Document:

Exhibit 4.7

 

THIS WARRANT AND THE SHARES OF COMMON STOCK PURCHASABLE HEREUNDER HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.  SUCH WARRANTS AND SHARES MAY NOT BE SOLD, OFFERED FOR SALE,
TRANSFERRED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN
EFFECT WITH RESPECT TO SUCH SECURITIES UNDER SAID ACT AND ANY APPLICABLE STATE
SECURITIES LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH
REGISTRATION IS NOT REQUIRED.

 

WARRANT

 

TO PURCHASE SHARES OF COMMON STOCK OF

SUNSET BRANDS, INC.

 

Dated as of
                          
    , 2004

 

HOLDER:

 

NUMBER OF SHARES:

 

THIS CERTIFIES THAT, for good and valuable consideration, the above
referenced holder (“Holder”), or its registered assigns, is entitled to
subscribe for and purchase from SUNSET BRANDS, INC., a Nevada corporation (the
“Company”), at any time commencing on the date of this Warrant (the “Warrant”)
and ending at the close of business five (5) years from the effective date of
the Registration Statement (as defined below), the number of fully paid and
nonassessable shares of the Common Stock of the Company set forth above at an
exercise price of [insert
applicable exercise price – either $1.08, $1.20 or $1.32] per
share (the “Warrant Exercise Price”), subject to the adjustment
provisions of Sections 5, 6 and 11 of this Warrant.

 

This Warrant is one of many issued as part of a private placement by
the Company of Units pursuant to the terms of a Confidential Terms Sheet, dated
on or about August 6, 2004 (together with any amendments or supplements
thereto, including the Supplement dated August 23, 2004, the “Term Sheet”).  The shares of Common Stock which may be
acquired upon exercise of this Warrant are referred to herein as the “Warrant
Shares.” As used herein, the term “Holder” includes any party who
acquires all or a part of this Warrant as a permitted transferee of Holder; the
term “Common Stock” means and includes the Company’s presently
authorized Common Stock, $0.0001 par value per share; and the term “Registration
Statement” shall mean that certain registration statement filed by the
Company (or any successor thereto) pursuant to the requirements of Section 13
of the Subscription Supplement accompanying the Term Sheet and governing the
sale of Units described in the Term Sheet.

 

This Warrant is subject to the following provisions, terms and
conditions:

 

1.                                       Exercise;
Transferability; Vesting.

 

(a)                                  The
rights represented by this Warrant may be exercised by the Holder hereof, in
whole or in part (but not as to any fractional shares of Common Stock), by
written notice of exercise (in the form attached hereto) delivered to the
Company at the principal office of the Company at any time after the original
issue date of this Warrant and prior to the expiration of this Warrant and
accompanied or preceded by the surrender of this Warrant along with payment of
the Warrant Exercise Price for such shares (i) in cash, by check or by wire
transfer of federal funds, (ii) only to the extent permitted by the Company, in
its sole and absolute discretion, on a cashless basis in exchange for other
securities of the Company, or (iii) by a combination of the methods specified
in clauses (a) and (b).  Notwithstanding
the foregoing, the Company, in its sole discretion, may extend and maintain, or
arrange for the extension and maintenance of; credit to the Holder to finance
payment of the purchase price on such terms as may be approved by the Board of
Directors of the Company in accordance with applicable law.

 

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(b)                                 This
Warrant may not be sold, transferred, assigned, hypothecated or divided except
as provided in Section 9 hereof.

 

2.                                       Exchange and
Replacement.  Subject to
Sections 1 and 9 hereof, this Warrant is exchangeable upon the surrender hereof
by the Holder to the Company at its office for new Warrants of like tenor and
date representing in the aggregate the right to purchase the number of Warrant
Shares purchasable hereunder, each of such new Warrants to represent the right
to purchase such number of Warrant Shares (not to exceed the aggregate total
number purchasable hereunder) as shall be designated by the Holder at the time
of such surrender. Upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction, or mutilation of this
Warrant, and, in case of loss, theft or destruction, of indemnity or security
reasonably satisfactory to it, and upon surrender and cancellation of this
Warrant, if mutilated, the Company will make and deliver a new Warrant of like
tenor, in lieu of this Warrant; provided, however, that if Holder shall be such
Holder, an agreement of indemnity by such Holder in customary form shall be
sufficient for all purposes of this Section 2. This Warrant shall be promptly
canceled by the Company upon the surrender hereof in connection with any
exchange or replacement. The Company shall pay all expenses, taxes (other than
stock transfer taxes), and other charges payable in connection with the
preparation, execution, and delivery of Warrants pursuant to this Section 2.

 

3.                                       Issuance of
the Warrant Shares.

 

(a)                                  The
Company agrees that the Warrant Shares shall be and will be deemed to be issued
to the Holder as of the close of business on the date on which this Warrant
shall have been surrendered and the payment made for such Warrant Shares as
provided herein. Subject to the provisions of the next section, certificates
for the Warrant Shares so purchased shall be delivered to the Holder within a
reasonable time after the rights represented by this Warrant shall have been so
exercised, and, unless this Warrant has expired, a new Warrant representing the
right to purchase the number of Warrant Shares, if any, with respect to which
this Warrant shall not then have been exercised shall also be delivered to the
Holder within such time.

 

(b)                                 Notwithstanding
the foregoing, however, the Company shall not be required to deliver any
certificate for Warrant Shares upon exercise of this Warrant except in
accordance with exemptions from the applicable securities registration
requirements or registrations under applicable securities laws. Nothing herein,
however, shall obligate the Company to effect registrations under federal or
state securities laws. If registrations are not in effect and if exemptions are
not available when the Holder seeks to exercise the Warrant, the Warrant
exercise period will be extended, if need be, to prevent the Warrant from
expiring, until such time as either registrations become effective or
exemptions are available, and the Warrant shall then remain exercisable for a
period of at least 90 calendar days from the date the Company delivers to the
Holder written notice of the availability of any registrations or exemptions.
The Holder agrees to execute such documents and make such representations,
warranties and agreements as maybe required solely to comply with the
exemptions relied upon by the Company, or any registrations made, for the
issuance of the Warrant Shares.

 

4.                                       Covenants of
the Company.  The Company
covenants and agrees that all Warrant Shares will, upon issuance, be duly
authorized and issued, fully paid, nonassessable, and free from all taxes,
liens, and charges with respect to the issue thereof. The Company further
covenants and agrees that during the period within which the rights represented
by this Warrant may be exercised, the Company will at all times have authorized
and reserved for the purpose of issue or transfer upon exercise of the purchase
rights evidenced by this Warrant a sufficient number of shares of Common Stock
to provide for the exercise of the rights represented by this Warrant.

 

5.                                       Restrictions on Issuance and Transfer of Shares.  Shares of Common Stock acquired
pursuant to the exercise of this Warrant which are not registered under the
Securities Act of 1933, as amended (the “Act”), shall be subject to
restrictions on transfer and as required by applicable state and/or federal
securities laws.  Any unregistered
shares acquired by exercise of this Warrant shall bear a legend

 

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referring to the restrictions and limitations of this Section.  The Company may impose stop transfer
instructions to implement such restrictions and limitations.

 

6.                                       Anti-dilution
Adjustments.  The number of
Warrant Shares purchasable upon the exercise of this Warrant and the Warrant
Exercise Price shall be subject to adjustment as follows:

 

(a)                                  In
case the Company shall (i) pay a dividend or make a distribution on its
Common Stock in shares of its capital stock or other securities, (ii) subdivide
its outstanding shares of Common Stock into a greater number of shares,
(iii) combine its outstanding Common Stock into a smaller number of shares
or (iv) issue, by reclassification of its Common Stock, shares of its
capital stock or other securities of the Company (including any such
reclassification in connection with a consolidation or merger in which the
Company is the continuing corporation), the number of Warrant Shares
purchasable upon exercise of this Warrant immediately prior thereto shall be
adjusted so that the Holder shall be entitled to receive the kind and number of
Warrant Shares, shares of its capital stock and other securities of the Company
which such holder would have owned or would have been entitled to receive
immediately after the happening of any of the events described above, had the
Warrant been exercised immediately prior to the happening of such event or any
record date with respect thereto.  Any
adjustment made pursuant to this subsection 6(a) shall become effective immediately
after the effective date of such event.

 

(b)                                 In
case the Company shall issue rights, options, warrants or convertible
securities to holders of its Common Stock, without any charge to such holders,
containing the right to subscribe for or purchase Common Stock, the number of
Warrant Shares thereafter purchasable upon the exercise of this Warrant shall
be determined by multiplying the number of Warrant shares theretofore
purchasable upon exercise of this Warrant by a fraction, of which the numerator
shall be the number of shares of Common Stock outstanding immediately prior to
the issuance of such rights, options, warrants or convertible securities plus
the number of additional shares of Common Stock offered for subscription or
purchase, and of which the denominator shall be the number of shares of Common
Stock outstanding immediately prior to the issuance of such rights, options,
warrants or convertible securities. 
Such adjustment shall be made whenever such rights, options, warrants or
convertible securities are issued, and shall become effective immediately upon
issuance of such rights, options, warrants or convertible securities.   In the event of such adjustment,
corresponding adjustments shall be made to the Warrant Exercise Price.

 

(c)                                  In
case the Company shall distribute to holders of its Common Stock evidences of
its indebtedness or assets (excluding cash dividends or distributions out of
current earnings made in the ordinary course of business consistent with past
practices), then in each case the number of Warrant shares thereafter
purchasable upon the exercise of this Warrant shall be determined by
multiplying the number of Warrant Shares theretofore purchasable upon exercise
of this Warrant by a fraction, of which the numerator shall be the then Market
Price (as defined below) on the date of such distribution, and of which the
denominator shall be such Market Price on such date minus the then fair value
(determined as provided in subsection 6(e) below) of the portion of the assets
or evidences of indebtedness so distributed applicable to one share of Common
Stock.  Such adjustment shall be made
whenever any such distribution is made and shall become effective on the date
of distribution.  In the event of any
such adjustment, the number of shares of Common Stock subject to the Warrant
shall also be adjusted and shall be that number determined by multiplying the
number of shares of Common Stock issuable upon exercise before the adjustment
by a fraction, the numerator of which shall be the Warrant Exercise Price in
effect immediately before the adjustment and the denominator of which shall be
the Warrant Exercise Price as so adjusted.

 

(d)                                 Whenever
the number of Warrant Shares purchasable upon the exercise of this Warrant is
adjusted as provided in this Section 6, the Warrant Exercise Price payable upon
exercise of the Warrant shall be adjusted by multiplying such Warrant Exercise
Price immediately prior to such adjustment by a fraction, the numerator of
which shall be the number of Warrant Shares purchasable upon the exercise of
this Warrant immediately prior to such adjustment, and the denominator of which
shall be the number of Warrant Shares 
purchasable immediately thereafter.

 

(e)                                  To
the extent not covered by subsections 6(b) or (c) hereof:

 

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in case the Company shall sell or issue Common Stock or rights,
options, warrants or convertible securities containing the right to subscribe
for, purchase or exchange into shares of Common Stock at a price per share
(determined, in the case of such rights, options, warrants or convertible
securities, by dividing (i) the total amount received or receivable by the
Company in consideration of the sale or issuance of such rights, options,
warrants or convertible securities, plus the total consideration payable to the
Company upon exercise, conversion or exchange thereof, by (ii) the total number
of shares covered by such rights, options, warrants or convertible securities)
lower than the then the current Market Price (as defined below) in effect
immediately prior to such sale or issuance and lower than the then current
Warrant Exercise Price, then the Warrant Exercise Price shall be reduced to a
price (calculated to the nearest cent) determined by dividing (I) an amount
equal to the sum of (A) the number of shares of Common Stock outstanding
immediately prior to such sale or issuance multiplied by the then current
Warrant Exercise Price, plus (B) the consideration received or receivable by
the Company upon such sale or issuance, by (II) the total number of shares of
Common Stock outstanding immediately after such sale or issuance.  The number of Warrant Shares purchasable
upon the exercise of a Warrant shall thereafter be that number determined by
multiplying the number of Warrant Shares purchasable upon exercise immediately
prior to such adjustment by a fraction, of which the numerator shall be the
Warrant Exercise Price in effect immediately prior to such adjustment and the
denominator shall be the Warrant Exercise Price as so adjusted; and

 

in case the Company shall sell or issue Common Stock or rights,
options, warrants or convertible securities containing the right to subscribe
for, purchase or exchange into shares of Common Stock at a price per share
(determined, in the case of such rights, options, warrants or convertible
securities, by dividing (i) the total amount received or receivable by the
Company in consideration of the sale or issuance of such rights, options,
warrants or convertible securities, plus the total consideration payable to the
Company upon exercise, conversion or exchange thereof, by (ii) the total number
of shares covered by such rights, options, warrants or convertible securities)
higher than the Warrant Exercise Price then in effect but lower than the then
the current Market Price in effect immediately prior to the earlier of the date
of such sale or issuance or the first public announcement of such sale or
issuance, then the Warrant Exercise Price shall be reduced to a price
(calculated to the nearest cent) determined by multiplying the Warrant Exercise
Price then in effect by a fraction, the numerator of which equals (I) the sum
of (A) the number of shares of Common Stock outstanding immediately prior to
such sale or issuance multiplied by the then current Market Price, plus (B) the
consideration received or receivable by the Company upon such sale or issuance,
divided by (II) the total number of shares of Common Stock outstanding
immediately after such sale or issuance, and the denominator of which equals
the current Market Price in effect immediately prior to the earlier of such
sale or issuance or the first public announcement of such sale or
issuance.  The number of Warrant Shares
purchasable upon the exercise of a Warrant shall thereafter be that number
determined by multiplying the number of Warrant Shares purchasable upon
exercise immediately prior to such adjustment by a fraction, of which the
numerator shall be the Warrant Exercise Price in effect immediately prior to
such adjustment and the denominator shall be the Warrant Exercise Price as so
adjusted.

 

For the purposes of such adjustments, the Common Stock which the
holders of any such rights, options, warrants or convertible securities shall
be entitled to subscribe for, purchase or exchange into shall be deemed issued
and outstanding as of the date of such sale or issuance and the consideration
received by the Company therefor shall be deemed to be the consideration
received by the Company for such rights, options, warrants or

 

4

 

convertible securities, plus the consideration or premiums stated in
such rights, options, warrants or convertible securities to be payable for the
Common Stock covered thereby.  In case
the Company shall sell or issue Common Stock or rights, options, warrants or
convertible securities containing the right to subscribe for, purchase or
exchange into Common Stock for a consideration consisting, in whole or in part,
of property other than cash or its equivalent, then, in determining the “price
per share” of Common Stock and the “consideration received by the Company” for
purposes of the first sentence of this subsection 6.1(e), the Board of
Directors shall determine the fair value of said property, and such determination,
if based upon the Board of Directors, good faith business judgment, shall be
binding upon the Warrantholders.  In
determining the “price per share” of Common Stock, any underwriting discounts
or commissions paid to brokers, dealers or other selling agents shall not be
deducted from the price received by the Company for sales of securities
registered under the Act or issued in a private placement.

 

(f)                                    For
the purpose of this Section 6, the term “Common Stock” shall mean (i) the class
of stock designated as the Common Stock of the Company at the date of this
Agreement or (ii) any other class of stock resulting from successive changes or
reclassifications of such Common Stock consisting solely of changes in par
value, or from par value to no par value, or from no par value to par
value.  In the event that at any time,
as a result of an adjustment made pursuant to this Section 6, a Warrantholder
shall become entitled to purchase any securities of the Company other than
Common Stock, (i) if the Warrantholder’s right to purchase is on any other
basis than that available to all holders of the Company’s Common Stock, the
Company shall obtain an opinion of a reputable investment banking firm valuing
such other securities and (ii) thereafter the number of such other
securities so purchasable upon exercise of a Warrant and the Warrant Exercise
Price of such securities shall be subject to adjustment from time to time in a
manner and on terms as nearly equivalent as practicable to the provisions with
respect to the Common Stock contained in this Section 6.

 

(g)                                 Upon
the expiration of any rights, options, warrants or conversion privileges, if
such shall not have been exercised, the number of Warrant Shares purchasable
upon exercise of a Warrant and the Warrant Exercise Price, to the extent a
Warrant has not then been exercised, shall, upon such expiration, be readjusted
and shall thereafter be such number and such price as they would have been had
they been originally adjusted (or had the original adjustment not been
required, as the case may be) on the basis of (A) the fact that the only shares
of Common Stock issued in respect of such rights, options, warrants or
conversion privileges were the shares of Common Stock, if any, actually issued
or sold upon the exercise of such rights, options, warrants or conversion
privileges, and (B) the fact that such shares of Common Stock, if any, were
issued or sold for the consideration actually received by the Company upon such
exercise plus the consideration, if any, actually received by the Company for
the issuance, sale or grant of all such rights, options, warrants or conversion
privileges whether or not exercised; provided, however, that no such
readjustment shall have the effect of decreasing the numbers of Warrant Shares
purchasable upon exercise of a Warrant or increasing the Warrant Exercise Price
by an amount in excess of the amount of the adjustment made in respect of the
issuance, sale or grant of such rights, options, warrants or conversion
privileges.

 

(h)                                 Upon
any adjustment of the Warrant Exercise Price and the number of Warrant Shares
subject to this Warrant, then and in each such case, the Company shall give
written notice thereof, by first-class mail, postage prepaid, addressed to the
Holder as shown on the books of the Company, which notice shall state the
Warrant Exercise Price resulting from such adjustment and the increase or
decrease, if any, in the number of shares of Common Stock purchasable at such
price upon the exercise of this Warrant, setting forth in reasonable detail the
method of calculation and the facts upon which such calculation is based.

 

7.                                       Merger,
Reorganization or Consolidation. 
In any case in which a transaction would result in a complete
liquidation of the Company or a merger, reorganization, or consolidation of the
Company with any other unrelated corporation or other entity in which the
Company is not the surviving corporation or the Company becomes a wholly-owned
subsidiary of another unrelated corporation or other entity (all such transactions
being referred to herein as a “Reorganization”), the surviving corporation or
other entity shall be required to assume the Warrant or to issue substitute
warrants in place thereof which substitute warrants shall provide for terms at
least as favorable to the Warrantholders as contained in this Warrant and shall
provide the Warrantholder the right to acquire the kind and amount of shares
and other

 

5

 

securities and property which the Warrantholder would have owned or
been entitled to receive had the Warrants been exercised immediately prior to
such Reorganization.  It is expected that promptly following the
closing of the Offering of Units contemplated by the Term Sheet, the Company
will merge (the “Merger”) with a subsidiary of Cascade Sled Dog
Adverntures, Inc.., a public reporting company whose stock trades on the OTC
Bulletin Board (the “Shell”) and, as a result, this Warrant will convert
into the right to purchase shares of Common Stock of the Shell.

 

8.                                       No Voting
Rights.  This Warrant shall
not entitle the Holder to any voting rights or other rights as a stockholder of
the Company.

 

9.                                       Notice of
Transfer of Warrant or Resale of the Warrant Shares.

 

(a)                                  The
Holder, by acceptance hereof, agrees to give written notice to the Company
before transferring this Warrant or transferring any Warrant Shares of such
Holder’s intention to do so, describing briefly the manner of any proposed
transfer. Promptly upon receiving such written notice, the Company shall
present copies thereof to the Company’s counsel and to counsel to the original
purchaser of this Warrant. If in the opinion of each such counsel the proposed
transfer may be effected without registration or qualification (under any
federal or state securities laws), the Company, as promptly as practicable,
shall notify the Holder of such opinion, whereupon the Holder shall be entitled
to transfer this Warrant or to dispose of Warrant Shares received upon the
previous exercise of this Warrant, all in accordance with the terms of the
notice delivered by the Holder to the Company; provided that an appropriate
legend may be endorsed on the Warrant or the certificates for such Warrant
Shares respecting restrictions upon transfer thereof necessary or advisable in
the opinion of counsel and satisfactory to the Company to prevent further
transfers which would be in violation of Section 5 of the Act, and applicable
state securities laws; and provided further that the prospective transferee or
purchaser shall execute such documents and make such representations,
warranties, and agreements as may be reasonably required solely to comply with
the exemptions relied upon by the Company or the Holder for the transfer or
disposition of the Warrant or Warrant Shares.

 

(b)                                 If
in the opinion of counsel referred to in this Section 9, the proposed transfer
or disposition of this Warrant or such Warrant Shares described in the written
notice given pursuant to this Section 9 may not be effected without
registration or qualification of this Warrant or such Warrant Shares, the
Company shall promptly give written notice thereof to the Holder.

 

10.                                 Fractional
Shares.  Fractional shares
shall not be issued upon the exercise of this Warrant, but in any case where
the Holder would, except for the provisions of this Section, be entitled under
the terms hereof to receive a fractional share, the Company shall, upon the
exercise of this Warrant for the largest number of whole shares then called
for, pay a sum in cash equal to the sum of (a) the excess, if any, of the
Market Price of such fractional share over the proportional part of the Warrant
Exercise Price represented by such fractional share, plus (b) the proportional
part of the Warrant Exercise Price represented by such fractional share. For
purposes of this Section, the term “Market Price” with respect to shares of
Common Stock of any class or series means the average of the last reported sale
prices or, if none, the average of the last reported closing bid and asked
prices on any national securities exchange, the Nasdaq National Market, Nasdaq
SmallCap Market, or NASD OTC Bulletin Board over the five (5) trading days
immediately preceding the determination date. 
If the Company’s Common Stock is not listed on a national securities
exchange or quoted on Nasdaq or the OTC Bulletin Board, the Market Price shall
be the average of the last reported closing bid and asked prices as reported in
the “pink sheets” or other standard compilation of quotations by market makers
in the over-the-counter market over the five consecutive trading days
immediately prior to the determination date. 
In the event that no quotations are available, the “Market Price” shall
be the fair market value of a share of Common Stock as determined in good faith
by the Board of Directors of the Company.

 

11.                                 Capitalization Adjustments.

 

(a) Notwithstanding anything to the contrary contained in this Warrant,
in the event that any time following completion of the Merger, the Shell, as
successor to the Company, sells

 

6

 

shares of its Common Stock (or securities convertible into shares of
its Common Stock) at a price lower than $0.90 per share (the “Reduced Issue
Price”), subject to proportionate adjustment for stock splits, recapitalizations
and similar events, at any time prior to the earlier of (i) one year following
the closing of the Merger or (ii) the expiration of one hundred eighty (180)
days from the effective date of the Registration Statement, then the Warrant
Exercise Price with respect to any unexercised portion of the Warrant shall
automatically be reduced so that the adjusted Warrant Exercise Price bears the
same relationship to the Reduced Issue Price as the original Warrant Exercise
Price bears to $0.90.  Solely by way of
example, if the Company issues shares at $0.80 and the original Warrant
Exercise Price was $1.08 (i.e. 120% of $.90), then the adjusted Warrant
Exercise Price would equal $0.96 (i.e. 120% of $0.80).   Notwithstanding the foregoing, no reduction
of the Warrant Exercise Price shall occur as a result of (A) any issuance or
exercise of options, warrants or restricted shares to employees, directors,
consultants or advisors to Company pursuant to the terms of any compensation
plan or arrangement approved by the Board of Directors of the Company, (B)
securities issued in connection with any bona fide acquisition by the Company
(including any assumption of options or other convertible securities resulting
from any acquisition of another company by merger or exchange of securities),
(C) any issuance or exercise of securities, options or warrants issued to
suppliers, distributors or retailers as compensation, payment for goods or
services or in order to induce such persons or entities to do or continue to do
business with the Company, or (D) securities issued upon the exercise or
conversion of options or warrants outstanding immediately following completion
of the Merger. Notwithstanding anything to
the contrary contained in this Warrant, any adjustment contemplated by this Section 11(a) may be waived by consent
of  Holders owning of majority of the
aggregate outstanding Warrants issued as part of Units.

 

12.                                 Representations
and Warranties.  The Company
represents and warrants to the Holder of this Warrant as follows:

 

(a)                                  This
Warrant has been duly authorized and executed by the Company and is a valid and
binding obligation of the Company enforceable in accordance with its terms,
subject to laws of general application relating to bankruptcy, insolvency and
the relief of debtors and the rules of law or principles at equity governing
specific performance, injunctive relief and other equitable remedies;

 

(b)                                 The
Warrant Shares have been duly authorized and reserved for issuance by the
Company and, when issued in accordance with the terms hereof, will be validly
issued, fully paid and nonassessable; and

 

(c)                                  The
execution and delivery of this Warrant are not, and the issuance of the Warrant
Shares upon exercise of this Warrant in accordance with the terms hereof will not
be, inconsistent with the articles of incorporation, by-laws or other
organizational documents of the Company, do not and will not contravene, in any
material respect, any governmental rule or regulation, judgment or order
applicable to the Company, and do not and will not conflict with or contravene
any provision of, or constitute a default under, any indenture, mortgage,
contract or other instrument of which the Company is a party or by which it is
bound or require the consent or approval of, the giving of notice to, the
registration or filing with or the taking of any action in respect of or by,
any Federal, state or local government authority or agency or other person,
except for the filing of notices pursuant to federal and state securities laws,
which filings will be effected by the time required thereby.

 

13.                                 Notices.  Notices and other communications provided
for herein shall be in writing and may be given by mail, courier, confirmed
telex or facsimile transmission and shall, unless otherwise expressly required,
be deemed given when received or when delivery thereof is refused.  In the case of Holder, such notices and
communications shall be addressed to its address as shown on the books
maintained by the Company unless Holder shall notify the Company that notices
and communications should be sent to a different address (or telex or facsimile
number) in which case such notices and communications shall be sent to the
address (or telex or facsimile number) specified by Holder.

 

14.                                 Governing
Law.  This Warrant shall be
governed by and construed in accordance with the Corporation Law contained in
the Nevada Revised Statutes with respect to the

 

7

 

corporate law matters that are the subject thereof and, with respect to
all other matters, the laws of the State of California shall apply.

 

15.                                 General
Provisions.

 

(a)                                  This
Agreement contains the entire understanding between the parties with respect to
the subject matter hereof, and supersedes any and all prior written or oral
agreements between the parties with respect to the subject matter hereof.  There are no representations, agreements,
arrangements, or understandings, either written or oral, between or among the
parties with respect to the subject matter hereof which are not set forth in
this Agreement.

 

(b)                                 Each
party to this Agreement agrees to perform such further acts and to execute and
deliver such other and additional documents as may be reasonably necessary to
carry out the provisions of this Agreement.

 

(c)                                  If
any term, provision, covenant, or condition of this Agreement is held by a
court of competent jurisdiction to be invalid, illegal, or unenforceable for
any reason, such invalidity, illegality, or unenforceability shall not affect
any of the other terms, provisions, covenants, or conditions of this Agreement,
each of which shall be binding and enforceable.

 

(d)                                 This
Agreement may not be modified, extended, renewed or substituted without an
amendment or other agreement in writing signed by the parties to this
Agreement.

 

IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by
its duly authorized officer as the date first specified above.

 

 

	
   

  	
  SUNSET BRANDS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

8

 

SUNSET BRANDS, INC.

 

WARRANT EXERCISE NOTICE

 

(TO BE SIGNED ONLY UPON EXERCISE OF WARRANT)

 

The undersigned Holder of the foregoing Series A Warrant hereby
irrevocably elects to exercise the right, represented by such Warrant, to
purchase               
shares of the Common Stock of SUNSET BRANDS, INC. and tenders herewith payment
in accordance with Section 1 of said Warrant as follows:

 

                     
shares for CASH:                                 $

 

 

Please deliver the stock certificate to the address set forth below.  In addition, if the number of shares being
purchased pursuant to this exercise is less than the all of the shares
purchasable under this Warrant, please return to such address either (1) the
Warrant marked to reflect the remaining balance of shares purchasable
thereunder or (2) a newly issued Warrant in the name of the undersigned for
such remaining balance of shares purchasable thereunder.

 

Dated:

 

	
  Name of Warrant Holder:

  	
   

  	
   

  

 

	
  Tax Identification No. or

  Social Security No. of Warrant Holder:

  	
   

  	
   

  

 

 

	
   

  	
   

  
	
  (Signature)

  

 

Title:

 

 

NOTE: THE ABOVE SIGNATURE SHOULD CORRESPOND EXACTLY WITH THE NAME OF
THE WARRANT HOLDER AS IT APPEARS ON THE FIRST PAGE OF THE  WARRANT OR ON A DULY EXECUTED WARRANT
ASSIGNMENT.

 

9

 

SUNSET
BRANDS, INC.

 

WARRANT ASSIGNMENT

 

(TO BE SIGNED ONLY UPON TRANSFER OF WARRANT)

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto
                                                                                ,
the assignee, whose address is
                                                                                ,
and whose tax identification or social security number is
                                              ,the
right represented by the foregoing Warrant to purchase
                                      
shares of the Common Stock of SUNSET BRANDS,
INC., to which the foregoing Warrant relates and appoints
                                      
attorney to transfer said right on the books of Sunset Brands, Inc., with full
power of substitution in the premises. If the number of shares assigned is less
than all of the shares purchasable under the Warrant, anew Warrant will be
issued in the name of the undersigned for the remaining balance of the shares
purchasable thereunder.

 

Dated:

 

	
  Name of Warrant Holder/Assignor:

  	
   

  	
   

  
	
   

  	
  (Please print)

  
				

 

	
   

  	
   

  
	
  (Signature)

  

Title:

 

	
  Address of Warrant Holder/Assignor:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
					

 

 

	
  Tax Identification No. or Social Security No. of

  Warrant Holder/Assignor:

  	
   

  	
   

  

 

NOTE: THE ABOVE SIGNATURE SHOULD CORRESPOND EXACTLY WITH THE NAME OF
THE WARRANT HOLDER AS IT APPEARS ON THE FIRST PAGE OF THE WARRANT OR ON A DULY
EXECUTED ASSIGNMENT FORM.

 

10Exhibit
4.8

 

EMPLOYMENT
AGREEMENT

 

THIS EMPLOYMENT
AGREEMENT (the “Employment Agreement” or “Agreement”) is entered into as of
this 31st day of August, 2004, between Low Carb Creations, Inc., a Washington
corporation (the “Company”), and Dan Langdon (the “Employee”).

 

RECITALS:

 

WHEREAS, in August 2004, the Company, Cascade
Sled Dog Adventures, Inc., Sunset Brands, Inc. and the shareholders of the
Company entered into an Agreement and Plan of Merger (the “Merger Agreement”),
pursuant to which the Company would merge with and into a wholly-owned
subsidiary of the Cascade Sled Dog Adventures, Inc., and each shareholder of
the Company would become a shareholder of Cascade Sled Dog Adventures, Inc.
(the “Merger”);

 

WHEREAS, upon
consummation of the Merger (the “Effective Date”), the Company desires to
employ Employee in the position of President; and

 

WHEREAS, the
Company and Employee wish to replace and supersede any and all previous
employment agreements entered into between Employee and the Company.

 

NOW, THEREFORE,
the parties to this Agreement, intending to be legally bound, agree as follows:

 

1.                                       Employment.  As of the Effective Date, the Company hereby
agrees to employ Employee, and Employee accepts such employment and agrees to
perform his duties and responsibilities under this Agreement, in accordance
with the following terms and conditions. 
Employee agrees that his employment shall be on an “at will” basis
(subject to the provisions of Section 3.3 hereof regarding severance).

 

1.1.                              Duties
and Responsibilities.

 

(a)                                  Beginning
on the Effective Date, and thereafter until this Employment Agreement or
Employee’s employment terminates, Employee shall be employed by the Company as
its President.  In such capacity,
Employee shall have such powers and duties reasonably related to and consistent
with such position and the terms of this Agreement as may be assigned to him by  the Chief Executive Officer or the Board of Directors of
the Company.

 

(b)                                 Employee
represents to the Company that he is not subject to or a party to any
employment agreement, non-competition covenant, understanding or restriction
which would prohibit Employee from executing this Agreement and performing
fully his duties and responsibilities hereunder.

 

1

 

(c)                                  As
part of his duties hereunder Employee shall, upon request of the Board of
Directors of  Cascade Sled Dog Adventures, Inc. or
the Company, serve as an officer and/or director of Cascade Sled Dog Adventures, Inc. and/or
any other subsidiaries of Cascade
Sled Dog Adventures, Inc. 
Notwithstanding such service, unless otherwise agreed by Employee and Cascade Sled Dog Adventures, Inc.,
Employee shall be deemed an employee of the Company and not of such other
entities.

 

1.2.                              Extent
of Service.  Employee agrees that
during the period of his employment hereunder he shall devote substantially all
of his business time, attention and skills to the business and affairs of the
Company and its subsidiaries; provided, however, that the foregoing shall not be
construed as preventing Employee from (i) making investments in other publicly
traded companies in an amount not to exceed one percent (1%) of the total
outstanding stock of such company and (ii) owning up to five percent (5%) of
the outstanding capital stock of Radex Marine. 
Notwithstanding the foregoing, Employee (i) may participate in the
ownership and operation of existing businesses owned by him, including the
ownership and operation of existing retail stores that sell low-carbohydrate
products; (ii)may provide services as a volunteer or director to charitable,
educational or civic organizations; (iii) may act as a member, director or
officer of any industry trade association or group; (iv) may serve as a member
of the board of directors of one company other than the Company, provided that
the company is not a company in direct or indirect competition with the
Company’s business; and (v) may serve as a trustee, director or advisor to any
companies or trusts owned or operated by members of Employee’s family;  provided in all cases that Employee gives
prior notice to the Board of Directors of the Company and the aggregate of such
service does not interfere with the performance of Employee’s duties to the
Company as required under this Agreement.

 

1.3.                              Salary.  For all of the services rendered by Employee
hereunder, Employee’s annual base salary shall be $100,000, payable in
accordance with the Company’s ordinary payroll practices (but in any event no
less often than monthly).  Such base
salary shall not be reduced during the term of this Agreement without the
express written consent of Employee.  
Employee shall not be entitled to any additional compensation for his
services as a director or officer of LCC, Cascade Sled Dog Adventures, Inc. or any of their respective
subsidiaries.

 

1.4.                              Benefits.  During the term of employment Employee shall
be provided such benefits and be permitted to participate in all fringe benefit
plans made available to employees of the Company generally and to executives of
the Company which, from time to time at the Company’s discretion may be
provided.

 

1.5                                 [Reserved]

 

1.6                                 Bonuses
. Employee shall be eligible for annual discretionary bonuses in an amount
and on such terms as may be approved by the Board of Directors of the Company
and shall be eligible to participate in any bonus plan approved by the Board of
Directors for executives of the Company with the nature and extent of such
participation to be determined by the Board of Directors in its discretion.

 

2

 

2.                                       Expenses.  The Company shall reimburse Employee on a
timely basis for all ordinary and necessary business expenses incurred in the
discharge of his duties and responsibilities under this Agreement, in line with
Company policy and in accordance with the Company’s expense approval procedures
then in effect upon presentation to the Company of an itemized account and
appropriate written proof of such expenses.

 

3.                                       Term
and Termination.

 

3.1.                              Generally.  This Agreement shall commence on the
Effective Date and continue for a period of one (1) year.  The term of this Agreement will automatically
renew for successive one (1) year terms, unless written notice is given by
either party that such party desires to terminate the Agreement.   Notwithstanding the foregoing, this Agreement
may be terminated at any time (i) immediately by the Company for Cause pursuant
to Section 3.2; or (ii) by the Company without Cause subject to
Section 3.3.

 

3.2.                              Termination
by Company for Cause.  The term Cause
shall mean (i) Employee’s material breach of this Agreement or failure or
refusal to render services to the Company in accordance with Employee’s
obligations under this Agreement, provided that if Employee’s breach, failure
or refusal is capable of remedy, Cause shall exist if Employee fails to cure
such breach, failure or refusal within a reasonable period of time not to
exceed thirty (30) business days or if such breach, failure or refusal is
timely cured, Employee repeats such breach, failure or refusal; (ii)  negligence in the performance of Employee’s
duties which results in or could reasonably be expected to harm or prejudice
the Company in any material respect, (iii) excessive absenteeism, willful
misconduct or repeated insubordination or failure to perform duties reasonably
requested of him by the Board of Directors or Chief Executive Officer of the
Company, (iv) the commission by Employee of an act of fraud or embezzlement
against Cascade Sled Dog
Adventures, Inc., the Company or any subsidiaries thereof, or the
commission by Employee of any other bad faith action which can be reasonably
anticipated to injure the Company;  (v)
an act of moral turpitude by Employee; or (vi) Employee’s having been convicted
of, or pleading  nolo contendere to, a felony
(other than traffic offenses which do not bring Employee or the Company into
disgrace or disrepute).  Employee
acknowledges that the events described in Sections 3.2(ii) through (vi) shall
be deemed incapable of remedy.

 

3.3                               Severance.

 

(a)                                  In
addition to any accrued, declared but unpaid base salary and bonus earned
through the date of termination of employment, which shall be payable to
Employee regardless of the reasons for such termination, if Employee’s
employment under this Agreement is terminated by the Company for other than
Cause, then Employee shall be entitled to receive his salary until the
scheduled expiration of this Agreement (the “Severance Benefit”); provided,
however, that during such time Employee shall seek other employment and any compensation
received from such other employment shall be offset against any Severance
Benefit..

 

3

 

(b)                                 Notwithstanding
anything in this Agreement to the contrary, Employee shall not be entitled to
any of the Severance Benefit described herein if (i) in the event of a Change
of Control (A) Employee is offered Comparable Employment by a Successor Company
(as defined below); or (B) Employee accepts employment with a Successor Company
(other than transition services that may be requested of Employee by the
Successor Company), regardless of whether that employment constitutes
Comparable Employment or (ii) if Employee accepts employment with another
company on comparable terms following termination for other than Cause.  The term “Successor Company” means, upon a
Change of Control, a successor to the Company as a result of the acquisition of
securities, a merger, liquidation, reorganization, consolidation or sale of
assets of the Company, or otherwise a successor to the Company as a result of
the Change of Control.  Severance
benefits shall be payable only upon Employee’s termination of employment with
the Company as provided herein.  In no
event shall the Company have any liability for severance with respect to Employee’s
termination of employment with a Successor Company.    For purposes of this Agreement, “Comparable
Employment” shall mean an offer to continue this Agreement for the remaining
term, or an offer for a new contract incorporating substantially all of the
terms of this Agreement as they would apply as of the date of the closing of a
transaction which constitutes a Change of Control, including, at least,
Employee’s then current base salary, formula bonus, perquisites and benefits.

 

(c)                                  The
Company shall have the option of paying any payment under this Section 3.3
either in accordance with the Company’s then-current payroll practices or in a
lump sum.  If the Company elects to pay
in accordance with the Company’s then-current payroll practice, the Company will
continue to pay its share of the Employee’s group health coverage for the
period during which payments are made, consistent with the terms of the
applicable group health coverage plan(s). If the Company elects to make a lump
sum payment, Employee will be responsible for the costs associated with any
continuation of group health coverage, including COBRA.  In the event of Employee’s death, payment
under this Section shall be made by lump sum.

 

3.4.                              Definition
of Change of Control.  A “Change of
Control” with respect to the Company shall be deemed to have occurred at the
time of the earliest to occur of the following:

 

(a)                                  any
“person” as such term is used in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended (“Exchange Act”) (other than the Company, any
trustee or other fiduciary holding securities under an employee benefit plan of
the Company, or any company owned, directly or indirectly, by the share owners
of the Company in substantially the same proportions as their ownership of
stock of the Company) is or becomes the “beneficial owner” (as defined in Rule
13d-3 under the Exchange Act), directly or indirectly (through a plan of
reorganization or otherwise), of securities of the Company representing 50% or
more of the combined voting power of the Company’s then outstanding securities;

 

(b)                                 the
share owners of the Company approve (or, if share owner approval is not
required, the consummation of) a merger or consolidation of the Company

 

4

 

with any other company, other than (1) a merger or consolidation which
would result in the voting securities of the Company outstanding immediately
prior thereto continuing to represent (either by remaining outstanding or by
being converted into voting securities of the surviving entity) more than 50%
of the combined voting power of the voting securities of the company or such
surviving entity outstanding immediately after such merger or consolidation, or
(2) a merger or consolidation effected to implement a recapitalization of the
Company (or similar transaction) in which no “person” (as defined in (a) above)
acquires more than 50% of the combined voting power of the Company’s then
outstanding securities; or

 

(c)                                  the
share owners of the Company approve (or, if share owner approval is not
required, the consummation of) a plan of liquidation of the Company or a sale
or disposition by the Company of all or substantially all of the Company’s
assets.

 

4.                                       Covenant
Not to Compete.

 

(a)                                  In
addition to any non-competition agreement entered into by Employee in
connection with the Merger, in the event this Agreement is terminated (for
reasons other than the expiration of its term) the Employee agrees, for a
period of 18 months (the “Restricted Period”) not to, without the prior written
consent of the Board of Directors of Cascade Sled Dog Adventures, Inc., for whatever reason, own,
manage, control, operate, invest or acquire an interest in, become employed by,
interested in, associated with, or otherwise engaged in, or act on behalf of
any trade or business that is in “Competition” (as defined below) with the
business conducted by the Company in the United States.

 

(b)                                 The
trades, businesses or activities that are or would be in “Competition” with the
business of the Company include, but are not limited to: (1) the direct or
indirect ownership of or other participation in the design, manufacture, sale
or distribution of low-carbohydrate, natural or health-oriented food and
beverage products; (2) employment or other engagement in a management or
consulting position that includes responsibility for oversight of the design,
manufacture, sale or distribution of low-carbohydrate, natural or
health-oriented food and beverage products.

 

(c)                                  Nothing
in the preceding Sections 4(a) or (b) shall be construed to preclude Employee
from being employed by a competitor of the Company in a position not involving
any direct or indirect services by Employee by, for or on behalf of any
division, unit or enterprise which is engaged in competitive activities with
the business of the Company.  Without
limiting the generality of the foregoing, for the avoidance of doubt, the
Parties agree that Sections 4(a), (b) and (c) preclude Employee, during the Restricted
Period, from participating in the design, production, sale, licensing or
distribution of products or product distribution systems that are competitive
with the business of the Company.

 

5

 

(d)                                 It
is specifically agreed and understood that because of the nature of the
business, the duration and geographic scope of the covenants set forth in this
Section 4  (the “Restrictive Covenants”)
are reasonable.  However, in furtherance
of the provisions of this Section 4 and subsections hereunder, the Parties
agree that in the event a court should decline to enforce all of the
Restrictive Covenants, or any part thereof, the other Restrictive Covenants and
the remainder of any of the Restrictive Covenants so impaired shall not thereby
be affected and shall be given full effect, without regard to the invalid
portions.  If any court determines that
any of the Restrictive Covenants or any parts thereof are unenforceable because
of the duration or scope thereof, such court shall have the power to reduce the
duration or scope, as the case may be and such Restrictive Covenants shall then
be enforceable in their reduced form.

 

5.                                       Nonsolicitation.

 

(a)                                  During
the Restricted Period, Employee will not, directly or indirectly (i) employ or
retain, or arrange to have any other person or entity recruit, solicit, employ
or retain, any person who was employed or retained by the Company as an
employee, consultant or agent at any time during Employee’s employment with the
Company; or (ii) influence or attempt to influence any such person to terminate
or modify his/her employment arrangement or other relationship with the
Company.

 

(b)                                 During
the Restricted Period, Employee will not advertise or otherwise promote any
business (or any corporation, firm or enterprise carrying on business) in
Competition with the Company.

 

(c)                                  During
the Restricted Period, Employee will not, directly or indirectly, solicit,
divert or take away, or attempt to divert or take away, the business or
patronage of any of the clients, customers or accounts, or prospective clients,
customers or accounts, of the Company.

 

6.                                       Confidentiality.

 

(a)                                  Employee
recognizes that as an employee of the Company, she will occupy a position of
trust with respect to “Confidential Information.”  The “Confidential Information” protected by
this Section 6 and subsections hereunder means all business information of any
nature or in any form not generally known (at the time concerned) to persons
engaged in business similar to the business conducted or contemplated by the Company,
Cascade Sled Dog Adventures,
Inc. or its subsidiaries (other that by the act or acts of a person not
authorized by the Company to disclose such information) and which relates to
any aspect of the present or past business of the Company, its affiliates or
any of their predecessors or any of their future plans and strategies.  Confidential Information includes, but is not
limited to policies, processes, products, reports, analyses, memoranda,
component lists, developments, projects, distribution systems, work processes,
known-how and other facts relating to sales, advertising, promotions, financial
matters, pricing policies and price lists, customers, customer lists, potential
purchasers and sellers, customer’s purchases or requirements, information systems,
corporate policies and other trade secrets.

 

6

 

(b)                                 While
Employee is employed by the Company, Cascade Sled Dog Adventures, Inc. or any
of its subsidiaries and at all times following the termination of his
employment, the Employee will keep all Confidential Information in strictest
confidence.   Furthermore, without the
prior written consent of the Company, unless otherwise required in the
performance of his duties hereunder or ordered by any court of law, Employee
will not divulge Confidential Information to any third party or use it for the
benefit of himself or any third party or for any purpose other than the
exclusive benefit of the Company or its affiliates.

 

(c)                                  Upon
the termination of Employee’s employment for any reason, Employee, at the
expense of the Company, will promptly return all Confidential Information to
the Company.  The material to be returned
includes, but is not limited to any and all copies of the records, materials,
memoranda and other data constituting or pertaining to the Confidential
Information that were prepared by the Company, Employee or any other person.

 

(d)                                 Employee
agrees that following any termination or cessation of his employment by the
Company, Employee shall not disclose or cause to be disclosed any negative,
adverse or derogatory comments or information about the Company of its
management or about any product or service provided by the Company, or about
the Company’s prospects for the future (including any such comments or
information with respect to affiliates of the Company) provided, however,
that nothing in this Section 6 and subsections thereunder shall be construed to
limit Employee’s ability to enforce his rights under this Agreement or to
contest  any claim made against Employee
under this Agreement.  The Company and/or
any of its subsidiaries and affiliates may seek the assistance, cooperation or
testimony of Employee following any such termination in connection with any investigation,
litigation or proceeding arising out of matters within the knowledge of
Employee and related to Employee’s position as an officer or employee of the
Company, and in such instance, Employee shall provide such assistance,
cooperation or testimony, and the Company shall pay the Employee’s reasonable
costs in connection therewith.

 

7.                                       [Reserved]

 

8.                                       Survival.  Notwithstanding the termination or expiration
of this Agreement pursuant to Section 3 or otherwise, the Company’s obligations
under Sections 3, 4, 5, 6 and 7  hereof
shall remain in full force and effect for the periods therein provided.

 

9.                                       Governing
Law.  This Agreement shall be
governed by and interpreted under the laws of the State of Washington, without
giving effect to the principles of conflicts of laws thereof.

 

10.                                 Notices.  All notices and other communications required
or permitted hereunder or necessary or convenient in connection herewith shall
be in writing and shall be deemed to have been given when hand-delivered,
mailed by registered or certified mail (three days after deposited), faxed
(with confirmation received) or sent by a nationally recognized courier
service, as follows (provided that notice of change of address shall be deemed
given only when received):

 

7

 

If to the Company, to:

 

Board of Directors

Low Carb Creations, Inc.

11805 NE 99th St., Suite 1300

Vancouver, WA 98682

 

With a required copy to:

 

Board of Directors

Cascade Sled Dog Adventures, Inc.

10990 Wilshire Blvd., Suite 1220

Los Angeles, CA 90024

 

and

 

Robert M. Steinberg, Esq.

Jeffer, Mangels, Butler & Marmaro

1900 Avenue of the Stars

7th Floor

Los Angeles, California, 90067

 

If to Employee, to:

 

Dan Langdon

546 S.W. 191st Street

Normandy Park, Washington 98166

 

or to such other names
and addresses as the Company or Employee, as the case may be, shall designate
by notice to each other person entitled to receive notices in the manner
specified in this Section.

 

11.                                 Contents
of Agreement.

 

11.1.                        This
Agreement supersedes all prior employment agreements between the Company and
Employee, and sets forth the entire understanding between the parties hereto
with respect to the subject matter hereof. 
This Agreement may not be changed, modified, extended or terminated
except upon written amendment executed by Employee and the Company.

 

11.2.                        Employee
acknowledges that from time to time the Company or its affiliates may
establish, maintain and distribute employee manuals or handbooks or personnel
policy manuals, and officers or other representatives of the Company may make
written or oral statements relating to personnel policies and procedures.  Such manuals, handbooks and

 

8

 

statements are intended
only for general guidance.  No policies,
procedures or statements of any nature by or on behalf of the Company (whether
written or oral, and whether or not contained in any employee manual or
handbook, as the same may exist from time to time, or personnel policy manual),
and no acts or practices of any nature, shall be construed to modify this
Agreement or to create express or implied obligations of any nature to Employee
or to impose any such obligations on Employee in conflict with or in any manner
inconsistent with the provisions of this Agreement.

 

11.3.                         All of
the terms and provisions of this Agreement shall be binding upon and inure to
the benefit of and be enforceable by the respective heirs, executors,
administrators, legal representatives, successors and assigns of the parties
hereto, except that the duties and responsibilities of Employee hereunder are
of a personal nature and shall not be assignable or delegable in whole or in
part by Employee, and the Company may not transfer or convey its rights
hereunder to any third party other than an affiliate of the Company without the
prior express written consent of Employee except as provided herein, which
consent shall not be unreasonably withheld.

 

11.4.                        The
language of this Agreement shall be construed in accordance with its fair
meaning and not for or against any party. 
The parties acknowledge that each party and its counsel have reviewed
and had the opportunity to participate in the drafting of this Agreement and,
accordingly, that the rule of construction that would resolve ambiguities in
favor of non-drafting parties shall not apply to the interpretation of this
Agreement or any portion of this Agreement.

 

12.                                 Severability.
If any provision of this Agreement or application thereof to any person or
circumstance is held invalid or unenforceable in any jurisdiction, the
remainder of this Agreement, and the application of such provision to such
person or circumstances in any jurisdiction, shall not be affected thereby, and
to this end the provisions of this Agreement shall be severable.

 

13.                                 Arbitration.
In the event of any controversy, dispute or claim arising out of or related to
this Agreement or Employee’s employment by the Company, the parties shall
negotiate in good faith in an attempt to reach a mutually acceptable settlement
of such dispute.  If negotiations in good
faith do not result in a settlement of any such controversy, dispute or claim,
it shall be finally resolved by expedited binding arbitration, conducted in Los
Angeles, California, in accordance with the National Rules of the American
Arbitration Association governing employment disputes and applicable law.  Nothing is this Section 13 shall be deemed to
limit, compromise or affect the Company’s right to seek and/or obtain
appropriate injunctive and/or other equitable relief from a court of competent
jurisdiction.

 

14.                                 Remedies
Cumulative; No Waiver.  No remedy
conferred upon the Company or Employee by this Agreement is intended to be
exclusive of any other remedy, and each and every such remedy shall be
cumulative and shall be in addition to any other remedy given hereunder or now
or hereafter existing at law or in equity. 
Except as specifically provided in this Agreement, no delay or omission
by the Company in exercising any right, remedy or

 

9

 

power hereunder or
existing at law or in equity shall be construed as a waiver thereof, and any
such right, remedy or power may be exercised by the Company from time to time
and as often as may be deemed expedient or necessary by the Company in its sole
discretion.

 

15.                                 Power
and Authority.  The Company
represents that it has the power and authority to enter into this Agreement.

 

16.                                 Withholding.  All payments under this Agreement shall be
made subject to applicable tax withholding, and the Company shall withhold from
all payments under this Agreement all federal, state and local taxes that the
Company is required to withhold pursuant to any law or governmental rule or
regulation.

 

17.                                 Miscellaneous.  All section headings are for convenience
only.  This Agreement may be executed in
several counterparts, each of which is an original.

 

 

[signatures
continue on next page]

 

10

 

IN WITNESS WHEREOF, the undersigned, intending to be legally bound,
have executed this Employment Agreement as of the date set forth above.

 

 

	
  LOW CARB CREATIONS,
  INC.

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Dan Langdon

  	
   

  
	
  Name: Dan Langdon

  
	
  Title: President

  
	
   

  
	
  CASCADE SLED DOG
  ADVENTURES, INC.

  
	
   

  
	
  By:

  	
  /s/ Todd Sanders

  	
   

  
	
  Name: Todd Sanders

  
	
  Title: President

  
	
   

  
	
   

  
	
  /s/ Dan Langdon

  	
   

  
	
  DAN LANGDON

  
				

 

11

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