Document:

FINANCIAL CONSULTING AGREEMENT

THIS AGREEMENT (the "Agreement") is made and entered into by and between TURBINE TRUCK ENGINES, INC., a Delaware corporation (the "Company"); and LOU RUFFOLO (the "Consultant"); the Company and the Consultant being hereinafter collectively referred to as the "Parties" and generically as a "Party".

P R E A M B L E :

WHEREAS, the Consultant has substantial experience in the areas of financial consulting and capital financing; and

WHEREAS, the Company desires to retain the Consultant's services on an ongoing basis and has requested that the Consultant include the Company within its selected and limited group of clients; and

WHEREAS, the Consultant is agreeable to such arrangement and is willing to forego significant other opportunities of a similar nature, subject to the following terms and conditions:

NOW, THEREFORE, in consideration for the Consultant's agreement to perform the hereinafter described services as well as of the promises, the sum of TEN ($10.00) DOLLARS, and other good and valuable consideration, the receipt  and adequacy of which is hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows:

 

WITNESSETH:

ARTICLE ONE

RETENTION

1.1Duties - General Purpose

The Company hereby engages and retains the Consultant to act as its agent to assist it in completing due diligence in connection with the Company=s corporate development, developing financial and capital raising strategies, and to do all things the Consultant deems necessary to enable the Company to establish and expand its operations as envisioned in a business plan which has been discussed by the Parties.

1.2Duties - Operational

The Consultant's duties, which relate to the operation of the Company and for which he will receive the compensation specified elsewhere in this Agreement are:

 

(a)to assist in the development of a corporate financing package to meet required budgets; and 

(b) to assist in the completion of a private placement of the Company's common stock at $1.50 per share; and 

(c)to assist the Company in developing a public relations program. 

1.3Additional Duties

In the event the Company requests that the Consultant render services to it other than those specified in this Agreement, the Company and the Consultant shall enter into a written supplemental agreement setting forth the duties to be performed and the compensation therefore.

1.4Term

The term of this Agreement shall be one year and may be extended by mutual agreement of the Parties. 

ARTICLE TWO

CONSULTANT'S COMPENSATION

2.1Compensation

(a)  Consultant will be entitled to 100,000 options to acquire registered shares of the Company's common stock at $.50 per share upon execution of this Agreement; 

(b)  Consultant will be entitled to receive an additional 100,000 options to acquire registered shares of the Company's common stock at $.50 per share upon execution of the business development document; 

(c)  Consultant will be entitled to 200,000 options to acquire registered shares at $.50 per share upon completion of $1.5 million funding. 

2.2Miscellaneous

(a)  Closing is contingent upon the receipt by Consultant of the payments mentioned in Section 2.1 above.

(b)  The Company shall incorporate by reference this Agreement into any other Agreement designed to effectuate the intent of this Agreement.

(c)  The Company designates and empowers the Consultant to act as its agent and representative for the purposes of performing the Consultant's duties specified in Section One.

2.3Expenses

The Consultant shall not, acting as a Company agent, bind the Company to any agreements or obligations, unless the substance thereof has been contemplated in a written budget submitted to and approved by the Company.

2.4Other Compensation

No other compensation is contemplated by the Parties and the Company shall be liable for only the compensation as herein agreed.  Consultant acknowledges that his right to compensation is contingent upon the successful performance of his duties described above.

ARTICLE THREE

REPRESENTATIONS AND WARRANTIES

3.1  The Company hereby represents, warrants and covenants that it will keep the Consultant fully informed of all material Company plans and developments, that all such information will be true, and will not omit any information necessary, in light of the information provided, to render such information not misleading.

3.2  The Parties acknowledge that, except as herein set forth, there are no representations or warranties of any kind.

 

ARTICLE FOUR

CONFIDENTIALITY AND COMPETITION

4.1Confidentiality

The Consultant acknowledges that, in and as a result of its entry into this Agreement he will be making use of, acquiring and/or adding to, confidential information of special and unique nature and value relating to such matters as the Company's trade secrets, systems, procedures, manuals, confidential reports and lists of clients and financial sources; consequently, as material inducement to the entry into this Agreement by the Company, the Consultant hereby covenants and agrees that he shall not, at anytime during or following the term of this Agreement, directly or indirectly, personally use, divulge or disclose, for any purpose whatsoever, any of such confidential information which has been obtained by or disclosed to him as a result of his relationship with the Company, or the Company's Affiliates.  In the event of a breach or threatened breach by the Consultant of any of the provisions of this Article Four, the Company, in addition to and not in limitation of any other rights, remedies or damages available to the Company, whether at law or in equity, shall be entitled to a permanent injunction in order to prevent or to restrain any such breach by the Consultant, or by the Consultant's partners, agents, representatives, servants, employers, employees, affiliates and/or any and all persons directly or indirectly acting for or with him.

 

4.2Special Remedies

In view of the irreparable harm and damage which would undoubtedly occur to the Company as a result of a breach by the Consultant of the covenants or agreements contained in this Article Four, and in view of the lack of an adequate remedy at law to protect the Company's interests, the Consultant hereby covenants and agrees that the Company shall have the following additional rights and remedies in the event of a breach hereof:

(a)  The Consultant hereby consents to the issuance of a permanent injunction enjoining it from any violations of the covenants set forth in Section 4.1 hereof; and 

(b)  Because it is impossible to ascertain or estimate the entire or exact cost, damage or injury which the Company may sustain prior to the effective enforcement of such injunction, the Consultant hereby covenants and agrees to pay over to the Company, in the event he violates the covenants and agreements contained in Section 4.3 hereof, the greater of:

(i)  Any payment or compensation of any kind received by it because of such violation before the issuance of such injunction, or

(ii)  The sum of One Thousand Dollars ($1,000.00) per violation, which sum shall be liquidated damages, and not a penalty, for the injuries suffered by the Company as a result of such violation, the Parties hereto agreeing that such liquidated damages are not intended as the exclusive remedy available to the Company for any breach of the covenants and agreements contained in this Article Four, prior to the issuance of such injunction, the Parties recognizing that the only adequate remedy to protect the Company from the injury caused by such breaches would be injunctive relief. 

4.3Cumulative Remedies

The Consultant hereby irrevocably agrees that the remedies described in Section 4.2 hereof shall be in addition to, and not in limitation of, any of the rights or remedies to which the Company is or may be entitled to, whether at law or in equity, under or pursuant to this Agreement. 

4.4Acknowledgment of Reasonableness

The Consultant hereby represents, warrants and acknowledges that it has carefully read and considered the provisions of this Article Four and, having done so, agrees that the restrictions set forth herein are fair and reasonable and are reasonably required for the protection of the interests of the Company, its officers, directors and other employees; consequently, in the event that any of the above-described restrictions shall be held unenforceable by any court of competent jurisdiction, the Consultant hereby covenants, agrees and directs such court to substitute a reasonable judicially enforceable limitation in place of any limitation deemed unenforceable and, the Consultant hereby covenants and agrees that if so modified, the covenants contained in this Article Four shall be as fully enforceable as if they had been set forth herein directly by the Parties.  In determining the nature of this limitation, the Consultant hereby acknowledges, covenants and agrees that it is the intent of the Parties that a court adjudicating a dispute arising hereunder recognize that the Parties desire that this covenant not to compete be imposed and maintained to the greatest extent possible.

ARTICLE FIVE

MISCELLANEOUS

5.1Notices

All notices, demands or other written communications hereunder shall be in writing, and unless otherwise provided, shall be deemed to have been duly given on the first business day after mailing by United States registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

TO CONSULTANT:Lou Ruffolo

72 Robinson Road

Nobleton, Ontario 

                                                            LOG 1NO

 

TO THE COMPANY:Turbine Truck Engines, Inc.

1301 International Speedway Blvd.

Deland, Florida 32724

in each case, with copies to such other address or to such other persons as any Party shall designate to the others for such purposes in the manner hereinabove set forth.

5.2Amendment

No modification, waiver, amendment, discharge or change of this Agreement shall be valid unless the same is in writing and signed by Parties. 

5.3Merger

This instrument, together with the instruments referred to herein, contains all of the understandings and agreements of the Parties with respect to the subject matter discussed herein.  All prior agreements whether written or oral are merged herein and shall be of no force or effect.

5.4Survival

The several representations, warranties and covenants of the Parties contained herein shall survive the execution hereof and shall be effective regardless of any investigation that may have been made or may be made by or on behalf of any Party.

 

5.5Severability

If any provision or any portion of any provision of this Agreement, other than a conditions precedent, if any, or the application of such provision or any portion thereof to any person or circumstance shall be held invalid or unenforceable, the remaining portions of such provision and the remaining provisions of this Agreement or the application of such provision or portion of such provision as is held invalid or unenforceable to persons or circumstances other than those to which it is held invalid or unenforceable, shall not be affected thereby.

5.6Governing Law and Venue

This Agreement shall be construed in accordance with the laws of the State of Florida and any proceeding arising between the Parties in any matter pertaining or related to this Agreement shall, to the extent permitted by law, be held in Volusia County, Florida.

5.7Litigation

In any action between the Parties to enforce any of the terms of this Agreement or any other matter arising from this Agreement, the prevailing Party shall be entitled to recover its costs and expenses, including reasonable attorneys' fees up to and including all negotiations, trials and appeals, whether or not litigation is initiated.

5.8Benefit of Agreement

The terms and provisions of this Agreement shall be binding upon and inure to the benefit of the Parties, jointly and severally, their successors, assigns, personal representatives, estate, heirs and legatees.

5.9Captions

The captions in this Agreement are for convenience and reference only and in no way define, describe, extend or limit the scope of this Agreement or the intent of any provisions hereof.  

5.10Number and Gender

All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural, as the identity of the Party or Parties, or their personal representatives, successors and assigns may require.

5.11Further Assurances

The Parties hereby agree to do, execute, acknowledge and deliver or cause to be done, executed, acknowledged or delivered and to perform all such acts and deliver all such deeds, assignments, transfers, conveyances, powers of attorney, assurances, stock certificates and other documents, as may, from time to time, be required herein to effect the intent and purpose of this Agreement.

5.12Status

Nothing in this Agreement shall be construed or shall constitute a partnership, joint venture, employer-employee relationship or lessor-lessee relationship but, rather, the relationship established pursuant hereto is that of principal and independent contractor-agent.

5.13Counterparts

This Agreement may be executed in any number of counterparts.  All executed counterparts shall constitute one Agreement notwithstanding that all signatories are not signatories to the original or the same counterpart.

IN WITNESS WHEREOF, the Parties have executed this Agreement, effective as of the _____ day of October, 2006.

Signed, Sealed & Delivered

         in Our PresenceTurbine Truck Engines, Inc.

_______________________   By:_____________________________

(Witness signature)Michael H. Rouse, CEO 

_______________________

(Print name)

 

 

____________________________________________________

(Witness signature)Lou Ruffolo, Consultant

_______________________

(Print name)AMENDMENT TO LOAN AND SECURITY AGREEMENT

SIXTH AMENDMENT TO

LOAN AND SECURITY AGREEMENT

This SIXTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (this "Amendment"), dated October 24, 2006, by and among LASALLE BUSINESS CREDIT, LLC, a Delaware limited liability company ("LaSalle"), with its principal office at 135 South LaSalle Street, Chicago, Illinois 60603, the financial institutions that, from time to time, become a party to the Loan Agreement (hereinafter defined) (such financial institutions, collectively, the "Lenders" and each individually, a "Lender"), LaSalle as agent for the Lenders (in such capacity, the "Agent"), and IMPCO TECHNOLOGIES, INC., a Delaware corporation, with its principal office at 3030 South Susan Street, Santa Ana, California 92704 (the "Borrower").

WHEREAS, the Borrower and LaSalle as a Lender and the Agent, are parties to a Loan and Security Agreement dated as of July 18, 2003 (as amended, restated, supplemented, or otherwise modified from time to time, the "Loan Agreement"), pursuant to which the Lenders have agreed, upon satisfaction of certain conditions, to make Revolving Advances and other financial accommodations to the Borrower;

WHEREAS, the Borrower has requested that the Lenders and the Agent agree to amend the capital expenditure covenant in the Loan Agreement in certain respects, and the Lenders and the Agent are willing to so amend the covenant but only on the terms and subject to the conditions hereinafter set forth;

NOW THEREFORE, the parties hereto agree as follows:

	Amendment to Loan Agreement.  Section 14(q) of the Loan Agreement is hereby amended and restated to read in its entirety as follows:

"(q)For any period of four (4) consecutive fiscal quarters of Borrower (measured as at the end of each fiscal quarter of Borrower with respect to the period of four (4) consecutive fiscal quarters ending on such date):  (i) the Consolidated Group may not make Capital Expenditures in an aggregate amount of more than $6,500,000; and (ii) the US Consolidated Group may not make Capital Expenditures in an aggregate amount of more than $4,500,000."

	Retroactive Effect of Amendment.Subject to Section 5 below, the amendment set forth in Sections 1 above is retroactive to September 30, 2006, and the Loan Agreement will be deemed amended as set forth in such Section as of such date.

	Acknowledgments and Confirmations.  The Borrower, the Lenders, and the Agent hereby acknowledge and confirm that as of the Effective Date:  (i) all references in the Loan Agreement to "this Agreement" will be deemed to refer to the Loan Agreement, as amended by this Amendment; and (ii) all references in each of the Other Agreements to the "Loan Agreement" will be deemed to refer to the Loan Agreement, as amended by this Amendment.

	Representations and Warranties.  The Borrower hereby represents and warrants to the Lenders and the Agent, that:

	Each of the representations and warranties set forth in Paragraph 13 of the Loan Agreement is true in all material respects as of the date hereof, except for changes in the ordinary course of business, that, either singly or in the aggregate, are not materially adverse to the business or financial condition of the Borrower or to the Collateral.

	As of the date hereof, after giving effect to the terms of this Agreement, there exists no Default or Event of Default.

	The Borrower has the power to execute, deliver, and perform this Amendment  and all agreements, instruments, and documents executed in connection herewith (this Amendment and such other agreements, instruments, are documents are sometimes hereinafter referred to collectively as the "Amendment Documents").  The Borrower has taken all necessary action to authorize the execution, delivery, and performance of this Amendment and the other Amendment Documents.  No consent or approval of any entity or Person (including without limitation, any shareholder of the Borrower), no consent or approval of any landlord or mortgagee, no waiver of any Lien or right of distraint or other similar right, and no consent, license, approval, authorization, or declaration of any governmental authority, bureau, or agency is required in connection with the execution, delivery, or performance by the Borrower, or the validity or enforcement, of this Amendment or the other Amendment Documents.

	The execution and delivery by the Borrower of this Amendment and the other Amendment Documents and performance by it hereunder and thereunder, will not violate any provision of law and will not conflict with or result in a breach of any order, writ, injunction, ordinance, resolution, decree, or other similar document or instrument of any court or governmental authority, bureau, or agency, domestic or foreign, or the certificate of incorporation or by-laws of the Borrower, or create (with or without the giving of notice or lapse of time, or both) a default under or breach of any agreement, bond, note, or indenture to which the Borrower is a party, or by which it is bound or any of its properties or assets is affected (including without limitation, the Subordinated Debt Documents), or result in the imposition of any Lien of any nature whatsoever upon any of the properties or assets owned by or used in connection with the business of the Borrower, other than the Liens contemplated by this Amendment.

	This Amendment and the other Amendment Documents have been duly executed and delivered by the Borrower and constitute the valid and legally binding obligation of the Borrower, enforceable in accordance with their respective terms.

	Conditions to Effectiveness of Amendment and Waiver.  This Amendment is effective upon the Borrower and the Agent executing this Amendment and delivering same to the Agent; the ("Effective Date"):

	Further Assurances.  The Borrower agrees that it will, from time to time, execute and/or deliver all agreements, instruments, and documents and do and perform all actions and things (all at the Borrower's sole expense) as the Agent may reasonably request to carry out the intent and terms of this Amendment.

	Miscellaneous.

	The Borrower's breach of any of its covenants contained in this Amendment will constitute an Event of Default.

	Nothing contained in this Agreement imposes an obligation on the Lenders or the Agent to further amend the Loan Agreement or waive compliance with any other provision.

	Except as set forth in this Amendment, none of the Lenders nor the Agent waive any breach of, or Default or Event of Default under, the Loan Agreement, nor any right or remedy the Lenders or the Agent may have under the Loan Agreements, the Other Agreements, or applicable law, all of which rights and remedies are expressly reserved.

	Except as specifically amended in this Amendment, the Loan Agreement and the Other Agreements remain in full force and effect in accordance with their respective terms.

	No modification or waiver of or with respect to any provision of this Amendment and all other agreements, instruments, and documents delivered pursuant hereto or referred to herein, nor consent to any departure by any party hereto or thereto from any of the terms or conditions hereof or thereof, will in any event be effective, unless it is in writing and signed by each party hereto, and then such waiver or consent will be effective only in the specific instance and for the purpose for which given.

	This Amendment, together with all of the other agreements, instruments, and documents referred to herein, embodies the entire agreement and understanding among the parties hereto with respect to the subject matter hereof and thereof and supersedes all prior agreements and understandings relating to the subject matter hereof.

	Without in any way limiting Paragraph 14(r) of the Loan Agreement, the Borrower shall pay all of the Lenders' and the Agent's fees, costs, and expenses incurred in connection with this Amendment and the transactions contemplated hereby, including without limitation, the Lenders' and the Agent's legal fees and expenses incurred in connection with the preparation, negotiation, consummation, and, if required, the enforcement, of this Amendment and the other Amendment Documents.

	This Amendment may be signed in any number of counterparts with the same effect as if the signatures thereto and hereto were upon the same instrument.

	EACH OF THE PARTIES TO THIS AMENDMENT HEREBY WAIVE ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING THAT PERTAINS DIRECTLY OR INDIRECTLY TO THIS AMENDMENT, ANY OF THE OTHER AGREEMENTS, THE LIABILITIES, THE COLLATERAL, ANY ALLEGED TORTIOUS CONDUCT OF THE BORROWER, THE AGENT, OR THE LENDERS OR THAT, IN ANY WAY, DIRECTLY OR INDIRECTLY, ARISES OUT OF OR RELATES TO THE RELATIONSHIP AMONG THE BORROWER, THE AGENT, AND/OR THE LENDERS.  IN NO EVENT WILL THE AGENT OR ANY LENDER BE LIABLE FOR LOST PROFITS OR OTHER SPECIAL OR CONSEQUENTIAL DAMAGES.

	This Amendment is governed by and must be construed in accordance with the applicable law pertaining in the State of New York, other than those conflict of law provisions that would defer to the substantive laws of another jurisdiction.

(k)The parties to this Amendment prefer that any dispute between or among them be resolved in litigation subject to a jury trial waiver as set forth above.  If a pre-dispute jury trial waiver of the type provided for above is unenforceable in litigation to resolve any dispute, claim, cause of action or controversy under this Amendment, the Loan Agreement or any of the Other Agreements (each, a "Claim") in the venue where the Claim is being brought pursuant to the terms of this Amendment, then, upon the written request of any party, such Claim, including any and all questions of law or fact relating thereto, shall be determined exclusively by a judicial reference proceeding.  Except as otherwise provided in this Section 7 above, venue for any such reference proceeding shall be in the state or federal court in the County or District where venue is appropriate under applicable law (the "Court").  The parties shall select a single neutral referee, who shall be a retired state or federal judge.  If the parties cannot agree upon a referee within 15 days, the Court shall appoint the referee.  The referee shall report a statement of decision to the Court.  Notwithstanding the foregoing, nothing in this paragraph shall limit the right of Agent or Lenders to exercise self-help remedies, foreclose against collateral or obtain provisional remedies (including without limitation, requests for temporary restraining orders, preliminary injunctions, writs of possession, writs of attachment, appointment of a receiver, or any orders that a court may issue to preserve the status quo, to prevent irreparable injury or to allow a party to enforce its liens and security interests).  The parties shall bear the fees and expenses of the referee equally unless the referee orders otherwise.  The referee also shall determine all issues relating to the applicability, interpretation, and enforceability of this Section 7(k).  The parties acknowledge that any Claim determined by reference pursuant to this Section 7(k) shall not be adjudicated by a jury.

[Remainder of Page Intentionally Left Blank]

 

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment as of the date first above set forth.
LASALLE BUSINESS CREDIT, LLC, 

as a Lender and as Agent

By:/s/ Darren  Hirata

Name: Darren Hirata

Title: Vice President

IMPCO TECHNOLOGIES, INC.,

as Borrower

By:/s/ Thomas M. Costales

Name: Thomas M. Costales

Title: CFO

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