Document:

a5784033ex10-1.htm

    Exhibit
10.1

     

     

    RESIGNATION
AND GENERAL RELEASE AGREEMENT

     

    This RESIGNATION AND GENERAL RELEASE
AGREEMENT (“Agreement”), made this 19th day of
September 2008, by and between Michael Patrick George (“Executive”), an individual,
and American States Water Company (“Company”), a California
corporation, is a resignation and general release of claims.

     

    W
I T N E S S E T H:

     

    WHEREAS, Executive became an
employee of the Company on February 12, 2007 pursuant to the terms of an
employment letter, dated February 8, 2007, between the Company and the Executive
(the “Employment
Letter”);

    

    WHEREAS, Executive desires to
resign from Company; and

    

    WHEREAS, Executive and the
Company want to mutually resolve and settle any and all claims, asserted or
unasserted, that one may have against the other, to the extent provided in this
Agreement, arising out of or in any way connected with his employment
relationship with the Company.

    

    NOW, THEREFORE, in
consideration of the covenants undertaken in this
Agreement,  Executive and Company agree as follows:

    

    1. Resignation.  Executive
hereby voluntarily resigns from his position as Executive Vice President of
Corporate Development and as an employee of Company in any other capacity by
executing Exhibit A attached hereto, such resignation to be effective September
26, 2008 (the “Effective
Date”).

     

    2. No
Violations.  Company and Executive each expressly denies any
violation of any of the Company’s policies, procedures, state or federal laws or
regulations.  Accordingly, while this Agreement resolves the issues,
if any, between Company and Executive relating to any alleged violation of
Company’s policies or procedures or any state or federal law or regulation, this
Agreement does not constitute an adjudication or finding on the merits and it is
not, and shall not be construed as, an admission by Company or Executive of any
violation of the Company’s policies, procedures, or any state or federal laws or
regulations.  Moreover, neither this Agreement nor anything in this
Agreement shall be construed to be or shall be admissible in any proceeding as
evidence of an admission by Company or Executive of any violation of the
Company’s policies, procedures, or any state or federal
regulations.  This Agreement may be introduced. however, in any
proceeding to enforce this Agreement.

     

    3. Release
of all Claims.  Except for those obligations of the Company
created by or arising out of Section 7 or 8 of this Agreement, Executive agrees
to release the Company and any parent, subsidiary, affiliated and related
entities, including their past, present, or future managers, directors,
administrators, officers, employees, agents, insurance companies, attorneys,
representatives, predecessors and assigns, and each of them (collectively,
“Company Released Parties”) from any and all claims, wages, demands, rights,
liens, agreements, contracts, covenants, actions, suits, causes of action,
obligations, debts, costs, expenses, attorneys’ fees, damages, judgments, orders
and liabilities of whatever kind or nature in law, equity or otherwise, whether
now known or unknown, suspected or unsuspected, and whether or not concealed or
hidden, which he now owns or holds or he has at any time heretofore owned or
held or may in the future hold as against the Company Released Parties, arising
out of or in any way connected with Executive’s employment relationship with
Company, the Employment Letter or his voluntary resignation from employment or
any other transactions, occurrences, acts or omissions or any loss, damage or
injury whatever, known or unknown, suspected or unsuspected, resulting from any
act or omission by or on the part of the Company Released Parties, or any of
them, committed or omitted prior to the date of this
Agreement.  Except for those obligations of the Executive created by
or arising out of this Agreement, Company agrees to release the Executive and
any affiliated and related entities, including his relatives, beneficiaries,
dependents, agents, insurance companies, attorneys, representatives and assigns,
and each of them (collectively, “Executive Released Parties”) from any and all
claims, demands, rights, liens, agreements, contracts, covenants, actions,
suits, causes of action, obligations, debts, costs, expenses, attorneys’ fees,
damages, judgments, orders and liabilities of whatever kind or nature in law,
equity or otherwise, whether now known or unknown, suspected or unsuspected, and
whether or not concealed or hidden, which Company now owns or holds or has at
any time heretofore owned or held as against the Executive Released Parties,
arising out of or in any way connected with Executive’s employment relationship
with Company, the Employment Letter or his voluntary resignation from employment
or any other transactions, occurrences, acts or omissions or any loss, damage or
injury whatever, known or unknown, suspected or unsuspected, resulting from any
act or omission by or on the part of the Executive Released Parties, or any of
them, committed or omitted prior to the date of this Agreement provided, however, that such
release of Executive and Executive Released Parties shall not extend to any
claims, known or unknown, suspected or unsuspected, against Executive or any
Executive Released Parties which arise out of facts which are finally judged by
a court of competent jurisdiction to be a crime under any federal, state, or
local statute law, ordinance or regulation.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    4. Identification
of Certain Claims Released by Executive.  The claims that
Executive is releasing include, but are not limited to all: (a) claims arising
out of his employment with the Company and his resignation from the Company; (b)
claims arising under the Employment Letter or the Company’s policies, plans, or
practices, including without limitation, promotion, compensation, bonuses, stock
options, severance pay, sick leave, holiday pay, vacation pay, life insurance,
health or medical insurance or any other fringe benefit, workers’ compensation
or disability benefits; (c) claims for breach of express or implied contract or
covenant of good faith and fair dealing; (d) all claims for violation of public
policy; (e) claims for constructive discharge; (f) claims for wrongful
discharge; (g) claims for retaliation; (h) claims for violation of state or
federal common law or statutory law, including without limitation, all claims
arising under the California Fair Employment and Housing Act, the California
Labor Code §132a, Title VII of the Civil Rights Act of 1964, as amended, the
Fair Labor Standards Act, the Employee Retirement Income Security Act, the
National Labor Relations Act, the Family and Medical Leave Act, the Americans
with Disabilities Act, the Age Discrimination in Employment Act, the
Sarbanes-Oxley Act of 2002, or other federal, state, or local laws relating to
employment or separation from employment or benefits associated with employment
or separation from employment; (i) claims for harassment; (j) claims for
emotional distress, mental anguish, humiliation, personal injury; and (k) claims
that may be asserted on Executive’s behalf by others, as well as any and all
claims that were asserted or that could have been asserted by
Executive.  Excluded from this release are claims that cannot be
waived or released by law and the payments and benefits to be provided to
Executive by Company pursuant to Sections 7 and 8.

     

     

    
      
        
        

      

      
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    5. Representation
of No Action Filed and Agreement Not to Sue.  Executive agrees
not to sue any of the Company Released Parties regarding any claim that has been
released in this Agreement.  Executive represents and warrants that he has
not initiated, and will not initiate any claim, charge, lawsuit, or other action
against any of the Company Released Parties (and that he has not transferred or
assigned that right to any other person or entity).  Executive
warrants and represents that Executive has not heretofore assigned or
transferred to any person not a party to this Agreement any released matter or
any part or portion thereof and Executive shall defend, indemnify and hold
harmless Company from and against any claim (including the payment of attorneys’
fees and costs actually incurred whether or not litigation is commenced) based
on or in connection with or arising out of any such assignment or transfer made,
purported or claimed.  Company agrees not to sue any of the Executive
Released Parties regarding any claim that has been released in this
Agreement.  Company represents and warrants that it has not initiated,
and will not initiate any such claim, charge, lawsuit, or other action against
any of the Executive Released Parties (and that it has not transferred or
assigned that right to any other person or entity).  Company warrants
and represents that Company has not heretofore assigned or transferred to any
person not a party to this Agreement any released matter or any part or portion
thereof and Company shall defend, indemnify and hold harmless Executive from and
against any claim (including the payment of attorneys’ fees and costs actually
incurred whether or not litigation is commenced) based on or in connection with
or arising out of any such assignment or transfer made, purported or
claimed.

     

     

    6. No
Further Recovery.  Executive understands and agrees that the
Company and the Company Released Parties shall neither make nor cause to be made
any additional relief to Executive, his beneficiaries or dependents, or
otherwise on his behalf, except as specifically referenced in this
Agreement.  Should any third party, including any state or federal
agency, bring any action or claim against the Company on Executive’s behalf,
either collectively or individually, Executive acknowledges and agrees that this
Agreement provides him with full relief and he will not accept any other
relief.  In addition, except to the extent such agreement is prohibited by
applicable law, Executive agrees that if he attempts to avoid or set aside the
terms of this Agreement, he will first return any and all benefits received
pursuant to this Agreement and that he shall be liable for reimbursing the
Company for the reasonable costs and attorneys’ fees in defending against such
action.

     

     

    7. Release
Payment.  Provided that the Agreement is not revoked by
Executive pursuant to its terms, Company shall pay to Executive at or about
September 29, 2008 an amount equal to his
current rate of pay for the period from September 19, 2008 through March 31,
2009, plus an amount equal to 4.5% of the portion of that amount that is
attributable to the Company match under the Company’s 401(k) Plan that he would
have received had he remained an employee through March 31, 2009 (for a total of
$206,811.82), less standard withholding and other authorized
deductions).  Such payment shall not be considered compensation under
any of the Company's benefit plans (including without limitation the 401(k)
plan).  Executive shall also be entitled to any salary that is earned
through September 19, 2009, but unpaid as of the Effective Date, and to any
other accrued vested benefits to which Executive is entitled as of the Effective
Date.  Executive shall not be entitled to any bonus for 2008 or
thereafter.

     

     

    
      
        
        

      

      
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    8. Additional
Benefits.  Provided that this Agreement is not revoked by
Executive pursuant to its terms, Executive shall be entitled to receive the
following additional benefits:

     

    (a)           Company
shall pay Executive a monthly retirement benefit in the amount of $1,832.28
commencing on the last day of the month in which he attains age 65 and ending as
of the first day of the calendar month in which his death occurs.  If,
however, Executive is married at the time his benefit payments under this
Agreement commence, his benefits shall instead be paid in the form of an annuity
for the life of Executive and a survivor annuity for the life of his spouse that
is 50% of the amount of the benefit payable during the joint lives of Executive
and his spouse and which is the actuarial equivalent of the single life annuity
otherwise payable to Executive under this Agreement (a “Joint and 50%
Annuity”).  For purposes of determining the amount payable during the
joint lives of Executive and his spouse under the preceding sentence, the
actuarial assumptions under the Golden State Water Company Pension Plan or its
successor (the “Pension Plan”) for purposes of calculating actuarially
equivalent benefits shall be used.  Notwithstanding the foregoing,
Executive and his spouse may elect that the benefit be paid in the form of any
other life annuity then offered under the Pension Plan and that is “actuarially
equivalent” (within the meaning of Treasury Regulation Section
1.409A-2(b)(2)(ii)(A)) to the benefits otherwise payable under this Agreement.
If Executive dies on or before the date on which he would have attained age 65,
his surviving spouse shall receive a survivor benefit equal to the survivor
benefit that she would have received if he had (i) lived until age 65, (ii)
elected the Joint and 50% Annuity described above and (iii) died on the day
after the day on which he would have attained age 65.

    

    (b)           Executive
shall have the right to obtain career transition services from Lee Hecht
Harrison from August 25, 2008 through February 24, 2009 for $9,500 to be paid by
the Company;

     

    (c)           Executive
shall have the right to receive an amount not to exceed $2,500 for a
cancellation of his residential apartment lease payable within thirty (30) days
after receipt of documentation satisfactory to the Company of the amount
Executive paid to cancel this lease;

     

    (d)           Executive
shall have the right to receive an amount not to exceed $5,500 for moving his
personal property to Marin County from La Verne, California payable within
thirty (30) days after receipt of documentation satisfactory to the Company of
the amount of such payment; and

     

    (e)           Company
will provide COBRA coverage to Executive and his eligible dependents until the
earlier of (i) eighteen (18) months from the Effective Date, and (ii) the first
date on which Executive is covered under another employer’s substantially
similar health benefit program without exclusion for any pre-existing medical
condition.  Company shall reimburse Executive for the costs of such
coverage promptly upon receipt of proof of payment of each premium.

     

    9. Equity
Compensation.  Executive hereby waives the rights, if any,
which he may have under the terms of his Employment Letter to any further grants
of equity compensation.  Executive further acknowledges that he shall
have only the rights under the terms of any awards granted to him pursuant to
the terms of the Company’s 2000 Stock Incentive Plan as exist pursuant to the
existing standard grant agreements therefor, as amended by Amendment No. 1 to
each of such agreements (copies of which are attached).

     

     

    
      
        
        

      

      
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    10. Executive’s
Participation in Litigation.

     

     

    (a)           Except
to the extent prohibited by applicable law, Executive agrees that (i) he will
not persuade, support, or convince others to raise claims against the Company or
any Company Released Party; (ii) he will not participate in any litigation or
proxy contest involving the Company or any of the Company Released Parties
except, in respect of litigation, at the request of the Company or unless he is
compelled by subpoena, court order or other requirement of law to participate in
a legal proceeding or as may be necessary to protect his rights under this
Agreement; and (iii) if he should be compelled to participate in litigation, he
will notify the Company immediately by contacting the Vice President of Human
Capital Management and will cooperate by making himself reasonably available to
discuss the subject of any testimony with the Company and its
counsel.  The service upon Executive of process requiring his
appearance to testify, or to produce writings or other items, at any trial,
deposition, administrative hearing, grand jury proceeding or before any other
legislative, administrative or judicial body shall be deemed a requirement of
law; provided, however, that prior to any testimony or production, Executive
shall promptly have notified Company of the service of process received and
shall have cooperated with Company’s efforts to obtain a protective order or
other restriction respecting the disclosure of the information
sought.  Nothing in this Agreement shall waive or diminish any
privilege or other defense or objection to the production or disclosure of
information that may otherwise be available to the Company or any other person
or entity.

     

     

    (b)           Executive further agrees to make himself
available upon reasonable notice by the Company to assist with any litigation
matters involving the Company.  In connection therewith, Company shall
reimburse Executive for his reasonable documented out-of-pocket expenses and pay
Executive an hourly fee of $250 for the time during which actual assistance is
provided to the Company, excluding, among other things, time required for meals
and overnight stays.

     

     

    11. No
Further Obligations of the Company.  Executive acknowledges
that the  consideration provided to him under this Agreement is
provided to him in full and complete satisfaction and discharge of any and all
obligations that the Company and/or any Company Released Party has or may have
to him on or before the date hereof, other than obligations arising after the
date of this Agreement under the express terms of this Agreement, and that, upon
receipt of the payment called for under paragraph 7, he will have been paid all
the wages, bonuses and benefits that are due to him.  Notwithstanding
the foregoing, Executive shall continue to enjoy rights to indemnification as
set forth in Article VIII of the Company’s Amended and Restated Bylaws and any
standard form Indemnification Agreement between the Executive and the Company
with respect to his service as an officer of the Company.

     

     

    12. Acknowledgments.  Executive
expressly acknowledges and agrees that, by entering into this Agreement, he is
waiving any and all rights or claims that he may have arising under the Age
Discrimination in Employment Act of 1967, as amended, which have arisen on or
before the date of execution of this Agreement.  Executive further
expressly acknowledges and agrees that:

     

     

    
      
        
        

      

      
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    (a)           In
return for this Agreement, he will receive compensation beyond that which he was
already entitled to receive before entering into this Agreement;

     

    (b)           Company
does not make and has not made any representations regarding the taxability of
the payment and benefits provided to him, and he has not relied upon any
representation by Company on that subject;

     

    (c)           He
was orally advised by Company and is hereby advised in writing by this Agreement
to consult with an attorney before signing this Agreement;

     

    (d)           He
was given a copy of this Agreement on September 18, 2008, and informed that he
had 21 days within which to consider this Agreement;

     

    (e)           He
was informed that he has seven (7) days following the date of execution of the
Agreement in which to revoke this Agreement; and

     

    (f)           He
was informed that the Company is required to disclose the terms and conditions
of this Agreement in accordance with Federal securities laws.

     

    13. Confidential
Information.  Executive acknowledges that by reason of his
position with Company he has been given access to strategic plans, annual
business plans, lists of customers, prices, engineering plans and similar
confidential or proprietary materials or information respecting Company’s
business affairs (“Confidential
Information”).  The term Confidential Information shall not
include any information which (i) at the time of disclosure or thereafter was or
is generally available to the public; (ii) was or is available to Executive on a
non-confidential basis from a source other than the Company; or (iii) has been
independently acquired or developed by Executive without violating any of his
obligations under this Agreement or any of his other agreements with or
obligations to the Company.  Executive represents that he has held all
such Confidential Information confidential and will continue to do so from the
date of this Agreement, and that he will not use such Confidential Information
for any business (which term herein includes a partnership, firm, corporation or
any other entity) without the prior written consent of Company.  On or
before the Effective Date, Executive shall return to Company and shall not take
or copy in any form or manner any Confidential Information.

     

    14. Return of
Equipment.  On or before the Effective Date, Executive shall
return to the Company all equipment and other personal property of the Company
provided to Executive by the Company in the course of his employment, including,
without limitation, automobile, cell phone, and computer.

     

    15. Non-Disclosure.  Executive
agrees not to respond to or in any way participate in or contribute to any
public discussion, notice or other publicity concerning, or in any way relating
to, execution of this Agreement or the events (including negotiations) which led
to its execution.  Without limiting the generality of the foregoing,
Executive specifically agrees that he shall not disclose information regarding
this Agreement to any current or former employee of Company Released
Parties.  Executive hereby agrees that disclosure by him in violation
of this paragraph shall constitute and be treated as a material breach of this
Agreement and, in addition, shall cause Executive to pay Company Released
Parties total liquidated damages in the amount of $500,000, plus reasonable
attorneys’ fees incurred by Company Released Parties to enforce this
paragraph.

     

     

    
      
        
        

      

      
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    16. No
Employment.  Executive and Company acknowledge that, except for
obligations under this Agreement, any employment or contractual relationship
between them will terminate on the Effective Date, and that they have no further
employment or contractual relationship except as may arise out of this Agreement
and that Executive waives any right or claim to reinstatement as an employee of
Company and will not seek employment in the future with Company or any of its
subsidiaries.

     

    17. Payment
of Taxes.  Executive agrees that Executive shall be exclusively
liable for the payment of all federal and state taxes which may be due as the
result of the consideration received as set forth herein and Executive hereby
represents that Executive shall make payments on such taxes at the time and in
the amount required of Executive.  In addition, Executive hereby
agrees fully to defend, indemnify and hold harmless the Company Released
Parties, and each of them from payment of taxes, interest and/or penalties that
are required of them by any government agency at any time as the result of
payment of the consideration set forth herein.

     

    18. Waiver of
Section 1542 by Executive.  It is the intention of Executive in
executing this Agreement that the same shall be effective as a bar to each and
every claim, demand and cause of action hereinabove specified in paragraphs 3
and 4.  In furtherance of this intention, Executive hereby expressly
waives any and all rights and benefits conferred upon him by the provisions of
SECTION 1542 OF THE CALIFORNIA CIVIL CODE and expressly consents that this
Agreement shall be given full force and effect according to each and all of its
express terms and provisions, including those related to unknown and unsuspected
claims, demands and causes of action, if any, as well as those relating to any
other claims, demands and causes of action hereinabove
specified.  SECTION 1542 provides:

     

    “A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF
KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
DEBTOR.”

     

    Executive
acknowledges that he may hereafter discover claims or facts in addition to or
different from those which Executive now knows or believes to exist with respect
to the subject matter of this Agreement and which, if known or suspected at the
time of executing this Agreement, may have materially affected this
settlement.  Nevertheless, Executive hereby waives any right, claim or
cause of action that might arise as a result of such different or additional
claims or facts.  Executive acknowledges that he understands the
significance and consequence of such release and such specific waiver of SECTION
1542.

     

    19. Waiver of
Section 1542 by Company.  It is the intention of Company in
executing this instrument that the same shall be effective as a bar to each and
every claim, demand and cause of action hereinabove specified in paragraph 3,
except as expressly excepted in such paragraph.  In furtherance of
this intention, Company hereby expressly waives any and all rights and benefits
conferred upon it by the provisions of SECTION 1542 OF THE CALIFORNIA CIVIL CODE
and expressly consents that this Agreement shall be given full force and effect
according to each and all of its express terms and provisions, including those
related to unknown and unsuspected claims, demands and causes of action, if any,
as well as those relating to any other claims, demands and causes of action
hereinabove specified.  SECTION 1542 provides:

     

     

    
      
        
        

      

      
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    “A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF
KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
DEBTOR.”

     

    Company
acknowledges that it may hereafter discover claims or facts in addition to or
different from those which Company now knows or believes to exist with respect
to the subject matter of this Agreement and which, if known or suspected at the
time of executing this Agreement, may have materially affected this
settlement.  Nevertheless, Company hereby waives any right, claim or
cause of action that might arise as a result of such different or additional
claims or facts.  Company acknowledges that it understands the
significance and consequence of such release and such specific waiver of SECTION
1542.  Notwithstanding any of the foregoing however, such wavier shall
not extend to any claims, known or unknown, suspected or unsuspected, against
Executive which arise out of facts, including facts which may be discovered
hereafter, which are finally judged by a court of competent jurisdiction to be a
crime under any federal, state, or local statue, law, ordinance or
regulation.

     

    20. Adequate
Opportunity to Consider and Revocation.  Either party may
revoke this Agreement in its entirety during the seven (7) days following
execution of this Agreement.  Any revocation of this Agreement must be
in writing and hand delivered.  This Agreement will become effective
and enforceable seven (7) days following execution, unless it is revoked during
the seven-day period.

     

    21. Entire
Agreement; Amendment.  Each of the parties acknowledges that
this Agreement constitutes the entire agreement of the parties with respect to
the subject matter hereof.  The Company and the Executive each
acknowledges that no representations, inducements, promises, or agreements, oral
or written, have been made by any party, or anyone acting on behalf of any
party, which are not embodied herein, and that no other agreement, statement, or
promise not contained in this Agreement shall be valid or
binding.  This Agreement may not be amended or modified other than by
a written agreement executed by the Executive and the Company.

     

    22. Savings
Clause.  If any provision of this Agreement or the application
thereof is held invalid, the invalidity shall not affect other provisions or
applications of the Agreement which can be given effect without the invalid
provisions or applications and to this end the provisions of this Agreement are
declared to be severable.

     

    23. Governing
Law.  This Agreement shall be deemed to have been executed and
delivered within the State of California, and the rights and obligations of the
parties hereunder shall be construed and enforced in accordance with, and
governed by, the laws of the State of California without regard to principles of
conflict of laws.

     

     

    
      
        
        

      

      
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    24. Construction
of Agreement. Each party has cooperated in the drafting and preparation
of this Agreement.  Hence, in any construction to be made of this
Agreement, the same shall not be construed against any party on the basis that
the party was the drafter.

     

    25. Dispute
Resolution.

     

    (a)           Any
dispute or controversy between Executive (or any other Executive Released
Party), on the one hand, and Company (or any other Company Released Party), on
the other hand, in any way arising out of, related to, or connected with this
Agreement or the subject matter thereof, or otherwise in any way arising out of,
related to, or connected with Executive’s employment with Company or the
termination of Executive’s employment with Company, shall be resolved through
final and binding arbitration in Los Angeles, California, pursuant to California
Civil Procedure Code §§1280-1284.2.  The arbitrator shall be selected
by mutual agreement of the parties or, if the parties cannot agree, then by
striking from a list of arbitrators supplied by JAMS.  The Company
will pay the arbitration fees and arbitration expenses and any other costs
unique to the arbitration hearing (recognizing that each side bears its own
deposition, witness, expert and attorneys’ fees and any other expenses to the
same extent as if the matter were being heard in Court).  If, however,
any party prevails on a statutory claim, which affords the prevailing party
attorneys’ fees and costs, then the arbitrator may award reasonable attorneys’
fees and/or costs to the prevailing party.  Any dispute as to who is a
prevailing party and/or the reasonableness of any fee or cost shall be resolved
by the arbitrator.

     

    (b)           Except
as may be necessary to enter judgment upon the award or to the extent required
by applicable law, all claims, defenses and proceedings (including, without
limiting the generality of the foregoing, the existence of the controversy and
the fact that there is an arbitration proceeding) shall be treated in a
confidential manner by the arbitrator, the parties and their counsel, and each
of their agents, and employees and all others acting on behalf of or in concert
with them.  Without limiting the generality of the foregoing, no one
shall divulge to any third party or person not directly involved in the
arbitration the contents of the pleadings, papers, orders, hearings, trials, or
awards in the arbitration, except as may be necessary to enter judgment upon an
award as required by applicable law.  Any court proceedings relating
to the arbitration hereunder, including, without limiting the generality of the
foregoing, to prevent or compel arbitration or to confirm, correct, vacate or
otherwise enforce an arbitration award, shall be filed under seal with the
court, to the extent permitted by law.

     

    26. Waiver.  No
waiver of any breach of any term or provision of this Agreement shall be
construed to be, or shall be, a waiver of any other breach of this
Agreement.  No waiver shall be binding unless in writing and signed by
the party waiving the breach.

     

    27. Representation
by Counsel.  In entering this Agreement, the parties represent
that they have relied upon the advice of their respective attorneys, who are
attorneys of their own choice, and that the terms of this Agreement have
been completely read and explained to them by their attorneys, and that those
terms are fully understood and voluntarily accepted by them.

     

    28. Cooperation.  All
parties agree to cooperate fully and to execute any and all supplementary
documents and to take all additional actions that may be necessary or
appropriate to give full force to the basic terms and intent of this Agreement
and which are not inconsistent with its terms.

     

     

    
      
        
        

      

      
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    29. Counterparts. This Agreement may
be executed in one or more counterparts and by facsimile
signature.  Each counterpart shall be deemed an original, but all of
which together shall constitute one and the same instrument. 

     

    30. Headings.  The
headings of this Agreement are not part of the provisions hereof and shall have
no force or effect.

     

    Executive
has read the foregoing Agreement and accepts and agrees to the provisions it
contains and hereby executes it voluntarily with full understanding of its
consequences.  Executive further declares under penalty of perjury
under the laws of the State of California that the foregoing is true and
correct.

     

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blank – signature page follows]

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    EXECUTED
this 19th day of September, 2008, at Marin County, California.

     

     

     

    
      
        	 	 	MICHAEL
      P. GEORGE	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
                 

              	
                 

              	/s/ Michael
      P. George	 
	 	 	 	 

      

    

     

    EXECUTED
this 19th day of September, 2008, at Los Angeles County,
California.

     

     

    
      
        	 	 	AMERICAN
      STATES WATER COMPANY	 
	 	 	 	 
	 	 	 	 
	
                 

              	
                 

              	/s/ Floyd
      E. Wicks	 
	 	 	Name:
      Floyd E. Wicks	 
	 	 	Title:
      President and CEO	 
	 	 	 	 

      

    

     

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
A

     

    RESIGNATION

     

    Dear Mr.
Wicks:

     

    This is to
advise you that I hereby voluntarily resign my position as Executive Vice
President of Corporate Development with American States Water Company effective
September 26, 2008 and will not seek reemployment with American States Water
Company or any of its subsidiaries.  I have appreciated the
opportunity to be professionally associated with American States Water Company,
and I wish you and all the employees, shareholders and directors of the Company
all the best.

     

    Sincerely
yours,

     

    Michael
Patrick George

     

     

     

    
      
        
        

      

      
        Exhibit
A

        
          

        

      

      
        
        

      

    

     

    
      AMENDMENT

      TO

      AMERICAN
STATES WATER COMPANY

      2000
STOCK INCENTIVE PLAN

      2007
NONQUALIFIED STOCK OPTION AGREEMENT

      

      THIS AGREEMENT, dated as of
September 19, 2008, between American States Water Company, a California
corporation (the “Corporation”), and Michael P. George
(“Executive”);

      

      WHEREAS, pursuant to the American
States Water Company 2000 Stock Incentive Plan, as amended (the “Plan”), the
Corporation granted to Executive a nonqualified stock option (the “Option”) to
purchase all or any part of 6,461 shares of Common Stock of the Corporation upon
the terms and conditions set forth in an award agreement dated as of
February 15, 2007 (the “Award Agreement”) and in the Plan;

      

      WHEREAS, in connection with Executive’s
termination of employment, the Corporation and Executive desire to amend the
Award Agreement to provide that the Option shall continue to become exercisable
on the vesting dates set forth in the Award Agreement as if Executive continued
to perform services for the Corporation until February 14,
2017;

      

      WHEREAS, under the terms of the Plan,
the Compensation Committee has the authority to extend the term of outstanding
awards beyond a Participant’s termination of employment; and

      

      WHEREAS, the Compensation Committee has
approved this Agreement amending the Award Agreement.

      

      NOW, THEREFORE, in consideration of the
mutual promises and covenants made here and the mutual benefits to be derived
herefrom the parties agree as follows:

      

      1.           Defined
Terms.  Capitalized terms used herein and not otherwise defined
herein shall have the meaning assigned to such terms in the Plan and/or the
Award Agreement.

      

      2.           Amendment of Award
Agreement.  Effective as of the Effective Date (as defined in
the Resignation and General Release Agreement dated as of September 19, 2008
between the Corporation and Executive (the “Effective Date”), Section 2 of the
Award Agreement is hereby amended in its entirety to read as
follows:

      

      
        	
                 

              	
                “2.  Continuation of
      Employment Not Required.  Notwithstanding anything to the
      contrary in this Option Agreement or the Plan, the Option shall continue
      to become exercisable in accordance with the vesting schedule set forth in
      this Option Agreement.”

              

      

       

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      3.           Effective
as of the Effective Date, Section 4.2 is hereby amended in its entirety to
read as follows:

       

      
        “4.2 Termination of Option upon a
Participant’s Death.  Subject to earlier termination on the
Expiration Date of the Option or pursuant to Section 4.1 above, in the event of
the Participant’s death, (a) the Option will continue to become exercisable
in accordance with the vesting schedule set forth in this Option Agreement, (b)
the Participant’s Beneficiary will have until the close of business on the date
immediately prior to the Expiration Date, to the extent it is then exercisable,
to exercise the Option, and (c) the Option, to the extent not exercised
during such period, shall terminate on the Expiration Date.”

      

      

      IN WITNESS WHEREOF, the Corporation has
caused this Agreement to be executed on its behalf by a duly authorized officer
and Executive has hereunto set his hand.

      

      

      

      American States Water
Company

      (a California
corporation)

      

      

      By /s/ Floyd E.
Wicks                                         

      
 

      

      Michael P. George

      

      

       /s/ Michael P.
George                                         

    
      
 

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

    

     

    
      AMENDMENT

      TO

      AMERICAN
STATES WATER COMPANY

      2000
STOCK INCENTIVE PLAN

      2007
RESTRICTED STOCK UNIT AWARD AGREEMENT

      

      THIS AGREEMENT, dated as of
September 19, 2008, between American States Water Company, a California
corporation (the “Corporation”), and Michael P. George
(“Executive”);

      

      WHEREAS, pursuant to the American
States Water Company 2000 Stock Incentive Plan, as amended (the “Plan”), the
Corporation granted to Executive a restricted stock unit award of 1,600.922
stock units (the “Award”) upon the terms and conditions set forth in an award
agreement dated as of February 15, 2007 (the “Award Agreement”) and in the
Plan;

      

      WHEREAS, in connection with Executive’s
termination of employment, the Corporation and Executive desire to amend the
Award Agreement to provide that the Award shall be vested and shall be paid to
Executive in accordance with the vesting schedule set forth in the original
Award Agreement;

      

      WHEREAS, under the terms of the Plan,
the Compensation Committee has the authority to change the vesting conditions of
outstanding awards; and

      

      WHEREAS, the Compensation Committee has
approved this Agreement amending the Award Agreement.

      

      NOW, THEREFORE, in consideration of the
mutual promises and covenants made here and the mutual benefits to be derived
herefrom the parties agree as follows:

      

      1.           Defined
Terms.  Capitalized terms used herein and not otherwise defined
herein shall have the meaning assigned to such terms in the Plan and/or the
Award Agreement.

      

      2.           Amendment of Award
Agreement.  Effective as of the Effective Date (as defined in
the Resignation and General Release Agreement dated as of September 19, 2008
between the Corporation and Executive (the “Effective Date”) , Section 3 of
the Award Agreement is hereby amended to read as follows:

      

      
        “3. Vesting.  The
Award shall vest and become nonforfeitable on the Effective Date (as defined in
the Resignation and General Release Agreement dated as of September 19, 2008
between the Corporation and Executive (the “Effective
Date”).”

      

      

      3.           Effective
as of the Effective Date, Section 4 of the Award Agreement is amended to read as
follows:

      

      “4. Reserved.”

       

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      4.           Effective
as of the Effective Date, Section 6 is amended in its entirety to read as
follows:

      

      
        “6. Timing
and Manner of Payment.

      

      

      
        (a)
General.  In
February 2008, the Corporation delivered to the Participant a number of Common
Shares equal to thirty-three percent (33%) of the Award (including any Stock
Units credited as dividend equivalents with respect to such Stock
Units).  Subject to adjustment under Section 5.2 of the Plan, on
February 14, 2009, or within 10 business days thereafter, the Corporation
shall deliver to the Participant a number of Common Shares equal to thirty-three
percent (33%) of the Award (including any Stock Units credited as dividend
equivalents with respect to such Stock Units).  Subject to adjustment
under Section 5.2 of the Plan, on February 14, 2010, or within 10
business days thereafter, the Corporation shall deliver to the Participant a
number of Common Shares equal to thirty-four percent (34%) of the Award
(including any Stock Units credited as dividend equivalents with respect to such
Stock Units).

      

      

      
        (b)
Payment Upon
Death.  Notwithstanding the foregoing, if the Participant dies
prior to the Corporation delivering to the Participant all of the Stock Units
subject to this Award, within 90 days of Participant’s death, the Corporation
shall deliver to the Participant’s Beneficiary a number of Common Shares equal
to the portion of the Award that has not already been delivered to the
Participant as of such date.

      

      

      
        (c)
Termination of Stock Units
Upon Payment.  A Stock Unit will terminate upon the payment of
that Stock Unit in accordance with the terms hereof, and the Participant shall
have no further rights with respect to such Stock Unit.

      

      

      
        (d) Form of
Payment.  The Corporation may deliver the Common Shares payable
to the Participant under this Section 6 either by delivering one or more
certificates for such shares or by entering such shares in book entry form, as
determined by the Corporation in its discretion.”

      

       

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

         

      

      IN WITNESS WHEREOF, the Corporation has
caused this Agreement to be executed on its behalf by a duly authorized officer
and Executive has hereunto set his hand.

      

      American
States Water Company

      
        (a California
corporation)

        

        

        By /s/ Floyd E.
Wicks                                         

        
 

        

        Michael P. George

        

        

         /s/ Michael P.
George                                         

      

      
 

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

    

     

    
      AMENDMENT

      TO

      AMERICAN
STATES WATER COMPANY

      2000
STOCK INCENTIVE PLAN

      2008
RESTRICTED STOCK UNIT AWARD AGREEMENT

      

      THIS AGREEMENT, dated as of
September 19, 2008, between American States Water Company, a California
corporation (the “Corporation”), and Michael P. George
(“Executive”);

      

      WHEREAS, pursuant to the American
States Water Company 2000 Stock Incentive Plan, as amended (the “Plan”), the
Corporation granted to Executive a restricted stock unit award of 1,838 stock
units (the “Award”) upon the terms and conditions set forth in an award
agreement dated as of January 28, 2008 (the “Award Agreement”) and in the
Plan;

      

      WHEREAS, in connection with Executive’s
termination of employment, the Corporation and Executive desire to amend the
Award Agreement to provide that the Award shall be vested and shall be paid to
Executive in accordance with the vesting schedule set forth in the original
Award Agreement;

      

      WHEREAS, under the terms of the Plan,
the Compensation Committee has the authority to change the vesting conditions of
outstanding awards; and

      

      WHEREAS, the Compensation Committee has
approved this Agreement amending the Award Agreement.

      

      NOW, THEREFORE, in consideration of the
mutual promises and covenants made here and the mutual benefits to be derived
herefrom the parties agree as follows:

      

      1.           Defined
Terms.  Capitalized terms used herein and not otherwise defined
herein shall have the meaning assigned to such terms in the Plan and/or the
Award Agreement.

      

      2.           Amendment of Award
Agreement.  Effective as of the Effective Date (as defined in
the Resignation and General Release Agreement dated as of September 19, 2008
between the Corporation and Executive (the “Effective Date”), Section 3 of
the Award Agreement is hereby amended to read as follows:

      

      
        “3. Vesting.  The
Award shall vest and become nonforfeitable on the Effective Date (as defined in
the Resignation and General Release Agreement dated as of September 19, 2008
between the Corporation and Executive (the “Effective
Date”).”

      

      

      3.           Effective
as of the Effective Date, Section 4 of the Award Agreement is amended to read as
follows:

      

      “4. Reserved.”

       

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      4.           Effective
as of the Effective Date, Section 6 is amended in its entirety to read as
follows:

      

      
        “6. Timing
and Manner of Payment.

      

      

      
        (a)
General.  Subject
to adjustment under Section 5.2 of the Plan, on January 28, 2009, or within 10
business days thereafter, the Corporation shall deliver to the Participant a
number of Common Shares equal to thirty-three percent (33%) of the Award
(including any Stock Units credited as dividend equivalents with respect to such
Stock Units).  Subject to adjustment under Section 5.2 of the Plan, on
January 28, 2010, or within 10 business days thereafter, the Corporation shall
deliver to the Participant a number of Common Shares equal to thirty-three
percent (33%) of the Award (including any Stock Units credited as dividend
equivalents with respect to such Stock Units).  Subject to adjustment
under Section 5.2 of the Plan, on January 28, 2011, or within 10 business
days thereafter, the Corporation shall deliver to the Participant a number of
Common Shares equal to thirty-four percent (34%) of the Award (including any
Stock Units credited as dividend equivalents with respect to such Stock
Units).

      

      

      
        (b)
Payment Upon
Death.  Notwithstanding the foregoing, if the Participant dies
prior to the Corporation delivering to the Participant all of the Stock Units
subject to this Award, within 90 days of Participant’s death, the Corporation
shall deliver to the Participant’s Beneficiary a number of Common Shares equal
to the portion of the Award that has not already been delivered to the
Participant as of such date.

      

      

      
        (c)
Termination of Stock Units
Upon Payment.  A Stock Unit will terminate upon the payment of
that Stock Unit in accordance with the terms hereof, and the Participant shall
have no further rights with respect to such Stock Unit.

      

      

      
        (d)
Form of
Payment.  The Corporation may deliver the Common Shares payable
to the Participant under this Section 6 either by delivering one or more
certificates for such shares or by entering such shares in book entry form, as
determined by the Corporation in its discretion.”

      

       

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

      
 

      IN WITNESS WHEREOF, the Corporation has
caused this Agreement to be executed on its behalf by a duly authorized officer
and Executive has hereunto set his hand.

      

      

       

      
        American States Water
Company

        (a California
corporation)

        

        

        By /s/ Floyd E.
Wicks                                         

        
 

        

        Michael P. George

        

        

         /s/ Michael P.
George                                         

      

       

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

    

     

    
      AMENDMENT

      TO

      AMERICAN
STATES WATER COMPANY

      2000
STOCK INCENTIVE PLAN

      2008
NONQUALIFIED STOCK OPTION AGREEMENT

      

      THIS AGREEMENT, dated as of
September 19, 2008, between American States Water Company, a California
corporation (the “Corporation”), and Michael P. George
(“Executive”);

      

      WHEREAS, pursuant to the American
States Water Company 2000 Stock Incentive Plan, as amended (the “Plan”), the
Corporation granted to Executive a nonqualified stock option (the “Option”) to
purchase all or any part of 9,205 shares of Common Stock of the Corporation upon
the terms and conditions set forth in an award agreement dated as of January 28,
2008 (the “Award Agreement”) and in the Plan;

      

      WHEREAS, in connection with Executive’s
termination of employment, the Corporation and Executive desire to amend the
Award Agreement to provide that the Option shall continue to become exercisable
on the vesting dates set forth in the Award Agreement as if Executive continued
to perform services for the Corporation until January 28, 2018;

      

      WHEREAS, under the terms of the Plan,
the Compensation Committee has the authority to extend the term of outstanding
awards beyond a Participant’s termination of employment; and

      

      WHEREAS, the Compensation Committee has
approved this Agreement amending the Award Agreement.

      

      NOW, THEREFORE, in consideration of the
mutual promises and covenants made here and the mutual benefits to be derived
herefrom the parties agree as follows:

      

      1.           Defined
Terms.  Capitalized terms used herein and not otherwise defined
herein shall have the meaning assigned to such terms in the Plan and/or the
Award Agreement.

      

      2.           Amendment of Award
Agreement.  Effective as of the Effective Date (as defined in
the Resignation and General Release Agreement dated as of September 19, 2008
between the Corporation and Executive (the “Effective Date”), Section 2 of the
Award Agreement is hereby amended in its entirety to read as
follows:

      

      
        “2.  Continuation of Employment
Not Required.  Notwithstanding anything to the contrary in this
Option Agreement or the Plan, the Option shall continue to become exercisable in
accordance with the vesting schedule set forth in this Option
Agreement.”

      

       

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

      3.           Effective
as of the Effective Date, Section 4.2 is hereby amended in its entirety to
read as follows:

      

      
        “4.2 Termination of Option upon a
Participant’s Death.  Subject to earlier termination on the
Expiration Date of the Option or pursuant to Section 4.1 above, in the event of
the Participant’s death, (a) the Option will continue to become exercisable
in accordance with the vesting schedule set forth in this Option Agreement, (b)
the Participant’s Beneficiary will have until the close of business on the date
immediately prior to the Expiration Date, to the extent it is then exercisable,
to exercise the Option, and (c) the Option, to the extent not exercised
during such period, shall terminate on the Expiration Date.”

      

      

      IN WITNESS WHEREOF, the Corporation has
caused this Agreement to be executed on its behalf by a duly authorized officer
and Executive has hereunto set his hand.

      

      
        American States Water
Company

        (a California
corporation)

        

        

        By /s/ Floyd E.
Wicks                                         

        
 

        

        Michael P. George

        

        

         /s/ Michael P.
George                                         

       

       

       

      22EXHIBIT 10.1
                              AMENDED AND RESTATED
                              EMPLOYMENT AGREEMENT

            This Amended and Restated Employment Agreement ("Agreement") is
entered into effective September 16, 2008 (the "Effective Date") by and between
Buffalo Wild Wings, Inc., a Minnesota corporation (the "Company"), and Sally J.
Smith, a resident of Minnesota ("Executive").

                                   BACKGROUND

         A. Executive is currently employed by the Company as its Chief
Executive Officer and President. The Company desires to continue to employ
Executive under the terms and conditions set forth in this Agreement.

         B. The Company and Executive are parties to an Employment Agreement
dated December 1, 1999 (the "Prior Agreement"), which the parties desire to
amend and restate in its entirety as set forth in this Agreement. The Company
and Executive are also parties to Restricted Stock Unit Agreements dated
December 26, 2005 and January 1, 2007 (the "RSU Agreements").

         C. In October 2004, the American Jobs Creation Act of 2004 (the "Act")
was enacted, Section 885 of which Act added new provisions to the Internal
Revenue Code pertaining to deferred compensation. The Treasury Department has
issued final regulations and guidances regarding the deferred compensation
provisions of the Act, which permit service providers and service recipients a
transition period to modify existing deferred compensation arrangements to bring
them into compliance with the Act.

         D. The parties agree that it is in their mutual best interests to
modify, amend and clarify the terms and conditions of the Prior Agreement, as
set forth in this Agreement, with the full intention of complying with the Act
so as to avoid the additional taxes and penalties imposed under the Act.

         E. Executive is a key member of the management of the Company and is
expected to devote substantial skill and effort to the affairs of the Company,
and the Company desires to recognize the significant personal contribution that
Executive makes and is expected to continue to make to further the best
interests of the Company and its shareholders.

         F. It is desirable and in the best interests of the Company and its
shareholders to continue to obtain the benefits of Executive's services and
attention to the affairs of the Company. It is desirable and in the best
interests of the Company and its shareholders to provide inducement for
Executive (1) to remain in the service of the Company in the event of any
proposed or anticipated change in control of the Company and (2) to remain in
the service of the Company in order to facilitate an orderly transition in the
event of a change in control of the Company.

--------------------------------------------------------------------------------
                                                                          Page 1
<PAGE>

         G. It is desirable and in the best interests of the Company and its
shareholders that Executive be in a position to make judgments and advise the
Company with respect to proposed changes in control of the Company without
regard to the possibility that Executive's employment may be terminated without
compensation in the event of certain changes in control of the Company.

         H. In Executive's position, Executive will have access to confidential,
proprietary and trade secret information of the Company. It is desirable and in
the best interests of the Company and its shareholders to protect confidential,
proprietary and trade secret information of the Company, to prevent unfair
competition by former executives of the Company following separation of their
employment with the Company and to secure cooperation from former executives
with respect to matters related to their employment with the Company.

                                    AGREEMENT

                  In consideration of the foregoing premises and the respective
agreements of the Company and Executive set forth below, the Company and
Executive, intending to be legally bound, agree as follows:

                  1. TERM. The term of Executive's employment under this
Agreement shall commence on the Effective Date and shall continue in effect
until the last day of the Company's fiscal year 2009, unless earlier terminated
in accordance with Section 9 of this Agreement. Thereafter, unless earlier
terminated in accordance with Section 9 hereof, the term of Executive's
employment with the Company shall be automatically extended for successive
one-year periods, each ending on the last day of the Company's fiscal year,
unless either party gives written notice to the other party at least four (4)
months prior to the expiration of such term that such party elects not to extend
the term of this Agreement. The term of Executive's employment, beginning on the
Effective Date of this Agreement, together with any automatic extensions
thereof, shall collectively be the "Term."

                  2. POSITION AND DUTIES. During Executive's employment under
this Agreement, Executive will have the following position, duties and
responsibilities:

                     (a) Position with the Company. Executive will serve as
Chief Executive Officer and President of the Company, or in such other executive
position of a similar nature, and will perform such duties and responsibilities
as the Board of Directors of the Company may assign Executive from time to time.

                     (b) Performance of Duties and Responsibilities. Executive
will serve the Company faithfully and to the best of Executive's ability and
will devote Executive's full working time, attention, and efforts to the
business of the Company. Executive will report to the Board of Directors of the
Company. Executive will follow and comply with applicable policies and
procedures adopted by the Company from time to time, including without
limitation policies relating to business ethics, conflict of interest,
non-discrimination, confidentiality and protection of trade secrets, and insider
trading. Executive will not engage in other employment or other material
business activity, except as approved in writing by the Board of Directors.
Executive hereby represents and confirms that Executive is under no contractual
or legal commitments that would prevent Executive from fulfilling Executive's
duties and responsibilities as set forth in this Agreement.

--------------------------------------------------------------------------------
                                                                          Page 2
<PAGE>

                  3. COMPENSATION. During Executive's employment under this
Agreement, Executive will be provided with the following compensation and
benefits:

                     (a) Base Salary. The Company will pay to Executive for
services provided hereunder a base salary paid in accordance with the Company's
normal payroll policies and procedures. The Board of Directors of the Company
(or any authorized committees of the Board, together hereafter the "Board") will
review Executive's performance on an annual basis and determine any adjustments
to Executive's base salary in its sole discretion; provided, however, that any
reduction shall be permitted only if the Company then reduces the base
compensation of all its executive officers generally and shall not exceed the
average percentage reduction for all such executive officers.

                     (b) Incentive Compensation. Executive will be eligible to
participate in such programs under the Buffalo Wild Wings, Inc. Cash Incentive
Plan as determined by the Board and in accordance with the terms, as may be
amended and in effect from time to time (the "CIP").

                     (c) Equity. Executive will be eligible to participate in
such programs under the Buffalo Wild Wings, Inc. 2003 Equity Incentive Plan as
determined by the Board and in accordance with the terms of such plan as may be
in effect from time to time.

                     (d) Employee Benefits. Executive will be entitled to
participate in all employee benefit plans and programs generally available to
executive employees of the Company, to the extent that Executive meets the
eligibility requirements for each individual plan or program. Executive's
participation in any plan or program will be subject to the provisions, rules,
and regulations of, or applicable to, the plan or program. The Company provides
no assurance as to the adoption or continuation of any particular employee
benefit plan or program.

                     (e) Expenses. The Company will reimburse Executive for all
reasonable and necessary out-of-pocket business, travel, and entertainment
expenses incurred by Executive in the performance of Executive's duties and
responsibilities to the Company during the Term. Such reimbursement shall be
subject to the Company's normal policies and procedures for expense
verification, documentation, and reimbursement; provided, however, that
Executive shall submit verification of expenses within 30 days after the date
the expense was incurred, and the Company shall reimburse Executive for such
expenses eligible for reimbursement within 30 days thereafter.

--------------------------------------------------------------------------------
                                                                          Page 3
<PAGE>

                  4. AMENDMENT OF RSU AGREEMENTS. Simultaneous with the
execution of this Agreement, Executive and the Company will execute amendments
to the RSU Agreements, in the form attached to this Agreement as Exhibit A.

                  5. CONFIDENTIAL INFORMATION. Except as authorized in writing
by the Board or as necessary in carrying out Executive's responsibilities for
the Company, Executive will not at any time divulge, furnish, or make accessible
to anyone or use in any way, any confidential, proprietary, or secret knowledge
or information of the Company that Executive has acquired or will acquire about
the Company, whether developed by himself or by others, concerning (i) any trade
secrets, (ii) any confidential, proprietary, or secret recipes, designs,
inventions, discoveries, programs, processes, formulae, plans, devices, or
material (whether or not patented or patentable) directly or indirectly useful
in any aspect of the business of the Company, (iii) any customer or supplier
lists, (iv) any confidential, proprietary, or secret development or research
work, (v) any strategic or other business, marketing, or sales plans, systems or
techniques, (vi) any financial data or plans, or (vii) any other confidential or
proprietary information or secret aspects of the business of the Company.
Executive acknowledges that the above-described knowledge and information
constitute a unique and valuable asset of the Company and represent a
substantial investment of time and expense by the Company, and that any
disclosure or other use of such knowledge or information other than for the sole
benefit of the Company would be wrongful and would cause irreparable harm to the
Company. Executive will refrain from intentionally committing any acts that
would materially reduce, and shall take reasonable steps to protect, the value
of such knowledge and information to the Company. The foregoing obligations of
confidentiality shall not apply to any knowledge or information that (i) at the
time of Executive's use or disclosure is generally publicly known, other than as
a direct or indirect result of the breach by Executive of this Agreement, (ii)
is independently made available to Executive in good faith by a third party who
has not violated a confidential relationship with the Company, or (iii) is
required to be disclosed by law or legal process. Executive understands and
agrees that Executive's obligations under this Agreement to maintain the
confidentiality of the Company's confidential information are in addition to any
obligations of Executive under applicable statutory or common law.

                  6. VENTURES. If, during Executive's employment with the
Company, Executive participates in the planning or implementing of any project,
program, or venture involving the Company, all rights in such project, program,
or venture belong to the Company. Except as approved in writing by the Board,
Executive will not be entitled to any interest in any such project, program, or
venture or to any commission, finder's fee, or other compensation in connection
therewith. Executive will have no interest, direct or indirect, in any customer
or supplier that conducts business with the Company. Ownership by Executive, as
a passive investment, of less than one percent of the outstanding shares of
capital stock of any corporation listed on a national securities exchange or
publicly traded in the over-the-counter market shall not constitute a breach of
this Section 6.

--------------------------------------------------------------------------------
                                                                          Page 4
<PAGE>

                  7. INTELLECTUAL PROPERTY.

                     (a) Disclosure and Assignment. As of the Effective Date,
Executive hereby transfers and assigns to the Company (or its designee) all
right, title, and interest of Executive in and to every idea, concept,
invention, and improvement (whether patented, patentable or not) conceived or
reduced to practice by Executive whether solely or in collaboration with others
while Executive is employed by the Company, and all copyrighted or copyrightable
matter created by Executive whether solely or in collaboration with others while
Executive is employed by the Company, in each case, that relates to the
Company's business (collectively, "Creations"). Executive shall communicate
promptly and disclose to the Company, in such form as the Company may request,
all information, details, and data pertaining to each Creation. Every
copyrightable Creation, regardless of whether copyright protection is sought or
preserved by the Company, shall be a "work made for hire" as defined in 17
U.S.C. ss. 101, and the Company shall own all rights in and to such matter
throughout the world, without the payment of any royalty or other consideration
to Executive or anyone claiming through Executive.

                     (b) Trademarks. All right, title, and interest in and to
any and all trademarks, trade names, service marks, and logos adopted, used, or
considered for use by the Company during Executive's employment (whether or not
developed by Executive) to identify the Company's business or other goods or
services (collectively, the "Marks"), together with the goodwill appurtenant
thereto, and all other materials, ideas, or other property conceived, created,
developed, adopted, or improved by Executive solely or jointly during
Executive's employment by the Company and relating to its business shall be
owned exclusively by the Company. Executive shall not have, and will not claim
to have, any right, title, or interest of any kind in or to the Marks or such
other property.

                     (c) Documentation. Executive shall execute and deliver to
the Company such formal transfers and assignments and such other documents as
the Company may request to permit the Company (or its designee) to file and
prosecute such registration applications and other documents it deems useful to
protect or enforce its rights hereunder. Any patentable invention relating to
the Company's business and disclosed by Executive prior to the first anniversary
of the effective date of Executive's termination of employment shall be deemed
to be governed by the terms of this Section 7 unless proven by Executive to have
been first conceived and made after such termination date.

                     (d) Non-Applicability. Executive is hereby notified that
this Section 7 does not apply to any invention for which no equipment, supplies,
facility, confidential information, or other trade secret information of the
Company was used and which was developed entirely on Executive's own time,
unless (1) the invention relates (a) directly to the business of the Company or
(b) to the Company's actual or demonstrably anticipated research or development,
or (2) the invention results from any work performed by Executive for the
Company.

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                                                                          Page 5
<PAGE>

                  8. NONCOMPETITION AND NONSOLICITATION COVENANTS.

                     (a) Agreement Not to Compete. During Executive's employment
with the Company and for a period of twelve (12) consecutive months from and
after the termination of Executive's employment, whether such termination is
with or without Cause, is at the instance of Executive or the Company or occurs
before or after expiration of the Term, Executive will not, directly or
indirectly, in any manner or capacity, including without limitation as a
proprietor, principal, agent, partner, officer, director, investor, stockholder,
employee, member of any association, consultant, or otherwise, engage or
participate in any Competitive Business. "Competitive Business" means any
person, entity or business operation (other than the Company) that operates,
manages or franchises, in the United States (i) a sports-themed restaurant that
operates, manages or franchises two or more restaurants, markets the public
viewing of sports and has alcohol sales of 20% or more, (ii) a restaurant that
operates, manages or franchises two or more restaurants and features chicken
wings that account for 10% or more of food sales, or (iii) any other business
concept being operated by or under consideration by the Company as of the date
of the Executive's employment termination. Ownership by Executive, as a passive
investment, of less than one percent of the outstanding shares of capital stock
of any corporation listed on a national securities exchange or publicly traded
in the over-the-counter market shall not constitute a breach of this Section
8(a).

                     (b) Agreement Not to Hire. During Executive's employment
with the Company and for a period of twelve (12) consecutive months from and
after the termination of Executive's employment, whether such termination is
with or without Cause, is at the instance of Executive or the Company or occurs
before or after expiration of the Term, Executive will not, directly or
indirectly, in any manner or capacity, including without limitation as a
proprietor, principal, agent, partner, officer, director, investor, stockholder,
employee, member of any association, consultant, or otherwise, hire, engage, or
solicit any person who is then an employee of the Company at a director level or
above, or who was such an employee of the Company at any time during the
six-month period immediately preceding Executive's termination of employment.

                     (c) Agreement Not to Solicit. During Executive's employment
with the Company and for a period of twelve (12) consecutive months from and
after the termination of Executive's employment, whether such termination is
with or without Cause, is at the instance of Executive or the Company or occurs
before or after expiration of the Term, Executive will not, directly or
indirectly, in any manner or capacity including without limitation as a
proprietor, principal, agent, partner, officer, director, stockholder, employee,
member of any association, consultant, or otherwise, solicit, request, advise,
or induce any current or potential customer, supplier, vendor, franchisee or
other business contact of the Company to cancel, curtail, or otherwise change
its relationship adversely to the Company, or interfere in any manner with the
relationship between the Company and any of its customers, suppliers, vendors,
franchisees or other business contacts.

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                                                                          Page 6
<PAGE>

                     (d) Modification. If the duration of, the scope of, or any
business activity covered by, any provision of this Section 8 exceeds that which
is valid and enforceable under applicable law, such provision will be construed
to cover only that duration, scope, or activity that is determined to be valid
and enforceable. Executive hereby acknowledges that this Section 8 will be
construed so that its provisions are valid and enforceable to the maximum
extent, not exceeding its express terms, possible under applicable law.

                     (e) No Adequate Remedy at Law. Executive hereby
acknowledges that the provisions of this Section 8 are reasonable and necessary
to protect the legitimate interests of the Company and that any violation of
this Section 8 by Executive will cause substantial and irreparable harm to the
Company to such an extent that monetary damages alone would be an inadequate
remedy therefor. Accordingly, in the event of any actual or threatened breach of
any such provisions, the Company will, in addition to any other remedies it may
have, be entitled to injunctive and other equitable relief to enforce such
provisions, and such relief may be granted without the necessity of proving
actual monetary damages.

                  9. TERMINATION OF EMPLOYMENT.

                     (a) The Executive's employment with the Company under this
Agreement will terminate upon:

                         (i) Expiration of the Term following notice of
                  non-renewal pursuant to Section 1 of this Agreement;

                         (ii) The Company providing written notice to Executive
                  of the termination of Executive's employment, effective as of
                  the date stated in such notice;

                         (iii) The Company's receipt of Executive's written
                  resignation from the Company, effective not earlier than 30
                  days after delivery of such written notice of resignation,
                  provided that the Board may waive such notice or relieve
                  Executive of Executive's duties during such notice period;

                         (iv) Executive's Disability; or

                         (v) Executive's death.

                     (b) The date upon which Executive's termination of
employment with the Company is effective is the "Termination Date." For purposes
of Section 10 of this Agreement only, the Termination Date shall mean the date
on which a "separation from service" has occurred for purposes of Section 409A
of the Internal Revenue Code and the regulations and guidance thereunder (the
"Code").

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                                                                          Page 7
<PAGE>

                  10. PAYMENTS UPON INVOLUNTARY TERMINATION WITHOUT CAUSE OR
RESIGNATION FOR GOOD REASON. If Executive's employment with the Company is
terminated (i) involuntarily at the initiative of the Company without Cause
(including termination upon expiration of the Term following notice of
non-renewal by the Company pursuant to Section 1) or (ii) on the initiative of
Executive for Good Reason such that Executive's Termination Date occurs within
six months after the first occurrence of a condition giving rise to Good Reason
(as described in Section 14(d)(i) - (iv) below), then, unless such Termination
Date occurs upon or within one year following a Change in Control, in addition
to such base salary and any incentive compensation for the last completed fiscal
year that has been earned but not paid to Executive as of the Termination Date,
the Company shall provide to Executive the severance payments and benefits set
forth in Sections 10(a), (b), (c) and (d) below, subject to the conditions in
Section 12:

                     (a) Base Salary Continuation. The Company shall pay to
Executive an amount equal to six months of Executive's base salary in effect as
of the Termination Date, but not to exceed a maximum amount under this Section
10(a) of two times the lesser of:

                         (i) The Code ss. 401(a)(17) compensation limit for the
                  year in which the Termination Date occurs; or

                         (ii) Executive's annualized compensation based upon the
                  annual rate of pay for services to the Company for the
                  calendar year prior to the calendar year in which the
                  Termination Date occurs (adjusted for any increase during that
                  year that was expected to continue indefinitely if Executive
                  had not separated from service).

 Subject to Section 12, such salary continuation shall be paid to Executive in
accordance with the Company's regular payroll schedule, at the regular base
salary payroll rate in effect as of the Termination Date, commencing on the
first regular payroll date of the Company that occurs following the Termination
Date and continuing for six months. The Company and Executive intend the
payments under this Section 10(a) to be a "separation pay plan due to
involuntary separation from service" under Treas. Reg. ss. 1.409A-1(b)(9)(iii).

                     (b) Supplemental Salary Continuation. The Company shall pay
to Executive an additional amount equal to (i) if Executive has been employed
continuously with the Company as of the Termination Date for less than five
years, six months of Executive's base salary in effect as of the Termination
Date, or (ii) if Executive has been employed continuously with the Company as of
the Termination Date for five years or more, twelve months of Executive's base
salary in effect as of the Termination Date. Subject to Section 12, such
supplemental salary continuation shall be paid to Executive in accordance with
the Company's regular payroll schedule, at the regular base salary payroll rate
in effect as of the Termination Date, commencing on the first regular payroll
date of the Company that occurs following the completion of all payments under
Section 10(a) and continuing for six months (or twelve months as applicable if
Executive has been employed continuously for five years or more). The Company
and Executive intend the payments under this section 10(b) to be deferred
compensation payable in compliance with the requirements of Section 409A of the
Code.

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                                                                          Page 8
<PAGE>

                     (c) Incentive Pay. If the Termination Date is any day other
than the last day of the plan year under the CIP, the Company shall pay to
Executive an amount equal to a prorated portion of the award that would have
been payable to Executive under the CIP for such plan year based on actual
performance towards objectives, prorated based on the number of days of the plan
year occurring through the Termination Date divided by 365. Any individual
performance objectives applicable to Executive for the fiscal year shall be
deemed to have been met at a level resulting in payout of 50% of the award
amount allocated to such individual objectives. The payment shall be paid to
Executive at the same time and in the same manner as CIP awards are paid to
other executives of the Company pursuant to the CIP, but not later than 2 1/2
months following the end of the fiscal year in which the Termination Date
occurs, provided that Executive has satisfied the conditions set forth in
Section 12. Any separation pay that may become payable pursuant to this Section
10(c) is intended to be a short-term deferral not subject to the requirements of
Section 409A of the Code.

                     (d) Medical Benefits. If Executive (and/or Executive's
covered dependents) is eligible for and properly elects to continue group
medical insurance coverage, as in place immediately prior to the Termination
Date, and if Executive continues to pay the employee portion of such medical
coverage, the Company will pay or reimburse the employer portion of such
coverage until the earlier of (i) (A) if Executive has been employed
continuously with the Company as of the Termination Date for less than five
years, twelve months after the Termination Date, or (B) if Executive has been
employed continuously with the Company as of the Termination Date for five years
or more, eighteen months after the Termination Date, or (ii) the date Executive
(and Executive's covered dependents) are no longer eligible for medical
continuation coverage under COBRA.

                  11. PAYMENT TIMING FOLLOWING CHANGE IN CONTROL. If Executive's
employment with the Company is terminated (i) involuntarily at the initiative of
the Company without Cause (including termination upon expiration of the Term
following notice of non-renewal by the Company pursuant to Section 1) or (ii) on
the initiative of Executive for Good Reason such that Executive's Termination
Date occurs within six months after the first occurrence of a condition giving
rise to Good Reason (as described in Section 14(d)(i) - (iv) below), and if such
Termination Date occurs upon or within one year following a Change in Control,
then, in addition to such base salary and any incentive compensation for the
last completed fiscal year that has been earned but not paid to Executive as of
the Termination Date, the Company shall provide to Executive the severance
payments and benefits set forth in Sections 10(a), (b), (c) and (d) above,
subject to the conditions in Section 12, except that the salary continuation
payments set forth in Sections 10(a) and (b) shall be paid to Executive in a
single lump sum as soon as administratively feasible following the Termination
Date, but in no event more than 2 1/2 months following the Termination Date. Any
such lump sum payment pursuant to this Section 11 is intended to be a short-term
deferral not subject to the requirements of Section 409A of the Code.

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                                                                          Page 9
<PAGE>

                  12. CONDITIONS. Notwithstanding anything above to the
contrary, the Company will not be obligated to make any payments to Executive
under Section 10 or Section 11 hereof unless: Executive has signed a release of
claims in favor of the Company and its affiliates and related entities, and
their directors, officers, insurers, employees and agents, in a form prescribed
by the Company (but such release will not require Executive to release any
rights under any qualified employee benefit plan of the Company in which
Executive is a participant or any rights to indemnification as an employee,
officer, or director of the Company); all applicable rescission periods provided
by law for releases of claims shall have expired and Executive shall have signed
and not rescinded the release of claims; and Executive is in material compliance
with the terms of this Agreement as of the dates of such payments.

                  13. OTHER TERMINATION. If Executive's employment with the
Company is terminated:

                     (a) by reason of Executive's abandonment of Executive's
employment or resignation for any reason other than Good Reason;

                     (b) by reason of termination of Executive's employment by
the Company for Cause;

                     (c) upon death or Disability; or

                     (d) upon or following expiration of the Term following
notice of non-renewal by Executive pursuant to Section 1,

then the Company will pay to Executive, or Executive's beneficiary or
Executive's estate, as the case may be, such base salary that has been earned
but not paid to Executive as of the Termination Date, payable pursuant to the
Company's normal payroll practices and procedures, and such incentive
compensation that has been earned as of the Termination Date, payable as
provided in the applicable plans or programs.

                  14. DEFINITIONS.

                     (a) Cause. "Cause" hereunder means:

                         (i) Executive's commission of any act constituting a
                  felony, or Executive's conviction or guilty or no contest plea
                  to any criminal misdemeanor involving fraud, misrepresentation
                  or theft;

                         (ii) gross misconduct or any act of fraud, disloyalty
                  or dishonesty by Executive related to or connected with
                  Executive's employment by the Company or otherwise likely to
                  cause material harm to the Company or its reputation;

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                                                                         Page 10
<PAGE>

                         (iii) a material violation by Executive of the
                  Company's policies or codes of conduct; or

                         (iv) the willful or material breach of this Agreement
                  by Executive.

                     (b) Change in Control. "Change in Control" hereunder shall
mean any change in effective control or ownership of the Company that (i)
constitutes a Change in Control as such term is defined under the Buffalo Wild
Wings, Inc. 2003 Equity Incentive Plan, as in effect from time to time, and (ii)
constitutes a change in ownership or effective control, or a change in the
ownership of a substantial portion of the assets, of the Company under Code
Section 409A.

                     (c) Disability. "Disability" hereunder means any medically
determinable physical or mental impairment that can be expected to result in
death or can be expected to last for a continuous period of not less than six
months, where such impairment causes the Executive to be unable to perform the
duties of Executive's position of employment or any substantially similar
position of employment.

                     (d) Good Reason. "Good Reason" hereunder means any of the
following conditions arising without the consent of Executive, provided that
Executive has first given written notice to the Company of the existence of the
condition within 90 days of its first occurrence, and the Company has failed to
remedy the condition within 30 days thereafter:

                         (i) a material diminution in the Executive's base
                  salary (other than a reduction permitted by Section 3(a) above
                  in the case of a general reduction for all executive
                  officers);

                         (ii) a material diminution in the Executive's
                  authority, duties, or responsibilities;

                         (iii) relocation of Executive's principal office more
                  than 50 miles from its current location; or

                         (iv) any other action or inaction that constitutes a
                  material breach by the Company of any terms or conditions of
                  this Agreement, which breach has not been caused by Executive.

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                                                                         Page 11
<PAGE>

                  15. OTHER POST-TERMINATION OBLIGATIONS.

                     (a) Other Obligations. In the event of termination of
Executive's employment, the sole obligation of the Company under this Agreement
will be its obligation to make the payments called for by Sections 10, 11 or 13
hereof, as the case may be, and the Company will have no other obligation to
Executive or to Executive's beneficiary or Executive's estate, except as
otherwise provided by law or by the terms of any employee benefit plans or
programs, or of any incentive compensation or stock ownership plans, then
maintained by the Company in which Executive participates.

                     (b) Immediately upon termination of Executive's employment
with the Company for any reason, Executive will resign all positions then held
as a director or officer of the Company and of any subsidiary, parent or
affiliated entity of the Company.

                     (c) Upon termination of Executive's employment with the
Company, Executive shall promptly deliver to the Company any and all Company
records and any and all Company property in Executive's possession or under
Executive's control, including without limitation manuals, books, blank forms,
documents, letters, memoranda, notes, notebooks, reports, printouts, computer
disks, flash drives or other digital storage media, source codes, data, tables
or calculations and all copies thereof, documents that in whole or in part
contain any trade secrets or confidential, proprietary or other secret
information of the Company and all copies thereof, and keys, access cards,
access codes, passwords, credit cards, personal computers, handheld personal
computers or other digital devices, telephones and other electronic equipment
belonging to the Company.

                     (d) Following termination of Executive's employment with
the Company for any reason, Executive will, upon reasonable request of the
Company or its designee, cooperate with the Company in connection with the
transition of Executive's duties and responsibilities for the Company; consult
with the Company regarding business matters that Executive was directly and
substantially involved with while employed by the Company; and be reasonably
available, with or without subpoena, to be interviewed, review documents or
things, give depositions, testify, or engage in other reasonable activities in
connection with any litigation or investigation, with respect to matters that
Executive then has or may have knowledge of by virtue of Executive's employment
by or service to the Company or any related entity.

                     (e) Executive will not malign, defame or disparage the
reputation, character, image, products or services of the Company, or the
reputation or character of the Company's directors, officers, employees or
agents. Officers or Directors of the Company shall not make any public statement
that disparages or defames Executive's reputation or character. Nothing in this
Section 15(e) shall be construed to limit or restrict Executive or the Company
from taking any action that such party in good faith reasonably believes is
necessary to fulfill such party's fiduciary obligations to the Company, from
making any statement internal to the Company's operations for legitimate
business reasons, or from providing truthful information in connection with any
legal proceeding, government investigation or other legal matter.

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                                                                         Page 12
<PAGE>

                  16. MISCELLANEOUS.

                     (a) Tax Withholding. The Company may withhold from any
amounts payable under this Agreement such federal, state and local income and
employment taxes as the Company shall determine are required to be withheld
pursuant to any applicable law or regulation. The Company makes no assurances to
Executive as to the tax treatment of any payments hereunder and, except with
respect to tax amounts withheld by the Company, Executive will be responsible
for payment and remittance of all taxes due with respect to compensation
received or imputed under this Agreement.

                     (b) Section 409A. This Agreement and the payments hereunder
are intended to be exempt from or to satisfy the requirements of Section
409A(a)(2), (3) and (4) of the Internal Revenue Code of 1986, as amended
("Code"), including current and future guidance and regulations interpreting
such provisions, and should be interpreted accordingly.

                     (c) Governing Law. All matters relating to the
interpretation, construction, application, validity, and enforcement of this
Agreement will be governed by the laws of the State of Minnesota without giving
effect to any choice or conflict of law provision or rule, whether of the State
of Minnesota or any other jurisdiction, that would cause the application of laws
of any jurisdiction other than the State of Minnesota.

                     (d) Jurisdiction and Venue. Executive and the Company
consent to jurisdiction of the courts of the State of Minnesota and/or the
United States District Court, District of Minnesota, for the purpose of
resolving all issues of law, equity, or fact arising out of or in connection
with this Agreement. Any action involving claims of a breach of this Agreement
must be brought in such courts. Each party consents to personal jurisdiction
over such party in the state and/or federal courts of Minnesota and hereby
waives any defense of lack of personal jurisdiction. Venue, for the purpose of
all such suits, will be in Hennepin County, State of Minnesota.

                     (e) Waiver of Jury Trial. To the extent permitted by law,
Executive and the Company waive any and all rights to a jury trial with respect
to any dispute arising out of or relating to this Agreement.

                     (f) Entire Agreement. This Agreement contains the entire
agreement of the parties relating to Executive's employment with the Company and
supersedes all prior agreements and understandings with respect to such subject
matter, including without limitation the Prior Agreement, and the parties hereto
have made no agreements, representations, or warranties relating to the subject
matter of this Agreement that are not set forth herein. The RSU Agreements
remain in full force and effect as amended.

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                                                                         Page 13
<PAGE>

                     (g) No Violation of Other Agreements. Executive hereby
represents and agrees that neither (i) Executive's entering into this Agreement
nor (ii) Executive's carrying out the provisions of this Agreement, will violate
any other agreement (oral, written, or other) to which Executive is a party or
by which Executive is bound.

                     (h) Assignment. This Agreement shall not be assignable, in
whole or in party, by either party without the written consent of the other
party, except that the Company may, without the consent of Executive, assign or
delegate all or any portion of its rights and obligations under this Agreement
to any corporation or other business entity (i) with which the Company may merge
or consolidate, (ii) to which the Company may sell or transfer all or
substantially all of its assets or capital stock, or (iii) of which 50% or more
of the capital stock or the voting control is owned, directly or indirectly, by
the Company or which is under common ownership or control with the Company. Any
such current or future successor, parent, affiliate or other joint venture
partner to which any right or obligation has been assigned or delegated shall be
deemed to be the "Company" for purposes of such rights or obligations of this
Agreement.

                     (i) Amendments. No amendment or modification of this
Agreement will be effective unless made in writing and signed by the parties
hereto.

                     (j) Counterparts. This Agreement may be executed by
facsimile signature and in any number of counterparts, and such counterparts
executed and delivered, each as an original, will constitute but one and the
same instrument.

                     (k) Severability. Subject to Section 8(d) hereof, to the
extent that any portion of any provision of this Agreement is held invalid or
unenforceable, it will be considered deleted herefrom and the remainder of such
provision and of this Agreement will be unaffected and will continue in full
force and effect.

                     (l) Survival. The provisions of this Agreement that by
their terms or implication extend beyond the Term, including without limitation
Sections 5, 7, 8, 15, and 16 of this Agreement, shall survive the termination or
expiration of the Term and termination of Executive's employment with the
Company for any reason.

                     (m) Captions and Headings. The captions and paragraph
headings used in this Agreement are for convenience of reference only and will
not affect the construction or interpretation of this Agreement or any of the
provisions hereof.

                     (n) Notices. Any notice required or permitted to be given
under this Agreement shall be in writing and shall be deemed to have been duly
given when (i) delivered personally; (ii) sent by facsimile or other similar
electronic device with confirmation; (iii) delivered by reliable overnight
courier; or (iv) three business days after being sent by registered or certified
mail, postage prepaid, and in the case of (iii) and (iv) addressed as follows:

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                                                                         Page 14
<PAGE>

If to the Company:       Buffalo Wild Wings, Inc.
                         5500 Wayzata Boulevard, Suite 1600
                         Minneapolis, MN  55416
                         Fax: (952) 593-9787
                         Attention:  Board of Directors
                         Copy to: EVP, General Counsel and Secretary

If to Executive:         Latest address of Executive in the formal records of
                         the Company

                  Executive and the Company have executed this Agreement
effective as of the date set forth in the first paragraph.

                               BUFFALO WILD WINGS, INC.

                               By:      /s/ Mary J. Twinem
                                  ----------------------------------------------
                                  Mary J. Twinem
                                  Its: Executive Vice President, Chief Financial
                                       Officer and Treasurer

                                        /s/ Sally J. Smith
                               -------------------------------------------------
                               Sally J. Smith

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                                                                         Page 15

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