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Unassociated Document

    EXHIBIT
      10.22

     

    GENERAL
      BUSINESS SECURITY AGREEMENT

     

    
      	 	
              1.
                SECURITY INTEREST

            	
               Dated:
                December 18, 2007

            

    

     

    In
      consideration of any financial accommodation at any time granted by Advanced
      Biotherapy, Inc., a Delaware corporation (“Lender”), to Organic Farm Marketing,
      LLC, a Wisconsin limited liability company (“Debtor”), Debtor hereby grants
      Lender a security interest in all equipment, fixtures, inventory, documents,
      general intangibles, accounts, deposit accounts, contract rights, chattel paper,
      patents, trademarks and copyrights (and the good will associated with and
      registrations and licenses of any of them), instruments, letter of credit rights
      and investment property, now owned or hereafter acquired by Debtor, and all
      additions and accessions to, all spare and repair parts, special tools,
      equipment and replacements for software used in, all returned or repossessed
      goods, together with all proceeds, supporting obligations and products of the
      foregoing (“Collateral”), wherever located, to secure all debts, obligations and
      liabilities to Lender arising out of credit previously granted, credit
      contemporaneously granted and credit granted in the future by Lender to Debtor
      including, without limitation, obligations of Debtor to Lender pursuant to
      the
      Secured Promissory Note and the Convertible Note issued by Debtor in favor
      of
      Lender, as well as the Investment Agreement and the Reimbursement Agreement,
      all
      entered into concurrently herewith (collectively, the
“Obligations”).

     

    2.
      DEBTOR’S REPRESENTATIONS AND WARRANTIES

     

    Debtor
      represents and warrants to Lender and agrees that while any of the Obligations
      are unpaid:

     

    (a) Ownership
      and Use.
      Debtor
      owns the Collateral free of all encumbrances and security interests (except
      Lender’s security interest and the security interest of Richard P.
      Kiphart). Chattel paper constituting Collateral evidences a perfected security
      interest in the goods (including software used in the goods) covered by it
      free
      from all other encumbrances and security interests, and no financing statement
      is on file or control agreement in existence (other than Lender’s and the
      security interest of Richard P. Kiphart) covering the Collateral or any of
      it. Debtor, acting alone, may grant a security interest in the Collateral and
      agree to the terms of this General Business Security Agreement (“Agreement”).
      The Collateral is used or bought for use primarily for business
      purposes.

     

    (b) Sale
      of Goods or Services Rendered.
      Each
      account and chattel paper constituting Collateral as of this date arose from
      the
      performance of services, by Debtor or from a bona fide sale or lease of goods,
      which have been delivered or shipped to the account debtor and for which Debtor
      has genuine invoices, shipping documents or receipts.

     

    (c) Enforceability.
      Each
      account, contract right and chattel paper constituting Collateral as of this
      date is genuine and enforceable against the account debtor according to its
      terms. It and the transaction out of which it arose comply with all applicable
      laws and regulations. The amount represented by Debtor to Lender as owing by
      each account debtor is the amount actually owing and is not subject to setoff,
      credit, allowance or adjustment except discount for prompt payment, nor has
      any
      account debtor returned the goods or disputed liability.

    
      
         

      

      
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    (d) Due
      Date.
      There
      has been no default as of the date of this Agreement according to the terms
      of
      any chattel paper or account constituting Collateral and no step has been taken
      to foreclose the security interest it evidences or otherwise enforce its
      payment.

     

    (e) Financial
      Condition of Account Debtor.
      As of
      this date Debtor has no notice or knowledge of anything which might impair
      the
      credit standing of any account debtor and Debtor promptly will advise Lender
      upon receipt of any such notice or knowledge affecting Collateral.

     

    (f) Valid
      Organization.
      Debtor
      is duly organized, validly existing and in good standing under the laws of
      the
      state of Wisconsin and is authorized to do business in Wisconsin.

     

    (g) Other
      Agreements.
      Debtor
      is not in default under any agreement for the payment of money.

     

    (h) Authority
      to Contract.
      The
      execution and delivery of this Agreement and any instruments evidencing
      Obligations will not violate or constitute a breach of Debtor’s articles of
      organization or operating agreement or any other agreement or restriction to
      which Debtor is a party or is subject.

     

    (i) Accuracy
      of Information.
      All
      information, certificates or statements given to Lender pursuant to this
      Agreement shall be true and complete when given.

     

    (j) Name
      and Address.
      Debtor’s exact legal name is Organic Farm Marketing, LLC. The address of
      Debtor’s place of business, or if Debtor has more than one place of business,
      then the address of Debtor’s chief executive office, is 302 West Stanley Street,
      Thorp, Wisconsin 54771.

     

    (k) Location.
      The
      address where the Collateral will be kept is 302 West Stanley Street, Thorp,
      Wisconsin 54771. Such location shall not be changed without prior written
      consent of Lender, but the parties intend that the Collateral, wherever located,
      is covered by this Agreement.

     

    (l) Environmental
      Laws.
      (i) No substance has been, is or will be present, used, stored, deposited,
      treated, recycled or disposed of on, under, in or about any real estate now
      or
      at any time owned or occupied by Debtor (“Property”) during the period of
      Debtor’s ownership or use of the Property in a form, quantity or manner which if
      known to be present on, under, in or about the Property, would require clean-up,
      removal or some other remedial action (“Hazardous Substance”) under any federal,
      state or local laws, regulations, ordinances, codes or rules (“Environmental
      Laws”), (ii) Debtor has no knowledge, after due inquiry, of any prior use or
      existence of any Hazardous Substance on the Property by any prior owner of
      or
      person using the Property, (iii) without limiting the generality of the
      foregoing, Debtor has no knowledge, after due inquiry, that the Property
      contains asbestos, polychlorinated biphenyl components (PCBs) or underground
      storage tanks, (iv) there are no conditions existing currently or likely to
      exist during the term of this Agreement which would subject Debtor to any
      damages, penalties, injunctive relief or clean-up costs in any governmental
      or
      regulatory action or third-party claim relating to any Hazardous Substance,
      (v)
      Debtor is not subject to any court or administrative proceeding, judgment,
      decree, order or citation relating to any Hazardous Substance, and (vi) Debtor
      in the past has been, at the present is, and in the future will, remain in
      compliance with all Environmental Laws. Debtor shall indemnify and hold harmless
      Lender, its directors, officers, employees and agents from all loss, cost
      (including reasonable attorneys’ fees and legal expenses), liability and damage
      whatsoever directly or indirectly resulting from, arising out of, or based
      upon
      (1) the presence, use, storage, deposit, treatment, recycling or disposal,
      at
      any time, of any Hazardous Substance on, under, in or about the Property, or
      the
      transportation of any Hazardous Substance to or from the Property, (2) the
      violation or alleged violation of any Environmental Law, permit, judgment or
      license relating to the presence, use, storage, deposit, treatment, recycling
      or
      disposal of any Hazardous Substance on, under, in or about the Property, or
      the
      transportation of any Hazardous Substance to or from the Property, or (3) the
      imposition of any governmental lien for the recovery of environmental clean-up
      costs expended under any Environmental Law. Debtor shall immediately notify
      Lender in writing of any governmental or regulatory action or third-party claim
      instituted or threatened in connection with any Hazardous Substance described
      above on, in, under or about the Property.

     

    
      
         

      

      
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    (m) Employees.
      There
      are no unpaid wages due employees of Debtor and there are no outstanding liens
      against assets of Debtor for unpaid wages due employees of Debtor.

     

    (n) Fixtures.
      If any
      of the Collateral is affixed to real estate, the legal description of the real
      estate set forth in each UCC Financing Statement signed or authorized by Debtor
      is true and correct.

     

    3.
      SALE
      AND COLLECTIONS

     

    (a) State
      of Inventory.
      So long
      as no default exists under any of the Obligations or this Agreement, Debtor
      may
      (a) sell inventory in the ordinary course of Debtor’s business for cash or on
      terms customary in the trade, at prices not less than any minimum sale price
      shown on instruments evidencing Obligations and describing inventory, or (b)
      lease or license inventory on terms customary in the trade.

     

    (b) Verification
      and Notification.
      Lender
      may verify Collateral in any manner, and Debtor shall assist Lender in so doing.
      Upon default, Lender may at any time and Debtor shall, upon request of Lender,
      notify the account debtors or other persons obligated on the Collateral to
      make
      payment directly to Lender and Lender may enforce collection of, settle,
      compromise, extend or renew the indebtedness of such account debtors or other
      persons obligated on the Collateral. Until account debtors or other persons
      obligated on the Collateral are so notified, Debtor, as agent of Lender, shall
      make collections and receive payments on the Collateral.

     

    (c) Deposit
      with Lender.
      At any
      time Lender may require that all proceeds of Collateral received by Debtor
      shall
      be held by Debtor upon an express trust for Lender, shall not be commingled
      with
      any other funds or property of Debtor and shall be turned over to Lender in
      precisely the form received (but endorsed by Debtor if necessary for collection)
      not later than the business day following the day of their receipt. All proceeds
      of Collateral received by Lender directly or from Debtor shall be applied
      against the Obligations in such order and at such times as Lender shall
      determine.

     

    
      
         

      

      
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    4.
      DEBTOR’S COVENANTS

     

    (a) Maintenance
      of Collateral.
      Debtor
      shall: maintain the Collateral in good condition and repair and not permit
      its
      value to be impaired; keep it free from all liens, encumbrances and security
      interests (other than Lender’s security interest and the security interest of
      Richard P. Kiphart); defend it against all claims and legal proceedings by
      persons other than Lender; pay and discharge when due all taxes, license fees,
      levies and other charges upon it; not sell, lease, license or otherwise transfer
      or dispose of it or permit it to become a fixture or an accession to other
      goods, except for sales, leases or licenses of inventory as provided in this
      Agreement; not permit it to be used in violation of any applicable law,
      regulation or policy of insurance: and, as to Collateral consisting of
      instruments, chattel paper and letter of credit rights, preserve rights in
      it
      against prior parties. Loss of or damage to the Collateral shall not affect
      the
      liabilities of Debtor under this Agreement, the Obligations or other rights
      of
      Lender with respect to the Collateral.

     

    (b) Insurance.
      Debtor
      shall keep the Collateral and Lender’s interest in it insured under policies
      with such provisions, for such amounts and by such insurers as shall be
      satisfactory to Lender from time to time, and shall furnish evidence of such
      insurance satisfactory to Lender. Subject to Lender’s satisfaction, Debtor is
      free to select the insurance agent or insurer through which the insurance is
      obtained. Debtor assigns (and directs any insurer to pay) to Lender the proceeds
      of all such insurance and any premium refund, and authorizes Lender to endorse
      in the name of Debtor any instruments for such proceeds or refunds and; at
      the
      option of Lender, to apply such proceeds and refunds to any unpaid balance
      of
      the Obligations, whether or not due, and/or to restoration of the Collateral,
      returning any excess to Debtor. Each insurance policy shall contain a standard
      lender’s loss payable endorsement in favor of Lender, and shall provide that the
      policy shall not be cancelled, and the coverage shall not be reduced, without
      at
      least 10 days’ prior written notice by the insurer to Lender. Lender is
      authorized, in the name of Debtor or otherwise, to make, adjust and/or settle
      claims under, any credit insurance financed by, Lender or any insurance on
      the
      Collateral, or cancel the same after the occurrence of an event of default.
      If
      Debtor fails to keep any required insurance on the Collateral, Lender may
      purchase such insurance for Debtor, such insurance may be acquired by Lender
      solely to protect the interest of Lender (and will not cover Debtor’s equity in
      the Collateral), and Debtor’s obligation to repay Lender shall be in accordance
      with this Agreement.

     

    (c) Maintenance
      of Security Interest.
      Debtor
      shall pay all expenses and upon request, take any action reasonably deemed
      advisable by Lender to preserve the Collateral or to establish, evidence,
      determine and maintain priority of, perfect, continue perfected, terminate
      and/or enforce Lender’s interest in it or rights under this Agreement. Debtor
      authorizes Lender to file Uniform Commercial Code financing statements
      describing the Collateral (including describing the Collateral as “all assets,”
“all personal property” or with words of similar effect) and amendments and
      correction statements to such financing statements and ratifies any such
      financing statement or amendment filed prior to the date of this Agreement.
      Debtor will cooperate with Lender in obtaining control of Collateral or other
      security for the Obligations for which control may be required to perfect
      Lender’s security interest under applicable law. If the Collateral is in
      possession of a third party, Debtor will join with Lender at its request in
      notifying the third party of Lender’s security interest and obtaining an
      acknowledgment from the third party that it is holding the Collateral for the
      benefit of Lender.

     

    
      
         

      

      
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    (d) Taxes
      and Other Charges.
      Debtor
      shall pay and discharge all lawful taxes, assessments and government charges
      upon Debtor or against its properties prior to the date on which penalties
      attach, unless and to the extent only that such taxes, assessments and charges
      are contested in good faith and by appropriate proceedings by
      Debtor.

     

    (e) Employees.
      Debtor
      shall pay all wages when due to employees of Debtor and shall not permit any
      lien to exist against the assets of Debtor for unpaid wages due employees of
      Debtor.

     

    (f) Records
      and Statements.
      Debtor
      shall furnish to Lender financial statements at least annually and such other
      financial information respecting Debtor at such times and in such form as Lender
      may request. Debtor shall keep accurate and complete records respecting the
      Collateral in such form as Lender may approve. At such times as Lender may
      require, Debtor shall furnish to Lender a statement certified by Debtor and
      in
      such form and containing such information as may be prescribed by Lender,
      showing the current status and value of the Collateral. Debtor shall furnish
      to
      Lender such reports regarding the payment of wages to employees of Debtor and
      the number of employees of Debtor as Lender may from time to time request,
      and
      without request shall furnish to Lender a written report immediately upon,
      any
      material increase in the number of employees of Debtor, the failure of Debtor
      to
      pay any wages when due to employees of Debtor or the imposition of any lien
      against the assets of Debtor for unpaid wages due employees of
      Debtor.

     

    (g) Inspection
      of Collateral; Audit.
      Lender
      may examine, inspect and audit the Collateral and Debtor’s records pertaining to
      it, wherever located, during normal business hours, and make copies of records,
      and Debtor shall assist Lender in so doing.

     

    (h) Charges.
      In
      addition to the required payments under the Obligations and this Agreement,
      Debtor shall pay all of Lender’s costs and expenses for inspection and auditing
      in connection with this Agreement.

     

    (i) Chattel
      Paper.
      Lender
      may require that chattel paper constituting Collateral shall be on forms
      approved by Lender. Unless it consists of electronic chattel paper, Debtor
      shall
      promptly mark all chattel paper constituting Collateral, and all copies, to
      indicate conspicuously Lender’s interest and, upon request, deliver them to
      Lender. If it consists of electronic chattel paper, Debtor shall promptly notify
      Lender of the existence of the electronic chattel paper and, at the request
      of
      Lender, shall take such actions as Lender may reasonably request to vest in
      Lender control of such electronic chattel paper under applicable
      law.

     

    (j) United
      States Contracts.
      If any
      Collateral arose out of contracts with the United States or any of its
      departments, agencies or instrumentalities, Debtor will notify Lender and
      execute writings required by Lender in order that all money due or to become
      due
      under such contracts shall be assigned to Lender and proper notice of the
      assignment given under the Federal Assignment of Claims Act.

     

    (k) Modifications.
      Without
      the prior written consent of Lender, Debtor shall not alter, modify, extend,
      renew or cancel any accounts, letter of credit rights or chattel paper
      constituting Collateral.

     

    (l) Returns
      and Repossessions.
      Debtor
      shall promptly notify Lender of the return to or repossession by Debtor of
      goods
      underlying any Collateral and Debtor shall hold and dispose of them only as
      Lender directs.

     

    
      
         

      

      
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    (m) Promissory
      Notes, Chattel Paper and Investment Property.
      If
      Debtor shall at any time hold or acquire Collateral consisting of promissory
      notes, chattel paper or certificated securities, Debtor shall endorse, assign
      and deliver the same to Lender accompanied by such instruments of transfer
      or
      assignment duly executed in blank as Lender may from time to time
      request.

     

    (n) Change
      of Name, Address or Organization.
      Debtor
      shall not change Debtor’s legal name or address without providing at least 30
      days’ prior written notice of the change to Lender. Debtor, if it is an
      organization, shall not change its type of organization or state under whose
      law
      it is organized and shall preserve its organizational existence, and Debtor
      whether or not Debtor is an organization shall not, in one transaction or in
      a
      series of related transactions, merge into or consolidate with any other
      organization, change Debtor’s legal structure or sell or transfer all or
      substantially all of Debtor’s assets.

     

    5.
      RIGHTS
      OF LENDER

     

    (a) Authority
      to Perform for Debtor.
      Upon
      the occurrence of an event of default or if Debtor fails to perform any of
      Debtor’s duties set forth in this Agreement or in any evidence of or document
      relating to the Obligations, Lender is authorized, in Debtor’s name or
      otherwise, to take any such action including, without limitation, signing
      Debtor’s name or paying any amount so required, and the cost shall be one of the
      Obligations secured by this Agreement and shall be payable by Debtor upon demand
      with interest from the date of payment by Lender at the highest rate stated
      in
      any evidence of any Obligation but not in excess of the maximum rate permitted
      by law.

     

    (b) Set-Off.
      Debtor
      grants Lender, as further security for the Obligations, a security interest
      and
      lien in money now or hereafter owed Debtor by Lender, and agrees that Lender
      may, at any time after the occurrence of an event of default, without prior
      notice or demand, set-off all or any part of the unpaid balance of the
      Obligations against any money now or hereafter owed Debtor by
      Lender.

     

    (c) Power
      of Attorney.
      Debtor
      irrevocably appoints any officer of Lender as Debtor’s attorney, with power
      after an event of default to receive, open and dispose of all mail addressed
      to
      Debtor (and Lender shall not be required as a condition to the exercise of
      this
      power to prove the occurrence of an event of default to the Post Office); to
      notify the Post Office authorities to change the address for delivery of all
      mail addressed to Debtor to such address as Lender may designate; to endorse
      the
      name of Debtor upon any instruments which may come into Lender’s possession; and
      to sign and make draws under any letter of credit constituting Collateral on
      Debtor’s behalf. Debtor authorizes Lender to honor any such draft accompanied by
      invoices aggregating the amount of the draft and describing inventory to be
      shipped to Debtor and to pay any such invoices not accompanied by drafts. Debtor
      appoints any employee of Lender as Debtor’s attorney, with full power to sign
      Debtor’s name on any instrument evidencing an Obligation, or any renewals or
      extensions, and such instruments may be payable at fixed times or on demand,
      shall bear interest at the rate from time to time fixed by Lender and Debtor
      agrees, upon request of Lender, to execute any such instruments. This power
      of
      attorney to execute instruments may be revoked by Debtor only by written notice
      to Lender and no such revocation shall affect any instruments executed prior
      to
      the receipt by Lender of such notice. All acts of such attorney are ratified
      and
      approved and such attorney is not liable for any act or omission or for any
      error of judgment or mistake of fact or law. This power is a power coupled
      with
      an interest and is given as security for the Obligations, and the authority
      conferred by this power is and shall be irrevocable and shall remain in full
      force and effect until renounced by Lender.

     

    
      
         

      

      
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    (d) Nonliability
      of Lender.
      Lender
      has no duty to determine the validity of any invoice, the authority of any
      shipper to ship goods to Debtor or compliance with any order of Debtor. Lender
      has no duty to protect, insure, collect or realize upon the Collateral or
      preserve rights in it against prior parties. Debtor releases Lender from any
      liability for any act or omission relating to the Obligations, the Collateral
      or
      this Agreement, except Lender’s willful misconduct.

     

    6.
      DEFAULT

     

    (a) Event
      of Default.
      Upon
      the occurrence of one or more of the following events of default (each an “event
      of default”):

     

    (i) Nonperformance.
      Any of
      the Obligations are not paid when due or Debtor fails to perform, or rectify
      the
      breach of, any representation, warranty or covenant or other undertaking in
      this
      Agreement or in any evidence of or document relating to the Obligations or
      an
      event of default occurs under any evidence of or document relating to any other
      obligation secured by the Collateral;

     

    (ii) Inability
      to Perform.
      Debtor
      or a guarantor or surety of any of the Obligations dies, ceases to exist,
      becomes insolvent or the subject of bankruptcy or insolvency proceedings or
      any
      guaranty of the Obligations is revoked or becomes unenforceable for any
      reason;

     

    (iii) Misrepresentation.
      Any
      warranty or representation made to induce Lender to extend credit to Debtor,
      under this Agreement or otherwise, is false in any material respect when made;
      or

     

    (iv) Insecurity.
      At any
      time Lender believes in good faith that the prospect of payment or performance
      of any of the Obligations or performance under any agreement securing the
      Obligations is impaired;

     

    all
      of
      the Obligations shall, at the option of Lender and without notice or demand,
      become immediately payable; and Lender shall have all rights and remedies for
      default provided by the Wisconsin Uniform Commercial Code and this Agreement,
      as
      well as other applicable law, and under any evidence of or document relating
      to
      any Obligation, and all such rights and remedies are cumulative and may be
      exercised from time to time. Without limiting in any way the generality of
      the
      foregoing, Lender shall have the rights and remedies set forth in this
      Section 6.

     

    (b) Repossession.
      Lender
      may take possession of Collateral, without notice or hearing, which Debtor
      waives.

     

    (c) Assembling
      Collateral.
      Lender
      may require Debtor to assemble the Collateral and to make it available to Lender
      at any place reasonably designated by Lender.

     

    (d) Notice
      of Disposition.
      Lender
      may dispose of the Collateral upon written notice, when required by law, sent
      to
      any address of Debtor in this Agreement and ten (10) calendar days (counting
      the
      day of sending) before the date of a proposed disposition of the Collateral
      is
      deemed reasonable notice.

     

    
      
         

      

      
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    (e) Expenses
      and Application of Proceeds.
      Debtor
      shall reimburse Lender for any expense incurred by Lender in protecting or
      enforcing its rights under this Agreement, before and after judgment, including,
      without limitation, reasonable attorneys’ fees and legal expenses (including
      those incurred in successful defense or settlement of any counterclaim brought
      by Debtor or incident to any action or proceeding involving Debtor brought
      pursuant to the United States Bankruptcy Code) and all expenses of taking
      possession, holding, preparing for disposition and disposing of Collateral
      (provided, however, Lender has no obligation to cleanup or otherwise prepare
      the
      Collateral for sale). After deduction of such expenses, Lender shall apply
      the
      proceeds of disposition to the extent actually received in cash to the
      Obligations in such order and amounts as it elects or as otherwise required
      by
      this Agreement if Lender sells any Collateral on credit, Debtor will be credited
      only with payments that the purchaser actually makes and that Lender actually
      receives and applies to the unpaid balance of the purchase price of the
      Collateral.

     

    (f) Waiver.
      Lender
      may permit Debtor to remedy any default without waiving the default so remedied,
      and Lender may waive any default without waiving any other subsequent or prior
      default by Debtor. Lender shall continue to have all of its rights and remedies
      under this Agreement even if it does not fully and properly exercise them on
      all
      occasions.

     

    7.
      WAIVER
      AND CONSENT

     

    Debtor
      expressly consents to and waives notice of the following by Lender without
      affecting the liability of Debtor: (a) any surrender, release, impairment,
      sale
      or other disposition of any security or collateral for the Obligations, (b)
      any
      release or agreement not to sue any guarantor or surety of the Obligations,
      (c)
      any failure to perfect a security interest in or realize upon any security
      or
      collateral for the Obligations, (d) any failure to realize upon any of the
      Obligations or to proceed against any guarantor or surety, (e) any renewal
      or
      extension of the time of payment, (f) any allocation and application of payments
      and credits and acceptance of partial payments, (g) any application of the
      proceeds of disposition of any collateral for the Obligations to any obligation
      of any Debtor secured by such collateral in such order and amounts as it elects,
      (h) any determination of what, if anything, may at any time be done with
      reference to any security or collateral, and (i) any settlement or compromise
      of
      the amount due or owing or claimed to be due or owing from any guarantor or
      surety.

     

    8.
      INTERPRETATION

     

    The
      validity, construction and enforcement of this Agreement are governed by the
      internal laws of the State of Wisconsin. All terms not otherwise defined have
      the meanings assigned to them by the Wisconsin Uniform Commercial Code, as
      amended from time to time, provided, however, that the term “instrument” shall
      be such term as defined in the Wisconsin Uniform Commercial Code-Secured
      Transactions Chapter 409. All references in this Agreement to sections of the
      Wisconsin Statutes are to those sections as they may be renumbered from time
      to
      time. Invalidity of any provision of this Agreement shall not affect the
      validity of any other provision. This Agreement is intended by Debtor and Lender
      as a final expression of this Agreement and as a complete and exclusive
      statement of its terms, there being no conditions to the enforceability of
      this
      Agreement. This Agreement may not be supplemented, amended or modified except
      in
      writing, signed by the party against whom such supplement, amendment or
      modification is sought to be enforced.

     

    
      
         

      

      
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    9.
      PERSONS BOUND AND OTHER PROVISIONS

     

    This
      Agreement benefits Lender, its successors and assigns, and binds Debtor and
      its
      successors and permitted assigns and shall bind all persons and entities that
      become bound as a debtor to this Agreement. Debtor acknowledges receipt of
      a
      completed copy of this Agreement. This Agreement has been executed by the duly
      authorized manager of the Debtor. 

     

    

     

    ORGANIC
      FARM MARKETING, LLC,

    a
      Wisconsin limited liability company

    

    By:______________________________

    Chad
      L.
      Pawlak, Sr.

    

    Address:  302
      West
      Stanley Street

          Thorp,
      Wisconsin 54771

    
      
         

      

      
        Page
          9 of
          9Unassociated Document

    EXHIBIT
      10.23

     

    REIMBURSEMENT
      AGREEMENT

     

    This
      Reimbursement Agreement (“Agreement”), dated as of December 18, 2007, is by
      and between Organic Farm Marketing, LLC (“Company”), a Wisconsin limited
      liability company, and Advanced Biotherapy, Inc. (“Investor”), a Delaware
      corporation.

     

    R
      E C I T A L S:

     

    A. Concurrently
      herewith, Investor is loaning to the Company the principal amount of Eight
      Hundred Thousand Dollars ($800,000.00), to be evidenced by a Company convertible
      note (“December Convertible Note”), pursuant to an agreement between the Company
      and the Investor of even date herewith (“Investment Agreement”). The Company
      agreed to secure its obligations under the December Convertible Note by a
      General Business Security Agreement of even date herewith (“Security
      Agreement”).

     

    B. The
      Wisconsin Department of Agriculture, Trade and Consumer Protection
      (“Department”) has required the Company to secure an irrevocable letter of
      credit in the amount of $1.0 million (“Letter of Credit”) in favor of the
      Department so that the Company may distribute dairy products in the State of
      Wisconsin.

     

    C. The
      Investor has arranged on behalf of the Company to obtain the Letter of Credit
      from The Northern Trust Company of Chicago, Illinois (“Bank”).

     

    D. As
      a
      condition to issuing the Letter of Credit, the Bank requires that the Investor
      grant the Bank a security interest in a certificate of deposit account
      maintained at the Bank as collateral for payment by the Company of funds
      advanced pursuant to the Letter of Credit (“Bank Pledge
      Agreement”).

     

    E. To
      induce
      the Investor to execute the Bank Pledge Agreement, the Company has agreed to
      enter into this Agreement and to issue a secured promissory note (“Secured
      Promissory Note”) in favor of the Investor of even date herewith which evidences
      the Company’s obligations to pay the Investor the amount which the Investor
      shall be obligated to pay the Bank pursuant to the Bank Pledge Agreement or
      otherwise, and to secure its obligation hereunder and thereunder by a General
      Business Security Agreement of even date herewith.

     

    NOW,
      THEREFORE, in consideration of the foregoing recitals and the covenants
      contained herein, and to induce the Investor to lend its credit so that the
      Company may apply for the Letter of Credit, the parties agree as
      follows:

     

    SECTION
      1. DEFINITIONS.

     

    As
      used
      in this Agreement, the following terms shall have the indicated
      meanings:

     

    “Agreed
      Rate”
      means
      the rate of interest charged the Company by the Investor on any outstanding
      principal under the Secured Promissory Note.

     

    “Agreement”
      or
“Reimbursement
      Agreement”
means
      this Reimbursement Agreement, and all of the exhibits, appendices and schedules
      attached hereto, all of which are incorporated herein by this reference and
      made
      a part hereof.

     

    
      
        
        

      

      
        Page
          1 of
          8

        
          

        

      

      
        
        

      

    

    “Bank”
means
      The Northern Trust Bank of Chicago, Illinois.

     

    “Date
      of Issuance”
means
      the date as of which the Letter of Credit is issued and delivered to the
      Department.

     

    “Default”
-
      See
      Section 7.

     

    “Department”
-
      See
      Recitals.

     

    “Draw”
or
      “Drawn”
with
      respect to the Letter of Credit means payment by the Bank on account of the
      Letter of Credit.

     

    “Events
      of Default”
means
      any condition or event stated in Sections 4.1 through 4.4 which, with the lapse
      of time or the giving of notice, or both, would constitute a
      Default.

     

    “Expiration
      Date”
means
      the date the Company’s obligations in connection with the Letter of Credit
      expire.

     

    “Investor”
-
      See
      Recitals.

     

    “L/C
      Certificates”
means
      those certain certificates required by the Bank from the Company.

     

    “Letter
      of Credit”
means
      that certain irrevocable letter of credit in the amount of One Million Dollars
      ($1,000,000.00), dated concurrently herewith, issued by the Bank with the
      Company as account party, and the Department as beneficiary, and such other
      letter of credit that may be issued in substitution or replacement
      thereof.

     

    “Lien”
means
      any lien, mortgage, pledge, security interest, charge or encumbrance of any
      kind
      (including any conditional sale or other title retention agreement, any lease
      in
      the nature thereof, and any agreement to give any lien or security
      interest).

     

    “Security
      Documents”
means,
      collectively, the General Business Security Agreement dated of even date
      herewith and all documents or instruments executed in connection
      therewith.

     

    “Units”
means
      five thousand (5,000) Units of the Company, representing a membership interest
      in the Company and such other rights, privileges and preferences as set forth
      in
      the Company’s Operating Agreement, made as of February 23, 2007, as amended
      by Certificate of Amendment to Operating Agreement dated April 17, 2007, and
      as
      amended by the Amendment to Operating Agreement dated concurrently herewith,
      and
      as otherwise provided under the laws of the State of Wisconsin.

     

    SECTION
      2. UNDERTAKING
      FOR LETTER OF CREDIT, REIMBURSEMENT AND OTHER PAYMENTS.

     

    2.1 Undertaking
      to Obtain Letter of Credit.
      The
      Company shall undertake and obtain the Letter of Credit from the Bank and to
      execute the L/C Certificates, and to execute all agreements, documents and
      instruments that may be necessary or desirable to obtain the Letter of
      Credit.

     

    
      
        
        

      

      
        Page
          2 of
          8

        
          

        

      

      
        
        

      

    

    2.2 Reimbursement
      for Draw Upon Letter of Credit and Other Amounts.
      The
      Company hereby agrees (i) to pay the Investor the aggregate amount which
      the Investor shall pay to the Bank pursuant to or in connection with the Bank
      Pledge Agreement or otherwise, and any interest thereon at the Agreed Rate
      accruing from the date of advance or payment by the Investor, subject to and
      in
      accordance with the Secured Promissory Note; and (ii) to reimburse the
      Investor on demand for all costs, expenses, fees, of whatever kind and any
      liabilities or obligations paid or payable by the Investor to the Bank pursuant
      to or in connection with or arising from the Letter of Credit, the L/C
      Certificates or the Secured Promissory Note, including, without limitation,
      all
      origination and administration fees and attorneys’ fees and
      disbursements.

     

    2.3 Fees.
      The
      Company shall pay to the Investor a fee equal to ten percent (10%) of the face
      amount of the original Letter of Credit, payable as follows:

     

    (a) on
      the
      Date of Issuance, Fifty Thousand Dollars ($50,000.00), by cash or immediately
      available funds. The Company hereby agrees and authorizes the Investor to deduct
      from and retain for its own benefit, subject to the occurrence of the Date
      of
      Issuance, such $50,000 fee from the loan proceeds to be advanced to the Company
      under the Working Capital Loan at the closing as provided in the Investment
      Agreement; and

     

    (b) on
      the
      Date of Issuance, the Company shall issue the five thousand (5,000) Units to
      Investor, representing an agreed value per Unit of Ten Dollars ($10.00),
      together with a certificate in form satisfactory to the Investor. Concurrently
      with the issuance of such 5,000 Units, the Investor agrees to execute a Joinder
      Agreement pursuant to which the Investor agrees to be bound by the terms and
      conditions of the Operating Agreement as in effect on the date hereof, and
      any
      amendments thereto as to which the Investor has consented in writing.

     

    The
      Investor will maintain the Bank Pledge Agreement
      or make other arrangements suitable to the Bank to maintain the Letter of Credit
      for one year from the Date of Issuance. In the event the Letter of Credit shall
      be outstanding beyond December 31, 2008, and for any such additional period
      the
      Investor shall have an obligation to the Bank in connection with the Letter
      of
      Credit, the Company shall pay to the Investor a fee equal to Eight Thousand
      Three Hundred Thirty-Three Dollars and Thirty-Three Cents ($8,333.33) per month
      for each month, or portion thereof, in which the Letter of Credit is outstanding
      beyond December 31, 2008, payable in advance in cash or immediately available
      funds, provided that the Company shall not cause the Letter of Credit to be
      extended without the consent of the Investor.

     

    2.4 Application
      of Funds.
      Except
      as otherwise expressly provided herein, all payments received by the Investor
      from the Company shall be applied by the Investor to the payment of amounts
      then
      owing by the Company to the Investor, in such order and manner as the Investor
      chooses, in its sole discretion.

     

    SECTION
      3. CONDITIONS
      PRECEDENT.

     

    The
      Investor’s obligation to execute the Bank Pledge Agreement is conditioned upon
      the satisfaction by the Company of all of the following conditions on or prior
      to the Date of Issuance.

     

    
      
        
        

      

      
        Page
          3 of
          8

        
          

        

      

      
        
        

      

    

    3.1 Execution
      and Delivery of Closing Documents.
      The
      Investor shall have received and approved the following documents, each of
      which
      shall be in form and substance satisfactory to the Investor and its legal
      counsel and duly executed and delivered by the appropriate parties
      thereto:

     

    (a) The
      Security Documents and all financing statements, notices, deliveries and
      instruments required in connection therewith; and

     

    (b) Such
      other documents and instruments as the Investor may reasonably
      require.

     

    3.2 Representations
      Correct; No Default.
      On the
      Date of Issuance:

     

    (a) the
      representations and warranties contained in the Investment Agreement delivered
      by the Company to the Investor shall be true and correct in all respects on
      and
      as of the Date of Issuance to the same extent as though made on and as of such
      date (except for representations and warranties expressly referring to a
      specific date which shall be true and correct as of such date);

     

    (b) no
      Event
      of Default or Default shall have occurred and be continuing, and neither will
      result from the issuance of the Letter of Credit.

     

    3.3 Units.
      The
      Company shall simultaneously cause to be delivered pursuant to Section 2.3
      hereof a certificate representing the five thousand (5,000) Units, or comparable
      evidence of the Investor’s ownership of record of the Units, satisfactory to the
      Investor.

     

    3.4 Fees.
      The
      Company shall have paid the cash fee to the Investor, specified in Section
      2.3(a).

     

    SECTION
      4. EVENTS
      OF DEFAULT.

     

    The
      following events shall be, at the option of the Investor, constitute a “Default”
hereunder:

     

    4.1 Payment
      of Obligations.
      The
      Company shall fail to pay when due any amount due to the Investor under this
      Agreement or under the Secured Promissory Note when due and such failure shall
      continue for five (5) days.

     

    4.2 Secured
      Promissory Note Event of Default.
      Any
      Event of Default (as that term is defined in the Secured Promissory Note) shall
      occur.

     

    4.3 Security
      Documents.
      There
      shall occur a default as described in any of the Security Documents

     

    4.4 Invalidity.
      Any
      payment obligation of the Company under this Agreement or any Security Document
      at any time for any reason ceases to be valid and binding thereon, or the
      validity or enforceability thereof shall be contested or denied by the Company
      or any governmental agency or authority.

     

    
      
        
        

      

      
        Page
          4 of
          8

        
          

        

      

      
        
        

      

    

     

    SECTION
      5. RIGHTS
      AND REMEDIES.

     

    Upon
      the
      occurrence of a Default, the Investor shall have all rights and remedies under
      law or equity, including, without limitation:

     

    (a) All
      rights and remedies under this Agreement, the Secured Promissory Note and the
      Security Documents.

     

    (b) All
      remedies of the Investor provided for in this Agreement are cumulative and
      shall
      be in addition to any and all other rights and remedies available under the
      Secured Promissory Note or the Security Documents or by law or equity. No
      exercise by the Investor of any right or remedy shall in any way constitute
      a
      cure or waiver of any Event of Default or Default hereunder, or invalidate
      any
      act done pursuant to any notice of default, or prejudice the Investor in the
      exercise of any other right or remedy available to the Investor. No failure
      on
      the part of the Investor to exercise, and no delay in exercising, any right
      or
      remedy shall operate as a waiver or otherwise preclude enforcement of any of
      its
      rights and remedies; nor shall any single or partial exercise of any right
      or
      remedy preclude any further exercise thereof or of any other right or remedy.
      The Investor need not resort to any particular right or remedy before exercising
      or enforcing any other.

     

    SECTION
      6. NOTICES.

     

    All
      notices or demands of any kind shall be in writing and sent by telecopier (with
      evidence of transmission) or by reputable overnight courier (with evidence
      of
      delivery) addressed to the address specified below. Notice shall be deemed
      complete (i) if given by telecopier, on the first business day immediately
      following the date of transmission, and (ii) if given by overnight courier,
      on the date of delivery. The addresses specified in this section for notice
      are:

     

    
      	
              Investor:

            	
              Advanced
                Biotherapy, Inc.

              141
                West Jackson, Suite 2182

              Chicago,
                Illinois 60604

              Attention:
                Christopher W. Capps,

              Chief
                Executive Officer

              Facsimile: (312)
                427-5396

              with
                a copy to:

               

              Rutter
                Hobbs & Davidoff Incorporated

              1901
                Avenue of the Stars, Suite 1700

              Los
                Angeles, California 90067

              Attention: Joel
                Weinstein, Esq.

              Facsimile: (310)
                286-1728

            
	
              Company:

            	
              Organic
                Farm Marketing, LLC

              P.O.
                Box 560

              302
                West Stanley Street

              Thorp,
                Wisconsin 54771

              Attention: Chad
                L. Pawlak, Sr.

              Facsimile: (715)
                669-7583

               

              with
                a copy to:

               

              Whyte
                Hirschboeck Dudek SC

              33
                East Main Street, Suite 300

              Madison,
                Wisconsin 53703

              Attention: Lisa
                Lange, Esq.

              Facsimile: (608)
                258-7138

            

    

     

    
      
        
        

      

      
        Page
          5 of
          8

        
          

        

      

      
        
        

      

    

    

    SECTION
      7. INDEMNIFICATION.

     

    Article
      VIII of the Investment Agreement is incorporated herein by reference as if
      set
      forth verbatim.

     

    SECTION
      8. LIABILITY
      OF INVESTOR GROUP.

     

    Without
      limiting any provision of Section 7 hereof, as between the Company and the
      Investor, the Company assumes all risks of the acts or omissions of the
      Department with respect to its use of the Letter of Credit and the Bank as
      to
      the issuance or dishonor of a draw upon the Letter of Credit; provided, however,
      this assumption is not intended to, and shall not, preclude the Company from
      pursuing such rights and remedies as it may have against the Bank or any Letter
      of Credit beneficiary at law or under any agreement. Neither the Investor nor
      any of its officers, directors, employees or agents shall be liable or
      responsible for: (a) the use made of the Letter of Credit for any acts or
      omissions of the Bank or any Letter of Credit beneficiary; (b) the
      validity, sufficiency or genuineness of any documents, or endorsements, even
      if
      such documents should in fact prove to be in any or all respects invalid,
      insufficient, fraudulent or forged; (c) payment by the Bank against
      presentation of documents which do not comply with the terms of the Letter
      of
      Credit, including failure of any documents to bear adequate reference to the
      Letter of Credit; or (d) any other circumstances in making or failing to
      make payment under the Letter of Credit.

     

    SECTION
      9. SUCCESSORS
      AND ASSIGNS.

     

    This
      Agreement is a continuing obligation and shall be binding upon the parties
      and
      their respective successors, transferees and assigns, and shall inure to the
      benefit of and be enforceable by the parties and their respective successors,
      transferees and assigns; provided, however, that the Company may not assign
      all
      or any part of this Agreement without the prior written consent of the Investor,
      in its sole discretion.

     

    SECTION
      10. MISCELLANEOUS.

     

    10.1 Governing
      Law.
      This
      Agreement shall be governed by, and construed and enforced in accordance with,
      the laws of the State of Delaware, without regard to its principles of conflict
      of laws.

     

    10.2 Survival
      of Warranties.
      All
      agreements, representations and warranties made in this Agreement and in any
      related certificates shall survive the execution and delivery of this Agreement
      and the issuance and expiration of the Letter of Credit.

     

    
      
        
        

      

      
        Page
          6 of
          8

        
          

        

      

      
        
        

      

    

    10.3 Severability.
      Any
      provision of this Agreement which 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
      provision or affecting the validity or enforceability of such provision in
      any
      other jurisdiction.

     

    10.4 Counterparts.
      This
      Agreement may be executed in any number of counterparts (and by facsimile,
      followed by delivery of an original), and by different parties on separate
      counterparts, each of which counterparts, when so executed and delivered, shall
      be deemed to be an original, and all of which counterparts, taken together,
      shall constitute but one and the same Agreement.

     

    10.5 Time
      of Essence.
      Time is
      of the essence of this Agreement and of each provision in which time is an
      element.

     

    10.6 No
      Further Credits.
      The
      Investor shall not be obligated to issue any further credits or any other manner
      to extend any financial consideration to the Company, except as expressly
      provided in this Agreement.

     

    10.7 Headings.
      Section
      and other headings in this Agreement are for convenience of reference only
      and
      shall not constitute a part of this Agreement for any other
      purpose.

     

    10.8 Independence
      of Covenants.
      All
      covenants hereunder shall be given independent effect so that if a particular
      action or condition is not permitted by any one of such covenants, the fact
      that
      it would be permitted by an exception to, or be otherwise within the limitations
      of, another covenant shall not avoid the occurrence of an Event of Default
      or
      Default if such action is taken or condition exists.

     

    10.9 Waivers.
      No
      waiver or consent under this Agreement shall be effective unless it is in
      writing and signed by the Investor. Each waiver or consent shall be effective
      only in the specific instance and for the specific purpose for which it was
      given.

     

    10.10 Compliance
      with Usury Laws.
      Notwithstanding any other provision of this Agreement, neither the Investor
      Group nor any Investor shall be required to pay interest and other cost or
      considerations that constitute inters under any applicable law which are
      contracted for, charged or received pursuant to this Agreement in an amount
      in
      excess of the maximum amount of interest allowed under any applicable law.
      That
      portion of any interest payment in excess of the maximum legal rate of interest,
      if any, provided for in this Agreement or related documents shall be canceled
      automatically as of the date of such acceleration, or if theretofore paid,
      credited to the principal amount.

     

    10.11 Entire
      Agreement.
      This
      Agreement and the other agreements and documents referred to herein or therein
      constitute the entire understanding between the parties and may not be modified,
      amended or terminated except by a written agreement signed by each of the
      parties hereto. The provisions of this Agreement are not intended to supersede
      the provisions of either the Investment Agreement or the Secured Promissory
      Note, but shall be construed as supplemental thereto.

     

    [SIGNATURES
      ON FOLLOWING PAGE]

     

    
      
        
        

      

      
        Page
          7 of
          8

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties have duly executed and delivered this Agreement
      or
      caused this Agreement to be duly executed and delivered by a duly authorized
      officer as of the date first above written.

     

    
      	
              “COMPANY”

            	
              ORGANIC
                FARM MARKETING, LLC

               

               

               

              By
                ______________________________________

              Chad
                L. Pawlak, Sr., President

               

               

               

            
	
              “INVESTOR”

            	
              ADVANCED
                BIOTHERAPY, INC.

               

               

               

              By
                ______________________________________

              Christopher
                W. Capps,

              Chief
                Executive Officer

            

    

     

    
      
        
        

      

      
        Page
          8 of
          8

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