Document:

f8k083111ex10i_recovery.htm

Exhibit 10.1

 

Fifth Amended and Restated Employment Agreement

 

Fifth Amended and Restated Employment Agreement (this "Agreement") dated as of August 31, 2011 by and between Recovery Energy, Inc a Nevada corporation (the "Company"), and Roger A. Parker (the “Executive”).

 

WHEREAS, the Company and the Executive have previously entered an Employment Agreement dated as of May 1, 2010 (the "Effective Date"), an Amended and Restated Employment Agreement dated as of September 20, 3010, a Second Amended and Restated Employment Agreement dated as of December 20, 2010 (together, the "Original Agreement"), a Third Amended and Restated Employment Agreement dated as of April 19, 2011, a Fourth Amended and Restated Employment Agreement dated as of June 27, 2011 and prior to that a Non-Executive Director Appointment Agreement entered into and made effective November 16, 2009, an Amended and Restated Non-Executive Director Appointment Agreement dated as of December 31, 2009 and a Second Amended and Restated Director Appointment Agreement dated as of May 1, 2010 (together, the "Previous Agreement"); and

WHEREAS, the Company and the Executive wish to amend and restate the Original Agreement; and

 

WHEREAS, the Company recognizes that the Executive's talents and abilities are unique, and are integral to the success of Recovery Energy, Inc., and thus wishes to secure the ongoing services of the Executive on the terms and conditions set forth herein;

                  NOW, THEREFORE, in consideration of the premises and the mutual covenants set forth below, the Original Agreement is hereby amended and restated as follows:

	
1.  

	
Employment:  The Company hereby agrees to employ the Executive as the Chairman of the Company's Board of Directors ("Chairman") and Chief Executive Officer and President (“CEO”) of the Company, and the Executive hereby accepts such employment, on the terms and conditions set forth below.

	
2.  

	
Compensation and Related Matters:

	
a.  

	
Base Salary. During the Executive's term of service (the "Employment Period"), the Company shall pay the Executive a base salary at the rate of not less than $240,000 per year (“Base Salary”).  The Executive’s base Salary shall be paid in approximately equal installments every two weeks.  If the Executive’s Base Salary is increased by the Company, such increased Base Salary shall then constitute the Base Salary for all purposes of this Agreement.

 

  

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b.  

	
Stock Compensation: The Executive has previously been granted an aggregate of 1,000,000 shares (the "Initial Grant") of the Company's common stock ("Common Stock") pursuant to the Previous Agreement and 4,500,000 shares (the "Second Grant" and, together with the Initial Grant, the "Granted Shares") of Common Stock pursuant to the Original Agreement. Notwithstanding the vesting provisions of the Original Agreement, subject to acceleration as provided below, 100,000 of the Granted Shares shall vest on January 1, 2011, and the remaining Granted Shares will vest on January 15, 2012, in each case so long as the Executive either (i) is employed as the Company's Chairman and CEO on such date or (ii) has died or become permanently disabled prior to such date and was employed as the Company's Chairman and CEO at the time of death or disability.

Notwithstanding any provision to the contrary, the Granted Shares shall vest upon the earlier to occur of a “Change in Control” or the termination of the Executive’s services as Chairman and CEO by the Company other than for "Cause" or by the Executive’s voluntary resignation for "Good Reason" (as each term is defined below).

For purposes of this Agreement, “Change in Control” shall mean the occurrence, subsequent to the Effective Date, of any of the following: (A) by a transaction or series of transactions, any “person” or “group” (within the meaning of Section 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of more than 35% of the combined voting power of the Company’s then outstanding securities (provided such person or group was not a beneficial owner of more than 35% of the combined voting power of the Company’s then outstanding securities as of the Effective Date); (B) as a result of any merger, consolidation, combination or sale or issuance of securities of the Company, or as a result of or in connection with a contested election of directors, the persons who were directors of the Company as of the Effective Date cease to constitute a majority of the Board of Directors of the Company (the "Board"); (C) by a transaction or series of transactions, the authority of the Board over any activities of the Company becomes subject to the consent, agreement or cooperation of a third party other than shareholders of the Company.

 

  

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For purposes of this Agreement, "Good Reason" shall mean the occurrence of any of the following without the written consent of the Executive:  (A) the assignment to the Executive of duties inconsistent with this Agreement or a change in his titles or authority; (B) any failure by the Company to comply with Section 2 or Section 3 hereof in any material way; (C) the requirement of the Executive to relocate to locations other than those provided in Section 6 hereof; or (D) any material breach of this Agreement by the Company.

For purposes of this Agreement, “Cause” shall mean (A) the Executive’s conviction by a court of competent jurisdiction as to which no further appeal can be taken of a felony (other than a violation based on operation of a vehicle) or entering the plea of nolo contendere to such crime by the Executive; (B) the Executive’s commission of a crime involving fraud or intentional dishonesty, which results in the Executive’s substantial personal enrichment and material adverse effect to the Company; or (C) the Executive becoming subject to any securities related sanctions related to the Company other than those based on an act of the Company itself for which the Executive is charged solely as a result of his position with the Company.

	
c.  

	
Annual Bonus: For each full fiscal year of the Company that begins and ends during the Employment Period, and for the portion of the fiscal year of the Company that begins in 2010 ("Fiscal Year 2010"), the Executive shall be eligible to earn an annual cash bonus in such amount as shall be determined by the Compensation Committee of the Board (the "Compensation Committee") (the "Annual Bonus") based on the achievement by the Company of performance goals established by the Compensation Committee for each such fiscal year (or portion of Fiscal Year 2010), which may include targets related to the earnings before interest, taxes, depreciation and amortization ("EBITDA"), hydrocarbon production level, hydrocarbon reserve amounts of the Company; provided, that the Annual Bonus shall be targeted no less than $100,000 (with Board approval). The Compensation Committee shall establish objective criteria to be used to determine the extent to which performance goals have been satisfied.

	
d.  

	
Over Riding Royalty Interests: The Executive has received as compensation a 1% overriding royalty interest (“ORRI”) on all wells and leases acquired by the Company prior to the date hereof other than the Church Field as contemplated by the Previous Agreement and the Original Agreement.  The Executive shall not be entitled to receive additional ORRIs under this Agreement.

 

	
e.  

	
Vacation: The Executive shall be entitled to four weeks of vacation per fiscal year. Vacation not taken during the applicable fiscal year shall be carried over to successive fiscal years.

 

  

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f.  

	
Expenses: The Executive shall receive from the Company a monthly, non-accountable, expense reimbursement as of the first of each month of $7,500 for all expenses related to Company business, including, but not limited to travel, marketing and communication.  If in any month the reasonable expenses the Executive incurs on the Company’s behalf exceed the amounts advanced, the Company shall, within 30 days after receiving documentation of the reimbursable expenses incurred in that month, reimburse the Executive for the amount in excess of $7,500 that he incurred in such month.

	
g.  

	
Welfare, Pension and Incentive Benefit Plans: During the Employment Period and for a period of 12 months thereafter in the event that the Employment Period is terminated other than by the Executive's voluntary resignation or for Cause, the Executive (and his eligible spouse and dependents) shall be entitled to participate in all the welfare benefit plans and programs maintained by the Company from time to time for the benefit of its senior executives including, without limitation, all medical, hospitalization, dental, disability, accidental death and dismemberment and travel accident insurance plans and programs.  In addition, during the Employment Period, the Executive shall be eligible to participate in all pension, retirement, savings and other employee benefit plans and programs maintained from time to time by the Company for the benefit of its senior executives. The Company will provide the Executive with family health insurance coverage including medical, dental, and vision coverage, comparable to the coverage currently held by the Executive.

	
h.  

	
Professional Development.  The Company will reimburse the Executive for education and professional development expenses related to courses or programs selected by the Executive in the energy sector up to $25,000 per calendar year. The Executive may take such courses during normal business hours and will not be required to utilize vacation time.

	
i.  

	
Registration of Shares.  Upon request of the Executive from time to time, the Company will promptly file a registration statement with the Securities and Exchange Commission covering the Granted Shares, provided, that each such registration statement must cover a minimum of 100,000 shares of Common Stock.  The Company may include shares of Common Stock owned by other persons or to be issued by the Company  in each such registration statement.

 

  

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3.  

	
Dedication of Time/Conflict of Interests:  During the Employment Period, the Executive shall serve as the Chairman and CEO of the Company, with such duties, authority and responsibilities as are normally associated with and appropriate for such a position. The Executive shall report directly to the Board.

 

The Company acknowledges that the Executive is currently active in a number of activities related to the energy industry and will remain active in activities not associated with the Company.  In addition, the Executive shall be entitled to undertake such outside activities (e.g., charitable, educational, personal interests, board of directors membership, and so forth) as do not unreasonably or materially interfere with the performance of his duties hereunder.

	
4.  

	
Responsibilities: As the Chairman and CEO, the Executive will be responsible for developing and implementing the Company’s business plan, locating and reviewing prospective acquisition targets, negotiating any and all required contracts and agreements, overseeing the development plan of all acquired properties, executing any and all documents required to implement the Company’s business plan, and legally binding the Company to any agreement or contract.  As such, the Executive will have the authority to reject or modify any acquisition or development plan.

	
5.  

	
At-Will Employment: The Executive’s employment with the Company is on an at-will basis.  If terminated for any reason other than Cause or if the Executive terminates this agreement for Good Reason, the Company will be responsible to provide the Executive a minimum of one year's Base Salary as severance payable immediately upon termination as well as any reimbursement of all business expenses incurred but not yet reimbursed.  The Executive may terminate his employment for Good Reason after giving the Company detailed written notice thereof, if the Company shall have failed to cure the event or circumstance constituting Good Reason within five business days after receiving such notice. Furthermore, the Company will release any and all claims to any vested Common Stock, ORRI or other compensation provided through the date of termination or to which the Executive is entitled at the date of termination. The Executive's right to terminate his employment hereunder for Good Reason shall not be affected by his incapacity due to physical or mental illness. The Executive's continued employment shall not constitute consent to, or a waiver of rights with respect to, any act or failure to act constituting Good Reason hereunder.

The provisions of Section 8 will continue in full force for a minimum period of five years after termination.

	
6.  

	
Location: You will be based in Denver, Colorado.  During the Employment Period, the Company shall provide the Executive with an office.  Upon mutual agreement of the Executive and the Company, offices maybe relocated to a different location.

 

  

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7.  

	
Representations and Warranties: Company represents and warrants to Executive that this Agreement has been duly authorized, executed and delivered by the Company and, assuming the due execution by the Executive, constitutes a legal, valid and binding agreement of the Company, enforceable against the Company in accordance with its terms.

 

	
8.  

	
Indemnity: The Company agrees that if the Executive is made a party or is threatened to be made a party to any action, suit or proceeding, whether civil, criminal, administrative or investigative (a "Proceeding") by reason of the fact that the Executive is or was a trustee, director or officer of the Company or any predecessor to the Company or any of their affiliates or is or was serving at the request of the Company, any predecessor to the Company or any of their affiliates as a trustee, director, officer, member, employee or agent of another corporation or a partnership, joint venture, limited liability company, trust or other enterprise, including, without limitation, service with respect to employee benefit plans, whether or not the basis of such Proceeding is alleged action in an official capacity as a trustee, director, officer, member, employee or agent while serving as a trustee, director, officer, member, employee or agent, the Executive shall be indemnified and held harmless by the Company to the fullest extent authorized by Nevada law, as the same exists or may hereafter be amended, against all Expenses incurred or suffered by the Executive in connection therewith, and such indemnification shall continue as to the Executive even if the Executive has ceased to be an officer, director, trustee or agent, or is no longer employed by the Company and shall inure to the benefit of his heirs, executors and administrators.

	
a.  

	
Expenses. As used in Section 8, the term "Expenses" shall include, without limitation, damages, losses, judgments, liabilities, fines, penalties, excise taxes, settlements, and costs, attorneys' fees, accountants' fees, and disbursements and costs of attachment or similar bonds, investigations, and any expenses of establishing a right to indemnification under this Agreement.

	
b.  

	
Enforcement. If a claim or request under this Section 8 is not paid by the Company or on its behalf, within 30 days after a written claim or request has been received by the Company, the Executive may at any time thereafter bring suit against the Company to recover the unpaid amount of the claim or request and if successful in whole or in part, the Executive shall be entitled to be paid also the expenses of prosecuting such suit. All obligations for indemnification hereunder shall be subject to, and paid in accordance with, applicable Nevada law.

 

  

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c.  

	
Advances of Expenses. Expenses incurred by the Executive in connection with any Proceeding shall be paid by the Company in advance upon request of the Executive that the Company pay such Expenses, but only in the event that the Executive shall have delivered in writing to the Company (i) an undertaking to reimburse the Company for Expenses with respect to which the Executive is not entitled to indemnification and (ii) a statement of his good faith belief that the standard of conduct necessary for indemnification by the Company has been met.

	
d.  

	
Insurance.  The Company will maintain a Director’s and Officer’s Insurance Policy naming the Executive as a covered party in an amount deemed mutually sufficient to the Company and the Executive.

	
9.  

	
Survival of Certain Provisions: The representations, warranties and covenants and indemnity provisions contained in Sections 2, 7 and 8 of this Agreement and the Company’s obligation to pay the Executive any compensation earned pursuant hereto shall remain operative and in full force and effect regardless of any completion or termination of this Agreement and shall be binding upon, and shall inure to the benefit of, any successors, assigns, heirs and personal representatives of the Company, the indemnified parties and any such person.

	
10.  

	
Notices: Notice given pursuant to any of the provisions of this Agreement shall be in writing and shall be mailed or delivered (a) if to the Company, at its offices at 1515 Wynkoop, Suite 200, Denver CO 80202, and (b) if to the Executive, at his offices at 1515 Wynkoop, Suite 200, Denver CO 80202.

	
11.  

	
Counterparts: This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument.

	
12.  

	
Third Party Beneficiaries: This Agreement has been and is made solely for the benefit of the parties hereto, and their respective successors and assigns, and no other person shall acquire or have any right under or by virtue of this Agreement.

	
13.  

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

 

  

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14.  

	
Dispute Resolution: If a dispute arises out of or relating to this Agreement or the breach of this Agreement, and if the dispute cannot be settled through direct discussions, the parties agree to first endeavor to settle the dispute in an amicable manner by mediation. Mediation shall consist of an informal, nonbinding conference or conferences between the parties and the mediator jointly, and at the discretion of the mediator, then in separate caucuses in which the mediator will seek to guide the parties to a resolution of the case. The parties shall attempt to select a mutually acceptable mediator. If the parties cannot agree upon a mediator, the parties shall seek assistance in the appointment of a mediator from a District Judge in the State of Colorado.

	
a.  

	
Legal Fees and Expenses: If any contest or dispute shall arise between the Company and the Executive regarding any provision of this Agreement, the Company shall reimburse the Executive for all legal fees and expenses incurred by the Executive in connection with such contest or dispute unless an unlawful act has preceded, but only if the Executive prevails to a substantial extent with respect to the Executive's claims brought and pursued in connection with such contest or dispute. Such reimbursement shall be made as soon as practicable following the resolution of such contest or dispute (whether or not appealed) to the extent the Company receives reasonable written evidence of such fees and expenses.

	
15.  

	
Choice of Law, Jurisdiction and Venue: This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of Colorado. Any and all actions, suits, or judicial proceedings upon any claim arising from or relating to this Agreement shall be instituted and maintained in the State of Colorado. Each party waives the right to change of venue, or to file any action, suit or judicial proceeding in federal court. Notwithstanding this provision, if it is judicially determined that either party may file an action, suit or judicial proceeding in federal court, such action, suit or judicial proceeding shall be in the Federal District Court for the District of Colorado.

	
16.  

	
Miscellaneous: No provisions of this Agreement may be amended, modified, or waived unless such amendment or modification is agreed to in writing signed by the Executive and by a duly authorized officer or a director of the Company, and such waiver is set forth in writing and signed by the party to be charged. No waiver by either party hereto at any time of any breach by the other party hereto of any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not set forth expressly in this Agreement. The respective rights and obligations of the parties hereunder of this Agreement shall survive the Executive's termination of employment and the termination of this Agreement to the extent necessary for the intended preservation of such rights and obligations.

 

  

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17.  

	
Section Headings: The section headings in this Agreement are for convenience of reference only, and they form no part of this Agreement and shall not affect its interpretation.

The parties’ authorized representatives have executed this Agreement as of the Effective Date, as defined above.

 

	 Roger A. Parker  	 Recovery Energy, Inc.
	 	 
	 	 
	 /s/ Roger A. Parker	 By:  /s/ James J. Miller   
	 	 Name: James J. Miller
	 	 Title:   Director, Chairman of Compensation Committee

 

 

9July 1, 2010

 

PERSONAL AND CONFIDENTIAL

 

Organic Plant Health, LLC

P.O. Box 2070

Indian Trail, North Carolina 28079

Attn: Billy Styles - President

 

Dear Mr. Styles:

 

This service agreement ("Agreement")
confirms the terms and conditions of the engagement of Greentree Financial Group, Inc. ("Greentree") by
Organic Plant Health, LLC (the "Company") to render certain professional services to the Company in connection
with the Company's strategic and financial plans in the United States capital markets / pink sheets market.

 

1.    
Services. Greentree agrees to perform the following services:

 

(a)  
Advise and assist the Company with redesigning its capital structure, consistent
with United States GAAP and usual and customary business practices for companies similar to the Company;

 

(b) 
Advise and assist the Company with its financial reporting systems,
including its projected financial statements, to a format that is consistent with United States
GAAP (Generally Accepted Accounting Principles);

 

(c)  
Assist the Company in evaluating a prospective merger candidate with Due Diligence, including
obtaining its updated financial statements, shareholder list, official copies of its stock registration records;

 

(d) 
Assist with the preparation of closing documents, including its compliance filings with the
Securities and Exchange Commission, pink sheets and FINRA; review and advise the Company on all documents
and accounting systems relating to its finances and transactions, with the purpose of bringing such documents and systems into
compliance with United States GAAP;

 

(e)  
Provide necessary professional services and support as an international liaison for Company
to third-party service providers, including coordination amongst the Company and their related attorneys and CPAs;

 

(f)  
Provide management training to the senior management of the Company, pertaining to usual and
customary practices for U.S. companies with business plans similar to the Company’s business plan;

 

(g) 
Advise and train the company on compliance filings with the pink sheets and uploading to the
web site the same;

 

(h) 
Perform such other services as the Company and Greentree shall mutually agree to in writing.

 

2.Fees. The Company agrees to pay
Greentree for its services a professional service fee of 4,900,000 shares of common stock of the proposed public company ("Service
Fee") on or before closing of a reverse merger or similar “going public” transaction. The parties specifically
agree that in the event the Company does not become a public company, the full Service Fee shall terminate.

 

Note:

 

(a)  
Auditing and quarterly auditor review fees are not included in this agreement and should be
paid directly by the Company to their independent auditors.

 

 

(b) 
The Company agrees to act reasonably and in good faith to expediently enter into and move
forward with a “going public” transaction in a timely manner.

 

(c)  
In addition to any fees that may be payable to Greentree under this letter, the Company agrees
to reimburse Greentree, upon request made from time to time, for its reasonable out-of-pocket expenses incurred in connection with
Greentree’s activities under this letter, including the reasonable fees and disbursements of its legal counsel.

 

3.    
Term. The term of this Agreement shall commence on signing
of this Agreement and end one year later (the "Term"). This Agreement may be
renewed upon mutual written agreement of the parties hereto. This agreement may be terminated by the Company prior to its expiration
or services being rendered with 45 days prior written notice to Greentree. Any obligation pursuant to this Paragraph 3, and pursuant
to Paragraphs 2 (payment of fees), 4 (indemnification), 5 (other matters), 6 (governing law) and 9 (miscellaneous) hereof, shall
survive the termination or expiration of this Agreement. As stated in the foregoing sentence, the parties specifically agree that
in the event the Company terminates this Agreement and continues to become a public company, the full Service Fee shall become
immediately due and payable.

 

4.      
Indemnification. In addition to the payment of fees and reimbursement of fees and expenses
provided for above, the Company agrees to indemnify Greentree and its affiliates with regard to the matters contemplated herein,
as set forth in Exhibit A, attached hereto, which is incorporated by reference as if fully set forth herein. 

 

5.Matters
Relating to Engagement. The Company acknowledges that Greentree has been retained solely to provide the services set forth
in this Agreement. In rendering such services, Greentree shall act as an independent contractor, and any duties of Greentree arising
out of its engagement hereunder shall be owed solely to the Company. The Company further acknowledges that Greentree may perform
certain of the services described herein through one or more of its affiliates.

 

The Company acknowledges
that Greentree is a consulting firm that is engaged in providing consulting services. The Company acknowledges and agrees that
in connection with the performance of Greentree's services hereunder (or any other services) that neither Greentree nor any of
its employees will be providing the Company with legal, tax or accounting advice or guidance (and no advice or guidance provided
by Greentree or its employees to the Company should be construed as such) and that neither Greentree nor its employees hold itself
or themselves out to be advisors as to legal, tax, accounting or regulatory matters in any jurisdiction. Greentree may retain attorneys
and accountants that are for Greentree’s benefit, and Greentree may recommend a particular law firm or accounting firm to
be engaged by the Company and may pay the legal expenses or accounting expenses associated with that referral on behalf of the
Company, after full disclosure to the Company and the Company’s consent that Greentree make such payment on its behalf. However,
Greentree makes no recommendation as to the outcome of such referrals. The Company shall consult with its own legal, tax, accounting
and other advisors concerning all matters and advice rendered by Greentree to the Company, and the Company shall be responsible
for making its own independent investigation and appraisal of the risks, benefits and suitability of the advice and guidance given
by Greentree to the Company. Neither Greentree nor its employees shall have any responsibility or liability whatsoever to the Company
or its affiliates with respect thereto.

 

The Company recognizes
and confirms that in performing its duties pursuant to this Agreement, Greentree will be using and relying on data, material, and
other information furnished by the Company, a third party provider, or their respective employees and representatives (“the
Information”). The Company will cooperate with Greentree and will furnish Greentree with all Information concerning the Company
and any financial information or organizational or transactional information which Greentree deems appropriate, and Company will
provide Greentree with access to the Company's officers, directors, employees, independent accountants and legal counsel for the
purpose of performing Greentree's obligations pursuant to this Agreement. The Company hereby agrees and represents that all Information
furnished to Greentree pursuant to this Agreement shall be accurate and complete in all material respects at the time provided,
and that, if the Information becomes materially inaccurate, incomplete or misleading during the term of Greentree's engagement
hereunder, the Company shall promptly advise Greentree in writing. Accordingly, Greentree assumes no responsibility for the accuracy
and completeness of the Information. In rendering its services, Greentree will be using and relying upon the Information without
independent verification evaluation thereof.

 

  

6.Governing
Law and Consent to Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the
State of Florida, without regard to conflict of laws provisions. All disputes arising out of or in connection with this agreement,
or in respect of any legal relationship associated with or derived from this agreement, shall only be heard in any competent court
residing in Broward County Florida. Company agrees that a final judgment in any such action or proceeding shall be conclusive and
may be enforced in other jurisdictions by suit on the judgment or in any manner provided by law. The Company further waives any
objection to venue in any such action or proceeding on the basis of inconvenient forum. The Company agrees that any action on or
proceeding brought against the Greentree shall only be brought in such courts.

 

7.No Brokers. The Company represents
and warrants to Greentree that there are no brokers, representatives or other persons which have an interest in compensation due
to Greentree from any services contemplated herein.

 

8. Authorization. The Company and Greentree
represent and warrant that each has all requisite power and authority, and all necessary authorizations, to enter into and carry
out the terms and provisions of this Agreement and the execution, delivery and performance of this Agreement does not breach or
conflict with any agreement, document or instrument (including contracts, wills, agreements, records and wire receipts, etc.) to
which it is a party or bound.

 

9.Miscellaneous. This Agreement
constitutes the entire understanding and agreement between the Company and Greentree with respect to the subject matter hereof
and supersedes all prior understandings or agreements between the parties with respect thereto, whether oral or written, express
or implied. Any amendments or modifications must be executed in writing by both parties. This Agreement and all rights, liabilities
and obligations hereunder shall be binding upon and inure to the benefit of each party’s successors but may not be assigned
without the prior written approval of the other party. If any provision of this Agreement shall be held or made invalid by a statute,
rule, regulation, decision of a tribunal or otherwise, the remainder of this Agreement shall not be affected thereby and, to this
extent, the provisions of this Agreement shall be deemed to be severable. This Agreement may be executed in any number of counterparts,
each of which shall be deemed to be an original, but such counterparts shall, together, constitute only one instrument. The descriptive
headings of the Paragraphs of this Agreement are inserted for convenience only, do not constitute a part of this Agreement and
shall not affect in any way the meaning or interpretation of this Agreement.

 

Please confirm that the
foregoing correctly sets forth our agreement by signing below in the space provided and returning this Agreement to Greentree for
execution, which shall constitute a binding agreement as of the date first above written.

 

Thank you. We look forward
to a mutually rewarding relationship.

 

 

 

 

GREENTREE FINANCIAL GROUP, INC.

 

 

 

 

By:______________________________

Name:R. Chris Cottone

Title:Vice-President

 

 

AGREED TO AND ACCEPTED

DATE: JULY 1, 2010

 

 

ORGANIC PLANT HEALTH, LLC                     

 

 

 

 

By:______________________________

Name:Billy Styles

Title:President

 

 

AGREED TO AND ACCEPTED

DATE: JULY 1, 2010

 

     

     

    

EXHIBIT A: INDEMNIFICATION

 

The Company agrees to indemnify
Greentree, its employees, directors, officers, agents, affiliates, and each person, if any, who controls it within the meaning
of either Section 20 of the Securities Exchange Act of 1934 or Section 15 of the Securities Act of 1933 (each such person, including
Greentree is referred to as "Indemnified Party") from and against any losses, claims, damages and liabilities, joint
or several (including all legal or other expenses reasonably incurred by an Indemnified Party in connection with the preparation
for or defense of any threatened or pending claim, action or proceeding, whether or not resulting in any liability) ("Damages"),
to which such Indemnified Party, in connection with providing its services or arising out of its engagement hereunder, may become
subject under any applicable Federal or state law or otherwise, including but not limited to liability or loss (i) caused by or
arising out of an untrue statement or an alleged untrue statement of a material fact or omission or alleged omission to state a
material fact necessary in order to make a statement not misleading in light of the circumstances under which it was made, (ii)
caused by or arising out of any act or failure to act, or (iii) arising out of Greentree's engagement or the rendering by any Indemnified
Party of its services under this Agreement; provided, however, that the Company will not be liable to the Indemnified Party hereunder
to the extent that any Damages are found in a final non-appealable judgment by a court of competent jurisdiction to have resulted
from the gross negligence or willful misconduct of the Indemnified Party seeking indemnification hereunder.

 

These indemnification provisions
shall be in addition to any liability which the Company may otherwise have to any Indemnified Party.

 

If for any reason, other
than a final non-appealable judgment finding an Indemnified Party liable for Damages for its gross negligence or willful misconduct
the foregoing indemnity is unavailable to an Indemnified Party or insufficient to hold an Indemnified Party harmless, then the
Company shall contribute to the amount paid or payable by an Indemnified Party as a result of such Damages in such proportion as
is appropriate to reflect not only the relative benefits received by the Company and its shareholders on the one hand and the Indemnified
Party on the other, but also the relative fault of the Company and the Indemnified Party as well as any relevant equitable considerations.

 

Promptly after receipt
by the Indemnified Party of notice of any claim or of the commencement of any action in respect of which indemnity may be sought,
the Indemnified Party will notify the Company in writing of the receipt or commencement thereof and the Company shall have the
right to assume the defense of such claim or action (including the employment of counsel reasonably satisfactory to the Indemnified
Party and the payment of fees and expenses of such counsel), provided that the Indemnified Party shall have the right to control
its defense if, in the opinion of its counsel, the Indemnified Party's defense is unique or separate to it as the case may be,
as opposed to a defense pertaining to the Company. In any event, the Indemnified Party shall have the right to retain counsel reasonably
satisfactory to the Company, at the Company's sole expense, to represent it in any claim or action in respect of which indemnity
may be sought and agrees to cooperate with the Company and the Company's counsel in the defense of such claim or action. In the
event that the Company does not promptly assume the defense of a claim or action, the Indemnified Party shall have the right to
employ counsel to defend such claim or action. Any obligation pursuant to this Annex shall survive the termination or expiration
of the Agreement.

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