Exhibit 10.16


                      AGREEMENT FOR RENEWAL OF CONTRACT FOR
                        MOTOR VEHICLE INSPECTION PROGRAM

                           ZONE 3 - PALM BEACH COUNTY
         WHEREAS, Envirotest Technologies (hereinafter referred to as
"Contractor"), and the Department of Highway Safety and Motor Vehicles
(hereinafter referred to as "the State"), are parties to an agreement entitled
"A Contract for Motor Vehicle Inspection Program" and assigned Contract Number
M0169 (hereinafter "the Contract"), and

         WHEREAS, the Contract will expire on March 31, 1998, and

         WHEREAS, the parties desire to exercise the renewal option set forth in
section I, paragraph U of the Contract,

         NOW, THEREFORE, be it agreed that the Contractor and the State do
hereby covenant and agree that the term of the Contract be renewed for two
additional one-year periods, up to and including March 31, 2000, and,

         BE IT FURTHER AGREED that the Contract, all exhibits thereto, and all
amendments thereto, if any, are incorporated by reference in this Agreement just
as though fully set out herein, and, except as otherwise provided herein, the
Contractor and the State do hereby bind themselves to perform all the
obligations of said Contract until the same expires on March 31, 2000, and,

         BE IT FURTHER AGREED that during the renewal period and as
consideration for this renewal, the Contractor waives and releases the State
from any claims for damages pursuant to section 325.207(8)(i), Florida Statutes,
and Section V, Paragraph H of the Contract as a result of cancellation of the
Program at any time during the renewal period by the Legislature. This waiver
and release extends to any compensation to which the Contractor may be entitled
in equity, law, or contract arising out of section 325.207(8)(i), Florida
Statutes, and Section V, paragraph H of the Contract. In furtherance of this
waiver, the Contractor hereby releases the State from any and all obligations it
may have in equity, law, or contract arising out of section 325.207(8)(i),
Florida Statutes, and Section V, paragraph H of the Contract: to negotiate an
amount to be paid to the Contractor as compensation for such termination; to
determine such an 





amount; to offer the Contractor a point of entry to an administrative proceeding
relating such compensation; and to seek or request an appropriation for payment
of such compensation from the Legislature.

         BE IT FURTHER AGREED that this waiver and release shall not apply to
any funds expended by the Contractor in response to the enactment of any law
that alters the services to be provided by the Contractor as part of the
Program.

         BE IT FURTHER AGREED that this waiver and release shall not apply to
the damages arising from the Contractor's obligation under the leases entered
into in furtherance of its obligations under the Contract.


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         IN WITNESS WHEREOF, State and Contractor have caused this Agreement to
be executed by their respective undersigned officials authorized to do so, on
the dates set out below.

                                           Contractor:



                                                      [Illegible]
- ----------------------------               -------------------------------------



/s/ Barbara P. Davis                       President of CEO
- ----------------------------               -------------------------------------
Witness as to Contractor                   Title


                                           February 14, 1997
                                           -------------------------------------
                                           Date


                                           State:

/s/ Nelda Parker                           /s/ William Snodgrass
- ----------------------------               -------------------------------------
                                           Director of Administrative Services


/s/ Brenda L. Mathew                       February 24, 1997
- ----------------------------               -------------------------------------
Witness as to State                        Date


Approved as to form and legality, subject only to full and proper execution by
the parties.

                                           /s/ Enoch J. Whitney
                                           -------------------------------------
                                           Enoch J. Whitney
                                           General Counsel



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