Document:

ex10_97.htm

Exhibit 10.97

 

AMENDMENT NO. 2

TO

EMPLOYMENT AGREEMENT

This AMENDMENT NO. 2 TO EMPLOYMENT AGREEMENT (the “Amendment”) is made and entered into effective as of the 8th day of November, 2012 by and between CHROMCRAFT REVINGTON, INC. (the “Company”), a Delaware corporation, and RONALD H. BUTLER (the “Executive”), who is the Chairman and Chief Executive Officer of the Company,

WITNESSETH:

WHEREAS, the Company and the Executive are parties to an employment agreement dated July 1, 2008, as amended effective as of December 31, 2009 (as amended, the “Agreement”); and

WHEREAS, the Company and the Executive mutually desire to further amend the Agreement as provided in this Amendment.

NOW, THEREFORE, in consideration of the foregoing premises, the respective covenants, agreements and waivers contained herein, the continued employment of the Executive by the Company pursuant to the Agreement, as further amended hereby, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Executive hereby agree as follows:

Section 1.               Amendment to Section 1(b) of the Agreement.  Section 1(b) of the Agreement is hereby amended, superseded and replaced in its entirety to now read as follows:

(b)           Term.  Unless the Executive’s employment with the Company is terminated earlier in accordance with Section 4 hereof, the initial term of the Executive’s employment with the Company under this Agreement shall begin on July 1, 2008 and shall end on December 31, 2011 (the “Initial Term”); provided, however, that upon the expiration of the Initial Term, the Executive’s employment under this Agreement shall thereafter be automatically extended upon the same terms and conditions as set forth herein for successive one year terms (each, a “Renewal Term”), unless the Company or the Executive shall have delivered to the other a written notice not less than ninety (90) days prior to the expiration of the Initial Term or any Renewal Term stating that the term of this Agreement shall not be so extended, in which case the Executive’s employment hereunder shall terminate at the end of the Initial Term or the applicable Renewal Term, as the case may be.  Notwithstanding the foregoing, following a Change in Control (as hereinafter defined), the Executive’s right not to extend the Term shall only be such that the Executive may in his discretion at any time, upon thirty (30) days’ prior written notice to the Company, elect not to extend the Term and, in such event, the Term and the Executive’s employment with the Company shall terminate at the end of such thirty (30) day notice period.

During the Initial Term and any Renewal Term, the Executive’s employment hereunder is subject to early termination in accordance with Section 4 hereof.  The Initial Term and any Renewal Term may be referred to in this Agreement individually or collectively as the “Term.”

  

  

  

Section 2.               Amendment to Section 4(f) of the Agreement.  Section 4(f) of the Agreement is hereby amended, superseded and replaced in its entirety to now read as follows:

(f)            Termination by the Executive Under Certain Circumstances Following a Change in Control.  Following a Change in Control (as hereinafter defined), and in addition to any other right of the Executive to terminate his employment hereunder, the Executive, upon not less than thirty (30) days’ prior written notice to the Company, may terminate his employment with the Company upon the occurrence, as determined by the Executive, of any of the following events during the one (1) year period immediately following a Change in Control (and any such termination by the Executive shall not constitute a termination for Good Reason under Section 4(c) hereof):

(i)            a material change in the Executive’s duties or responsibilities from those in effect on the day before the Change in Control, provided that solely a change in the Executive’s titles of Chairman of the Board and Chief Executive Officer shall not be deemed a material change in his duties or responsibilities, or

(ii)           a requirement that the Executive maintain his business office at the Company at a location other than the office at which he is principally located on the day immediately before the Change in Control, or

(iii)          a requirement that the Executive be away from his principal residence for matters related to the Company for more than ten (10) days during any calendar month.

For purposes of this Agreement, a “Change in Control” shall mean a transaction or series of related transactions pursuant to which (i) at least fifty-one percent (51%) of the outstanding shares of common stock of the Company (on a fully diluted basis) shall subsequent to the date of this Agreement be acquired by any party unrelated to or unaffiliated with the Company, or (ii) the Company merges or consolidates with or effects any plan of share exchange or other combination with any party that is unrelated to or unaffiliated with the Company in a transaction where the holders of voting shares of the Company immediately prior to the transaction do not hold a majority of the voting shares of the surviving entity immediately following such transaction(s).

Notwithstanding the foregoing, a “Change in Control” shall not be deemed to have occurred with respect to a transaction or series of related transactions (A) involving any subsidiary or affiliate of the Company, (B) involving the Employee Stock Ownership and Savings Plan (the “ESOP”) of the Company, its related trust or any other employee benefit plan of the Company or related trust currently or hereafter maintained or sponsored by the Company, (C) pursuant to which the Company is taken private by the Company or no longer has shares of stock that are listed for trading on any securities exchange or market, or (D) pursuant to which at least fifty-one percent (51%) of the outstanding shares of common stock of the Company (on a fully diluted basis) are beneficially owned by the ESOP, its related trust or any other employee benefit plan of the Company or related trust and/or persons who are serving as directors, officers or employees of the Company immediately prior to such transaction(s).  In addition, in determining whether a Change in Control has occurred under subsection (i) in the preceding paragraph, the outstanding shares of common stock of the Company shall include all shares owned by the ESOP, whether allocated or unallocated to the accounts of participants.

  

  

  

Section 3.               Amendment to Section 5(e) of the Agreement.  Section 5(e) of the Agreement is hereby amended, superseded and replaced in its entirety to now read as follows:

(e)           Termination Upon No Extension of Term.  Prior to a Change in Control, if the Company elects pursuant to Section 1(b) hereof not to extend the Term, the Company shall pay to the Executive his monthly Base Salary through the end of the Term (and the Executive shall continue to perform his duties and responsibilities under this Agreement through the end of the Term) and, in addition, the Company shall pay to the Executive severance payments equal to his Base Salary (calculated as a monthly amount) for twelve (12) months following the end of the Term.  Prior to a Change in Control, if the Executive elects pursuant to Section 1(b) hereof not to extend the Term, the Company shall pay to the Executive his monthly Base Salary through the end of the Term (and the Executive shall continue to perform his duties and responsibilities under this Agreement through the end of the Term), but the Company shall not pay to the Executive any severance payments under this Agreement and shall instead pay severance to the Executive in accordance with the Company’s severance pay policy then in effect.

Following a Change in Control, if the Company elects pursuant to Section 1(b) hereof not to extend the Term, the Company shall pay to the Executive his monthly Base Salary through the end of the Term (and the Executive shall continue to perform his duties and responsibilities under this Agreement through the end of the Term) and, in addition, the Company shall pay to the Executive severance payments equal to his Base Salary (calculated as a monthly amount) for twelve (12) months following the end of the Term.  Following a Change in Control, if the Executive elects not to extend the Term pursuant to Section 1(b) hereof, the Company shall pay to the Executive his monthly Base Salary during the thirty (30) day notice period specified in Section 1(b) (and the Executive shall continue to perform his duties and responsibilities under this Agreement through the end of such period) and, in addition, the Company shall pay to the Executive severance payments equal to his Base Salary (calculated as a monthly amount) for six (6) months following the end of such thirty (30) day notice period.

This subsection shall survive any expiration or termination of the Term of this Agreement and shall be in addition to the provisions of this Agreement that survive in accordance with Section 11.

Section 4.               Amendment to Section 5(f) of the Agreement.  Section 5(f) of the Agreement is hereby amended, superseded and replaced in its entirety to now read as follows:

(f)            Termination by the Executive Under Certain Circumstances Following a Change in Control.  Upon the termination by the Executive of his employment with the Company following a Change in Control pursuant to Section 4(f) hereof, the Company shall pay to the Executive severance payments equal to his Base Salary (calculated as a monthly amount) for twelve (12) months.  In all other cases, the Company shall pay severance to the Executive upon a termination of his employment with the Company (whether by the Company or the Executive and whether with or without Cause, Good Reason or otherwise) following a Change in Control in accordance with the appropriate provision of Section 5 of this Agreement.  This subsection shall survive the termination or expiration of the Term of this Agreement and shall be in addition to the provisions of this Agreement that survive in accordance with Section 11.

  

  

  

Section 5.               Amendment to Section 13(a) of the Agreement.  Section 13(a) of the Agreement is hereby amended, superseded and replaced in its entirety to now read as follows:

Binding Effect; Assignment.  This Agreement shall be binding upon and inure to the benefit of the Company and the Executive and their respective heirs, executors, representatives, successors and assigns; provided, however, that neither the Company nor the Executive may assign this Agreement, or their respective rights and obligations hereunder, without the prior written consent of the other, except that the Company shall, without the consent of the Executive, assign this Agreement, and its rights and obligations hereunder, to any acquirer of substantially all of the assets or stock of the Company in connection with any merger, consolidation, share exchange, combination, sale of stock or assets, dissolution or other transaction constituting a Change in Control if the Company is not the surviving corporation in any such transaction.  In the event of any such permitted assignment of this Agreement, all references to the “Company” shall thereafter mean and refer to the assignee of the Company.

Section 6.               No Other Changes; Limited Waiver of Breaches.

(a)           No Changes Except as Provided Herein.  The Agreement is not amended, modified or changed in any respect except as provided in this Amendment.  All covenants, agreements, restrictions, provisions and obligations set forth in the Agreement shall remain and continue in full force and effect, and binding upon the parties, as provided in the Agreement except as amended pursuant to this Amendment.

(b)           Limited Waiver.  Each of the Company and the Executive hereby waives any and all breaches, if any, by the other of the Agreement that may have occurred, and any and all rights to terminate the Agreement that may have arisen, on or prior to the date of this Amendment.  Neither the Company nor the Executive waives any breaches or rights to terminate the Agreement that may occur or arise following the date of this Amendment.

Section 7.               Miscellaneous.

(a)           Binding Effect; Assignment.  This Amendment shall be binding upon and inure to the benefit of the Company and the Executive and their respective heirs, executors, representatives, successors and assigns.

(b)           Headings.  The headings in this Amendment have been inserted solely for ease of reference and shall not be considered in the interpretation or construction of this Amendment.

(c)           Severability.  In case any one or more of the provisions (or any portion thereof) contained herein shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Amendment, but this Amendment shall be construed as if such invalid, illegal, or unenforceable provision or provisions (or portion thereof) had never been contained herein.

  

  

  

(d)           Counterparts.  This Amendment may be executed in any number of counterparts, each of which shall be an original, but such counterparts shall together constitute one and the same agreement.

(e)           Voluntary Execution; Construction.  The Executive agrees that he has executed this Amendment voluntarily and not as a condition to continued employment with the Company.  This Amendment shall be deemed to have been drafted by both of the parties hereto.  This Amendment shall be construed in accordance with the fair meaning of its provisions and its language shall not be strictly construed against, nor shall ambiguities be resolved against, either party.  THE EXECUTIVE HEREBY UNDERSTANDS, ACKNOWLEDGES AND AGREES THAT HE HAS NOT RECEIVED ANY ADVICE, COUNSEL OR RECOMMENDATION WITH RESPECT TO THIS AMENDMENT FROM THE COMPANY, ANY DIRECTOR, OFFICER OR EMPLOYEE OF THE COMPANY OR ANY ATTORNEY, ACCOUNTANT OR ADVISOR FOR THE COMPANY.

(f)            Entire Agreement.  This Amendment constitutes the entire understanding and agreement (and supersedes all other prior understandings, commitments, representations and discussions) between the parties hereto relating to the amendments to the Agreement contemplated hereby.

(g)           Governing Law; Venue; Waiver of Jury Trial.  This Amendment shall be governed by and construed in accordance with the laws of the State of Indiana, without reference to any choice of law provisions, principles or rules thereof (whether of the State of Indiana or any other jurisdiction) that would cause the application of any laws of any jurisdiction other than the State of Indiana.  Any claim, counterclaim, demand or action relating to this Amendment shall be brought only in a federal or state court of competent jurisdiction located in the State of Indiana.  In connection with the foregoing, the parties hereto irrevocably consent to the jurisdiction and venue of such court and expressly waive any claims or defenses of lack of jurisdiction of or proper venue by such court.  THE COMPANY AND THE EXECUTIVE HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TO THE MAXIMUM EXTENT PERMITTED BY LAW ANY AND ALL RIGHT TO A TRIAL BY JURY IN ANY DEMAND, CLAIM, ACTION, SUIT, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR OTHERWISE RELATING TO THIS AMENDMENT.

(h)           Recitals.  The first paragraph of this Amendment and the recitals or “Whereas” clauses contained on page 1 of this Amendment are expressly incorporated into and made a part of this Amendment.

(i)            Restatement of Agreement.  The Company may restate the Agreement such that it shall contain in a single document all of the provisions of the Agreement, as amended pursuant to this Amendment; provided that any such amended and restated Agreement shall be signed by the Company and the Executive before it shall be effective.

[Remainder of this page intentionally left blank.  Signature page follows this page.]

  

  

  

IN WITNESS WHEREOF, the Company and the Executive have entered into, executed and delivered this Amendment as of the day and year first above written.

	  	
/s/ Ronald H. Butler

	  	
Ronald H. Butler

	  	  	  
	  	  	  
	  	
CHROMCRAFT REVINGTON, INC.

	  	  	  
	  	  	  
	  	
By:

	
/s/ James M. La Neve

	  	  	
James M. La Neve

	  	  	
Vice President and Chief Financial OfficerTHE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW
TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISPOSITION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION
STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL FOR THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED.

 

  

	Warrant No. A-1	Date of Issuance:  February 16, 2011

 

CLEARSIGN COMBUSTION CORPORATION

 

Common Stock Purchase Warrant

 

ClearSign Combustion Corporation (the “Company”),
for value received, hereby certifies that Dr. Robert Breidenthal (the “Registered Holder”) is entitled, subject to
the terms set forth below, to purchase from the Company on or after the date that this Common Stock Purchase Warrant (the “Warrant”)
is issued (the “Exercise Date”), up to 20,000 shares of the Company’s Common Stock at a purchase price of $2.25
per share. The right of the Registered Holder to purchase the Common Stock shall terminate at 5:00 p.m. Pacific time on February
16, 2021 (the “Termination Date”). The shares purchasable upon exercise of this Warrant, and the purchase price per
share, each as adjusted from time to time pursuant to the provisions of this Warrant, are hereinafter referred to as the “Warrant
Stock” and the “Purchase Price,” respectively.

 

1.          Exercise.

 

(a)          This
Warrant may be exercised by the Registered Holder at any time after the Exercise Date, in whole or in part, by surrendering this
Warrant, with the purchase form appended hereto as Exhibit A duly executed by the Registered Holder, at the principal office
of the Company or at such other office or agency as the Company may designate, accompanied by payment in full by cashier’s
check, money order or wire transfer of the Purchase Price payable in respect of the number of shares of Warrant Stock purchased
upon such exercise.

 

(b)          Each
exercise of this Warrant shall be deemed to have been effected immediately prior to the close of business on the day on which this
Warrant shall have been surrendered to the Company as provided in Section 1(a) above. At such time, the Registered Holder shall
be deemed to have become the holder of record of the Warrant Stock represented by such certificates.

 

(c)          Upon
exercise of this Warrant the Company, or the Company’s agent, shall deliver to the Registered Holder a certificate for the
number of shares of Warrant Stock to which such Registered Holder shall be entitled.

 

    	 

    	 

    

  

2.          Adjustments.

 

(a)          If
outstanding shares of the Company’s Common Stock shall be subdivided into a greater number of shares or a dividend in Common
Stock shall be paid in respect of Common Stock, the Purchase Price in effect immediately prior to such subdivision or at the record
date of such dividend shall simultaneously with the effectiveness of such subdivision or immediately after the record date of such
dividend be proportionately reduced. If outstanding shares of Common Stock shall be combined into a smaller number of shares, the
Purchase Price in effect immediately prior to such combination shall, simultaneously with the effectiveness of such combination,
be proportionately increased. When any adjustment is required to be made in the Purchase Price, the number of shares of Warrant
Stock purchasable upon the exercise of this Warrant shall be changed to the number determined by dividing (i) an amount equal to
the number of shares issuable upon the exercise of this Warrant immediately prior to such adjustment, multiplied by the Purchase
Price in effect immediately prior to such adjustment, by (ii) the Purchase Price in effect immediately after such adjustment.

 

(b)          In
case of any recapitalization, reclassification or change of the outstanding securities of the Company or of any reorganization
of the Company or any similar corporate reorganization (other than a merger or consolidation with a wholly-owned subsidiary, a
reincorporation of the Company in a different jurisdiction, or other transaction in which there is no substantial change in the
stockholders of the Company or their relative stock holdings) on or after the date hereof (a “Restructuring”), then
as a condition to such Restructuring, lawful and adequate provisions shall be made so that in each such case the holder of this
Warrant, upon the exercise hereof at any time after the consummation of such reclassification, change or reorganization, shall
be entitled to receive, in lieu of the stock or other securities and property receivable upon the exercise hereof prior to such
consummation, the stock or other securities or property to which such holder would have been entitled upon such consummation if
such holder had exercised this Warrant immediately prior thereto, all subject to further adjustment as provided in paragraph (a);
and in each such case, the terms of this Section 2 shall be applicable to the shares of stock or other securities properly receivable
upon the exercise of this Warrant after such consummation.

 

(c)          When
any adjustment is required to be made in the Purchase Price or the number of shares of Warrant Stock issuable upon exercise of
this Warrant, the Company shall promptly mail to the Registered Holder in accordance with Section 8 hereof a certificate setting
forth the Purchase Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment. Such
certificate shall also set forth the kind and amount of stock or other securities or property into which this Warrant shall be
exercisable following the occurrence of any of the events specified in this Section 2.

 

    	 

    	 

    

 

3.          Transfers.

 

(a)          The
Registered Holder acknowledges that this Warrant and the Warrant Stock have not been registered under the Securities Act, and agrees
not to sell, pledge, distribute, offer for sale, transfer or otherwise dispose of this Warrant or any Warrant Stock issued upon
its exercise in the absence of (i) an effective registration statement under the Securities Act as to this Warrant and such Warrant
Stock and registration or qualification of this Warrant and such Warrant Stock under any applicable “blue sky” or state
securities law then in effect, or (ii) an opinion of counsel, reasonably satisfactory to the Company, that such registration and
qualification are not required.

 

(b)          The
Company will maintain a register containing the name and address of the Registered Holder. The Registered Holder may change his
or her address as shown on the warrant register by written notice to the Company requesting such change.

 

4.          No
Impairment. The Company will not, by amendment of its charter or through reorganization, consolidation, merger, dissolution,
sale of assets or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this
Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such action
as may be necessary or appropriate in order to protect the rights of the holder of this Warrant against impairment.

 

5.          Termination.
This Warrant (and the right to purchase securities upon exercise hereof) shall terminate upon the Termination Date.

 

6.          Reservation
of Stock. The Company covenants and agrees that all shares of Warrant Stock that may be issued upon the exercise of the
rights represented by this Warrant will, upon issuance, be duly authorized, validly issued, fully paid and non-assessable. The
Company will at all times reserve and keep available, solely for the issuance and delivery upon the exercise of this Warrant, such
shares of Warrant Stock and other stock, securities and property, as from time to time shall be issuable upon the exercise of this
Warrant. The Company will take all such action as may be necessary to assure that such shares of Warrant Stock may be issued as
provided herein without violation of any applicable law or regulation, or of any requirements of any domestic securities exchange
or quotation system upon which the Warrant Stock may be listed or quoted.

 

7.          Replacement
of Warrants. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation
of this Warrant and (in the case of loss, theft or destruction) upon delivery of a reasonable indemnity agreement (with surety
if reasonably required) in an amount reasonably satisfactory to the Company, or (in the case of mutilation) upon surrender and
cancellation of this Warrant, the Company, at its own expense, will issue, in lieu thereof, a new Warrant of like tenor.

 

8.          Mailing
of Notices. All notices hereunder shall be made in writing to the parties at the addresses listed below or at such other
address as shall be given by mail with postage paid and certified or registered or by facsimile or delivery via courier to the
respective parties. Mailed notices shall be deemed to be delivered three days following the date of such mailing. Facsimile transmissions
shall be deemed to be delivered on the date of the transmission, so long as a receipt confirming that the transmission was successful
is received. Notices delivered by courier shall be deemed to be received on the date of delivery by the courier service. Notices
shall be addressed (a) if to the Registered Holder, to the following address

 

    	 

    	 

    

  

Dr. Robert Breidenthal

  

and (b) if to the Company, to the following
address:

 

ClearSign Combustion Corporation

12201 Tukwila International Boulevard

Seattle, Washington 98168

Attn.: Chief Executive Officer

 

9.          No
Rights as Shareholder. Until the exercise of this Warrant, the Registered Holder of this Warrant shall not have or exercise
any rights by virtue hereof as a shareholder of the Company.

 

10.         No
Fractional Shares. No fractional shares of Common Stock will be issued in connection with any exercise hereunder. In lieu
of any fractional shares which would otherwise be issuable, the Company shall pay an amount equal to the product of such fraction
multiplied by the fair market value of one share of Common Stock on the date of exercise.

 

11.         Amendment
or Waiver. Any term of this Warrant may be amended or waived upon written consent of the Company and the Registered Holder.
Any such waiver of a breach of any provision of this Warrant shall not operate as or be construed to be a waiver of any other breach
of such provision or of any breach of any other provision of this Warrant.

 

12.         Representations
of Holder. The Registered Holder hereby represents and warrants to the Company that: (a) he or she has had access to and
is familiar with information concerning the Company’s business, affairs, financial condition, and prospects and (b) he or
she has such knowledge and experience in financial and business matters that he or she is capable of evaluating the merits and
risks of accepting the Warrant.

 

13.         Headings.
The headings in this Warrant are for purposes of reference only and shall not limit or otherwise affect the meaning of any provision
of this Warrant.

 

14.         Governing
Law. This Warrant shall be governed, construed and interpreted in accordance with the laws of the State of Washington,
without giving effect to principles of conflicts of law.

 

15.         No
Assignment. This Warrant is not assignable or transferable by the Registered Holder.

 

    	 

    	 

    

 

 

	 	CLEARSIGN COMBUSTION CORPORATION
	 	 
	 	By:	/s/ Richard Rutkowski
	 	Name:  Richard Rutkowski, Chief Executive Officer

 

    	 

    	 

    

 

EXHIBIT A

 

PURCHASE FORM

 

	To:	ClearSign Combustion Corporation	Dated:

  

The undersigned, pursuant to the provisions
set forth in the attached Warrant, hereby irrevocably elects to purchase _________________ shares of the Common Stock covered by
Warrant Number A-1 and herewith makes payment of $_____________, representing the full purchase price for such shares at the price
per share provided for in such Warrant.

 

	 	Signature:	 
	 	 	 
	 	Address:

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