Document:

ex103.htm

    Exhibit
10.3

     

     

    EMPLOYMENT
AGREEMENT

     

    In
accordance with the applicable laws and regulations of the People's Republic of
China ("China" or "PRC"), Weifang Changda Chemical Co., Ltd., a company
established and registered in Binhai Economic Development Zone, Weifang,
Shandong Province in accordance with PRC law ("Company") and Zhu HuaRan, ID No.
370723195409193338
(the "Employee"), a citizen and resident of PRC, as of this 8th day of
December, 2008 have reached the following agreement regarding the Employee's
employment with the Company.

     

    1.          EMPLOYMENT.
Employee’s employment under this Agreement shall commence on 8 December
2008 (the “Effective Date”) and shall continue in effect until the date
immediately before the third anniversary of the Effective Date, unless earlier
terminated in accordance with Section 8 of this
Agreement. Thereafter, this Agreement shall be automatically extended and shall
continue in full force and effect for successive three year periods, subject to
the termination provisions of Section 8 of this
Agreement, unless either party gives written notice to the other party at least
thirty (30) days prior to the expiration of such period that such party elects
not to extend the term. The initial term of this Agreement and each successive
extension period shall be referred to as the “Term” of this
Agreement.

     

    2.          POSITION
AND DUTIES. During Employee’s employment under this Agreement, Employee
will have the following position, duties and responsibilities, including
participation in the planning or implementing of any project, program or venture
referred to in Section
6:

     

    (a)          Position with the Company.
Employee will serve as General Manager of the
Company and Executive Director of the Group Companies and will perform
such duties and responsibilities of an Employee nature or a similar nature as
the Company and its parent companies, subsidiaries and other affiliates (the
“Group Companies”) may assign to him/her from time to time. The place(s) of
Employee’s work will be Weifang, Shandong Province, PRC and he is expected to
travel on business from time to time.

     

    (b)          Work Hours. Employee
shall work five (5) days per week from 8 am to 5 pm Monday through Friday and
for not more than forty (40) hours per week (excluding lunchtime). Employee is
expected to work overtime upon the request of any Group Company and is generally
not eligible for overtime compensation. Employee is entitled to paid leave,
including annual leave, sick leave, etc., in accordance with the relevant PRC
employment laws and regulations.

     

    (c) Performance of Duties and
Responsibilities. Employee will serve the Group Companies faithfully and
to the best of Employee’s ability and will devote Employee’s full working time,
attention and best efforts to the business of the Group Companies. Employee will
follow the applicable policies and procedures legally adopted by the Group
Companies from time to time (collectively the “Rules”, as such Rules may be
amended from time to time). Employee will not engage in other employment or
other business activity, except as approved in writing by the Company. Employee
hereby represents and

    

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    confirms that Employee is under no contractual or legal
commitments that would prevent him/her from fulfilling Employee's duties and
responsibilities as set forth in this Agreement.

     

        3. COMPENSATION.
During Employee's employment under this Agreement, Employee will be provided with the following compensation
and benefits:

     

    (a) Base
Salary. The Company will pay to Employee for services provided hereunder a
gross, annual base salary in
RN1B equivalent to $100,000 USD (i.e., before any applicable withholding individual income tax and individual social
security contributions), which base salary will be paid in accordance with the Group
Companies' normal payroll policies and procedures, and which shall be subject to adjustment if
Employee has not worked a complete year for any particular year. The Company and the
Remuneration Committee of Changda International Limited, being the holding company of
the Company, will review Employee's performance on an annual basis and determine any
adjustments to Employee's base salary in its sole discretion, but there is no
guarantee that any upward adjustment will be made after the review.

     

    (b) Bonus.
Employee may be entitled to a yearly incentive bonus at the discretion of the
Company as shall be notified to Employee by the Company
separately, based on the performance of the Group Companies, performance of the
Company, performance of Employee's
work unit and performance of Employee him/herself throughout the twelve
month period prior to the date on which discretionary
yearly incentive bonus payments may be made. However, the amount of payment of an incentive
bonus in any year(s) will not guarantee the payment of an incentive bonus, or an
incentive bonus at a certain level, in any subsequent year(s). Employee acknowledges and
accepts that the payment of any incentive bonus is discretionary and that Employee
does not have any contractual right to receive an incentive bonus. Employee
further acknowledges that the Company has not made any representation or guarantee
that any incentive bonus will be payable in any particular year.

     

    (c) Employee Benefits. Employee will be entitled to
participate in all employee benefit plans and programs available to employees of the Company in
China and to the extent that Employee meets the eligibility requirements for each such
individual plan or program. Employee's participation in any plan or program
will be subject to the provisions, rules, and regulations of, or applicable to, the plan or
program and any applicable law. In accordance with applicable laws and regulations in the PRC,
the Company shall pay for the requisite social security, welfare and benefits of Employee
including: pension fund, job-related injury insurance, medical insurance,
unemployment insurance, public housing fund and other related benefits. Employee's required
contribution to the aforementioned funds and insurance policies will be withheld by the
Company. In accordance with the applicable PRC tax laws and regulations, the Company shall
withhold (in the name of Employee) Employee's individual PRC income tax from the
compensation to be paid to Employee hereunder.

     

    (d) Business Expenses. The Company will reimburse Employee
for all reasonable and necessary, properly documented, out-of-pocket business,
travel, and entertainment expenses incurred by Employee in the performance of
Employee’s duties and responsibilities to the Group Companies, subject to normal
policies and procedures of the Group Companies, including with respect to
expense verification and documentation.

     

    4.          TRAINING.
The Company may provide Employee with training in relation to Employee’s
position and duties from time to time. Employee is required to attend all
trainings necessary for performing his/her duties and responsibilities to the
Group Companies. In the event that Employee agrees to participate in any special
training programs provided by or at the expense of the Company, including but
not limited to any overseas training, the Company and Employee may enter into a
supplemental agreement, pursuant to which Employee agrees to be employed by the
Company for certain term and to reimburse the Company for the costs incurred by
the Company in providing such training if Employee voluntarily terminates
his/her employment or is terminated “for cause” as described in Section 8(b)
below before the expiry of such term. The terms of such a supplemental agreement
shall be agreed upon by the Company and Employee at the appropriate
time.

     

     

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    5.          CONFIDENTIALITY
AND INTELLECTUAL PROPERTY. With respect to confidentiality and
intellectual property matters, Employee and the Company agree to sign a separate
Confidentiality Agreement in the form of Appendix
A attached hereto. Employee and the Company agree and acknowledge that
Appendix
A shall be in integral part of and have the same validity as this
Agreement.

     

    6.          VENTURES.
If, during Employee’s employment with the Company, Employee participates
in the planning or implementing of any project, program, or venture involving
any Group Companies, such participation shall form part of the discharge of his
duties and responsibilities under Section
2(a) and all rights in such project, program, or venture belong to any
Group Companies. Except as approved in writing by a Group Company, Employee will
not be entitled to any interest in any such project, program, or venture or to
any commission, finder’s fee, or any compensation other than provided in Section
3. Employee will have no interest, direct or indirect, in any customer or
supplier that conducts business with any Group Companies.

     

    7.          NON-COMPETITION
AND NON-SOLICITATION COVENANTS.

     

    (a) Agreement
Not to Compete. During Employee’s employment with the Company and for a
period of two years from and after the termination or expiration of Employee’s
employment, regardless of whether such termination is with or without cause and
whether such termination or expiration is at the instance of Employee or the
Company, Employee will not, directly or indirectly, in any manner or capacity,
become employed by, participate in (as director, stockholder, officer, partner,
lender, proprietor or venturer) or render services (including research or
consulting services), advice or assistance in the PRC (including Hong Kong
Special Administrative Region, Macau Special Administrative Region and Taiwan)
and any other location in which Employee has performed service on behalf of the
Group Companies in the twelve (12) months preceding Employee’s last day of
employment with the Company, to any entity, person or organization whose
business is in
competition with that of any Group Companies, including but not limited to the
businesses of developing, producing and selling fertilizer products (each, a
“Prohibited Activity”). For purposes of determining whether a position would
constitute a Prohibited Activity hereunder, Employee may not become employed by
any entity that derives any portion of its revenues from such industries.
Ownership by Employee, as a passive investment, of less than 1% of the
outstanding shares of capital stock of any corporation listed on a national
securities exchange or publicly traded in an over-the-counter market shall not
constitute a breach of this Section
7(a).

     

    (b) During
Employee’s employment with the Company and for a period of two years from and
after the termination of Employee’s employment, regardless of whether such
termination is with or without cause and whether such termination is at the
instance of Employee or the Company, Employee will not hire or offer to hire or
entice away or in any other manner persuade or attempt to persuade, either in an
individual capacity or as agent for another, any Group Company's’ officers,
employees or agents to discontinue their relationship with any Group Company or
divert or attempt to divert from any Group Companies any business whatsoever by
influencing or attempting to influence any supplier, customer or client of any
Group Company.

     

    (c)          No
Adequate Remedy at Law. Employee hereby acknowledges that the provisions
of this Section
7 are reasonable and necessary to protect the legitimate interests of the
Group Companies and that any violation of this Section
7 by Employee will cause substantial and irreparable harm to the Group
Companies to such an extent that monetary damages alone would be an inadequate
remedy therefor. Accordingly, in the event of any actual or threatened breach of
any such provisions, the Group Companies will, in addition to any other remedies
it may have, be entitled to injunctive and other equitable relief to enforce
such provisions.

     

    (d)          Compensation
and Company Waiver Right. Upon the termination of Employee’s employment
in accordance with this Agreement, the Company agrees to pay to Employee on a
monthly basis the compensation equivalent to 50% of Employee’s average monthly
regular salary in the twelve (12) months preceding Employee’s last day of
employment with the Company for his/her undertaking of the covenants set forth
in Sections
7(a) and 7(b),
unless the Company expressly waives in writing its right
subsequently to seek enforcement of such covenants, in which case the Company
has no obligation to pay to Employee any such compensation as provided in this
Section 7(d)
and Employee has no obligation to undertake his/her covenants set forth
in Sections 7(a) and
7(b).

     

     

     

    
      
         

      

      
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    (e)          Severability. If the
duration of, the scope of, or any business activity covered by, or any other
parts of this Section
7 is held to be invalid or unenforceable, then such part shall (so far as
it is invalid or unenforceable) be given no effect and shall be deemed not to be
included in this Agreement but without invalidating any of the remaining parts
of this Section 7.
Employee hereby acknowledges that this Section 7 will be
construed so that its provisions are valid and enforceable to the maximum
extent, not exceeding its express terms, possible under applicable
law.

     

    8. TERMINATION OF
EMPLOYMENT.

     

    (a) The
Company may terminate this Agreement upon thirty (30) days' written notice to
Employee under one or more of the following circumstances, and the Company shall
pay Employee severance or economic compensation for termination based on one or
more of these circumstances under applicable PRC laws and
regulations:

     

    
      	
              1)  

            	
              Employee
      is unable, due to a non-job-related illness or injury, even after medical
      treatment thereof, to perform Employee's original duties or the duties of
      a new position assigned by the Company or any Group
    Companies;

            

    

    
      	
              2)  

            	
              Employee
      is not capable, after training, of performing his/her original duties or
      the duties of a new position assigned by the Company or any Group
      Companies; or

            

    

    
      	
              3)  

            	
              The
      circumstances under which this Agreement is executed have changed
      substantially so that it is not feasible to continue to perform this
      Agreement as originally intended and, after consultations, the Company and
      Employee fail to reach an agreement to amend this
    Agreement;

            

    

    
      	
              4)  

            	
              Any
      other reason permissible under any applicable PRC laws and
      regulations.

            

    

     

    (b) The
Company shall not dismiss Employee pursuant to Article 8(a), if:

     

    
      	
              1)  

            	
              Employee
      suffers from an occupational disease or has sustained work-related
      injuries, and has been confirmed to have lost or has partially lost the
      capacity to work;

            

    

    
      	
              2)  

            	
              Employee
      is on prescribed medical leave due to a non-occupational disease or an
      injury that is non-work-related;

            

    

    
      	
              3)  

            	
              Employee
      is a woman who is pregnant, on maternity leave, or nursing a
      baby;

            

    

    
      	
              4)  

            	
              Employee
      has been working for the Company for a consecutive fifteen (15) years and
      is less than five years from the statutory retirement age;
    or

            

    
      	
              5) 
      

            	
              Other
      circumstances under which the Company is not allowed to terminate
      employees under relevant laws and
regulations.

            

    

     

    (c) The
Company may terminate this Agreement "for cause" immediately and without
severance compensation, for one or more of the following reasons:

     

    
      	
              1)  

            	
              Employee
      has materially breached this Agreement, or violated any of the Rules or
      any applicable PRC laws or
regulation;

            

    

    
      	
              2)  

            	
              Employee
      has received illegal benefits, or seriously neglected his/her duties,
      which incurred material damages to the Group
  Companies;

            

    

    
      	
              3)  

            	
              Employee
      has been convicted of a crime; or

            

    

    
      	
              4)  

            	
              Any
      other reason permissible under any applicable PRC laws and regulations
      including, but not limited to, Employee’s use of deception or coercion in
      procuring this Agreement.

            

    

     

    (d)
Subject to Section 8(e), Employee may terminate this Agreement at any time upon
thirty (30) days’ written notice to the Company during the Term of this
Agreement.

    

     

    (e)          Employee
may terminate this Agreement at any time without advance notice under
one or
more of the following circumstances:

     

    
      	
              1)  

            	
              The
      Company forces Employee to work by violence, threats or illegal restraint
      to Employee's personal freedom; or

            

    

    
      	
              2)  

            	
              The
      Company has failed to pay Employee according to this Agreement or to
      provide safe work conditions;

            

    

    
      	
              3)  
      

            	
              The
      Company fails to timely pay Employee the full amount of his/her
      remuneration;

            

    

    
      	
              4)  

            	
              The
      Company fails to pay the social insurance premium for Employee according
      to the relevant PRC law;

            

    

    
      	
              5)  
      

            	
              The
      ’ Rules and other policies of any Group Companies violate relevant laws
      and regulations and harm Employee’s rights and
  interests;

            

    

    
      	
              6)  

            	
              The
      Company materially violates this
Agreement;

            

    

    
      	
              7)
       

            	
              Other
      circumstances under which the relevant laws and regulations permit
      termination of the employment agreement by an
  employee.

            

    

     

    (f) If
the Company terminates this Agreement pursuant to Section 8(a), or
Employee terminates the Agreement pursuant to Section 8(e), the Company shall
pay to Employee severance equivalent to his/her monthly salary times the number
of years for which he/she works for the Company (subject to a severance cap of
not more than twelve (12) months salary) or, if an amount lower than the
foregoing calculation, such other minimum severance as required by any
applicable law. For Employee’s length of service shorter than one year but
longer than or equal to six months, such length of period shall be calculated as
one year’s service. For any length of service shorter than six months, Employee
shall receive one half month’s pay as severance.

     

    (g) If
Employee voluntarily terminates his/her employment with the Company under
Section 8(d), the Company shall have no obligation to pay any severance or
compensation to Employee.

     

     

     

    
      
         

      

      
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    9.           GOVERNING
LAW AND DISPUTE RESOLUTION. This Agreement and the relationship between
the parties shall be governed by the laws of the People’s Republic of China.
Whenever there is a dispute between Employee and the Company, the dispute shall
be resolved through consultations. Should Employee and the Company fail to reach
a settlement, the dispute shall be submitted to a labor dispute arbitration
commission with competent jurisdiction for arbitration. If either party is
dissatisfied with the arbitral award issued by the labor dispute arbitration
commission, that party may bring a lawsuit in a competent People’s
Court.

     

    10.           OTHER POST-TERMINATION
OBLIGATIONS.

     

    (a)
Immediately upon termination of Employee’s employment with the Company for any
reason, Employee will resign all positions then held as a director or officer of
any Group Companies.

    (b) Upon
termination of Employee’s employment with the Company, Employee shall promptly
deliver to the Company any and all Group Companies’ records (including records
relating to the Group Companies’ clients) and any and all Group Companies’
property in Employee’s possession or under Employee’s control, including without
limitation manuals, books, blank forms, documents, letters, memoranda, notes,
notebooks, reports, printouts, computer disks, computer tapes, source codes,
data, tables or calculations and all copies thereof, documents that in whole or
in part contain any trade secrets or confidential, proprietary or other secret
information of the Group Companies and all copies thereof, and keys, access
cards, access codes, passwords, credit cards, personal computers, telephones and
other electronic equipment belonging to the Group Companies.

     

    (c) Upon
termination of Employee’s employment with the Company for any reason, Employee
will, upon reasonable request of any Group Company or its designee, cooperate
with the Group Companies in connection with the transition of Employee’s duties
and responsibilities for the Group Companies; consult with the Group Companies
regarding business matters that Employee was directly and substantially involved
with while employed by the Company; and be reasonably available, with or without
subpoena, to be interviewed, review documents or things, give depositions,
testify, or engage in other reasonable activities in connection with any
litigation or investigation, with respect to matters that Employee then has or
may have knowledge of by virtue of Employee’s employment by or service to the
Group Companies.

     

    11. MISCELLANEOUS.

     

    (a)         Withholdings. The
Company may withhold from any amounts payable under this Agreement such income
and employment taxes and other withholdings as the Company shall determine are
required to be withheld pursuant to any applicable PRC law or
regulation.

     

    (b)         Entire Agreement.
This Agreement, including the Confidentiality Agreement attached hereto
as Appendix A, contains the entire agreement of the parties relating to
Employee’s employment with the Company and supersedes all prior agreements and
understandings with respect to such subject matter, (save for the Marshall
Islands Appointment Letter) and the parties hereto have made no agreements,
representations, or warranties relating to the subject matter of this Agreement
that are not set forth herein.

     

    (c)         No Violation of Other
Agreements. Employee hereby represents and agrees that neither (i)
Employee’s entering into this Agreement nor (ii) Employee’s carrying out the
provisions of this Agreement, will violate any other agreement (oral, written,
or other) to which Employee is a party or by which Employee is
bound.

     

    (d)         Assignment. This
Agreement shall not be assignable, in whole or in part, by either party without
the written consent of the other party. Any attempted assignment or delegation
in contravention hereof shall be null and void.

     

    (e) Amendments. No
amendment or modification of this Agreement will be effective unless made in
writing and signed by the parties hereto.

    

     

    (f)         Counterparts. This
Agreement may be executed by facsimile signature and in any number of
counterparts, and such counterparts executed and delivered, each as an original,
will constitute but one and the same instrument.

     

    (g)          Severability. Subject
to Section 7(e)
hereof, to the extent that any portion of any provision of this Agreement
is held invalid or unenforceable, it will be considered deleted herefrom and the
remainder of such provision and of this Agreement will be unaffected and will
continue in full force and effect.

     

    (h)          Survival. The
provisions of this Agreement that by their terms or implication extend beyond
the Term shall survive the termination or expiration of the Term and termination
of Employee’s employment with the Company for any reason. For the avoidance of
doubt, and without limitation, Sections 5, 7, and
9  shall survive termination hereof.

     

    (i)         Captions and Headings.
The captions and paragraph headings used in this Agreement are for
convenience of reference only and will not affect the construction or
interpretation of this Agreement or any of the provisions hereof.

     

     

     

    
      
         

      

      
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    (j) Notices. Any notice,
request, demand and other communication under this Agreement shall be in writing
and shall be deemed to have been duly given (i) on the date of service if served
personally on the party to whom notice is to be given, (ii) on the day of
transmission if sent by facsimile to the facsimile number given below, and
electronic printed confirmation of receipt is obtained promptly after completion
of transmission, (iii) on the second day after delivery to a reputable
international courier. If the day on which a notice or other communication is
deemed given under this Section 11 (j) is not
a business day, then such notice or other communication shall instead be deemed
given on the next business day. Such notices, requests, demands, and other
communications shall be addressed to the parties as follows:

     

    (1) If to the
Company: Weifang Changda Chemical Co., Ltd.

     

    Attention:
Fax:

     

    with a
copy to:

     

    Attention:
Fax:

     

    (2) If to
Employee: Zhu HuaRan

     

    (k) This
Agreement is executed in Chinese and English. Both the Chinese and English
versions have the same legal validity; however, in the event of any
inconsistency between the two versions, the Chinese version shall
prevail.

    

     

    
      
         

      

      
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      Employee and the Company have
executed this Agreement effective as of the date set forth in the first
paragraph.

       

      
        
          	 	 	 	 	 
	Weifan
      Changda Chemical Co., Ltd.	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                  By:
      Zhu HuaRan

                	 	 	
                   

                	 
	
                  Its:

                	 	 	
                   

                	 
	
                   

                	 	 	
                   

                	 

        

        	
              	 	 	 	 
	
                /s/
       Zhu HuaRan

              	 	 	
                 

              	 
	
                Zhu
      HuaRan

              	 	 	
                 

              	 
	
                 

              	 	 	
                 

              	 

    

     

     

    
      
         

      

      
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    Appendix
A

    to

     

    Employment
Agreement

     

    CONFIDENTIALITY
AGREEMENT

     

    In
consideration of my employment by Weifang Changda Chemical
Co., Ltd. (hereafter referred to as “the Company”), the compensation
received by me from the Company from time to time, and the additional
compensation provided herein, I hereby agree to the following terms of this
Confidentiality Agreement (hereafter referred to as “Agreement”):

     

    1. Definitions:

     

    
      	
              a.  

            	
              As
      used in this Agreement, “Group Companies” refer
      to Weifang
      Changda Chemical Co., Ltd., and its parent companies, subsidiaries
      and other affiliates. I recognize and agree that my obligations under this
      Agreement and all terms of this Agreement apply to me regardless of
      whether I am employed by or work for any Group Companies. Furthermore, I
      understand and agree that the terms of this Agreement will continue to
      apply to me even if I transfer at some time from one business unit of the
      Group Companies to another.

            

    

     

    
      	
              b.  

            	
              I
      understand that the Group Companies possess and will possess Proprietary
      Information, which is important to their business. For purposes of this
      Agreement, “Proprietary
      Information” is information that was developed, created, or
      discovered by or on behalf of the Group Companies, or which became or will
      become known by, or was or is conveyed to the Group Companies, which has
      commercial value in the Group Companies’ business. “Proprietary
      Information” includes, but is not limited to, software programs, source
      and object code, algorithms, trade secrets, designs, technology, know-how,
      processes, data, ideas, techniques, inventions (whether patentable or
      not), works of authorship, formulas, business and product development
      plans, customer lists, terms of compensation and performance levels of
      Group Companies’ employees, and other information concerning the Group
      Companies’ actual or anticipated business, research or development, or
      which is received in confidence by or for the Group Companies from any
      other person. I agree and acknowledge that Proprietary Information
      constitutes “trade secrets” of the Group Companies under Chinese law and
      other applicable laws. I understand that my employment creates a
      relationship of confidence and trust between me and the Group Companies
      with respect to Proprietary
Information.

            

    

    
      	
               
      c.

            	
              I
      understand that the Group Companies possess or will possess “Company Documents and Materials”
      which are important to their business. For purposes of this
      Agreement, “Company Documents and Materials” are documents or other media
      or tangible items that contain or embody Proprietary Information or any
      other information concerning the business, operations or plans of the
      Group Companies, whether such documents, media or items have been prepared
      by me or by others. “Company Documents and Materials” include, but are not
      limited to, blueprints, drawings, photographs, charts, graphs, notebooks,
      customer lists, computer disks, tapes or printouts, sound recordings and
      other printed, typewritten or handwritten documents, sample products,
      prototypes and models.

            

    

     

     

    
      
         

      

      
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              2.            

            	
              Confidentiality and
      Assignment. All Proprietary Information, including but not limited
      to all patents, patent rights, copyrights, trade secret rights, trademark
      rights and other rights (including, without limitation, intellectual
      property rights) anywhere in the world in connections therewith shall be
      the sole property of the Group Companies. I hereby assign to the Company
      any and all rights, title and interest I may have or acquire in such
      Proprietary Information. At all times, both during my employment by the
      Company and after its termination, I will keep in confidence and trust and
      will not use or disclose any Proprietary Information or anything relating
      to it (or any information of a third party if disclosed to any Group
      Company by such third party in confidence), without the prior written
      consent of an officer of a Group Company, except as may be necessary in
      the ordinary course of performing my duties to the Group Companies. I
      agree that my confidentiality obligations provided in this paragraph 2
      shall survive the termination of my employment with the Company
      until the Company expressly waives in writing its right to seek
      enforcement of such obligations.

            

    

     

    
      	
              3.            

            	
              Written Records and
      Company Documents. I agree to make and maintain adequate and
      current written records, in a form specified by the Company, of all
      inventions, trade secrets and works of authorship assigned or to be
      assigned to the Company pursuant to this Agreement. All Company Documents
      and Materials shall be the sole property of the Group Companies. I agree
      that during my employment by the Company, I will not remove any Company
      Documents and Materials from the business premises of any Group Company or
      deliver any Company Documents and Materials to any person or entity
      outside the Group Companies, except as I am required to do in connection
      with performing the duties of my employment. I further agree that,
      immediately upon the termination of my employment by me or by the Company
      for any reason, or during my employment if so requested by any Group
      Company, I will return all Company Documents and Materials, apparatus,
      equipment and other physical property, or any reproduction of such
      property, excepting on (i) my personal copies of records relating to my
      compensation; (ii) my personal copies of any materials previously
      distributed generally to stockholders of the Company; and (iii) my copy of
      the Agreement.

            

    

     

     

    
      	
              4.             

            	
              Disclosure of
      Inventions. I will promptly disclose in writing to my immediate
      supervisor, or to such other person designated by the Group Companies, all
      “Inventions,”
      which includes, without limitation, all software programs or
      subroutines, source or object code, algorithms, improvements, inventions,
      works of authorship, trade secrets, technology, designs, formulas, ideas,
      processes, techniques, know-how and data, whether or not patentable, made
      or discovered or conceived or reduced to practice or developed by me,
      either alone or jointly with others, during the term of my employment. I
      will also disclose to the Chairman of Changda International Limited all
      Inventions made, discovered, conceived, reduced to practice, or developed
      by me within six (6) months after the termination of my employment with
      the Company which resulted, in whole or in part, from my prior employment
      by the Company. Such disclosures shall be received by the Group Companies
      in confidence (to the extent such Inventions are not assigned to the Group
      Companies pursuant to paragraph 5 below) and do not extend the assignment
      made in paragraph 5 below.

            

    

     

    
      	
              5.             

            	
              Inventions Property of
      Company. I agree that all inventions that I make, discover,
      conceive, reduce to practice or develop (in whole or in part, either alone
      or jointly with others) during my employment shall be the sole property of
      the Group Companies to the maximum extent permitted by applicable law.
      This assignment shall not extend to Inventions, the assignment of which is
      prohibited by applicable law.

            

    

     

    
      	
              6.

            	
               Other Rights of
      Company. The Group Companies shall be the sole owners of all
      patents, patent rights, copyrights, trade secret rights, trademark rights
      and all other intellectual property or other rights in connection with
      Inventions that are the sole property of the Group Companies. I further
      acknowledge and agree that such Inventions, including, without limitation,
      any computer programs, programming documentation, and other works of
      authorship, are “works made for hire” for purposes of the Group Companies’
      rights under copyright laws in the PRC. I hereby assign to the Company any
      and all rights, title and interest I may have or acquire in such
      Inventions. If in the course of my employment with the Company, I
      incorporate into any Group Company's product, process or machine a prior
      Invention owned by me or in which I have interest, the relevant Group
      Company is hereby granted and shall have a nonexclusive, royalty-free,
      irrevocable, perpetual, sublicensable, worldwide license to make, have
      made, modify, use, market, sell and distribute such prior Invention as
      part of or in connection with such product, process or
      machine.

               

            

    

    
      	
              7.             

            	
              Cooperation. I
      agree to perform, during and after my employment, all acts deemed
      necessary or desirable by the Group Companies to permit and assist them,
      without charge to the Group Companies but at the Group Companies’ expense,
      in further evidencing and perfecting the assignments made to the Group
      Companies under this Agreement and in obtaining, maintaining, defending
      and enforcing patents, patent rights, copyrights, trademark rights, trade
      secret rights or any other rights in connection with such Inventions and
      improvements thereto in any and all countries. Such acts may include, but
      are not limited to, execution of documents and assistance or cooperation
      in legal proceedings. I hereby irrevocably designate and appoint the
      Company and its duly authorized officers and agents, as my agents and
      attorneys-in-fact to act for and on my behalf and instead of me, to
      execute and file any documents, applications or related findings and to do
      all other lawfully permitted acts to further the purposes set forth above
      in paragraph 6, including, without limitation, the perfection of
      assignment and prosecution and issuance of patents, patent applications,
      copyright applications and registrations, trademark applications and
      registrations or other rights in connection with such Inventions and
      improvements thereto with the same legal force and effect as if executed
      by me.

            

    

     

    
      	
              8.             

            	
              Moral Rights.
      Any assignment of copyright hereunder (and any ownership of a
      copyright as a work made for hire) includes all rights of paternity,
      integrity, disclosure and withdrawal and any other rights that may be
      known as or referred to as “moral rights” (collectively “Moral Rights”). To the
      extent such Moral Rights cannot be assigned under applicable law and to
      the extent the following is allowed by the laws in the various countries
      where Moral Rights exist, I hereby waive such Moral Rights and consent to
      any action of the Group Companies that would violate such Moral Rights in
      the absence of such consent.

            

    

     

    
      	
              9.             

            	
              List of Inventions.
      I have attached hereto as Schedule A, a
      complete list of all Inventions or improvements to which I claim ownership
      and that I desire to remove from the operation of this Agreement, and I
      acknowledge and agree that such list is complete. If no such list is
      attached to this Agreement, I represent that I have no such Inventions and
      improvements at the time of signing this
  Agreement.

            

    

     

    
      	
              10.             

            	
              Notification.
      Prior to my submitting or disclosing for possible publication or
      dissemination outside the Group Companies any material prepared by me that
      incorporates information that concerns a Group Company’s business or
      anticipated research, I agree to deliver a copy of such material to an
      officer of the relevant Group Company for his or her review. Within twenty
      (20) days following such submission, the relevant Group Company shall
      notify me in writing whether that Group Company believes such material
      contains any Proprietary Information or Inventions, and I agree to make
      such deletions and revisions as are reasonably requested by that Group
      Company to protect its Proprietary Information and Inventions. I further
      agree to obtain the written consent of the relevant Group Company prior to
      any review of such material by persons outside the Group
      Companies.

            

    

     

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

     

    
      	
              11.            

            	
              Past Employment or
      Agreements. I represent that my performance of all the terms of
      this Agreement and as an employee of the Company does not and will not
      breach any agreement to keep in confidence proprietary information,
      knowledge or data acquired by me in confidence or in trust prior to my
      employment by the Company, and I will not disclose to any Group Company,
      or induce any Group Company to use, any confidential or proprietary
      information or material belonging to any previous employers or others. I
      have not entered into, and I agree I will not enter into, any agreement
      either written or oral in conflict herewith or in conflict with my
      employment with the Company. I further agree to conform to the rules and
      regulations of the Group Companies.

            

    

     

    
      	
              12.            

            	
              Severability.
      If one or more provisions of this Agreement are held to be
      unenforceable under any applicable law, such provisions shall be excluded
      from this Agreement and the remainder of this Agreement shall be
      interpreted as if such provision were so excluded and shall be enforceable
      in accordance with its terms.

            

    

     

    
      	
              13.             

            	
              Consent. I
      hereby authorize the Company to notify my new employer about my rights and
      obligations under this Agreement following the termination of my
      employment with the Company.

            

    

     

    
      	
              14.            

            	
              Entire Agreement.
      This Agreement sets forth the entire agreement and understanding
      between the Company and me relating to the subject matter herein and
      merges all prior discussions between us, including but not limited to any
      and all statements made by any officer, employee or representative of the
      Company regarding the Company’s financial condition or future prospects. I
      understand and acknowledge that, except as set forth in this Agreement,
      the Marshall Islands Appointment Letter and in the employment agreement
      between the Company and me (i) no other representation or inducement has
      been made to me, (ii) I have relied on my own judgment and investigation
      in accepting my employment with the Company, and (iii) I have not relied
      on any representation or inducement made by any officer, employee or
      representative of the Company. No modification of or amendment to this
      Agreement, nor any waiver of any rights under this Agreement, will be
      effective unless such modification or amendment or waiver is in writing
      signed by the Chairman of the Board of the Group Companies and me. I
      understand and agree that any subsequent change in my duties, salary or
      compensation will not affect the validity or scope of this
      Agreement.

            

    

    
      	 
      

    

    
    

    
    

    
      	
               

            

    

    
      	
              15.             

            	
              Successors.
      This Agreement shall he effective as of the first day of my
      employment with the Company and shall be binding upon me, my heirs,
      executor, assigns, and administrators, and shall inure to the benefit of
      the Group Companies, their successors and
  assigns.

            

    

     

     

     

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

     

    
      	
              16.            

            	
              Governing Law.
      This Agreement and the relationship between the parties shall be
      governed by the laws of the People's Republic of China. Whenever there is
      a dispute between me and the Company, I agree that the dispute shall be
      resolved through consultations. Should I and the Company fail to reach a
      settlement, the dispute shall be submitted to a labor dispute arbitration
      commission with competent jurisdiction for arbitration. If either party is
      dissatisfied with the arbitral award issued by the labor dispute
      arbitration commission, that party may bring a lawsuit to the competent
      People's Court.

            

    

     

    
      	
              17.

            	
               Data Transfer.
      I acknowledge and agree that personal data about me, to the extent
      necessary for the administration and implementation of this Agreement and
      other aspects of my employment with the Company, must and may be
      collected, stored, used, processed by or transmitted within the Company
      and to the Company's administrative agents. By my signature below, I
      hereby consent to the collection, transfer, storage, processing and use of
      such personal data, for the above described
  purposes.

            

    

     

    I HAVE
READ THIS AGREEMENT CAREFULLY AND I UNDERSTAND AND ACCEPT THE OBLIGATIONS WHICH
IT IMPOSES UPON ME WITHOUT RESERVATION. NO PROMISES OR REPRESENTATIONS HAVE BEEN
MADE TO ME TO INDUCE ME TO SIGN THIS AGREEMENT. I SIGN THIS AGREEMENT
VOLUNTARILY AND FREELY.

     

    

      	
            	 	 	 	 
	
              /s/
       Zhu HuaRan

            	 	 	
               

            	 
	
              Zhu
      HuaRan

            	 	      
              Date

            	
               

            	 
	
               

            	 	 	
               

            	 

       

      
        
          	
                  Agreed
      by Employed

                   

                	 	 	 	 
	Weifan
      Changda Chemical Co., Ltd.	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                  By:
      Zhu HuaRan

                	 	 	
                   

                	 
	
                  Its:

                	 	 	
                   

                	 
	
                   

                	 	 	
                   

                	 

        

      

    

     

     

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

     

    Schedule A

     

    
      	
              1.  

            	
              The
      following is a complete list of all Inventions or improvements relevant to
      the subject matter of my employment by the Company that have been made or
      discovered or conceived or first reduced to practice by me or jointly with
      others prior to my employment by the Company that I desire to remove from
      the operation of the Company's Proprietary Information and Inventions
      Agreement:

            

    

     

    No
inventions or improvements.

     

    See
below: Any and all inventions regarding:

     

    Additional
sheets attached.

     

    
      	
              2.  

            	
              1
      propose to bring to my employment the following materials and documents of
      a former employer:

            

    

     

    No
materials or documents.

     

    See
below:

    

      	
            	 	 	 	 
	
              /s/
       Zhu HuaRan

            	 	 	
               

            	 
	
              Zhu
      HuaRan

            	 	      
              Date

            	
               

            	 
	
               

            	 	 	
               

            	 

     

     

     

     

     

    12exhibit.htm

     

     

    EXHIBIT
10.1

    

      FOURTH AMENDMENT, dated as of
December _, 2009 (“Fourth
Amendment”), to the AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT,
dated as of September 26, 2007 (as amended, restated, supplemented or otherwise
modified, the “LSA”),
among BioScrip Pharmacy Services, Inc. (“Pharmacy
Services”), BioScrip Infusion Services, Inc. (“Infusion Services
Inc”), BioScrip Pharmacy (NY), Inc. (“Pharmacy
(NY)”), BioScrip PBM Services, LLC (“PBM
Services”), BioScrip Pharmacy, Inc. (“Pharmacy”),
Natural Living, Inc. (“Natural
Living”), BioScrip Infusion Services, LLC (“Infusion Services
LLC) and Bradhurst Specialty Pharmacy, Inc. (“Bradhurst”,
and together with Pharmacy Services, Infusion Services Inc, Pharmacy (NY), PBM
Services, Pharmacy, Natural Living and Infusion Services LLC, each a “Borrower”
and collectively, jointly and severally, the “Borrowers”),
as borrowers, and HFG Healthco-4 LLC (together with its successors and assigns,
the “Lender”),
as the lender.  Unless otherwise defined herein, terms in the LSA are
used herein as therein defined.

       

      The Borrowers and the Lender have
agreed to amend the LSA on the terms and subject to the conditions set forth
herein.

       

      Accordingly, in consideration of the
foregoing and for other good and valuable consideration, the receipt and
sufficiency of which hereby are acknowledged, and subject to the fulfillment of
the conditions set forth below, the parties hereto agree as
follows:

       

      SECTION
1.            AMENDMENTS TO
LSA.

       

      The
following amendments shall become effective as of the Effective
Date:

       

      1.1.            The
defined term “Consolidated Fixed Charge Coverage Ratio” appearing in Exhibit I
of the LSA is hereby amended by (i) deleting such  defined term in its
entirety, and (ii) substituting therefor the following new defined
term:

       

      “Consolidated
Fixed Charge Coverage Ratio” means the ratio, as determined as at the end
of each fiscal quarter of the Parent for the immediately prior 12 month period,
(x) Consolidated EBITDA of the Parent and its Subsidiaries for such period, to
(y) the sum of each of the following items to the extent paid or payable by the
Borrowers in cash during such period: (i) the current portion long-term Debt,
plus (ii) the current portion of Capital Leases, plus (iii) Consolidated Capital
Expenditures (to the extent not funded by or being acquired under permitted
purchase money loans or capital leases), plus (iv) Consolidated Interest
Expense, plus (v) taxes, plus (vi) payment of dividends, distributions,
advances, and loans to officers, Affiliates, and shareholders.

      

      1.2.            The
defined term “Debt/EBITDA Ratio” appearing in Exhibit I of the LSA is hereby
amended by adding the following proviso at the end of such defined
term:

       

      provided, that for the
purposes of calculation of the covenant set forth in clause (v) of Exhibit V
hereto, “Debt/EBITDA Ratio” shall mean the ratio, as determined as at the end of
each fiscal quarter of the Parent, of (x) the average Debt of the Borrowers for
such fiscal quarter, calculated as the arithmetic average of all daily balances
during such fiscal quarter, to (y) Consolidated EBITDA for the immediately prior
12 months.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      1.3.            Exhibit
V of the LSA is hereby amended by (i) deleting clauses (t) and (u) in their
entirety, and (ii) substituting therefor the following new clauses (inserted in
their respective appropriate alphabetical locations):

       

      (t)           
Consolidated Net
Worth.  The Consolidated Net Worth, calculated as at the end of
each fiscal quarter of the Parent, is less than (i) $95,000,000 minus (ii) any
and all write offs of goodwill, deferred tax assets, intangible assets and other
non-cash items as reflected in the Parent’s financial statements.

      

      (u)           Current
Ratio.  The ratio of (i) Current Assets to (ii) Current
Liabilities for each Fiscal Quarter during which the principal amount of the
Revolving Loan exceeded 50% of the Borrowing Limit at any time, is less
1.10:1.00.

      

      SECTION
2. CONDITIONS PRECEDENT

       

      2.1. Effective Date of this
Fourth Amendment.  This Fourth Amendment shall become effective
as of the date (the “Effective
Date”) at such
time when the Lender shall have received fully executed counterparts of this
Fourth Amendment.

       

      SECTION
3.            MISCELLANEOUS

       

      3.1. The Borrowers each hereby certify,
represent and warrant that, after giving effect to this Fourth Amendment, (i)
except as otherwise disclosed in public filings made by the Parent with the
United States Securities and Exchange Commission, the representations and
warranties in the LSA are true and correct, with the same force and effect as if
made on such date, except as they may specifically refer to an earlier date, in
which case they were true and correct as of such date, (ii) no unwaived Default
or Event of Default has occurred or is continuing (nor any event that but for
notice or lapse of time or both would constitute a Default or an Event of
Default), (iii) each of the Borrowers has the corporate power and authority to
execute and deliver this Fourth Amendment, and (iv) no consent of any other
person (including, without limitation, shareholders or creditors of any
Borrower), and no action of, or filing with any governmental or public body or
authority is required to authorize, or is otherwise required in connection with
the execution and performance of this Fourth Amendment, other than, in each
case, such that have been obtained.

       

      3.2. The terms “Agreement”, “hereof”,
“herein” and similar terms as used in the LSA shall mean and refer to, from and
after the effectiveness of this Fourth Amendment, the LSA as amended by this
Fourth Amendment, and as it may in the future be amended, restated, modified or
supplemented from time to time in accordance with its terms.  Except
as specifically agreed herein, nothing herein shall be deemed to be an amendment
or waiver of any covenant or agreement contained in the LSA or any other
Document and each of the parties hereto agrees that all of the covenants and
agreements and other provisions contained in the LSA and the other Documents, as
amended, waived or otherwise modified hereof, are hereby ratified and confirmed
in all respects and shall remain in full force and effect in accordance with
their terms from and after the date of this Fourth Amendment.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      3.3.            Parent
and Chronimed, LLC (f/k/a Chronimed Inc.) each hereby ratifies its Guarantee of
the Guaranteed Obligations (as defined in that certain Amended and Restated
Guaranty, effective as of October 1, 2007, made by Parent and Chronimed, LLC
(f/k/a Chronimed Inc.) (the “Guaranty”))
pursuant to the Guaranty and each of the Borrowers, Parent and Chronimed, LLC
(f/k/a Chronimed Inc.) hereby ratifies its grant of a security interest made
under the Documents.

       

      3.4.            This
Fourth Amendment shall constitute a Document under the LSA

       

      3.5. THIS FOURTH AMENDMENT SHALL, IN
ACCORDANCE WITH SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF
NEW YORK, BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO
ANY CONFLICT OF LAWS PRINCIPLES THEREOF THAT WOULD CALL FOR THE APPLICATION OF
THE LAWS OF ANY OTHER JURISDICTION.

       

      3.6.            The
captions in this Fourth Amendment are for convenience of reference only, are not
part of this Fourth Amendment and shall not affect the construction of, or be
taken into consideration in interpreting, this Fourth Amendment.

       

      3.7.            Any
provision of this Fourth Amendment held to be invalid, illegal or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such invalidity, illegality or unenforceability without affecting the
validity, legality and enforceability of the remaining provisions hereof, and
the invalidity of a particular provision in a particular jurisdiction shall not
invalidate such provision in any other jurisdiction.

       

      3.8. This Fourth Amendment may be executed
in counterparts, each of which when so executed shall be deemed to be an
original and all of which when taken together shall constitute one and the same
agreement.

       

      3.9. Delivery of an executed counterpart of
a signature page by telecopier, .pdf or similar electronic transmission shall be
effective as delivery of a manually executed counterpart.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      IN WITNESS WHEREOF, the
parties hereto have caused this Fourth Amendment to be executed by their
respective officers thereunto duly authorized, as of the date first above
written.

       

      
        	
                BIOSCRIP
      INFUSION SERVICES, INC.

                 

                By:      
      ______________________________

                            
      Name:

                            
      Title:

              	
                BIOSCRIP
      PHARMACY SERVICES, INC.

                 

                By:      
      ______________________________

                            
      Name:

                            
      Title:

              
	
                 

                BIOSCRIP
      PBM SERVICES, LLC

                 

                By:      
      ______________________________

                            
      Name:

                            
      Title:

              	
                 

                BIOSCRIP
      PHARMACY (NY), INC.

                 

                By:       ______________________________

                            
      Name:

                            
      Title:

              
	
                 

                NATURAL LIVING,
      INC.

                 

                By:      
      ______________________________           

                            
      Name:

                            
      Title:

              	
                 

                BIOSCRIP
      PHARMACY, INC.

                 

                By:      
      ______________________________

                            
      Name:

                            
      Title:

              
	
                 

                BIOSCRIP
      INFUSION SERVICES, LLC

                 

                By:      
      ______________________________

                            
      Name:

                            
      Title:

              	
                 

                BRADHURST
      SPECIALTY PHARMACY, INC.

                 

                By:      
      ______________________________           

                            
      Name:

                            
      Title:

              
	
                 

                Solely
      with respect to Section 3.3 hereof:

              	 
      
	
                 

                BIOSCRIP,
      INC.

                 

                By:      
      ______________________________           

                            
      Name:

                            
      Title:

              	
                 

                CHRONIMED,
      LLC (f/k/a Chronimed Inc.)

                 

                By:      
      ______________________________           

                            
      Name:

                            
      Title:

              

      

      

       
 

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      

      
        	
                HFG
      HEALTHCO-4 LLC,

                as
      Lender

                 

                By:  HFG
      Healthco-4, Inc., a member

                 

                By:      
      _____________________________ 

                            
      Name:  

                            
      Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}]]