Document:

Exhibit 10.19

 

CONTINUING
GUARANTY AGREEMENT

 

This
CONTINUING GUARANTY AGREEMENT (the “Guaranty”) is made as of this 25th day of
August, 2005 by IWT TESORO INTERNATIONAL LTD., a Bermuda corporation, IWT
TESORO TRANSPORT, INC., a Florida corporation, THE TILE CLUB, INC., a Delaware
corporation, and IMPORT FLOORING GROUP, INC., a Delaware corporation
(collectively, “Guarantor”) in favor and for the benefit of LAURUS MASTER FUND,
LTD. (“Lender”).

 

W I T N E S S
E T H:

 

WHEREAS,
Lender has agreed to make loans and advances (collectively, the “Loan”) and
otherwise extend credit to IWT Tesoro Corporation, a Nevada corporation and
International Wholesale Tile, Inc., a Florida corporation (collectively,
the “Borrower”) pursuant to the terms of a Security Agreement dated as of August 25,
2005 (as amended, modified, supplemented and restated from time to time, the “Security
Agreement”) among Borrower and Lender and each Ancillary Agreement referred to
in the Security Agreement (the Security Agreement and each Ancillary Agreement
as amended, modified, supplemented and restated from time to time,
collectively, the “Loan Documents”);

 

WHEREAS,
Guarantor is an affiliate and/or subsidiary of Borrower and, as such, has and
will derive substantial benefits from the making of such loans, advances and
extensions of credit to Borrower by Lender; and

 

WHEREAS, in
consideration of such benefits, Guarantor has agreed to guarantee the payment
and performance of Borrower’s obligations to Lender;

 

NOW,
THEREFORE, Guarantor agrees as follows:

 

1.                                       Guaranty
of Payment and Performance.  
Guarantor hereby absolutely, unconditionally and irrevocably guarantees
to Lender the full and punctual payment and performance of any and all loans,
advances, indebtedness, liabilities, obligations, covenants or duties of
Borrower to Lender of any kind or nature, whether arising under a loan, lease,
credit card, line of credit, letter of credit, guaranty, indemnity,
confirmation, currency exchange, interest rate protection arrangement,
overdraft, or other type of financing arrangement, and any and all extensions
and renewals thereof, and modifications and amendments thereto, whether in
whole or in part, whether created directly by Lender or acquired by assignment,
purchase, discount or otherwise, whether any of the foregoing are direct or
indirect, joint or several, absolute or contingent, due or to become due, now
existing or hereafter arising, whether under any present or future document,
agreement or other instrument, and whether or not evidenced by a writing and
specifically including, unpaid principal, plus all accrued and unpaid interest
thereon, together with all fees, expenses, commissions, charges, penalties and
other amounts owing by or chargeable to Borrower under the Loan Documents and
all obligations or indebtedness of Borrower for post-petition interest, fees,
costs and charges that would have accrued thereon but for the commencement by
or against Borrower of a case under Title 11, United States Code (collectively,
the “Obligations”), as and when the same shall become due and payable, whether
at maturity, by acceleration or otherwise.

 

 

2.                                       Maximum
Guaranteed Amount.  Notwithstanding
any other provision of this Guaranty to the contrary, if the obligations of
Guarantor hereunder would otherwise be held or determined by a court of
competent jurisdiction in any action or proceeding involving any state
corporate law or any state or Federal bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance or other law affecting the rights or creditors
generally, to be void, invalid or unenforceable to any extent on account of the
amount of Guarantor’s liability under this Guaranty, then notwithstanding any
other provision of this Guaranty to the contrary, the amount of liability
shall, without any further action by Guarantor or any other person, be
automatically limited and reduced to the highest amount which is valid and
enforceable as determined in action or proceeding.

 

3.                                       Continuing
Nature.  This Guaranty is a primary
and original obligation of Guarantor and is an absolute, unconditional,
continuing and irrevocable guaranty of payment and performance and not of
collectibility and is in no way conditioned or contingent upon any action or
omission by Lender, including any requirement that Lender first attempt to
collect any of the Obligations from Borrower or resort to any security
therefor, or upon any other action, occurrence, or circumstance whatsoever
other than the failure of Borrower to promptly and completely make any payment
due to Lender in respect to the Obligations as and when the same become due and
payable, whether at maturity, by acceleration or otherwise.  This Guaranty is in addition to, and not in
substitution for or in reduction of, any other guaranty by Guarantor or any
other guarantor in favor of Lender.  This
Guaranty shall be continuing and shall not be discharged, impaired or affected
by (i) the power or authority or lack thereof of Borrower to incur or
contract for the Obligations or to execute, acknowledge or deliver any document,
agreement or other instrument evidencing, securing or otherwise executed in
connection with the Obligations; (ii) the regularity or irregularity,
validity or invalidity, or enforceability or unenforceability of the
Obligations; (iii) any defenses or counterclaims whatsoever that Borrower
may or might have to the payment or performance of the Obligations or to the
assertion of a default under any document, agreement or other instrument
evidencing, securing or otherwise executed in connection with the Obligations
including, but not limited to, lack of consideration, statute of frauds,
infancy, breach of warranty, lender liability, usury, fraud and statute of
limitations; (iv) the existence or non existence of Borrower as a legal
entity; (v) the transfer by Borrower of all or any part of the property
securing the Obligations; (vi) any right of setoff, counterclaim or
defense (other than the payment and performance of the Obligations in full)
that Guarantor may or might have to its respective undertakings, liabilities
and obligations under this Guaranty, each and every such defense being hereby
waived by Guarantor; or (vii) the inability of Lender to claim any amount
of interest, fees, costs, or charges from Borrower pursuant to Section 506(b) of
the United States Bankruptcy Code, as amended.

 

4.                                       Guarantor’s
Agreement To Pay.  Guarantor further
agrees, as the principal obligor and not as a guarantor or surety only, to pay
to Lender, on demand, all costs and expenses (including court costs and legal
expenses) incurred or expended by Lender in connection with the Obligations,
this Guaranty and the enforcement thereof, together with interest on amounts
recoverable under this Guaranty from the time such amounts become due until
payment, at the rate per annum equal to the rate of interest then due under the
Loan Agreement; provided, however, that if such interest exceeds the maximum
amount permitted to be paid under applicable law, then such interest shall be
reduced to such maximum permitted amount.

 

2

 

5.                                       Unlimited
Guaranty.  The liability of the
Guarantor hereunder shall be unlimited.

 

6.                                       Waivers
by Guarantor; Lender’s Freedom to Act. 
Guarantor agrees that the Obligations will be paid and performed
strictly in accordance with their representative terms regardless of any law,
regulation or order now or hereafter in effect in any jurisdiction affecting
any of such terms or the rights of Lender with respect thereto.  Guarantor waives presentment, demand,
protest, notice of acceptance, notice of obligations incurred and all other
notices of any kind, all defenses which may be available by virtue of any
valuation, stay, moratorium or other similar law now or hereafter in effect,
any right to require the marshalling of assets of Borrower, and all suretyship
defenses generally.  Without limiting the
generality of the foregoing, Guarantor agrees to the provisions of any
document, agreement or other instrument evidencing, securing or otherwise
executed in connection with any Obligations and agrees that the obligations of
Guarantor hereunder shall not be released or discharged, in whole or in part,
or otherwise affected by: (i) the failure of Lender to assert any claim or
demand or to enforce any right or remedy against Borrower; (ii) any
extensions or renewals of any Obligations; (iii) any rescissions, waivers,
amendments or modifications of any of the terms or provisions of any document,
agreement or other instrument evidencing, securing or otherwise executed in
connection with the Obligations; (iv) the substitution or release of any
person or entity primarily or secondarily liable for the Obligations; (v) the
adequacy of any rights or remedies Lender may have against any collateral or
other means of obtaining repayment of the Obligations; (vi) the impairment
of any collateral securing the Obligations, including without limitation the
failure to perfect or preserve any rights or remedies Lender might have in such
collateral or the substitution, exchange, surrender, release, loss or
destruction of any such collateral; or (vii) any other act or omission
which might in any manner or to any extent vary the risk of Guarantor or
otherwise operate as a release or discharge of Guarantor, all of which may be
done without notice to Guarantor.

 

7.                                       Proceedings
on Default.  Upon the failure of
Borrower to promptly and completely make any required payment and performance
of the Obligations, Lender may, at its option: (a) proceed directly and at
once without notice of such default, against Guarantor to collect and recover
the full amount of the liability hereunder, or any portion thereof, without
proceeding against Borrower or any other person, or endorser, surety or
guarantor, or foreclosing upon, selling, or otherwise disposing of, or enforcing,
or collecting or applying any property, real or personal, Lender may then have
as security for the Obligations, and without enforcing or proceeding under any
other guaranty; (b) sell the real and personal property Lender may then
have as security for the Obligations under the power of sale contained in any
mortgage deed, security agreement or similar instrument pursuant to which such
property is held or to which such property is subject or sell such property
through judicial foreclosure, as Lender may elect, notice of any such election
being expressly waived by Guarantor, and proceed against Guarantor for an
amount equal to the difference between the net proceeds of such sale to Lender
and the amount of the Obligations then due and owing.  Nothing herein shall prohibit Lender from
exercising its rights against Guarantor, any other guarantor, endorser, or
surety, the security, if any, for the Obligations, and Borrower simultaneously,
jointly and/or severally.

 

8.                                       Representations.  Guarantor represents and warrants to Lender
that this Guaranty does not violate the provisions of any document, agreement
or other instrument by which Guarantor is bound; no consent or authorization is
required as a condition to the execution of this 

 

3

 

Guaranty; Guarantor is fully aware of the financial condition of
Borrower; Guarantor delivers this Guaranty based solely upon Guarantor’s own
independent investigation and understanding of the transaction of which this
Guaranty is a part and in no part upon any representation or statement of
Lender with respect thereto; Guarantor is in a position to and hereby assumes
full responsibility for obtaining any additional information concerning
Borrower’s financial condition or business operations as Guarantor may deem
material to his obligations hereunder and Guarantor is not relying upon, nor
expecting Lender to furnish Guarantor with, any information in Lender’s
possession concerning Borrower’s financial condition or business
operations.  Guarantor acknowledges and
agrees that he hereby knowingly accepts the full range of risk encompassed
within a contract of “continuing guaranty”, which risk includes, without
limitation, the possibility that Borrower will incur or contract for additional
indebtedness for which Guarantor will be liable hereunder.

 

9.                                       Independent
Obligation.  The obligations of
Guarantor hereunder shall be absolute and unconditional and are independent of
the obligations of Borrower or of any other person, endorser, surety or
guarantor.

 

10.                                 Changes
in Financial Condition.  In the event
that a material adverse change in Guarantor’s financial condition should occur,
the Obligations shall, at Lender’s election, be deemed for the purposes of this
Guaranty to have become matured and, at Lender’s election, Guarantor shall
promptly pay to Lender the entire amount of the Obligations, and Lender may
take any action deemed necessary or advisable to enforce this Guaranty.

 

11.                                 Bankruptcy.  All of the Obligations shall, at the option
of Lender, forthwith become due and payable if there shall be filed against
Borrower or Guarantor a petition in bankruptcy or for insolvency proceedings or
for reorganization, dissolution or liquidation, or for appointment of a
receiver or trustee, or if Borrower or Guarantor makes an assignment for the
benefit of creditors.  This Guaranty
shall remain in full force and effect, without abatement, until the Obligations
have been paid or performed in full and all other obligations guaranteed
hereunder have been performed to the satisfaction of Lender, it being expressly
understood and agreed to by Guarantor that this Guaranty shall continue to be
effective or shall be reinstated, as the case may be, if at any time payment,
in whole or in part, of any of the Obligations is rescinded, invalidated,
declared to be fraudulent or preferential, set aside or must otherwise be
restored or returned by Lender upon the insolvency, bankruptcy, dissolution,
liquidation or reorganization of Borrower all as though such payment had not
been made, to Borrower or a trustee, receiver or any other party.  Guarantor understands and agrees that in the
event Lender is required to so return all or any portion of a payment received
from Borrower, Guarantor shall be required to pay Lender for such amount.

 

12.                                 Unenforceability
of Obligations Against Borrower.  If
for any reason Borrower has no legal existence or is under no legal obligation
to discharge any of the Obligations, or if any of the Obligations have become
irrecoverable from Borrower by operation of law or for any other reason, this
Guaranty shall nevertheless be binding on Guarantor to the same extent as if
Guarantor at all times had been the principal obligor on all such
Obligations.  In the event that
acceleration of the time for payment of the Obligations is stayed upon the
insolvency, bankruptcy or reorganization of Borrower or for any other reason,
all such amounts otherwise subject to acceleration under the terms of any
document, agreement or other instrument 

 

4

 

evidencing, securing or otherwise executed in connection with any of
the Obligations shall be immediately due and payable by Guarantor.

 

13.                                 Waiver
of Subrogation/Subordination. 
Guarantor hereby waives to the fullest extent possible against any of
the primary obligors and their assets (i) any right of subrogation,
indemnity, reimbursement, right to enforce any remedy which Lender now has or
may hereafter have against Borrower, any endorser or any guarantor of all or
any part of any benefit of, and any right to participate in, any security or
collateral given to Lender to secure the payment or performance of all or any
part of the Obligations or any other liability of to Lender until all amounts
owing to Lender by Borrower on account of the Obligations are indefeasibly paid
in full and Lender’s obligation to extend credit pursuant to the Loan Documents
has been irrevocably terminated. 
Guarantor and Lender intend the preceding waivers to be for the benefit
of Borrower and their permitted successors and assigns as an absolute defense
against Borrower or their assets that arises out of Guarantor having made any
payment to Lender with respect to the Obligations.  The Guarantor agrees that any and all claims
of Guarantor against Borrower, any endorser or any other guarantor of all or
any part of the Obligations, or against any of their respective properties,
shall be subordinate and subject in right of payment to the prior payment, in
full, of the Obligations.  Guarantor, in
its capacity as a guarantor, also waives all setoffs and counterclaims and all
presentments, demands for performance, notices of nonperformance, protests,
notices of protest, notices of dishonor, and notices of acceptance of this
Guaranty.  Guarantor, in its capacity as
a guarantor, further waives all notices of the existence, creation or incurring
of new or additional indebtedness, arising either from additional loans
extended to Borrower or otherwise, and also waives all notices that the
principal amount, or any portion thereof, and/or any interest or documents
evidencing all or any part of the Obligations is due and notice of any and all
proceedings to collect from the maker, any endorser or any other guarantor of
all or any part of the Obligations, or from any other Person.  If, notwithstanding the foregoing, Guarantor
shall collect, enforce or receive any amounts in respect of such indebtedness,
such amount shall be collected, enforced and received by Guarantor as trustee
for Lender and be paid over to Lender on account of the Obligations without
affecting in any manner the liability of Guarantor under the other provisions
of this Guaranty.

 

14.                                 Payments.  Guarantor covenants and agrees that the
Obligations will be paid strictly in accordance with their respective terms
regardless of any law, regulation or order now or hereinafter in effect in any
jurisdiction affecting any of such terms of the rights of the Lender with
respect thereto.  Without limiting the
generality of the foregoing, Guarantor’s obligations hereunder with respect to
any Obligation shall not be discharged by a payment in a currency other than
dollars of the United States of America or at a place other than the place
specified for the payment of the Obligations, whether pursuant to a judgment or
otherwise, to the extent that the amount so paid on conversion to dollars of
the United States of America and transferred to the Lender under normal banking
procedures does not yield the amount of dollars of the United States of America
due thereunder.

 

15.                                 Taxes.  All payments hereunder shall be made without
any counterclaim of setoff, free and clear of, and without reduction by reason
of, any taxes, levies, imposts, charges and withholdings, restrictions or
conditions of any nature (“Taxes”), which are now or may hereafter been
imposed, levied or assessed by any country, political subdivision or taxing
authority, all of which will be for the account of and paid by Guarantor
hereunder.  If for any reason, any such 

 

5

 

reduction is made or any Taxes are paid by the Lender, Guarantor will
pay to the Agent on behalf of the Lender the additional amounts as may be
necessary to ensure that it receives the same net amount which it would have
received had no reduction been made of Taxes paid.

 

16.                                 Further
Assurances.  Guarantor agrees that it
will provide to Lender information relating to the financial condition and
business operations of Guarantor as Lender may reasonably request.

 

17.                                 Successors
and Assigns.  This Guaranty shall be
binding upon Guarantor and its heirs, executors, personal representatives,
successors and assigns, and shall inure to the benefit of and be enforceable by
Lender and its successors, transferees and assigns.  Without limiting the generality of the
foregoing sentence, Lender may assign or otherwise transfer any document,
agreement or other instrument held by it evidencing, securing or otherwise
executed in connection with the Obligations, or sell participations in any
interest therein to any other Person or entity, and such other person or entity
shall thereupon become vested, to the extent set forth in the agreement
evidencing such assignment, transfer or participation, with all rights in
respect thereof granted to Lender herein.

 

18.                                 Amendments
and Waivers.  No amendment or waiver
of any provision of this Guaranty nor consent to any departure by Guarantor
therefrom shall be effective unless the same shall be in writing and signed by
Lender.  No failure on the part of Lender
to exercise, and no delay in exercising, any right or remedy hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any
right hereunder preclude any other or further exercise of any other right.

 

19.                                 Notices.   All notices, requests, demands, and other
communications called for hereunder shall be made in writing and, unless
otherwise specifically provided herein, shall be deemed to have been duly made
or given when delivered by hand or mailed first class mail postage prepaid or,
in the case of telecopy or facsimile notice, when transmitted, answer back
received, addressed as follows, or at such address as either party may
designate in writing.

 

	
  If to Laurus:

  	
   

  	
  Laurus Master Fund,
  Ltd.

  	
   

  
	
   

  	
   

  	
  c/o Laurus Capital
  Management, LLC

  	
   

  
	
   

  	
   

  	
  825 Third Avenue, 14th
  Fl.

  	
   

  
	
   

  	
   

  	
  New York, New York
  10022

  
	
   

  	
   

  	
  Attention:

  	
  John E.
  Tucker, Esq.

  
	
   

  	
   

  	
  Telephone:

  	
  (212) 541-4434

  
	
   

  	
   

  	
  Telecopier:

  	
  (212) 541-5800

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Loeb & Loeb
  LLP

  	
   

  
	
   

  	
   

  	
  345 Park Avenue

  	
   

  
	
   

  	
   

  	
  New York, New York
  10154

  
	
   

  	
   

  	
  Attention:

  	
  Scott J.
  Giordano, Esq.

  
	
   

  	
   

  	
  Telephone:

  	
  (212) 407-4000

  
	
   

  	
   

  	
  Facsimile:

  	
  (212) 407-4990

  
					

 

6

 

	
   

  	
   

  	
   

  
	
  If to Guarantor:

  	
   

  	
  IWT Tesoro Corporation

  	
   

  
	
   

  	
   

  	
  191 Post Road West

  	
   

  
	
   

  	
   

  	
  Westport, Connecticut
  06880

  
	
   

  	
   

  	
  Attention:

  	
  Henry J.
  Boucher, Jr., CEO

  
	
   

  	
   

  	
  Telephone:

  	
  (203) 221-2770

  
	
   

  	
   

  	
  Facsimile:

  	
  (203) 221-2797

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Rader and Coleman, P.L.

  	
   

  
	
   

  	
   

  	
  2101 N.W. Boca Raton
  Blvd., Suite 1

  	
   

  
	
   

  	
   

  	
  Boca Raton, Florida
  33431

  
	
   

  	
   

  	
  Attention:

  	
  Gayle
  Coleman, Esq.

  
	
   

  	
   

  	
  Telephone:

  	
  (561) 368-0545

  
	
   

  	
   

  	
  Facsimile:

  	
  (561) 367-1725

  
					

 

20.                                 Joint
and Several Obligations.  If this
Guaranty is now, or hereafter shall be, signed by more than one Person, it
shall be the joint and several obligation of all such persons (including,
without limitation, all makers, endorsers, guarantors and sureties, if any) and
shall be binding on all such persons and their respective heirs, executors,
administrators, legal representatives, successors and assigns.

 

21.                                 Governing
Law; Consent to Jurisdiction.  THIS
GUARANTY SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN
SUCH STATE, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS.  GUARANTOR HEREBY CONSENTS AND AGREES THAT THE
STATE OR FEDERAL COURTS LOCATED IN THE COUNTY OF NEW YORK, STATE OF NEW YORK
SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES
BETWEEN ANY GUARANTOR, ON THE ONE HAND, AND LENDER, ON THE OTHER HAND,
PERTAINING TO THIS GUARANTY OR ANY OF THE LOAN DOCUMENTS OR TO ANY MATTER
ARISING OUT OF OR RELATED TO THIS GUARANTY OR ANY OF THE LOAN DOCUMENTS; PROVIDED,
THAT GUARANTOR ACKNOWLEDGES THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO
BE HEARD BY A COURT LOCATED OUTSIDE OF THE COUNTY OF NEW YORK, STATE OF NEW
YORK; AND FURTHER  PROVIDED, THAT NOTHING IN THIS GUARANTY SHALL
BE DEEMED OR OPERATE TO PRECLUDE LENDER FROM BRINGING SUIT OR TAKING OTHER
LEGAL ACTION IN ANY OTHER JURISDICTION TO COLLECT THE OBLIGATIONS, TO REALIZE
ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE OBLIGATIONS, OR TO ENFORCE A
JUDGMENT OR OTHER COURT ORDER IN FAVOR OF LENDER.  GUARANTOR EXPRESSLY SUBMITS AND CONSENTS IN
ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT,
AND GUARANTOR HEREBY WAIVES ANY OBJECTION WHICH IT MAY HAVE BASED UPON
LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS.  GUARANTOR HEREBY WAIVES PERSONAL SERVICE OF
THE SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND
AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINT AND OTHER PROCESS MAY BE
MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO GUARANTOR IN ACCORDANCE WITH SECTION 19
AND 

 

7

 

THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF
GUARANTOR’S ACTUAL RECEIPT THEREOF OR THREE (3) DAYS AFTER DEPOSIT IN THE
U.S. MAILS, PROPER POSTAGE PREPAID.

 

22.                                 Termination.  This Guaranty shall remain in full force and
effect, without abatement, until the Obligations have been paid or performed in
full and all other obligations guaranteed hereunder have been performed to the
satisfaction of Lender.

 

23.                                 Amendments
and Modifications.  The provisions of
this Guaranty shall extend and be applicable to all renewals, amendments,
extensions and modifications of the Obligations and the documents, agreements
and other instruments evidencing, securing or otherwise executed in connection
with the Obligations, and all references to the Obligations and such documents,
agreements or instruments shall be deemed to include any renewal, extension,
amendment or modification thereof.

 

24.                                 Waiver
of Jury Trial.  GUARANTOR HEREBY
WAIVES TRIAL BY JURY IN ANY COURT IN ANY SUIT, ACTION OR PROCEEDING OR ANY
MATTER ARISING IN CONNECTION WITH OR IN ANY WAY RELATED TO THE TRANSACTION OF
WHICH THIS GUARANTY IS A PART AND/OR THE ENFORCEMENT OF ANY OF ITS RIGHTS
AND REMEDIES.  GUARANTOR ACKNOWLEDGES
THAT IT MAKES THIS WAIVER KNOWINGLY, VOLUNTARILY AND ONLY AFTER CONSIDERATION
OF THE RAMIFICATIONS OF THIS WAIVER WITH ITS ATTORNEY.

 

25.                                 Miscellaneous.  This Guaranty constitutes the entire
agreement of Guarantor with respect to the matters set forth herein.  The rights and remedies herein provided are
cumulative and not exclusive of any remedies provided by law or any other
document, agreement or other instrument and this Guaranty shall be in addition
to any other guaranty of the Obligations. 
The invalidity or unenforceability of any one or more sections of this
Guaranty shall not affect the validity or enforceability of its remaining
provisions.  All section headings in
this Guaranty are included for convenience of reference only and shall not
constitute a part of this Guaranty for any other purpose. The meanings of all
defined terms used in this Guaranty shall be equally applicable to the singular
and plural forms of the terms defined.

 

[Signature Pages Follow]

 

8

 

IN WITNESS
WHEREOF, Guarantor has executed this Guaranty as of the date first set forth
above.

 

	
   

  	
  THE TILE CLUB, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  IWT TESORO INTERNATIONAL LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  IWT TESORO TRANSPORT, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  IMPORT FLOORING GROUP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

9

 

	
  STATE OF NEW
  YORK

  	
  )

  
	
   

  	
  ) ss.

  
	
  COUNTY OF
  NEW YORK

  	
  )

  

 

On this       day of August, 2005, before me
the undersigned officer, personally appeared                     ,
who acknowledged himself to be the                               
of The Tile Club, Inc., a Delaware corporation, and that he/she, as such                               ,
being authorized so to do, executed the foregoing instrument for the purposes
therein contained as his/her free act and deed and the free act and deed of
said corporation.

 

	
   

  	
  In Witness Whereof I hereunto set my hand.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Notary Public

  
	
   

  	
  My commission expires:

  

 

 

	
  STATE OF NEW
  YORK

  	
  )

  
	
   

  	
  ) ss.

  
	
  COUNTY OF
  NEW YORK

  	
  )

  

 

On this      
day of August, 2005, before me the undersigned officer, personally appeared                     ,
who acknowledged himself to be the                          
of IWT Tesoro International Ltd., a Bermuda corporation, and that he/she, as
such                             ,
being authorized so to do, executed the foregoing instrument for the purposes
therein contained as his/her free act and deed and the free act and deed of
said corporation.

 

	
   

  	
  In Witness Whereof I hereunto set my hand.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Notary Public

  
	
   

  	
  My commission expires:

  

 

10

 

	
  STATE OF NEW
  YORK

  	
  )

  
	
   

  	
  ) ss.

  
	
  COUNTY OF
  NEW YORK

  	
  )

  

 

On this       day of August, 2005, before me
the undersigned officer, personally appeared                          ,
who acknowledged himself to be the                             
of IWT Tesoro Transport, Inc, a Florida corporation, and that he/she, as such                                   ,
being authorized so to do, executed the foregoing instrument for the purposes
therein contained as his/her free act and deed and the free act and deed of said
corporation.

 

	
   

  	
  In Witness Whereof I hereunto set my hand.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Notary Public

  
	
   

  	
  My commission expires:

  

 

 

	
  STATE OF NEW
  YORK

  	
  )

  
	
   

  	
  ) ss.

  
	
  COUNTY OF
  NEW YORK

  	
  )

  

 

On this      
day of August, 2005, before me the undersigned officer, personally appeared                          ,
who acknowledged himself to be the                             
of Import Flooring Group, Inc., a Delaware corporation, and that he/she,
as such                             ,
being authorized so to do, executed the foregoing instrument for the purposes
therein contained as his/her free act and deed and the free act and deed of
said corporation.

 

	
   

  	
  In Witness Whereof I hereunto set my hand.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Notary Public

  
	
   

  	
  My commission expires:

  

 

11Exhibit 10.20

 

THIS WARRANT AND THE SHARES OF COMMON STOCK
ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS.  THIS WARRANT AND THE COMMON STOCK ISSUABLE
UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED
OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO
THIS WARRANT UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN
OPINION OF COUNSEL REASONABLY SATISFACTORY TO IWT TESORO CORPORATION THAT SUCH
REGISTRATION IS NOT REQUIRED.

 

Right to Purchase up to 511,883 Shares of Common Stock
of

IWT Tesoro Corporation

(subject to adjustment as provided herein)

 

COMMON STOCK
PURCHASE WARRANT

 

	
  No. 

  	
   

  	
  Issue Date:  August 25,
  2005

  

 

IWT TESORO CORPORATION, a
corporation organized under the laws of the State of Nevada (the “Company”),
hereby certifies that, for value received, LAURUS MASTER FUND, LTD., or assigns
(the “Holder”), is entitled, subject to the terms set forth below, to purchase
from the Company (as defined herein) from and after the Issue Date of this
Warrant and at any time or from time to time before 5:00 p.m., New York
time, through the close of business on August 25, 2010 (the “Expiration
Date”), up to 511,883 fully paid and nonassessable shares of Common Stock (as
hereinafter defined), $0.001 par value per share, at the applicable Exercise
Price per share (as defined below).  The
number and character of such shares of Common Stock and the applicable Exercise
Price per share are subject to adjustment as provided herein.

 

As used herein the
following terms, unless the context otherwise requires, have the following
respective meanings:

 

(a)                                  The
term “Common Stock” includes (i) the Company’s Common Stock, par value
$0.001 per share; and (ii) any other securities into which or for which
any of the securities described in the preceding clause (i) may be
converted or exchanged pursuant to a plan of recapitalization, reorganization,
merger, sale of assets or otherwise.

 

(b)                                 The
term “Company” shall include IWT Tesoro Corporation and any person or entity
which shall succeed, or assume the obligations of, IWT Tesoro Corporation
hereunder.

 

(c)                                  The
term “Exercise Price” means a price of $3.15 per share of Common Stock.

 

(d)                                 The
term “Other Securities” refers to any stock (other than Common Stock) and other
securities of the Company or any other person (corporate or otherwise) 

 

 

which
the holder of the Warrant at any time shall be entitled to receive, or shall
have received, on the exercise of the Warrant, in lieu of or in addition to
Common Stock, or which at any time shall be issuable or shall have been issued
in exchange for or in replacement of Common Stock or Other Securities pursuant
to Section 4 or otherwise.

 

1.                                       Exercise
of Warrant.

 

1.1.                              Number of Shares
Issuable upon Exercise.  From and
after the date hereof through and including the Expiration Date, the Holder
shall be entitled to receive, upon exercise of this Warrant in whole or in
part, by delivery of an original or fax copy of an exercise notice in the form
attached hereto as Exhibit A (the “Exercise Notice”), shares of Common
Stock of the Company, subject to adjustment pursuant to Section 4.

 

1.2.                              Fair Market Value.  For purposes hereof, the “Fair Market Value”
of a share of Common Stock as of a particular date (the “Determination Date”)
shall mean:

 

(a)                                  If
the Company’s Common Stock is traded on the American Stock Exchange or another
national exchange or is quoted on the National or SmallCap Market of The Nasdaq
Stock Market, Inc.(“Nasdaq”), then the closing or last sale price,
respectively, reported for the last business day immediately preceding the
Determination Date.

 

(b)                                 If
the Company’s Common Stock is not traded on the American Stock Exchange or
another national exchange or on the Nasdaq but is traded on the NASD Over the
Counter Bulletin Board, then the mean of the average of the closing bid and
asked prices reported for the last business day immediately preceding the
Determination Date.

 

(c)                                  Except
as provided in clause (d) below, if the Company’s Common Stock is not
publicly traded, then as the Holder and the Company agree or in the absence of
agreement by arbitration in accordance with the rules then in effect of
the American Arbitration Association, before a single arbitrator to be chosen
from a panel of persons qualified by education and training to pass on the
matter to be decided.

 

(d)                                 If
the Determination Date is the date of a liquidation, dissolution or winding up,
or any event deemed to be a liquidation, dissolution or winding up pursuant to
the Company’s charter, then all amounts to be payable per share to holders of
the Common Stock pursuant to the charter in the event of such liquidation,
dissolution or winding up, plus all other amounts to be payable per share in
respect of the Common Stock in liquidation under the charter, assuming for the
purposes of this clause (d) that all of the shares of Common Stock then
issuable upon exercise of the Warrant are outstanding at the Determination
Date.

 

1.3.                              Company Acknowledgment.  The Company will, at the time of the exercise
of this Warrant, upon the request of the Holder hereof acknowledge in writing
its continuing obligation to afford to such Holder any rights to which such Holder
shall continue to be entitled after such exercise in accordance with the provisions
of this Warrant.  If the Holder shall
fail to make any such request, such failure shall not affect the continuing
obligation of the Company to afford to such Holder any such rights.

 

2

 

1.4.                              Trustee for Warrant
Holders.  In the event that a bank or
trust company shall have been appointed as trustee for the Holder of this
Warrant pursuant to Subsection 3.2, such bank or trust company shall have
all the powers and duties of a warrant agent (as hereinafter described) and
shall accept, in its own name for the account of the Company or such successor
person as may be entitled thereto, all amounts otherwise payable to the Company
or such successor, as the case may be, on exercise of this Warrant pursuant to
this Section 1.

 

2.                                       Procedure
for Exercise.

 

2.1.                              Delivery of Stock
Certificates, Etc., on Exercise.  The
Company agrees that the shares of Common Stock purchased upon exercise of this
Warrant shall be deemed to be issued to the Holder as the record owner of such
shares as of the close of business on the date on which this Warrant shall have
been surrendered and payment shall have been made for such shares in accordance
herewith so long as such surrender and payment has been made no later than
12:00 noon (New York time) on such business day and if received after 12:01
noon (New York time) on a business day the shares of Common Stock shall be
deemed issued on the next business day. 
As soon as practicable after the exercise of this Warrant in full or in
part, and in any event within three (3) business days thereafter, the
Company at its expense (including the payment by it of any applicable issue
taxes) will cause to be issued in the name of and delivered to the Holder, or
as such Holder (upon payment by such Holder of any applicable transfer taxes)
may direct in compliance with applicable securities laws, a certificate or
certificates for the number of duly and validly issued, fully paid and
nonassessable shares of Common Stock (or Other Securities) to which such Holder
shall be entitled on such exercise, plus, in lieu of any fractional share to
which such Holder would otherwise be entitled, cash equal to such fraction
multiplied by the then Fair Market Value of one full share, together with any
other stock or other securities and property (including cash, where applicable)
to which such Holder is entitled upon such exercise pursuant to Section 1
or otherwise.

 

2.2.                              Exercise.  Payment shall be made either in cash or by
certified or official bank check payable to the order of the Company equal to
the applicable aggregate Exercise Price for the number of Common Shares
specified in such Exercise Notice (as such exercise number shall be adjusted to
reflect any adjustment in the total number of shares of Common Stock issuable
to the Holder per the terms of this Warrant) and the Holder shall thereupon be
entitled to receive the number of duly authorized, validly issued, fully-paid
and non-assessable shares of Common Stock (or Other Securities) determined as
provided herein.

 

3.                                       Effect
of Reorganization, Etc.; Adjustment of Exercise Price.

 

3.1.                              Reorganization,
Consolidation, Merger, Etc.  In case
at any time or from time to time the Company shall (a) effect a
reorganization, (b) consolidate with or merge into any other person, or (c) transfer
all or substantially all of its properties or assets to any other person under
any plan or arrangement contemplating the dissolution of the Company, then, in
each such case, as a condition to the consummation of such a transaction,
proper and adequate provision shall be made by the Company whereby the Holder,
on the exercise hereof as provided in Section 1 at any time after the
consummation of such reorganization, consolidation or merger or the effective
date of such dissolution, as the case may be, shall receive, in lieu of the
Common Stock (or Other Securities) issuable on such exercise prior to such
consummation or such 

 

3

 

effective date, the stock
and other securities and property (including cash) to which such Holder would
have been entitled upon such consummation or in connection with such
dissolution, as the case may be, if such Holder had so exercised this Warrant,
immediately prior thereto, all subject to further adjustment thereafter as
provided in Section 4.

 

3.2.                              Dissolution.  In the event of any dissolution of the
Company following the transfer of all or substantially all of its properties or
assets, the Company, concurrently with any distributions made to holders of its
Common Stock, shall at its expense deliver or cause to be delivered to the
Holder the stock and other securities and property (including cash, where applicable)
receivable by the Holder pursuant to Section 3.1, or, if the Holder shall
so instruct the Company, to a bank or trust company specified by the Holder and
having its principal office in New York, NY as trustee for the Holder (the “Trustee”).

 

3.3.                              Continuation of Terms.  Upon any reorganization, consolidation,
merger or transfer (and any dissolution following any transfer) referred to in
this Section 3, this Warrant shall continue in full force and effect and
the terms hereof shall be applicable to the shares of stock and other
securities and property receivable on the exercise of this Warrant after the
consummation of such reorganization, consolidation or merger or the effective
date of dissolution following any such transfer, as the case may be, and shall
be binding upon the issuer of any such stock or other securities, including, in
the case of any such transfer, the person acquiring all or substantially all of
the properties or assets of the Company, whether or not such person shall have
expressly assumed the terms of this Warrant as provided in Section 4.  In the event this Warrant does not continue
in full force and effect after the consummation of the transactions described
in this Section 3, then the Company’s securities and property (including
cash, where applicable) receivable by the Holder will be delivered to the
Holder or the Trustee as contemplated by Section 3.2.

 

4.                                       Extraordinary
Events Regarding Common Stock.  In
the event that the Company shall (a) issue additional shares of the Common
Stock as a dividend or other distribution on outstanding Common Stock or any
preferred stock issued by the Company, (b) subdivide its outstanding
shares of Common Stock, or (c) combine its outstanding shares of the
Common Stock into a smaller number of shares of the Common Stock, then, in each
such event, the Exercise Price shall, simultaneously with the happening of such
event, be adjusted by multiplying the then Exercise Price by a fraction, the
numerator of which shall be the number of shares of Common Stock outstanding
immediately prior to such event and the denominator of which shall be the
number of shares of Common Stock outstanding immediately after such event, and
the product so obtained shall thereafter be the Exercise Price then in effect.
The Exercise Price, as so adjusted, shall be readjusted in the same manner upon
the happening of any successive event or events described herein in this Section 4.  The number of shares of Common Stock that the
Holder shall thereafter, on the exercise hereof as provided in Section 1,
be entitled to receive shall be adjusted to a number determined by multiplying
the number of shares of Common Stock that would otherwise (but for the
provisions of this Section 4) be issuable on such exercise by a fraction
of which (a) the numerator is the Exercise Price that would otherwise (but
for the provisions of this Section 4) be in effect, and (b) the
denominator is the Exercise Price in effect on the date of such exercise
(taking into account the provisions of this Section 4).

 

4

 

5.                                       Certificate
as to Adjustments.  In each case of
any adjustment or readjustment in the shares of Common Stock (or Other
Securities) issuable on the exercise of this Warrant, the Company at its
expense will promptly cause its Chief Financial Officer or other appropriate
designee to compute such adjustment or readjustment in accordance with the
terms of this Warrant and prepare a certificate setting forth such adjustment
or readjustment and showing in detail the facts upon which such adjustment or
readjustment is based, including a statement of (a) the consideration
received or receivable by the Company for any additional shares of Common Stock
(or Other Securities) issued or sold or deemed to have been issued or sold, (b) the
number of shares of Common Stock (or Other Securities) outstanding or deemed to
be outstanding, and (c) the Exercise Price and the number of shares of
Common Stock to be received upon exercise of this Warrant, in effect
immediately prior to such adjustment or readjustment and as adjusted or readjusted
as provided in this Warrant.  The Company
will forthwith mail a copy of each such certificate to the Holder and any
Warrant agent of the Company (appointed pursuant to Section 11 hereof).

 

6.                                       Reservation
of Stock, Etc., Issuable on Exercise of Warrant.  The Company will at all times reserve and
keep available, solely for issuance and delivery on the exercise of this
Warrant, shares of Common Stock (or Other Securities) from time to time
issuable on the exercise of this Warrant.

 

7.                                       Assignment;
Exchange of Warrant.  Subject to
compliance with applicable securities laws, this Warrant, and the rights
evidenced hereby, may be transferred by any registered holder hereof (a “Transferor”)
in whole or in part.  On the surrender
for exchange of this Warrant, with the Transferor’s endorsement in the form of Exhibit B
attached hereto (the “Transferor Endorsement Form”) and together with evidence
reasonably satisfactory to the Company demonstrating compliance with applicable
securities laws, which shall include, without limitation, the provision of a
legal opinion from the Transferor’s counsel (at the Company’s expense) that
such transfer is exempt from the registration requirements of applicable
securities laws, the Company at its expense (but with payment by the Transferor
of any applicable transfer taxes) will issue and deliver to or on the order of
the Transferor thereof a new Warrant of like tenor, in the name of the
Transferor and/or the transferee(s) specified in such Transferor Endorsement Form (each
a “Transferee”), calling in the aggregate on the face or faces thereof for the
number of shares of Common Stock called for on the face or faces of the Warrant
so surrendered by the Transferor.

 

8.                                       Replacement
of Warrant.  On receipt of evidence
reasonably satisfactory to the Company of the loss, theft, destruction or
mutilation of this Warrant and, in the case of any such loss, theft or
destruction of this Warrant, on delivery of an indemnity agreement or security
reasonably satisfactory in form and amount to the Company or, in the case of
any such mutilation, on surrender and cancellation of this Warrant, the Company
at its expense will execute and deliver, in lieu thereof, a new Warrant of like
tenor.

 

9.                                       Registration
Rights.  The Holder has been granted
certain registration rights by the Company. 
These registration rights are set forth in a Minimum Borrowing Note Registration
Rights Agreement entered into by the Company and Holder dated as of the date
hereof, as the same may be amended, modified and/or supplemented from time to
time.

 

5

 

10.                                 Maximum Exercise.  Notwithstanding anything contained herein to
the contrary, the Holder shall not be entitled to exercise this Warrant in
connection with that number of shares of Common Stock which would exceed the
difference between (i) 4.99% of the issued and outstanding shares of
Common Stock and (ii) the number of shares of Common Stock beneficially
owned by the Holder.  For the purposes of
the immediately preceding sentence, beneficial ownership shall be determined in
accordance with Section 13(d) of the Securities Exchange Act of 1934,
as amended, and Regulation 13d-3 thereunder. 
The limitation described in the first sentence of this Section 10
shall automatically become null and void following notice to the Company upon
the occurrence and during the continuance of an Event of Default under and as
defined in the Note made by the Company to the Holder dated the date hereof (as
amended, modified or supplemented from time to time, the “Note”), or upon 120
days prior notice to the Company except that at no time shall the number of
shares of Common Stock beneficially owned by the Holder exceed 19.99% of the
outstanding Common Stock. Notwithstanding anything contained herein to the
contrary, the total number of shares of Common Stock issuable by the Company
and acquirable by the Holder at a price below $2.65 per share pursuant to the
terms of this Warrant, shall not exceed an aggregate of 2,339,050 shares of
Common Stock (subject to appropriate adjustment for stock splits, stock
dividends, or other similar recapitalizations affecting the Common Stock) (the “Maximum Common Stock Issuance”), unless the issuance of
Common Stock hereunder in excess of the Maximum Common Stock Issuance shall
first be approved by the Company’s shareholders.  If at any point in time and from time to time
the number of shares of Common Stock issued pursuant to the terms of this Warrant,
together with the number of shares of Common Stock that would then be issuable
by the Company to the Holder in the event of a conversion or exercise pursuant
to the terms of this Warrant, would exceed the Maximum Common Stock Issuance
but for this Section 10, the Company shall promptly call a shareholders
meeting to solicit shareholder approval for the issuance of the shares of
Common Stock hereunder in excess of the Maximum Common Stock Issuance.

 

11.                                 Warrant Agent.  The Company may, by written notice to the
Holder of the Warrant, appoint an agent for the purpose of issuing Common Stock
(or Other Securities) on the exercise of this Warrant pursuant to Section 1,
exchanging this Warrant pursuant to Section 7, and replacing this Warrant
pursuant to Section 8, or any of the foregoing, and thereafter any such
issuance, exchange or replacement, as the case may be, shall be made at such
office by such agent.

 

12.                                 Transfer on the
Company’s Books.  Until this Warrant
is transferred on the books of the Company, the Company may treat the
registered Holder hereof as the absolute owner hereof for all purposes,
notwithstanding any notice to the contrary.

 

13.                                 Notices, Etc.  All notices and other communications from the
Company to the Holder shall be mailed by first class registered or certified
mail, postage prepaid, at such address as may have been furnished to the
Company in writing by such Holder or, until any such Holder furnishes to the
Company an address, then to, and at the address of, the last Holder who has so
furnished an address to the Company.

 

14.                                 Miscellaneous.  This Warrant and any term hereof may be
changed, waived, discharged or terminated only by an instrument in writing
signed by the party against which 

 

6

 

enforcement of such change, waiver, discharge or
termination is sought.  THIS WARRANT
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF STATE OF NEW
YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS.  ANY ACTION BROUGHT CONCERNING THE
TRANSACTIONS CONTEMPLATED BY THIS WARRANT SHALL BE BROUGHT ONLY IN THE STATE
COURTS OF NEW YORK OR IN THE FEDERAL COURTS LOCATED IN THE STATE OF NEW YORK;
PROVIDED, HOWEVER, THAT THE HOLDER MAY CHOOSE TO WAIVE THIS PROVISION AND
BRING AN ACTION OUTSIDE THE STATE OF NEW YORK. 
The individuals executing this Warrant on behalf of the Company agree to
submit to the jurisdiction of such courts and waive trial by jury.  The prevailing party shall be entitled to
recover from the other party its reasonable attorneys’ fees and costs.  In the event that any provision of this
Warrant is invalid or unenforceable under any applicable statute or rule of
law, then such provision shall be deemed inoperative to the extent that it may
conflict therewith and shall be deemed modified to conform with such statute or
rule of law.  Any such provision
which may prove invalid or unenforceable under any law shall not affect the
validity or enforceability of any other provision of this Warrant.  The headings in this Warrant are for purposes
of reference only, and shall not limit or otherwise affect any of the terms
hereof.  The Company acknowledges that
legal counsel participated in the preparation of this Warrant and, therefore,
stipulates that the rule of construction that ambiguities are to be
resolved against the drafting party shall not be applied in the interpretation
of this Warrant to favor any party against the other party.

 

[BALANCE OF PAGE
INTENTIONALLY LEFT BLANK;

SIGNATURE PAGE FOLLOWS]

 

7

 

IN WITNESS WHEREOF, the
Company has executed this Warrant as of the date first written above.

 

 

	
   

  	
  IWT TESORO CORPORATION

  
	
   

  	
   

  
	
  WITNESS:

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
					

 

8

 

Exhibit A

 

FORM OF SUBSCRIPTION

(To Be Signed Only On Exercise Of Warrant)

 

TO:                            IWT
Tesoro Corporation

191 Post Road West

Westport, CT 06880

 

Attention:                 Chief Financial
Officer

 

The undersigned, pursuant
to the provisions set forth in the attached Warrant (No.     ),
hereby irrevocably elects to purchase           
shares of the Common Stock covered by such Warrant.

 

The undersigned herewith
makes payment of the full Exercise Price for such shares at the price per share
provided for in such Warrant, which is $          .  Such payment takes the form of lawful money
of the United States.

 

The undersigned requests
that the certificates for such shares be issued in the name of, and delivered
to                                    
                                                                               whose
address is                                                                                                             

                                                                              .

 

The undersigned
represents and warrants that all offers and sales by the undersigned of the securities
issuable upon exercise of the within Warrant shall be made pursuant to
registration of the Common Stock under the Securities Act of 1933, as amended
(the “Securities Act”) or pursuant to an exemption from registration under the
Securities Act.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (Signature must conform to name of holder
  as 

  specified on the face of the Warrant)

  
	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

A-1

 

Exhibit B

 

FORM OF TRANSFEROR ENDORSEMENT

(To Be Signed Only On Transfer Of Warrant)

 

For value received, the
undersigned hereby sells, assigns, and transfers unto the person(s) named below
under the heading “Transferees” the right represented by the within Warrant to
purchase the percentage and number of shares of Common Stock of IWT Tesoro
Corporation into which the within Warrant relates specified under the headings “Percentage
Transferred” and “Number Transferred,” respectively, opposite the name(s) of
such person(s) and appoints each such person attorney to transfer its
respective right on the books of IWT Tesoro Corporation with full power of
substitution in the premises.

 

	
  Transferees

  	
   

  	
  Address

  	
   

  	
  Percentage 

  Transferred

  	
   

  	
  Number 

  Transferred

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (Signature must conform to name of holder
  as 

  specified on the face of the Warrant)

  
	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

	
   

  	
  SIGNED IN THE PRESENCE OF:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Name)

  
	
   

  	
   

  
	
  ACCEPTED AND AGREED:

  	
   

  
	
  [TRANSFEREE]

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Name)

  	
   

  	
   

  

 

B-1

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