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                                                                   EXHIBIT 10.62


                             EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (this "Agreement") is entered into on November
18, 2001 between Bactolac Pharmaceutical Inc., a Delaware corporation (the
"Company") and Pailla Reddy (the "Executive").

                                   RECITALS

     A.   The Company and the Executive entered into an Employment Agreement
effective November 17, 1999 which terminated November 17, 2001.It is the desire
of the Company and the Executive that the Executive continue to be employed by
the Company.

     B.   The Company desires to employ the Executive, and the Executive desires
to be so employed by the Company, on the terms and subject to the conditions set
forth in this Agreement.

                                   AGREEMENT

     NOW, THEREFORE, in consideration of the premises and the mutual promises
set forth in this Agreement, the Company and the Executive hereby agree as
follows:

     1.   Employment.
          ----------

          (a)  Subject to the terms and conditions contained herein, the Company
employs the Executive, and the Executive accepts such employment, from the date
hereof until the earlier of (i) November 1, 2003 or (ii) the date such
employment is terminated pursuant to Section 4 of this Agreement.  During the
Executive's employment under this Agreement, the Executive shall perform such
duties for the Company as may from time to time be assigned to the Executive by
the Board of Directors of the Company (the "Board").  The Executive shall have
the title of President and such additional titles as from time to time may be
assigned to the Executive by the Board.

          (b)  The Executive will devote his entire business time, energy,
attention and skill to the services of the Company and its affiliates and to the
promotion of their interests; provided, however, the Executive may from time to
time render some services to Shilpa-Saketh Realty, Inc. and Maxus Worldwide,
Inc., which will not interfere in any material respect with his duties to the
Company.  So long as the Executive is employed by the Company, the Executive
shall not, without the written consent of the Company whose consent shall not be
unreasonably withheld:

               (i)    engage in any other activity for compensation, profit or
other pecuniary advantage, whether received during or after the term of this
Agreement;

               (ii)   render or perform services of a business, professional, or
commercial nature other than to or for the Company, either alone or as an
employee, consultant,
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director, officer, or partner of another business entity, whether or not for
compensation, and whether or not such activity, occupation or endeavor is
similar to, competitive with, or adverse to the business or welfare of the
Company; or

               (iii)  invest in or become a shareholder of another corporation
or other entity; provided, that the Executive's investment solely as a
shareholder in another corporation shall not be prohibited hereby so long as
such investment is not in excess of two percent (2%) of any class of shares that
are traded on a national securities exchange or quoted on the NASDAQ National
Market; and, provided further, Executive may maintain his ownership in Shilpa-
Saketh Realty, Inc., a real estate holding company, and his stock ownership
interest in Maxus Worldwide, Inc., a company in the business of pharmaceuticals
which Executive represents is not in, nor will it enter, the business of
manufacturing nutritional supplements.

     2.   Location of Employment.  The Executive's principal place of employment
          ----------------------
shall be at the executive offices of the Company located in Hauppauge, New York
or in the same general area; provided, that at the direction of the Board, the
Executive may from time to time be required to travel to various domestic and
foreign locations.

     3.   Compensation.
          ------------

          (a)  In exchange for full performance of the Executive's obligations
and duties under this Agreement, the Company shall pay the Executive a base
salary at a monthly rate of $20,833.33, payable in accordance with the Company's
standard payroll practices.  In any month in which the Executive shall be
employed for less than the entire number of days in such month, the compensation
payable under this Section 3(a) shall be prorated on the basis of the number of
days during which the Executive was actually employed divided by the number of
days in such month.  The base salary described in subsection (a) hereof is a
gross amount, and the Company shall be required to withhold from such amount
deductions with respect to Federal, state and local taxes, FICA, unemployment
compensation taxes and similar taxes, assessments or withholding requirements.

          (b)  In addition to the base salary, Executive shall be entitled to a
performance bonus (the "Bonus") at the discretion of the Board.

          (c)  During the Executive's employment under this Agreement, the
Executive shall also be reimbursed by the Company for reasonable business
expenses actually incurred or paid by the Executive, consistent with the
policies established by the Board, in rendering to the Company the services
provided for in this Agreement, upon presentation of expense statements or such
other supporting information as is consistent with the policies of the Company.

          (d)  The Executive shall be entitled to 15 business days vacation for
each full year of employment under this Agreement, which vacation time will
accrue in accordance with the vacation policy of the Company.

          (e)  The Executive shall be entitled to participate in all benefit
plans (including deferred compensation plans and any medical, dental or life
insurance plans) which shall be

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available from time to time to the domestic management employees of the Company
generally, except to the extent such participation in any plan would alter the
intended tax treatment of such plan; provided, however, that the Executive shall
have no right under this Agreement to participate in any additional stock
option, stock purchase or other plan relating to shares of capital stock of the
Company or its affiliates. The Executive acknowledges and agrees that the Board
may in its discretion terminate at any time or modify from time to time any such
benefit plans. Additionally, the Company shall provide the Executive with
$2,000,000 of life insurance coverage on his life with his chosen
beneficiary(ies) named on the policy, for so long as this Agreement is in
effect, unless the Executive should become uninsurable at equivalent rates to
those in effect currently.

          (f)  The Executive shall be entitled to the continued use of the car
presently leased by Bactolac.

     4.   Termination.
          -----------

          (a)  The employment of the Executive under this Agreement may be
terminated by the Company immediately upon giving the Executive notice if the
Executive has been unable to discharge his essential job duties by reason of
illness or injury for either (A) a period of ninety (90) consecutive days or (B)
one hundred eighty (180) days in any twelve month period.  In the event of any
dispute regarding the existence of Executive's Disability hereunder, the matter
will be resolved by the determination of a majority of three physicians
qualified to practice medicine in New York, one to be selected by each of
Executive and the Board and the third to be selected by the two designated
physicians.  For this purpose, Executive will submit to appropriate medical
examinations.

          (b)  The employment of the Executive under this Agreement shall
terminate on the date of the Executive's death.

          (c)  The employment of the Executive under this Agreement may be
terminated by the Company for Cause.  For purposes of this Agreement, "Cause"
shall mean (i) the willful failure or refusal by the Executive to perform his
duties hereunder which has not ceased within ten (10) business days after
written demand for substantial performance is delivered to the Executive by the
Company, which demand identifies the manner in which the Company believes that
the Executive has not performed such duties; (ii) the Executive shall
intentionally engage in misconduct toward the Company which is materially
injurious to the Company or its Subsidiaries, monetarily or otherwise
(including, but not limited to, conduct in violation of the confidentiality or
solicitation agreements herein or the Non-Competition Agreement executed with
respect to the merger of Bactolac Pharmaceuticals, Inc. and the Company
effective November 17, 1999); or (iii) the conviction of the Executive of or the
entering of a plea of nolo contendre by the Executive with respect to, a felony
or a crime involving moral turpitude.

          (d)  The employment of the Executive under this Agreement shall
terminate upon receipt by the Board of a written notice of resignation signed by
the Executive or, if no

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notice is given, on the date on which the Executive voluntarily terminates his
employment relationship with the Company.

          (e)  In addition to the circumstances described in subsections (a),
(b), (c) and (d) above, the Company may terminate the Executive's employment for
any reason or no reason and with or without cause or prior notice.

          (f)  If the Executive's employment is terminated pursuant to this
Section 4 or for any other reason, the Executive shall not be entitled to any
compensation or benefits from the Company, under Section 3 of this Agreement or
otherwise, except for the following:

               (i)    base salary and vacation pay accrued, and reasonable
business expenses incurred, under Section 3 of this Agreement through the date
of such termination;

               (ii)   such benefits, if any, as may be required to be provided
by the Company under the Comprehensive Omnibus Budget Reconciliation Act
(COBRA); and

               (iii)  if the Executive's employment is terminated pursuant to
subsection (e) above, the Company shall continue to pay to the Executive the
base salary described in Section 3(a) above until the earlier of (A) twelve (12)
months following such termination or (B) the termination date set forth in
Section 1(a)(i) of this Agreement.

          (g)  Executive may terminate his employment hereunder for "Good
Reason" (as hereinafter defined).

               (i)    For purposes of this Agreement, "Good Reason" shall mean:
(A) a reduction in Executive's base salary then in effect; (B) a material
reduction in Executive's positions, duties and responsibilities from those
described in Section 1(a) of this Agreement; or (C) the failure of the Company
to obtain the assumption of this Agreement by any successor to the extent
required pursuant to Section 12(a) of this Agreement.

               (ii)   Notwithstanding the foregoing, a termination shall not be
treated as a termination for Good Reason (A) if Executive shall have
specifically consented in writing to the occurrence of the event giving rise to
the claim of termination for Good Reason or (B) unless Executive, within thirty
(30) days after receiving written notice from the Company specifying in
reasonable detail the occurrence of one of such events, shall have delivered a
written notice to the Company stating that he intends to terminate his
employment for Good Reason and specifying the factual basis for such termination
and such event, if capable of being cured, shall not have been cured within
thirty (30) days of the receipt by the Company of such notice.

               (iii)  If Executive shall terminate his employment for Good
Reason pursuant to this subsection (g), the Company shall pay Executive (or, in
the event of his death, his devisee, legatee or, if there is none, his estate) a
lump-sum amount equal to the lesser of (A) the Executive's monthly base salary
in effect on the date of termination, multiplied by a factor twelve (12), or (B)
the Executive's monthly base salary in effect on the date of termination,
multiplied by the number of months remaining until the termination date set
forth in Section

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1(a)(i) of this Agreement.  Executive will also be entitled to any vested
benefits under any employee benefit plans.

          (h)  As a condition to and in consideration of the payments under
subsections (f) and (g) hereof, the Executive shall execute a general release as
to both known and unknown matters occurring prior to the date of termination.

     5.   Executive's Representations.
          ---------------------------

          (a)  The Executive represents that he has full authority to enter into
this Agreement and that he is free to enter into this Agreement and not under
any contractual restraint which would prohibit the Executive from satisfactorily
performing his duties to the Company under this Agreement.

          (b)  The Executive hereby agrees to indemnify and hold harmless the
Company, its officers, directors and stockholders from and against any losses,
liabilities, damages or costs (including reasonable attorney's fees) arising out
of a breach, or claimed breach, of any of the representations, warranties and
covenants of the Executive set forth in this Agreement.

          (c)  The Executive acknowledges that he is free to seek advice from
independent counsel with respect to this Agreement.  The Executive has either
obtained such advice or, after carefully reviewing this Agreement, has decided
to forego such advice.  The Executive is not relying on any representation or
advice from the Company or any of its officers, directors, attorneys or other
representatives regarding this Agreement, its content or effect.

     6.   Confidentiality; Non-Solicitation.
          ---------------------------------

          (a)  Disclosure.  The Executive acknowledges that, in the performance
               ----------
of duties on behalf of the Company, the Executive shall have access to, receive
and be entrusted with confidential information, including but in no way limited
to development, marketing, organizational, financial, management,
administrative, production, distribution and sales information, data,
specifications and processes presently owned or at any time in the future
developed by, the Company or its agents or consultants, or used presently or at
any time in the future in the course of its business that is not otherwise part
of the public domain (collectively, the "Confidential Material").  All such
Confidential Material is considered secret and will be available to the
Executive in confidence.  Except in the performance of the Executive's duties on
behalf of the Company, the Executive shall not, directly or indirectly for any
reason whatsoever, disclose or use any such Confidential Material, unless such
Confidential Material ceases (through no fault of Executive's) to be
confidential because it has become part of the public domain.  All records,
files, drawings, documents, equipment and other tangible items, wherever
located, relating in any way to the Confidential Material or otherwise to the
Company's business, which the Executive prepares, uses, or encounters, shall be
and remain the Company's sole and exclusive property and shall be included in
the Confidential Material.  Upon termination of this Agreement by any means, or
whenever requested by the Company, the Executive shall promptly deliver to the
Company any and all of the Confidential Material not previously delivered to the

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Company that may be or at any previous time has been in the Executive's
possession or under the Executive's control.

          (b)  Unfair Competition.  The Executive hereby acknowledges that the
               ------------------
sale or unauthorized use or disclosure of any of the Company's Confidential
Material by Executive by any means whatsoever at any time before, during or
after the Executive's employment with the Company shall constitute "Unfair
Competition."  The Executive agrees that the Executive shall not engage in
Unfair Competition either during the time the Executive is employed by the
Company or at any time thereafter.

          (c)  Other.  In the event of the termination of the Executive's
               -----
employment for any reason, the Executive (and any corporation or entity of which
the Executive is a director, officer, employee or greater than ten percent (10%)
shareholder) shall not, without the written approval of the Company or Advanced
Nutraceuticals, Inc., directly or indirectly, for a period of two (2) years:

               (i)    solicit for employment and/or employ any employee,
consultant, agent or representative (an "employee") of the Company or any of its
affiliates or subsidiaries (or any such employee who has been "employed" by the
Company during the six (6) month period prior to the termination of this
Agreement) or induce or attempt to induce any customer, supplier, licensee or
other business relation of the Company or any of its affiliates or subsidiaries
to cease doing business with the Company or such affiliate or subsidiary or
interfere in any way with the relationship between any such customer, supplier,
licensee or business relation and the Company or any affiliate or subsidiary. In
the event of a voluntary filing of bankruptcy under Chapter VII of the U.S.
Bankruptcy Code by the Company or by Advanced Nutraceuticals, Inc., or a
petition by creditors seeking an involuntary bankruptcy proceeding against the
Company or Advanced Nutraceuticals, Inc., .and the bankruptcy court enters an
order approving the petition as properly filed, which order stays in effect for
a period of 30 consecutive days, then the two (2) year period in this Section
(c) (i) shall be reduced to a three (3) month period; or

               (ii)   make any public statement concerning the Company, any of
its affiliates or subsidiaries, or the Executive's employment unless previously
approved by the Company, except as may be required by law.

          (d)  In the event of the breach or a threatened breach by the
Executive of any of the provisions of this Section 6, the Company, in addition
and supplementary to other rights and remedies existing in its favor, may apply
to any court of law or equity of competent jurisdiction for specific performance
and/or injunctive or other relief in order to enforce or prevent any violations
of the provisions thereof (without posting a bond or other security).

          (e)  Upon termination of this Agreement, the Executive shall be deemed
to have resigned from all offices and directorships then held with the Company
or any affiliate entity.

     7.   Arbitration.  Any controversy or claim arising out of or relating to
          -----------
this Agreement or any breach hereof or the Executive's employment by the Company
or termination thereof, shall be settled by arbitration (other than injunctive
relief) by one arbitrator in accordance with

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the rules of the American Arbitration Association, and judgment upon such award
rendered by the arbitrator may be entered in any court having jurisdiction
thereof. The arbitration shall be held in New York, New York or such other place
as may be agreed upon at the time by the parties to the arbitration.

     8.   Mitigation of Damages.  In the event of any termination of the
          ---------------------
Executive's employment by the Company, the Executive shall not be required to
seek other employment to mitigate damages.

     9.   Equitable Relief.  The Executive acknowledges that the Company is
          ----------------
relying for its protection upon the existence and validity of the provisions of
this Agreement, that the services to be rendered by the Executive are of a
special, unique and extraordinary character, and that irreparable injury will
result to the Company from any violation or continuing violation of the
provisions of this Agreement for which damages may not be an adequate remedy.
Accordingly, the Executive hereby agrees that in addition to the remedies
available to the Company by law or under this Agreement, the Company shall be
entitled to obtain such equitable relief (without bond) as may be permitted by
law in a court of competent jurisdiction including, without limitation,
injunctive relief from any violation or continuing violation by the Executive of
any term or provision of this Agreement.  In the event of an action pursuant to
this Agreement, the prevailing party shall be entitled to its costs and
expenses, including reasonable attorneys' fees.

     10.  Governing Law.  This Agreement shall be governed by and construed and
          -------------
enforced in accordance with the internal substantive laws (and not the laws of
conflicts) of the State of Delaware.

     11.  Entire Agreement.  This Agreement constitutes the whole agreement of
          ----------------
the parties hereto in reference to any employment of the Executive by the
Company and in reference to any of the matters or things herein provided for or
hereinabove discussed or mentioned in reference to such employment; all prior
agreements, promises, representations and understandings relative thereto being
herein merged.  In particular, the Employment Agreement between the Company and
the Executive made effective November 17, 1999 is terminated.

     12.  Assignability.
          -------------

          (a)  In the event the Company shall merge or consolidate with any
other corporation, partnership or business entity, or all or substantially all
of the Company's business or assets shall be transferred in any manner to any
other corporation, partnership or business entity, then such successor to the
Company shall thereupon succeed to, and be subject to, all rights, interests,
duties and obligations of, and shall thereafter be deemed for all purposes
hereof to be, the "Company" under this Agreement. This Agreement shall inure to
the benefit of and be enforceable by Executive's personal or legal
representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees. If Executive should die, any amounts payable to him
hereunder shall be paid in accordance with the terms of this Agreement to
Executive's devisee, legatee, or other designee or, if there be no such
designee, to his estate.

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          (b)  This Agreement is personal in nature and the Executive shall not,
without the written consent of the Company, assign or transfer this Agreement or
any rights or obligations hereunder.

          (c)  Except as set forth in subsection (a) above, nothing expressed or
implied in this Agreement is intended or shall be construed to confer upon or
give to any person, other than the parties to this Agreement, any right, remedy
or claim under or by reason of this Agreement or of any term, covenant or
condition of this Agreement.

     13.  Amendments; Waivers.  This Agreement may be amended, modified,
          -------------------
superseded, canceled, renewed or extended and the terms or covenants of this
Agreement may be waived only by a written instrument executed by the parties to
this Agreement or, in the case of a waiver, by the party waiving compliance.
Any such written instrument must be approved by the Board or the President of
Advanced Nutraceuticals, Inc. to be effective as against the Company.  The
failure of any party at any time or times to require performance of any
provision of this Agreement shall in no manner affect the right at a later time
to enforce the same.  No waiver by any party of the breach of any term or
provision contained in this Agreement, whether by conduct or otherwise, in any
one or more instances, shall be deemed to be, or construed as, a further or
continuing waiver of any such breach, or a waiver of the breach of any other
term or covenant contained in this Agreement.

     14.  Notice.  All notices, requests or consents required or permitted under
          ------
this Agreement shall be made in writing and shall be given to the other parties
by personal delivery, overnight air courier (with receipt signature) or
facsimile transmission (with "answerback" confirmation of transmission), sent to
such parties' addresses or telecopy numbers as are set forth below such parties'
signatures to this Agreement, or such other addresses or telecopy numbers of
which the parties have given notice pursuant to this Section 14.  Each such
notice, request or consent shall be deemed effective upon the date of actual
receipt, receipt signature or confirmation of transmission, as applicable.

     15.  Severability.  Any provision of this Agreement that is prohibited or
          ------------
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

     16.  Survival.  The representations and agreements of the parties set forth
          --------
in Sections 5, 6, 7, 8 and 9 of this Agreement shall survive the expiration or
termination of this Agreement (irrespective of the reason for such expiration or
termination).

                           [SIGNATURE PAGE FOLLOWS]

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

                                  Bactolac Pharmaceutical Inc.,
                                  a Delaware corporation

                                  By:___________________________________________
                                     Name:______________________________________
                                     Title:_____________________________________

                                  Address for Notices:

                                  7 Oser Avenue
                                  Hauppauge, New York  11788-3808
                                  Facsimile:  (631) 951-4749
                                  Attention:  Jeffrey McGonegal

                                  with a copy to:

                                  Advanced Nutraceuticals, Inc.
                                  106 South University Blvd., Unit 14
                                  Denver, CO  80209
                                  Facsimile:  (303) 722-4011
                                  Attention:  Mr. Greg Pusey

                                  Patton Boggs, LLP
                                  1660 Lincoln Street, Suite 1900
                                  Denver, Colorado  80264
                                  Facsimile:  (303) 894-9239
                                  Attention:  Robert M. Bearman

                                  ______________________________________________
                                  Pailla Reddy

                                  Address for Notices

                                  7 Oser Avenue
                                  Hauppauge, New York  11788-3808
                                  Facsimile:  (631) 951-4749

                                  with a copy to:

                                  Anthony T. Scotto, Esq.
                                  585 Stewart Avenue, Suite 306
                                  Garden City, New York  11530
                                  Facsimile:  (516) 222-0265

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