Document:

EXHIBIT 10.2

 

LEASE TERMINATION
AGREEMENT

 

This Lease Termination Agreement (the “Agreement”), made and entered
into this 29th day of June, 2005, by and between PKM Properties,
LLC, a Minnesota limited liability company (“Landlord”) and Medical CV, Inc.,
a Minnesota corporation (“Tenant”).

 

RECITALS

 

Landlord and Tenant entered into a lease dated April 4, 2003 (the “Lease”)
for the property located at 9725 South Robert Trail, Inver Grove Heights,
Minnesota (the “Property”).  Tenant
desires to terminate the Lease.

 

Landlord is willing to consider the early termination of the Lease if
Landlord, at no cost or expense to Landlord, is able to sell the Property or to
lease the Property upon terms and conditions acceptable to Landlord, in its
sole and absolute discretion.

 

In order to induce the Landlord to attempt to sell or lease the
Property to a third party and to terminate the Lease with Medical CV, the
parties have agreed to the terms and conditions set
forth in this Agreement.

 

NOW, THEREFORE, in consideration of premises and mutual obligations of
the parties contained herein, each of them does hereby represent, covenant and
agree with the other as follows:

 

1.                                       Tenant
agrees:

 

a.                                       To
reimburse Landlord for all Costs and Expenses on a monthly basis.

 

b.                                      The
Costs and Expenses shall include all costs and expenses incurred by Landlord
relating to the lease or sale of the Property, including but not limited to
legal fees, brokerage fees and commissions, accounting fees, state deed tax,
surveys, environmental reports and any other costs and expenses relating to
this Agreement, the listing agreements, a lease, a purchase agreement and
closing a lease or sale of the Property.

 

c.                                       To
the termination of the Lease on not less than 120 days prior written notice
from Landlord and to vacate the Property as of such termination date on the
same terms and conditions set forth in the Lease as if the Lease term had
expired.

 

d.                                      To
all of the terms and conditions set forth on the attached Contract for
Exclusive Right to Represent Landlord between Landlord and Raymond E.
Piiraninen and the Exclusive Brokerage Listing Agreement for Sale or Lease
between Landlord and Equity Commercial Services, Inc. (collectively, the “Listing
Agreements”).

 

2.                                       Landlord
agrees to enter into the Listing Agreements and to attempt to sell or lease the
Property on terms and conditions acceptable to the Landlord, in its sole and
absolute discretion.

 

3.                                       Landlord
and Tenant agree that their first priority is for the Landlord to attempt to
sell the Property and that the Landlord will only consider a potential lease of
the Property in the event there is no opportunity to sell the Property on terms
and conditions acceptable to the Landlord.

 

4.                                       Tenant
acknowledges that Landlord is listing the Property for sale at a cash price of
$4,860,000.  Tenant acknowledges that
Landlord is not willing to sell the Property to a third party unless it is upon
economic terms and conditions acceptable to Landlord, in its sole and absolute
discretion.  If the Landlord accepts
terms and conditions for the sale of the Property which provide net cash
proceeds to Landlord at closing after the payment of all Costs and Expenses,
and before the payment of the first mortgage, of at least $4,000,000 (the “Minimum
Net Sale Proceeds”), Landlord will not require that Tenant pay a lease
termination fee to Landlord.  If Tenant
requests that Landlord accept any terms and conditions for the sale of the
Property which provide that Landlord will receive cash at closing of less than
the Minimum Net Sale Proceeds, then Tenant agrees that it will pay a lease
termination fee to Landlord equal to the difference between the Minimum Net
Sale Proceeds and the actual net sale proceeds received by the Landlord from
such sale.

 

 

5.                                       Tenant
acknowledges that Landlord is not willing to lease the Property to a third
party unless it is upon the same economic terms and conditions remaining for
the balance of the term under the Lease. 
If Tenant requests that Landlord accept any terms and
conditions less than such economic terms and conditions, then Tenant agrees
that it will pay a lease termination fee to Landlord in such amount as to put
Landlord in the same position as it would have been in had the Lease not been
terminated.

 

6.                                       This
Agreement represents the entire agreement between the parties as to the matters
contained herein and supersedes or replaces any other agreements between the
parties as to such matters.

 

 

IN WITNESS WHEREOF, the Landlord and Tenant have caused this Agreement
to be duly executed as of the date first above written.

 

 

	
  LANDLORD:

  	
  PKM PROPERTIES, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
    /s/ Paul K. Miller

  	
   

  
	
   

  	
  Paul K.
  Miller, Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
  TENANT:

  	
  MEDICAL CV, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Marc P. Flores

  	
   

  
	
   

  	
   

  	
  Its President and Chief Executive OfficerExhibit 10.48

    
      
        

      

    

    JAS
      Financial Services, LLC

    930
      Skyline Terrace

    Laguna
      Beach, CA 92651

    

    

    September
      8, 2005

    

    Carl
      R.
      Klein, Esq. 

    Chairman
      of the Board of Directors

    M-Wave,
      Inc.

    475
      Industrial Drive

    West
      Chicago, IL 60185

    

    RE:
      Financial Advisory Services Agreement

    

    Dear
      Carl:

    

    As
      we
      have discussed and as contemplated in Section 6 of the Settlement Agreement
      dated August 19, 2006 among M-Wave, Inc. (“M-Wave”), the members of its Board of
      Directors and other parties, JAS
      Financial Services, LLC ("JAS") hereby agrees to provide the Board of Directors
      of M-Wave
      with
      financial advisory services on
      the
      terms and conditions set forth herein.

    

    JAS
      will
      perform such services and as requested and directed by the Board of Directors
      of
      M-Wave from time to time. Such advisory services shall be limited, solely to,
      the following:

    

    
      	 	
              1.

            	
              Assist
                in the development of strategic alternatives to maximize the shareholder
                value of M-Wave;

            

    

    

    
      	 	
              2.

            	
              Assist
                in the evaluation, identification and execution of appropriate sale,
                merger or financing transaction strategies for
                M-Wave;

            

    

    

    
      	 	
              3.

            	
              Actively
                assist and participate in the valuation, structuring, and negotiation
                of
                terms and conditions and closing of such M-Wave transactions and
                related
                financings, excluding Wells Fargo Business Credit and Mercator, which
                JAS
                will participate in only as requested by M-Wave’s CEO or by such investor
                or potential investor; and

            

    

    

    
      	 	
              4.

            	
              Coordinate
                all such activities and provide any other related services at the
                request
                and direction of the Board of Directors of
                M-Wave.

            

    

    

    JAS
      will
      not be involved in matters of M-Wave’s corporate governance, SEC or NASDAQ
      compliance or investor relations, except (a) to the extent specifically asked
      to
      do so by M-Wave’s Board of Directors or (b) to the extent directly related to
      the advisory services described above.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    JAS
      Compensation

    

    In
      consideration for performing its services hereunder, M-Wave will compensate
      JAS
      as follows:

    

    
      	 	
              1.

            	
              A
                lump sum non-refundable retainer payment of $25,000, payable upon
                execution of this Agreement. A monthly retainer payment of $15,000
                per
                month, payable in arrears on the 15th of each month beginning September
                15, 2005 through December 15, 2005, plus a half-month retainer of
                $7,500
                payable in arrears on December 31, 2005. One-half (1/2) of such retainer
                payments shall be applied against any transaction success fees earned
                pursuant to Sections 3 described below.

            

    

    

    
      	 	
              2.

            	
              Upon
                execution of this Agreement, JAS shall receive a five year warrant
                for
                50,000 shares of MWAV common stock, priced at the lower of the market
                on
                the date of execution of this Agreement or the 5 day average preceding
                the
                date of the Agreement.

            

    

    

    
      	 	
              3.

            	
              A
                transaction success fee, payable upon the closing of any such transaction,
                as follows:

            

    

    

    
      	 	
              a.

            	
              Two
                percent (2%) of any new debt placement (excluding Wells Fargo Business
                Credit Inc. and Mercator), including, senior secured debt, subordinated
                debt, mezzanine debt or “Tranche B”
debt.

            

    

    

    
      	 	
              b.

            	
              Four
                percent (4%) of any private placement of shares of M-Wave’s stock (either
                common or preferred), excluding
                Mercator.

            

    

    

    
      	 	
              c.

            	
              Three
                percent (3%) of the gross enterprise value or total consideration
                received
                with respect to any merger of M-Wave with any other entity or acquisition
                of M-Wave by any other entity.

            

    

    

    
      	 	
              4.

            	
              In
                the event that JAS, in its sole discretion, engages the services
                of a
                third party for the purpose of assisting JAS with its services or
                duties
                hereunder, the compensation of such third party retained by JAS will
                be
                the sole responsibility of JAS.

            

    

    

    
      	 	
              5.

            	
              In
                the event that JAS presents a bona fide offer for any of the transactions
                described above that is accepted by a majority of the Board of Directors
                of M-Wave, but that is not closed as a result of subsequent actions
                or
                failure to take action by M-Wave or its stockholders, then JAS shall
                be
                entitled to a lump-sum success fee of $50,000 upon the termination
                of this
                Agreement.

            

    

    

    
      	 	
              6.

            	
              In
                the event that JAS presents a bona fide offer for any of the transactions
                described above that is accepted by all members of the Board of Directors
                of M-Wave or all the members other than Joseph A. Turek, but that is
                not closed as a result of the failure of the stockholders to vote in
                favor of the transaction (including a failure of Joseph A. Turek
                to vote
                in favor of such transaction), then JAS shall be entitled to a lump-sum
                success fee of $150,000 upon the termination of this Agreement; provided
                that if JAS is entitled to the $150,000 success fee pursuant to this
                Section 6, he shall not be entitled to any fee pursuant to Section
                5.

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 	
              7.

            	
              For
                transactions completed during the term of this Agreement, or any
                extension
                thereof, or within one year after the termination of the Agreement,
                JAS
                shall be entitled to receive the transaction success fees described
                above
                for those transactions with which JAS was involved at the request
                and
                direction of the Board of Directors of M-Wave.

            

    

    

    
      	 	
              8.

            	
              M-Wave
                shall reimburse JAS for reasonable out-of-pocket expenses, as requested
                and approved by M-Wave, upon the presentation of an expense invoice
                and
                appropriate back-up documentation.

            

    

    

    

    Term

    

    This
      Agreement will have an initial term through December 31, 2005. The Agreement
      may
      be extended by mutual agreement beyond January 1, 2005 on a month-to-month
      basis. In the event of any termination of this Agreement, M-Wave shall continue
      to be obligated to pay to JAS (a) any compensation earned by JAS through the
      date of termination, plus any amounts earned under Sections 5, 6 and 7 above,
      and for a period of one year thereafter, as described in this Agreement, and
      (b)
      any reasonable out-of-pocket expenses incurred by JAS prior to termination
      in
      connection with this Agreement. 

    

    The
      confidentiality and indemnity provisions of this Agreement shall remain
      operative and in full force and effect regardless of any such
      termination.

    

    JAS
      will
      provide M-Wave with a list of prospects and status of discussions from time
      to
      time as reasonably requested by the Board of Directors, and upon termination,
      if
      requested by M-Wave, a list of all prospects with whom JAS was working at or
      prior to termination.

    

    No
      Guarantee Of Success

    

    JAS
      cannot guarantee the successful completion of any transactions for M-Wave and
      makes no such guarantee herein, or as the basis for any component of our
      compensation.

    

    Confidentiality

    

    JAS
      agrees to maintain the confidentiality of any information it learns during
      the
      course of this engagement except as is necessary to fulfill the functions
      described in the engagement letter and such confidentiality obligation shall
      continue for a period of one year after termination of this Agreement; except
      where information is part of the public domain prior to the date of this
      Agreement; or such information becomes part of the public domain not due to
      some
      unauthorized act or omission of JAS after this Agreement is executed; or JAS
      can
      demonstrate that it had independently developed knowledge of such information
      prior to the date of this Agreement; or such information is disclosed to JAS
      by
      a third party who has the right to make such disclosure; or permission to
      disclose said information or to make use thereof is obtained by JAS from
      M-Wave.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Indemnification

    

    M-Wave
      agrees to indemnify, defend and hold JAS harmless against any loss, liability,
      claim or expense, including reasonable attorneys’ fees, that JAS might incur
      arising in any manner out of or in connection with:

    

    (a)
      the
      rendering of services by JAS hereunder or

    

    (b)
      any
      untrue, incorrect, or incomplete information provided to JAS or placed in the
      public domain by M-Wave,

    

    except
      to
      the extent that such loss, liability, claim or expense are determined in
      judicial rulings to have resulted from the gross negligence or willful
      misconduct of JAS. If JAS believes it is entitled to indemnity hereunder JAS
      shall notify M-Wave of the possible claim with reasonable promptness, and M-Wave
      shall not be liable to the extent that any losses, liabilities, claims or
      expenses that may arise are due to a delay in the notice given by
      JAS.

    

    JAS
      agrees to indemnify, defend and hold M-Wave harmless against any loss,
      liability, claim or expense, including reasonable attorneys’ fees, that M-Wave
      might incur arising in any manner out of or in connection with the willful
      or
      grossly negligent dissemination by JAS of information that is inconsistent
      with
      the information provided to JAS by M-Wave, except to the extent that such loss,
      liability, claim or expense are determined in judicial rulings to have resulted
      from the gross negligence or willful misconduct of M-Wave. If M-Wave believes
      it
      is entitled to indemnity hereunder M-Wave shall notify JAS of the possible
      claim
      with reasonable promptness, and JAS shall not be liable to the extent that
      any
      losses, liabilities, claims or expenses that may arise are due to a delay in
      the
      notice given by M-Wave.

    

    Independent
      Contractor

    

    JAS
      is an
      independent contractor. JAS is not M-Wave’s employee, partner, joint venturer or
      other affiliate. JAS is not authorized to contractually bind M-Wave in any
      matter, without prior written authorization.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Governing
      Law; Jurisdiction

    

    (a) This
      Agreement shall be governed by and interpreted under the laws of the State
      of
      Illinois.

    

    (b) The
      Parties agree that any and all disputes arising out of or relating in any way
      to
      this Agreement shall be litigated only in state court or federal court situated
      in Chicago, Illinois, and waive all objections based on personal jurisdiction
      or
forum
      non-conveniens.

    

    

    

    This
      Agreement is the entire agreement between the parties relating to the subject
      matter hereof, and supersedes all prior understandings, agreements and
      documentation. Any modifications to or waivers of provisions of this Agreement
      must be in writing and signed by both parties. If any provision in this
      Agreement is held by a court of competent jurisdiction to be invalid, void
      or
      unenforceable, such provision shall be enforced to the full extent it could
      lawfully be enforced, and the remaining provisions will continue in full effect.
      This Agreement is not assignable by either party without the prior written
      consent of the other. Without limiting the survival of other appropriate
      provisions, the agreements of confidentiality and indemnity shall survive the
      termination of this Agreement. This Agreement may be executed in multiple
      counterparts, each of which shall be deemed an original for all
      purposes.

    

    Sincerely
      yours,

    

    

    JAS
      Financial Services, LLC

    James
      A.
      Skelton

    Managing
      Member

    

    

    Agreed
      & Accepted:

    

    M-Wave,
      Inc. 

    

    

    
      	
              By:

            	
              ______________________

            	 	
              By:

            	
              ______________________

            
	 	
              Carl
                R. Klein

            	 	 	
              Joe
                Turek

            
	 	
              Chairman
                of the Board

            	 	 	
              Chief
                Executive Officer

            
	 	 	 	 	 
	 	 	 	 	 
	
              Date:

            	
              September
                8, 2005

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