Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

(b) and (e). On October 21, 2009, Robert H. Nelson ("Nelson") notified Greystone Logistics, Inc. (the "Registrant") that he was resigning as the Registrant's Chief Financial Officer effective as of October 24, 2009. Accordingly, Nelson and the Registrant entered into a Mutual Termination of Employment Agreement and Release, dated as of October 24, 2009 (the "Mutual Termination Agreement"), pursuant to which the parties terminated that certain Employment Agreement, dated as of November 1, 2004, between the parties, which contained the terms and conditions of Nelson's employment with the Registrant and which was filed as an exhibit to the Registrant's Form 10-QSB for the period ended November 30, 2004. Pursuant to the Mutual Termination Agreement, the Registrant will pay Nelson his base salary through the effective date of his resignation, and upon such payment, will owe no additional amounts to Nelson. In addition, the Mutual Termination Agreement contains a mutual release with customary terms and conditions.