Donald Bernard

1 A. I can contact him, yeah.2 Q. Okay. Um, and are you still with3 Franklin Power today?4 A. No. Franklin Power was merged — or it5 •was terminated, and the business was taken over by6 Glacial.7 Q. When did that happen?8 A . I would think it would have been around9 two thousand and — around 2005 —

10 Q. What was it-11 A. — roughly.12 Q. How was it terminated?13 A. Business was -- the company itself?14 Q. Yeah.15 A . I don't recall now how it was terminated;16 it just — the assets were — were contracts and17 they ran out, and then Glacial picked up the18 contracts. So I don't know what happened to — to19 Franklin Power. As far as terminating it? Is20 that what you're asking?21 Q. I don't know what "terminating" means.22 A. Well, I don't even — I don't know what23 you're asking.24 Q. Was it - did it go bankrupt?25 A. Oh, no.Page 85

1 Q. Okay. Doing the same thing?2 A. Yes.3 Q. Okay..4 A. A different business model, but in the5 same general business.6 Q. Did you own shares in ~ when it was7 Energy West or when it was Franklin Power?8 A. No.9 Q. You didn't have any — were any shares

10 given to you?11 A. No.12 Q. How about when it became Glacier ~13 Glacial Power?14 A. Yes.15 Q. You own shares now. How many shares do16 you own?17 A. I don't know the number. It 's--I18 already testified that we had about 35 percent19 interest.20 Q. Okay. And is Mole the only other21 shareholder in the company?22 A. There — he, and then a smaller portion23 is owned by one other shareholder.24 Q. What percentage?25 A. About 15 percent.Page 87

1 Q. Okay. But its assets were sold?2 A. No. They were contracts that •*3 Q. Okay.4 A. — were completed —5 Q. Okay.6 A. — and the purpose for which it was set7 up was finished.8 Q. What was the purpose for which it was set9 up?

10 A. Selling power -11 Q. Okay.12 A. — buying and selling power.13 Q. Who were the contracts with?14 A. Well, there were numerous contracts to —15 commercial and res — and — commercial and16 business users.17 Q. Okay. So they were all completed?18 A. They were completed.19 Q. Okay. And then Franklin Power took them20 over?21 A. No-22 Q. Or Glacial took over -23 A. - Glacial -24 Q. Okay.25 A. — started with new contracts.Page 86

1 Q. Who is that?2 A. That's Peter Koeck.3 Q. When did he buy into it?4 A. That would have been around — I think5 about 2005.6 Q. Okay. How much money did he buy into it7 with?8 A. I don't recall that there's any purchase9 money used.

10 Q. How did he purchase that 10 percent11 interest, then?12 A. Did you say 10 percent?13 Q. The — the - did — I thought you told14 me it was about 10 percent.15 A. No, 15.16 Q. Okay, I'm sorry. 15 percent.17 A.. Yes.18 Q. Okay. 15 percent interest is Peter19 Koeck?20 A. Yes.21 Q. How did he acquire that 15 percent22 interest?23 A. It was compensation for a loan that he24 had made.25 Q. What loan did he make?Page 88

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Charles Fisher Court Reporting, Inc.503 E. Mendenhall, Bozeman, MT 59715 (406) 587-9016

Donald Bernard

1 A. I — I don't recall the exact amount, but2 he made a loan.3 Q. When?4 A. About 2005--5 Q. Okay.6 A. - I believe.7 Q. And you don't know the amount?8 A. I don't recall the amount.9 Q. Can you guess? Five dollars?

10 A. I can't guess.11 Q. A million dollars?12 A. I can't speculate on that. I — I just13 don't know.14 Q. Where is that information?15 A. I would imagine that the company has it.16 Q. Okay. And you have access to it?17 A. No. I'm an adviser to that company; I18 don't have access to its books.19 Q. Okay. Can you get that information for20 me?21 A. I don't know if I can get it, but you'll22 have — you can talk to my attorney about it. I23 --1 --24 Q. Someone knows ~25 A. — don't know if I can get it.

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1 Q. ~ name that you're related to?2 A. No.3 Q. Okay. The company owns the shares?4 A. No. They're — they're — they haven't5 handed us share certificates, no.6 Q. Okay. So, why not?7 A. Because we have an agreement with them to8 hold that interest for us.9 Q. What's the — why — why are they holding

10 it for you?11 A.. We just set it up that way.12 Q. Why?13 A. We wanted it to be held for our benefit,14 and there's no reason to issue actual shares, as15 far as I know.16 Q. Okay. So you don't want the shares in17 your name?18 A. We can have any time we want them, but we19 have an agreement for this 35 percent.20 Q. Is that a written agreement?21 A. Yes.22 Q. Who is it with?23 A. Gary Mole.24 Q. The two of you signed it?25 A. Yes.

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1 Q. Someone knows at the company?2 A. Someone probably would know, yes.3 Q. Okay. If you — you and your wife have4 35 percent?5 A. Yes.6 Q. Okay. Do you own those shares jointly?7 A. Well, for the family, yes.8 Q. What does that mean?9 A. That it — that means it's for my family.

10 Q. Whose name is on the shares?11 A. They're being held just in — for me and12 my wife, my son--one son.13 Q. So whose name is on the shares?14 A. They're held under an agreement with the15 company and — I don't know diat they've actually16 been issued, is my agreement, and that would be17 about 35 percent.18 Q. So they're not — you don't have shares19 in your name?20 A. No.21 Q. Okay. Are there shares in your wife's22 name?23 A. No.24 Q. Okay. Are there shares in anyone's —25 A. No.

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1 Q. Okay. Where is it?2 A. He has a copy there and I have a copy.3 Q. Okay. What other companies are you4 affiliated with in any way?5 A. I'm not affiliated with any other6 companies, other than the Glacial companies that I7 mentioned to you. The mining operation, of8 course, is a part of it, and that's under the LLC.9 Q. What other companies?

10 A. The subsidiary name is Gemico, but it's11 all part of the same thing. So when you say,12 "other," are you referring to other in Glacial?13 Q. Well, Gemico is a sub of Glacial -14 A. Yes.15 Q. ~ is that your testimony?16 A. Yes.17 Q. Okay. And then there's another sub of18 Glacial, or is there only one sub of Glacial?19 A. Only one sub.20 Q. Okay. And that is Gemico —21 A. Mm-hmm.22 Q. — and that's the mining company?23 A. Yes.24 Q. Is that correct?25 A.. Yes.

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Charles Fisher Court Reporting, Inc.503 E. Mendenhall, Bozeman, MT 59715 (406) 587-9016