Document:

ASSET
PURCHASE AGREEMENT

    

    dated as
of August 10, 2009

    

    between

    

    DAEWOO
SHIPBUILDING & MARINE ENGINEERING CO., LTD.

    

    and

    

    DEWIND
LTD.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ASSET
PURCHASE AGREEMENT

     

    ASSET
PURCHASE AGREEMENT, dated as of August 10, 2009 (the “Agreement”), between Daewoo
Shipbuilding & Marine Engineering Co., Ltd., a Korean corporation (“Buyer”) and DeWind Ltd., a UK
private limited company (“Seller”).

     

    WHEREAS,
Seller owns certain assets relating to the manufacture, sale or use of the D6,
D8 and D8.2 wind turbines (each, a “Turbine” and collectively, the
“Turbines”);
and

     

    WHEREAS,
the parties desire that Seller sell, assign, transfer, convey and deliver to
Buyer, and that Buyer purchase and acquire from Seller, all of the right, title
and interest of Seller in and to the Turbine Assets (as hereinafter
defined).

     

    NOW,
THEREFORE, in consideration of the foregoing premises and the respective
representations and warranties, covenants and agreements contained herein, the
parties hereto agree as follows:

     

    ARTICLE
XII

     

    PURCHASE
AND SALE

     

    12.1        Purchase and Sale of the
Turbine Assets. Upon the terms and subject to the conditions of this
Agreement, at the Closing (as defined in Section 2.1 herein), Seller shall sell,
assign, transfer, convey and deliver to Buyer, and Buyer shall purchase, acquire
and accept from Seller, free and clear of liens (other than Permitted Liens (as
defined below)), the entire right, title and interest of Seller in, to and under
(a) all of the assets, properties and rights of every kind and description
listed in Schedule 1.1 and (b) that certain lease agreement with DEWI-OCC
Offshore and Certification Centre GmbH dated June 29, 2006 for the Turbine
located in Cuxhaven, Germany (the “Lease”) (all of the foregoing
assets collectively, “Turbine
Assets”).

     

    12.2        No Acquisition of Other
Seller Assets. Seller is not selling, and Buyer is not purchasing, any
assets of Seller other than the Turbine Assets pursuant to this
Agreement.  All other Seller assets shall be retained by
Seller.

     

    12.3        Assumed Liabilities.
Upon the terms and subject to the conditions of this Agreement, Buyer shall
assume effective as of the Closing, and from and after the Closing Buyer shall
pay, discharge or perform when due, as appropriate, only the contractual
obligations that arise after the Closing under the Lease (the “Assumed Liabilities”), provided that
Buyer will have no obligation for liabilities under the Lease resulting from
Seller’s breach of the Lease, which liabilities shall remain the obligation of
Seller.  Buyer will not assume any liabilities or obligations of
Seller other than the Assumed Liabilities.

     

    12.4        Purchase
Price.  The consideration to be paid by Buyer to Seller for the
Turbine Assets shall be $3,000,000 (the “Purchase
Price”).  This Purchase Price includes all payments of the
European Union Value Added Tax or any other tax (each a “Tax”) that may apply to the
sale of the Turbine Asset.  Buyer and Seller agree to deduct from the
Purchase Price the amount required to pay for all such applicable
Taxes.  Buyer shall pay the Purchase Price in immediately available
funds on the Closing Date (defined below).

     

    
      
         

      

      
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    12.5        Intellectual Property
License.

     

    (a)           In
consideration of Buyer’s purchase of the Turbine Assets under this Agreement,
Seller shall terminate, simultaneous with the Closing, all its license rights
granted under that certain Asset Purchase Agreement between Seller and DeWind,
Inc., dated September 30, 2008 (the “Prior
License”).  Seller shall take all actions on or prior to the
Closing Date to terminate its rights under the Prior License.

     

    (b)           In
consideration of Seller’s sale of the Turbine Assets to Buyer, Buyer grants
Seller a perpetual (subject to Section 1.5(c)), non-exclusive, royalty free
license (the “Turbine
License”) to use all of the intellectual property previously granted
under the Prior License relating to the D8 and D6 DeWind wind turbines (the
“Licensed IP”) but only
to the extent that the use of such Licensed IP is necessary to carry on Seller’s
existing business with Beijing Beizhong Steam Turbine Generator Co., Ltd.
(“BBS”) and Shanghai
Electric Group Corp Ltd. (“SEG”).  Seller does
not have any rights to use the Turbine License other than as specified in the
preceding sentence.  Seller may not sublicense the Turbine License to
any party other than BBS or SEG, and only to BBS and/or SEG to the extent that
such sublicense is necessary to carry on Seller’s existing business arrangements
with BBS or SEG (collectively, the “Business
Arrangements”).

     

    (c)           Seller
covenants not to extend or renew the Business Arrangements.  If (i)
Seller breaches this Section 1.5(c), or (ii) the Business Arrangements are
terminated or are otherwise no longer effective, then this Turbine License shall
automatically terminate.

     

    12.6        Allocation.  As
soon as reasonably practicable following the Closing, Seller shall deliver to
Buyer, after consultation with, and approval of, Buyer, an allocation statement
setting forth Seller’s allocation of the Purchase Price for tax purposes
pursuant to Section 1060 of the Internal Revenue Code of 1986 (the “Code”) and any other
applicable tax Laws (the “Allocation
Statement”).  Except as otherwise required by Law, Buyer and
Seller shall file all tax returns in a manner that is consistent with the
Allocation Statement and refrain from taking any action inconsistent
therewith.

     

    12.7        Permitted
Liens.  As used herein, “Permitted Liens” means (a)
liens for current real or personal property taxes not yet due and payable or
which are being contested in good faith by Seller or its affiliates, in either
case, with respect to which the Seller maintains adequate reserves,
(b) workers’, carriers’ and mechanics’ or other like liens incurred in the
ordinary course of Seller’s business with respect to which payment is not due
and that do not impair the conduct of Seller’s business or the present or
proposed use of the affected property, (c) any deposits or pledges to secure the
payment of worker’s compensation, unemployment insurance or other social
security benefits or obligations, or public or statutory obligations of a like
general nature incurred in the ordinary course of business, (d) any statutory
liens for utility assessments or other charges or assessments, in each case,
arising in the ordinary course of business with respect to a liability that is
not yet due or delinquent or which is being contested in good faith by Seller or
its affiliates, (e) any liens securing bids, tenders, contracts (other than
contracts for the payment of money), leases, statutory obligations, surety or
appeal bonds, bid or performance bonds or other obligations of a like general
nature incurred in the ordinary course of business, including the bond (the
“Lease Bond”) and other
liens or charges (the “Lease
Liens”) incurred to secure performance by Seller under the Lease, (f) any
liens arising out of judgments or awards so long as an appeal or proceeding for
review is being prosecuted in good faith and for the payment of which adequate
reserves, bonds or other security have been provided or are fully covered by
insurance, (g) any security interest, lien or right in favor of any vendor of
tangible personal property (including any tangible personal property financed
with purchase money and any capital leases), (h) imperfections or irregularities
of title and other liens that would not, individually or in the aggregate,
materially detract from the value of the assets to which they attach, (i)
zoning, planning, and other similar limitations and restrictions, all rights of
any Governmental Entity (as defined below) to regulate a property, (i) any lien
set forth in any franchise or governing ordinance under which any portion of
Seller’s business is conducted, (j) all rights of condemnation, eminent domain
or other similar rights of any person, (k) any lien to be released on or prior
to, or as a result of, Closing, (l) any license agreement governing use of the
Seller’s current accounting software (the “Accounting Software”), and (m)
any other lien which does not materially interfere with Seller’s use of the
Turbine Assets.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    12.8        Termination.  This
Agreement shall immediately and automatically, without any further action from
any other person, terminate upon the termination of that certain Asset Purchase
Agreement between Buyer, DeWind, Inc. and Composite Technology Corporation,
dated August 10, 2009 (the “DeWind, Inc. APA”) in
accordance with its terms.  In the event of termination of this
Agreement as provided in this Section 1.8, this Agreement shall immediately
become null and void and there shall be no further obligations on the part of
Seller or Buyer; provided that such
termination will not relieve a party in breach of this Agreement from any
liability to the other party for such breach.

     

    ARTICLE
XIII

     

    CLOSING

     

    13.1        Closing
Date.  The closing of the transactions contemplated by this
Agreement (the “Closing”) shall take place at
the offices of Milbank, Tweed, Hadley & McCloy LLP, 601 S. Figueroa St., Los
Angeles, CA 90017, simultaneously with, or as soon as possible after, the
closing of the transactions contemplated by the DeWind, Inc. APA (unless another
time and/or place is agreed to in writing by the parties). The date on which the
Closing occurs is referred to in this Agreement as the “Closing Date.”

     

    13.2        Ancillary
Agreements.  On or prior to the Closing Date (i) the Seller
shall deliver, in a form reasonably satisfactory to the Buyer, evidence of the
termination by the Seller of the Prior License and acceptance of such
termination by DeWind, Inc. and (ii) Seller and Buyer shall execute or deliver,
and file as necessary, such other documents as are (a) necessary to complete the
transactions contemplated herein, or (b) reasonably requested by either party,
including (x) a Bill of Sale, and such other good and sufficient instruments of
transfer as Buyer reasonably deems necessary and appropriate to vest in Buyer
all right, title and interest in, to and under the Turbine Assets and (y) such
other good and sufficient instruments as Seller reasonably deems necessary and
appropriate to relieve Seller of its obligations with respect to the Assumed
Liabilities (the “Ancillary
Agreements”).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    13.3        Delivery of Turbine
Assets.  Title to the Turbine Assets passes to Buyer as of the
Closing.  All information capable of electronic transmission will be
transmitted to Buyer in such manner.  All other assets and information
will be delivered immediately at Closing by Seller to Buyer at the locations
where such Turbine Assets reside as of the date hereof; provided that the
molds held at the premises of SINOI GmbH shall remain at such premises, and
Seller shall notify SINOI GmbH of the sale of such molds to
Buyer.  Without limiting the foregoing, Buyer shall allow Seller the
use of the Accounting Software and the server on which such software is
installed for 90 days after the Closing Date.

     

    ARTICLE
XIV

     

    REPRESENTATIONS
AND WARRANTIES OF SELLER

     

    Seller
represents and warrants to Buyer as of the date hereof and as of the Closing
Date that the statements contained in this Article III are true and
correct.

     

    14.1        Organization and Good
Standing.  Seller is duly formed, validly existing and in good
standing under the laws of the jurisdiction in which it is formed and has full
corporate power and authority to own, lease and operate the Turbine
Assets.  Seller is duly qualified and licensed as a foreign
corporation to do business, and is in good standing in each jurisdiction where
the ownership or operation of the Turbine Assets makes such qualification
necessary.  Seller is not in default under its charter
documents.

     

    14.2        Authority and
Enforceability.  Seller has the requisite power and authority
to enter into this Agreement and the Ancillary Agreements and to consummate the
transactions contemplated hereby.  The execution and delivery of this
Agreement and each of the Ancillary Agreements and the consummation of the
transactions contemplated hereby have been duly authorized by all necessary
corporate action on the part of Seller.  Seller has duly executed and
delivered this Agreement.  Assuming due authorization, execution and
delivery by Buyer, this Agreement constitutes the valid and binding obligation
of Seller, enforceable against it in accordance with its terms, except as such
enforceability may be limited by (i) bankruptcy, insolvency, reorganization,
moratorium or other similar Laws affecting or relating to creditors’ rights
generally and (ii) the availability of injunctive relief and other equitable
remedies.  “Law” means any statute, law
(including common law), constitution, treaty, ordinance, code, order, decree,
judgment, rule, regulation and any other binding requirement or determination of
any government, official or other regulatory, administrative or judicial
authority (each a “Governmental
Entity”).

     

    14.3        No Conflicts;
Consents.  The execution and delivery of this Agreement by
Seller, the execution and delivery of each Ancillary Agreement by Seller, the
performance by Seller of its obligations hereunder and thereunder and the
consummation by Seller of the transactions contemplated hereby and thereby (in
each case, with or without the giving of notice or lapse of time, or both), will
not, directly or indirectly, (i) violate the provisions of any of the charter
documents of Seller, (ii) violate or conflict with any Law applicable to Seller,
or (iii) give any Governmental Entity or other person the right to exercise any
remedy or obtain any relief under any such Law that will have the effect of
revoking or otherwise modifying any rights of Buyer hereunder.  No
authorization or order of, registration, declaration or filing with, or notice
to, any Governmental Entity or other person, is required by or with respect to
Seller in connection with the execution and delivery of this Agreement and the
Ancillary Agreements and the consummation of the transactions contemplated
hereby and thereby, in each case, except for such authorizations, orders,
registrations, declarations, filings and notices which in the aggregate are not
material and except for any authorizations or notices that may be required in
connection with the Accounting Software.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    14.4        Title to Turbine
Assets.  Seller owns all the Turbine Assets and has good title
to all Turbine Assets.  All of the Turbine Assets are free and clear
of any liens (other than Permitted Liens).  There are no pending or,
to Seller’s knowledge, threatened claims, proceedings or litigation against
Seller regarding the Turbine Assets.  To Seller’s knowledge, none of
the Turbine Assets are subject to any Permitted Liens, except for the Lease
Bond, the Lease Liens, any license agreement governing use of the Accounting
Software, and those other encumbrances set forth in Schedule 3.4.

     

    14.5        Condition of Turbine
Assets.  All Turbine Assets that are tangible property are
structurally sound, are in the operating condition of prototype equipment
(subject to normal wear and tear), are usable as prototype equipment and conform
to all Laws and authorizations relating to their construction, use and operation
as prototype equipment.  There are no facts or conditions affecting
such Turbine Assets that could interfere in any material respect with the use or
operation of the Turbine Assets as prototype equipment as used or operated as
for the 12 months preceding the date of this Agreement.

     

    14.6        Lease.  Seller
has complied with and is in compliance with, and to Seller’s knowledge, all
other parties thereto have complied with and are in compliance with, the
provisions of the Lease in all material respects.

     

    14.7        Employees.  Seller
has no employees.

     

    14.8        Completeness of
Disclosure. No representation or warranty by Seller in this Agreement,
and no statement made by Seller in the Ancillary Agreements or any certificate
or other document furnished or to be furnished to Buyer pursuant hereto, when
taken together, contains or will at the Closing contain any untrue statement of
a material fact or omits or will omit to state a material fact required to be
stated herein or therein or necessary to make any statement herein or therein
not misleading.  Except as specifically set forth in this Agreement,
there are no facts or circumstances of which Seller is aware that have had or
could be expected to have, individually or in the aggregate, a material adverse
effect on the Turbine Assets.

     

    ARTICLE
XV

     

    REPRESENTATIONS
AND WARRANTIES OF BUYER

     

    Buyer
represents and warrants to Seller as of the date hereof and as of the Closing
Date that the statements contained in this Article IV are true and
correct.

     

    15.1        Organization and Good
Standing.  Buyer is a corporation duly organized, validly
existing and in good standing under the Laws of the jurisdiction of its
incorporation and has the full corporate power to own, lease and operate its
properties and to carry on its business as now being conducted.  Buyer
is not in default under its charter documents.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    15.2        Authority and
Enforceability.  Buyer has the requisite corporate power and
authority to enter into this Agreement and the Ancillary Agreements to which it
is a party and to consummate the transactions contemplated hereby and
thereby.  The execution and delivery of this Agreement and the
Ancillary Agreements to which Buyer is a party and the consummation of the
transactions contemplated hereby and thereby have been duly authorized by all
necessary corporate action on the part of Buyer.  This Agreement has
been, and the Ancillary Agreements to which Buyer is a party will be, duly
executed and delivered by Buyer and, assuming due authorization, execution and
delivery by Seller, constitutes the valid and binding obligations of Buyer,
enforceable against it in accordance with their respective terms, except as such
enforceability may be limited by (a) bankruptcy, insolvency, reorganization,
moratorium or other similar Laws affecting or relating to creditors’ rights
generally, and (b) the availability of injunctive relief and other equitable
remedies.

     

    15.3        No Conflicts;
Consents.  The execution and delivery of this Agreement by
Buyer do not, and the execution and delivery of the Ancillary Agreements to
which Buyer is a party and the consummation of the transactions contemplated
hereby and thereby (in each case, with or without the giving of notice or lapse
of time, or both) will not, directly or indirectly, (i) violate the provisions
of any of the charter documents of Buyer, (ii) violate any Law of any
Governmental Entity applicable to Buyer on the date hereof, or (iii) give any
Governmental Entity or other person the right to exercise any remedy or obtain
any relief under any such Law that will have the effect of revoking or otherwise
modifying any rights of Seller hereunder.  No authorization or order
of, registration, declaration or filing with, or notice to, any Governmental
Entity or other person, is required by or with respect to Buyer in connection
with the execution and delivery of this Agreement and the Ancillary Agreements
to which it is a party and the consummation of the transactions contemplated
hereby and thereby, in each case, except for such authorizations, orders,
registrations, declarations, filings and notices which in the aggregate are not
material.

     

    15.4        Availability of
Funds.  Buyer has cash available or has existing borrowing
facilities which together are sufficient to enable it to consummate the
transactions contemplated by this Agreement.

     

    15.5        Completeness of
Disclosure. No representation or warranty by Buyer in this Agreement, and
no statement made by Buyer in the Ancillary Agreements or any certificate or
other document furnished or to be furnished to Seller pursuant hereto, when
taken together, contains or will at the Closing contain any untrue statement of
a material fact or omits or will omit to state a material fact required to be
stated herein or therein or necessary to make any statement herein or therein
not misleading.

     

    ARTICLE
XVI

     

    COVENANTS
OF SELLER

     

    16.1        Confidentiality. From
and after the Closing Date, Seller will, and will cause its affiliates to, hold,
and will use its commercially reasonable efforts to cause their respective
representatives to hold, in confidence any and all information, whether written
or oral, concerning the Turbine Assets, except to the extent that Seller can
show that such information (a) is in the public domain through no fault of
Seller or any of its affiliates or their respective representatives or (b) is
lawfully acquired by Seller or any of its affiliates after the Closing Date from
sources that are not prohibited from disclosing such information by a legal,
contractual or fiduciary obligation.  If Seller or any of its
affiliates or representatives is compelled to disclose any such information by
judicial or administrative process or by other requirements of Law, Seller shall
promptly notify Buyer in writing and shall disclose only that portion of such
information that Seller is advised by its counsel is legally required to be
disclosed; provided that Seller shall
exercise its commercially reasonable efforts to obtain an appropriate protective
order or other reasonable assurance that confidential treatment will be accorded
such information.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ARTICLE
XVII

     

    COVENANTS
OF BUYER AND SELLER

     

    17.1        Further
Assurances.  Buyer and Seller shall execute such documents and
other instruments and take such further actions as may be reasonably required or
desirable to carry out the provisions of this Agreement and the Ancillary
Agreements and to consummate the transactions contemplated hereby and
thereby.  Upon the terms and subject to the conditions hereof, Buyer
and Seller shall each use its respective commercially reasonable efforts to (a)
take or cause to be taken all actions and to do or cause to be done all other
things necessary, proper or advisable to consummate and make effective as
promptly as practicable the transactions contemplated by this Agreement and the
Ancillary Agreements; and (b) obtain in a timely manner all consents and
authorizations and effect all necessary registrations and filings (except in
connection with the Accounting Software).  From time to time after the
Closing, at Buyer’s request, Seller shall execute, acknowledge and deliver to
Buyer such other instruments of conveyance and transfer and will take such other
actions and execute and deliver such other documents, certifications and further
assurances as Buyer may reasonably require to vest more effectively in Buyer, or
to put Buyer more fully in possession of, any of the Turbine
Assets.

     

    17.2        Cuxhaven
Bond.  Prior to and after the Closing, Buyer and Seller shall
cooperate, and each shall use its commercially reasonable efforts, to effect as
of the Closing Date the full and unconditional release of Seller from the Lease
Bond and the Lease Liens, including the return to Seller of the amount of the
Lease Bond; provided that Buyer’s
compliance with this Section 6.2 shall not require Buyer to provide security to
any person on terms that are, on the whole, materially less favorable to Buyer
than the terms of the Lease Bond and the Lease Liens are, on the whole, to
Seller.

     

    17.3        Operational
Services.  After the Closing and through December 31, 2010,
Buyer shall make available to Seller the personnel and other resources
reasonably requested by Buyer to support Seller’s general operations, including
providing operational services for (and monitoring of) Seller’s existing Turbine
fleet and existing orders, supporting commissioning of Turbines, and
administering the Business Relationships.  In exchange for such
services, Seller shall pay to Buyer reasonable fees to be negotiated by Buyer
and Seller in good faith.

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      ARTICLE
XVIII

       

      CONDITIONS
TO CLOSING

    

     

    18.1        Conditions to Obligation of
Buyer.  The obligation of Buyer to consummate the transactions
contemplated by this Agreement is subject to the satisfaction (or waiver by
Buyer in its sole discretion) of the following further conditions:

     

    (a)           The
representations and warranties of Seller set forth in this Agreement (i) that are qualified
as to materiality shall be true and correct in all respects and (ii) that are
not so qualified shall be true and correct in all material respects, in each
case as of the date hereof and as of the Closing Date as if made at and as of
the Closing Date, except to the extent that such representations and warranties
refer specifically to an earlier date, in which case such representations and
warranties shall have been true and correct as of such earlier
date.

     

    (b)           Seller
shall have performed or complied in all material respects
with all obligations and covenants required by this Agreement to be performed or
complied with by Seller at or prior to the Closing.

     

    (c)           Seller
shall execute and deliver to Buyer a certificate of an authorized officer of
Seller, dated as of the Closing Date, stating that the conditions specified in
Sections 7.1(a) and (b) of this Agreement have been satisfied.

     

    (d)           On
the Closing Date, there shall be no Laws, permits or orders that operate to
restrain, enjoin or otherwise prevent or make illegal the consummation of the
transactions contemplated by this Agreement.  No action or proceeding
initiated by any Governmental Entity seeking an order prohibiting the
consummation of the transactions contemplated by this shall be
pending.

     

    (e)           Buyer
and DeWind Inc. shall have consummated the transactions contemplated in the
DeWind, Inc. APA.

     

    (f)           The
Seller shall have obtained the consent of the lessor under the Lease for the
Lease to be assigned to Buyer.

     

    18.2        Conditions to Obligation of
Seller.  The obligation of Seller to consummate the
transactions contemplated by this Agreement is subject to the satisfaction (or
waiver by Seller in its sole discretion) of the following further
conditions:

     

    (a)           The
representations and warranties of Buyer set forth in this Agreement (i) that are qualified
as to materiality shall be true and correct in all respects and (ii) that are
not so qualified shall be true and correct in all material respects, in each
case as of the date hereof and as of the Closing Date as if made at and as of
the Closing Date, except to the extent that such representations and warranties
refer specifically to an earlier date, in which case such representations and
warranties shall have been true and correct as of such earlier
date.

     

    (b)           Buyer
shall have performed or complied  in all material
respects with all obligations and covenants required by this Agreement to be
performed or complied with by Buyer at or prior to the Closing.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (c)           Buyer
shall execute and deliver to Seller a certificate of an authorized officer of
Buyer, dated as of the Closing Date, stating that the conditions specified in
Sections 7.2 (a) and (b) of this Agreement have been satisfied.

     

    (d)           On
the Closing Date, there shall be no Laws, permits or orders that operate to
restrain, enjoin or otherwise prevent or make illegal the consummation of the
transactions contemplated by this Agreement.  No action or proceeding
initiated by any Governmental Entity seeking an order prohibiting the
consummation of the transactions contemplated by this shall be
pending.

     

    (e)           Buyer
and DeWind Inc. shall have consummated the transactions contemplated in the
DeWind, Inc. APA.

     

    ARTICLE
XIX

     

    MISCELLANEOUS

     

    19.1        Notices.  Any
notice, request, demand, waiver, consent, approval or other communication which
is required or permitted hereunder shall be in writing and shall be deemed given
(a) on the date established by the sender as having been delivered personally,
(b) on the date delivered by a private courier as established by the sender by
evidence obtained from the courier, (c) on the date sent by facsimile, with
confirmation of transmission, if sent during normal business hours of the
recipient, if not, then on the next Business Day (as defined below), or (d) on
the fifth day after the date mailed, by certified or registered mail, return
receipt requested, postage prepaid.  Such communications, to be valid,
must be addressed as follows:

     

    If to Buyer, to:

     

    Daewoo Shipbuilding & Marine
Engineering Co., Ltd.

    85, Da-dong, Jung-gu

    Seoul, 100-180

    Korea

    Attn: Y. Y. Koh

    Facsimile: +182 (2)
2129-0079

    

    With a required copy to:

    

    Reed Smith LLP

    1510 Page Mill Road, Suite
110

    Palo Alto, CA 94304

    Attn: Catharina Y. Min

    Facsimile: 650.352.0699

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    
       

      If to
Seller, to:

    

     

    DeWind
Ltd.

    2026
McGaw Ave.

    Irvine,
CA 92614

    Attention:
Michael McIntosh

    Facsimile:
(949) 660-1533

     

    with a
required copy to:

     

    Milbank,
Tweed, Hadley & McCloy LLP

    601 S.
Figueroa St., 30th
Floor

    Los
Angeles, CA 90017

    Attention:  Neil
Wertlieb

    Facsimile:  (213)
892-4710

     

    or to
such other address or to the attention of such person or persons as the
recipient party has specified by prior written notice to the sending party (or
in the case of counsel, to such other readily ascertainable business address as
such counsel may hereafter maintain).  If more than one method for
sending notice as set forth above is used, the earliest notice date established
as set forth above shall control.  “Business Day” shall means a
day other than a Saturday, Sunday or other day on which banks located in Irvine,
California are authorized or required by Law to close.

     

    19.2        Amendments and
Waivers.  Any provision of this Agreement may be amended or
waived if, and only if, such amendment or waiver is in writing and is signed, in
the case of an amendment, by Buyer and Seller, or in the case of a waiver, by
the party against whom the waiver is to be effective.

     

    19.3        Expenses.  Each
party shall bear its own costs and expenses in connection with this Agreement,
the Ancillary Agreements and the transactions contemplated hereby and thereby,
including all legal, accounting, financial advisory, consulting and all other
fees and expenses of third parties, whether or not the transactions contemplated
by this Agreement are consummated.

     

    19.4        Successors and
Assigns.  This Agreement may not be assigned by either party
hereto without the prior written consent of the other party; provided that, without such
consent, Buyer may transfer or assign this Agreement, in whole or in part or
from time to time, to one or more of its affiliates, but no such transfer or
assignment will relieve Buyer of its obligations hereunder.  Subject
to the foregoing, all of the terms and provisions of this Agreement shall inure
to the benefit of and be binding upon the parties hereto and their respective
executors, heirs, personal representatives, successors and assigns.

     

    19.5        Governing
Law.  This Agreement shall be governed by and interpreted and
enforced in accordance with the Laws of the State of California, without giving
effect to any choice of Law or conflict of Laws rules or provisions (whether of
the State of California or any other jurisdiction) that would cause the
application of the Laws of any jurisdiction other than the State of
California.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    19.6        Consent to
Jurisdiction.  Each party irrevocably submits to the exclusive
jurisdiction of (a) Los Angeles County, California, and (b) the United States
District Court for the District of Central California, for the purposes of any
Action arising out of this Agreement or any transaction contemplated
hereby.  EACH PARTY HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY
JURY IN ANY ACTION (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF
OR RELATING TO THIS AGREEMENT AND THE ANCILLARY AGREEMENTS OR THE ACTIONS OF
SUCH PARTY IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT
HEREOF AND THEREOF.

     

    19.7        Counterparts.  This
Agreement may be executed in any number of counterparts, and any party hereto
may execute any such counterpart, each of which when executed and delivered
shall be deemed to be an original and all of which counterparts taken together
shall constitute but one and the same instrument.  This Agreement
shall become effective when each party hereto shall have received a counterpart
hereof signed by the other party hereto.  The parties agree that the
delivery of this Agreement, and the delivery of the Ancillary Agreements and any
other agreements and documents at the Closing, may be effected by means of an
exchange of facsimile signatures with original copies to follow by mail or
courier service.

     

    19.8        Entire
Agreement.  This Agreement and the Ancillary Agreements set
forth the entire understanding of the parties hereto with respect to the
transactions contemplated by this Agreement.  Any and all previous
agreements and understandings between or among the parties regarding the subject
matter hereof, whether written or oral, are superseded by this
Agreement.

     

    19.9        Captions.  All
captions contained in this Agreement are for convenience of reference only, do
not form a part of this Agreement and shall not affect in any way the meaning or
interpretation of this Agreement.

     

    19.10      Severability.  Any
provision of this Agreement which is invalid or unenforceable in any
jurisdiction shall be ineffective to the extent of such invalidity or
unenforceability without invalidating or rendering unenforceable the remaining
provisions hereof, and any such invalidity or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

     

    19.11      Specific
Performance.  Buyer and Seller each agree that irreparable
damage would occur in the event that the provisions of Section 5.1 were not
performed by them in accordance with the terms thereof and that each party shall
be entitled to specific performance of the terms of Section 5.1, in addition to
any other remedy at Law or equity.

     

    [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the parties hereto
have caused this Agreement to be duly executed by their respective authorized
officers as of the date first above written.

    

    
      
        
          
            
              	 
      	
                      DAEWOO
      SHIPBUILDING & MARINE

                      ENGINEERING
      CO., LTD.

                    
	 
      	 
      	 
      
	 
      	
                      By:

                    	
                       /s/ Sang Tae Nam

                    
	 
      	
                      Name:

                    
	 
      	
                      Title:

                    
	 
      	 
      	 
      
	 
      	
                      DEWIND
      LTD.

                    
	 
      	 
      	 
      
	 
      	
                      By:

                    	
                      /s/ Benton Wilcoxon

                    
	 
      	
                      Name:

                    
	 
      	
                      Title:

                    

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    LIST OF OMITTED
SCHEDULES

    

    The
Schedules listed below have been omitted from this filing. The issuer will
furnish supplementally to the Commission, upon request, a copy of any omitted
Schedule.

    

    
      	
              SCHEDULE
      1.1

            	
              PURCHASED
      ASSETS

            
	
              SCHEDULE
      3.4

            	
              PERMITTED
      LIENSExhibit
10.1

     

    ESCROW
AND SECURITY AGREEMENT

     

    This
ESCROW AND SECURITY AGREEMENT (this “Agreement”) is made and
entered into as of September 4, 2009 (the “Effective Date”), by and among DeWind
Turbine, Co., a California corporation (“DeWind Turbine”), DeWind,
Inc., a Nevada corporation (“Seller”), and U.S. Bank
National Association, a national banking association, as Escrow Agent (the
“Escrow
Agent”).

     

    RECITALS

     

    A. 
         This Agreement is entered
into pursuant to that certain Asset Purchase Agreement, dated as of August 10,
2009 (as amended, the “Purchase
Agreement”) by and among Daewoo Shipbuilding & Marine Engineering
Co., Ltd. (“DSME”),
Seller and Composite Technology Corporation.  Capitalized terms used in
this Agreement and not otherwise defined herein shall have the meanings given to
them in the Purchase Agreement.

     

    B.  
         DeWind Turbine, as an
Affiliate of DSME, has assumed all of DSME’s rights and benefits under the
Purchase Agreement, pursuant to that Assignment of Agreement between DSME and
DeWind Turbine, dated August 31, 2009.

     

    C.  
         Section 3.3(a) of the
Purchase Agreement provides that DSME or its Affiliates will be entitled to
withhold from the amounts payable to Seller at Closing cash in the amount of
Seventeen Million One Hundred Seventy-Five Thousand Dollars ($17,175,000) (the
“Escrow Funds”).  The Escrow
Funds are to be placed in an escrow account (the “Escrow Account”) for the purpose of
reimbursing DSME or its Affiliates, at least in part, for any and all Losses
DSME or its Affiliates might incur related to the Purchase Agreement and the
transactions thereunder.

     

    D. 
          DeWind Turbine and
Seller are entering into this Agreement to consummate the transactions
contemplated in the Purchase Agreement and as a condition precedent to
consummation of the Closing, and the parties desire to set forth in this
Agreement the terms and conditions pursuant to which the Escrow Funds shall be
deposited, held in and disbursed from the Escrow Account.

     

    NOW,
THEREFORE, the parties hereby agree as follows:

     

    1.      Escrow.

     

    (a)           Escrow of
Funds.

     

    (i)           Escrow Funds. 
At the Closing, DeWind Turbine shall deposit the Escrow Funds with the Escrow
Agent in the manner contemplated by Section 2(a) of this Agreement.

     

    (ii)          Agreement to Hold Escrow
Funds.  The Escrow Agent shall hold the Escrow Funds delivered to it
pursuant to Section 1(a)(i) above in escrow for the purpose of paying, at least
in part, any Claims (defined below) which might be made against the Escrow Funds
by DeWind Turbine, until the Escrow Agent is required to release such Escrow
Funds in accordance with the terms of this Agreement.  The Escrow Agent
agrees to accept delivery of such Escrow Funds and to hold such Escrow Funds in
escrow for the benefit of DeWind Turbine and Seller subject to the terms and
conditions of this Agreement.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    (b)              Notice of
Claim.  As used herein, the term “Claim” means a claim for any
Losses under Section 10.2 of the Purchase Agreement.  DeWind Turbine shall
deliver a written notice of the Claim (the “Notice of Claim”) to the Seller and the
Escrow Agent in compliance with Section 3 below.  Except as set forth in
Section 2(c)(i), DeWind Turbine will make a Claim against the Escrow Funds only
as contemplated by Section 10 of the Purchase Agreement.  DeWind Turbine
may give the Notice of Claim after the determination of any Claims in accordance
with Section 10 of the Purchase Agreement.

     

    (c)              Escrow Period. 
As used herein, the term “Escrow Period” means that time period
beginning on the Closing Date and ending on the third anniversary thereafter at
5:00 p.m. (Pacific Standard Time), unless and to the extent extended under
Section 2(c)(ii) below.

     

    2.      Deposit
of Escrow Funds; Release from Escrow.

     

    (a)              Delivery of Escrow
Funds.  On the Closing Date, the Escrow Funds shall be delivered by
DeWind Turbine to the Escrow Agent by wire transfer.

     

    (b)              Investment of Escrow
Funds.  The Escrow Funds shall be placed by the Escrow Agent into a
U.S. Bank Money Market Account as described in Exhibit A attached
hereto.  All interest or appreciation accrued on the Escrow Funds (the
“Additional Escrow Funds”) shall be deemed to be
Escrow Funds for the purposes contemplated in this Agreement.

     

    
      	
               
      

            	
              (c)

            	
              Distributions;
      Obligations in Case of Administration/Liquidation Proceedings of DeWind
      Ltd. or 4.15 Claim

            

    

     

    (i)           Distributions.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (A)          TECO
Distribution.  Upon the earlier of the date that (a)
TECO-Westinghouse Motor Company, Inc. (“TWMC”) agrees with DeWind
Turbine (or its assignee) to amend that certain Contract Manufacturing Agreement
between DeWind Turbine (or its assignee, and assigned from Seller, who was the
original party) and TWMC, dated May 30, 2008 (the “TWMC Agreement”) to amend the
minimum order requirements under Section 4 thereto, (b) the TWMC Agreement is
terminated by DeWind Turbine (or its assignee), other than in connection with a
TWMC/DeWind Turbine Release Event (defined below), (c) DeWind Turbine (or its
assignee) receives the benefits of the TWMC Agreement notwithstanding TWMC’s
failure to agree to such an amendment for at least six (6) months, or (d) TWMC
agrees to no longer exercise its right to assess a termination fee under the
TWMC Agreement or to terminate the TWMC Agreement (each of the events described
in the foregoing clauses (a), (b), (c) and (d), a “TWMC/Seller Release Event”),
DeWind Turbine and Seller shall promptly deliver a joint written instruction (a
“Joint Instruction”) to
the Escrow Agent to immediately release $4,050,000 of the Escrow Funds to
Seller.  As soon as is reasonably practical after receipt of such Joint
Instruction, but in no event later than 2 Business Days after such receipt, the
Escrow Agent shall release the $4,050,000 amount to Seller.  In the event
(w) the above-mentioned amendment to the TWMC Agreement does not occur, (x)
either TWMC or DeWind Turbine terminates the TWMC Agreement, (y) DeWind Turbine
(or its assignee) becomes obligated to pay a $4,050,000 termination fee pursuant
to the terms of the TWMC Agreement as an Assumed Liability in accordance with
the Purchase Agreement, and (z) DeWind
Turbine (or its assignee) does not receive the benefits of the TWMC Agreement
under a replacement or alternative arrangement with TWMC or its affiliate (all
of the events described in the foregoing clauses (w), (x), (y) and (z),
collectively a “TWMC/DeWind
Turbine Release Event”), then DeWind Turbine shall deliver a notice to
Seller and the Escrow Agent certifying (in good faith) that a TWMC/DeWind
Turbine Release Event has occurred and instructing the Escrow Agent to release
the $4,050,000 amount to DeWind Turbine.  If Seller does not provide the
Escrow Agent with notice that Seller contests such notice and detailed reasons
therefor within 20 Business Days after receipt by Seller of such notice from
DeWind Turbine, then the Escrow Agent shall promptly release the $4,050,000 to
DeWind Turbine.  As long as neither a TWMC/Seller Release Event nor a
TWMC/DeWind Turbine Release Event has occurred, then the $4,050,000 shall remain
in the Escrow Account until the earlier to occur of a TWMC/Seller Release Event
and a TWMC/DeWind Turbine Release Event.  Notwithstanding anything in the
preceding sentence, if any other Claim(s) has been made for an amount that is
greater than the amount that would remain in the Escrow Account if the release
under this section is made, then the Escrow Agent shall release only such amount
so that the Escrow Account would have sufficient funds to pay such other
Claim(s), and shall release the balance of the $4,050,000, if any, as soon as
all such other Claims are resolved.

     

    (B)           DeWind Ltd.
Distribution.  If between the Closing Date and the second
anniversary of the Closing Date, (a) DeWind Ltd. is not the subject of
administration or liquidation proceedings in England or Wales (or similar
proceedings in another jurisdiction) (the “Proceedings Event”) and (b) no
winding up petition has been issued in England or Wales (or an analogous claim
or petition issued in another jurisdiction) against DeWind Ltd (the “Wind Up Event,” and each of
the Proceedings Event and Wind Up Event, an “Insolvency Event”) and (c) no
assertion of any claim is made or any action or lawsuits have been filed which
allege to be, or could become, 4.15(n) Losses (as defined in Section 10.2(c) of
the Purchase Agreement) (a “4.15 Claim”), then DeWind
Turbine and Seller shall deliver a Joint Instruction to the Escrow Agent to
release $6,975,000 to Seller.  As
reasonably practical after receipt of such Joint Instruction, but in no event
later than 2 Business Days after such receipt, the Escrow Agent shall release
$6,975,000 to Seller.  Notwithstanding anything in the preceding sentence,
if any other Claim(s) has been made for an amount that is greater than the
amount that would remain in the Escrow Account if the release under this section
is made, then the Escrow Agent shall release only such amount so that the Escrow
Account would have sufficient funds to pay such other Claim(s), and shall
release the balance of the $6,975,000, if any, as soon as all such other Claims
are resolved.

     

    (C)           Section 2.3(b)(ii)
Distributions.  In the event that Seller makes a payment or payments
in respect of a Liability referenced in clause (ii) of Section 2.3(b) of the
Purchase Agreement, and/or Seller desires that a payment or payments in respect
of a Liability referenced in clause (ii) of Section 2.3(b) of the Purchase
Agreement be made directly to the payee(s) with respect thereto, then DeWind
Turbine and Seller shall promptly deliver a Joint Instruction to the Escrow
Agent to release the amount of the payment(s) to Seller in reimbursement or to
such payee(s), as applicable; provided, however, that the
aggregate amount of distributions pursuant to this Section 2(c)(i)(3) shall not
exceed $1,500,000 in the aggregate.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    (D)          Other
Distribution.  On the date upon which the Escrow Period expires (the
“Release Date”), the Escrow Agent shall
release from the Escrow Account to Seller the remaining Escrow Funds (including
any Additional Escrow Funds), less (A) any Escrow Funds delivered to DeWind
Turbine in accordance with this Agreement or Section 10 of the Purchase
Agreement in satisfaction of any Claims by DeWind Turbine and (B) any amounts
subject to unresolved Claims for which DeWind Turbine has delivered a Notice of
Claim, provided that the Escrow Agent shall promptly release to Seller the
balance of the Escrow Funds (including any Additional Escrow Funds) not subject
to such unresolved Claims as soon as any such Claims are resolved.

     

    (ii)         Bankruptcy or 4.15
Claim.  Notwithstanding anything in this Agreement, if DeWind Ltd.
is the subject of an Insolvency Event or a 4.15 Claim is made at any time before
the Release Date, then:

     

    (A)         Either
the $11,625,000 (if the events under Section 2(c)(i)(2) has occurred and
therefore there is no distribution to Seller) or $4,650,000 (if there has been a
distribution under Section 2(c)(i)(2)) or such amount of funds as then remains
in the Escrow Account (the “Bankruptcy Fund”) shall remain
in the Escrow Account and shall not be released to Seller under any provision of
this Agreement (other than this Section 2(c)(ii)) until the dissolution of
DeWind Ltd. or full and final resolution of any 4.15 Claim;

     

    (B)          If
DeWind Turbine and Seller shall deliver a Joint Bankruptcy Fund Notice (as
defined below) to the Escrow Agent, then Escrow Agent shall, as soon as
practicable after receipt of such Joint Bankruptcy Fund Notice, but in no event
later than 2 Business Days after such receipt, release some or all of the
Bankruptcy Fund as directed in the Joint Bankruptcy Fund Notice;

     

    (C)          DeWind
Turbine and Seller agree to the following:

     

    A.          “Joint Bankruptcy Fund Notice” means
a notice (a) instructing Escrow Agent to release all or portion of the
Bankruptcy Fund to DeWind Turbine or Seller or other third party, and (b)
certifying (in good faith) that such funds will be used to pay for claims,
settlements, fees, expenses or costs incurred as result of (X) any 4.15 Claim or
(Y) any administrator, liquidator, trustee, creditor or other person seeking to
avoid or otherwise challenging the validity of all or any part of any
transaction (1) involving the transfer of assets between DeWind Ltd. and Seller,
(2) involving the transfer of assets between DeWind, Inc. and DSME or any of its
Affiliates, and/or (3) contemplated in the Purchase Agreement (together with a
4.15 Claim, each an “Administrator
Challenge”);

     

    B.           If
the Administrator Challenge is claimed against Seller, then (X) Seller may
request that DeWind Turbine cooperate in such defense or settlement of such
Administrator Challenge (and Seller shall pay for any and all reasonable costs,
expenses and attorneys fees incurred by DeWind Turbine in such defense to the
extent not otherwise paid according to the terms of this Agreement), and (Y)
Seller will not settle any Administrator Challenge unless such settlement both
is consented to by DeWind Turbine (which consent will not be unreasonably
withheld) and releases DeWind Turbine from all potential claims that could arise
under the Administrator Challenge;

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    C.           If
the Administrator Challenge is claimed against DeWind Turbine, then (X) Seller
may request that DeWind Turbine defend against such Administrator Challenge and
that Seller co-operate and participate in the defense or settlement of any
Administrator Challenge (and Seller shall pay for any reasonable costs, expenses
and attorneys fees incurred by DeWind Turbine in such defense to the extent not
otherwise paid according to the terms of this Agreement ), (Y) DeWind Turbine
will not settle any Administrator Challenge unless such settlement both is
consented to by Seller (which consent will not be unreasonably withheld) and
releases Seller from all potential claims that could arise under the
Administrator Challenge, and (Z) Seller agrees to provide DeWind Turbine with
reasonable access during regular business hours to any information Seller has
that is reasonably necessary in connection with the preparation of any defense
against or settlement of the Administrator Challenge; and

     

    D.           If
Seller is obligated by this section to defend such Administrator Challenge and
does not do so diligently in DeWind Turbine’s reasonable determination, DeWind
Turbine shall have the exclusive right to defend such Administrator
Challenge.

     

    (D)         The
remaining balance of the Bankruptcy Fund shall be immediately released from the
Escrow Account to Seller upon written notice by Seller to DeWind Turbine and the
Escrow Agent, which notice is not contested by DeWind Turbine within 5 Business
Days of receipt of Seller’s notice, certifying (in good faith) that the
dissolution of DeWind Ltd. has occurred or that the 4.15 Claim has been fully
and finally resolved.

     

    (d)              Release of Escrow
Funds.  The Escrow Funds shall be held by the Escrow Agent for the
benefit of DeWind Turbine and Seller until such Escrow Funds are required to be
released pursuant to either:  (i) Section 2(c) above; or (ii)
when required under applicable provisions of Section 4 below.  The Escrow
Agent shall deliver to Seller or to DeWind Turbine, as applicable hereunder, the
requisite amount of Escrow Funds to be released on such applicable date(s) by
wire transfer to such account(s) as have been designed in writing to the Escrow
Agent by Seller or DeWind Turbine, respectively.

     

    (e)              Nature of Interest in Escrow
Funds.  The parties acknowledge and agree that DeWind Turbine’s and
Seller’s payment interests in the Escrow Funds are contingent rights to payment
from the Escrow Funds, and that neither a voluntary or involuntary case under
any applicable bankruptcy, insolvency or similar law, nor the appointment of a
receiver, trustee, custodian or similar official in respect of DeWind Turbine or
Seller shall increase its respective payment interest in the Escrow Funds or
affect, modify, convert or otherwise change any right it may have to the Escrow
Funds.

     

    (f)  
            No Transfer or Encumbrance
of Escrow Funds.  Both parties have not, and agree that they will
not, subject the Escrow Funds to a Lien or otherwise encumber the Escrow Funds,
except as permitted by this Agreement.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (g)              Grant of Security Interest
to DeWind Turbine.  In order to secure Seller’s obligations and
enhance DeWind Turbine’s rights and remedies under this Agreement and under the
Purchase Agreement, Seller hereby grants to DeWind Turbine, effective as of the
date hereof, a security interest in all of Seller’s right, title and interest in
and to the Escrow Account and the Escrow Funds, including, without limitation,
all accounts, certificates of deposit, cash, funds and investments established
or made with the Escrow Funds and any replacements or proceeds thereof. 
The Escrow Agent acknowledges that DeWind Turbine has a security interest in the
Escrow Account, the Escrow Funds and Additional Escrow Funds, and all assets and
investments which may be held in the Escrow Account from time to time, and shall
maintain and preserve such assets subject to this security interest.  The
parties hereto agree that this Agreement including Section 2(g) shall establish
“control,” as defined in Sections 9-104 and 8-106 of the Uniform Commercial
Code, as enacted in the State of California, and as amended from time to time
(the “UCC”), of the
Escrow Funds, which control is effective to perfect DeWind Turbine’s security
interest in the Escrow Funds.  The Escrow Agent and Seller shall take all
actions as may be reasonably requested in writing by DeWind Turbine to perfect
or maintain the security interest created by Seller hereunder in the Escrow
Funds.  DeWind Turbine is authorized by the other parties hereto to file
UCC financing statements naming Seller as “Debtor” and DeWind Turbine as
“Secured Party” and take such other and further actions as DeWind Turbine may
reasonably determine to perfect DeWind Turbine’s security interest granted
herein, with or without execution by the other parties hereto, to the extent
permitted by applicable law.  Such security interest shall automatically be
released solely with respect to any funds properly distributed from the Escrow
Funds pursuant to the terms of this Agreement.  DeWind Turbine agrees to
promptly execute such instruments of release and termination of the security
interest granted hereunder with respect to any Escrow Funds properly received by
or distributable to Seller pursuant to the terms of this Agreement, and as may
be reasonably requested in writing by Seller.  Seller hereby represents and
warrants to DeWind Turbine that (1) its exact legal name is as set forth in
the Preamble hereto, (2) it is a Nevada corporation, (3) its organizational
identification number issued by the state of Nevada is E0851042006-3 and (4) its
principal place of business is 2026 McGaw Ave., Irvine, California
93614

     

    (h)              Power to Transfer Escrow
Funds.  The Escrow Agent is hereby granted the power to effect any
transfer of Escrow Funds contemplated by this Agreement.

     

    (i)      
         Tax Reporting. 
The parties hereto agree that, for tax reporting purposes, all interest or other
income, if any, attributable to the Escrow Funds or any other amount held in
escrow by the Escrow Agent pursuant to this Agreement shall be allocable to
Seller.

     

    (j)     
          Certification of Tax
Identification Numbers.  DeWind Turbine and Seller agree to provide
the Escrow Agent with certified tax identification numbers for each of them by
signing and returning Forms W-8 or W-9 to the Escrow Agent at signing of this
Agreement.  The parties hereto understand that, if such tax identification
numbers are not so certified to the Escrow Agent, the Escrow Agent may be
required by the Internal Revenue Code, as it may be amended from time to time,
to withhold a portion of any interest or other income earned on the investment
of monies or other property held by the Escrow Agent pursuant to this
Agreement.

     

    3. 
    Notice of Claim.

     

    (a)    
          Contents of
Notice.  The Notice of Claim given by DeWind Turbine pursuant to
Section 1(b) above shall be set forth in writing and shall contain the following
information to the extent it is reasonably available to DeWind
Turbine:

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    (i)           The
amount, if known, or if not known, of an estimate of the foreseeable maximum
amount of claimed Losses (which estimate shall not be conclusive of the final
amount of such Losses) (the “Loss Amount”);
and

     

    (ii) 
        A detailed description of the
basis for such Claim, including the facts and circumstances justifying DeWind
Turbine’s entitlement to indemnification pursuant to Section 10.2 of the
Purchase Agreement with reference to the specific breach alleged or other basis
for such entitlement, and the application (or inapplicability) of the threshold
for a De Minimis Claim, the Deductible and the Cap.

     

    (b)            No Release Until Resolved
Under Section 4.  The Escrow Agent shall not transfer any of the
Escrow Funds held in the Escrow Account to DeWind Turbine pursuant to a Notice
of Claim until such Notice of Claim has been resolved in accordance with Section
4. Notwithstanding the foregoing and for the purpose of clarification, this
Section 3(b) shall not be applicable to any amount of Escrow Funds released to
Seller pursuant to Section 2(c) above.

     

    4. 
    Resolution of Claims and Transfers of Escrow
Funds.  The Notice of Claim received by Seller and the Escrow Agent
pursuant to Section 1(b) and Section 3 above shall be resolved as
follows:  After the Notice of Claim has been delivered by DeWind
Turbine to Seller and the Escrow Agent pursuant to Section 6(e), Seller will
have 15 Business Days from receipt of such Notice of Claim to dispute the Claim
and shall reasonably cooperate and assist DeWind Turbine in determining the
validity of the Claim for indemnity.  If Seller does not give notice to
DeWind Turbine that it disputes the Claim within 15 Business Days after receipt
of the Notice of Claim, the Claim shall be deemed to be a Loss subject to
indemnification under Section 10 of the Purchase Agreement, and the Escrow Agent
shall:  (a) as soon as is reasonably practical release from escrow and
transfer to DeWind Turbine an amount of the Escrow Funds equal to (i) the amount
of the Loss Amount specified in the Notice of Claim if the Loss Amount is less
than the amount of the Escrow Funds, or (ii) the amount of the Escrow Funds if
the Loss Amount exceeds the amount of the Escrow Funds; and (b) notify Seller in
writing of such transfer of Escrow Funds as promptly thereafter. 
Notwithstanding the foregoing, if Seller gives notice to DeWind Turbine, with a
copy to the Escrow Agent, that it disputes the Claim, then the Escrow Agent
shall not release any of the Escrow Funds in favor of DeWind Turbine until such
dispute is resolved pursuant to Section 5(b).

     

    5. 
    Limitation of Escrow Agent’s Liability.

     

    (a)             Limitation of
Liability.  The Escrow Agent shall incur no liability with respect
to any action taken or suffered by it in good faith reliance upon any notice,
direction, instruction, consent, statement or other document believed by it in
good faith to be genuine and duly authorized, nor for any other action or
inaction, except its own willful misconduct, fraud or gross negligence or a
material breach of its obligations under this Agreement.  The Escrow Agent
shall have no duty to inquire into or investigate the validity, accuracy or
content of the Notice of Claim or any other document delivered to it.  The
Escrow Agent also need not inquire into or verify that any Claim set forth in a
Notice of Claim conforms to the requirements of Section 10.5 of the Purchase
Agreement.  The Escrow Agent shall not be responsible for the validity or
sufficiency of this Agreement.  In all questions arising under this
Agreement, the Escrow Agent may rely on the advice or opinion of counsel, and
for anything done, omitted or suffered in good faith by the Escrow Agent based
on such advice, the Escrow Agent shall not be liable to anyone.  The Escrow
Agent shall not be required to take any action hereunder involving any expense
unless the payment of such expense is made or provided for in a manner
satisfactory to it.  The Escrow Agent shall have no duties or
responsibilities other than those expressly set forth in this Agreement and the
implied duty of good faith and fair dealing.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    (b)              Resolution of Conflicting
Demands.  In the event conflicting demands are made or conflicting
notices are served upon the Escrow Agent with respect to the Escrow Account, the
Escrow Agent shall not release any of the Escrow Funds, but shall have the
absolute right, at the Escrow Agent’s election, to do any or all of the
following:  (i) resign so a successor Escrow Agent can be appointed
pursuant to Section 5(f); (ii) file a suit in interpleader and obtain an order
from a court of competent jurisdiction requiring the parties to interplead and
litigate in such court their several claims and rights among themselves; or
(iii) give written notice to the parties that it has received conflicting
instructions from the parties hereto and is refraining from taking action until
it receives Joint Instructions consented to in writing by both DeWind Turbine
and Seller.  In the event an interpleader suit as described in clause (ii)
above is brought, the Escrow Agent shall thereby be fully released and
discharged from all further obligations imposed upon it under this Agreement
with respect to the matters that are the subject of such interpleader suit, and
DeWind Turbine shall pay the Escrow Agent all costs, expenses and reasonable
attorneys’ fees expended or incurred by the Escrow Agent pursuant to the
exercise of the Escrow Agent’s rights under this Section 5(b) (such costs, fees
and expenses shall be treated as fees and expenses for the purposes of Section
5(g)).  The prevailing party shall be entitled to reimbursement from the
other party of any fees and expenses of the Escrow Agent in connection with such
interpleader.

     

    (c)     
         Indemnification. 
Each of DeWind Turbine on the one hand and Seller on the other (each an “Indemnifying Party” and together the “Indemnifying Parties”), hereby jointly and
severally covenants and agrees to reimburse, indemnify and hold harmless the
Escrow Agent, and the Escrow Agent’s officers, directors, employees, counsel and
agents (severally and collectively, “Escrow Agent”), from and
against any loss, damage or liability suffered, incurred by or asserted against
Escrow Agent (including amounts paid in settlement of any action, suit,
proceeding or claim brought or threatened to be brought and including reasonable
expenses of legal counsel) arising out of, in connection with or based upon, any
act or omission in good faith by Escrow Agent (not involving negligence, breach
of the terms of this Agreement, gross negligence, willful misconduct or fraud on
Escrow Agent’s part) relating in any way to this Agreement or the Escrow Agent’s
services hereunder.  Anything in this Agreement to the contrary
notwithstanding, in no event shall the Escrow Agent be liable for special,
indirect or consequential loss or damages of any kind whatsoever (including but
not limited to lost profits), even if the Escrow Agent has been advised of the
likelihood of such loss or damages and regardless of the form of action. 
Any Indemnifying Party who reimburses or indemnifies the Escrow Agent pursuant
to this Section 5(c) shall have a right to seek contribution from any and all
other Indemnifying Parties according to their relative fault.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    (d)              Defense.  Each
Indemnifying Party may participate at its own expense in the defense of any
claim or action that may be asserted against Escrow Agent, and if the
Indemnifying Parties so elect, the Indemnifying Parties may assume the defense
of such claim or action; provided, however,
that if there exists a conflict of interest that would make it inappropriate, in
the sole discretion of the Escrow Agent, for the same counsel to represent both
Escrow Agent and the Indemnifying Parties, Escrow Agent’s retention of separate
counsel shall be reimbursable as hereinabove provided.  Escrow Agent’s
right to indemnification hereunder shall survive Escrow Agent’s resignation or
removal as Escrow Agent and shall survive the termination of this Agreement by
lapse of time or otherwise.

     

    (e)    
          Notice to Indemnifying
Parties.  The Escrow Agent shall notify each Indemnifying Party by
letter, or by telephone or telecopy confirmed by letter, of any receipt by
Escrow Agent of a written assertion of a claim against Escrow Agent, or any
action commenced against Escrow Agent, for which indemnification is required
under Section 5(c), within 10 Business Days after Escrow Agent’s receipt of
written notice of such claim.  The Indemnifying Parties will be relieved of
their indemnification obligations under this Section 5 if Escrow Agent fails to
timely give such notice and such failure adversely affects the Indemnifying
Parties’ ability to defend such claim.  However, Escrow Agent’s failure to
so notify each Indemnifying Party shall not operate in any manner whatsoever to
relieve an Indemnifying Party from any liability that it may have otherwise than
on account of this Section 5.

     

    (f)     
         Successor to Escrow
Agent.  The Escrow Agent may resign as Escrow Agent by giving both
DeWind Turbine and Seller 30 days written notice of its intention to
resign.  In the case of such a resignation, the Escrow Agent shall
cooperate fully with the other parties in the orderly transfer of the Escrow
Funds to a successor Escrow Agent and shall promptly refund the pro rata portion
of any unearned escrow fees which may have been paid.  If the Escrow Agent
resigns or is not available for any reason, DeWind Turbine and Seller shall
mutually appoint a successor to the Escrow Agent who (i) is a national bank
having assets of at least $10,000,000,000; and (ii) shall execute a copy of this
Escrow Agreement for delivery to DeWind Turbine and Seller.  Until such
time as the Escrow Agent’s successor is appointed, the Escrow Agent shall retain
the Escrow Funds.

     

    (g)              Fees.

     

    (i)           DeWind
Turbine on the one hand, and Seller on the other hand, shall each bear 50% of
the Escrow Agent’s fees and expenses and shall timely pay such fees and
expenses.  The Escrow Agent’s non-refundable Initial Setup fee in the
amount of $1,000 shall be paid at signing of this Agreement and an additional
fee for each transaction of funds or documents in or out of the escrow,
excluding the initially required documents, including this Agreement, to fully
effect the escrow (the “Transaction Fee”) will be
invoiced (the “Invoice”)
when a transaction occurs, and all fees shall be payable in U.S.
Dollars.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    (ii)          In
the event of non-payment of any fees or charges invoiced by the Escrow Agent,
the Escrow Agent shall give notice of non-payment of any fee due and payable
hereunder to the non-paying party and, in such an event, such party shall have
the right to pay the unpaid fee within ten Business Days after receipt of notice
from the Escrow Agent or otherwise give notice of its good faith dispute
thereof.  If such party fails to pay in full all undisputed fees due during
such ten business day period, the Escrow Agent shall give notice of non-payment
of any undisputed fee due and payable hereunder to the other party hereto and,
in such event, such party shall have the right, but not the obligation, to pay
the unpaid fee within ten days of receipt of such notice from the Escrow
Agent.  A party who pays the other party’s portion of fees pursuant to this
Section 5(g)(ii) shall have a claim against the Escrow Funds for such
amounts.  Upon payment of the undisputed unpaid fee by either DeWind
Turbine or Seller, as the case may be, this Agreement shall continue in full
force and effect until the end of the applicable term. Failure to pay the
undisputed unpaid fee under this Section 5(g)(ii) by both DeWind Turbine and
Seller shall result in termination of this Agreement upon 30 days prior written
notice by the Escrow Agent to Seller and DeWind Turbine, unless the Escrow Agent
has been given notice of any good faith dispute of the unpaid fees.

     

    6. 
    General Terms.

     

    (a)              Termination; Successors and
Assigns.  Upon the release of all Escrow Funds to Seller and/or to
DeWind Turbine pursuant to the terms and conditions of this Agreement, this
Agreement shall terminate and be of no further force and effect.  Until
such time, this Agreement shall bind and inure to the benefit of Seller, DeWind
Turbine, the Escrow Agent and their respective successors and permitted
assigns.  Neither Seller nor DeWind Turbine may assign any of its rights or
obligations hereunder without the prior written consent of the other party,
provided that either may assign or delegate any of its rights and obligations
under this Agreement to an Affiliate upon notice to the other parties hereto at
any time without requiring the consent of any party.

     

    (b)              Governing Law. 
This Agreement shall be governed by and interpreted and enforced in accordance
with the Laws of the State of California, without giving effect to any choice of
Law or conflict of Laws rules or provisions (whether of the State of California
or any other jurisdiction) that would cause the application of the Laws of any
jurisdiction other than the State of California.

     

    (c)     
         Severability. 
Any provision of this Agreement which is invalid or unenforceable in any
jurisdiction shall be ineffective to the extent of such invalidity or
unenforceability without invalidating or rendering unenforceable the remaining
provisions hereof, and any such invalidity or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

     

    (d)              Amendment and Waivers;
Rights Non-Exclusive.  Any term or provision of this Agreement may
be amended, and the observance of any term of this Agreement may be waived
(either generally or in a particular instance and either retroactively or
prospectively), only by a writing signed by the party to be bound thereby. 
The waiver by a party of any breach hereof or default in the performance hereof
will not be deemed to constitute a waiver of any other default or any succeeding
breach or default.  The rights and remedies of the parties under this
Agreement are cumulative and not exclusive of any rights or remedies which such
party would otherwise have.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    (e) 
             Notices.  Any
notice, request, demand, waiver, consent, approval or other communication which
is required or permitted hereunder shall be in writing and shall be deemed given
(i) on the date established by the sender as having been delivered personally,
(ii) on the date delivered by a private courier as established by the sender by
evidence obtained from the courier, (iii) on the date sent by facsimile, with
confirmation of transmission, if sent during normal business hours of the
recipient, if not, then on the next business day, or (iv) on the fifth day after
the date mailed, by certified or registered mail, return receipt requested,
postage prepaid.  Such communications, to be valid, must be addressed as
follows:

     

    If to DeWind Turbine, to:

     

    DeWind Turbine Co.

    3 Park Plaza, Jamboree Center Building,
Suite 1920

    Irvine, CA 92614

    Attention:  Hyun Ho
Seo

    Phone:  [+82-2-2129-0153]

    Facsimile:  [+82-2-2129-0079]

    

    With a
required copy to:

    

    Reed Smith LLP

    1510 Page Mill Road, Suite
110

    Palo Alto, CA 94304

    Attention:  Catharina Y.
Min

    Phone:  (650)
352-0526

    Facsimile:  (650)
352-0699

     

    If to
Seller, to:

     

    Composite
Technology Corporation

    2026
McGaw Ave.

    Irvine,
CA 92614

    Attention:  Michael
McIntosh

    Phone:   (949)
428-8500

    Facsimile:  (949)
660-1533

     

    With a
required copy to:

     

    Milbank,
Tweed, Hadley & McCloy LLP

    601 S.
Figueroa St., 30th
Floor

    Los
Angeles, CA 90017

    Attention:  Neil
Wertlieb

    Phone:   (213)
892-4410

    Facsimile:  (213)
892-4710

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    If to
Escrow Agent, to:

     

    U.S. Bank
National Association

    Corporate
Trust Services

    One
California Street, Suite 1000

    San
Francisco, CA 94111

    Attention:  Alan
Maravilla

    Phone:  (415)
273-4512

    Facsimile:  (415)
273-4590

    

    or to
such other address or to the attention of such person or persons as the
recipient party has specified by prior written notice to the sending party (or
in the case of counsel, to such other readily ascertainable business address as
such counsel may hereafter maintain).  If more than one method for sending
notice as set forth above is used, the earliest notice date established as set
forth above shall control.

     

    (f)  
            Further
Assurances.  DeWind Turbine and Seller each agrees to cooperate
fully with the other parties and to execute such further instruments, documents
and agreements and to give such further written assurances as may be reasonably
requested by the other parties to evidence and reflect the transactions provided
for herein and to carry into effect the intent of this Agreement.

     

    (g)              Entire
Agreement.  This Agreement, any agreements referenced herein, and
any exhibits and schedules hereto constitute the entire understanding and
agreement of the parties hereto with respect to the subject matter hereof and
supersede all prior and contemporaneous agreements or understandings,
inducements or conditions, express or implied, written or oral, between the
parties with respect to the subject matter hereof.  Any and all previous
agreements and understandings between or among the parties regarding the subject
matter hereof, whether written or oral, are superseded by this
Agreement.

     

    (h)              Escrow Agent. 
U.S. Bank National Association is acting solely as Escrow Agent and is not a
party to, nor has it reviewed or approved the Purchase Agreement or any other
matter of background related to this Escrow Agreement, other than this Agreement
itself, and has assumed without investigation, the authority of the individuals
executing this Escrow Agreement to be authorized to do so on behalf of the party
or parties involved.

     

    (i)     
          USA Patriot Act
Compliance.  To help the government fight the funding of terrorism
and money laundering activities, federal law requires all financial institutions
to obtain, verify and record information that identifies each person who opens
an account.  For a non-individual person such as a business entity, a
charity, a trust or other legal entity the Escrow Agent will ask for
documentation to verify its formation and existence as a legal entity.  The
Escrow Agent may also ask to see financial statements, licenses, identification
and authorization documents from individuals claiming authority to represent the
entity or other relevant documentation.  The parties each agree to provide
all such information and documentation as to themselves as requested by Escrow
Agent to ensure compliance with federal law.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    (j)     
          Consent to
Jurisdiction.  Each party irrevocably submits to the exclusive
jurisdiction of (i) Los Angeles County, California, and (ii) the United States
District Court for the District of Central California, for the purposes of any
Action arising out of this Agreement or any transaction contemplated
hereby.  EACH PARTY HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN
ANY ACTION (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR
RELATING TO THIS AGREEMENT AND THE ANCILLARY AGREEMENTS OR THE ACTIONS OF SUCH
PARTY IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT HEREOF AND
THEREOF.

     

    (k)    
          Counterparts. 
This Agreement may be executed in any number of counterparts, and any party
hereto may execute any such counterpart, each of which when executed and
delivered shall be deemed to be an original and all of which counterparts taken
together shall constitute but one and the same instrument.  This Agreement
shall become effective when each party hereto shall have received a counterpart
hereof signed by the other party hereto.

     

    [Signature
Pages Follow]

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

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

     

    
      
        
          
            
              
                	 
      	
                        DEWIND
      TURBINE:

                      
	 
      	 
      
	 
      	
                        DEWIND
      TURBINE CO.

                      
	 
      	 
      
	 
      	
                        By:

                      	
                        /s/

                      
	 
      	
                        Name: 

                      	 
      
	 
      	
                        Title:

                      	 
      
	 
      	 
      
	 
      	
                        SELLER:

                      
	 
      	 
      
	 
      	
                        DEWIND
      INC.

                      
	 
      	 
      
	 
      	
                        By:

                      	
                        /s/

                      
	 
      	
                        Name:

                      	 
      
	 
      	
                        Title:

                      	 
      
	 
      	 
      
	 
      	
                        ESCROW
      AGENT:

                      
	 
      	 
      
	 
      	
                        U.S.
      BANK, NATIONAL ASSOCIATION

                      
	 
      	 
      
	 
      	
                        By:

                      	
                        /s/

                      
	 
      	
                        Name:

                      	
                           Alan
  Maravilla

                      
	 
      	
                        Title:

                      	
                           Vice
  President

                      

              

            

          

        

      

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    EXHIBIT
A

    U. S.
BANK MONEY MARKET ACCOUNTS

    ACCOUNT
DESCRIPTION AND TERMS

    

    U.S. Bank
money market accounts are U.S. Bank National Association (“U.S. Bank”) deposit
accounts designed to meet the needs of Corporate Escrow and other Corporate
Trust customers of U. S. Bank.  Accounts pay competitive variable interest
rates, which are determined upon the customer’s aggregated balance. 
Customer deposits are insured up to $250,000 per depositor  pursuant
to the Federal Deposit Insurance Corporation’s insurance rules.

    

    Interest
rates currently offered on the accounts are determined at U. S. Bank’s
discretion and may change daily.  U. S. Bank National Association uses the
daily balance method to calculate interest on these accounts.  This
method applies a daily periodic rate to the principal in the accounts each day
of the month and divides that figure by the number of days in the
period.  Interest on customer deposits begins to accrue on the
business day funds are credited to a U.S. Bank deposit
account.  Interest is compounded on a monthly basis.

    

    The owner
of the accounts is U. S. Bank National Association as agent for its
customers.  All account deposits and withdrawals are performed by U.S.
Bank National Association.

    
      
         

      

      
        15

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