corporation duly organized, validly existing and in good standing
under the laws of the State of Nevada, and has the corporate power to perform
its obligations under this Agreement.

(b)           Authorization.   The
execution and delivery of this Agreement and the performance by the Company of
its obligations hereunder are within the corporate powers of the Company and
have been duly authorized by all necessary corporate action properly taken. The
officers executing this Agreement are duly authorized to act on behalf of the
Company.

(c)           Validity
and Binding Effect.   This Agreement is the legal, valid and binding
obligation of the Company, enforceable in accordance with its terms, subject to
limitations imposed by bankruptcy, insolvency, moratorium or other similar laws
affecting the rights of creditors generally or the application of general
equitable principles.

(d)           Valid
Issuances.   The Common Shares and the Warrant Shares, when issued,
sold and delivered in accordance with the terms of this Agreement, shall be
duly and validly issued, fully-paid and non-assessable shares of Common 

 2
 

Stock, free of all liens, claims, encumbrances, preemptive rights,
rights of first refusal and restrictions on transfer, except as imposed by
applicable securities laws.

(e)           No
Conflicts.   Consummation of the transactions contemplated hereby and
the performance of the obligations of the Company under and by virtue of this
Agreement, do not conflict with and will not result in any breach of, or
constitute a default under, any mortgage, lease, bank loan or credit agreement,
corporate charter or bylaws, or any other instrument or agreement to which the
Company is a party or by which the Company or its respective properties may be
bound or affected and will not violate or be in conflict with any order,
judgment or injunction to which the Company is bound.

(f)            Rights
Agreement.   The Company has amended its Rights Agreement such that
Purchaser will not be an “Acquiring Person”
as defined in the Rights Agreement, provided Purchaser and his Affiliates and
Associates are the Beneficial Owners (as defined in the Rights Agreement) of less
than fifty percent (50%) of the Common Stock.

2.2           By the Purchaser.   The
Purchaser hereby represents and warrants to the Company as follows:

(a)           Status.   The
Purchaser has full power and authority to execute and deliver this Agreement
and all other related agreements or certificates and to carry out the
provisions hereof and thereof. The execution and delivery of this Agreement
will not violate or be in conflict with any order, judgment, injunction, or
agreement to which the Purchaser is a party or by which it is bound;

(b)           Validity and
Binding Effect. This Agreement is the legal, valid and binding obligation
of the Purchaser, enforceable in accordance with its terms, subject to
limitations imposed by bankruptcy, insolvency, moratorium or other similar laws
affecting the rights of creditors generally or the application of general
equitable principles.

(c)           Investment
Representations.

(i)            The Purchaser has such knowledge and
experience in financial and business matters, including investments of the type
represented by this Agreement, as to be capable of evaluating the merits of
investment in the Company and can bear the economic risk of an investment in
the Securities;

(ii)           The Purchaser is an “accredited investor” as such term is
defined in Rule 501 of Regulation D under the Securities Act; and

(iii)          The Purchaser is acquiring the
Securities for investment purposes only, for its own account and not with a
view to, or for resale in 

 3
 

connection with, the
distribution or other disposition thereof in contravention of the Securities
Act or any state securities law. The Purchaser has no agreement or arrangement,
formal or informal, with any person to sell or transfer all or any part of the
Warrants, the Common Shares and the Warrants Shares, and the Purchaser has no
plans to enter into any such agreement or arrangement;

(d)           Transfer
Restrictions.   The Purchaser understands that the Securities are
characterized as restricted securities under the federal securities laws in as
much as they are being acquired from the Company in a transaction not involving
a public offering and that under such laws and applicable regulations, such
securities may be resold without registration under the Securities Act only in
certain limited circumstances. In this regard, Purchaser represents that
Purchaser is familiar with Rule 144 under the Securities Act as presently in
effect and understands the resale limitations imposed thereby and by the
Securities Act. In addition, the Purchaser understands the Purchaser must bear
the substantial economic risks of the investment in the Securities indefinitely
because none of the Securities may be sold, hypothecated or otherwise disposed
of unless subsequently registered under the Securities Act and applicable state
securities laws or an exemption from such registration is available. Legends
shall be placed on the Securities to the effect that they have not been
registered under the Securities Act or applicable state securities laws and
appropriate notations thereof will be made in the Company’s stock books. Stop
transfer instructions will be placed with the transfer agent of the Securities.
Purchaser understands that Purchaser will not have registration rights with
respect to the Common Shares, Warrants or Warrant Shares.

(e)           Disclosure;
Access to Information.   Purchaser has reviewed and understands the
Company’s “SEC Documents.” For
purposes hereof, the term “SEC Documents”
shall mean the Company’s annual report on Form 10-K for the year ended December
31, 2005, the Company’s quarterly reports on Form 10-Q for the quarters ended
September 30, 2006, June 30, 2006, and March 31, 2006, and all Company current
reports on Form 8-K filed with the Securities and Exchange Commission (the “Commission”) since December 31, 2005.

(f)            Other.

(i)            Purchaser acknowledges that neither
the Commission nor any state securities commission has approved the Securities;

(ii)           The Purchaser has taken no action
which would give rise to any claim by any person for brokerage commissions,
finders’ fees or the like relating to this Agreement or the transactions
contemplated hereby;

(iii)          Any information which Purchaser has
heretofore furnished or furnishes herewith to the Company is complete and
accurate and may be relied upon by the Company in determining the availability
of an 

 4
 

exemption from registration
under federal and state securities laws in connection with the offering of
securities. The Purchaser further represents and warrants that it will notify
and supply corrective information to the Company immediately upon the
occurrence of any change therein occurring prior to the Company’s issuance of
the Securities.

ARTICLE 3

COMPANY COVENANTS AND AGREEMENTS

3.1           Listing of Common
Stock.   The Company agrees to maintain its listing of Common Shares
and the Warrant Shares on the American Stock Exchange, or such other nationally
recognized exchange.

3.2           Approvals/
Filings

(a)           Information
Statement.   Upon execution of this Agreement, the Company agrees to
prepare and file with the Commission a 14C Information Statement (the “Information Statement”) describing the
transaction contemplated hereby.

(b)           Amex Approval.   Upon
execution of this Agreement, the Company will seek approval of the transaction
by the American Stock Exchange (“Amex
Approval”).

(c)           Shareholder
Approval.   Upon execution of the Agreement, the Company will seek
shareholder approval of the transaction contemplated hereby (“Shareholder Approval”).

ARTICLE 4

CONDITIONS TO CLOSING

4.1           Conditions to the
Obligations of the Company.   The obligations of the Company to sell
and issue the Common Shares and the Warrant pursuant to the terms of this
Agreement at the Second Closing and the other obligations of the Company under
this Agreement are subject to the satisfaction as of the Second Closing of the
following conditions, any of which may be waived in writing in whole or in part
by Company:

(a)           Representations
and Warranties.   The representations and warranties of the Purchaser
contained in this Agreement shall be true and correct as of the date hereof and
as of the Second Closing with the same force and effect as though such
representations and warranties had been made at and as of such date (i.e., with
respect to a representation that a state of facts exists on or as of the date
hereof, it is a condition that such state of facts exists on or as of the
Second Closing, and with respect to a representation that a state of facts has
or has not changed between a date prior to the date hereof and the date hereof,
it is a condition that such state of facts has or has not changed between such
prior date 

 5
 

and the Second
Closing), except as affected by transactions contemplated hereby and except
that any such representation or warranty made as of a specified date (other
than the date of this Agreement) shall only need to have been true on and as of
such date.

(b)           Approvals.   The
Company has received the Amex Approval and Shareholder Approval.

(c)           Information
Statement.   The expiration of twenty (20) days from the date that the
Information Statement is given to Shareholders of the Company.

(d)           Fairness Opinion.   The
Board of Directors of the Company has received an opinion (“Fairness Opinion”) from an investment
banker or other acceptable party which, in the sole determination of the Board
of Directors of the Company, supports the fairness of the transaction to the
Company.

4.2           Conditions to the
Obligations of Purchaser.   The obligations of the Purchaser to
purchase the Common Shares and Warrant pursuant to the terms of this Agreement
at the Second Closing and the other obligations of the Purchaser under this
Agreement are subject to the satisfaction as of the Second Closing of the
following conditions, any of which may be waived in writing in whole or in part
by Purchaser:

(a)           Representations
and Warranties.   The representations and warranties of the Company
contained in this Agreement shall be true and correct as of the date hereof and
as of the Second Closing with the same force and effect as though such
representations and warranties had been made at and as of such date (i.e., with
respect to a representation that a state of facts exists on or as of the date
hereof, it is a condition that such state of facts exists on or as of the
Second Closing, and with respect to a representation that a state of facts has
or has not changed between a date prior to the date hereof and the date hereof,
it is a condition that such state of facts has or has not changed between such
prior date and the Second Closing), except as affected by transactions
contemplated hereby and except that any such representation or warranty made as
of a specified date (other than the date of this Agreement) shall only need to
have been true on and as of such date.

(b)           Approvals.   The
Company has received the Amex Approval and Shareholder Approval.

(c)           Information
Statement.   The expiration of twenty (20) days from the date the
Information Statement is given to Shareholders of the Company.

 6
 

ARTICLE 5

MISCELLANEOUS

5.1           Successors and
Assigns Included in Parties.   Whenever in this Agreement one of the
parties hereto is named or referred to, the heirs, legal representatives,
successors, successors-in-title and assigns of such parties shall be included,
and all covenants and agreements contained in this Agreement by or on behalf of
the Company or by or on behalf of the Purchaser shall bind and inure to the
benefit of Purchaser’s heirs, legal representatives, successors-in-title and
assigns, whether so expressed or not.

5.2           Severability.   Wherever
possible each provision of this Agreement shall be interpreted in such manner
as to be effective and valid under applicable law, but if any provision of this
Agreement shall be prohibited by or invalid under such law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of
this Agreement and shall be interpreted so as to be effective and valid.

5.3           Article and
Section Headings, Defined Terms.   Numbered and titled article and
section headings and defined terms are for convenience only and shall not be
construed as amplifying or limiting any of the provisions of this Agreement.

5.4           Notices.   Any
and all notices, elections or demands permitted or required to be made under
this Agreement shall be in writing, signed by the party giving such notice,
election or demand and shall be delivered personally, telecopied, or sent by
certified mail or overnight via nationally recognized courier service (such as
Federal Express), to the other party at the address set forth in the
introductory paragraph to this Agreement, on the signature page hereof or at
such other address as may be supplied in writing and of which receipt has been
acknowledged in writing. The date of personal delivery or telecopy or two (2)
business days after the date of mailing (or the next business day after
delivery to such courier service), as the case may be, shall be the date of
such notice, election or demand.

5.5           Entire Agreement.   This
Agreement and the other written agreements between the Company and the
Purchaser, represent the entire agreement between the parties concerning the
subject matter hereof, and all oral discussions and prior agreements are merged
herein; provided, if there is a conflict between this Agreement and any
other document executed contemporaneously herewith with respect to the
obligations described herein, the provision of this Agreement shall control.

5.6           Governing Law;
Jurisdiction.   This Agreement shall be governed by and construed in
accordance with the laws of the State of Nevada relating to contracts entered
into and to be performed wholly within such State. The Purchaser hereby
irrevocably submits to the jurisdiction of any Illinois state court or United
States Federal court sitting in Cook County, Illinois over any action or
proceeding arising out of or relating to this Agreement or any agreement
contemplated hereby, and the Purchaser hereby irrevocably agrees that all
claims in respect of such action or proceeding may be heard and determined in
such Illinois state or Federal court. The Purchaser further waives any 

 7
 

objection
to venue in such State and any objection to an action or proceeding in such
State on the basis of a non-convenient forum. The Purchaser further agrees that
any action or proceeding brought against the Company shall be brought only in
Illinois state or United States Federal courts sitting in Cook County,
Illinois. THE PURCHASER AGREES TO WAIVE ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM
OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS SUBSCRIPTION AGREEMENT OR
ANY DOCUMENT OR AGREEMENT CONTEMPLATED HEREBY.

5.7           Amendment.   Neither
this Agreement nor any term hereof may be amended, waived, discharged or
terminated other than by a written instrument signed by the party against whom
enforcement of any such amendment, waiver, discharge or termination is sought.

5.8           Legal Fees.   The
Company agrees to reimburse Purchaser for reasonable attorney fees incurred by
Purchaser in connection with this transaction.

5.9           Counterparts.   This
Agreement may be executed in any number of counterparts and by different
parties to this Agreement in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together
shall constitute one and the same Agreement.

 8
 

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement, or have caused this Agreement to be executed by their duly
authorized officers, as of the day and year first above written.

	
  

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  VITA FOOD PRODUCTS, INC.

  
	
   

  	
  a Nevada corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Clifford Bolen

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  
	
   

  	
  PURCHASER:

  
	
   

  	
   

  
	
   

  	
  Howard Bedford

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Signature)

  
	
   

  	
   

  
	
   

  	
  Address

  
	
   

  	
   

  
	
   

  	
  Social Security Number

  

 

 9

NEITHER THIS SECURITY NOR
THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED
WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY
STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE
OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A
TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL
OPINION OF COUNSEL TO THE TRANSFEROR REASONABLY ACCEPTABLE TO THE COMPANY TO
SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY.

COMMON STOCK PURCHASE WARRANT

To Purchase 500,000 Shares of Common Stock of

Vita Food Products, Inc.

1.             Warrant Shares.   THIS
COMMON STOCK PURCHASE WARRANT (the “Warrant”) CERTIFIES that, for value
received, Howard Bedford (the “Holder”), is entitled, upon the terms and
subject to the limitations on exercise and the conditions hereinafter set
forth, at any time on or after                   ,
2007 (the “Initial Exercise Date”) and on or prior to the second
anniversary of the Initial Exercise Date (the “Termination Date”) but
not thereafter, to subscribe for and purchase from Vita Food Products, Inc., a
corporation incorporated in the State of Nevada (the “Company”), up to
500,000 shares (the “Warrant Shares”) of Common Stock, par value $0.01
per share, of the Company (the “Common Stock”). The purchase price of
one share of Common Stock (the “Exercise Price”) under this Warrant
shall be $1.25, subject to adjustment hereunder. The Exercise Price and the
number of Warrant Shares for which the Warrant is exercisable shall be subject
to adjustment as provided herein.

2.             Authorization of Shares.   The
Company covenants that all Warrant Shares which may be issued upon the exercise
of the purchase rights represented by this Warrant will, upon exercise of the
purchase rights represented by this Warrant, be duly authorized, validly
issued, fully paid and nonassessable and free from all taxes, liens and charges
in respect of the issue thereof (other than taxes in respect of any transfer
occurring contemporaneously with such issue).

3.             Exercise of Warrant.

(a)           Exercise
of the purchase rights represented by this Warrant may be made at any time or
times on or after the Initial Exercise Date and on or before the Termination
Date by delivery to the Company of a duly executed copy of the Notice of
Exercise Form annexed hereto (or such other office or agency of the Company as
it may designate by notice in writing to the registered Holder at the address
of such Holder appearing on the books of the Company) and surrender of this
Warrant to the Company 

 1
 

(only in cases of full exercise) along with payment of the aggregate
Exercise Price of the shares thereby purchased by wire transfer or cashier’s
check drawn on a United States bank. Certificates for shares purchased
hereunder shall be delivered to the Holder not later than the fifth Trading Day
after the delivery to the Company of the Notice of Exercise Form, surrender of
this Warrant and payment of the aggregate Exercise Price as set forth above (“Warrant
Share Delivery Date”). This Warrant shall be deemed to have been exercised
on the date of delivery to the Company of the Notice of Exercise Form, surrender
of this Warrant and payment of the aggregate Exercise Price as set forth above.
The Warrant Shares shall be deemed to have been issued, and Holder or any other
person so designated to be named therein shall be deemed to have become a
holder of record of such shares for all purposes, as of the date the Warrant
has been exercised by payment to the Company of the Exercise Price and all
taxes required to be paid by the Holder, if any, pursuant to Section 5 prior to
the issuance of such shares, have been paid. Nothing herein shall limit a
Holder’s right to pursue any remedies available to it hereunder, at law or in
equity including, without limitation, a decree of specific performance and/or
injunctive relief with respect to the Company’s failure to timely deliver
certificates representing shares of Common Stock upon exercise of the Warrant
as required pursuant to the terms hereof.

(b)           If this Warrant
shall have been exercised in part, the Company shall, at the time of delivery
of the certificate or certificates representing Warrant Shares, deliver to
Holder a new Warrant evidencing the rights of Holder to purchase the
unpurchased Warrant Shares called for by this Warrant, which new Warrant shall
in all other respects be identical with this Warrant.

(c)           This Warrant may
also be exercised at such time by means of a “cashless exercise” in which the
Holder shall be entitled to receive a certificate for the number of Warrant
Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

(A)            =    the last trading price on the Trading Day
immediately preceding the date of such election;

(B)              =    the Exercise Price of the Warrants, as
adjusted; and

(X)             =    the number of Warrant Shares issuable upon
exercise of the Warrants in accordance with the terms of this Warrant.

4.             No Fractional Shares or Scrip.   No
fractional shares or scrip representing fractional shares shall be issued upon
the exercise of this Warrant. As to any fraction of a share which Holder would
otherwise be entitled to purchase upon such exercise, the Company shall pay a
cash adjustment in respect of such final fraction in an amount equal to such
fraction multiplied by the Exercise Price.

5.             Charges, Taxes and Expenses.   Issuance
of certificates for Warrant Shares shall be made without charge to the Holder
for any issue or transfer tax or other incidental expense in respect of the
issuance of such certificate, all of which taxes and expenses shall be 

 2
 

paid by the Company, and
such certificates shall be issued in the name of the Holder or in such name or
names as may be directed by the Holder; provided, however, that
in the event certificates for Warrant Shares are to be issued in a name other
than the name of the Holder, this Warrant when surrendered for exercise shall
be accompanied by the Assignment Form attached hereto duly executed by the
Holder; and the Company may require, as a condition thereto, the payment of a
sum sufficient to reimburse it for any transfer tax incidental thereto.

6.             Closing of Books.   The
Company will not close its stockholder books or records in any manner which prevents
the timely exercise of this Warrant, pursuant to the terms hereof.

7.             Restrictions on Transfer.

(a)           This
Warrant has been issued in a transaction exempt from the registration
requirements of the Securities Act in reliance upon the provisions of Section
4(2) promulgated by the SEC under the Securities Act of 1933. This Warrant and
the Warrant Shares issuable upon exercise of this Warrant may not be resold
except pursuant to an effective registration statement or an exemption to the
registration requirements of the Securities Act and applicable state laws.

(b)           The
Warrant and any Warrant Shares issued upon exercise thereof (until a
registration statement has been declared effective by the SEC with respect to
the Warrant Shares, at which time, such legend shall be removed, and the
Warrant Shares shall be freely tradable), shall bear the following legend:

THESE SECURITIES HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD OR OFFERED FOR SALE
EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES
UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN
APPLICABLE EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS.

(c)           If
the Holder desires to transfer this Warrant or any of the Warrant Shares, the
Holder will deliver a written notice to the Company describing in reasonable
detail the proposed transfer and the reason such transfer is allowed under the
securities laws. In addition, at the Company’s reasonable request, the Holder
shall deliver an opinion of counsel which (to the Company’s reasonable
satisfaction) is knowledgeable in securities laws matters to the effect that
such transfer may be made without registration under the securities laws. The
Company may also require the transferee to confirm in writing the transferree’s
agreement to be bound by the restrictions hereof.

8.             No Rights as Shareholder until
Exercise.   This Warrant does not entitle the Holder to any voting
rights or other rights as a shareholder of the Company prior to the exercise
hereof. Upon the proper exercise of this Warrant pursuant to Section 3(a) or
3(c), the Warrant 

 3
 

Shares so purchased shall
be and be deemed to be issued to such Holder as the record owner of such shares
as of the close of business on the date of such surrender or payment.

9.             Loss, Theft, Destruction or
Mutilation of Warrant.   The Company covenants that upon receipt by the
Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of this Warrant, and in case of loss, theft or
destruction, of indemnity or security reasonably satisfactory to it (which, may
include an indemnity or the posting of any bond), and upon surrender and
cancellation of such Warrant, if mutilated, the Company will make and deliver a
new Warrant of like tenor and dated as of such cancellation, in lieu of such
Warrant.

10.           Adjustments of Exercise Price and
Number of Warrant Shares.

(a)           Stock Splits, etc.   The
number and kind of securities purchasable upon the exercise of this Warrant and
the Exercise Price shall be subject to adjustment from time to time upon the
happening of any of the following. In case the Company shall (i) pay a dividend
in shares of Common Stock or make a distribution in shares of Common Stock to
holders of its outstanding Common Stock, (ii) subdivide its outstanding shares
of Common Stock into a greater number of shares, (iii) combine its outstanding
shares of Common Stock into a smaller number of shares of Common Stock, or (iv)
issue any shares of its capital stock in a reclassification of the Common
Stock, then the number of Warrant Shares purchasable upon exercise of this
Warrant immediately prior thereto shall be adjusted so that the Holder shall be
entitled to receive the kind and number of Warrant Shares or other securities
of the Company which it would have owned or have been entitled to receive had
such Warrant been exercised in advance thereof. Upon each such adjustment of the kind and number of Warrant Shares or
other securities of the Company which are purchasable hereunder, the Holder
shall thereafter be entitled to purchase the number of Warrant Shares or other
securities resulting from such adjustment at an Exercise Price per Warrant
Share or other security obtained by multiplying the Exercise Price in effect
immediately prior to such adjustment by the number of Warrant Shares
purchasable pursuant hereto immediately prior to such adjustment and dividing
by the number of Warrant Shares or other securities of the Company resulting
from such adjustment. An adjustment made pursuant to this paragraph
shall become effective immediately after the effective date of such event
retroactive to the record date, if any, for such event.

(b)           Reorganization,
Reclassification, Merger, Consolidation or Disposition of Assets.   In
case the Company shall reorganize its capital, reclassify its capital stock,
consolidate or merge with or into another corporation (where the Company is not
the surviving corporation or where there is a change in or distribution with
respect to the Common Stock of the Company), or sell, transfer or otherwise
dispose of any of its property, assets or business to another corporation
(including by way of a spinoff) and, pursuant to the terms of such
reorganization, reclassification, merger, consolidation or disposition of
assets, shares of common stock of the successor or acquiring corporation, or
any cash, shares of stock or other securities or property of any nature
whatsoever (including warrants or other subscription or purchase rights) in
addition to or in lieu of common stock of the successor or acquiring
corporation (“Other Property”), are to be received by or distributed to
the holders of Common Stock of the Company, then the 

 4
 

Holder shall
have the right thereafter to receive, upon exercise of this Warrant, the number
of shares of Common Stock of the successor or acquiring corporation or of the
Company, if it is the surviving corporation, and Other Property receivable upon
or as a result of such reorganization, reclassification, merger, consolidation
or disposition of assets by a holder of the number of shares of Common Stock
for which this Warrant is exercisable immediately prior to such event. In case
of any such reorganization, reclassification, merger, consolidation or
disposition of assets, the successor or acquiring corporation (if other than
the Company) shall expressly assume the due and punctual observance and
performance of each and every covenant and condition of this Warrant to be
performed and observed by the Company and all the obligations and liabilities
hereunder, subject to such modifications as may be deemed appropriate (as
determined in good faith by resolution of the Board of Directors of the
Company) in order to provide for adjustments of Warrant Shares for which this
Warrant is exercisable which shall be as nearly equivalent as practicable to
the adjustments provided for in this Section 10(b). For purposes of this Section
10(b), “common stock of the successor or acquiring corporation” shall include
stock of such corporation of any class which is not preferred as to dividends
or assets over any other class of stock of such corporation and which is not
subject to redemption and shall also include any evidences of indebtedness,
shares of stock or other securities which are convertible into or exchangeable
for any such stock, either immediately or upon the arrival of a specified date
or the happening of a specified event and any warrants or other rights to
subscribe for or purchase any such stock. The foregoing provisions of this
Section 10(b) shall similarly apply to successive reorganizations,
reclassifications, mergers, consolidations or disposition of assets.

(c)           No Preemptive Rights.   Nothing
herein shall grant the Holder any preemptive rights on any additional common
stock offering made by Company from time to time.

(d)           Exercise
Price.   Any adjustment to the Warrant Shares made under this Section
10 will be made without change in the aggregate price applicable to an
exercise of all of the purchase rights represented by this Warrant, but with a
corresponding adjustment in the per share Exercise Price.

11.           Notice of Adjustment.   Whenever
the number of Warrant Shares or number or kind of securities or other property
purchasable upon the exercise of this Warrant or the Exercise Price is
adjusted, as herein provided, the Company shall give notice thereof to the
Holder, which notice shall state the number of Warrant Shares (and other
securities or property) purchasable upon the exercise of this Warrant and the
Exercise Price of such Warrant Shares (and other securities or property) after
such adjustment, setting forth a brief statement of the facts requiring such
adjustment and setting forth the computation by which such adjustment was made.

12.           Notice of Corporate Action.   If
at any time:

(a)           the
Company shall take a record of the holders of its Common Stock for the purpose
of entitling them to receive a dividend or other distribution, or any right to
subscribe for or purchase any evidences of its indebtedness, any shares of
stock of any class or any other securities or property, or to receive any other
right, or

 5
 

(b)           there
shall be any capital reorganization of the Company, any reclassification or
recapitalization of the capital stock of the Company or any consolidation or
merger of the Company with, or any sale, transfer or other disposition of all
or substantially all the property, assets or business of the Company to,
another corporation or,

(c)           there
shall be a voluntary or involuntary dissolution, liquidation or winding up of
the Company;

then, in any one or more
of such cases, the Company shall give to Holder (i) at least 20 days’ prior
written notice of the date on which a record date shall be selected for such
dividend, distribution or right or for determining rights to vote in respect of
any such reorganization, reclassification, merger, consolidation, sale,
transfer, disposition, liquidation or winding up, and (ii) in the case of any
such reorganization, reclassification, merger, consolidation, sale, transfer,
disposition, dissolution, liquidation or winding up, at least 20 days’ prior
written notice of the date when the same shall take place. Such notice in
accordance with the foregoing clause also shall specify (i) the date on which
any such record is to be taken for the purpose of such dividend, distribution
or right, the date on which the holders of Common Stock shall be entitled to
any such dividend, distribution or right, and the amount and character thereof,
and (ii) the date on which any such reorganization, reclassification, merger,
consolidation, sale, transfer, disposition, dissolution, liquidation or winding
up is to take place and the time, if any such time is to be fixed, as of which
the holders of Common Stock shall be entitled to exchange their Warrant Shares
for securities or other property deliverable upon such disposition,
dissolution, liquidation or winding up. Each such written notice shall be
sufficiently given if addressed to Holder at the last address of Holder
appearing on the books of the Company and delivered in accordance with Section
17(d).

13.           Authorized Shares.   The
Company covenants that during the period the Warrant is outstanding, it will
reserve from its authorized and unissued Common Stock a sufficient number of
shares to provide for the issuance of the Warrant Shares upon the exercise of
any purchase rights under this Warrant. The Company further covenants that its
issuance of this Warrant shall constitute full authority to its officers who
are charged with the duty of executing stock certificates to execute and issue
the necessary certificates for the Warrant Shares upon the exercise of the
purchase rights under this Warrant. The Company will take all such reasonable
action as may be necessary to assure that such Warrant Shares may be issued as
provided herein without violation of any applicable law or regulation, or of
any requirements of the Trading Market upon which the Common Stock may be
listed.

Except and to the
extent as waived or consented to by the Holder, the Company shall not by any
action, including, without limitation, amending its certificate of
incorporation or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of
this Warrant, but will at all times in good faith assist in the carrying out of
all such terms and in the taking of all such actions as may be necessary or
appropriate to protect the rights of Holder as set forth in this Warrant
against impairment. Without limiting the generality of the foregoing, the
Company will (a) not increase the par value of any Warrant Shares above the amount
payable therefor upon such exercise immediately prior to such increase in par
value, 

 6
 

(b) take all such action
as may be necessary or appropriate in order that the Company may validly and
legally issue fully paid and nonassessable Warrant Shares upon the exercise of
this Warrant, and (c) use commercially reasonable efforts to obtain all such
authorizations, exemptions or consents from any public regulatory body having
jurisdiction thereof as may be necessary to enable the Company to perform its
obligations under this Warrant.

Before taking any
action which would result in an adjustment in the number of Warrant Shares for
which this Warrant is exercisable or in the Exercise Price, the Company shall
obtain all such authorizations or exemptions thereof, or consents thereto, as
may be necessary from any public regulatory body or bodies having jurisdiction
thereof.

14.           Saturdays, Sundays, Holidays, etc.   If
the last or appointed day for the taking of any action or the expiration of any
right required or granted herein shall be a Saturday, Sunday or a legal
holiday, then such action may be taken or such right may be exercised on the
next succeeding day not a Saturday, Sunday or legal holiday. For purposes
hereof, a “Trading Day” shall mean a day on which the American Stock
Exchange is open for trading.

15.           Miscellaneous.

(a)           Jurisdiction.   All
questions concerning the construction, validity, enforcement and interpretation
of this Warrant shall be governed by the laws of the State of Nevada, without
regard to the possible application of principles of conflict of law.

(b)           Nonwaiver and
Expenses.   No course of dealing or any delay or failure to exercise
any right hereunder on the part of Holder shall operate as a waiver of such
right or otherwise prejudice Holder’s rights, powers or remedies,
notwithstanding the fact that all exercise rights hereunder terminate on the
Termination Date. If the Company willfully and knowingly fails to comply with
any provision of this Warrant, which results in any damages to the Holder, the
Company shall pay to Holder such amounts as shall be sufficient to cover any
costs and expenses including, but not limited to, reasonable attorneys’ fees,
including those of appellate proceedings, incurred by Holder in collecting any
amounts due pursuant hereto or in otherwise enforcing any of its rights, powers
or remedies hereunder.

(c)           Notices.   Any
notice or other communication required or permitted to be given hereunder shall
be in writing and shall be effective (a) upon hand delivery or delivery by
facsimile at the address or number designated below (if delivered on a business
day during normal business hours where such notice is to be received), or the
first business day following such delivery (if delivered other than on a
business day during normal business hours where such notice is to be received)
or (b) on the second business day following the date of mailing by express
courier service, fully prepaid, addressed to such address, or upon actual
receipt of such mailing, whichever shall first occur. The addresses for such
communications shall be:

If to the Company:                                             Vita Food
Products, Inc.
 2222 West Lake Street

Chicago, IL 60612

 7
 

to the Holder:                                                                       to
the address of Holder

as it appears in the records of

the Company

Either party hereto may
from time to time change its address or facsimile number for notices under this
Section 15(c) by giving at least 10 days prior written notice of such changed
address or facsimile number to the other party hereto.

(d)           Limitation of
Liability.   No provision hereof, and no enumeration herein of the
rights or privileges of Holder, in and of itself, shall give rise to any
liability of Holder for the purchase price of any Common Stock or as a
stockholder of the Company, whether such liability is asserted by the Company
or by creditors of the Company.

(e)           Successors and
Assigns.   Subject to applicable securities laws, this Warrant and the
rights and obligations evidenced hereby shall inure to the benefit of and be
binding upon the successors and permitted assigns of the Company and of the
Holder. The provisions of this Warrant are intended to be for the benefit of
all Holders from time to time of this Warrant and shall be enforceable by any
such Holder or holder of Warrant Shares.

(f)            Amendment.   This
Warrant may be modified or amended or the provisions hereof waived with the
written consent of the Company and the Holder.

(g)           Severability.   Wherever
possible, each provision of this Warrant shall be interpreted in such manner as
to be effective and valid under applicable law, but if any provision of this
Warrant shall be prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provisions or the remaining provisions of
this Warrant.

(h)           Headings.   The
headings used in this Warrant are for the convenience of reference only and
shall not, for any purpose, be deemed a part of this Warrant.

********************

 8
 

IN WITNESS
WHEREOF, the Company has caused this Warrant to be executed by its officer
thereunto duly authorized.

Dated:                         ,
2007

	
  

  	
  VITA FOOD PRODUCTS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 9

NOTICE OF EXERCISE

To:          Vita Food Products, Inc.

(1)           The undersigned hereby elects to
purchase ________ Warrant Shares of Vita Food Products, Inc. pursuant to the
terms of the attached Warrant (only if exercised in full), and tenders herewith
payment of the exercise price in full, together with all applicable transfer
taxes, if any.

(2)           Payment shall take the form of (check
applicable box):

[ ] in lawful money of the United States; or

[ ] the cancellation of such number of Warrant Shares
as is necessary, in accordance with the formula set forth in subsection 3(c),
to exercise this Warrant with respect to the maximum number of Warrant Shares
purchasable pursuant to the cashless exercise procedure set forth in subsection
3(c).

(3)           Please issue a certificate or certificates
representing said Warrant Shares in the name of the undersigned or in such
other name as is specified below:

_______________________________

The Warrant Shares
shall be delivered to the following:

_______________________________

_______________________________

_______________________________

	
  

  	
   

  
	
  

  	
  Howard Bedford

  
	
   

  	
   

  
	
   

  	
  Dated:United States Securities & Exchange Commission EDGAR Filing

EXHIBIT 10.1

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT entered into this 15th day of May, 2007, between Ecosphere Technologies, Inc. (the “Company”), and Gordon L. Goodman (the “Executive”).

WHEREAS, the Company desires to employ Executive and to ensure the continued availability to the Company of the Executive’s services, and the Executive is willing to accept such employment and render such services, all upon and subject to the terms and conditions contained in this Agreement;

NOW, THEREFORE, in consideration of the premises and the mutual covenants set forth in this Agreement, and intending to be legally bound, the Company and the Executive agree as follows:

1.

Representations and Warranties. The Executive hereby represents and warrants to the Company that he (i) is not subject to any written non-solicitation or non-competition agreement affecting his employment with the Company, (ii) is not subject to any written confidentiality or nonuse/nondisclosure agreement affecting his employment with the Company, and (iii) has brought to the Company no trade secrets, confidential business information, documents, or other personal property of a prior employer. 

2.

Term of Employment.

(a)

Term.  The Company hereby employs the Executive, and the Executive hereby accepts employment with the Company, for a period commencing on May 15, 2007 and ending two years thereafter.

(b)

Continuing Effect.  Notwithstanding any termination of this Agreement, at the end of the Term or otherwise, the provisions of Sections 7 and 8 shall remain in full force and effect and the provisi­ons of Section 8 shall be binding upon the legal representa­tives, successors and assigns of the Executive.

3.

Duties.

(a)

General Duties.  The Executive shall serve as the following:

(i)

Senior Vice President – Business Development of the Company, with duties and responsibilities that are customary for such executives. Those duties shall include but not be limited to planning and executing marketing and sales activities for the Company and its subsidiaries, including the acquisition and promotion of Customers (as defined in Section 7(b)) for all aspects of the Company’s technologies, Products and Services (as defined in Section 8(a)). 

2

(ii)

President of Ecosphere Systems, Inc., a Florida corporation and the Company’s subsidiary (“ESI”).  The Executive’s duties will include but not be limited to managing ESI’s relationship with Oshkosh Truck Corporation and Pierce Manufacturing Inc. in conjunction with The Allbaugh Company, LLC, build new businesses and new markets for ESI’s mobile water filtration systems, manage the relationship with Eserve, Crossbow and others to build a next-generation mobile water filtration system for military and commercial Customers, meet with institutions, investors and other to further capitalize ESI and create a business plan to reflect the open business model of creating clean technologies to sell or license. 

The Executive will perform other service services for the Company’s subsidiaries as may be necessary. The Executive will use his best efforts to perform his duties and discharge his responsibilities pursuant to this Agreement competently, carefully and faithfully.  The Executive shall report to the President and Chief Executive Officer of the Company.

(b)

Devotion of Time.  Subject to the last sentence of this Section 3(b), the Executive shall devote all of his time, attention and energies during normal business hours (exclusive of periods of sickness and disability and of such normal holiday and vacation periods as have been established by the Company) to the affairs of the Company. The Executive shall not enter the employ of or serve as a consultant to, or in any way perform any services with or without compensation to, any other persons, business or organization without the prior consent of the Board of Directors of the Company; provided, that the Executive shall be permitted to devote a limited amount of his time, without compensation, to professional, charitable or similar organizations.

(c)

Adherence to Inside Information Policies.  The Executive acknowledges that the Company is publicly-held and, as a result, has implemented inside information policies designed to preclude its executives and those of its subsidiaries from violating the federal securities laws by trading on material, non-public information or passing such information on to others in breach of any duty owed to the Company, or any third party.  The Executive shall promptly execute any agreements generally distributed by the Company to its employees  requiring such employees to abide by its inside information policies.

(d)

Location of Office.  The Executive’s office shall be located at the principal office of the Company  (currently Stuart, Florida) and his home in Plainfield, Illinois.  The Executive shall travel as is necessary to carry out his duties and be reimbursed by the Company for his business travel expenses in accordance with the Company’s policies as referred to in Section 4(b).

4.

Compensation and Expenses.  

(a)

Salary.  For the services of the Executive to be rendered under this Agreement, the Company shall pay the Executive an annual salary of $165,000.

Additionally, the Executive’s annual salary of $165,000 shall be subject to increase, but not decrease, at the discretion of the ESI Board of Directors based upon an annual performance review. The Company shall pay the Executive his annual compensation in equal installments no less frequently than bi-weekly in accordance with the normal payroll practices of the Company.

3

(b)

Expenses.  In addition to any compensation received pursuant to Section 4(a) and (c), the Company will reimburse or advance funds to the Executive for all reasonable travel, entertainment and miscel­laneous expenses incurred in connection with the performance of his duties under this Agreement, provided that the Executive properly accounts for such expenses to the Company in accordance with the Company’s practices.  Such reimbursement or advances will be made in accordance with policies and procedures of the Company in effect from time to time relating to reimbursement of or advances to executive officers.

(c)

Incentive Bonus.  The Company shall pay a bonus to the Executive on a quarterly basis of:

(i)

2% of the revenue of ESI; and

(ii)

1% of the revenue of the Company on a consolidated basis.  Revenue shall be based upon the financial statements filed by the Company with the Securities and Exchange Commission or, in the case of ESI revenue, derived from such financial statements.

The bonus for a quarter shall be paid within five days after the Company has filed its report on Form 10-QSB or Form 10-KSB.  In the event that (i) revenue upon which the Executive receives an incentive bonus is decreased for any reason including a change in a reserve in a subsequent quarter and the change occurs after termination of employment; or (ii) revenue contained in a Form 10-QSB or 10-KSB (or the equivalent) is restated for a period in which the Executive received an incentive bonus, he shall promptly return any amount he was paid as an incentive to which he was not entitled.

(d)  

Discretionary Bonus.  A discretionary bonus may be awarded to the Executive by the ESI’s Board of Directors based on subjective criteria (unrelated to actual revenue) evaluating the Executive’s efforts in connection with the Company’s achievements, which may result in future expansion and revenue.

(e)  

Issuance and Vesting of Stock Options.  As further consideration for the services to be rendered pursuant to this Agreement, the Company shall grant to Executive 400,000 non-qualified stock options, exercisable over a five-year period at $0.50 per share.  The options shall vest in increments of 100,000 options on October 1, 2007, May 1, 2008, October 1, 2008 and May 1, 2009, so long as the Executive remains employed by the Company or any of its subsidiaries on the applicable vesting dates. However, in the event of termination without “Good Reason” as defined in Section 6(c) herein, all options shall immediately vest. 

5.

Benefits.

(a)  

Vacation.  For each 12-month period during the Term, the Executive will be entitled to four weeks of vacation without loss of compensation or other benefits to which he is entitled under this Agreement, to be taken at such times as the Executive may select and the affairs of the Company may permit. Any unused vacation will accrue until the next 12-month period. 

4

(b) 

Employee Benefit Programs.  The Executive is entitled to participate in any pension, 401(k), insurance or other employee benefit plan that is maintained by the Company for its executive officers, including programs of life and medical insurance and reimbursement of membership fees in civic, social and professional organizations.

6.

Termination.

(a)

Death or Disability.  Except as otherwise provided in this Agreement, this Agreement shall automatically terminate without act by any party upon the death or disability of the Executive.  For purposes of this Section 6(a), “disability” shall mean that for a period of 90 consecutive days or 120 total days in any 12-month period, the Executive is incapable of substantially fulfilling the duties set forth in Section 3 (which means full-time employment) because of physical, mental, or emotional incapacity, resulting from injury, sickness, or disease, as evidenced by written determination of the Executive’s physician.  In the event that Executive’s employment is terminated by reason of Executive’s death or disability, the Company shall pay the following to Executive: (i) any accrued but unpaid salary for services rendered to the date of termination, (ii) the remainder of the Executive’s  salary due during the Term, (iii) any accrued but unpaid expenses required to be reimbursed under this Agreement, and (iv)  the Executive’s estate  or his  legally appointed guardian, as the case may be, shall have up to one  year from the date of termination to exercise all outstanding granted options, provided that in no event shall any option be exercisable beyond its term.  The Executive (or his estate) shall receive the payments provided herein at such times he would have received them if there was no death or disability.  

(b)

Termination for Cause.  The Company may terminate the Execu­tive’s employment pursuant to the terms of this Agreement at any time for “Cause” as defined below by giving written notice of termination. Such termina­tion will become effective upon the giving of such notice.  Upon any such termination for Cause or without Good Reason, as defined in Section 6(c), the Executive shall have no right to compensation, bonus or reimbursement under Section 4, or to participate in any employee benefit programs under Section 5, except as provided by law, for any period subsequent to the effective date of termina­tion.  For purposes of this Section 6(b), “Cause” shall mean:  (i) the Executive is convicted of a felony or commits a felonious act which is related to the Executive’s employment or the business of the Company or any of its subsidiaries; (ii) the Executive, in carrying out his duties hereunder, has acted with gross negligence or intentional misconduct resulting, in either case, in harm to the Company or any of its subsidiaries; (iii) the Executive misappropriates the Company’s or any of its subsidiaries’ funds or otherwise defrauds the Company or any of its subsidiaries; (iv) the Executive breaches his fiduciary duty to the Company or any of its subsidiaries resulting in profit to him, directly or indirectly; (v) the Executive materially breaches any agreement with the Company or any of its subsidiaries; (vi) it is later determined that Executive fraudulently concealed facts or made misrepresentations concerning the Executive’s prior employment; (vii) the Executive fails to perform his duties or performs such duties in a manner not customary for an executive of similar status and compensation; (viii) the Executive fails on more than occasion to comply with the directives of the Company’s Board of Directors; (ix) the Executive suffers from alcoholism or drug addiction or otherwise uses alcohol to excess or uses drugs in any form except strictly in accordance with the recommendation of a physician or dentist; (x) the Executive 

5

has been found to have committed any act or have failed to take any action which results in the Company’s common stock being delisted or not listed for trading on the Over-the-Counter Bulletin Board or a national securities exchange, as applicable; (xi) the Executive fails or refuses to cooperate in any official investigation or inquiry conducted by or on behalf of the Company or by any government body or agency asserting jurisdiction over the Company or any of  its securities; or (xii) committed an act or omission constituting gross negligence or willful misconduct which causes, at least in part, the Company to restate its financial statements for a completed fiscal period after having filed such financial statements with the Securities and Exchange Commission.

(c)

Termination Without Cause or Termination for Good Reason.  In the event that  Executive terminates, by written notice to the Company, the Executive’s employment at any time for “Good Reason,” as defined below, or in the event the Company terminates the Executive without Cause, then in either case, the Company shall pay the Executive at the time of termination an amount equal to  the salary due for the remainder of the Term.  For purposes of this Section 6(c), the term “Good Reason” shall mean (i) the Executive, with or without change in title or formal corporate action, no longer exercises substantially all of the duties and responsibilities and shall no longer possess substantially all of the authority set forth in Section 3; (ii) the Company materially breaches this Agreement; or (iii) any entity or person not now an executive officer or director of the Company becomes either individually or as part of a group (required to file a Schedule 13D or 13G with the SEC) the beneficial owner of 30% or more of the Company’s common stock. The Executive shall have a period of 90 days following the occurrence of an event constituting Good Reason under clauses (i) and (ii) above and a period of 180 days following an event constituting Good Reason under clause (iii) above in which to exercise his right to terminate for Good Reason, or the Executive shall be deemed to have waived that particular Good Reason.  Any provision in an agreement with an investor of the Company providing that such investor shall not be deemed to be a 5% beneficial owner prior to conversion or exercise of a derivative security shall be deemed conclusive in determining whether the 30% threshold has been met.

(d)

Incentive Bonus Due.  In the event of termination for any reason except Cause, the incentive bonus shall be prorated to the date of termination.

7.

Non-Competition Agreement.

(a)

Competition with the Company.  Until termination of his employment and for a period of two years after the effective date of termination, the Executive, directly or indirectly or, in association with or as a stockholder, director, officer, consultant, employee, partner, joint venturer, member or otherwise of or through any person, firm, corporation, partnership, association or other entity (any of the foregoing, an “Affiliated Entity”) shall not act as an executive officer or provide Goods or Services, as defined in Section 8(a), to any entity which competes with the Company, within any metropolitan area in the United States or elsewhere in which the Company or any of its other subsidiaries (collectively, the “Affiliates”), if applicable, is then engaged in the offer and sale of competitive Goods or Services (the “Prohibited Business”); provided, however, that the foregoing shall not prohibit Executive from owning up to 5% of the securities of any publicly-traded enterprise that engages in the Prohibited Business as long as the Executive is not an employee, director, officer, consultant to such 

6

enterprise or otherwise reimbursed for services rendered to such enterprise.  In addition, the Executive may not, directly or indirectly, including through any Affiliated Entity, obtain employment with or perform services for any Customer (as defined below) of the Company during the period commencing on the effective date of termination and continuing for 12 months thereafter.

(b)

Solicitation of Customers.  During the periods in which the provisions of Section 7(a) shall be in effect, the Executive, directly or indirectly, including through any Affiliated Entity, shall not seek Prohibited Business from any Customer on behalf of any enterprise or business other than the Company, refer Prohibited Business generated from any Customer to any enterprise or business other than the Company or receive commissions based on sales or otherwise relating to the Prohibited Business from any Customer, enterprise or business other than the Company.  For purposes of this Agreement, the term “Customer” means any person, firm, corporation, limited liability company, partnership, association or other entity (i) to which the Company sold or provided Goods or Services in excess of $50,000 during the 24-month period prior to the time at which any determination is required to be made as to whether any such person, firm, corporation, partnership, association or other entity is a Customer, or (ii) who or which has been approached by an employee of the Company for the purpose of soliciting business for the Company and which business was reasonably expected to generate revenue in excess of $50,000.

(c)

Solicitation of Employees.  During the periods in which the provisions of Section 7(a) shall be in effect, the Executive, directly or indirectly, including through any Affiliated Entity, shall not solicit, hire or contact any employee of the Company for the purpose of hiring them or causing them to terminate their employment relationship with the Company .

(d)

No Payment.  The Executive acknowledges and agrees that no separate or additional payment will be required to be made to him in consideration of his undertakings in this Section 7.  

(e)

References. References to the Company in this Section 7 shall include the Company’s Affiliates including ESI.

8.

Non-Disclosure of Confidential Information.  

(a)

Confidential Information.  Confidential Information includes, but is not limited to, trade secrets defined in Section 688.002(4), Florida Statutes (or any successor statute), processes, policies, procedures, techniques, designs, drawings, know-how, show-how, technical information, specifications, computer software (including, but not limited to, computer programs developed, improved or modified by the Company for or on behalf of the Company for use in the Company’s business, and source code), information and data relating to the development, research, testing, manufacturing, costs, marketing and uses of the Products or Services (as defined herein), the Company’s budgets and strategic plans, and the identity and special needs of Customers for the Products, databases, data, all technology relating to the Company’s human resources software and consulting businesses, systems, methods of operation, Customer lists, Customer information, solicitation leads, marketing and advertising materials, methods and manuals and forms, all of which pertain to the activities or operations of the Company, names, home addresses and all 

7

telephone numbers and e-mail addresses of the Company’s employees and former employees.  Confidential Information also includes, without limitation, Confidential Information received from the Company’s subsidiaries and affiliates.  For purposes of this Agreement, the following will not constitute Confidential Information (i) information which is or subsequently becomes generally available to the public through no act of the Executive, (ii) information set forth in the written records of the Executive prior to disclosure to the Executive by or on behalf of the Company, and (iii) information which is lawfully obtained by the Executive in writing from a third party (excluding any affiliates of the Executive) who did not acquire such confidential information or trade secret, directly or indirectly, from Executive or the Company. As used herein, the term “Products” and “Services” shall include all products or services for which the Company or any of its subsidiaries owned any patent or patent pending during the term of Executive’s employment or applied for a patent (including a provisional patent) within 12 months after termination.

(b)

Legitimate Business Interests.  The Executive recognizes that the Company has legitimate business interests to protect and as a consequence, the Executive agrees to the restrictions contained in this Agreement because they further the Company’s legitimate business interests. These legitimate business interests include, but are not limited to (i) trade secrets as defined in this Section 8(b), (ii) valuable confidential business or professional information that otherwise does not qualify as trade secrets including all Confidential Information; (iii) substantial relationships with specific prospective or existing Customers or clients; (iv) Customer or client goodwill associated with the Company’s business; and (v) specialized training relating to the Company’s and its subsidiaries’ technology, methods and procedures.  

(c)

Confidentiality.  For a period of five years, the Confidential Information shall be held by the Executive in the strictest confidence and shall not, without the prior written consent of the Company, be disclosed to any person other than in connection with Executive’s employment by the Company or any of its subsidiaries. The Executive further acknowledges that such Confidential Information as is acquired and used by the Company or its subsidiaries is a special, valuable and unique asset. The Executive shall exercise all due and diligence precautions to protect the integrity of the Confidential Information and to keep it confidential whether it is in written form, on electronic media or oral. The Executive shall not copy any Confidential Information except to the extent necessary to his employment nor remove any Confidential Information or copies thereof from the Company’s or any of its subsidiaries’ premises except to the extent necessary to his employment and then only with the authorization of an officer of the Company. All records, files, materials and other Confidential Information obtained by the Executive in the course of his employment with the Company or any of its subsidiaries are confidential and proprietary and shall remain the exclusive property of the Company, its subsidiaries or its Customers, as the case may be. The Executive shall not, except in connection with and as required by his performance of his duties under this Agreement, for any reason use for his own benefit or the benefit of any person or entity with which he may be associated or disclose any such Confidential Information to any person, firm, corporation, association or other entity for any reason or purpose whatsoever without the prior written consent of an executive officer of the Company (excluding the Executive, if applicable).

8

9.

Equitable Relief.

(a)  The Company and the Executive recognize that the services to be rendered under this Agreement by the Executive are special, unique and of extraordinary character, and that in the event of the breach by the Executive of the terms and conditions of this Agreement or if the Executive, without the prior consent of the Board of Directors of the Company, shall leave his employment for any reason and take any action in violation of Section 7 or Section 8, the Company will be entitled to institute and prosecute proceedings in any court of competent jurisdiction referred to in Section 9(b) below, to enjoin the Executive from breaching the provisions of Section 7 or Section 8. In such action, the Company will not be required to plead or prove irreparable harm or lack of an adequate remedy at law. Nothing contained in this Section 9 shall be construed to prevent the Company from seeking such other remedy in arbitration in case of any breach of this Agreement by the Executive, as the Company may elect.

(b)  Any proceeding or action must be commenced in Martin County, Florida where the Company maintains its principal offices. The Executive and the Company irrevocably and unconditionally submit to the exclusive jurisdic­tion of such courts and agree to take any and all future action necessary to submit to the jurisdiction of such courts. The Executive and the Company irrevocably waive any objection that they now have or hereafter ir­revocably waive any objection that they now have or hereafter may have to the laying of venue of any suit, action or proceeding brought in any such court and further irrevocably waive any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. Final judgment against the Executive or the Company in any such suit shall be conclus­ive and may be enforced in other jurisdictions by suit on the judgment, a certified or true copy of which shall be conclusive evidence of the fact and the amount of any liability of the Executive or the Company therein described, or by appropriate proceedings under any applicable treaty or otherwise.

10.

Assignability.  The rights and obligations of the Company under this Agreement shall inure to the benefit of and be binding upon the successors and assigns of the Company, provided that such successor or assign shall acquire all or substantially all of the securities or assets and business of the Company. The Executive’s obligations hereunder may not be assigned or alienated and any attempt to do so by the Executive will be void.

11.

Severability.  

(a)  The Executive expressly agrees that the character, duration and geographical scope of the provisions set forth in this Agreement are reasonable in light of the circumstances as they exist on the date hereof. Should a decision, however, be made at a later date by a court of competent jurisdiction that the character, duration or geographical scope of such provisions is unreasonable, then it is the intention and the agreement of the Executive and the Company that this Agreement shall be construed by the court in such a manner as to impose only those restrictions on the Executive’s conduct that are reasonable in the light of the circumstances and as are necessary to assure to the Company the benefits of this Agreement. If, in any judicial proceed­ing, a court shall refuse to enforce all of the separate covenants deemed included herein because taken together they are more extensive than necessary to assure to the Company the intended benefits of this Agreement, it is expressly understood and agreed by the parties hereto that the provisions of this 

9

Agreement that, if eliminated, would permit the remaining separate provisions to be enforced in such proceeding shall be deemed eliminated, for the purposes of such proceeding, from this Agreement.

(b)  If any provision of this Agreement otherwise is deemed to be invalid or unenforceable or is prohibited by the laws of the state or jurisdiction where it is to be performed, this Agreement shall be considered divisible as to such provision and such provision shall be inoperative in such state or jurisdiction and shall not be part of the consideration moving from either of the parties to the other. The remaining provisions of this Agreement shall be valid and binding and of like effect as though such provision was not included.

12.

Notices and Addresses.  All notices, offers, acceptance and any other acts under this Agreement (except payment) shall be in writing, and shall be sufficiently given if delivered to the addressees in person, by Federal Express or similar receipted delivery, by facsimile delivery or, if mailed, postage prepaid, by certified mail, return receipt requested, as follows:

To the Company:

Ecosphere Technologies, Inc.

3515 S.E. Lionel Terrace

Stuart, FL 34997

Attention: Mr. James C. Rushing III

Facsimile: (772) 781-4778

With a Copy to:

Harris Cramer LLP

1555 Palm Beach Lakes Blvd., Suite 310

West Palm Beach, FL 33401

Attention: Michael D. Harris, Esq.

Facsimile: (561) 659-0701

To the Executive:

Gordon Goodman

13147 Merganser Court

Plainfield, IL 60585

or to such other address as either of them, by notice to the other may designate from time to time.  The transmission confirmation receipt from the sender’s facsimile machine shall be evidence of successful facsimile delivery. Time shall be counted to, or from, as the case may be, the delivery in person or by mailing.

13.

Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.  The execution of this Agreement may be by actual or facsimile signature.  

14.

Arbitration.  Any controversy, dispute or claim arising out of or relating to this Agreement, or its interpretation, application, implementation, breach or enforcement which the parties are unable to resolve by mutual agreement, shall be settled by submission by either party of the controversy, claim or dispute to binding arbitration in Stuart, Florida (unless the parties agree in writing to a different location), before a single arbitrator in accordance with the rules of the 

10

American Arbitration Association then in effect. In any such arbitration proceeding the parties agree to provide all discovery deemed necessary by the arbitrator. The decision and award made by the arbitrator shall be final, binding and conclusive on all parties hereto for all purposes, and judgment may be entered thereon in any court having jurisdiction thereof.

15.

Attorney’s Fees.  In the event that there is any controversy or claim arising out of or relating to this Agreement, or to the interpretation, breach or enforcement thereof, and any action or proceeding is commenced to enforce the provisions of this Agreement, the prevailing party shall be entitled to a reasonable attorney’s fees, costs and expenses.

16.

Governing Law.  This Agreement and any dispute, disagreement, or issue of construction or interpretation arising hereunder whether relating to its execution, its validity, the obligations provided therein or performance shall be governed or interpreted according to the state of incorporation of the Company without regard to choice of law considerations.  

17.

Entire Agreement.  This Agreement constitutes the entire Agreement between the parties and supersedes all prior oral and written agreements between the parties hereto with respect to the subject matter hereof. Neither this Agreement nor any provision hereof may be changed, waived, discharged or terminated orally, except by a statement in writing signed by the party or parties against which enforcement or the change, waiver discharge or termination is sought.

18.

Additional Documents.  The parties hereto shall execute such additional instruments as may be reasonably required by their counsel in order to carry out the purpose and intent of this Agreement and to fulfill the obligations of the parties hereunder.

19.

Section and Paragraph Headings.  The section and paragraph headings in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

IN WITNESS WHEREOF, the Company and the Executive have executed this Agreement as of the date and year first above written.

			
	 
	ECOSPHERE TECHNOLOGIES, INC.

	  

	 
	 

	  

	 
	 

	                                                           

	By:

	/s/ DENNIS MCGUIRE

	 
	 
	Dennis McGuire, Chief Executive Officer

	  

	 
	 

	  

	 
	 

	 
	 
	EXECUTIVE

	  

	 
	 

	  

	 
	 

	  

	 
	/s/ GORDON L. GOODMAN

	 
	 
	Gordon L. Goodman

11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]