Document:

ex10_2.htm

 

2010 STOCK OPTION PLAN OF

Cascade Wind Corp., Inc.

A Nevada Corporation

March 24, 2010

 

 

 

STOCK OPTION PLAN OF

Cascade Wind Corp., Inc.

TABLE OF CONTENTS

	  	
Page No.

	  	  
	
PURPOSE OF THE PLAN
	
1

	
TYPES OF STOCK OPTIONS
	
1

	
DEFINITIONS
	
1

	
ADMINISTRATION OF THE PLAN
	
2

	
GRANT OF OPTIONS
	
3

	
STOCK SUBJECT TO PLAN
	
3

	
TERMS AND CONDITIONS OF OPTIONS
	
4

	
TERMINATION OR AMENDMENT OF THE PLAN
	
8

	
INDEMNIFICATION
	
8

	
EFFECTIVE DATE AND TERM OF THE PLAN
	
9

 

 

 

 

STOCK OPTION PLAN OF

Cascade Wind Corp., Inc.

A Nevada Corporation

 

	
1.  
	
PURPOSE OF THE PLAN

The purpose of this Plan is to strengthen Cascade Wind Corp., Inc. (hereinafter the “Company”) by providing incentive stock options as a means to attract, retain and motivate key corporate personnel, through ownership of stock of the Company, and to attract individuals
of outstanding ability to render services to and enter the employment of the Company or its subsidiaries.

	
2.  
	
TYPES OF STOCK OPTIONS

There shall be two types of Stock Options (referred to herein as "Options" without distinction between such different types) that may be granted under this Plan: (1) Options intended to qualify as Incentive Stock Options under Section 422 of the Internal Revenue Code (“Qualified Stock Options”), and (2) Options not specifically authorized or qualified for favorable income tax treatment under the Internal Revenue Code
(“Non-Qualified Stock Options”).

	
3.  
	
DEFINITIONS

The following definitions are applicable to the Plan:

	
(1)  
	
Board.  The Board of Directors of the Company.

	
(2)  
	
Code.  The Internal Revenue Code of 1986, as amended from time to time.

	
(3)  
	
Common Stock. The shares of Common Stock of the Company.

	
(4)  
	
Company. Cascade Wind Corp., Inc., a Nevada corporation.

	
(5)  
	
Consultant. An individual or entity that renders professional services to the Company as an independent contractor and is not an employee or under the direct supervision and control of the Company.

	
(6)  
	
Disabled or Disability.  For the purposes of Section 7, a disability of the type defined in Section 22(e)(3) of the Code. The determination of whether an individual is Disabled or has a Disability is determined under procedures established by the Plan Administrator for purposes of the Plan.

	
(7)  
	
Fair Market Value. For purposes of the Plan, the “fair market value" per share of Common Stock of the Company at any date shall be: (a) if the Common Stock is listed on an established stock exchange or exchanges or the NASDAQ National Market, the closing price per share on the last trading day immediately preceding such date on the principal exchange
on which it is traded or as reported by NASDAQ; or (b) if the Common Stock is not then listed on an exchange or the NASDAQ National Market, but is quoted on the NASDAQ Small Cap Market, the NASDAQ electronic bulletin board or the National Quotation Bureau pink sheets with a daily trading volume over each of the twenty days preceding such date of not less than 250,000 shares, the average of the closing bid and asked prices per share for the Common Stock as quoted by NASDAQ or the National Quotation Bureau, as
the case may be, on the twenty trading days immediately preceding such date; or (c) if the Common Stock is not then listed on an exchange or the NASDAQ National Market, or quoted by NASDAQ or the National Quotation Bureau with sufficient volume, an amount determined in good faith by the Plan Administrator.  In making this determination the Plan Administrator may, but is not required to, seek and rely upon such expert opinions as the Plan Administrator deems advisable.

 

 

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(8)  
	
Incentive Stock Option. Any Stock Option intended to be and designated as an "incentive stock option" within the meaning of Section 422 of the Code.

	
(9)  
	
Non-Qualified Stock Option. Any Stock Option that is not an Incentive Stock Option.

	
(10)  
	
Optionee. The recipient of a Stock Option.

	
(11)  
	
Plan Administrator. The board or the Committee designated by the Board pursuant to Section 4 to administer and interpret the terms of the Plan.

	
(12)  
	
Stock Option. Any option to purchase shares of Common Stock granted pursuant to Section 7.

	
4.  
	
ADMINISTRATION OF THE PLAN

This Plan shall be administered by the Board of Directors or by a Compensation Committee (hereinafter the “Committee”) composed of members selected by, and serving at the pleasure of, the Board of Directors (the “Plan Administrator”). Subject to the provisions of the Plan, the Plan Administrator shall have authority
to construe and interpret the Plan, to promulgate, amend, and rescind rules and regulations relating to its administration, to select, from time to time, among the eligible employees and non-employee consultants (as determined pursuant to Section 5) of the Company and its subsidiaries those employees and consultants to whom Stock Options will be granted, to determine the duration and manner of the grant of the Options, to determine the exercise price, the number of shares and other terms covered by the Stock
Options, to determine the duration and purpose of leaves of absence which may be granted to Stock Option holders without constituting termination of their employment for purposes of the Plan, and to make all of the determinations necessary or advisable for administration of the Plan. The interpretation and construction by the Plan Administrator of any provision of the Plan, or of any agreement issued and executed under the Plan, shall be final and binding upon all parties. No member of the Committee or Board
shall be liable for any action or determination undertaken or made in good faith with respect to the Plan or any agreement executed pursuant to the Plan.

If a Committee is established, all of the members of the Committee shall be persons who, in the opinion of counsel to the Company, are outside directors and "non-employee directors" within the meaning of Rule 16b-3(b)(3)(i) promulgated by the Securities and Exchange Commission.  ­From time to time, the Board may increase or
decrease the size of the Committee, and add additional members to, or remove members from, the Committee. The Committee shall act pursuant to a majority vote, or the written consent of a majority of its members, and minutes shall be kept of all of its meetings and copies thereof shall be provided to the Board. Subject to the provisions of the Plan and the directions of the Board, the Committee may establish and follow such rules and regulations for the conduct of its business as it may deem advisable.

 

 

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At the option of the Board, the entire Board of Directors of the Company may act as the Plan Administrator during such periods of time as all members of the Board are “outside directors” as defined in Treas. Regs. §1.162-27(e)(3), except that this requirement shall not apply during any period of time prior to the date the
Company's Common Stock becomes registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended.

	
5.  
	
GRANT OF OPTIONS

The Company is hereby authorized to grant Incentive Stock Options as defined in section 422 of the Code to any employee or director (including any officer or director who is an employee) of the Company, or of any of its subsidiaries; provided, however, that no person who owns stock possessing more than 10% of the total combined voting power
of all classes of stock of the Company, or any of its parent or subsidiary corporations, shall be eligible to receive an Incentive Stock Option under the Plan unless at the time such Incentive Stock Option is granted the Option price is at least 110% of the fair market value of the shares subject to the Option, and such Option by its terms is not exercisable after the expiration of five years from the date such Option is granted.

An employee may receive more than one Option under the Plan. Non-Employee Directors shall be eligible to receive Non-­Qualified Stock Options in the discretion of the Plan Administrator.  In addition, Non­-Qualified Stock Options may be granted to employees, officers, directors and consultants who are selected by the Plan
Administrator.

	
6.  
	
STOCK SUBJECT TO PLAN

The stock available for grant of Options under the Plan shall be shares of the Company's authorized but unissued, or reacquired, Common Stock. Subject to adjustment as provided herein, the maximum aggregate number of shares of the Company’s common stock that may be optioned and sold under the Plan is ten percent (10%) of the issued
and outstanding shares of the Company’s Common Stock, or such lesser number of shares as may be stated on the date this Plan is adopted by the Company’s Board of Directors.

The maximum number of shares for which an Option may be granted to any Optionee during any calendar year shall not exceed five percent (5%) of the issued and outstanding common shares of the Company.  In the event that any outstanding Option under the Plan for any reason expires or is terminated, the shares of Common Stock allocable
to the unexercised portion of the Option shall again be available for Options under the Plan as if no Option had been granted with regard to such shares.

 

 

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7.  
	
TERMS AND CONDITIONS OF OPTIONS

Options granted under the Plan shall be evidenced by agreements (which need not be identical) in such form and containing such provisions that are consistent with the Plan as the Plan Administrator shall from time to time approve. Such agreements may incorporate all or any of the terms hereof by reference and shall comply with and be subject
to the following terms and conditions:

	
(1)  
	
Number of Shares. Each Option agreement shall specify the number of shares subject to the Option.

	
(2)  
	
Option Price. The purchase price for the shares subject to any Option shall be determined by the Plan Administrator at the time of the grant, but shall not be less than 85% of Fair Market Value per share. Anything to the contrary notwithstanding, the purchase price for the shares subject to any Incentive Stock Option shall not be less than 100% of the
Fair Market Value of the shares of Common Stock of the Company on the date the Stock Option is granted. In the case of any Incentive Stock Option granted to an employee who owns stock possessing more than 10% of the total combined voting power of all classes of stock of the Company, or any of its parent or subsidiary corporations, the Option price shall not be less than 110% of the Fair Market Value per share of the Common Stock of the Company on the date the Option is granted.  For purposes of determining
the stock ownership of an employee, the attribution rules of Section 424(d) of the Code shall apply.

	
(3)  
	
Notice and Payment. Any exercisable portion of a Stock Option may be exercised only by: (a) delivery of a written notice to the Company prior to the time when such Stock Option becomes unexercisable herein, stating the number of shares bring purchased and complying with all applicable rules established by the Plan Administrator; (b) payment in full of
the exercise price of such Option by, as applicable, delivery of: (i) cash or check for an amount equal to the aggregate Stock Option exercise price for the number of shares being purchased, (ii) in the discretion of the Plan Administrator, upon such terms as the Plan Administrator shall approve, a copy of instructions to a broker directing such broker to sell the Common Stock for which such Option is exercised, and to remit to the Company the aggregate exercise price of such Stock Option (a “cashless exercise”),
or (iii) in the discretion of the Plan Administrator, upon such terms as the Plan Administrator shall approve, shares of the Company's Common Stock owned by the Optionee, duly endorsed for transfer to the Company, with a Fair Market Value on the date of delivery equal to the aggregate purchase price of the shares with respect to which such Stock Option or portion is thereby exercised (a "stock-for-stock exercise"); (c) payment of the amount of tax required to be withheld (if any) by the Company, or any parent
or subsidiary corporation as a result of the exercise of a Stock Option.  At the discretion of the Plan Administrator, upon such terms as the Plan Administrator shall approve, the Optionee may pay all or a portion of the tax withholding by: (i) cash or check payable to the Company, (ii) a cashless exercise, (iii) a stock-for-stock exercise, or (iv) a combination of one or more of the foregoing payment methods; and (d) delivery of a written notice to the Company requesting that the Company direct the
transfer agent to issue to the Optionee (or his designee) a certificate for the number of shares of Common Stock for which the Option was exercised or, in the case of a cashless exercise, for any shares that were not sold in the cashless exercise. Notwithstanding the foregoing, the Company, in its sole discretion, may extend and maintain, or arrange for the extension and maintenance of credit to any Optionee to finance the Optionee's purchase of shares pursuant to the exercise of any Stock Option, on such terms
as may be approved by the Plan Administrator, subject to applicable regulations of the Federal Reserve Board and any other laws or regulations in effect at the time such credit is extended.

 

 

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(4)  
	
Terms of Option. No Option shall be exercisable after the expiration of the earliest of: (a) ten years after the date the Option is granted, (b) three months after the date the Optionee's employment with the Company and its subsidiaries terminates, or a Non-Employee Director or Consultant ceases to provide services to the Company, if such termination or
cessation is for any reason other than Disability or death, (c) one year after the date the Optionee's employment with the Company, and its subsidiaries, terminates, or a Non­-Employee Director or Consultant ceases to provide services to the Company, if such termination or cessation is a result of death or Disability; provided, however, that the Option agreement for any Option may provide for shorter periods in each of the foregoing instances. In the case of an Incentive Stock Option granted to an employee
who owns stock possessing more than 10% of the total combined voting power of all classes of stock of the Company, or any of its parent or subsidiary corporations, the term set forth in (a) above shall not be more than five years after the date the Option is granted.

	
(5)  
	
Exercise of an Option. No Option shall be exercisable during the lifetime of an Optionee by any person other than the Optionee. Subject to the foregoing, the Plan Administrator shall have the power to set the time or times within which each Option shall vest or be exercisable and to accelerate the time or times of vesting and exercise; provided, however
each Option shall provide the right to exercise at the rate of at least 20% per year over five years from the date the Option is granted.  Unless otherwise provided by the Plan Administrator, each Option will not be subject to any vesting requirements. To the extent that an Optionee has the right to exercise an Option and purchase shares pursuant hereto, the Option may be exercised from time to time by written notice to the Company, stating the number of shares being purchased and accompanied by payment
in full of the exercise price for such shares.

	
(6)  
	
No Transfer of Option. No Option shall be transferable by an Optionee otherwise than by will or the laws of descent and distribution.

	
(7)  
	
Limit on Incentive Stock Option. The aggregate Fair Market Value (determined at the time the Option is granted) of the stock with respect to which an Incentive Stock Option is granted and exercisable for the first time by an Optionee during any calendar year (under all Incentive Stock Option plans of the Company and its subsidiaries) shall not exceed $100,000.  To
the extent the aggregate Fair Market Value (determined at the time the Stock Option is granted) of the Common Stock with respect to which Incentive Stock Options are exercisable for the first time by an Optionee during any calendar year (under all Incentive Stock Option plans of the Company and any parent or subsidiary corporations) exceeds $100,000, such Stock Options shall be treated as Non­-Qualified Stock Options.  The determination of which Stock Options shall be treated as Non-­Qualified
Stock Options shall be made by taking Stock Options into account in the Order in which they were granted.

 

 

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(8)  
	
Restriction on Issuance of Shares.  The issuance of Options and shares shall be subject to compliance with all of the applicable requirements of law with respect to the issuance and sale of securities, including, without limitation, any required qualification under state securities laws.  If an Optionee acquires shares of Common Stock
pursuant to the exercise of an Option, the Plan Administrator, in its sole discretion, may require as a condition of issuance of shares covered by the Option that the shares of Common Stock be subject to restrictions on transfer. The Company may place a legend on the share certificates reflecting the fact that they are subject to restrictions on transfer pursuant to the terms of this Section.  In addition, the Optionee may be required to execute a buy-sell agreement in favor of the Company or its designee
with respect to all or any of the shares so acquired. In such event, the terms of any such agreement shall apply to the optioned shares.

	
(9)  
	
Investment Representation. Any Optionee may be required, as a condition of issuance of shares covered by his or her Option, to represent that the shares to be acquired pursuant to exercise will be acquired for investment and without a view toward distribution thereof, and in such case, the Company may place a legend on the share certificate(s) evidencing
the fact that they were acquired for investment and cannot be sold or transferred unless registered under the Securities Act of 1933, as amended, or unless counsel for the Company is satisfied that the circumstances of the proposed transfer do not require such registration.

	
(10)  
	
Rights as a Shareholder or Employee.  An Optionee or transferee of an Option shall have no right as a stockholder of the Company with respect to any shares covered by any Option until the date of the issuance of a share certificate for such shares.  No adjustment shall be made for dividends (Ordinary or extraordinary, whether cash,
securities, or other property), or distributions or other rights for which the record date is prior to the date such share certificate is issued, except as provided in paragraph (13) below. Nothing in the Plan or in any Option agreement shall confer upon any employee any right to continue in the employ of the Company or any of its subsidiaries or interfere in any way with any right of the Company or any subsidiary to terminate the Optionee's employment at any time.

	
(11)  
	
No Fractional Shares. In no event shall the Company be required to issue fractional shares upon the exercise of an Option.

	
(12)  
	
Exercise in the Event of Death. In the event of the death of the Optionee, any Option or unexercised portion thereof granted to the Optionee, to the extent exercisable by him or her on the date of death, may be exercised by the Optionee's personal representatives, heirs, or legatees subject to the provisions of paragraph (4) above.

	
(13)  
	
Recapitalization or Reorganization of the Company.  Except as otherwise provided herein, appropriate and proportionate adjustments shall be made (1) in the number and class of shares subject to the Plan, (2) to the Option rights granted under the Plan, and (3) in the exercise price of such Option rights, in the event that the number of shares
of Common Stock of the Company are increased or decreased as a result of a stock dividend (but only on Common Stock), stock split, reverse stock split, recapitalization, reorganization, merger, consolidation, separation, or like change in the corporate or capital structure of the Company. In the event there shall be any other change in the number or kind of the outstanding shares of Common Stock of the Company, or any stock or other securities into which such common stock shall have been changed, or for which
it shall have been exchanged, whether by reason of a complete liquidation of the Company or a merger, reorganization, or consolidation with any other corporation in which the Company is not the surviving corporation, or the Company becomes a wholly-owned subsidiary of another corporation, then if the Plan Administrator shall, in its sole discretion, determine that such change equitably requires an adjustment to shares of Common Stock currently subject to Options under the Plan, or to prices or terms of outstanding
Options, such adjustment shall be made in accordance with such determination.

 

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To the extent that the foregoing adjustments relate to stock or securities of the Company, such adjustment shall be made by the Plan Administrator, the determination of which in that respect shall be final, binding, and conclusive. No right to purchase fractional shares shall result from any adjustment of Options pursuant to this Section.
In case of any such adjustment, the shares subject to the Option shall he rounded down to the nearest whole share. Notice of any adjustment shall be given by the Company to each Optionee whose Options shall have been so adjusted and such adjustment (whether or not notice is given) shall be effective and binding for all purposes of the Plan.

In the event of a complete liquidation of the Company or a merger, reorganization, or consolidation of the Company with any other corporation in which the Company is not the surviving corporation, or the Company becomes a wholly-owned subsidiary of another corporation, any unexercised Options granted under the Plan shall be deemed cancelled
unless the surviving corporation in any such merger, reorganization, or consolidation elects to assume the Options under the Plan or to issue substitute Options in place thereof; provided, however, that notwithstanding the foregoing, if such Options would be cancelled in accordance with the foregoing, the Optionee shall have the right exercisable during a ten-day period ending on the fifth day prior to such liquidation, merger, or consolidation to exercise such Option in whole or in part without regard to any
installment exercise provisions in the Option agreement.

 

 

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(14)  
	
Modification, Extension and Renewal of Options.  Subject to the terms and conditions and within the limitations of the Plan, the Plan Administrator may modify, extend or renew outstanding options granted under the Plan and accept the surrender of outstanding Options (to the extent not theretofore exercised).  The Plan Administrator
shall not, however, without the approval of the Board, modify any outstanding Incentive Stock Option in any manner that would cause the Option not to qualify as an Incentive Stock Option within the meaning of Section 422 of the Code. Notwithstanding the foregoing, no modification of an Option shall, without the consent of the Optionee, alter or impair any rights of the Optionee under the Option.

	
  
	
(15)   
	
Other Provisions. Each Option may contain such other terms, provisions, and conditions not inconsistent with the Plan as may be determined by the Plan Administrator.

	
8.  
	
TERMINATION OR AMENDMENT OF THE PLAN

The Board may at any time terminate or amend the Plan; provided that, without approval of the holders of a majority of the shares of Common Stock of the Company represented and voting at a duly held meeting at which a quorum is present or the written consent of a majority of the outstanding shares of Common Stock, there shall be (except
by operation of the provisions of sections (6) or (7)(13) above) no increase in the total number of shares covered by the Plan, no change in the class of persons eligible to receive options granted under the Plan, no reduction in the limits for determination of the minimum exercise price of Options granted under the Plan, and no extension of the limits for determination of the latest date upon which Options may be exercised; and provided further that, without the consent of the Optionee, no amendment may adversely
affect any then outstanding Option or any unexercised portion thereof.

	
9.  
	
INDEMNIFICATION

In addition to such other rights of indemnification as they may have as members of the Board Committee that administers the Plan, the members of the Plan Administrator shall be indemnified by the Company against reasonable expense, including attorney's fees, actually and necessarily incurred in connection with the defense of any action,
suit or proceeding, or in connection with any appeal therein to which they, or any of them, may be a party by reason of any action taken or failure to act under or in connection with the Plan or any Option granted thereunder, and against any and all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by the Company).  In addition, such members shall be indemnified by the Company for any amount paid by them in satisfaction of a judgment
in any action, suit, or proceeding, except in relation to matters as to which it shall have been adjudged that such member is liable for negligence or misconduct in the performance of his or her duties, provided however that within sixty (60) days after institution of any such action, suit, or proceeding, the member shall in writing offer the Company the opportunity, at its own expense, to handle and defend the same.

 

 

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10.  
	
EFFECTIVE DATE AND TERM OF THE PLAN

This Plan shall become effective on the date of adoption by the Company’s Board of Directors. Unless sooner terminated by the Board in its sole discretion, this Plan will expire five calendar years from the date of its adoption.

	
11.  
	
MISCELLANEOUS

Any dispute arising out of this Plan or any provision hereof, or of any agreement issued or executed under the Plan shall be resolved by the Plan Administrator, and the decision of the Plan Administrator shall be final and binding upon all parties.

IN WITNESS WHEREOF, the Company by its duly authorized officer, has caused this Plan to be executed as of the 24th day of March, 2010.

Cascade Wind Corp., Inc.

/s/ Steven Shum

	
By:
	
Steven Shum

	
Its:
	
President

 

9ex10_3.htm

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT is made this 22nd day of  March, 2010, by and between CASCADE WIND CORP., INC., a Nevada corporation (the "Company")
having its principal place of business at 1500 SW First Avenue, Suite 910, Portland, OR  97201 and CLAYTON WOOD  (the "Executive") residing at 7000 80th Avenue, SE, Mercer Island, WA.                                                                                                

W I T N E S S E T H:

WHEREAS the Executive has agreed to be employed by the Company on the terms and conditions set forth herein;

NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained, the parties hereto, intending to be legally bound hereby, do hereby agree as follows:

1.  Definitions

For purposes of this Agreement, the following words shall have the respective meanings set forth below:

1.1          "Annual Bonus" shall mean the bonus paid, if any, pursuant to Section 5.2 of this Agreement.

 

1.2           "Annual Compensation" shall mean the Executive's Base Salary and Annual Bonus during the Term of Employment.

1.3          "Base Salary" shall mean the annual base salary paid to the Executive pursuant to Section 5.1 of this Agreement.

1.4          "Benefits" shall mean the benefits described in Article 6 of this Agreement.

 

1.5           "Board" shall mean the Board of Directors of the Company.

1.6           "Business" shall mean the business being conducted by the Company.

 

 

 

 

1.7           "Cause" shall mean any one or more of the following, as determined solely by the Board in good faith: (a) the willful or knowing failure or refusal without Cure of the Executive substantially to perform
his duties hereunder or as directed by the Board; (b) the willful disobedience by the Executive of a material and lawful instruction of the Board; (c) the engaging by the Executive in:  (i) an act of fraud, (ii) an illegal or criminal act, (iii) a dishonest act materially injurious to the Company, monetarily or otherwise, or (iv) misconduct materially injurious to the Company, monetarily or otherwise, including but not limited to any action which holds the Executive or the Company in public disrepute;
(d) a breach by the Executive of any fiduciary duty to the Company; (e) malfeasant or  negligent conduct without Cure; (f) any violation by the Executive of any Federal or state securities law; or (g) a breach without Cure by the Executive of any of the provisions of this Agreement.

1.8           ACEO@ shall mean the Chief Executive Officer
of the Company.

1.9           AClosing@ shall mean a closing of the private
placement of securities of the Company pursuant to that certain private placement memorandum for the sale of a maximum of $3 million of the securities of the Company.

1.10           "Commencement Date" shall mean the first to occur of (x) the Initial Closing or (y) such date as shall be determined by the Company prior to the Initial Closing by written notice to the Executive.

1.11           "Cure" shall mean following the giving of written notice of Cause, in the reasonable opinion of the Board the Executive shall have cured the Cause in all material respects within thirty (30) days of said
notice having been given.

1.12           "Disability" shall mean the Executive's inability to render either (a) for a period of one (1) month or (b) in the aggregate of forty-five (45) days in any consecutive six month period, services hereunder
by reason of a disability, which disability is confirmed by the written medical opinion of an independent medical physician mutually acceptable to the Executive and the Company.  If the Executive and the Company cannot agree as to such an independent medical physician, each shall appoint one medical physician and those two physicians shall appoint a third physician who shall make such determination.  If the Executive shall be Disabled, shall thereafter return to work and shall thereafter become
Disabled, then such latter Disability shall be deemed a continuation of the former Disability (and not a new Disability) unless the Executive has returned to work on a full time basis and has substantially performed all of his employment duties for a period of six (6) continuous and consecutive weeks.

1.13           AInitial Closing@ shall mean the initial
Closing of the private placement of securities of the Company pursuant to that certain private placement memorandum for the sale of a maximum of $3 million of the securities of the Company.

 

 

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1.14           AIncentive Stock Option Agreement@ shall
mean that certain agreement between the Company and the Executive awarding the Executive Incentive Stock Options pursuant to the terms of the Stock Option Plan, and setting forth certain terms with respect to such options.

1.15           "Person" shall mean any individual, sole proprietorship, joint venture, partnership, limited liability company, corporation, association, cooperative, trust, estate, government (or any branch or agency
thereof), governmental, administrative or regulatory authority, or any other entity of any nature whatsoever.

1.16           ARestricted Period@shall have the meaning
ascribed to it in Section 11.2.

1.17           AStock@ shall mean stock of the Company.

1.18            AStock Option Plan@ shall mean the 2010
Stock Option Plan of the Company, as may be amended, modified or supplemented in accordance with the terms thereof.

1.19            ATermination Date"   means (a) in the case of a termination
for which a notice of termination is required, the date of actual receipt of such notice of termination or, if later, the date specified therein, as the case may be, and (b) in all other cases, the actual date on which the Executive's employment terminates during the Term of Employment.

1.20           "Term of Employment" has the meaning ascribed to it in Article 3.

1.21           ATerritory@ shall have the meaning ascribed
to it in Section 11.2.

2.           Employment.

The Company hereby employs the Executive as its President and Chief Operating Officer; and the Executive hereby accepts such employment upon the terms and conditions hereinafter set forth.

3.           Term.

3.1           Initial Term.  Subject to the provisions of Article 7 hereof, the Executive's employment hereunder shall commence on the Commencement Date and shall terminate on the first

(1st) anniversary of the Commencement Date, unless sooner terminated pursuant to the provisions of Article 8 of this Agreement or extended as hereinafter provided in Section 3.2 of this Agreement ("Term
of Employment").  If for any reason the Commencement Date shall not occur, this Agreement shall be and become null and void, and neither party shall have any further liability to the other hereunder.

 

 

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3.2           Renewal Term.  Upon the expiration of the aforesaid term, or any renewal thereof, this Agreement shall be renewed automatically for successive one (1) year terms unless the Company or the Executive
provides no less than two (2) months= notice to the other, prior to the expiration of any such term, of its decision not to renew this Agreement whereupon this Agreement shall terminate as of the last day of such term, unless this Agreement shall be sooner terminated during any such renewal term as provided in Article 8 of this Agreement.

4.           Positions, Responsibilities and Duties of Executive.

4.1           Positions and Duties. The Executive shall have the duties, authority and responsibility inherent to the position of President and Chief Operating Officer of a publicly traded corporation of the size, type
and nature of the Company. The Executive shall perform such duties hereunder and such additional duties or different duties as he shall from time to time be assigned by the Board, consistent with the general level and type of duties and responsibilities associated with the position of Chief Operating Officer. The Executive shall report directly to the Board.  The Executive agrees to devote substantially all of his business time, skill, labor and attention to the services required of the Executive under
this Agreement and shall perform such services in a manner consonant with the duties of such position.  The foregoing shall not be deemed to prevent the Executive from serving on corporate, charitable or civic boards or committees or acting as a fiduciary for any family member(s) or friend(s) provided that the Board determines, in its sole discretion but without unreasonably withholding approval, that any such activity does not substantially interfere or conflict with the performance of his duties hereunder.

 

4.2           Employment of CEO.  Although the Company currently does not have a CEO and does not contemplate employing a CEO at this time, the Board reserves the right to employ a CEO in the future.  In
the event that the Company shall employ a CEO, the Executive agrees that he shall report to the CEO in addition to the Board, and shall take direction from the CEO in addition to taking direction from the Board.  Furthermore, the Executive agrees that a CEO may also be given the title of President and in such event, the Executive=s title shall be Executive Vice President and  Chief Operating Officer.

4.3           Outside Businesses.  The Executive shall not engage in any business activities other than as an employee of the Company.  The Executive may invest his assets in such form or manner as
will not require time or services on his part in the operation of the affairs of the entities in which such investments are made, other than time or services which are minor and incidental.

 

4

 

5.           Compensation.

During the period that the Executive is employed hereunder, the Company shall pay (in the aggregate, the "Compensation") to the Executive for his services hereunder:

5.1           Base Salary.  A salary (the "Base Salary") at an initial annual rate of One Hundred Fifty Thousand ($150,000) Dollars, which Base
Salary shall be payable bi-weekly.

5.2           Annual Bonuses.  Annually, the performance of the Executive shall be reviewed by the Board and as a result thereof, he may be awarded a bonus for such year or his Base Salary may be increased (but
not decreased) as the Board shall, in its sole discretion, determine.

6.           Benefits.

During the period that the Executive is employed hereunder, the Company shall pay or provide the following (in the aggregate, the "Benefits"):

6.1           Vacations.  Permit the Executive a paid vacation of two (2) weeks for each twelve (12) month period of employment, which vacation time shall be taken at such times as are consistent with the Executive=s
responsibilities hereunder but in no event earlier than January 1, 2011.  Vacation time, if not utilized, may not be carried over from one twelve month period to the next.

6.2           Reimbursement of Expenses.  Subject to prevailing Company policy or such guidelines as may be established by the Board, pay directly or reimburse the Executive upon his submission of such expense
accounts and supporting documents as are reasonably required by the Company, for all reasonable and necessary business expenses incurred by the Executive as part of and in connection with the performance of his duties specified herein.

6.3           Health Insurance.    Provide the Executive (and his spouse where applicable) with the medical benefits as in effect on the date of this Agreement, or as modified from time to time by
the Company at its discretion, which the Company provides to its executive employees generally.  The Executive shall have the right, at his own expense, to add any dependents to the insurance coverage.

6.4           Stock Options.  Pursuant to the terms of a Incentive Stock Option Agreement being executed contemporaneously herewith between the Company and the Executive, and subject to the terms thereof, the
Executive is being granted Incentive Stock Options pursuant to the Stock Option Plan for 460,000 shares of Stock.

6.5           Relocation Expenses.  The Executive will establish his principal residence in the Portland, Oregon area within two (2) weeks after the Commencement Date.  The Company will pay or reimburse
the Executive for all expenses reasonably incurred in connection with the relocation of his residence and family to the Portland, Oregon area, including, for example, the cost of packing and moving household goods and traveling expenses in an amount not to exceed $10,000, upon presentation of receipts therefor.

 

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7.           Background Investigation.  The Executive acknowledges that the Company contemplates a private placement of its securities and as a result thereof, full disclosure of the background of the Executive,
as President of the Company, will be required.  Accordingly, the Executive agrees to cooperate with a company to be retained by the Board to conduct a background due diligence investigation of the Executive and this Agreement is subject to a satisfactory due diligence investigation.  In the event that such investigation shall reveal information which, in the opinion of the Company, would have any adverse effect on the Company, its ability to raise money in a public or private offering, or
on the Executive's ability to perform his obligations hereunder,

the Company shall have the right to terminate this Agreement by written notice thereof to the Executive prior to the Commencement Date, upon which event this Agreement shall be null and void, and neither party shall have any further liability to the other hereunder.  The Executive represents that he has no knowledge of any matter
which would be disclosed by such investigation which would have any adverse effect on the Company, its ability to raise money in a public or private offering, or on the Executive's ability to perform his obligations hereunder.

8.           Termination of Employment.

The employment of the Executive by the Company commence on the Commencement Date and shall terminate (the "Termination Date") upon the occurrence of any of the following:

8.1            End of Term.  The end of the term of this Agreement, or any renewal thereof, as provided in Article 3 hereof;

8.2           Death.  The death of the Executive;

8.3           Disability.  The Disability of the Executive;

8.4           Cause. The giving of notice by the Company to the Executive of termination for Cause; or

8.5           Without Cause.  The giving of notice by the Company to the Employee of termination for any reason whatsoever other than Cause; or

8.6           Resignation.  The resignation of the Executive upon no less than ninety (90) days prior notice.

 

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9.           Effect of Termination.

In the event of the termination of the Executive=s employment for any of the reasons set forth in Article 8 hereof, all Annual Compensation and Benefits payable to the Executive shall terminate as of the Termination Date and the Executive, his estate or his
legal representative, as the case may be, shall only be entitled to:

	
  
	
(a)
	
Any Base Salary accrued or any Annual Bonus awarded but not yet paid as of the Termination Date;

	
  
	
(b)
	
Reimbursement for all expenses incurred, but not yet paid prior to the Termination Date; and

	
  
	
(c)
	
Any other compensation and/or benefits as may be provided in accordance with the terms and provisions of any applicable plans and programs of the Company; and

	
  
	
(d)
	
If, and only if, the termination is pursuant to Section 8.5 hereof, a severance payment equal to three (3) months=s Base Salary payable in equal bi-weekly installments on the Company's regular salary payment dates, provided that the Executive executes, and does not revoke, a General Release of all claims relating to his employment and
termination of employment from employment in a form provided by the Company.  The Executive understands that should he fail or refuse to execute the General Release provided by the Company, or revoke such General Release, he shall not be entitled to any severance payments under this section.

10.           Confidentiality of Information and Duty of Nondisclosure.

10.1           Acknowledgment by Executive.  The Executive acknowledges and agrees that his employment by the Company under this Agreement necessarily involves his understanding of and access to certain trade
secrets and confidential information pertaining to the Business as well as relationships with customers and suppliers of the Business.

10.2           Confidentiality.  Accordingly, the Executive agrees that at all times during the term of this Agreement and thereafter, he will not, directly or indirectly, without the express authority of the
Board unless directed by applicable legal authority having jurisdiction over the Executive, disclose to or use for the benefit of any Person, or himself, any files, trade secrets, proprietary information or other Confidential Information concerning the Business.  Further, the Executive agrees that he will not, directly or indirectly, remove or retain, without the express prior written consent of the Board, any figures, calculations, letters, papers, records, documents, electronic media instruments,
drawings, designs, programs, or any copies thereof, or any information or instruments derived therefrom, or any other similar documents or information of any type or description, however such information might be obtained or recorded and on whatever medium such information may be contained, arising out of or in any way relating to the Business obtained as a result of or in connection with his employment, heretofore or hereafter, by the Company.  The Executive acknowledges that all of the foregoing constitutes
proprietary information, which is the exclusive property of the Company.  As used in this Section 10.2, AConfidential Information@ shall mean any information relating to this Agreement, the business or affairs of the Company or the Business, and information relating to financial statements, customer identities, potential customers, employees,
suppliers, servicing methods, equipment, programs, strategies and information, analyses, profit margins or other proprietary information used by the Company in connection with the Business.

 

 

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10.3           Limitations on Obligations.  From and after the Termination Date, the restrictions set forth in this Article shall not apply to such information which is then in the public domain, if the Executive
was not responsible, directly or indirectly, for permitting such information to enter the public domain without the consent of the Company.

11.           Covenant Not to Compete.

11.1           Consideration.  This covenant between the Executive and the Company is being executed and delivered by the parties in consideration of the covenants of the Company and the Executive contained
in this Agreement.

11.2           Non-Compete.  The Executive hereby agrees that during the Term of Employment and for a period commencing on the termination of his employment with the Company for any reason whatsoever, with or
without Cause, voluntarily or involuntarily, and ending two (2) years after the date of such termination (the ARestricted Period@), except on behalf of the Company, he will not, directly or indirectly, as agent, employee, consultant, representative, stockholder, manager, member, partner
or in any other capacity, own (other than through the passive ownership of less than one percent (1%) of the publicly traded shares of any Person), operate, manage, control, engage in, invest in (other than through the passive ownership of less than one percent (1%) of the publicly traded shares of any Person) or participate in any manner in, act as a consultant or advisor to, render services for (alone or in association with any Person), or otherwise assist any Person that engages in or owns, invests in, operates,
manages or controls any venture or enterprise that directly or indirectly engages or proposes to engage in any business competitive in any material respects with any portion of the Business anywhere in the United States (the ATerritory@).

11.3           Non-Solicitation.  Without limiting the generality of the provisions of Section 11.2, the Executive hereby agrees that during the Restricted Period, he will not, except on behalf of the Company,
directly or indirectly, solicit, or participate as agent, employee, consultant, representative, stockholder, manager, partner or in any other capacity in any business which solicits business from any Person which is or was a customer or supplier of the Business at any time during the three (3)-year period preceding the date of such solicitation, or from any successor in interest to any such Person for the purpose of securing business or contracts related to any portion of the Business.

 

 

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11.4           Interference with Relationships.    .

11.4.1           During the Restricted Period, the Executive shall not, directly or indirectly, as agent, employee, consultant, distributor, representative, stockholder, manager, member, partner or in any other capacity, request, directly or indirectly, that any suppliers, customers
or clients of the Company, or other Persons sharing a business relationship with the Company curtail or cancel their business with the Company, or in any other way interfere with any such business relationships with the Company, or otherwise take action which might be to the material disadvantage of the Company.

11.4.2           During the Restricted Period, the Executive shall not, without the prior written consent of the Company, except on behalf of the Company, directly or indirectly, as agent, employee, consultant, distributor, representative, stockholder, manager, member, partner or
in any other capacity, employ or engage, or recruit or solicit for employment or engagement, any person (i) who is employed or engaged by the Company or any of its affiliates, or (ii) who was employed or engaged by the Company within six (6) months of such contact, or otherwise seek to influence or alter any such person=s relationship with the Company.

11.5           Blue-Pencil.  If any court of competent jurisdiction shall at any time deem the term or any particular restrictive covenant contained in this Article 11 too lengthy or the Territory too extensive,
the other provisions of this Article 11 shall nevertheless stand, and the Restricted Period and/or the Territory shall be reduced to such duration or size of such court shall determine to be permissible.

12.           Certain Remedies.

12.1           Accounting.  The Executive agrees that upon a breach of any of the covenants set forth in Article 10 or 11, the Company shall be entitled to an accounting and payment by the Executive of all profits
realized by him as a result of any such violation, in addition to the injunctive relief set forth in Section 12.2.

12.2           Injunctive Relief.  The Executive acknowledges and agrees that the covenants set forth in Articles 10 and 11 are reasonable and necessary for the protection of the Company=s
business interests, that irreparable injury will result to the Company if the Executive breaches any of the terms of Article 10 or 11 and that in the event of any actual or threatened breach by the Executive of any of the provisions contained in Article 10 or 11, the Company will have no adequate remedy at law.  The Executive accordingly agrees that in the event of any actual or threatened breach by him of any of the provisions contained in Article 10 or 11, the Company shall be entitled to injunctive
and other equitable relief, without the necessity of showing actual monetary damages and without posting any bond or other security, in addition to pursuing any other remedies available to it for such breach or threatened breach, including the recovery of any damages.

 

 

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12.3           Independent Covenants.  The provisions of Articles 10 and 11 shall be read and construed and shall have effect as separate, severable and independent provisions or restrictions, and shall be enforceable
accordingly.  The existence of any claim or cause of action which the Executive may have against the Company shall not constitute a defense or bar to the enforcement of any of the covenants contained in Articles 10 and 11.

12.4           Costs of Enforcement.  In addition thereto, if the Company must resort to litigation to enforce any of the covenants contained in Article 10 or 11, the Company shall be entitled to recover from
the Executive all of its costs of enforcement, including reasonable attorneys' fees.

12.5           Extension of Covenant.    If the Company must resort to litigation to enforce any of the covenants contained in Article 11 which has a fixed term, then such term shall be extended for
a period of time equal to the period of such breach, beginning on the date of a final court order (without further right of appeal) acknowledging the validity of such covenant or, if later, the last day of the original fixed term of such covenant.

13.           Survival of Obligations.  Notwithstanding anything contained in this Agreement to the contrary, the obligations of the Executive under Articles 10  and 11, and the rights and remedies
of the Company under Article 12 shall survive the termination of the Executive's employment hereunder for any reason whatsoever.

14.           Non-Disparagement.  Executive will not, at any time, during or after this Agreement, directly or indirectly, publish or communicate disparaging or derogatory statements or opinions in any way about
the Company or its affiliates, including but not limited to disparaging or derogatory statements or opinions about the Company=s management, products or services, to any third party.  It shall not be a breach of this section for Executive to testify truthfully in any judicial or administrative proceeding or to make statements or allegations in legal filings based upon the Executive=s
reasonable belief and are not made in bad faith.  The Company will not, at any time, during or after this Agreement, directly or indirectly, publish or communicate disparaging or derogatory statements or opinions about Executive to any third party unrelated to the Company.  It shall not be a breach of this section for the Company, or its employees to testify truthfully in any judicial or administrative proceeding or to make statements or allegations in legal or government filings that are
based on the Company=s reasonable belief and are not made in bad faith.

 

 

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15.           Executive Representations.

The Executive represents and warrants to the Company, knowing and intending that it shall rely thereon, as follows:

15.1           No Violations.  The execution and delivery of this Agreement by the Executive, and the performance by the Executive of his obligations hereunder, does not violate any other agreement or contract
to which the Executive is a party or by which he may be bound.

15.2           Authority.  The Executive has the power and authority to enter into this Agreement and this Agreement constitutes the valid, legal and binding obligation of the Executive, enforceable in accordance
with its terms.

15.3           No Prior Obligations.  Executive is under no obligation to any former employer or any other person which is in any way inconsistent with, or which imposes any restriction upon, Executive's acceptance
of employment hereunder with the Company, the employment of Executive by the Company, or Executive's undertakings under this Agreement.

15.4          Counsel.  The Executive has reviewed this Agreement with legal counsel of his choice.

 

16.  Successors.

16.1           The Executive.  This Agreement is personal to the Executive and, without the prior express written consent of the Company, shall not be assignable by the Executive, except that the Executive's
rights to receive any compensation or benefits under this Agreement may be transferred or disposed of pursuant to testamentary disposition, intestate succession or pursuant to a domestic relations order.  This Agreement shall inure to the benefit of and be enforceable by the Executive's heirs, beneficiaries and/or legal representatives.

16.2           The Company.  This Agreement shall inure to the benefit of and be binding upon the Company, and its affiliates, successors and assigns.

 

17.  Miscellaneous.

17.1           Applicable Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada, applied without reference to principles of conflict of laws.

 

11

 

 

17.2           Amendments.  This Agreement may not be amended or modified otherwise than by a written agreement executed by the parties hereto or their respective successors and legal representatives.

17.3           Notices.  All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given if and when (a) delivered personally, (b) transmitted by prepaid telegram,
telex or facsimile except that any notice, request, demand, instruction, consent or other communication transmitted in the manner set forth in this subsection (b) shall not be deemed to have been duly given unless and until it is actually received by the intended recipient, (c) mailed by first class certified mail, return receipt requested, postage prepaid, or (d) sent by a nationally recognized express courier service, postage or delivery charges prepaid, for overnight delivery, to the parties addressed as follows:

If to the Executive:

with a copy to:

If to the Company:  at its then principal place of business

with a copy to:      William D. Lipkind, Esq.

                                 Lampf, Lipkind, Prupis & Petigrow, P.A.

                                 80 Main Street

                                 West Orange, New Jersey 07052-5482

or to such other address as any party hereto shall have furnished to the others in writing in accordance herewith.  Notices and communications shall be effective when actually received by the addressee.

17.4           Withholding.  The Company shall withhold from any amounts payable under this Agreement such federal, state or local income taxes as shall be required to be withheld pursuant to any applicable
law or regulation and all benefit costs payable by the Company's similarly situated salaried employees.

17.5           Severability.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

17.6           Captions.  The captions of this Agreement are not part of the provisions hereof and shall have no force or effect.

 

 

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17.7          Entire Agreement.  This Agreement contains the entire agreement between the parties concerning the subject matter hereof and supersedes all prior agreements, understandings, discussions, negotiations
and undertakings, whether written or oral, between the parties with respect thereto.

17.8           Survivorship.  The respective rights and obligations of the parties hereunder shall survive any termination of this Agreement and the Executive's Term of Employment hereunder, to the extent necessary
to the intended provision of such rights and the intended performance of such obligations.

17.9           Validity.  The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall
remain in full force and effect.

17.10           Headings.  The headings in this Agreement are for the convenience of reference only and shall not be deemed to define, limit, or describe the scope and intent of this Agreement, or any article
or section thereof, or to alter or affect the interpretation of any provision thereof.

IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first above written.

CASCADE WIND CORP., INC.

By: /s/ Steven Shum

 

/s/ Clayton Wood

CLAYTON WOOD, Executive

 

 

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