Document:

China Biologic Products, Inc.: Exhibit 10.1 - Prepared by TNT Filings Inc.

  

Exhibit 10.1

RENMINBI LOAN CONTRACT (Short Term)  

 

                                          Loan No.: 2009 Nian Tai Shan Jie Zi No.001

 

Borrower:  Shandong Taibang Biological Products Co., Ltd                                 

Business License No.:

370900400001220               

Legal representative:

Lam Tung                                           

Address:  No.14 East Hushan Road, Taian City, Shandong                                             

Financial institution of Deposit and Account No.:                               

Industrial and Commercial Bank of China Taian Branch

1604010109242088910

Telephone:

0538-6206636

Facsimile:  

0538-6203895

 

 

Lender:

Bank of China, Taian Taishan Sub-Branch

Legal Representative:  

Wang Hua

Address:

Middle section of Caiyuan Street, Taishan District, Taian City

Post Code:  

271000

Telephone:

0538-8335485  

Facsimile:

0538-8218422

                                      

The Borrower and Lender, after reaching an agreement through friendly negotiation, hereby enter into this contract pursuant to Borrower's application to Lender for a short-term Renminbi loan.                                       

 

Article 1.  The Amount                                                           

 

Total loan amount:

RMB forty million (40,000,000.00) Yuan exactly.                                                                        

 

Article 2.  Terms of the Loan                                                     

 

The duration of this loan is twelve months starting from the date of draw-down.  If the loan is draw-down in installments, the aforementioned "date of draw-down" is the date of the first draw-down.                                       

 

The Borrower shall draw-down from the loan within the Draw-down period under this contract.  If the actual date of draw-down is beyond the Draw-Down Period under this contract, Borrower shall repay the loan according to the repayment terms set forth under this contract.   

 

Article 3.  Purpose of the Loan                                                  

 

The proceeds from this Loan shall be utilized solely for procurement of raw materials. Without prior written consent from the Lender, the Borrower shall not divert the proceeds from this loan for any other purposes, including, but not limiting to, investing in stocks or securities, activities prohibited by law, rules, regulations and national policies, or activities the Borrower is not licensed to engage in, or activities that proceeds from bank loan are prohibited to participate in.
 

 

 

Article 4.  Interest Rate and Interest Calculation

 

4.1

Interest rate is fixed at 5.31% per annum.

4.2

The interest shall be calculated as follows: Interest on the loan = (Loan amount) x (actual days of use) x (daily interest rate).  The daily interest rate is based on 360 days per year and shall be calculated as follows: daily interest rate= (annual interest rate)/360

4.3.  

The interest is to be calculated quarterly as of the 20th day and payable on the 21st day of the third month of each quarter.
 

4.4        Late Payment Penalties:

4.4.1  

For the principal and interest that are not fully repaid upon maturity by the Borrower, late payment penalty shall be calculated, starting from the maturity date until the date of repayment, based on the unpaid principal at an interest rate specified in 4.1 plus 30%.
 

4.4.2

For the proceeds of the loan that is misappropriated by the Borrower for the purposes other than prescribed by this contract, misappropriation penalty shall be calculated, starting from the date of such misappropriation until the date of repayment, based on the amount of such misappropriation at an interest rate specified in 4.1 plus 50%.

4.4.3

For the proceeds that is misappropriated and also subjected to the late penalty clause, misappropriation penalty clause (4.4.2) shall apply.

4.4.4

Should the borrower fail to pay interest at required interest payment date, the lender will calculate the interest on a compound annual basis on the rate set forth under section 4.1. In addition, the borrower will be subject to the penalty prescribed as section 4.4.3.

           4.4.5      Should the interest rate be adjusted pursuant to the Contract, the calculation of interest on a compounded annual basis and penalty shall begin after the adjustment of interest rate.
 

 

Article 5.  Conditions for Draw-down                                             

 

If the Borrower fails to satisfy the following conditions, the Lender reserves the right to reject the draw-down:                                      

1.

This contract and the appendices have become effective;  

2.

The borrower has accepted the lender’s request to supply warranties. And a related guaranty contract is currently in effect and has been performed all legally-required procedures such as approval, registration and record.

3.

The Borrower has provided the list and the signature samples of the authorized persons who have been authorized to sign this contract and relevant documents and receipts;   

4.

The Borrower has opened an account according to the contract;                                       

5.

To send a written draw-down application and relevant certificate for the purpose of the loan 1 day in advance;                  

 

6.

The Borrower has provided the resolution from the Board of Directors or other authorized department regarding the consent of signing and executing this contract;                        

7.

Other requirements for the draw-down stipulated in relevant laws and agreed by both parties have been satisfied.                   

 

Article 6.  Draw-down Period                                                        

6.1

The Borrower shall make the draw-down within 30 days from the date of executing of this contract.
 

6.2

If the Borrower fails to withdraw the entire loan amount before the above mentioned date, the Lender reserve the right to reject to grant the remaining balance of the loan.  If the Lender agrees to grant the loan, it has the right to charge obligation expenses for the delayed amount on the daily basis of 0.05%; if the Lender rejects to grant the remaining amount of the loan, it has the right to charge obligation expenses in accordance daily basis of 0.05%.  

Article 7.  Repayment    

                                                        

7.1

Borrower shall repay the principal and interest under this Loan Contract in full on the due date. The Borrower shall submit a written application to Lender 30 days prior to the maturity of the loan if amendment to the above-mentioned repayment schedule is necessary. Any change in the repayment schedule needs a written consent from both parties.

7.2

Except otherwise agreed by both parties, for the past due principal and interest, the Lender has the right to determine the order of the repayment.

7.3

Except otherwise agreed by both parties, the Borrower can make early repayment with a 30 days prior written notice. The amount of early repayment shall be applied to the latest draw-down and all early repayments shall be applied to the principal in reverse order. The Lender has the right to charge the Borrower a compensation fee amounting to 0.05% of the early repayment.     

The Borrower shall deposit sufficient funds in the bank account listed below for the repayment of the Loan 3 banking days before the Maturity Date. The Lender has right to deduct the repayment amount from the bank account on the Maturity Date.
 

Name of the repayment bank account:

Shandong Taibang Biological Products Co., Ltd

Account No:384902401498093001

 

Article 8.  Representations and Warranties

 

8.1

The Borrowers hereby represents as follows:                                     

8.1.1

The Borrower is a company duly organized and validly existing under the law of the People's Republic of China;                        

8.1.2

The Borrower has the power and authority to sign and execute this contract;
 

8.1.3

All documents, materials, reports and certificates provided to the Lender by the Borrower for consummation of this contract is true, real, complete and effective;     

 

8.1.4

The information provided by the Borrower in the loan application is true and legal and the loan will not be used in money laundering:  

8.1.5

The Borrower did not conceal any events that would impact its and the guarantor’s financial conditions or the abilities to consummate this contract.                                                   

         

8.2

The Borrower hereby warrants as follows:                                        

8.2.1

Providing operation report, financial report (including but not limiting to annual, quarterly and monthly reports) and other files and materials;

8.2.2

If the Borrower has signed or shall sign any counter-guaranty or other similar documents with the Guarantor, the counter-guaranty or other similar documents shall not have any adverse impact on the rights and benefits of the Lenders set forth in this contract;
 

8.2.3

Accept, cooperate and assist in the credit inspection and audit by the Lender;

8.2.4

If any of following events occurred that will materially adversely impact the Borrower’s financial condition or the Borrower’s ability in repaying the Lender, the Lender shall be informed in advance. Those events includes but not limited to spin off, merger, joint venture, foreign joint venture, cooperation, jointly cooperation, dissolution, closedown, liquidation, re-organization, change in capital structure, major assets or ownership transfer, major indebtness, reduction of registered capital; impound of collateral, bankruptcy, entering into major law suit or arbitration; in financial or operational difficulties, in default of other contracts.  If the Borrower engaged in above-mentioned activities, which shall have negative impact on the Borrower’s abilities of repaying the loan, the Borrower must obtain prior consent from the Lender.
 

8.2.5

In case of liquidation, the repayment of the loan shall come before the loans from the Borrower’s shareholders and shall not come after loans with similar nature.

8.2.6

When the after-tax net profit of the related fiscal year is zero or negative, or the after-tax profit is not sufficient to make up for the accumulated losses of previous  fiscal years, or the pre-tax profit is not used to repay the principal, interest and expenses due before the end of the current fiscal year, or the pre-tax profit is  insufficient to pay off the next installment of principal, interest and expenses, the Borrower shall not distribute any dividend and bonus to its shareholders in any form.

8.2.7

The Borrower warrants that it will not dispose of assets in a manner which will make adverse impact on its ability to repay the loan. The Borrower shall not provide guarantee to others with an aggregate amount that is more than one (1) time of its net assets. As well, the Borrower warrants that it will not provide guarantee to others more than the maximum amount set forth in the articles of incorporation.
 

8.2.8

The loan should not be used in investment in its own securities, distribution of dividend, purchasing of fixed-asset, investment in stocks and securities and real estate investment.

 

 

Article 9:  Events of Breach contract and Settlement

 

In the event of any of the following circumstances, the borrower shall be deemed to breach the Agreement:                                            

(1)

The Borrower fails to repay the principal or interest on time;                            

(2)

The Borrower uses the loan in other purpose;

(3)

The Borrower make false claims hereunder or breaks its promises set forth herewithin;       

(4)

In the circumstances related to the item 2 and 4 of this article, the Lender thinks it will affect borrower or guarantor’s financial status, and the Borrower fails to provide new guarantees  in accordance with the requirements of the contract;
 

(5)

The Borrower breaches the covenants set forth hereunder;

(6)

The Borrower breaches the obligations in any contracts with the Lender or in any other contracts with other respective entities associated with Bank of China.
 

(7)

The Guarantor breaches the guarantee agreement or related contracts with the Lender or other guarantee agreements with other entities associated with Bank of China.

(8)

The Borrower ceases operation or in the event of dissolution, withdrawn, or bankruptcy.

 

If any one or more of the above-mentioned “Events of Breaching Contracts” occurs, the Lender reserves the rights to take following actions, singularly or jointly, as it deems appropriate:

1.

The lender may request the Borrower or Guarantor to correct such default within specified time frame;

2.

The lender may declare the decrease, termination on the credit line awarded to the Borrower;

3.

And the Lender has the right to refuse the Borrower's draw-town request or cancel the amount of the loan which has not been withdrawn;
 

4.

The Lender may declare either the entire amount or partial amount of the principal of and accrued interest in respect of the Loan, other agreement or any other financing from the lender, to be immediately due and payable;

5.

The lender may terminate this contract and, partially or entirely, terminate any other existing contracts between the Borrower and the Lender;
 

6.

The Borrower shall indemnify the Lender for any losses in event of the borrower breach the Contract;

7.

Lender has the right, with written notice to the Borrower, to set off against the Borrower’s cash balance deposited with Bank of China, or its affiliates, in the event of overdue principal and interest. In the case of settling between different currencies, the Lender will adopt the exchange rate quoted by the Bank of China on the day of the set off;

8.

The Lender may exercise the rights against the guarantor;

9.

The Lender may request the guarantor to fulfill its duties;

10.

And any other actions deem necessary by the Lender.

 

Article 10.  No Waiver

 

No failure or delay on either party of this contract in exercising any power or right hereunder shall be deemed as a waiver thereof, nor shall any single or partial exercise of any such right or power preclude any other or further exercise thereof or the exercise of any other right or power hereunder.
 

 

 

Article 11.  Amendment and Cancel                                                

 

This contract could be amended, supplemented or canceled upon the written agreements conclude by both parties. Any amendment and supplement shall be integral part of this contract. Unless otherwise governed by applicable law or regulations or mutually agreed by both party, this loan contract shall remain in force until all rights and obligations are consummated.  If any provision contained in this contract become invalid, the other part of this contract shall not be impaired by it.                                      

 

Article 12.  Applicable Law, Dispute Settlement and Judicial Jurisdiction        

 

This contract shall be governed by the relevant laws of the PRC.                

Any disputes arising from the execution of, or in connection with this contract shall be settled through friendly negotiation between both parties hereto.  In case no settlement to disputes can be reached through friendly negotiation, the disputes shall be submitted to the People’s Court in Tai'an City for ruling.  Prior to the settlement of any dispute, each party shall continue to abide by the terms that were not impacted by the disputed terms.  

 

Article 13.  Expense

 

Expenses arise from the establishment, execution and dispute settlement of this contract, including but not limiting to attorney's fee, shall be paid or reimbursed by the Borrower.                 

 

Article 14.  Appendices                                                          

 

The following appendices and other appendices jointly confirmed by both parties shall be an integral part of this contract, and shall have the same legal effect as this Contract:

 

1. Application for Drawn-down                                     

2. Loan Vouchers                                      

 

Article 15.  Other Clause  

 

15.1

Without obtaining the written consent from the Lender, the Borrower shall not transfer any rights and obligations hereunder to any third party.

15.2

The lender shall preserve a right at any time without the consent or notice to the Borrower to sell, assign, transfer of grant participations in or otherwise dispose of all or part of the loan outstanding under this Agreement to any other entity associated with Bank of China. In an event of above-mentioned activity occurred, the Lender shall preserve a right to sue the Borrower or submit the complaints to an arbitration commission under the lender’s name should there is any legal dispute.

 

15.3  

This agreement shall be binding upon and inure to the benefit of the Lender and their respective successors and assigns.

15.4  

Any communication, demand or notice to be given hereunder or with respect to the Agreement shall be duly given by the address provided herein, or, as to each party, at such other address as such party may designate by notice in writing to the other party.
 

15.5  

The transaction hereunder is based on the principal of the respective parties’ interest. In the event of in compliance with respective law, regulations, and requirements set out by relevant regulatory parties, the other party hereunder is qualified for the definition of the related party or the related parties, parties hereto shall measure the relationship between those related parties and ensure no interference of the transactions’ fairness in executing the Agreement.

15.6  

The headings of the various sections and subsections hereof are for convenience of reference only, do not constitute a part hereof and shall not affect the meaning or construction of any provision hereof.
 

 

Article 16.  Becoming Effective of This Contract                              

 

This Loan Contract shall become effective upon signature (or seal) by legal representatives or authorized representatives of both parties and upon the affixing of the official seals of both parties.  This contract is executed in duplicate and be equally authentic. The Borrower and the Lender shall hold 1 copy each.                               

 

The Borrower: Shandong Taibang Biological Products Co., Ltd (seal)                         

 

Legal Representative (or Authorized Representative):  /s/Lam Tung

           

 

Date:  January 8, 2009                                                  

 

The Lender: Bank of China, Taian Taishan Sub-Branch (seal)                           

 

Legal Representative (or Authorized Representative):  /s/Wang Hua

          

 

Date: January 8, 2009f10k2008ex10x_advancegrow.htm

     

    
       

      EXHIBIT
10.21

       

      EXECUTIVE EMPLOYMENT
AGREEMENT

      

      This
Agreement is made and entered into as of the 29th day of
August, 2008 (“Agreement Date”) by and between Advanced Growing Systems, Inc., a
Nevada corporation (hereinafter referred to as the “Company”), and Dan K. Dunn, an individual
(hereinafter referred to as the “Employee”).  The Company and the
Employee are collectively referred to as the “Parties”.  This
Agreement supersedes any similar agreement between the Parties.

      

      WITNESSETH:

      

      Whereas it is in the best
interest of the Company to retain quality personnel such as the Employee;
and

      

      Whereas the Employee is
willing to enter into an employment agreement with the Company in accordance
with the conditions hereinafter provided.

      

      Now, therefore, for and in
consideration of the terms and conditions contained herein, the Parties agree as
follows, to wit:

      

      
        	
                1.  

              	
                Definitions.  As
      used in this Agreement:

              

      

       

      
        	
                A.  

              	
                “Company” means Advanced
      Growing Systems, Inc. its successors and assigns, and any of its present
      or future subsidiaries or organizations controlled by, controlling, or
      under common control with it.

              

      

       

      
        	
                B.  

              	
                “Confidential
      Information” means any and all information disclosed or made
      available to the Employee or known by the Employee as a direct or indirect
      consequence of or through Employee’s employment by the Company and not
      generally known in the industry in which the Company is or may become
      engaged, or any information related to the Company’s products, processes,
      or services, including, but not limited to, information relating to
      research, development, inventions, manufacture, purchasing, accounting,
      engineering, marketing, merchandising, or
  selling.

              

      

       

      
        	
                C.  

              	
                “Inventions” mean
      discoveries, concepts and ideas, whether patentable or not, relating to
      any present or prospective activities of the Company, including, but not
      limited to, devices, processes, methods, formulae, techniques,
      applications, technology and any improvements to the foregoing. Such
      definition shall also encompass all such discoveries, concepts and ideas,
      even if formulated by the Employee prior to his employment by the
      Company.

              

      

       

      
        	
                D.  

              	
                “Company Monthly Base Pay”
      means the employee’s last monthly remuneration, prior to
      termination of Employee’s employment with the Company, before federal,
      state, and local taxes and other withholding, but exclusive of extra
      compensation, such as that attributable to bonuses, overtime or employee
      retirement or pension benefits.

              

      

       

      
        	
                E.  

              	
                “Conflicting
      Organization” means any person or organization engaged, directly or
      indirectly, in the research, development, production, marketing or selling
      of a Conflicting Product.

              

      

       

      
        	
                F.  

              	
                “Conflicting Product”
      means any product, process, technology, application, or service of any
      person or organization, other than the Company, in existence or under
      development, which resembles, competes with or is marketed or offered for
      sale or lease to the same or similar potential customers as a product,
      process, technology, application, or service which is the subject of
      research, development, production, marketing or selling activities of the
      Company.

              

      

       

       

      
        
          
          

        

        
          -1-

          
            

          

        

        
          
          

        

      

       

       

      
        	
                2.  

              	
                Employment. The Company
      hereby employs the Employee and the Employee hereby agrees to accept
      employment with the Company upon the terms and conditions herein set
      forth.

              

      

       

      
        
          	
                  3.  

                	
                  Term.  The
      Company hereby employs the Employee for a period of roughly
      twenty-four (24) months beginning on
      the 29th
      day of August, 2008, and ending on the 31st day of August, 2010, unless
      sooner terminated as provided in Section 13 (Disability), Section 14
      (Death During Employment) or Section 16 (Termination), hereof; provided,
      this Agreement may be extended for additional periods or its terms amended
      upon the mutual written agreement of the
  Parties.

                

        

      

        

      
        	
                4.  

              	
                Position.  The
      Employee shall be employed in the capacity of Chief Financial Officer
      with such managerial, administrative and other services as are
      customarily associated with or incident to such position and shall perform
      such other duties and responsibilities for the Company as the Company may
      reasonably require, consistent with such position.  The Employee
      shall not be assigned nor requested to perform duties or functions for
      which he has not been adequately trained or for which he does not have
      adequate education and/or professional
  experience.

              

      

       

      
        	
                5.  

              	
                Extent of
      Services.  The Employee shall diligently and
      conscientiously devote Employee’s time, attention and energies to the
      business of the Company and shall not, during the term of this Agreement,
      be engaged in any other full time business activity whether or not such
      business activity is pursued for gain, profit, or other pecuniary
      advantage; however, except as set forth in Section 16, this provision
      shall not be construed as preventing the Employee from investing
      Employee’s assets in such form or manner as will not require full-time
      services on the part of the Employee outside of the
    Company.

              

      

       

      
        	
                6.  

              	
                Working
      Facilities.  The Employee shall be furnished with such
      facilities suitable to Employee’s position and adequate for the
      performance of Employee’s duties and the conduct of the Company’s
      business.   The Employee’s principal office shall be
      located in the area selected by the Company; provided, however, the
      Employee agrees to do such traveling as is required to carry out
      Employee’s duties hereunder.

              

      

       

      
        	
                7.  

              	
                Compensation.  The
      Company’s Board of Directors or the management of the Company may increase
      the Employee’s Company Monthly Base Pay from time to time as the Board may
      see fit to grant such an increase. The Employee shall be a participant in
      any deferred compensation, bonus and/or stock option plans designed and
      implemented by the Company’s Board of Directors for the benefit of the
      Company’s key executives and employees.   The Employee
      shall participate in any such plans at a level commensurate with
      Employee’s position with the
Company.

              

      

       

      
        	
                A.  

              	
                Company Monthly Base
      Pay. For all services rendered by the Employee under this
      Agreement, Employee shall be paid a salary in the sum of $ 120,000 per
      year, beginning on February 1, 2008. These amounts shall be paid in equal
      monthly or bi-monthly installments to the Employee as Company Monthly Base
      Pay.  Employee will also receive a monthly auto allowance not to
      exceed $1,000 per month.  Employee will be required to maintain
      full coverage insurance on the vehicle during the term of this
      agreement.

              

      

       

      
        	
                B.  

              	
                Benefits. Employee shall
      be eligible for Company-paid health insurance, dental insurance, 401K Plan
      when available, short/long term disability coverage and other benefits
      that are and may become available. Employee shall be eligible to
      participate in any such benefits at a level commensurate with Employee’s
      position with the Company.  Employee will also be given 100,000
      shares of Company stock upon execution of this
  agreement.

              

      

       

      
        	
                8.  

              	
                Expenses.  All
      expenses for transportation and travel, including business use of personal
      automobile, incurred by the Employee for the furtherance of the legitimate
      business interests of the Company, shall be reimbursed or directly paid by
      the Company upon presentment of receipts in accordance with the record
      keeping requirements of the Internal Revenue
  Service.

              

      

       

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

       

       

      
        	
                9.  

              	
                Right to
      Participate.  The Employee shall have the right to
      participate in all other benefits of employment generally made available
      to the Company’s executive and managerial employees including but not
      limited to medical, dental, disability, life insurance, retirement plans
      and any other benefit(s) presented by the Company’s Board of Directors and
      befitting the Employee’s position and performance as
      available.

              

      

       

      
        	
                10.  

              	
                Vacation.  The
      Employee shall be entitled to paid vacation, as
  follows:

              

      

       

        Ten (10)
working days during the 2008 calendar year

       

        Fifteen (15)
working days during the 2009 calendar year

       

      For
purposes hereunder, the term “working days” refers to Monday through Friday,
exclusive of weekends and holidays, observed by the Company as determined by the
Board of Directors.  Employee will not schedule vacation without prior
written approval from the Company’s CEO.   Unused vacation days
may not be carried into the next calendar year nor will the Employee receive
compensation for unused vacation days, unless Employee’s work requirements cause
Employee to miss vacation days, in which case Employee can carry over unused
vacation days or be compensated for unused vacation days.

       

      
        	
                11.  

              	
                Warrants.  The
      Company will issue to employee 400,000warrants to purchase the Company’s
      common stock at a strike price of $.50.   These warrants
      will be effective in 100,000 share blocks available at the end of the next
      4 fiscal quarters starting with the quarter ending September 30,
      2008.   The employee will exercise these warrants with
      either a payment in cash, an interest bearing note to the Company at a
      rate of six (6) percent per annum or through a cashless
      exercise.  The formula for the cashless exchange is as
      follows:

                 

                                  X
      =    Y (A-B)

                                         -------

                                             A

                 

                Where:

                 

                       X
      = the number of shares of Common Stock to be issued to the Holder in
      respect of a Cashless Exercise

                 

                       Y
      = the number of shares of Common Stock purchasable under the Option or, if
      only a portion of the Option is being exercised, the portion of
      the

                             
      Option being canceled in connection with such Cashless Exercise (at the
      date of such calculation)

                 

                       A
      = the Fair Market Value (as defined below) of one share of the
      Corporation's Common Stock (at the date of such calculation)

                 

                       B
      = Option Exercise Price (as adjusted to the date of such
      calculation).

                 

              
	
                12.  

              	
                Disclosure
      of Confidential Information.

              

      

       

      
        	
                A.  

              	
                Confidentiality.  Except
      as required in the performance of Employee’s duties during the term of
      Employee’s employment by the Company, the Employee shall treat as
      confidential and shall not, directly or indirectly, use, disseminate,
      disclose, publish, or otherwise make available any Confidential
      Information or any portion thereof.   This provision shall
      remain in effect for a period of two (2) years after any termination of
      such employment.

              

      

       

      
        	
                B.  

              	
                Return of Confidential
      Information.  Upon termination of Employee’s employment
      with the Company, all documents, records, notebooks, and similar
      repositories containing Confidential Information, including copies
      thereof, then in the Employee’s possession, whether prepared by him or
      others, shall be promptly returned to the Company.  If at any
      time after the termination of employment the Employee determines that he
      has any Confidential Information in Employee’s possession or control, he
      shall immediately return to the Company all such Confidential Information,
      including all copies and portions
thereof.

              

      

       

       

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

       

      
        	
                13.  

              	
                Disability.  To
      the extent not covered by the Company’s disability insurance, if any, if
      the Employee is unable to perform Employee’s services during the term of
      this agreement by reason of illness or incapacity, he shall receive
      Employee’s full compensation during the first two (2) months of such
      disability, to the extent not covered by the Company’s disability
      insurance, if any.   If such disability should continue for
      longer than two (2) months, the compensation otherwise payable to the
      Employee during the continued period of disability shall be reduced by
      fifty percent (50%) provided such continued period of disability lasts no
      longer than four (4) months.  The Employee’s full compensation
      shall be reinstated upon Employee’s return to employment and the discharge
      of Employee’s full duties hereunder.  This provision shall not
      be operative until all benefits under the Company’s long-term disability
      insurance plan, if any, have been calculated and shall not be considered
      in determining the amount of benefits under any such insurance
      plan.

              

      

       

      
        	
                A.  

              	
                In
      the event of disability of the Employee, shares of the Company, as
      provided in Section 7(B) of this Agreement shall continue as if this
      Agreement were in full force and
effect.

              

      

       

      
        	
                14.  

              	
                Death during
      Employment.  If the Employee dies during the term of this
      Agreement, this Agreement shall be terminated; provided, however, the
      Company shall pay to the estate of the employee any salary which would
      have otherwise been earned for the balance of the month in which the
      Employee’s death occurred.  The estate will also have the
      ability to exercise any available and earned warrants.  This
      exercise will be available for a thirty (30) day
  period.

              

      

       

      
        	
                15.  

              	
                Non-Competition.  During
      the term of this Agreement and or as long as thereafter as Employee is
      receiving unemployment insurance:

              

      

       

      
        	
                A.  

              	
                For
      a period of Three (3) years after Termination, the Employee shall not
      engage in competition with the Company, either directly or indirectly, in
      any manner or capacity, as advisor, consultant, principal, agent, partner,
      officer, director, stockholder, employee, representative, spokesman or
      otherwise, in any phase of the business carried on by the Company at any
      time.

              

      

        

      
        	
                B.  

              	
                For
      a period of Three (3) years after the termination of this Agreement, the
      Employee shall not solicit anyone who was an employee of the Company when
      the Employee’s employment with the company terminated or solicit anyone
      then employed by the Company to terminate or refrain from renewing
      Employee’s or her employment with the
Company.

              

      

       

      
        	
                C.  

              	
                For
      a period of Three (3) years after the termination of this Agreement, the
      Employee shall not, either directly or indirectly, solicit any customer,
      broker, or distributor of the Employer, for such products as are
      manufactured and/or sold by the Employer, and Employee will similarly not
      engage in the business of the manufacture and sales of such products as
      are manufactured and/or sold by the Employer within the said
      period.

              

      

       

      
        	
                16.  

              	
                Termination.  The
      Employee may terminate this Agreement upon thirty days (30) written notice
      to the Company.  Upon the effective date of the Employee
      terminating this Agreement, the Employee’s entitlement to any salary or
      other benefits hereunder shall cease subject to the provisions of Section
      13.

              

      

       

      
        	
                A.  

              	
                The
      Employer may terminate this Agreement at any time with twenty-four (24)
      hours prior written notice if the Employee commits any material act of
      dishonesty, discloses confidential information, is guilty of gross
      misconduct, or acts in any way that has a direct, substantial and adverse
      effect on the Company’s reputation.  Upon the effective date of
      the Company terminating this Agreement, the Employee’s entitlement to any
      salary or other benefits hereunder shall
cease.

              

      

       

       

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

       

      
        	
                17.  

              	
                Certain Provisions to Survive
      Termination.  Notwithstanding any termination of this
      employment under this Agreement, the Employee, in consideration of
      Employee’s employment hereunder to the date of such termination, shall
      remain bound by the provisions of Section 12 and 15.  It is
      acknowledged that the Company would be irrevocably damaged if the Employee
      were to violate the provisions of Section 12 and/or 15, and consequently,
      in addition to all other remedies that may be available to it, the Company
      shall be entitled to injunctive relief for any actual or threatened
      violation of such Sections.

              

      

       

      
        	
                A.  

              	
                In
      the event of termination of the Agreement as a result of the disability or
      death of the Employee, it is agreed that the provisions of Section 7(B)
      relating to shares of the Company shall continue as if the Employee were
      alive and fulfilling Employee’s obligations under this Agreement and not
      disabled or dead.

              

      

       

      
        	
                18.  

              	
                Notice.  All
      notices herein shall be in writing and shall be deemed to have been duly
      given at the time personally delivered or deposited in the United States
      Mail, postage prepaid, to the address of the respective parties set forth
      below their signatures hereto, subject to changes upon notice to the other
      party.

              

      

       

      
        	
                19.  

              	
                Waiver.  Failure
      to insist upon a strict compliance with any of the terms or conditions of
      this Agreement shall not be deemed waiver of such terms or conditions, nor
      shall any waiver of any term, condition or right of any party at any time
      be deemed a waiver of any other term, condition or right of any party
      hereto, nor shall it preclude the party from subsequently asserting or
      relying upon such term, condition or
right.

              

      

       

      
        	
                20.  

              	
                Severability.  The
      invalidity or enforceability of any provision hereof shall in no way
      affect the validity or enforceability of any other
    provision.

              

      

       

      
        	
                21.  

              	
                Modification.  There
      are no verbal understandings between the Parties.  This
      Agreement contains the entire agreement of the Parties and shall not be
      changed, modified, or terminated, except in writing signed by the
      Parties.

              

      

       

      
        	
                22.  

              	
                Construction.  This
      Agreement shall be construed in accordance with the laws of the State of
      Georgia.

              

      

       

      
        	
                23.  

              	
                Assignment.  The
      rights and obligations of the Company under this Agreement shall inure to
      the benefit of and shall be binding upon the successors and assigns of the
      Company.  The Employee’s rights, powers, privileges and
      immunities under this Agreement shall not be assignable by the Employee
      without the prior written consent of the
  Company.

              

      

       

      
        	
                24.  

              	
                Binding
      Effect.  This Agreement shall be binding upon and shall
      inure to the benefit of the Parties and their respective heirs, legal
      representatives, successors and
assigns.

              

      

       

       

      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

       

      IN WITNESS WHEREOF, the
Parties have hereto set their hands on the day and year first above
written.

       

       

      
        
          	 
      	
                  COMPANY:
      Advanced Growing Systems, Inc.

                	 
      
	 
      	 
      	 
      	 
      

        

      

       

      This
agreement is hereby ratified by a majority of the Advanced Growing Systems, Inc.
Board of Directors on this 29th day of
August, 2008.

       

      
        
          
            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                    By:

                  	
                    /s/ Chris
      J. Nichols

                  	 
      
	 
      	
                    Name:

                  	
                    Chris
      J. Nichols

                  	 
      
	 
      	
                    Title:

                  	
                    Chairman/CEO

                  	 
      
	 
      	 
      	 
      	 
      

          

        

      

       

       

       

      
        
          
            	
                     EMPLOYEE:

                  	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                    By:

                  	
                    /s/ Dan
      K. Dunn

                  	 
      
	 
      	
                    Name:

                  	
                    Dan
      K. Dunn

                  	 
      
	 
      	 
      	 
      	 
      

          

        

      

      
-6-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00152-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00152-of-00352.parquet"}]]