Document:

Employment Agreement

 Exhibit 10.11 
  
 
EMPLOYMENT AGREEMENT 
 BY AND AMONG 
 HERITAGE FINANCIAL CORPORATION, 
 HERITAGE BANK 
 AND DONALD V. RHODES 
  
 THIS EMPLOYMENT AGREEMENT is made and entered into this 26th day of August, 2004, by
and between HERITAGE FINANCIAL CORPORATION, a Washington corporation (the “Company”), HERITAGE BANK, a Washington banking corporation (the “Bank”) and DONALD V. RHODES (“Executive”). It shall be effective on the
Effective Date as noted in Section 8.5 below. 
  
 RECITALS

  
 1. The Company is the parent corporation of the Bank. The Bank
is a first tier wholly owned subsidiary of the Company. Hereinafter, the Company and the Bank are collectively referred to as the “Employer”. 
  
 2. Executive is the Chairman and Chief Executive Officer of the Company and has developed an intimate and thorough knowledge of Employer’s business
methods and operations. 
  
 3. The retention of Executive’s
services for and on behalf of the Employer is of material importance to the preservation and enhancement of the value of the Employer’s business. 
  
 In consideration of the mutual promises made in this Agreement, the parties agree as follows: 
  
 AGREEMENT 
  
 1. EMPLOYMENT. 
  
 Employer hereby employs Executive and Executive hereby accepts employment with Employer on the terms and conditions set forth in this Agreement.

  
 2. TERM. 
  
 The original term of this Agreement will commence as of the Effective Date
and will continue until December 31, 2006. 
  
 3. DUTIES.

  
 3.1 Executive will be the Chairman and Chief Executive
Officer of Company and occupy positions in such other subsidiaries or affiliates as the respective Boards of Directors of the Company and the Bank (collectively, the “Board”) shall determine. In such capacities, Executive will render those
executive management services and perform those tasks in connection with the affairs of the Company which are normal and customary to the position. Unless otherwise agreed by Executive and the Board, Executive shall preside at all meetings of the
Board and the Executive Committee. Executive will be the person to whom all other officers of the Company, and, as appropriate, subsidiaries or affiliates of Employer, shall report. 
  
 3.2 Executive will perform such other duties as may be appropriate to his office and as may be prescribed from time to time
by the Board. Executive may delegate such duties as he sees fit to any other officer(s) of the Employer. 

 3.3 Executive will devote his best efforts and such necessary time, attention, and effort to the business
and affairs of the Employer and any affiliated companies as such business and affairs now exist or hereafter may be changed or supplemented, in order to properly discharge his responsibilities under this Agreement. Executive, however, will not be
required to adhere to Company vacation policy and is not prohibited from engaging in Company activities at locations other than Company premises. 
  
 3.4 It is anticipated during the term of this Agreement that Executive may, in the interest of appropriate management succession planning for the Company,
relinquish his role as Chief Executive Officer of the Company. In the event such relinquishment of the Chief Executive Officer role occurs during the term of this Agreement and prior to December 31, 2006, Executive will continue to serve the Company
as Chairman of the Board and as a consultant to management at the same compensation as set forth in Section 4.1.1 during the term of the Agreement. 
  
 4. SALARY, BONUS, AND OTHER COMPENSATION. 
  
 4.1 Base Salary. 
  
 4.1.1 During the term of this Agreement, Employer will pay to Executive an annual base salary of $150,000 per year effective beginning on January 1,
2005. Payment of such salary will be made in accordance with Employer’s normal payroll practices applicable to senior executives and will be subject to required withholding for federal income tax and other purposes. 
  
 4.1.2 The Company will guarantee payment of any portion of Executive’s
compensation that may be allocated to the Bank or any other subsidiary or affiliate of the Company. 
  
 4.2 Bonus. During the term of this Agreement, Executive will not be eligible to participate in Employer’s Management Incentive Plan or any successor
compensation plan for senior management of Employer as may be established by the Board or the Employer’s Compensation Committee. Executive will not be eligible for the grant of stock options except to the extent that outside board members of
the Company and its subsidiaries are eligible and receive stock options. 
  
 4.3 Benefits. In addition to the base salary payable to Executive pursuant to this Section 4, Executive will be entitled to the following benefits, which shall not be less than those provided in benefit programs
generally maintained for senior executives of the Employer: 
  
 4.3.1 Participation in health insurance, disability insurance, and other health and welfare benefit programs generally available to senior executives of the Company; 
  
 4.3.2 Participation in retirement plans, including defined contribution and 401(k) Plans and any supplements or additions
to those plans; 
  
 4.3.3 Other employment benefits, as may be
approved from time to time by Employer; 
  
 4.3.4 Memberships in
clubs as deemed appropriate; and 
  
 4.3.5 Reimbursement for
Executive’s reasonable expenses incurred in promoting the business of Employer. Executive shall present from time to time itemized accounts of any such expenses, within limits of Employer policy and the rules and regulations of the Internal
Revenue Service. 

 5. TERMINATION OF AGREEMENT. 
  
 5.1 Early Termination. 
  
 5.1.1 This Agreement may be terminated at any time by either the Company or Executive and shall terminate automatically upon Executive’s death or
Disability (as defined in Section 7). No termination by the Company Board other than termination for Cause (as defined below) shall prejudice the Executive’s right to compensation or other benefits under this Agreement. 
  
 5.1.2 If Executive voluntarily terminates his employment effective before
the end of the term hereof without “Good Reason” as defined in Section 7, Executive will be entitled to such compensation and benefits as he would have the right to receive upon termination for Cause under subsection 5.1.4, and
Executive’s unvested stock options, if any, shall terminate in the manner provided in such subsection. 
  
 5.1.3 If (i) Employer terminates this Agreement without Cause or (ii) Executive terminates this Agreement for Good Reason, and either termination is
effective before the end of the term hereof, Employer shall pay Executive all reimbursable expenses incurred through such termination date and, in addition, a severance benefit in an amount equal to the amount of his then-current base salary which
would otherwise have been paid to Executive during the then-remaining term of the Agreement. In such event, all forfeiture provisions regarding restricted stock awards or vesting requirements regarding options shall lapse or be considered completed
as of the effective date of termination. Notwithstanding the above, in the event Executive’s employment is terminated as a result of a sale or a merger of the Company (a “Transaction”), Executive will be compensated under the terms of
this Agreement through the date of closing of the Transaction without provision for severance thereafter. 
  
 5.1.4 If Employer terminates this Agreement for Cause effective before the end of the term hereof, Employer shall pay Executive upon the effective date
of such termination only such salary earned and expenses reimbursable hereunder incurred through such termination date. Executive shall have no right to receive compensation or other benefits for any period after termination for Cause, and in the
case of termination for Cause, Executive’s unvested stock options, if any, shall terminate immediately. 
  
 5.1.5 In the event of termination of this Agreement by reason of Executive’s death or Disability, Employer shall pay Executive only such salary
earned and expenses reimbursable hereunder incurred through the date of Executive’s death or the effective date of Executive’s Disability, and all forfeiture provisions regarding restricted stock awards or vesting requirements concerning
options shall lapse or be considered completed, as applicable. 
  
 5.1.6 The Board, acting in good faith, shall make the final determination of whether Executive is suffering under any Disability and, for purposes of making such determination, may require Executive to submit himself to a physical
examination by a physician mutually agreed upon by Executive and the Company Board at Employer’s expense. For purposes of this Agreement, the date of such determination shall constitute the effective date of such Disability. 
  
 5.2 Exercise of Stock Options. Executive’s rights to vested but
unexercised stock options will continue for a period of one year after early termination (provided that the terms of any option grant agreement shall not be extended by this provision), except in the case of a termination for Cause pursuant to
Section 5.1.4 or without Good Reason pursuant to Section 5.1.2. 
  
 6. RESTRICTIVE COVENANT. 
  
 6.1 Noncompetition.
Executive agrees that except as otherwise set forth in this Agreement, he will not during the term of this Agreement and for a period of two years after his termination, directly or indirectly, become interested in, as principal shareholder,
director, consultant, or officer, of any financial institution that competes with Employer or its successor or any of its affiliates within the State of Washington, provided that such covenant shall not apply in the event that Executive’s
employment is terminated without Cause or for Good Reason. The provisions restricting competition by Executive may be waived by action of the Board. Executive recognizes and agrees that any breach of this covenant by Executive will cause immediate
and irreparable injury to Employer, and Executive hereby authorizes recourse by Employer to injunction and/or specific performance, as well as to other legal or equitable remedies to which Employer may be entitled. 

 6.2 Noninterference. During the noncompetition period described in Section 6.1, Executive shall not
solicit or attempt to solicit any other employee of Employer or its affiliates to leave the employ of those companies, or in any way interfere with the relationship between Employer and any other employee of Employer. 
  
 6.3 Interpretation. If a court or any other administrative body with
jurisdiction over a dispute related to this Agreement should determine that the restrictive covenant set forth above is unreasonably broad, the parties hereby authorize said court or administrative body to narrow same so as to make it reasonable,
given all relevant circumstances, and to enforce same. The covenants in this paragraph shall survive termination of this Agreement. 
  
 7. DEFINITIONS. 
  
 7.1 Cause. “Cause” shall mean only (i) willful misfeasance or gross negligence in the performance of his duties, (ii) conduct demonstrably and
significantly harmful to the Company (which would include willful violation of any final cease and desist order applicable to Employer or a financial institution subsidiary), or (iii) conviction of a felony. 
  
 7.2 Disability. “Disability” shall mean a medically reimbursable
physical or mental impairment that may be expected to result in death, or to be of long, continued duration, and that renders Executive incapable of performing the duties required under this Agreement. 
  
 7.3 Good Reason. “Good Reason” shall mean termination by Executive
as a result of (i) any material breach of this Agreement by Employer, (ii) any reduction of Executive’s salary or any reduction or elimination of any compensation or benefit plan, which reduction or elimination is not of general application to
substantially all employees of the Bank or such employees of any successor entity or of any entity in control of the Bank, or (iii) the assignment to Executive of any authority or duties substantially inconsistent with Executive’s position.

  
 8. MISCELLANEOUS. 
  
 8.1 This Agreement contains the entire agreement between the parties with
respect to Executive’s employment with Employer and his covenant not to compete with Employer, and is subject to modification or amendment only upon amendment in writing signed by both parties. 
  
 8.2 This Agreement shall bind and inure to the benefit of the heirs, legal
representatives, successors, and assigns of the parties. The provisions of Section 6.1 of this Agreement are intended to confer upon Employer and any of its subsidiaries and affiliates the benefits of Executive’s covenant not to compete.

  
 8.3 If any provision of this Agreement is invalid or otherwise
unenforceable, all other provisions shall remain unaffected and shall be enforceable to the fullest extent permitted by law. 
  
 8.4 This Agreement is made with reference to and is intended to be construed in accordance with the laws of the State of Washington. Venue for any action
arising out of or concerning this Agreement shall lie in Thurston County, Washington. In the event of a dispute under this Agreement not involving injunctive relief, the dispute shall be arbitrated pursuant to the Superior Court Mandatory
Arbitration (“MAR”) adopted by the Washington State Supreme Court, irrespective of the amount in controversy. This Agreement shall be deemed as stipulation to that effect pursuant to MAR 1.2 and 8.1. The arbitrator, in his or her
discretion, may award attorney’s fees to the prevailing party or parties. 
  
 8.5 The Effective Date of this Agreement is January 1, 2005. 

 8.6 Any notice required to be given under this Agreement to either party shall be given by personal
service or by depositing a copy thereof in the United States registered or certified mail, postage prepaid, addressed to the following address, or such other address as addressee shall designate in writing: 
  

			
	Employer:	  	Heritage Bank
	 	  	201 5th Avenue S. W.
	 	  	Olympia, WA 98501
	 	  	Attn: Board of Directors
		
	Executive:	  	Donald V. Rhodes
	 	  	201 5th Avenue S.W.
	 	  	Olympia, WA 98501

  
 IN WITNESS WHEREOF, the parties have
executed this Agreement effective on the date first above written. 
  

							
	 HERITAGE FINANCIAL CORPORATION
	 	 HERITAGE BANK

				
	By:	 	 /s/ Edward D. Cameron

	 	By:	 	 /s/ Edward D. Cameron

	Its:	 	 Senior Vice President, Treasurer
and Secretary
	 	Its:	 	 Senior Vice President, Treasurer
and Secretary

  

	
	 EXECUTIVE:

	
	 /s/ Donald V. Rhodes

	 Donald V. RhodesSeparation and Consulting Agreement and Release of Claims

 EXHIBIT 10.1 
  
 CONFIDENTIAL 
 SEPARATION AND CONSULTING AGREEMENT AND RELEASE OF CLAIMS 
  
 THIS CONFIDENTIAL SEPARATION AGREEMENT AND RELEASE OF CLAIMS (“Agreement”), is made between KEITH RICKARD (“Rickard”), and BAKBONE SOFTWARE INCORPORATED and all of its subsidiaries and affiliated
companies (collectively hereafter “BakBone” or “the Company”) and shall become effective immediately upon the date it is signed by Rickard) (the “Effective Date”). 
  
 RECITALS 
  
 WHEREAS, Rickard has been employed by BakBone as President and Chief Executive Officer of BakBone Software Incorporated, and
the parties hereto desire to end that relationship, and to settle, fully, finally and amicably, all claims against each other, including, but not limited to, any claims related to the employment of Rickard and the termination of that employment.

  
 NOW, THEREFORE, in order to provide said benefits and in
consideration of the mutual promises, covenants and representations set forth below and other good and valuable consideration, the parties agree as follows: 
  
 1. Relinquishment of Positions/Employment 
  
 Pursuant to this Agreement, Rickard agrees to resign, effective not later than 6:00 p.m., PST, October 31, 2004, his positions as President and CEO, and
as Director of the Company and any other position he holds as an officer, employee or director from any subsidiary or affiliated company (“Resignation Date”). 
  
 2. Payment of Good and Valuable Consideration 
  
 a. Within 72 hours of his Resignation Date, Rickard shall be paid his final paycheck. In lieu of any unpaid
vacation, bonuses or other payments that may be due or claimed by Rickard, he shall also be paid a lump sum amount of $109,227.00, net of $500.00 (in consideration of the transfer to Rickard of his existing personal computer, Blackberry and cellular
telephone number), for a final net payment of $108,727.00. Payments under this paragraph shall be less applicable taxes. 
  
 b. The Company will also pay on behalf of Rickard the cost of COBRA payments for a period of up to twelve (12) months after his
Resignation Date. 
  
 c. Commencing on November
1, 2004, and ending on October 31, 2005 (“Consulting Term”), Rickard shall become a consultant to BakBone in order to provide transition, and project services to BakBone’s CEO. Such work shall not exceed ten (10) hours in a calendar
month and shall be performed as requested. Rickard’s services as a consultant shall be paid $20,000.00 monthly for the twelve-month period of the Consulting Term (for a total consulting sum of $240,000.00). Except as to the monthly payment, no
other payment or benefits shall be due or payable to Rickard for his services as a consultant. 
  

 d. Nothing herein shall prevent Rickard from exercising any vested options pursuant to
the Company’s applicable Stock Option Plans. The Company also agrees to grant Rickard one (1) year of accelerated vesting of unvested options. Further, as a resigning Director under the Plan, Rickard shall have twelve (12) months from his
Resignation Date to exercise all vested options. For clarity, if in accordance with the existing stock option agreements between the Company and Rickard, there occurs an event which would result in the accelerated vesting of unvested options during
the above twelve (12) month period, Rickard shall be entitled to avail himself of such accelerated vesting. 
  
 3. Indemnification Against Claims 
  
 BakBone agrees to indemnify and hold Rickard harmless from any liability, claims, demands, costs, expenses and attorneys’ fees incurred by him as a
result of any actions by him in the course of his employment, or as a director of the Company to the extent other directors would be so indemnified pursuant to applicable law. BakBone further agrees to indemnify and hold Rickard harmless from any
liability, claims, demands, costs, expenses, and attorneys’ fees incurred by him as a result of any actions by him, specifically in connection with providing transition assistance to BakBone. 
  
 4. Non-Disclosure of Trade Secrets and Confidential Information

  
 Rickard understands and agrees that in the course of
employment with BakBone he has acquired confidential information and trade secrets concerning the operations of BakBone and its future plans and methods of doing business, which information Rickard understands and agrees would be damaging to BakBone
if disclosed to a competitor or made available to any other person or corporations. Rickard understands and agrees that such information either has been developed by him or divulged to him in confidence, and he understands and agrees that he will
keep all such information secret and confidential. Furthermore, Rickard agrees that on or before the Effective Date of this Agreement, he will turn over to BakBone all Company confidential files, records, and other documents. In addition, Rickard
will return all property in his possession owned by BakBone. 
  
 5. Non-Solicitation 
  
 Rickard further agrees
that for a period expiring twenty four (24) months after the Resignation Date, he will not solicit or participate or assist in any way in the solicitation of any person in management, professional or technical positions at BakBone for employment by
any other company. However, Rickard will not violate this provision if said employee pursues a position with Rickard’s future employer without any encouragement or involvement direct or indirect of Rickard. 
  
 6. No Other Claims 
  
 Rickard represents and warrants that he has not filed against BakBone or any
of its representatives, any claim, complaint, charge or suit, with any federal, state or other agency, court, board, office or other forum or entity, including without limitation, any application for workers compensation benefits. 
  

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 7. General Release 
  
 a. As a material inducement to BakBone to enter into this Agreement, Rickard, on behalf of himself and his
heirs, executors, administrators, successors and assigns, does hereby irrevocably and unconditionally release, acquit and forever discharge BakBone, and its divisions, subsidiaries, affiliates and all owners, stockholders, predecessors, successors,
assigns, agents, directors, officers, employees, representatives, and attorneys, acting by, through, under or in concert with BakBone or any parent, subsidiary or related entity, from any and all charges, complaints, grievances, claims, liabilities,
obligations, promises, agreements, controversies, damages, actions, causes of action, suits, rights, demands, costs, losses, debts and expenses (including attorneys’ fees and costs actually incurred), of any nature whatsoever, known or unknown,
suspected or unsuspected, joint or several, which Rickard has had or may hereafter claim to have had, against BakBone by reason of any matter, act, omission, cause or event whatever from the beginning of time to the Resignation Date
(“Claims”); other than those obligations set forth in this Agreement. 
  
 This release and waiver of Claims specifically includes, but without limiting the foregoing general terms, the following: (1) all Claims arising from or relating in any way to any act or failure to act by any employee
of BakBone, (2) all Claims arising from or relating in any way to the employment relationship of Rickard with BakBone and/or the termination thereof, including any claims which have been asserted or could have been asserted against BakBone, together
with (3) any and all Claims which might have been asserted by Rickard in any suit, claim, or charge, for or on account of any matter or things whatsoever that has occurred up to and including the date of this Agreement, under any and all laws,
statutes, orders, regulations, or any other claim of right(s), including without limitation, Title VII of the Civil Rights Act of 1964, as amended, the California Labor Code, and the California Fair Employment and Housing Act, or any Claim in
contract or tort. 
  
 8. Release of Unknown or Unsuspected
Claims 
  
 For the purpose of implementing a full and complete
release and discharge of the parties hereto, Rickard expressly acknowledges that this Agreement is intended to include in its effect, without limitation, all Claims which the parties have against one another but do not know or suspect to exist in
their favor at the time of execution hereof, which if known or suspected by them would materially affect their decision to execute this release; that this Agreement contemplates the extinguishment of any such Claim or Claims, and that all rights
under Section 1542 of the California Civil Code are hereby expressly waived. Section 1542 of the Civil Code provides: 
  
 “A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release,
which if known by him must have materially affected his settlement with the debtor.” 
  
 Rickard represents that he has read and understood the provisions of California Civil Code Section 1542. 
  

 3 

 9. Knowing Waiver of Age Claim. 
  
 Among the claims listed above, Rickard freely and knowingly waives any and all claims against the Company for age
discrimination under the Age Discrimination in Employment Act of 1967, as amended 
  
 10. Conditions of Effectiveness of this Agreement. 
  
 a. Rickard acknowledges and agrees that Rickard has been offered a period of up to twenty-one days to review this agreement and release
with any attorneys, financial advisors or immediate family members, that Rickard has been advised by the Company to do so, and to the extent Rickard desires, has done so, that Rickard has used the full twenty-one day period for such review or has
voluntarily chosen to execute this agreement and release before the end thereof, that Rickard has read and understood this release and that Rickard has knowingly and voluntarily agreed to all the terms of this agreement and release and that Rickard
has signed this release voluntarily without any coercion. 
  
 b. [Intentionally Omitted] 
  
 11.
Third Party Discussions. 
  
 Rickard agrees that upon
execution of this Agreement and forever thereafter, Rickard will not say anything disparaging or negative about the Company, its directors or officers to third parties, and past or present, employees. The Company also agrees that upon execution of
this Agreement and forever thereafter, the Company will not say anything disparaging or negative about Rickard. If either party is asked why the employment relationship ended, the parties agree to respond that the relationship ended upon mutually
agreeable terms and that as a result of confidentiality obligations, nothing further can be said about the matter. 
  
 12. Confidentiality of Settlement Agreement 
  
 Rickard represents and agrees that he has not disclosed the terms of the agreement and he will keep the terms, amounts and all other specific facts of
this Agreement completely confidential and that he will not disclose any information concerning this Agreement to any person or entity, other than that which is legally required and his immediate family and professional representatives or to any
prospective employer to the extent necessary to inform such employer of Rickard’s obligation pursuant to this Agreement; provided that disclosure to his immediate family or professional representatives is conditioned on the fact that they agree
to keep said information confidential and not disclose it to others. 
  

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 13. Future Litigation or Anticipated Litigation 
  
 Rickard agrees that he shall make himself reasonably available to the Company
and its counsel to assist in, cooperate with or otherwise testify in connection with any litigation where his participation or assistance is needed or required by law. 
  
 14. Liquidated Damages and Other Relief 
  
 Rickard agrees that BakBone would be irreparably harmed by any violation of paragraphs 4, 5,11,12 and 13 of this Agreement
and that, therefore, BakBone shall be entitled to liquidated damages of Fifty Thousand Dollars ($50,000.00) and to an injunction prohibiting him from any violation of paragraphs 4, 5, 11,12 and 13 of this Agreement. 
  
 15. Press Release 
  
 On the Resignation Date, BakBone shall issue a press release to the public
concerning Rickard’s resignation in the form attached hereto. Neither party will issue any other press release concerning the resignation. 
  
 16. Binding Agreement 
  
 This Agreement shall be binding upon Rickard and BakBone and their respective heirs, administrators, representatives, executors, successors and assigns
and shall inure to the benefit of the parties hereto and their representatives, and each of them, and to their heirs, administrators, representatives, executors, successors and assigns. 
  
 17. Attorney’s Fees 
  
 Each party hereto will bear its own costs and attorneys’ fees incurred in achieving the settlement and release of this matter. If any party defaults
under the terms of this Agreement, and the other party employs an attorney to enforce or interpret the terms of this Agreement, or to obtain a declaration of rights under this Agreement, whether or not legal proceedings are commenced, then such
other party shall be entitled to recover from the defaulting party all attorneys’ fees, costs and expenses incurred. If a party commences an action against the other to enforce or interpret the terms of this Agreement, or to obtain a
declaration of rights under this Agreement, the prevailing party shall be entitled to all attorneys’ fees, costs and expenses incurred in such action or any appeal or enforcement of such action. 
  
 18. Non-Reliance 
  
 Other than as expressly set forth in this Agreement, Rickard and BakBone
represent and acknowledge that in executing this Agreement they did not rely upon and they have not relied upon any representation nor statement made by any of the parties hereto or by any of their agents, representatives or attorneys with regard to
the subject matter, basis or effect of this Agreement or otherwise. 
  

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 19. Agreement Obligates, Extends and Inures 
  
 The provisions of this Agreement shall be deemed to obligate, extend and
inure to the benefit of the legal successors, assigns, transferees, grantees, heirs, shareholders, officers and directors of each signatory party hereto, and to those who may assume any or all of the above-described capacities subsequent to the
execution and Resignation Date of this Agreement. 
  
 20.
Non-Admission of Liability 
  
 This Agreement shall not in
any way be construed as an admission by BakBone that it has acted in any manner in violation of the common law or in violation of any federal, state or local statute or regulation. 
  
 21. Method of Execution 
  
 This Agreement may be executed in counterparts and each counterpart shall be deemed a duplicate original. 
  
 22. Applicable Law 
  
 This Agreement is deemed to have been made and entered into in the State of
California and shall in all respects be interpreted, enforced and governed under the laws of said State. The language of all part is this Agreement shall in all causes be construed as a whole, according to its fair meaning, and not strictly for or
against any of the parties. 
  
 23. Severability

  
 The provisions of this Agreement are severable, and should any
provision of this Agreement be declared or be determined by any arbitrator or court to be illegal or invalid, any such provision shall be stricken, and the validity of the remaining parts, terms or provisions shall not be affected. 
  
 24. Entire Agreement 
  
 This Agreement sets forth the entire agreement between the parties and fully
supersedes any and all prior agreements or understandings between the parties pertaining to the same subject matter, further, this Agreement may not be changed except by explicit written agreement by the parties hereto. 
  
 RICKARD states that he has carefully read the foregoing Agreement, has had
the opportunity to consult with an attorney, knows and understands its contents, and voluntarily executes this Agreement. 
  

					
			
	 Date: October 31, 2004
	 	 	 	 /s/ Keith Rickard

	  	 	 	 	 Keith Rickard

  

 6 

					
			
	 Date: October 31, 2004
	 	 	 	 /s/ Jeff Lawson

	 	 	 	 	 Jeff Lawson on behalf of
 BakBone Software Incorporated

  

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