EXHIBIT 10.1
AGREEMENT
IT IS AGREED effective the 3rd day of March, 1998 by, between and among Xxxxxx
Family Farms, Inc. ("MFF") and Bion Technologies, Inc. ("BION") as follows:
1) BION shall design and supervise permitting, construction and operation
of BION Nutrient Management Systems (NMS" or "System") at the locations
and in the approximate sizes as set forth herein:
a) Multiple NMS installations at Circle Xxxx Xxxx, Xxxxx XX,
Xxxxxxx, Xxxx including facilities adequate to process excess
nutrients from not less than 10,000 sows, 32,000 nursery
pigs and 40,000 finishing hogs, in aggregate;
b) Three NMS installations in Kansas (two in Lane County, one in
Xxxxxxxx County), each including facilities adequate to
process excess nutrients from not less than 11,000 sows;
c) One NMS installation in Xxxxxx County, Missouri including
facilities adequate to process excess nutrients from not less
than 75,000 sows;
d) Two to four NMS installations in the area of Laverne, Oklahoma
including facilities adequate to process excess nutrients from
not less than 40,000 finishing hogs, in aggregate;
e) An NMS for the Squire sow farm in Bladen County, North Carolina
adequate to process excess nutrients from not less than 3,600
sows;
f) One demonstration NMS system in Iowa adequate to process excess
nutrients from not less than 3,300 finishing hogs which NMS
shall include a polishing ecoreactor and other components
adequate to allow recycling and/or discharge of water from
the NMS;
g) Additionally, MFF shall have the right to designate one existing
hog facility in North Carolina for a demonstration NMS system
which shall include a polishing ecoreactor and other
components adequate to allow recycling and/or discharge of
water from the NMS.
2) This Agreement (the "AGREEMENT") and, each NMS created pursuant
hereto, shall be subject to each and every provision of the
existing agreement concerning the Squire sow farm set forth at
Exhibit A hereto (except the provisions which are site specific
to the Squire sow farm) provided, however that the provisions
concerning fees shall be controlled by the terms set forth herein.
3) MFF (or the actual owner of each facility) shall sign a note payable
for BION fees calculated as follows:
Finishing Nursery
Sow Hog Hog
--- --- ---
Basic fees (one time) $7.00 $4.00 $1.00
Monitoring fees (monthly) $0.175 $0.10 $0.025
Fees shall be on a per animal "slot"basis. Fees shall be due under the note
as set forth in Exhibit B hereto. Monitoring fees shall be due under the note
for each of the first 48 months of operation of each NMS as per Exhibit B
hereto.
4) Until June 30, 1998 MFF may designate additional swine facilities for
which, subject to BION's right to reject such facilities on the basis
of economic, geographic or site specific characteristics, BION shall
design and supervise permitting, construction and operation upon the terms
and conditions set forth herein. MFF shall make such additional
designation in writing delivered to BION's Colorado executive offices.
5) On the last day of each of the first four years in which BION harvests
bio-solids from each NMS, BION shall pay and offset against the note
(at Exhibit B hereto) to MFF (or the actual owner of each facility on
which the NMS had been installed) a royalty of $3.85 per sow slot; $2.20
per finishing hog slot; and $0.55 per nursery hog slot. BION shall
have the right and obligation to offset these royalties against
any sums then due to BION with respect to each such NMS including
without limitation fees due on the note to BION pursuant to paragraph
3 above. In the event BION does not harvest bio-solids, then no sums
under the note become due and payable.
6) Notwithstanding any language or implication of any sort whatsoever herein
or elsewhere, MFF acknowledges that:
a) all technologies (existing or as modified, extended, etc. in the future)
involved or embodied in the NMS installation are the sole property of
BION; and
b) all bio-solids (and/or "BionSoil") produced by each NMS are the sole
property of BION (subject to the limited royalty set forth above).
7) This AGREEMENT immediately binds the parties as to the NMS installations
set forth at paragraph 1 c), e), and g) above, provided such
installation locations are available to MFF on a reasonable and practical
basis. MFF shall use its best efforts to amend permit applications in
process or take such other steps to facilitate use of
BION NMS systems on the proposed swine farms. MFF shall use its best
efforts to obtain necessary consents and approvals from its partners,
co-owners and/or growers for the NMS installations set forth at paragraph
1 a), b), d), and f) above within the next thirty days.
8) In the event BION shall cease business for any reason whatsoever during the
term of the Agreement and there is no successor business, MFF is hereby
granted a limited license to use the technology owned by BION which
is incorporated in the NMS's set forth at paragraph 1 a) through g) above
and any additional NMS's for systems added pursuant to paragraph 4 above for
operation of the NMS's during the balance of the term of the Agreement.
Additionally, in such event, MFF may hire (as employees and/or consultants)
persons who were formerly employed by BION to aid MFF in the
operation of the NMS's.
9) MFF and BION agree to execute such other documents as may be reasonably
required to carry out the terms of this agreement as set forth
above.
XXXXXX FAMILY FARMS BION TECHNOLOGIES, INC.
by: /s/ X. Xxxxxx by: /s/ X. Xxxxxxxx
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Authorized Officer Authorized Officer
EXHIBIT LIST
Exhibit X. Xxxxxx Farm Contract
Exhibit B. Payment due pursuant to AGREEMENT shall be evidenced by one or more
non-interest bearing promissory notes in the form set forth below.
Exhibit A
BION NMS TM INSTALLATION AGREEMENT
This agreement (the "AGREEMENT"), made and entered into this 21st day of
November, 1997, by and between BION TECHNOLOGIES, INC. a corporation organized
under the laws of Colorado and having a place of business at 000X Xxxxx Xxxxx
Xx., Xxxxxxxxxx, XX (hereinafter called "BION") and Xxxxxx Family Farms,
having an office at Rose Hill, NC, (hereinafter called "PRODUCER") for the
facility known as Squire Sow Farm.
WITNESSETH
WHEREAS, BION is a technology based company which has developed and
possesses pending and granted patent assets and certain confidential
proprietary information, data and experience relating to systems for the
treatment and processing of animal waste, for the production of organic soils,
humus, fertilizers, remediated organics and mixtures with other materials
which is considered by BION to be secret and confidential and to constitute a
valuable commercial asset.
WHEREAS, PRODUCER and BION acknowledge and understand the secret and
confidential nature of each others confidential proprietary information, data,
and experience, and by executing this AGREEMENT Both PRODUCER and BION
specifically agree to maintain such information, data and experience
confidential and agree not to use such information, data and experience in the
performance of any other work for itself or others.
NOW, THEREFORE, the parties hereto do mutually agree to conduct their
business relationship as follows:
1. ENGAGEMENT OF BION
PRODUCER hereby agrees to engage BION and BION hereby agrees to perform the
services set forth in ATTACHMENT A.
2. SCOPE OF SERVICES
BION shall provide services, hereinafter referred to as the WORK, as set forth
in ATTACHMENT A in accordance with the Standard Terms and Conditions of this
AGREEMENT (ATTACHMENT B). BION retains the right to alter the WORK in
terms of the specific requirements of the project.
3. PRODUCER'S RESPONSIBILITIES
PRODUCER agrees to:
provide to BION information, including previous reports, plans, and any other
data in the possession or control of the PRODUCER relative to the WORK;
give prompt written notice to BION whenever PRODUCER observes or otherwise
becomes aware of any development that affects the WORK or timing of BION'S
services;
designate a representative having authority, to give instructions, receive
information, define PRODUCER'S policies, and make decisions with respect to
the WORK;
bear initial and ongoing expenses (including, but not limited to, field and
laboratory tests and surveys) for obtaining any and all approvals and permits
from public agencies or authorities;
bear the cost of all surveying, soils investigation, engineering services,
equipment, materials, and construction required to design, install and operate
the Bion NMS including electrical power and equipment maintenance and
replacement;
physically operate and maintain the Bion NMS and its associated equipment as
described in the operations and maintenance manual to be supplied to PRODUCER,
and bear all sampling, analysis, and reporting costs for monitoring of the
Bion NMS as required by the appropriate regulatory agencies (failure to
operate and maintain the Bion NMS and associated equipment may result in
bio-solids of lessened or no value and relieve BION of any responsibility for
harvesting and disposition of such bio-solids); and,
keep all human wastes and toxic and hazardous wastes out of the Bion NMS
including but not limited to all domestic wastewater from showers, toilets,
sinks, and any needles, syringes, or any veterinary wastes (cleaners,
detergents, and disinfectants approved for use in normal operation of the
facility will not be considered toxic or hazardous wastes).
4. PERIOD OF PERFORMANCE
The term of this AGREEMENT shall be for the period beginning on the date of
execution and shall continue for a period of 15 years. The AGREEMENT may be
extended or amended by written agreement between BION and PRODUCER.
5. DESIGN AND CONSTRUCTION SERVICES COMPENSATION
Each site where a Bion NMS is being installed has its unique character. This
requires BION to individually design the application of the Bion NMS for each
site at which it is to be installed. BION'S goal is to design each Bion NMS
application to complement the existing facilities' operation, and attempt to
incorporate existing structures as practicable. The PRODUCER agrees to pay
BION for the services described in ATTACHMENT A, the aggregate sum of $ 30,000
payable as follows:
$10,000 for the pre-design scope of services identified in Section 1 of
ATTACHMENT A. The fee will be due upon the execution of this AGREEMENT.
$10,000 for the design services identified in Section 2 of ATTACHMENT A.
The fee will be due upon completion of the pre-design services.
$10,000 for the construction consultation services identified in Section
3 of ATTACHMENT A. The fee will be due upon construction start-up.
Late payment charges of 1.5% per month, payable to BION, will be due if
payments are not received within 30 days from the invoice date. PRODUCER will
be responsible for any and all reasonable legal and/or court expenses incurred
by BION in BION'S attempt to recover any unpaid amounts in case of failure of
the PRODUCER to pay BION for services performed and/or expenses incurred for
PRODUCERS account.
For WORK provided by BION beyond the scope of services described in ATTACHMENT
A, or for unforeseen circumstances or changes in the scope of services
requested by the PRODUCER, BION shall be compensated for such services as
negotiated by BION and the PRODUCER provided BION has written authorization
from PRODUCER to provide such services.
6. BION NMS SYSTEM OPERATION COMPENSATION AND PAYMENT
The PRODUCER agrees to pay BION, for the Bion NMS start-up and operational
services as described in ATTACHMENT A, the sum of $125 per month for the full
term of the AGREEMENT.
Bio-solids which are produced by the Bion NMS are owned by BION. BION agrees
to harvest, process and remove all acceptable bio-solids from the site.
Acceptable bio-solids shall include in meaning all bio-solids produced under
strict adherence to operational directives.
BION reserves the right to reject all bio-solids which are contaminated with
human wastes or toxic or hazardous materials, including but not limited to,
needles, syringes, or other veterinary wastes or other foreign material.
Harvest and disposal of such rejected bio-solids (and the costs related
thereto) is the sole responsibility of PRODUCER.
This AGREEMENT, including ATTACHMENT A, is subject to the Terms and Conditions
(ATTACHMENT B) which are made part hereof and which PRODUCER acknowledges that
he has read. IN WITNESS WHEREOF, the parties have caused this agreement to be
executed this ______day of ___________, 1997.
BION TECHNOLOGIES, INC. PRODUCER:
By:____________________________ By:______________________________
Title:__________________________
Title:_____________________________
ATTACHMENT A
SCOPE OF SERVICES
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Bion Technologies, Inc. (BION) has developed a patented waste management
system, Bion NMS' which treats all aspects of an agricultural waste stream.
Every Bion NMS system is as unique as the agricultural facility on which it is
constructed. BION individually designs each Bion NMS to complement the
existing facilities' operation while optimizing any existing components which
may be usable. The Bion NMS is designed in accordance with BION system
standards and in compliance with Natural Resources Conservation Service (NRCS)
Standards and Specifications for waste storage structures. As used in this
ATTACHMENT A, "PRODUCER" shall include PRODUCER plus engineers, surveyors,
contractors and other such professionals hired by PRODUCER for this project.
The following describes the WORK to be conducted by BION for Xxxxxx
Family Farms' Squire Sow Farm Facility, containing 3,500 sows, 1,000 finishing
head, and 400 nursery pigs.
SECTION 1
PRE-DESIGN SERVICES
BION will coordinate the pre-design activities required for the design of
the Bion NMS to be constructed at the facility. The pre-design information
detailed below must be provided to BION to ensure proper design and
construction of the Bion NMS.
BION will coordinate with the PRODUCER to obtain the site specific
information required to complete the individually designed Bion NMS. The
information needed to complete the design includes, but is not necessarily
limited to; topographic survey information, geologic investigation, regulatory
information, wetlands information, and flood prone areas information.
1.1 TOPOGRAPHIC SURVEY INFORMATION
PRODUCER shall provide BION with a topographic survey of the site. The
topographic survey provided to BION must include a survey of the site with one
(1) foot contour intervals tied into a local horizontal coordinate system.
The survey information must be readable by AutoCADD. The survey will also
locate the existing buildings and other landmarks needed to locate and design
the Bion NMS. The surveyors will also provide the initial component location
construction stakes. BION has assumed that the surveyors will only conduct
one site visit to layout the construction stakes. The surveyors will also
conduct one site visit at the end of the construction to survey the as-built
location of the Bion NMS. BION shall submit all subcontracted professional
land surveying invoices directly to PRODUCER for payment.
1.2 GEOLOGIC INVESTIGATION
The geologic investigation will be conducted prior to the design of the Bion
NMS. The purpose of the
investigation is to evaluate the suitability of the site by examining
subsurface soils, bedrock, and groundwater conditions. The investigation will
consist of a data search and on-site test pits.
Before beginning the soils investigation for a potential structure, the
following information will be examined: published soil surveys, groundwater
maps, general geology maps, and any previous designs of structures in the same
area.
Test pits will be used to investigate the proposed Bion NMS component
locations. Test pits are helpful in delineating areas where permeable soils
are occurring, and where caving may present problems during construction. The
test pits will be dug by a backhoe or excavator capable of digging to a depth
below the planned bottom of the proposed structure. PRODUCER will excavate
one (1) set of test pits for each component of the Bion NMS. BION assumes
that only one set of test pits will be required in order to locate the
component. Each test pit will be logged for the following information:
typical soil name, maximum particle size, estimates of plasticity, color, and
moisture, Unified Soil Classification System symbol, location of seeps or
groundwater, and depths of collected samples. One (1) sample will be
collected from one of the test pits excavated and analyzed for in place
permeability, grain size, and Atterburg limits. A determination of the depth
to groundwater, or seasonal high water table, and bedrock location will be
determined from the data search and the test pits. BION assumes that no
compaction of the soils will be necessary to achieve a permeability rate of
10-6 cm/sec or less. BION also assumes that no groundwater monitoring xxxxx
will be necessary to complete the design, construction and operation of the
Bion NMS. BION shall submit all subcontracted geologic investigation invoices
directly to PRODUCER for payment.
1.3 REGULATORY INFORMATION
Prior to BION designing the system, PRODUCER will investigate the
regulations affecting the physical location and construction of the Bion NMS.
Regulations could include local zoning ordinances, Department of Health
requirements, State environmental conservation and/or other Federal agency
requirements. BION may need to identify the project location and type during
various conversations with PRODUCER and regulatory agencies.
1.4 WETLANDS INFORMATION
During the early planning stages, PRODUCER will determine the proximity
of the prospective Bion NMS site to wetlands. BION will consult, as needed,
with PRODUCER and the State regulatory authorities concerning freshwater
wetland regulations that may be applicable. In addition, PRODUCER may be
required to consult with USDA's Fish and Wildlife Service and the U.S. Army
Corps of Engineers for wetlands under their jurisdiction.
1.5 FLOOD PRONE AREAS
PRODUCER will check with local zoning agencies for flood zone maps and
restrictions that may be applicable. The Bion NMS must be protected from
flooding so that a flood event does not cause high nutrient material to be
washed out.
SECTION 2
PRELIMINARY DESIGN SERVICES
BION will coordinate the site specific Bion NMS design. BION will
prepare the initial System layout and specifications necessary for the
PRODUCER to prepare the detailed construction drawings and final
specifications required for construction of the Bion NMS on the PRODUCER'S
site. BION will be available continuously during this engineering phase for
consultation. The final design drawings will be completed with due regard for
the comments received from the PRODUCER during review of the preliminary
design drawings. BION will supply the final verification of completeness of
the drawings, with the PRODUCER's mutual consent.
PRODUCER will provide BION with three (3) copies of the final design
drawings and specifications.
BION will prepare an engineering design report, if required, detailing
all calculations and design criteria. BION will also prepare a permit
application, if required, for PRODUCER.
SECTION 3
CONSTRUCTION CONSULTATION SERVICES
BION will provide an on-site construction reviewer for the purpose of
ensuring the proper construction of the Bion NMS. BION will provide a
reviewer for a maximum of eight (8) hours per week during the active
construction of the Bion NMS. BION will notify PRODUCER in writing of any
major problems associated with the Bion NMS construction. If required, BION
will prepare a certification report detailing all QC/QA sampling results and
as-built conditions.
SECTION 4
OPERATIONAL SERVICES
BION will provide on-site consultation services during the Initial
Start-up and Long-term operation of the Bion NMS.
BION will prepare an operations and maintenance manual for the PRODUCER
to keep at his facility to refer to for specific operational information.
BION will provide an on-site start-up technician for a total of eight (8)
hours per week for the first four (4) weeks of system operation. BION may
provide additional support at its discretion, if needed.
BION will provide an on-site operational technician during the long-term
operation of the system. BION will provide a technician for up to a total of
eight (8) hours per month during the normal operation of the Bion NMS. BION
will provide PRODUCER with copies of the field visit reports. The field visit
report may indicate recommended actions to be taken by the PRODUCER.
ATTACHMENT B
STANDARD TERMS AND CONDITIONS
--------------------------------
1. License Bion NMS' is a proprietary process owned and developed by
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Bion Technologies, Inc. (BION). It is protected by issued patents and patent
applications on file with the U.S. Patent office as well as by confidential
information data and experience regarding the Bion NMS, each and all of which
are considered to be valuable proprietary technology assets to BION. The term
"Technology", as used in this AGREEMENT, is comprised of, without limitation,
the patents held by BION, secret and confidential information, data and
experience regarding the Bion NMS, the Specifications and drawings having been
prepared specifically as to the application of BION proprietary information
and know-how regarding the subject matter of this AGREEMENT, together with all
information, communications and documentation provided by BION or its agents
for the purpose of constructing the project contemplated by this AGREEMENT.
In conjunction with this AGREEMENT, BION grants a non-exclusive license to the
PRODUCER to use the Technology only on the Site specified ("Site License"),
under the terms and conditions set forth in this AGREEMENT for the sole
purpose of construction, operation and maintenance of the Bion NMS. The Site
License provided by BION to PRODUCER does not and shall not be construed to
create a joint venture or partnership between BION and PRODUCER. The Site
License will continue in full force and effect while the AGREEMENT between the
parties is in full force and effect and will automatically terminate upon
termination of such AGREEMENT.
The term of this AGREEMENT is for 15 years and is renewable thereafter on
the same terms. If the AGREEMENT is not renewed or is terminated for any
reason, the Site License will be revoked and the Bion NMS must be dismantled
and permanently taken out of service by PRODUCER so that it cannot be used, in
whole or in part, to produce bio-converted solids, or any similarly produced
manure byproduct, for sale or other use, including use on the PRODUCER'S Site.
2. Warranty
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As to any equipment and goods specified, recommended or chosen by or with
the assistance of BION, PRODUCER will look solely to the manufacturer/supplier
of such equipment or goods respectively for defects in such equipment or
products.
3. Limitation of Liability
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Notwithstanding anything to the contrary in this AGREEMENT, it is
expressly agreed that, provided the Bion NMS operates as described in the
attached proposal, as amended, BION will in no event be liable for any
consequential, incidental or special damages, including lost profits, relating
to the use or performance of the Bion NMS or for any actual damages in excess
of that portion of the purchase price actually paid by PRODUCER to BION
hereunder. PRODUCER agrees that the system is designed for the specific use
described in the proposal and is not designed for any significant change in
the characteristics of the waste and wastewater influent. PRODUCER further
agrees that if the Bion NMS performs according to the proposal, as amended
after the completion of one year of Bion NMS operation or an agreed upon
testing period, BION has no further liability for Bion NMS performance.
4. Confidentiality
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PRODUCER acknowledges that the design of the system and the know-how and
technical, financial and commercial information, data and experience provided
by BION to build and operate the Bion NMS, including design, construction
drawings, specifications, the operations and maintenance manual (the
"Manual"), and all related information are confidential in nature and
proprietary to BION (collectively "Confidential Information"). Without BION'S
prior written consent, PRODUCER will not, directly or indirectly, disseminate
or make accessible all or any portion of such Confidential Information to any
third party, except (i) employees, contractors, and agents of PRODUCER who
have agreed to maintain the confidentiality of all Confidential Information to
the same extent as PRODUCER is bound hereunder, and (ii) as required by law.
Without approval from BION, PRODUCER will not copy, in whole or in part,
the Manual or any other materials containing Confidential Information. Upon
termination of the AGREEMENT, PRODUCER will return the Manual and all other
records, reports, letters, memoranda, drawings, or other tangible media of
expression containing or embodying Confidential Information to BION including
all approved copies thereof.
5. Force Majeure Neither party will be liable to the other and
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neither will be deemed in default hereunder for any failure or delay caused by
or arising out of the following conditions of force majeure: fire, explosion,
war, riot, strike, walk-out, labor controversy, naturally occurring flood,
shortage of water, power, labor, transportation facilities or necessary
materials or supplies, default or failure of carriers, act of God or public
enemy, any law, act or order of any court, board, government or other direct
authority or competent jurisdiction, or any other direct cause (whether or not
of the same character as the foregoing) beyond the reasonable control of such
party.
6. Assignments No rights or obligations of PRODUCER under this
-----------
AGREEMENT may be assigned without prior written consent of BION except to a
successor or assignee of all rights of the PRODUCER in and to the site who
agrees to be bound by and assume all of the PRODUCER'S obligations as set
forth in this AGREEMENT. This provision shall also apply to any person or
entity required to sign a confidentiality/non-disclosure agreement pursuant to
this AGREEMENT.
7. Binding Effect, Governing Law This AGREEMENT will be binding upon
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and inure to the benefit of the parties hereto and their respective successors
and permitted assigns. The laws of the state where the Site is located,
without regard to choice of law principles, shall apply to the interpretation
and construction of this AGREEMENT.
8. Severability Each provision of this AGREEMENT will be considered
------------
severable and if any provision of this AGREEMENT shall be invalid, illegal or
unenforceable, it will not affect or impair the validity, legality or
enforceability of this AGREEMENT itself or of any other provision hereof.
9. Remedies PRODUCER agrees that the remedy at law for a breach of
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section 1 or Section 4 of these Terms and Conditions will be inadequate and
that BION will be entitled to injunctive relief for such a breach, which
relief will be cumulative to other remedies and relief ordinarily available
under such circumstances and will not be construed as an exclusive remedy or
relief without arbitration.
10. Notices Notices and other communications required by laws,
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ordinances, rules, regulations and orders of public authorities, or permitted
to be given hereunder, will be in writing, and will be deemed given to a party
when delivered personally, or five (5) days after being deposited in the
United States mail with sufficient postage affixed, registered or certified
and return receipt requested, addressed to such party at the address below:
To BION at: Bion Technologies, Inc.
_______________________________________
_______________________________________
Attn:__________________________________
To PRODUCER at:_______________________________________
_______________________________________
_______________________________________
Attn:__________________________________
or at any such other address or addresses as may be given by either of them to
the other in writing from time to time.
11. Indemnification PRODUCER agrees to indemnify, defend, and hold
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harmless BION and BION'S employees and agents from any claim, loss, damage,
cost, expense or liability arising out of or relating to the gross negligence
or willful misconduct of PRODUCER or PRODUCER'S employees or agents in
connection with any services to be performed or provided by PRODUCER under
this AGREEMENT. PRODUCER agrees that the services provided by BION is
specific consideration for this provision.
Exhibit B
SAMPLE
NON RECOURSE
PROMISSORY NOTE
Per Agreement March 3, 1998
Rose Hill, NC
Xxxxxx Farms, Inc. ("Maker") promises to pay to the order of Bion
Technologies, Inc. ("Holder") at ____________________________, Denver, CO or
at such other place as may be designated in writing by Holder or its assigns,
the principal sum due, without interest thereon, until fully paid. Such
principal shall be payable as follows: Sums due under this note arise under
the fee related paragraph number three (3) of the Agreement dated the ______
day of ___________, 1998 between Maker and Holder and are to be paid solely
from the sums due under the royalty related paragraph number five (5). If no
sums become or are due Maker from Holder under the royalty related paragraph
number five (5) in the aforesaid Agreement, then no sums will be due under
this note.
This Note shall be non-recourse to the Maker. The Holder, for itself and its
representative, successors, endorsees and assigns, agrees, by acceptance
hereof, that the Maker shall not be liable on this Note except as payments are
received by Maker under the Agreement as described above and that it shall not
seek to enforce any liability or obligation of the Maker to perform the
obligations contained in this Note by any action or proceeding wherein a money
judgment shall be sought against the Maker, and that any judgment or decree
shall be enforceable against the Maker only to the extent of, and the Holder
shall look for payment hereof solely to, the Maker's interest in the royalties
due under the Agreement described above.
Under no circumstances shall any director, officer, employee or agent of the
Maker be personally liable for any obligation of the Maker arising pursuant to
the provisions of this Note.
Except as provided in the next succeeding sentence, this Note is not
assignable by either the Maker or the Holder without the written consent of
the other. The Holder may assign its rights hereunder to a wholly-owned
subsidiary of the Holder or, with the prior consent of the Maker, which
consent shall not be unreasonably withheld, to the shareholders of the Holder.
This Note and the rights and obligations of the parties hereto shall be
governed by and construed in accordance with the laws of the state of North
Carolina without regard to conflict of law principles.
___________________________________
Xxxxxx Farms, Inc.
ACCEPTED AND AGREED:
___________________________________
Bion Technologies, Inc.
Date:
