Document:

Unassociated Document

     

    

     

    EMPLOYMENT
CONTRACT

     

    This employment contract dated this
_l 7th_ day of September , 2008_ BETWEEN:

     

    CROWNBUTTE
WIND POWER, Inc.

    111 5th Avenue
NE

    Mandan,
North Dakota

    58554

    (the
"Employer")

    OF THE FIRST PART 

     

    AND

     

    Terry
G. Pilling, Ph.D.

    (the
"Employee")

    OF THE
SECOND PART

     

     

    WHEREAS:

     

    
      	
              1. 

            	
              The
      Employer is duly organized and existing under the laws of the State of
      North Dakota.

            

    

    
      	
              2. 

            	
              The
      Employer is of the opinion that the Employee has the necessary
      qualifications, experience, and abilities to assist and benefit the
      Employer in its business.

            

    

    
      	
              3. 

            	
              The
      Employer desires to employ the Employee, and the Employee has agreed to
      accept and enter such employment upon the terms and conditions set out in
      this Agreement.

            

    

    

    IN CONSIDERATION OF the
matters described above and of the mutual benefits and obligations set forth in
the Agreement, the receipt and sufficiency of which consideration is hereby
acknowledged, the parties to this Agreement agree as follows:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    Governing Law

    
      	
              1. 

            	
              This
      Agreement will be construed in accordance with and governed by the laws of
      the State of North Dakota.

            

    

     

    Commencement
Date and Term

    
      
        	
                2. 

              	
                The
      Employee will commence full-time employment with the Employer
      on

              

      

    

     

    1
October 2008

    (the
commencement date)

     

    Termination

    
      	
               
      3. 

            	
              Subject
      to termination as provided in this Agreement, the Employee is employed
      full time. The parties acknowledge that various provisions of this
      Agreement survive past termination of
  employment.

            

    

     

    Position
and Duties

    
      
        	
                 
      4. 

              	The Employer agrees to employ the Employee
  as

      

       

    

    Chief
of Operations and Technology

     

    
      	
               
      5. 

            	
              and
      the Employee agrees to be employed on the terms and conditions set out in
      this Agreement. The Employee agrees to be subject to the general
      supervision of and act pursuant to the orders, advice and direction of the
      Employer.

            

    

     

    
      	
               
      6. 

            	
              The
      Employee will perform any and all duties now and later assigned to the
      Employee by the Employer. The Employee will also perform such other duties
      as are customarily performed by one holding such a position in other, same
      or similar businesses or enterprises as that engaged in by the
      Employer.

            

    

     

    
      	
               
      7. 

            	
              The
      Employee agrees to abide by the Employer's rules, regulations, and
      practices, including those concerning work schedules, safety procedures
      and sick leave, as they may from time to time be adopted or
      modified.

            

    

     

    Employee
Compensation

    
      	
               
      8. 

            	
              For
      the services rendered by the Employee as required by this Agreement, the
      Employer will compensate the employee a yearly salary of $100,000.00 gross. In
      addition to this salary the employee shall be eligible for a SIMPLE
      Pension Plan in which the Company shall match the employee's contribution.
      The Employee must have received at least $1600.00 in total compensation in
      any one preceding calendar
      year for the SIMPLE Pension Plan to begin on the first day of the
      following year. This compensation will be payable once a month on the
      first day of the following month while this Agreement is in force. The
      Employer is entitled to deduct from the Employee's compensation any
      applicable deductions and remittances as required by law. Any future
      increases in salary or other compensation shall be become an integral part
      of this agreement and be detailed in addendums to be attached
      hereto.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      

    

     

    
      
        	
                 
      8. 

              	In the event that Crownbutte becomes a publicly traded
      company, the employee shall
      be offered the opportunity to acquire stock options through a company plan
      whereby the company shall contribute one half (1/2) the value of the stock
      as part Employee's compensation. The Company's contribution to this stock
      option plan shall not exceed fifteen percent (15%) of the employee's gross
      annual salary.

      

    

     

    
      	
               
      9. 

            	
              The
      Employee understands that the Employee's compensation as provided in this
      Agreement will constitute the full and exclusive monetary consideration
      and compensation for all services performed by the Employee and for the
      performance of all the Employee's promises and obligations in this
      Agreement.

            

    

     

    
      	
               
      10. 

            	
              The
      Employee understands and agrees that any additional compensation to the
      Employee (whether a bonus or other form of additional compensation) will
      rest in the sole discretion of the Employer, and the Employee will not
      earn or accrue any right to additional compensation by reason of the
      Employee's employment.

            

    

     

    
      	
               
      11. 

            	
              The
      Employer will reimburse the Employee for all necessary expenses incurred
      by the Employee while traveling pursuant to the Employer's
      directions.

            

    

     

    
      	
               
      12. 

            	
              The
      Employer agrees to permit a reasonable degree of flexibility in work
      hours. In cases where extra time is worked in a day or a week, the
      employee waives any right to overtime pay or to equivalent time off in
      place of overtime pay.

            

    

     

    Employee
benefits

    
      	
               
      13. 

            	
              The
      Employee will be entitled to only those additional benefits that are
      currently in place for the Employer's employees as set out in the
      Employment Contracts for those holding the same or similar
      positions.

            

    

     

    
      	
               
      14. 

            	
              All
      benefits provided by the Employer are in the Employer's sole discretion
      and are subject to change, without compensation, upon the Employer
      providing the Employee with 60 days written notice of such change to the
      benefits.

            

    

     

    
      	
               
      15. 

            	
              

                Vacation.
      Regular full-time salaried employees are eligible to participate in the
      vacation plan. Vacation is accrued monthly based on 1/12th
      of the annual amounts.
      No more than one full year's vacation days maybe carried forward to the
      following year. Vacation increases with service in accordance with the
      following schedule:

              

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      

    

     

    
      	
              Years
      of Continuous Service at

              Time
      of Vacation

            	
              Amount
      of Vacation

            
	
              0
      but fewer than 3

            	
              (10
      days) 2 weeks

            
	
              3
      but fewer than 10

            	
              (15
      days) 3 weeks

            
	
              10
      and greater

            	
              (20
      days) 4 weeks

            

    

    Vacations
of more than five consecutive work days can only be taken with the employer's
consent. Employees should give at least one week's notice (7 days) when
requesting vacation of more than two consecutive days. Should employment
terminate, the employee retire, receive a military leave of absence for active
duty in the military services, or be unable to take sufficient vacation days
because operational requirements of the Employer, the employee shall receive pay
in lieu of any vacation to which the employee is entitled.

    

    Holidays

    
      	
               
      16. 

            	
              Paid
      holidays are New Year's Day, Good Friday, Memorial Day, Independence Day,
      Labor Day, Veterans' Day, Thanksgiving Day and Christmas Day. A holiday
      occurring on a Saturday or Sunday is observed the preceding Friday or
      succeeding Monday.

            

    

    

    Other
Paid Time Off (Sick Leave, Doctor Appointments & Funeral Leave)

    
      	
               
      17. 

            	
              Other
      paid time off accrues at the rate of eight (8) hours per month (12 days
      per year), up to a Maximum of 30 days that can be accumulated. Employees
      are not compensated for unused “other
      paid time off”
      upon termination, retirement or military leave of absence. Other
      paid time off can be used for sick leave, doctor appointments, caring for
      a sick parent, son or daughter and for funeral leave. Employees who are
      absent due to illness must notify their employer on the first day of such
      absence, normally within the first hour of work. Failure to notify the
      employer of the reason for the absence may result in the absence being
      considered unexcused and without pay. Failure to notify for two
      consecutive days may result in termination of
  employment.

            

    

    

    Duty
to Devote Full Time

    
      	
               
      18. 

            	
              The
      Employee agrees to devote full-time efforts to his duties as an Employee
      of the Employer.

            

    

    

    Avoiding
Conflict of Opportunities

    
      	
               
      19. 

            	
              It
      is understood and agreed that any business opportunity relating to or
      similar to the Employer's current or anticipated business opportunities
      (with the exception of personal investments in less than 5% of the equity
      of a business, investments in established family businesses, real estate,
      or investments in stocks and bonds, traded on public stock exchanges)
      coming to the attention of the Employee during the Employee's employment
      is an opportunity belonging to the Employer. Therefore, the Employee will
      advise the Employer of the opportunity and cannot pursue the opportunity,
      directly or indirectly, without the written consent of the
      Employer.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      

    

    

    
      	
               
      20. 

            	
              Without
      the written consent of the Employer, the Employee further agrees not to:
      

              a.
      solely or jointly with others undertake or join any planning for or
      organization of any business activity competitive with the current or
      anticipated business activities of the Employer;
  and

            

    

     

    b.
directly or indirectly, engage or participate in any other business activities
that the Employer, in his reasonable discretion, determines to be in conflict
with the best interests of the Employer.

     

    Inability
to Contract for the Employer

    
      	
               
      21. 

            	
              In
      spite of anything contained in this Agreement to the contrary, the
      Employee will not have the right to make any contracts or commitments for
      or on the behalf of the Employer without first obtaining the express
      written consent of the Employer.

            

    

     

    Confidential
Information and Assignment of Inventions

    
      
        	
                 
      22. 

              	The Employee acknowledges in any position the Employee
      may hold, in and as a result
      of the Employee's employment by the Employer, the Employee will, or
      may,
      be making use of, acquiring or adding to information about certain matters
      and
      things which are confidential to the Employer and which information is the
      exclusive
      property of the Employer, including, without
  limitation:

      

    

    
      	
               
      

            	
              a.
      confidential Information means all data and information relating to the
      business and management of Employer, including proprietary and trade
      secret technology and accounting records to which access is obtained by
      the Employee, including Work Product, Computer Software, Other Proprietary
      Data, Business Operation, Marketing and Development Operations, and
      Customers. Confidential Information will also include any information that
      has been disclosed by a third party to the Employer and governed by a
      non-disclosure agreement entered into between the third party and the
      Employer. Confidential Information will not include information
      that:

            

    

    
      
        
          
            	
                  	
                    i. 

                  	
                    is generally known in the industry of the
      Employer; 

                  

          

          
            	
                  	
                    ii. 

                  	
                    is now or subsequently becomes generally available
      to the public through no wrongful act of the
  Employee;

                  

          

        

      

       

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
         

        

      

       

      
        
          
            	
                  	
                    iii. 

                  	
                    the
      Employee rightfully had in his possession prior to the disclosure to
      Employee by the Employer; 

                  

          

          
            	
                  	
                    iv. 

                  	
                    is
      independently created by the Employee without direct orindirect
      use of the Confidential Information; 

                  

          

          
            	
                  	
                    v. 

                  	
                    or,
      the Employee rightfully obtains from a third party whohas
      the right to transfer or disclose
it.

                  

          

        

      

    

     

    Obligations
of Confidentiality

    
      	
               
      23. 

            	
              The
      Employee agrees that a material term of the Employee's contract with the
      Employer is to keep all Confidential Information absolutely confidential
      and protect its release to the public. The Employee agrees not to divulge,
      reveal, report or use, for any purpose, any of the Confidential
      Information which the Employee has obtained or which was disclosed to the
      Employee by the Employer as a result of the Employee's employment by the
      Employer. The Employee agrees that if there is any question as to such
      disclosure, then the Employee will seek out senior management of the
      Employer prior to making any disclosure of the Employer's information that
      may be covered by this Agreement.

            

    

    
      	
               
      24. 

            	
              The
      obligations to ensure and protect the confidentiality of the Confidential
      Information imposed on the Employee in this Agreement and any obligations
      to provide notice under this Agreement will survive the expiration or
      termination, as the case may be, of this Agreement and will continue for a
      period of five (5) years from the date of such expiration or
      termination.

            

    

    
      
        	
                 
      25. 

              	
                The Employee may disclose any of the Confidential
      Information:

              

      

    

    
      
        	
              	
                a. 
      

              	
                to
      a third party where Employer has consented in writing to suchdisclosure;
      and

              

      

      
        	
              	
                b. 
      

              	
                to
      the extent required by law or by the request or requirement of any
      judicial, legislative, administrative or other governmental body; however,
      the Employee will first have given prompt notice to the Employer of any
      possible or prospective order (or proceeding pursuant to which any order
      may result), and the Employer will have been afforded a reasonable
      opportunity to prevent or limit any
disclosure.

              

      

       

    

    Ownership
and Title

    
      	
               
      26. 

            	
              The
      Employee acknowledges and agrees that all rights, title and interest in
      any Confidential Information will remain the exclusive property of the
      Employer, Accordingly, the Employee specifically agrees and acknowledges
      that he will have no interest in the confidential information, including,
      without limitation, no interest in know-how, copyright, trade-marks or
      trade names, notwithstanding the fact that he may have created or
      contributed to the creation of the
same.

            

    

    
      	
               
      27. 

            	
              This
      Agreement will not apply in respect of any intellectual property, process,
      design, development, creation, research, invention, know-how, trade names,
      trade-marks or copyrights for
which:

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
         

        

      

       

    

    
      
        
          	
                	
                  a.

                	
                  no
      equipment, supplies, facility or Confidential Information of the Employer
      was used; and

                

        

        
          	
                	
                  b.

                	
                  which was developed entirely on the Employee's own
      time; and

                

        

        
          	
                	
                  c.

                	
                  does not: 

                

        

        
          	
                	
                  i.

                	
                  relate to the business of the Employer 

                

        

        
          	
                	
                  ii.

                	
                  relate to the Employee's actual or demonstrably
      anticipated process, research or development, or: 

                

        

        
          	
                	
                  iii.

                	
                  result
      from any work performed by the Employee for the
      Employer.

                

        

      

    

     

    
      	
               
      28. 

            	
              The
      Employee agrees to immediately disclose to the Employer all confidential
      Information developed in whole or in part by the Employee during the term
      of the Employee's employment with the Employer and to assign to the
      Employer any right, title or interest the Employee may have in the
      Confidential Information. The Employee agrees to execute any instruments
      and to do all other things reasonably requested by the Employer (both
      during and after the Employee's employment with the Employer) in order to
      vest more fully in the Employer all ownership rights in those items
      transferred by the employee to the
Employer.

            

    

     

    Return
of the Confidential Information

    
      	
               
      29. 

            	
              The
      Employee agrees that, upon request of the Employer or upon termination or
      expiration, as the case may be, of employment, the Employee will turn over
      to the Employer all documents or other computer media, or other material
      in the possession or control of the Employee
  that:

            

    

    
      
        	
              	
                a,

              	
                may
      contain or be derived from ideas, concepts, creations, or trade secrets
      and other proprietary and Confidential Information as defined in this
      Agreement; or

              

      

      
        	
              	
                b.

              	
                connected
      with or derived from the Employee's services to the
    Employer.

              

      

    

     

    Non-solicitation

    
      	
               
      30. 

            	
              Any
      attempt on the part of the Employee to induce others to leave the
      Employer's employ or to interfere with the Employer's relationship with
      his other employees and contractors would be harmful and damaging to the
      Employer. The Employee agrees that during the term of his employment with
      the Employer and for a term of five (5) years following it, the Employee
      will not in any way, directly or
indirectly:

            

    

    
      
        	
              	
                a.

              	
                induce
      or attempt to induce any employee or contractor of the Employer
      toquit
      employment or retainer with the Employer; 

              

      

      
        	
              	
                b.

              	
                otherwise
      interfere with or disrupt the Employer's relationship with hisemployees
      and contractors; 
      

              

      

      
        	
              	
                c.

              	
                discuss
      employment opportunities or provide information about competitive
      employment to any of the Employer's employees or
    contractors;

              

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      

    

     

    
      
        	
              	
                d.

              	
                solicit,
      entice, or hire away any employee or contractor of the Employer. This
      obligation will be limited to those who were employees or contractors of
      the Employer at the time the Employee was employed by the
      Employer.

              

      

    

     

    Non-Competition

    
      	
               
      31. 

            	
              Other
      than through employment with a bona-fide independent party, or with the
      express written consent of the Employer, which will not be unreasonably
      withheld, the Employee will not, during the continuance of this Agreement
      or within two (2) years after the termination or expiration, as the case
      may be, of this Agreement, be directly or indirectly involved with a
      business which is in direct competition with the particular business line
      of the Employer.

            

    

    
      	
               
      32. 

            	
              For
      a period of two (2) years from the date of termination or expiration, as
      the case may be, of the Employee's employment with the Employer, the
      Employee will not divert or attempt to divert from the Employer any
      business the Employer had enjoyed, solicited, or attempted to solicit,
      from its customers, prior to termination or expiration, as the case maybe,
      of the Employee's employment with the
employer.

            

    

     

    Termination
Due to Discontinuance of Business or Downsizing for Lack of Work

    
      	
               
      33. 

            	
              In
      spite of anything contained in this Agreement to the contrary, in the
      event that the Employer will discontinue operating its business or be
      forced to reduce the amount of personnel under hire because of Lack of
      Work, then, at the Employer's sole option, this Agreement will terminate
      as of the last day of the month in which the Employer ceases operations at
      such location with the same force and effect as if such last day of the
      month were originally set as the termination date of this
      Agreement.

            

    

     

    Termination
for Disability

    
      	
               
      34. 

            	
              In
      spite of anything contained in this Agreement to the contrary, the
      Employer has the sole option to terminate this Agreement in the event that
      the Employee, during the term of this Agreement, becomes Permanently
      Disabled, as defined in the Agreement. Such option will be exercised by
      the Employer giving notice to the Employee by personally delivering to the
      Employee or by registered mail addressed to the Employee of the Employer's
      intention to terminate this Agreement on the last day of the month during
      which such notice is mailed. On the giving of such notice, this Agreement
      will cease on the last day of the month in which the notice is so
      delivered or mailed, with the same force and effect as if such last day of
      the month was the date originally set forth in this Agreement as the
      termination date of the Agreement.

            

    

    
      	
               
      35. 

            	
              For
      the purposes of this Agreement, the Employee will be deemed to have become
      permanently disabled, if, during any year of the term of the Agreement,
      because of ill health, physical or mental disability or for other causes
      beyond the Employer's control, he will have been continuously unable or
      unwilling or will have failed to perform his duties under this Agreement
      for sixty (60) consecutive days, or if, during any year of the term of
      this Agreement, the Employee will have been unable or unwilling or will
      have failed to perform his duties for a total period of 120 days,
      irrespective of whether or not such days are consecutive. For the purposes
      of this Agreement, the term "any year of the term of this Agreement" means
      any 12 calendar month period commencing on l
      st day of January, and
      terminating on 3 1 st day
      of December, during the term of this
Agreement.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      

    

    Termination
of Employment

    
      	
               
      36. 

            	
              Where
      the Employee has breached any of the terms of this Agreement or where
      there is just cause for termination, the Employer may terminate the
      Employee's employment without
notice.

            

    

    
      	
               
      37. 

            	
              The
      Employee and the Employer agree that reasonable and sufficient notice of
      termination of employment by the Employer is the greater of one month and
      any notice required under any relevant employment
    legislation.

            

    

    
      	
               
      38. 

            	
              If
      the Employee wishes to terminate his employment with the Employer, the
      Employee will provide the Employer with one month's notice. Alternatively,
      if the Employee cooperates with the training and development or a
      replacement, then sufficient notice is given if it is sufficient notice to
      allow the Employer to find and train the
  replacement.

            

    

    
      	
               
      39. 

            	
              Should
      the Employee terminate his employment pursuant to this Agreement, and
      there is no constructive dismissal, the Employee agrees to be reasonably
      available as a consultant for the purposes of maintaining any projects or
      developments created while employed by the Employer. The Employee agrees
      to negotiate the terms of the consulting work in good faith. In his
      capacity as a consultant for the Employer pursuant to this paragraph, the
      employee agrees to provide his present residential address and telephone
      number as well as his business address and telephone
    number.

            

    

    
      	
               
      40. 

            	
              The
      time specified in the notice by either the Employee or the Employer may
      expire on any day of the month, and upon the date of termination, the
      Employer will forthwith pay to the Employee any outstanding portion of the
      wage, accrued vacation and banked time, if any, calculated to the date of
      termination. Notwithstanding the date of termination, the Employee
      acknowledges and agrees to diligently execute and complete his employment
      responsibilities to the Employer at the reasonable direction of the
      Employer. Failure of the Employee to responsibly execute his obligations
      to the Employer during the notice period will be considered to be an
      abandonment of his obligations and will be sufficient cause for immediate
      termination of the Employee without compensation or
  notice.

            

    

     

    Remedies

    
      	
               
      41. 

            	
              The
      Employee agrees and acknowledges that the Confidential Information is of a
      proprietary and confidential nature, and that any disclosure of the
      Confidential Information to a third party in breach of this Agreement
      cannot be reasonably or adequately compensated for in money damages, would
      cause irreparable injury to the Employer, would gravely affect the
      effective and successful conduct of the Employer's business and goodwill,
      and would be a material breach of this
Agreement

            

    

    
      	
               
      42. 

            	
              In
      the event of a breach or threatened breach by the Employee of any of the
      provisions of this Agreement, the Employee agrees that the Employer is
      entitled to, in addition to and not in limitation of any other rights and
      remedies available to the Employer at law or in equity, to a permanent
      injunction in order to prevent or restrain any such breach by the Employee
      or by the Employee's partners, agents, representatives, servants,
      employees, and/or any and all persons directly or indirectly acting for or
      with the Employee.

            

    

    
      	
               
      43. 

            	
              The
      Employee agrees to cooperate with the Employer following termination by
      providing documentation and other information to permit the Employer to
      evaluate whether the Employee is honoring his post-employment obligations
      set out in this Agreement.

            

    

     

    Serverability

    
      	
               
      44. 

            	
              Employer
      and Employee acknowledge that this Agreement is reasonable, valid and
      enforceable. However, if a court of competent jurisdiction finds any of
      the provisions of this agreement to be too broad to be enforceable, it is
      the parties' intent that such provisions be reduced in scope by the court
      only to the extent deemed necessary by the court to render the provision
      reasonable and enforceable, bearing in mind that it is the Employee's
      intention to give the Employer the broadest possible protection against
      disclosure of the Confidential Information, against the Employee
      soliciting the Employer's employees and contractors, and against the
      Employee using such Confidential Information in competing with the
      Employer.

            

    

    
      	
               
      45. 

            	
              In
      the event that any of the provisions of this Agreement will be held to be
      invalid or unenforceable in whole or in part, those provisions to the
      extent enforceable and all other provisions will nevertheless continue to
      be valid and enforceable as though the invalid or unenforceable parts had
      not been included in this Agreement and the remaining provisions had been
      executed by both parties subsequent to the expunging of the invalid
      provision.

            

    

     

    Notices

    
      	
               
      46. 

            	
              If
      Employee loses or makes unauthorized disclosure of any of the Confidential
      Information, the Employee will immediately notify the Employer and take
      all reasonable steps necessary to retrieve the lost or improperly
      disclosed Confidential Information.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    Modification
of Agreement

    
      	
               
      47. 

            	
              Any
      amendment or modification of this Agreement or additional obligations
      assumed by either party in connection with this Agreement will only be
      binding if evidenced in writing signed by each party or an authorized
      representative of each party.

            

    

     

    Governing
Law

    
      	
               
      48. 

            	
              It
      is the intention of the parties to this Agreement that this Agreement and
      the performance under this Agreement, and all suits and special
      proceedings under this Agreement, be construed in accordance with and
      governed, to the exclusion of the law of any other forum, by the laws of
      the State of North Dakota, without regard to the jurisdiction in which any
      action or special proceedings may be
instituted.

            

    

     

    General
Provisions

    Headings
are inserted for the convenience of the parties only and are not to be
considered when interpreting this Agreement. Words in the singular
mean   and include the plural and vice versa. Words in the masculine
mean and include the feminine and vice versa.

    
      	
               
      49. 

            	
              The
      Employee is liable for all costs, expenses and expenditures including, and
      without limitation, the complete legal costs incurred by the Employer in
      enforcing this Agreement as a result of any default of this Agreement by
      the Employee.

            

    

    
      	
               
      50. 

            	
              No
      failure or delay by the Employer in exercising any power, right or
      privilege provided in this Agreement will operate as a waiver, nor will
      any single or partial exercise of such rights, power or privileges
      preclude any further exercise of them or the exercise of any other right,
      power or privilege provided in this
Agreement.

            

    

    
      	
               
      51. 

            	
              This
      Agreement will inure to the benefit of and be binding upon the respective
      heirs, executors, administrators, successors and assigns, as the case may
      be, of the Employer and the
Employee.

            

    

    
      	
               
      52. 

            	
              This
      Agreement may be executed in counter parts, facsimile signatures are
      binding and are considered to be original
  signatures.

            

    

    
      	
               
      53. 

            	
              If
      there is a previous employment agreement between the parties to this
      Agreement, the parties agree that this Agreement will replace that
      previous employment agreement, and the Employee acknowledges that this
      Agreement was entered into in consideration of a compensation increase
      commencing the start of this Agreement. The Employee acknowledges that it
      was agreed at that time that a new employment agreement would be entered
      into in consideration of the compensation
  increase.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      

    

     

    
      	
               
      54. 

            	
              This
      Agreement constitutes the entire agreement between the parties and there
      are no further items or provisions, either oral or written. As of the
      effective date of this Agreement, this Agreement supersedes all other
      agreements between the parties. The parties to this Agreement stipulate
      that neither of them has made any representations with respect to the
      subject matter of this Agreement except such representations as are
      specifically set forth in this Agreement. Each of the parties acknowledges
      that it has relied on its own judgment in entering into this
      Agreement.

            

    

     

    IN WITNESS WHEREOF Crownbutte
Wind Power, Inc. has duly affixed its signature by a duly authorized officer
under seal and

    has duly
signed under hand and seal the 17 day of September, 2008 . 

     

    
      
        	
                Crownbutte Wind Power,
      Inc. 

              	 	 	
                Terry G. Pilling,
      Ph.D. 

              	 
	
                (SEAL) 

              	 	 	 	 
	 	 	 	 	 
	
                

              	 	 	
                

              	 
	
                
                  Timothy
      H. Simons 

                  President
      and CEOAMENDMENT NO. 1 TO RIGHTS AGREEMENT 

 

This Amendment No. 1, dated as of June 18, 2009 (this "Amendment No. 1"), to the Rights Agreement, dated as of June 1, 2007 (the "Rights Agreement"), between Eden Bioscience Corporation, a Washington corporation (the "Company"), and Mellon Investor Services LLC, as rights agent (the "Rights Agent"). 

 

W I T N E S S E T H:

 

WHEREAS, the Company and the Rights Agent have previously entered into the Rights Agreement;

 

WHEREAS, on December 4, 2008, the Company's board of directors (the "Board") approved the voluntary dissolution and liquidation of the Company pursuant to a plan of complete dissolution and liquidation of the Company (the "Plan"), subject to shareholder approval;

 

WHEREAS, on May 20, 2009, the Company's shareholders approved the voluntary dissolution and liquidation of the Company pursuant to the Plan; 

 

WHEREAS, Section 23B.14.030(2) of the Washington Business Corporation Act (the "WBCA") provides that a corporation is dissolved upon the effective date of its articles of dissolution;

 

WHEREAS, on June 18, 2009 the Company filed its articles of dissolution (the "Articles") with the Secretary of State of the State of Washington pursuant to Section 23B.14.030(1) of the WBCA and the Articles will become effective at 5:00 p.m. Pacific time on June 29, 2009 (the "Effective Date"); 

 

WHEREAS, pursuant to the Plan, from and after the Effective Date, and subject to applicable law, the Company's common stock, par value $0.0025 per share (the "Common Stock"), will be treated as no longer outstanding and each holder of Common Stock will cease to have any rights with respect to the Common Stock, except the right to receive distributions pursuant to and in accordance with the Plan;

 

WHEREAS, in view of the deemed cancellation of each outstanding share of Common Stock after the Effective Date pursuant to the Plan, the Company wishes to clarify that the Rights will no longer be outstanding after the Effective Date;

 

WHEREAS, the Company desires to amend the Rights Agreement to change the date on which the Expiration Date will occur in accordance with Section 26 thereof; 

 

WHEREAS, the Board has approved this Amendment No. 1; and 

 

NOW, THEREFORE, in consideration of the foregoing and mutual agreements set forth in the Rights Agreement and this Amendment No. 1, the parties agree as follows: 

 

1.         Amendment to Definition of "Expiration Date".  Section 7(a) of the Rights Agreement is amended to read in its entirety as follows: 

 

"Subject to Section 7(e) hereof and except as otherwise provided in this Rights Agreement (including Section 11 hereof), each Right shall entitle the registered holder thereof, upon exercise thereof as provided in this Rights Agreement, to purchase for the Purchase Price, at any time after the Distribution Date and at or prior to the earlier of (i) June 29, 2009 (the Close of Business on such date 

 

-1-

 

being the "Expiration Date") and (ii) the Redemption Date, one one-hundredth (1/100) of a Preferred Share, subject to adjustment from time to time as provided in Sections 11 and 12 hereof."  

 

All references to June 1, 2017 in the Form of Rights Certificate attached as Exhibit B to the Rights Agreement and in the Summary of Rights to Purchase Preferred Shares attached as Exhibit C to the Rights Agreement shall instead mean June 29, 2009. 

 

2.         Addition of new Section 33.  A new Section 33 is hereby added reading in its entirety as follows:

 

"Section 33. TERMINATION  

 

Other than those provisions which by their terms survive the termination of this Agreement and the Rights, this Agreement and the Rights established hereby will terminate in all respects on June 29, 2009." 

 

3.         Definitions.  Terms not otherwise defined in this Amendment No. 1 shall have the meaning ascribed to such terms as in the Rights Agreement.  The term "Agreement" or "Rights Agreement" as used in the Rights Agreement shall be deemed to refer to the Rights Agreement as amended hereby, and all references to the Agreement or Rights Agreement shall be deemed to include this Amendment No. 1. 

 

4.         Governing Law.  This Amendment No. 1 shall be deemed to be a contract made under the laws of the state of Washington and for all purposes shall be governed by and construed in accordance with the law of such State applicable to contracts to be made and performed entirely within such State; provided, however, that all provisions of this Amendment No. 1 regarding the rights, duties and obligations of the Rights Agent shall be governed by and construed in accordance with the laws of the state of New York applicable to contracts made and to be performed entirely within such state, without regard to the principles or rules concerning conflicts of laws which might otherwise require application of the substantive laws
of another jurisdiction.

 

5.         Counterparts.  This Amendment No. 1 may be executed in one or more counterparts, all of which shall be considered one and the same agreement and shall become effective when one or more counterparts have been signed by each party and delivered to the other parties. 

 

6.         Descriptive Headings.  Descriptive headings of the several Sections of this Amendment No. 1 are inserted for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof. 

 

7.         Effectiveness.  This Amendment No. 1 shall be effective as of the date first written above, and except as expressly set forth herein, the Rights Agreement shall remain in full force and effect and otherwise shall be unaffected hereby.  Without limiting the foregoing, the Rights Agent shall not be subject to, nor required to interpret or comply with, or determine if any Person has complied with, the Plan, even though reference thereto may be made in this Amendment No. 1 and the Rights Agreement.

 

-2-

 

            IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to be duly executed as of the day and year first above written. 

 

	
             
 	
            EDEN BIOSCIENCE CORPORATION
 

 

	
             
 	
            By:__/s/ Nathaniel T. Brown_____________________
 

	
             
 	
            Name: Nathaniel T. Brown
 

	
             
 	
            Its: Chief Executive Officer, Chief Financial Officer and
 

	
             
 	
            Secretary
 

 

	
             
 	
            MELLON INVESTOR SERVICES LLC, as Rights
Agent
 

 

	
             
 	
            By: ___/s/ Thomas L. Cooper____________________
 

	
             
 	
            Name:  Thomas L. Cooper
 

	
             
 	
            Its:  Client Relationship Executive
 

 

 

 

-3-

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