Document:

Unassociated Document

    Exhibit
10.1

    

    AMENDMENT
TO LOANOUT AGREEMENT

    

    THIS
AMENDMENT TO LOANOUT AGREEMENT (“Amendment”) is made and entered into as of May
26, 2009, by and between Skystar Bio-Pharmaceutical Company, a Nevada
corporation (the “Company”), and Worldwide Officers, Inc. a California
Corporation (the “Lender”). Capitalized terms used herein and undefined shall
have the meanings set forth in that certain Loanout Agreement (defined in the
Recitals below).

    

    RECITALS:

    

    WHEREAS,
reference is made to that certain Loanout Agreement dated as of May 5, 2008 (the
“Loanout Agreement”), by and between the Company and the Lender, pursuant to
which the Company retained the services of Bennet P. Tchaikovsky (“Executive”)
as the Company’s Chief Financial Officer;

    

    WHEREAS, pursuant to its term,
the Loanout Agreement expired on May 4, 2009, although at the request of the
Company, Executive has continued to provide services to the Company as its Chief
Financial Officer;

    

    WHEREAS, the Company desires that
Executive continue to provide services as its Chief Financial Officer under the
Loanout Agreement, which is acceptable to the Lender subject to certain
amendments to certain terms and conditions of the Loanout Agreement as set forth
hereinafter;

    

    NOW,
THEREFORE, in consideration of the foregoing recitals and the mutual agreements
herein contained and for other good and valuable consideration, the parties
hereto agree as follows:

    

    
      	
              A. 

            	
              AMENDMENT

            

    

    

    
      
        	
              	
                1.

              	
                Section
      1.1 of the Loanout Agreement shall read in its entirety as
      follows:

              

      

    

    

    “Effective
as of May 5, 2009 (the “Effective Date”), the Company engages the Lender and the
Lender agrees to supply and make available to the Company, the services of
Executive to serve as the Company’s Chief Financial Officer (“CFO”) during the
term of this Agreement, on the terms and conditions contained in this
Agreement.  During the term of this Agreement, Executive shall make
himself available to the Company and to any of its subsidiaries or affiliates as
directed to pursue the business of the Company subject to the supervision and
direction of the Board of Directors of the Company (the “Board”).”

    

    
      	
            	
              2.

            	
              Section
      2.1 of the Loanout Agreement shall read in its entirety as
      follows:

            

    

    

    “As
compensation for the services rendered by Executive from the Effective Date as
well as for all services to be rendered by Executive for the term hereof
pursuant to this Agreement, the Company shall pay to the Lender a fee at an
annual base rate of $75,000 to be paid in twelve installments of
$6,250.  During Executive’s employment, the fee will be paid, at the
beginning of each period within seven calendar days. Reimbursement for travel
expenses will paid by the Company within thirty (30) calendar days of submission
by the Lender to the Company. Payment shall be made to Executive via wire
transfer, and the Company shall be responsible for any applicable wire transfer
fees in connection therewith. Failure to make payments within the prescribed
time period shall result in an 18% annual interest or the maximum amount
permitted by law (computed on a daily basis) to the past due
balances.”

    

    
      	
            	
              3.

            	
              Section
      2.2 of the Loanout Agreement shall read in its entirety as
      follows:

            

    

    

    “Executive
will have the right to receive 7,220 shares of the Company’s Common Stock,
$0.001 par value, which shall vest during the term of this Agreement, in the
form of a restricted stock grant (the “Restricted Stock”).  The shares
of the Restricted Stock shall vest in four (4) equal installments of one
thousand eight  hundred and five (1,805) shares every three calendar
months, with the first installment to vest on August 5, 2009 (the “Vesting
Schedule”). The Restricted Stock shall be “restricted” and cannot be resold
without their prior registration or compliance with the terms of Rule 144
promulgated by the Act or an exemption from the Act.  In addition, the
Restricted Stock shall further be subject to the terms and conditions of this
Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    The
number of shares of Restricted Stock referenced in this section is subject to
adjustment in the case of any stock split, reverse stock split, combination or
similar events.

    

    Upon the
filing of an election pursuant to Section 83(b) of the Internal Revenue Code
(the “Code”) with respect to such grant of Restricted Stock, the Company will
not reimburse the Executive for any federal and state taxes due as a result of
such election.

    

    During
the term of this Agreement, Executive shall not, directly or indirectly, (i)
offer, pledge, sell, contract to sell, sell any option or contract to purchase,
purchase any option or contract to sell, grant any option, right or warrant to
purchase, lend or otherwise transfer or dispose of, directly or indirectly, any
of the shares of the Restricted Stock or any shares received by Executive from
the Company as the result of the prior Loanout Agreements (collectively
“Shares”), or (ii) enter into any swap or other arrangement that transfers to
another, in whole or in part, any of the economic consequences of ownership of
any of the Shares, whether any such transaction described in clause (i) or (ii)
above is to be settled by delivery of the Shares, in cash or otherwise. The
Shares may not be resold by Executive until 91 days after Executive ceases to be
Chief Financial Officer of the Company.”

    

    
      	
               
      

            	
              4.

            	
              Section
      3.1 of the Loanout Agreement shall read in its entirety as
      follows:

            

    

    

    The term
of this Agreement commences as of May 5, 2009 and shall continue for one (1)
years unless sooner terminated as herein provided.”

    

    B.           
CONFLICTS.  Except
as expressly set forth in this Amendment, the terms and provisions of the
Loanout Agreement shall continue unmodified and in full force and
effect.  In the event of any conflict between this Amendment and the
Loanout Agreement, this Amendment shall control.

    

    C.       
    GOVERNING LAW.  This
Amendment shall be governed and construed under the laws of the State of Nevada,
and shall be binding on and shall inure to the benefit of the parties and their
respective successors and permitted assigns.

    

    D.        
   COUNTERPARTS.  This
Amendment may be executed in any number of counterparts, each of which shall be
an original, but all of which together shall constitute one instrument. A
facsimile or other electronic transmission of this signed Amendment shall be
legal and binding on all parties hereto.

    

    

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of page left blank intentionally.]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

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

     

    
      
        	
                “COMPANY”

              	 
      	
                “EXECUTIVE”

              	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	
                SKYSTAR
      BIO-PHARMACEUTICAL COMPANY

              	 
      	
                BENNET
      P. TCHAIKOVSKY

              	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	
                By:

              	 
      	 
      	
                By:

              	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	
                TitleUnassociated Document

    Exhibit
10.2

    

    SKYSTAR
BIO-PHARMACEUTICAL COMPANY

    Room
10601, Jiezuo Plaza

    No. 4,
Fenghui Road South

    Gaoxin
District, Xian Province

    People’s
Republic of China

    

    May 26,
2009

    

    Mr. Mark
D. Chen

    Suite
10-64

    #9
Jianguomenwai Avenue

    Beijing,
P.R. China 100600

    

    
      	
            	
              Re:

            	
              Director Offer
      Letter

            

    

    

    Dear Mr.
Chen:

    

    Skystar
Bio-Pharmaceutical Company, a Nevada corporation (the “Company”), is pleased to
offer you a director position on its Board of Directors (the
“Board”).  We are all very impressed with your credentials and we look
forward to your future success in this role.

    

    Should
you choose to accept this position as a member of the Board, this letter shall
constitute an agreement between you and the Company and contains all the terms
and conditions relating to the services you are to provide.

    

    1.           Term.  This agreement
shall be for the ensuing year, commencing on May 26, 2009 (the “Effective
Date”).  Your term as director shall continue subject to the
provisions in Section 8 below or until your successor is duly elected and
qualified.  The position shall be up for re-election each year at the
annual shareholder’s meeting and upon re-election, the terms and provisions of
this agreement shall remain in full force and effect.

    

    2.           Services.  You shall render
services as a member of the Board, as well as a member of the Board’s audit
committee in the capacities of the committee chairman and “audit committee
financial expert” as that term is defined under Item 407(d)(5)(ii) of Regulation
S-K, and as a member of the Board’s compensation committee (hereinafter your
“Duties”). During the term of this Agreement, you shall attend and participate
in such number of meetings of the Board and of the committees of which you are a
member as regularly or specially called in accordance with the terms of the
Company’s by-laws and/or the committee charters. You may attend and participate
at each such meeting, via teleconference, video conference or in person. You
shall consult with the other members of the Board and committees regularly and
as reasonably necessary via telephone, electronic mail or other reasonable forms
of correspondence.

    

    3.           Services
for Others.  You shall be free
to represent or perform services for other persons during the term of this
agreement.  However, you agree that you do not presently perform and
do not intend to perform, during the term of this agreement, similar Duties,
consulting or other services for companies whose businesses are or would be, in
any way, competitive with the Company (except for companies previously disclosed
by you to the Company in writing).  Should you propose to perform
similar Duties, consulting or other services for any such company, you agree to
notify the Company in writing in advance (specifying the name of the
organization for whom you propose to perform such services) and to provide
information to the Company sufficient to allow it to determine if the
performance of such services would conflict with areas of interest to the
Company.

    

    4.           Compensation.

    

    (a)           You
shall receive cash compensation of USD $14,000 per calendar year of service,
payable in accordance with the attached Schedule A, and
prorated for partial time periods.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (b)           Additionally,
you shall have the right to receive 2,778 shares of the Company’s common stock,
$0.001 par value, in the form of a restricted stock grant (the “Restricted
Stock”) at the commencement of your term hereof and at each commencement of your
re-elected terms thereafter. The Restricted Stock shall be “restricted” and
cannot be resold without their prior registration or compliance with the terms
of Rule 144 promulgated by the Act or an exemption from the Act.  The
number of shares of Restricted Stock is subject to adjustment in the case of any
stock split, reverse stock split, combination or similar events.

    

    Upon the filing of an election pursuant
to Section 83(b) of the Internal Revenue Code (the “Code”) with respect to such
grant of Restricted Stock, the Company will not reimburse you for any federal
and state taxes due as a result of such election.

    

    For each grant of Restricted Stock, you
shall not, directly or indirectly, prior to the first anniversary of its
issuance date: (i) offer, pledge, sell, contract to sell, sell any option or
contract to purchase, purchase any option or contract to sell, grant any option,
right or warrant to purchase, lend or otherwise transfer or dispose of, directly
or indirectly, any of the shares of such Restricted Stock or (ii) enter into any
swap or other arrangement that transfers to another, in whole or in part, any of
the economic consequences of ownership of any of the shares of such Restricted
Stock, whether any such transaction described in clause (i) or (ii) above is to
be settled by delivery of shares of such Restricted Stock, in cash or
otherwise.

    

    In connection with each grant of
Restricted Stock, you hereby represent and warrant to the Company, as of the
date hereof, that:

    

    A.           The
shares of such Restricted Stock will be acquired for investment for your own
account, not as a nominee or agent, and not with a view to the public resale or
distribution thereof within the meaning of the Securities Act of 1933, as
amended (the “Securities Act”), and you have no present intention of selling,
granting any participation in or otherwise distributing the same.

    

    B.           You
understand that the acquisition of the shares of such Restricted Stock involves
substantial risk. You have experience as an investor in securities of companies
and acknowledges that your are able to fend for yourself, can bear the economic
risk of your investment and has such knowledge and experience in financial or
business matters that you are capable of evaluating the merits and risks of your
investment and protecting your own interests in connection with this
investment.

    

    C.           You
are an "accredited investor" within the meaning of Regulation D of the
Securities Act.

    

    D.           You
understand that: (i) the shares of such Restricted Stock are characterized as
"restricted securities" under the Securities Act, inasmuch as they are being
acquired from the Company in a transaction not involving a public offering, and
(ii) under the Securities Act and applicable rules and regulations thereunder,
such securities may be resold without registration under the Securities Act only
in certain limited circumstances. You are familiar with Rule 144 under the
Securities Act, as presently in effect, and understand the resale limitations
imposed thereby and by the Securities Act.

    

    (c)           The
Company agrees to reimburse all of your travel, hotel, car rental, meals and
other reasonable expenses relating to your attendance at meetings of the Board.
In addition, the Company agrees to reimburse you for reasonable expenses that
you incur in connection with the performance of your duties as a director of the
Company, provided that you shall seek the Company’s approval prior to the
incurrence of any such expenses exceeding $500.

    

    5.           D&O
Insurance Policy. During the
term under this Agreement, the Company shall include you as an insured
under an
officers and directors insurance policy with coverage not to exceed $1,000,000,
which the Company shall obtain within a reasonable period of time.

    

    6.           No
Assignment.  Because of the
personal nature of the services to be rendered by you, this agreement may not be
assigned by you without the prior written consent of the Company.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    7.           Confidential
Information; Non-Disclosure.  In consideration
of your access to the premises of the Company and/or you access to certain
Confidential Information of the Company, in connection with your business
relationship with the Company, you hereby represent and agree as
follows:

    

    a.           Definition.  For purposes of
this agreement the term “Confidential Information” means:

    

    i.           Any
information which the Company possesses that has been created, discovered or
developed by or for the Company, and which has or could have commercial value or
utility in the business in which the Company is engaged; or

    

    ii.           Any
information which is related to the business of the Company and is generally not
known by non-Company personnel.

    

    iii.           By
way of illustration, but not limitation, Confidential Information includes trade
secrets and any information concerning products, processes, formulas, designs,
inventions (whether or not patentable or registrable under copyright or similar
laws, and whether or not reduced to practice), discoveries, concepts, ideas,
improvements, techniques, methods, research, development and test results,
specifications, data, know-how, software, formats, marketing plans, and
analyses, business plans and analyses, strategies, forecasts, customer and
supplier identities, characteristics and agreements.

    

    b.           Exclusions.  Notwithstanding
the foregoing, the term Confidential Information shall not include:

    

    i.           Any
information which becomes generally available to the public other than as a
result of a breach of the confidentiality portions of this agreement, or any
other agreement requiring confidentiality between the Company and
you;

    

    ii.           Information
received from a third party in rightful possession of such information who is
not restricted from disclosing such information; and

    

    iii.           Information
known by you prior to receipt of such information from the Company, which prior
knowledge can be documented.

    

    c.           Documents. You agree that, without the
express written consent of the Company, you will not remove from the Company's
premises, any notes, formulas, programs, data, records, machines or any other
documents or items which in any manner contain or constitute Confidential
Information, nor will you make reproductions or copies of same.  In
the event you receive any such documents or items by personal delivery from any
duly designated or authorized personnel of the Company, you shall be deemed to
have received the express written consent of the Company.  In the
event that you receive any such documents or items, other than through personal
delivery as described in the preceding sentence, you agree to inform the Company
promptly of your possession of such documents or items.  You shall
promptly return any such documents or items, along with any reproductions or
copies to the Company upon the Company's demand, upon termination of this
agreement, or upon your termination or Resignation, as defined in Section 8
herein.

    

    d.           No
Disclosure.  You agree that
you will hold in trust and confidence all Confidential Information and will not
disclose to others, directly or indirectly, any Confidential Information or
anything relating to such information without the prior written consent of the
Company, except as maybe necessary in the course of your business relationship
with the Company.  You further agree that you will not use any
Confidential Information without the prior written consent of the Company,
except as may be necessary in the course of your business relationship with the
Company, and that the provisions of this paragraph (d) shall survive termination
of this agreement.

    

    8.            Termination
and Resignation.  Your membership
on the Company’s Board may be terminated for any or no reason at a meeting
called expressly for that purpose by a vote of the stockholders holding at least
two-thirds of the shares of the Company’s issued and outstanding shares entitled
to vote.  You may also terminate your membership on the Board for any
or no reason by delivering your written notice of resignation to the Company
(“Resignation”), and such Resignation shall be effective upon its acceptance by
the Board, provided, however, that if the Board has not acted on such written
notice within ten days from its date of delivery, then your Resignation shall
upon the tenth day be deemed accepted by the Board.  Upon the
effective date of the termination or Resignation, your right to compensation
hereunder will terminate subject to the Company's obligations to pay you any
cash compensation (or equivalent value in Company common stock shares) that you
have already earned and to reimburse you for approved expenses already incurred
in connection with your performance of your Duties as of the effective date of
such termination or Resignation.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    9.           Governing
Law.  All questions
with respect to the construction and/or enforcement of this agreement, and the
rights and obligations of the parties hereunder, shall be determined in
accordance with the law of the State of Nevada applicable to agreements made and
to be performed entirely in the State of Nevada.

    

    10.           Entire
Agreement; Amendment; Waiver; Counterparts.  This agreement
expresses the entire understanding with respect to the subject matter hereof and
supersedes and terminates any prior oral or written agreements with respect to
the subject matter hereof.  Any term of this agreement may be amended
and observance of any term of this agreement may be waived only with the written
consent of the parties hereto.  Waiver of any term or condition of
this agreement by any party shall not be construed as a waiver of any subsequent
breach or failure of the same term or condition or waiver of any other term or
condition of this agreement.  The failure of any party at any time to
require performance by any other party of any provision of this agreement shall
not affect the right of any such party to require future performance of such
provision or any other provision of agreement.  This agreement may be
executed in separate counterparts each of which will be an original and all of
which taken together will constitute one and the same agreement, and may be
executed using facsimiles of signatures, and a facsimile of a signature shall be
deemed to be the same, and equally enforceable, as an original of such
signature.

    

    [Remainder of Page Left Blank
Intentionally]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    The
Agreement has been executed and delivered by the undersigned and is made
effective as of the date set first set forth above.

    

    
      

      
        	 
      	
                Sincerely,

              	 
      
	 
      	 
      	 
      	 
      
	 
      	
                SKYSTAR
      BIO-PHARMACEUTICAL COMPANY

              	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                By:

              	  
      	 
      
	 
      	 
      	
                Weibing
      Lu

              	 
      
	 
      	 
      	
                Chief
      Executive Officer

              	 
      

      

      

      

      

      
        	
                AGREED
      AND ACCEPTED:

              	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
                  
      

              	 
      
	
                Mark
      D. Chen

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