Document:

exhibit108.htm

    

      EMPLOYMENT
AGREEMENT

       

      THIS
AGREEMENT (the “Agreement”), made in Chengdu, China as of February 2, 2009,
between Apollo Solar Energy, Inc., a Nevada corporation (the “Company”), and
Fong Heung Sang (“Executive”).

       

      WHEREAS,
the Company desires to employ Executive in the capacity of the Chief Financial
Officer (CFO) , and Executive desires to accept such employment on the terms and
conditions hereinafter set forth;

       

      NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants and agreements hereinafter
set forth, the Company and Executive agree as follows:

       

      1. Term.

       

      Unless
earlier terminated in accordance with Section 4 hereof, Executive’s employment
hereunder shall commence as of the date hereof and end on the second anniversary
thereof (the “Term”).

       

      2. Employment.

       

      (a) Employment by the
Company.  Executive agrees to be employed by the Company during
the Term upon the terms and subject to the conditions set forth in this
Agreement.

       

      (b) Performance of
Duties.  Throughout the Term, Executive shall faithfully and
diligently perform Executive’s duties in conformity with the directions of the
Company and serve the Company to the best of Executive’s
ability.  Executive shall devote his full business time and best
efforts to the business and affairs of the Company.  Executive shall
be responsible for such duties as may be assigned by the Company from time to
time, which duties may include duties related to the business of the Company’s
parents or affiliates without additional compensation therefor.

       

      (c) Place of
Performance.  Executive’s primary place of employment shall be
located in Chengdu, China/US or its immediate vicinity. Executive recognizes
that his duties will require, at the Company’s expense, travel to domestic and
international locations.

       

      3. Compensation and
Benefits.

       

      (a) Draw.  The
Company agrees to pay to Executive a draw (“Draw”).  During the first
period of the Term up to May 31, 2009, the Draw shall be payable at the annual
rate of $70,000.  During the second period of the term between June 1,
2009 to December 31, 2009, the Draw shall be payable at the annual rate of
$90,000, and third period of the Term between January 1, 2009 to the end of the
term of this agreement, the Draw shall be payable at the annual rate of
$110,000. Payments of the Draw shall be payable in equal installments in
accordance with the Company’s standard payroll practices.

       

      
        
           

        

        
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      (b) Benefits and
Perquisites.  Executive shall not be entitled to participate in
any benefit plan, program, or arrangement or receive benefits or other
remuneration from the Company except as specifically provided in this Section 3
and in Section 5 below.  Without limiting the foregoing, Executive
acknowledges that the Company does not currently make available to its employees
medical or dental health coverage and has no current intention to do
so.

       

      (c) Stock Options.
Executive shall be entitled to a grant of 750,000 shares of the option of
the Company, vested in equal number of shares over a period of 24 months on a
monthly basis beginning the first day this agreement is effective. Exercise
price of the options shall be set equal to the price of the stock of the Company
during its most recent round of raising funds prior to the day this agreement
takes effect.

       

      (d) Home Leave. Executive
shall be entitled to a paid home leave program such that Executive shall have a
five-day home leave every 6 (six) weeks. The Company shall pay for the round
trip flight ticket and expense for such home leave.

       

      (e) Company Car and
Quarters. Executive shall be entitled to car and quarters provided by the
Company during his service in Chengdu, China.

       

      (f) Business
Expenses.  The Company agrees to reimburse Executive for all
reasonable and necessary travel, business entertainment and other business
expenses incurred by Executive in connection with the performance of his duties
under this Agreement.  Such reimbursements shall be made by the
Company on a timely basis upon submission by Executive of vouchers in accordance
with the Company’s standard procedures.

       

      (g) No Other Compensation or
Benefits; Payment.  The compensation and benefits specified in
this Section 3 and in Section 5 of this Agreement shall be in lieu of any and
all other compensation and benefits.  Payment of all compensation and
benefits to Executive specified in this Section 3 and in Section 5 of this
Agreement (i) shall be made in accordance with the relevant Company policies in
effect from time to time, including normal payroll practices, and (ii) shall be
subject to all legally required and customary withholdings.

       

      (h) Cessation of
Employment.  In the event Executive shall cease to be employed
by the Company for any reason, then Executive’s compensation and benefits shall
cease on the date of such event, except as otherwise specifically provided
herein or in any applicable employee benefit plan or program or as required by
law.

       

      4. Termination of
Employment.  Executive’s employment hereunder may be terminated
prior to the end of the Term under the following circumstances.

       

      (a) Death.  Executive’s
employment hereunder shall terminate upon Executive’s death.

       

      (b) Executive Becoming Totally
Disabled.  The Company may terminate Executive’s employment
hereunder at any time after Executive becomes “Totally Disabled.”  For
purposes of this Agreement, Executive shall be “Totally Disabled” in the event
Executive is unable to perform the duties and responsibilities contemplated
under this Agreement for a period of 90 consecutive days due to physical or
mental incapacity or impairment.  During any period that Executive
fails to perform Executive’s duties hereunder as a result of incapacity due to
physical or mental illness (the “Disability Period”), Executive shall continue
to receive the compensation and benefits provided by Section 3 of this Agreement
until Executive’s employment hereunder is terminated; provided, however, that
the amount of base compensation and benefits received by Executive during the
Disability Period shall be reduced by the aggregate amounts, if any, payable to
Executive under any disability benefit plan or program provided to Executive by
the Company.

       

      
        
           

        

        
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      (c) Termination by the Company
for Cause.  The Company may terminate Executive’s employment
hereunder for Cause at any time after providing written notice to
Executive.  For purposes of this Agreement, the term “Cause” shall
mean any of the following:  (i) the neglect or failure or refusal of
Executive to perform Executive’s duties hereunder (other than as a result of
total or partial incapacity due to physical or mental illness); (ii) the
engaging by Executive in gross misconduct or gross negligence in connection with
his employment or otherwise affecting the Company, its affiliates, or any
customers thereof; (iii) perpetration of a fraud against or affecting the
Company or any of its affiliates or any customer, client, agent, or employee
thereof; (iv) any willful or intentional act that could reasonably be expected
to injure the reputation, business, or business relationships of the Company or
any of its affiliates or Executive’s reputation or business relationships;
(v) Executive’s material failure to comply with, and/or a material
violation by Executive of, the internal policies of the Company or any of its
affiliates and/or procedures or any laws or regulations applicable to
Executive’s conduct as an employee of the Company; (vi) Executive’s commission
of a felony or any crime involving fraud, dishonesty or moral turpitude; (vii)
the breach of a covenant set forth in Section 6; or (viii) any other material
breach by Executive of this Agreement; provided, however, that, if susceptible
of cure, a termination by the Company under Sections 4(c)(i), 4(c)(v) or
4(c)(viii) shall be effective only if, within 14 days following delivery of a
written notice by the Company to Executive that the Company is terminating his
employment for Cause, Executive has failed to cure the circumstances giving rise
to Cause.

       

      (d) Termination by the Company
Without Cause.  The Company may terminate Executive’s
employment hereunder at any time for any reason or no reason by giving Executive
thirty (30) days prior written notice of the termination.  Following
any such notice, the Company may reduce or remove any and all of Executive’s
duties, positions and titles with the Company.

       

      (e) Termination by
Executive.  Executive may terminate his employment hereunder at
any time for any reason or no reason by giving the Company thirty (30) days
prior written notice of the termination.  Following any such notice,
the Company may reduce or remove any and all of Executive’s duties, positions
and titles with the Company.

       

      5. Compensation Following
Termination Prior to the End of the Term.  In the event that
Executive’s employment hereunder is terminated prior to the end of the Term,
Executive shall be entitled only to the following compensation and benefits upon
such termination:

       

      (a) General.  On
any termination of Executive’s employment, he shall be entitled to:

       

      (i) any
accrued but unpaid Draw for services rendered through the date of
termination;

       

      (ii) any
vacation accrued to the date of termination;

       

      (iii) any
accrued but unpaid expenses through the date of termination required to be
reimbursed in accordance with Section 3(d) of this Agreement; and

       

      (iv) receive
any benefits to which he may be entitled upon termination pursuant to the plans
and programs referred to in Section 3(c) hereof in accordance with the terms of
such plans and programs or as may be required by applicable law.

       

      
        
           

        

        
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      (b) Termination by the Company
Without Cause.  In the event that Executive’s employment is
terminated prior to the expiration of the Term by the Company without Cause
pursuant to Section 4(d), Executive shall be entitled only to the
following:

       

      (i) those
items identified in Section 5(a);

       

      (ii)       a
lump sum payment equal to 24 months cash compensation based on the amount of the
Draw immediately proceeding the month of the termination;

       

       (iii)           The
Executive shall also be entitled to vest all the options that remain un-vested,
and to keep the options for a period of 12 (twelve) months after the
termination.

       

      

       

      (c) Effect of Material Breach of
Section 6 on Compensation and Benefits Following Termination of Employment
Pursuant to Section 5.  If, at the time of the termination of
Executive’s employment or any time thereafter, Executive is in material breach
of any covenant contained in Section 6 hereof, Executive (or his estate, as
applicable) shall not be entitled to any payment (or if payments have commenced,
any continued payment) under Sections 5(c)(ii).

       

      (d) No Further Liability;
Release.  Payment made and performance by the Company in
accordance with this Section 5 shall operate to fully discharge and release the
Company and its directors, officers, employees, affiliates, stockholders,
successors, assigns, agents and representatives from any further obligation or
liability with respect to Executive’s employment and termination of
employment.  Other than providing the compensation and benefits
provided for in accordance with this Section 5, the Company and its directors,
officers, employees, affiliates, stockholders, successors, assigns, agents and
representatives shall have no further obligation or liability to Executive or
any other person under this Agreement.  The payment of any amounts
pursuant to this Section 5 (other than payments required by law) subsequent to
the termination of Executive’s employment is expressly conditioned upon the
delivery by Executive to the Company of a release in form and substance
reasonably satisfactory to the Company of any and all claims Executive may have
against the Company, its parents and affiliates, and their respective directors,
officers, employees, stockholders, successors, assigns, agents and
representatives arising out of or related to Executive’s employment by the
Company and the termination of such employment.

       

      (e) Expiration of
Term.  If Executive’s employment continues following expiration
of the Term, such employment shall be at will, meaning that such employment may
be terminated at any time by Executive or the Company with or without Cause and
without further obligation, on such terms and conditions as may be established
by the Company from time to time.  Without limiting the foregoing, the
severance provision contained in Section 5(c)(ii) shall survive the expiration
of the Term unless otherwise agreed by the Company in writing.

       

      6. Exclusive Employment;
Noncompetition; Nonsolicitation; Nondisclosure of Proprietary Information;
Surrender of Records; Inventions and Patents.

       

      6.1           No Conflict; No Other
Employment.  During the period of Executive’s employment with
the Company, Executive shall not:  (i) engage in any activity which
conflicts or interferes with or derogates from the performance of Executive’s
duties hereunder nor shall Executive engage in any other business activity,
whether or not such business activity is pursued for gain or profit and
including service as a director of any other company, except as approved in
advance in writing by the Company, provided, however, that Executive shall be
entitled to manage his personal investments and otherwise attend to personal
affairs, including charitable, social and political activities, in a manner that
does not unreasonably interfere with his responsibilities hereunder; or (ii)
accept or engage in any other employment, whether as an employee or consultant
or in any other capacity, and whether or not compensated therefor.

       

      
        
           

        

        
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      6.2           Noncompetition;
Nonsolicitation.

       

      (a) Executive
acknowledges and recognizes the highly competitive nature of the Company’s
business and that access to the Company’s confidential records and proprietary
information renders him special and unique within the Company’s
industry.  In consideration of the payment by the Company to Executive
of amounts that may hereafter be paid to Executive pursuant to this Agreement
(including, without limitation, pursuant to Sections 3 and 5 hereof) and other
obligations undertaken by the Company hereunder, Executive agrees that during
(i) his employment with the Company and (ii) the period beginning on the date of
termination of employment for any reason and ending two years after the date of
termination of employment (the “Post-Employment Period”), Executive shall not,
directly or indirectly, engage (as owner, investor, partner, stockholder,
employer, employee, consultant, advisor, director or otherwise) in any Competing
Business anywhere in any
geographic area or market where Company or any of its affiliated companies are
conducting any business, provided that the provisions of this Section
6.2(a) will not be deemed breached merely because Executive owns less than 1% of
the outstanding common stock of a publicly-traded company.  For
purposes of this Agreement, “Competing Business” shall mean (i) any business
engaged in the sales, marketing, and/or product development of specialty
printing or packaging products for the horticulture industry; and (ii) any
other business in which the Company is then engaged.

       

      (b) In
further consideration of the payment by the Company to Executive of amounts that
may hereafter be paid to Executive pursuant to this Agreement (including,
without limitation, pursuant to Sections 3 and 5 hereof) and other obligations
undertaken by the Company hereunder, Executive agrees that during his employment
and the Post-Employment Period, he shall not, directly or indirectly, (i)
solicit, encourage or attempt to solicit or encourage any of the employees,
agents, consultants or representatives of the Company or any of its affiliates
to terminate his, her, or its relationship with the Company or such affiliate;
(ii) solicit, encourage or attempt to solicit or encourage any of the
employees, agents, consultants or representatives of the Company or any of its
affiliates to become employees, agents, representatives or consultants of any
other person or entity; (iii) solicit or attempt to solicit any supplier,
customer, vendor or distributor of the Company or any of its affiliates with
respect to any product or service being furnished, made, sold or leased to or by
the Company or such affiliate; or (iv) persuade or seek to persuade any supplier
or customer of the Company or any affiliate to cease to do business or to reduce
the amount of business which any supplier or customer has customarily done or
contemplates doing with the Company or such affiliate, whether or not the
relationship between the Company or its affiliate and such supplier or customer
was originally established in whole or in part through Executive’s
efforts.  For purposes of this Section 6.2(b) only, during the
Post-Employment Period, the terms “supplier,” “customer,” “vendor” and
“distributor” shall mean a supplier, customer, vendor or distributor who has
done business with the Company or any of its affiliates within twelve months
preceding the termination of Executive’s employment.

       

      (c) During
Executive’s employment with the Company and the Post-Employment Period,
Executive agrees that upon the earlier of Executive’s (i) negotiating with any
Competitor (as defined below) concerning the possible employment of Executive by
the Competitor, (ii) receiving an offer of employment from a Competitor, or
(iii) becoming employed by a Competitor, Executive will (A) immediately provide
notice to the Company of such circumstances and (B) provide copies of Section 6
of this Agreement to the Competitor.  Executive further agrees that
the Company may provide notice to a Competitor of Executive’s obligations under
this Agreement, including without limitation Executive’s obligations pursuant to
Section 6 hereof.  For purposes of this Agreement, “Competitor” shall
mean any entity (other than the Company or any of its affiliates) that engages,
directly or indirectly, in any Competing Business.

       

      (d) Executive
understands that the provisions of this Section 6.2 may limit his ability to
earn a livelihood in a business similar to the business of the Company or its
affiliates but nevertheless agrees and hereby acknowledges that the
consideration provided under this Agreement, including any amounts or benefits
provided under Sections 3 and 5 hereof and other obligations undertaken by the
Company hereunder, is sufficient to justify the restrictions contained in such
provisions.  In consideration thereof and in light of Executive’s
education, skills and abilities, Executive agrees that he will not assert in any
forum that such provisions prevent him from earning a living or otherwise are
void or unenforceable or should be held void or unenforceable.

       

      
        
           

        

        
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      6.3           Proprietary
Information.  Executive acknowledges that during the course of
his employment with the Company he will necessarily have access to and make use
of proprietary information and confidential records of the Company and its
affiliates.  Executive covenants that he shall not during the Term or
at any time thereafter, directly or indirectly, use for his own purpose or for
the benefit of any person or entity other than the Company, nor otherwise
disclose, any proprietary information to any individual or entity, unless such
disclosure has been authorized in writing by the Company or is otherwise
required by law.  Executive acknowledges and understands that the term
“proprietary information” includes, but is not limited to:  (a) the
software products, programs, applications, and processes utilized by the Company
or any of its affiliates; (b) the name and/or address of any customer or
vendor of the Company or any of its affiliates or any information concerning the
transactions or relations of any customer or vendor of the Company or any of its
affiliates with the Company or such affiliate or any of its or their partners,
principals, directors, officers or agents; (c) any information concerning any
product, technology, or procedure employed by the Company or any of its
affiliates but not generally known to its or their customers, vendors or
competitors, or under development by or being tested by the Company or any of
its affiliates but not at the time offered generally to customers or vendors;
(d) any information relating to the computer software, computer systems, pricing
or marketing methods, sales margins, cost of goods, cost of material, capital
structure, operating results, borrowing arrangements or business plans of the
Company or any of its affiliates; (e) any information which is generally
regarded as confidential or proprietary in any line of business engaged in by
the Company or any of its affiliates; (f) any business plans, budgets,
advertising or marketing plans; (g) any information contained in any of the
written or oral policies and procedures or manuals of the Company or any of its
affiliates; (h) any information belonging to customers or vendors of the Company
or any of its affiliates or any other person or entity which the Company or any
of its affiliates has agreed to hold in confidence; (i) any inventions,
innovations or improvements covered by this Agreement; and (j) all written,
graphic and other material relating to any of the
foregoing.  Executive acknowledges and understands that information
that is not novel or copyrighted or patented may nonetheless be proprietary
information.  The term “proprietary information” shall not include
information generally available to and known by the public or information that
is or becomes available to Executive on a non-confidential basis from a source
other than the Company, any of its affiliates, or the directors, officers,
employees, partners, principals or agents of the Company or any of its
affiliates (other than as a result of a breach of any obligation of
confidentiality).

       

      6.4           Confidentiality and
Surrender of Records.  Executive shall not during the Term or
at any time thereafter (irrespective of the circumstances under which
Executive’s employment by the Company terminates), except as required by law,
directly or indirectly publish, make known or in any fashion disclose any
confidential records to, or permit any inspection or copying of confidential
records by, any individual or entity other than in the course of such
individual’s or entity’s employment or retention by the Company.  Upon
termination of employment for any reason or upon request by the Company,
Executive shall deliver promptly to the Company all property and records of the
Company or any of its affiliates, including, without limitation, all
confidential records.  For purposes hereof, “confidential records”
means all correspondence, reports, memoranda, files, manuals, books, lists,
financial, operating or marketing records, magnetic tape, or electronic or other
media or equipment of any kind which may be in Executive’s possession or under
his control or accessible to him which contain any proprietary
information.  All property and records of the Company and any of its
affiliates (including, without limitation, all confidential records) shall be
and remain the sole property of the Company or such affiliate during the Term
and thereafter.

       

      6.6           Enforcement.  Executive
acknowledges and agrees that, by virtue of his position, his services and access
to and use of confidential records and proprietary information, any violation by
him of any of the undertakings contained in this Section 6 would cause the
Company and/or its affiliates immediate, substantial and irreparable injury for
which it or they have no adequate remedy at law.  Accordingly,
Executive agrees and consents to the entry of an injunction or other equitable
relief by a court of competent jurisdiction restraining any violation or
threatened violation of any undertaking contained in this Section
6.  Executive waives posting by the Company or its affiliates of any
bond otherwise necessary to secure such injunction or other equitable
relief.  Rights and remedies provided for in this Section 6 are
cumulative and shall be in addition to rights and remedies otherwise available
to the parties hereunder or under any other agreement or applicable
law.

       

      
        
           

        

        
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      7. Assignment and
Transfer.

       

      (a) Company.  This
Agreement shall inure to the benefit of and be enforceable by, and may be
assigned by the Company without Executive’s consent, to any affiliate of the
Company, any purchaser of the Company’s business or assets or a portion thereof,
or any successor to the Company or any assignee thereof (whether direct or
indirect, by purchase, merger, consolidation or otherwise).

       

      (b) Executive. The
parties hereto agree that Executive is obligated under this Agreement to render
personal services during the Term of a special, unique, unusual, extraordinary
and intellectual character, thereby giving this Agreement special
value.  Executive’s rights and obligations under this Agreement shall
not be transferable by Executive by assignment or otherwise, and any purported
assignment, transfer or delegation thereof shall be void; provided, however,
that if Executive shall die, all amounts then payable to Executive hereunder
shall be paid in accordance with the terms of this Agreement to Executive’s
estate.

       

      8. Miscellaneous.

       

      (a) Other
Obligations.  Executive represents and warrants that neither
Executive’s employment with the Company nor Executive’s performance of
Executive’s obligations hereunder will conflict with or violate or otherwise are
inconsistent with any other obligations, legal or otherwise, which Executive may
have.  Executive covenants that he shall perform his duties hereunder
in a professional manner and not in conflict or violation, or otherwise
inconsistent with other obligations legal or otherwise, which Executive may
have.

       

      (b) Nondisclosure; Other
Employers.  Executive will not disclose to the Company, use, or
induce the Company to use, any proprietary information, trade secrets or
confidential business information of others.  Executive represents and
warrants that Executive does not possess any property, proprietary information,
trade secrets and confidential business information belonging to any prior
employers.

       

      (c) Cooperation.  Following
termination of employment with the Company for any reason, Executive shall
cooperate with the Company, as requested by the Company, to effect a transition
of Executive’s responsibilities and to ensure that the Company is aware of all
matters being handled by Executive.

       

      (d) Protection of
Reputation.  During the Term and thereafter, Executive agrees
that he will take no action which is intended, or would reasonably be expected,
to harm the Company or any of its affiliates or its or their reputation or which
would reasonably be expected to lead to unwanted or unfavorable publicity to the
Company or its affiliates.  Nothing herein shall prevent Executive
from making any truthful statement in connection with any legal proceeding or
investigation by the Company or any governmental authority.

       

      (e) Choice of Law; Consent to
Jurisdiction.  This Agreement shall be governed by and
construed (both as to validity and performance) and enforced in accordance with
the internal laws of the State of California applicable to agreements made and
to be performed wholly within such jurisdiction, without regard to the
principles of conflicts of law or where the parties are located at the time a
dispute arises.  Any action concerning any dispute arising out of or
relating to this Agreement or the employment of Executive by the Company must be
brought in a court situated in California, and each party hereto consents
and submits to the jurisdiction of any state or federal court sitting in
California for any such action.

       

      (f) Entire
Agreement.  This Agreement contains the entire agreement and
understanding between the parties hereto in respect of Executive’s employment
and supersedes, cancels and annuls any prior or contemporaneous written or oral
agreements, understandings, commitments and practices between them respecting
Executive’s employment, including all prior employment agreements between the
Company and Executive, which agreement(s) hereby are terminated and shall be of
no further force or effect.

       

      
        
           

        

        
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      (g) Amendment.  This
Agreement may be amended only by a writing which makes express reference to this
Agreement as the subject of such amendment and which is signed by Executive and,
on behalf of the Company, by its duly authorized officer.

       

      (h) Severability. If any
provision of this Agreement or the application of any such provision to any
party or circumstances shall be determined by any court of competent
jurisdiction or arbitration panel to be invalid or unenforceable to any extent,
the remainder of this Agreement, or the application of such provision to such
person or circumstances other than those to which it is so determined to be
invalid or unenforceable, shall not be affected thereby, and each provision
hereof shall be enforced to the fullest extent permitted by law.  If
any provision of this Agreement, or any part thereof, is held to be invalid or
unenforceable because of the scope or duration of or the area covered by such
provision, the parties hereto agree that the court or arbitration panel making
such determination shall reduce the scope, duration and/or area of such
provision (and shall substitute appropriate provisions for any such invalid or
unenforceable provisions) in order to make such provision enforceable to the
fullest extent permitted by law and/or shall delete specific words and phrases,
and such modified provision shall then be enforceable and shall be
enforced.  The parties hereto recognize that if, in any judicial or
arbitral proceeding, a court or arbitration panel shall refuse to enforce any of
the separate covenants contained in this Agreement, then that invalid or
unenforceable covenant contained in this Agreement shall be deemed eliminated
from these provisions to the extent necessary to permit the remaining separate
covenants to be enforced.  In the event that any court or arbitration
panel determines that the time period or the area, or both, are unreasonable and
that any of the covenants is to that extent invalid or unenforceable, the
parties hereto agree that such covenants will remain in full force and effect,
first, for the greatest time period, and second, in the greatest geographical
area that would not render them unenforceable.

       

      (i) Construction.  The
headings and captions of this Agreement are provided for convenience only and
are intended to have no effect in construing or interpreting this
Agreement.  The language in all parts of this Agreement shall be in
all cases construed according to its fair meaning and not strictly for or
against the Company or Executive.  As used herein, the words “day” or
“days” shall mean a calendar day or days.

       

      (j) Nonwaiver.  Neither
any course of dealing nor any failure or neglect of either party hereto in any
instance to exercise any right, power or privilege hereunder or under law shall
constitute a waiver of any other right, power or privilege or of the same right,
power or privilege in any other instance.  All waivers by either party
hereto must be contained in a written instrument signed by the party to be
charged and, in the case of the Company, by its duly authorized
officer.

       

      (k) Notices.  Any
notice required or permitted hereunder shall be in writing and shall be
sufficiently given if personally delivered or if sent by registered or certified
mail, postage prepaid, with return receipt requested, addressed:  (i)
in the case of the Company, to No. 485, Teng Fei Third Road,
Shuangliu Southwest Airport Economic Development Zone, Shuangliu, Chengdu,
China; and (ii) in the case of Executive, to Executive’s last known
address as reflected in the Company’s records, or to such other address as
Executive shall designate by written notice to the Company.  Any
notice given hereunder shall be deemed to have been given at the time of receipt
thereof by the person to whom such notice is given if personally delivered or at
the time of mailing if sent by registered or certified mail.

       

      (l) Assistance in Proceedings,
Etc.  Executive shall, without additional compensation, during
and after the Term, upon reasonable notice, furnish such information and proper
assistance to the Company and its affiliates as may reasonably be required by
the Company or its affiliates in connection with any legal or quasi-legal
proceeding, including any external or internal investigation, involving the
Company or any of its affiliates.

       

      (m) Survival.  Cessation
or termination of Executive’s employment with the Company shall not result in
termination of this Agreement.  The respective obligations of
Executive and the Company as provided in Sections 5, 6, 7 and 8 of this
Agreement shall survive cessation or termination of Executive’s employment
hereunder.

       

      (n) Section 409A of the
Code. The Company makes no representations regarding the tax implications
of the compensation and benefits to be paid to Executive under this Agreement,
including, without limitation, under Section 409A of the Internal Revenue Code
of 1986, as amended (the “Code”).  The parties agree that in the event
Executive or the Company reasonably determines that the terms hereof would
result in Executive being subject to tax under Section 409A of the Code,
Executive and the Company shall negotiate in good faith to amend this Agreement
to the extent necessary to prevent the assessment of any such tax, including by
delaying the payment dates of any amounts hereunder.

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      (o) Counterparts.  This
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original and all of which together shall be deemed to be one and the
same instrument.

       

      IN
WITNESS WHEREOF, the Company has caused this Agreement to be duly executed on
its behalf by an individual thereunto duly authorized and Executive has duly
executed this Agreement, all as of the date and year first written
above.

       

      

       

      

       

      Apollo
Solar Energy,
Inc:                                                                           EXECUTIVE:

      

      

      

      

      By: /s/Hou
Renyi                                                                                       
By: /s/Fong Heung
Sang 

             Name: Hou
Renyi                                                                                       Name:
Fong Heung Sang

                 Title:
Chairman & CEO

      

       

      

      
        
           

        

        
          10ex10-6.htm

    Exhibit 10.6

     

    MODIFICATION,
RENEWAL AND EXTENSION AGREEMENT

     

     

    NOTICE
OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE
ANY OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST
IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR
SOCIAL SECURITY NUMBER OR YOUR DRIVER’S LICENSE NUMBER.

     

    
      	
              THE
      STATE OF TEXAS

            	
              §

            
	 
      	
              §

            
	
              COUNTY
      OF HARRIS

            	
              §

            

    

     

    WHEREAS, The
Mint Leasing, Inc., 323 N. Loop W., Houston, Texas 77008 (referred to as
“Maker” and also as “Grantor”, whether one or more), is legally obligated to pay
the unpaid principal balance of that certain Promissory Note Revolving Line of Credit (the
“Promissory Note”) dated February 16,
2007, in the original principal amount of Thirty Million and No/100 Dollars
($30,000,000.00), executed by Maker, payable to the order of Sterling
Bank, 2550 North Loop West, Suite 600, Houston, Harris County, Texas
77092(“Payee”), and as more fully described in and secured by the liens
evidenced by the following:

     

    
      
        	 	
                (a)

              	
                This
      note is secured by a security interest created in a security agreement and
      Uniform Commercial Code - Financing Statement - UCC 1 of even date
      herewith from Maker to Payee that covers such personal property and other
      property as described therein , including but not limited to all Eligible
      Leases, as defined in the Loan Agreement between Maker and Payee and the
      vehicles leased pursuant to the Eligible Leases
    (“Property”);

              
	 	 
      	 
      
	 	
                (b)

              	
                Guaranties
      of Jerry Parish and Victor Garcia
      (“Guarantor” and/or “Guarantors”); and

              
	 	 
      	 
      
	 	
                (c)

              	
                Assignment
      of life insurance policies in the amount of $1,000,000.00 each, on the lives of Jerry Parish and Victor Garcia, in favor
      of Payee;

              

      

    

     

    the
Promissory Note being secured by the liens therein created or mentioned against
the property described therein or herein (the “Property”). Maker and Grantor
hereby expressly acknowledge, renew, extend and recognize the validity of the
liens (said liens and security interests being hereinafter collectively referred
to as the "Liens") against the Property and agree that the Property secures the
indebtedness evidenced hereby;

     

    WHEREAS, Maker has requested a modification,
renewal, extension and increase of the Promissory Note so as to increase, extend
and renew the Promissory Note and to extend and carry forward all of the
aforementioned Liens on the Property, together with all other liens and security
interest, now in effect or promised hereby, securing the payment of the
Promissory Note;

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    WHEREAS , it is expressly agreed that the
Promissory Note evidences a revolving line of credit, the maximum principal
amount of which was Thirty Million and No/100
Dollars ($30,000,000.00) and by the Modification, Renewal and Extension Agreement
dated May 15 , 2008, increased to Thirty ThreeMillion and No/100 Dollars
($33,000,000.00) and renewed and extended by the Modification, Renewal and Extension Agreement
dated September 2 , 2008 and additionally
renewed and extended by the Modification,
Renewal and Extension Agreement dated December 2, 2008 and by the terms hereof is
renewed and extended in the principal amount of Thirty Three Million and No/100 Dollar
($33,000,000.00); the amount of any advance and paymentsrecorded by Payee
are maintained on a schedule and shall be binding upon Maker as to the amount
owed by Maker. There shall be no further advances pursuant to the Promissory
Note.

     

    WHEREAS, Payee, the legal owner and holder of
the Promissory Note and the Liens, in consideration of these premises and at the
request of Maker and Grantor has agreed to modify, renew and/or extend the
Promissory Note (the Promissory Note, as hereinafter modified, renewed and/or
extended, being also referred to as the “Note”) as hereinafter
provided;

     

    NOW, THEREFORE, in consideration of the
increase, modification and renewal of the Promissory Note as hereinafter set
forth, the Maker hereby renews the Promissory Note and promises to pay to the
order of the Payee at its banking house in the City of Houston, Harris County,
Texas, in lawful money of the United States of America, the advanced and unpaid
principal amount of the Note, together with interest on the unpaid principal
balance hereof from time to time outstanding until maturity at the Prime Rate (floating ), plus one and one half percent (1.50%) per annum, which shall be
adjusted daily to the rate in effect, however the Stated Rate (as defined
herein), shall never be less that five and
one-quarter percent (5.25%) per
annum. The term “Prime Rate”, as used herein, shall mean the prime rate as
published in The Wall Street Journal’s “Money Rates” table. If multiple prime
rates are quoted in the table, then the average of such rates will be the Prime
Rate. In the event that the prime rate is no longer published in the “Money
Rates” table, then Payee will choose a substitute Prime Rate which is based upon
comparable information; provided, however, that the rate of interest shall never
exceed the maximum permitted by law. Any change in interest rate resulting from
a change in the Prime Rate shall be effective at the beginning of the business
day on which such change in the Prime Rate becomes effective. Interest shall be
due and payable monthly as it accrues; matured unpaid principal and earned
unpaid interest shall bear interest at the lesser of eighteen percent (18%) per
annum or Highest Lawful Rate, from date of maturity until paid.

     

    The rate
from time to time in effect is herein referred to as the “Stated Rate”; provided
, however, in no event shall interest on this Promissory Note Revolving Line of
Credit (“Note”) ever be charged or paid at a rate greater than the maximum non
-usurious rate permitted by applicable federal or Texas law from time to time in
effect, whichever shall permit the higher lawful rate (the “Highest Lawful
Rate”).

     

    If at any
time or times the Stated Rate would exceed the Highest Lawful Rate but for the
limitation set forth above, the rate of interest to accrue on the unpaid
principal balance of the Note during all such times shall be limited to the
Highest Lawful Rate, but any subsequent reduction in the Stated Rate due to
reductions in the Prime Rate shall not become effective to reduce the interest
rate payable below the Highest Lawful Rate until the total amount of interest
accrued on the unpaid balance of the Note equals the total amount of interest
which would have accrued if the Stated Rate had at all times been in
effect.

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    Interest
shall be computed on the basis of the actual number of days elapsed in a year
composed of 360 days; however, if such computation would cause the Stated Rate
to exceed the Highest Lawful Rate, interest shall be computed on the basis of a
year composed of 365 or 366 days, as the case may be. At all such times, if any,
as Texas law shall establish the Highest Lawful Rate, the Highest Lawful Rate
shall be the “indicated rate ceiling” (as defined in V.T.C.A., Finance Code,
Chapter 303, as amended) from time to time in effect; provided that Payee may
also rely on alternative maximum rates of interest from time to time in effect
under other applicable laws, if they are higher.

     

    Payment
is due as follows:

     

    One
monthly installment of interest only, due and payable on April 2, 2009 and thereafter commencing May 2, 2009, monthly installments of principle
and interest, with each subsequent installment being due and payable on the same
day of each succeeding calendar month thereafter until October 2, 2009, when the then remaining unpaid
principal and accrued unpaid interest of this Note is due and payable. The
amount of the monthly principal and interest payments shall be based on an
amortization of the advanced and unpaid principal amount hereof over a forty-two (42) month period at the Stated Rate.
Interest will be calculated on the unpaid principal to the date of each
installment. Each payment will be credited first to the accrued unpaid interest
and then to reduction of principal. All funds deposited in account number 21061882 at Payee, shall be credited daily, to
the accrued unpaid interestfirst and thento reduction of principal. To the
extent necessary the Loan Agreement Termination Date (as defined in the Loan
Agreement of even date with the Promissory Note) is modified to be October 2, 2009.

     

    Whenever
any payment to be made under the Note shall be stated to be due on a Saturday,
Sunday or legal holiday for commercial banks under the laws of the State of
Texas, then such payment shall be made on the next succeeding business
day.

     

    In
addition to all principal and accrued interest on the Note, Maker agrees to pay
(a) all reasonable costs and expenses incurred by all owners and holders of the
Note in collecting the Note through probate, reorganization, bankruptcy or any
other proceeding, (b) the reasonable attorneys' fees when and if the Note is
placed in the hands of an attorney for collection after default, and (c) the
reasonable attorneys' fees, costs and expenses incurred by Payee in connection
with the preparation and filing of the agreements and documents contemplated
herein.

     

    Unless as
otherwise provided by law, Maker and any and all co-makers, endorsers,
guarantors and sureties severally waive notice (including, but not limited to,
notice of protest, notice of dishonor and notice of intent to accelerate and
notice of acceleration), demand, presentment for payment, protest and the filing
of suit for the purpose of fixing liability and consent that the time of payment
hereof may be extended and re-extended from time to time without notice to them
or any of them, and each agrees that his, her or its liability on or with
respect to the Note shall not be affected by any release of or change in any
security at any time existing or by any failure to perfect or to maintain
perfection of any lien on or security interest in any such
security.

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    Maker
warrants and represents to Payee, and to all other owners and holders of any
indebtedness evidenced hereby, that the loan evidenced by the Note is and shall
be solely for business, commercial or agricultural purposes and not primarily
for personal, family or household use. Maker acknowledges that the loan
evidenced by the Note is specifically exempted under Section 226.3(a) of
Regulation Z issued by the Board of Governors of the Federal Reserve System and
under the Truth-in-Lending Act and that no disclosures are required to be given
under such regulations and federal laws in connection with the
Note.

     

    It is
agreed that time is of the essence of this agreement and that in the event of
default in the payment of any installment when due, the holder of the Note may
declare the unpaid principal balance plus all accrued but unpaid interest due
thereon immediately due and payable without notice, and failure to exercise said
option shall not constitute a waiver on the part of the holder of the right to
exercise the same at any other time.

     

    This Note
shall be governed by and construed in accordance with Texas law and applicable
federal law. The parties hereto intend to conform strictly to the applicable
laws governing maximum interest rates permitted. In no event, whether by reason
of demand for payment, prepayment, acceleration of the maturity hereof or
otherwise, shall the interest contracted for, charged or received by Payee
hereunder or otherwise exceed the maximum amount permitted under applicable law.
If from any circumstance whatsoever interest would otherwise be payable to Payee
in excess of the maximum lawful amount, the interest payable to Payee shall be
reduced automatically to the maximum amount permitted by applicable law. If
Payee shall ever receive anything of value deemed interest under applicable law
which would , apart from this provision , be in excess of the maximum lawful
amount, an amount equal to the amount which would have been excessive interest
shall be applied to the reduction of scheduled principal payments owing
hereunder in inverse order of their maturities and not to the payment of
interest, or if such amount which would have been excessive interest exceeds the
unpaid balance of principal hereof, such excess shall be refunded to Maker. All
interest paid or agreed to be paid to Payee shall, to the extent permitted by
applicable law , be amortized , prorated , allocated , and spread throughout the
full stated term (including any renewal or extension) of such indebtedness so
that the amount of interest charged or paid on account of such indebtedness does
not exceed the maximum permitted by applicable law. The provisions of this
paragraph shall control all existing and future agreements between Maker and
Payee. In determining whether interest of any kind paid or payable hereunder
exceeds the highest rate, the undersigned and Payee shall, to the maximum extent
permitted under applicable law (a) characterize any non-principal payment as an
expense, fee or premium , (b ) exclude voluntary prepayments and the effects
thereof and (c) amortize, prorate, allocate and spread , in equal parts, the
total amount of interest throughout the entire contemplated term of the
indebtedness in order to render the interest rate uniform throughout such term.
Without limiting the generality of the foregoing, the amount of any prepayment
premium or penalty and the amount of any late payment fee or charge provided for
herein or in any documents securing or related to the indebtedness evidenced
hereby (whether or not the same are construed as interest under applicable laws
) are limited to and shall never exceed an amount which , when added to all
items called or deemed to be interest in connection with the transactions
contemplated herein, does not exceed the maximum amount of interest payable on
the principal balances involved under applicable law. On any acceleration or
required or permitted prepayment, any such excess shall be canceled
automatically as of the acceleration or prepayment or, if already paid ,
credited on the principal of the debt or, if the principal of the debt has been
paid , refunded . This provision overrides other provisions in this and all
other instruments concerning the debt.

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    In
addition to and without limitation of any defenses to which Payee may be
entitled under applicable law, Maker and any obligor agree to provide Payee with
written notice and a reasonable opportunity of at least 60 days to correct any
excessive contract, charge or receipt, and any corrective action by Payee shall
relieve Payee of any liability regarding same. Any such notice to Payee must be
by certified mail, return receipt requested, and must provide Payee with
specific details regarding the nature and extent of any alleged excessive
contract, charge or receipt.

     

    Maker and
Grantor hereby extends the Liens to secure the payment of the Note, until the
same has been fully paid and agrees that the modification, renewal, and
extension of the Promissory Note shall in no manner affect or impair the Note or
the Liens securing the same and that the Liens shall not in any manner be
waived, except as otherwise expressly provided herein, the purpose of this
instrument being simply to modify and renew the Promissory Note and to carry
forward or extend the Liens, which are acknowledged by Maker and Grantor to be
valid and subsisting, and the Maker and Grantor further agree that all terms and
provisions of the Promissory Note and of the instrument or instruments creating
or fixing the Liens securing the same shall be and remain in full force and
effect as therein written except as otherwise expressly provided
herein.

     

    None of
the rights, titles, liens, interests, securities or equities existing or to
exist under any documents or instruments securing the indebtedness evidenced
hereby, in law or in equity, are or shall be in anyway released, diminished,
impaired or affected hereby. Any and all Liens are recognized to be still in
full force and effect insofar as to cover all of the properties described
therein and all rights and liens existing and to exist under any documents or
instruments securing the indebtedness evidenced hereby and any other document
securing the note or creating a lien, as modified hereby, are renewed, extended,
carried forward and conveyed by Maker and Grantor to secure any and all
indebtedness of Maker and Grantor to Payee.

     

    Grantor
expressly covenants, represents and warrants that Grantor is the owner and
holder of good and valid title to all of the Property, free and clear of all
liens and encumbrances other than those existing unto and in favor of Payee;
that all costs, expenses, and taxes due and owing to date against or with
respect to any and all of the Property have been paid to date and that Grantor
has the absolute, unrestricted right and authority to mortgage, assign and
convey all of the Property and any proceeds resulting therefrom to
Payee.

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    If Maker
defaults in the payment of this note, or in the performance of any obligation in
any instrument securing or collateral to it, or any other
present and/or future debts, obligations, and liabilities owed to Payee by Maker
and/or Guarantors, whether individually or as a member of any partnership, joint
venture, association, or other group, regardless of how the other debts,
obligations, and liabilities are incurred and regardless of whether they are
evidenced by a note, open account, overdraft, endorsement, surety agreement,
guarantee, or other document, and any renewals and/or extensions of any such
indebtedness, then Payee may declare the unpaid principal balance and accrued
unpaid interest on this note immediately due. Default in the terms of any note,
deed of trust or security agreement pertaining to such indebtedness described
above and herein, shall be an event of default and breach of covenant under all
said notes, deeds of trust, and security agreements and will give Payee the
right to accelerate payment of all said indebtedness (unpaid principal, earned
unpaid interest and other accrued charges) and to invoke all of its rights under
the terms of all said notes, deeds of trust, and security agreements. Maker and
each surety, endorser, and guarantor waive all demands for payment,
presentations for payment, notices of intention to accelerate maturity, notices
of acceleration of maturity, protests, dishonor, notice of protest and notice of
dishonor, to the extent permitted by law.

     

    Maker may
now be and it is contemplated that Maker may hereafter become indebted unto
Payee in further sum or sums. The indebtedness evidenced by this Note, all other
indebtedness now owing by Maker and/or Guarantors to Payee, any future
indebtedness of Maker and/or Guarantors, in favor of said Payee; any
indebtedness owing to said Payee, which is or will be guaranteed by Maker and/or
Guarantors; and any renewals, modifications and/or extensions of said
indebtedness, are secured by the collateral described in the Security for
Payment described above. In addition , any and all property acquired by Maker
after this date and all of the properties standing as security for the
indebtedness evidenced hereby and elsewhere herein, shall stand as security for
the indebtedness evidenced hereby and for each such other indebtedness, to the
same effect as if they were described and included herein and in any deeds of
trust or security agreements. Default in the terms of any note, deed of trust or
security agreement pertaining to such indebtedness described above or herein
shall be an event of default and breach of covenant under all said notes, deeds
of trust and security agreements and will give Payee the right to accelerate
payment of all said indebtedness (unpaid principal, earned unpaid interest and
other accrued charges) and to invoke all of its rights under the terms of all
said notes , deeds of trust and security agreements. In no event shall this deed
of trust secure payment of any debt described in or created pursuant to the
Texas Consumer Credit Code, nor shall it create a lien otherwise prohibited by
law.

     

    To the
maximum extent not prohibited by applicable law, this promissory note is
additionally secured by all deeds of trust, security agreements, assignments and
other writings of every kind and nature heretofore, now or hereafter executed by
any Maker or any other person to secure any indebtednesses of any Maker, which
is now or hereafter owing to any holder of this promissory note, whether or not
any of such writings describe, cover, pertain or affect any property, rights or
interests which are similar or dissimilar to any of the Property described
herein, rights or interest, and whether or not such writings were originally
executed or delivered to or for the benefit of any holder of this promissory
note or executed or delivered to or for the benefit of any other person and
acquired by purchase or otherwise by any holder of this promissory note, and
whether or not any such lien or security interest or other interest was created
by any then owner of any interest in or to any of the property,
rights or interests which are described in or covered by any such writing or to
which any such writing may pertain or affect, including, but not limited to, the
Property and/or any other collateral described herein or in the Note.

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    For
purposes of any suit relating to the Note, Maker hereof submits itself to the
jurisdiction of any court sitting in the State of Texas and further agrees that
venue in any suit arising out of the Note or any venue shall be fixed in Harris
County, Texas. Final judgment in any suit shall be conclusive and may be
enforced in any jurisdiction within or without the United States of America, by
suit on the judgment, a certified or exemplified copy of which shall be
conclusive evidence of such liability.

     

    The Note
has been executed and delivered in and shall be construed in accordance with and
governed by the laws of the State of Texas and of the United States of America,
except that Chapter 346 of the Texas Finance Code, which regulates certain
revolving loan accounts and revolving tri-party accounts shall not apply to this
Note and all loans or any advances hereunder shall not be governed by or subject
to the provisions of Chapter 3 4 6 in any manner whatsoever.

     

    Maker and
any Guarantors hereby waive, acquit, discharge and forever release Payee, and
its agents, servants, employees, representatives and attorneys and all person,
natural or corporate, in privity with them or any of them, from any and all
claims and causes of action, of whatever kind and nature, known or unknown, now
or heretofore existing, and further waives and releases any and all credits,
defenses, claims for offsets and all defenses to Maker’s and/or any Guarantors’
liability for the unpaid balance of the debt herein stipulated to be due and
owing or arising under or out of the Note and/or any guaranty, including without
limitation, failure of consideration, breach of warranty, misrepresentation,
deceptive trade practices, usury, fraud, unlawful collection practices, tortuous
interference and bad faith, which have accrued before the date of this Agreement
or thereafter, known or unknown.

     

    Each
Maker and guarantor of this Note further hereby agrees and consents to all of
the terms, provisions, agreements, covenants and warranties set forth or
contained in all of the deeds of trust, security agreements, assignments and
other writings now or hereafter securing or pertaining to the loan evidenced by
this Note and agrees that all of the writings now or hereafter securing or
pertaining to the loan evidenced by this Note (and all terms, provisions,
agreements, covenants and warranties contained in such writings) shall be
binding in all respects on the Maker of this Note (whether or not any Maker has
executed such writings) and on the heirs, successors, legal representatives and
assigns of each of the Maker of this Note.

     

    As
additional security for this note, Maker grants to Payee an express lien and
security interest in and to all property and any and all deposits (general or
special, time or demand, provisional or final) at any time held by Payee for the
credit of or for the account of Maker. If this note is not paid at maturity,
however, such maturity may be brought about, or if a default should occur and be
continuing under any document or instrument executed by Maker or any other party
as security for the payment of this note, Payee is hereby authorized at any
time, and from time to time, without notice to Maker (any such
notice being hereby expressly waived by Maker), to block transfers or withdraws
of any funds from and/or not pay drafts or checks on, any and all accounts,
deposit or otherwise, and/or to set off and apply any and all such deposits at
or for the credit or the account of Maker against the outstanding principal
balance of and accrued interest on, this note. The foregoing rights of Payee are
in addition to and cumulative of all other rights and remedies (including,
without limitation, other liens, security interests and rights of set off) which
Payee may have.

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    The Maker
agrees that the sums evidenced by this Note are not for personal, family or
household purposes, and that it is to be used primarily for business and
commercial purposes.

     

    It shall
be a default hereunder if Payee discovers that any statement, representation or
warranty in the Note, any security agreement or in any other document or
instrument delivered to or relied upon by Payee in connection with the
indebtedness secured hereby is false, misleading or erroneous in any
respect.

     

    It shall
be a default hereunder if, upon Guarantor Jerry Parish owning and controlling
beneficially and of record, less than fifty percent (50%) of the issued and
outstanding equity securities of Maker unless or until Payee provides written
consent to any change of such ownership or if he no longer serves actively in
the day to day management of the Borrower.

     

    Payee
may, upon the death of a guarantor or upon a guarantor who is an employee of
Maker no longer being employed by Maker, whether by resignation , termination or
otherwise, declare the unpaid principal balance and earned unpaid interest on
this Note immediately due and Payee may avail itself of all rights, powers, and
recourses allowed or permitted herein and/or by law .

     

    If there
shall be any transfer of ownership interests in Maker and /or in management of
Maker, without Payee’s prior written consent, Payee may declare the unpaid
principal balance and earned unpaid interest on this Note immediately due and
Payee may avail itself of all rights, powers, and recourses allowed or permitted
herein and/or by law .

     

    Maker, at
any time and from time to time, shall furnish promptly, upon request, a written
statement or affidavit, in such form as may be required by Payee, stating the
unpaid balance of the Note and that there are no offsets or defenses against
full payment of the Note and performance of the terms hereof, or if there are
any such offsets and defenses, specifying them in reasonable
detail.

     

    The Note
is given in modification, renewal and extension of the Promissory Note and the
Liens securing the payment thereof are not extinguished, but are specifically
carried forward, ratified in all respects and shall secure the payment hereof.
Maker and Grantor warrant to the Holder of the Note and Liens that the Note and
the Liens, as modified, are valid and enforceable and represents that they are
not subject to rights of offset, rescission, or other claims.

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    THIS
AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES.

     

    THERE
ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

     

    THE
PARTIES TO THIS AGREEMENT HEREBY, UNCONDITIONALLY AND VOLUNTARILY, WITH AND UPON
THE ADVICE OF COUNSEL, WAIVE, RELINQUISH AND FOREVER FORGO THE RIGHT TO A TRIAL
BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, OR ARISING OUT OF, OR IN ANY WAY
RELATING TO THIS AGREEMENT.

     

    Maker
from time to time, at the request of Payee, will, (i) promptly correct any
defect, error or omission which may be discovered in the contents of any
document relating to this transaction, (“Loan Documents”) or in the execution or
acknowledgment thereof; (ii) execute, acknowledge, deliver and record and/or
file such further documents or instruments (including, without limitation,
further mortgages, security agreements, financing statements, continuation
statements, assignments of rents or leases and environmental indemnity
agreements) and perform such further acts and provide such further assurances as
may be necessary, desirable or proper, in Payee's opinion, to carry out more
effectively the purposes of any Loan Documents and such other instruments
subject to the liens and security interests hereof and thereof any property
intended by the terms hereof or thereof to be covered hereby or thereby,
including specifically, but without limitation, any renewals, additions,
substitutions, replacements, or appurtenances to the Property; provided that
such documents or instruments do not materially increase Maker's liability under
the Loan Documents; and (iii) execute acknowledge, deliver, procure, and file
and/or record any document or instrument (including specifically, but without
limitation, any financing statement) deemed advisable by Payee to protect the
liens and the security interests herein granted against the rights or interests
of third persons; provided that such documents or instruments do not materially
increase Maker's liability under the Loan Documents. Maker will pay reasonable
costs connected with any of the foregoing.

     

    The Maker
and all sureties, endorsers, guarantors and any other party now or hereafter
liable for the payment of this Note, in whole or in part, understands and agrees
that (i) Payee’s document retention policy may involve the imaging of executed
loan documents, which includes but is not limited to any note, guaranty, deed of
trust, security agreement, assignment, financing statement and any other
document which evidences any indebtedness owed by Maker to Payee and/or secures
such indebtedness and /or relates to the indebtedness and /or the collateral
securing such indebtedness and the destruction of the paper original, including
the original note and (ii) the Maker and all sureties, endorsers , guarantors
and any other party now or hereafter liable for the payment of this Note, in
whole or in part, waive any rights and/or defenses that it may have to the use
of such imaged copies of loan documents in the enforcement of any of Payee’s
rights in a court of law or otherwise and /or as to any claim that such imaged
copies of the loan documents are not originals.

     

    LATE
CHARGE. If a payment is ten (10) days or more late, Borrower will be charged
five percent (5.00%) of the regularly scheduled payment.

     

    Payee
reserves the right, in its sole discretion , without notice to the Maker, to
sell participations or assign its interest, or both, in all or
any part of this note.

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    Maker
agrees that the advanced and unpaid principal amount on the Promissory Note, as
hereby modified, renewed, extended and increased, is $ 33,000,000.00 as of the date hereof and that
there shall be no further advances pursuant to the Promissory Note.

     

    Reference
is hereby made to a Loan Agreement of even date with the Note, by and between
the Maker and Payee, which shall govern the advances to be made to Maker by
Payee. Payee shall not be obligated to advance any funds against this note
unless and until Maker has complied with all Payee’s conditions precedent to
funding as set forth in the Loan Agreement. Section 4 B. ii of the Loan
Agreement is modified to read as follows:

     

    ii.
Furnish to Bank, Borrower prepared financial statements (including a balance
sheet and profit and loss statement), within 10 days after each
month-end.

     

     

    EXECUTED IN DUPLICATE ORIGINAL COUNTERPARTS,
this 7th day of April, 2009 and effective March
2, 2009.

     

    
      	 
      	
              The
      Mint Leasing, Inc.

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:
      /s/ Jerry Parish

            
	 
      	
              Jerry Parish,
  President

            

    

     

     

    
      	
              STATE
      OF TEXAS

            	
              §

            
	 
      	
              §

            
	
              COUNTY
      OF HARRIS

            	
              §

            

    

     

    This
instrument was acknowledged before me on the 7th day of April, 2009, by
Jerry Parish, President of The Mint Leasing,
Inc.

     

    
      
        	 	/s/
      Christy Tabor
	 
      	
                Notary
      Public, State of Texas

              

      

    

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    
      
        	 	/s/
      Jerry Parish
	 
      	
                Jerry
      Parish

              

      

    

     

    

     

    
      	
              STATE
      OF TEXAS

            	
              §

            
	 
      	
              §

            
	
              COUNTY
      OF HARRIS

            	
              §

            

    

     

    This
instrument was acknowledged before me on the 7th day of April, 2009 by
Jerry Parish.

     

    
      
        	 	/s/
      Christy Tabor
	 
      	
                Notary
      Public, in and for the State of
Texas

              

      

    

     

    

     

    
      
        	 	/s/
      Victor Garcia
	 
      	
                Victor
      Garcia

              

      

    

     

    

     

    
      	
              STATE
      OF TEXAS

            	
              §

            
	 
      	
              §

            
	
              COUNTY
      OF HARRIS

            	
              §

            

    

     

    This
instrument was acknowledged before me on the 7th day of April, 2009 by
Victor Garcia.

     

    
      
        	 	/s/
      Christy Tabor
	 
      	
                Notary
      Public, in and for the State of
Texas

              

      

    

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

    

    
      	 
      	
              Sterling
      Bank

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:
      /s/ Freddy Hurst

            
	 
      	
              Freddy Hurst, CEO Westheimer
      Office

            

    

     

    

     

    
      	
              STATE
      OF TEXAS

            	
              §

            
	 
      	
              §

            
	
              COUNTY
      OF HARRIS

            	
              §

            

    

     

    This
instrument was acknowledged before me on the 7th day of April, 2009 by
Freddy Hurst, CEO Westheimer Office of Sterling
Bank.

     

    
      
        	 	/s/
      Christy Tabor
	 
      	
                Notary
      Public, in and for the State of
Texas

              

      

    

    
      
        
        

      

      
        -12-

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