Document:

Exhibit 10.17.4

 

AMENDMENT NO. 4

TO AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS
AMENDMENT NO. 4 TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) is
entered into as of July 9, 2009, between SouthWest Water Company, a
Delaware corporation (“Borrower”), and Bank of America, N.A., as Administrative
Agent, with reference to the Amended and Restated Credit Agreement dated as of February 15,
2008 (as amended, the “Credit Agreement”), among Borrower, the Lenders
described therein, and the Administrative Agent.  Capitalized terms not otherwise defined
herein are used with the meanings set forth for those terms in the Credit
Agreement.

 

The
parties hereto enter into this Amendment with reference to the following facts:

 

A.                                   Pursuant to
Amendment No. 3 to Amended and Restated Credit Agreement dated as of June 17,
2009 (“Amendment No. 3”), between the Borrower and the Administrative
Agent (with the consent of the Required Lenders), Borrower was required to
deliver the financial statements required under Sections 6.01(a) and 6.02(a) of
the Credit Agreement with respect to the fiscal year ended December 31,
2008, on or prior to the July 1, 2009.  
The Borrower has delivered such financial statements (other than the
unqualified report and opinion of its public accountant) after the July 1,
2009 deadline and has not yet delivered the unqualified report and opinion of
its public accountant required pursuant to Section 6.01(a) of the
Credit Agreement (the “Existing Defaults”).

 

B.                                     Borrower has
requested that the Lenders waive the Existing Defaults and extend the time by
which the unqualified report and opinion of its public accountant required
pursuant to Section 6.01(a) of the Credit Agreement with respect to
the financial statements for the fiscal year ended December 31, 2008 (the “2008
Unqualified Opinion”), must be delivered to one Business Day after the
effective date of this Amendment.

 

C.                                     The
Administrative Agent, acting with the consent of the Required Lenders pursuant
to Section 10.01 of the Credit Agreement, has agreed to waive the Existing
Defaults and to otherwise amend the Credit Agreement and the other Loan
Documents on the terms set forth in this Amendment.

 

NOW,
THEREFORE, Borrower and Administrative Agent, acting with the consent of the
Required Lenders pursuant to Section 10.01 of the Credit Agreement, agree
as follows:

 

1.                                       Representations
and Warranties.  Borrower
represents and warrants to Administrative Agent and the Lenders that:

 

(a)                                  after giving
effect to this Amendment, no Default or Event of Default has occurred and
remains continuing;

 

(b)                                 after giving
effect to this Amendment, except for representations or warranties which are
inaccurate as a direct result of the correction and restatement of the Subject
Financial Statements, and except as set forth in the Schedules to the Credit
Agreement, each of the representations and warranties set forth in Article V
of the Credit Agreement are true and correct as of the date of this Agreement
(other than those representations which relate solely to a prior date, each of
which was true as of that date) provided that Schedules 5.06 and 5.09
are updated in the manner attached to Amendment No. 2 to Amended and
Restated Credit Agreement dated as of May 28, 2009, between the Borrower
and the Administrative Agent; and

 

1

 

(c)                                  neither
Borrower nor any of its Subsidiaries is in default of any indenture, loan or
credit or similar agreement governing Indebtedness in a principal amount which
exceeds $1,000,000 in any manner which entitles the holder of such
Indebtedness, or which would entitle the holder of such Indebtedness with the
giving of any notice, the passage of time (including any cure period), or both,
to require the payment of any such Indebtedness prior to the date upon which
such Indebtedness would otherwise be due and payable.

 

2.                                       Waiver.  In reliance upon the agreements,
representations and warranties set forth in this Amendment, the Lenders hereby
waive the Existing Defaults.  The Lenders’
waiver of the Existing Defaults constitutes a one-time waiver of the specific
Existing Defaults described in this Amendment, shall not constitute a waiver of
any other or future Defaults or Events of Default, whether or not similar to
the Existing Defaults, and shall not be construed as a waiver of the Borrower’s
obligation to deliver the 2008 Unqualified Opinion as set forth in Section 3
of this Amendment.

 

3.                                       Covenant
Regarding 2008 Unqualified Opinion.  Notwithstanding any
provision to the contrary in the Credit Agreement, the Borrower shall deliver
to the Administrative Agent the 2008 Unqualified Opinion no later than one
Business Day after the effective date of this Amendment.  The effective date of this Amendment shall
mean the Business Day on which the Administrative Agent declares that the
conditions to effectiveness set forth in Section 4 of this Amendment have
been satisfied.  The Borrower
acknowledges and agrees that its failure to comply with the covenant set forth
in this Section 3 shall constitute an immediate Event of Default under the
Credit Agreement with respect to which the Administrative Agent and the Lenders
shall have all rights and remedies set forth therein and at law.

 

4.                                       Conditions to
Effectiveness.  The
effectiveness of this Amendment shall be subject to the prior satisfaction of
the following conditions precedent, in each case in form and substance
satisfactory to the Administrative Agent:

 

(a)                                  the
Administrative Agent shall have received a consent of the Guarantors in the
form of Exhibit A hereto executed by each of the parties thereto;

 

(b)                                 the
Administrative Agent shall have received the written consent of the Required
Lenders as required under Section 10.01 of the Credit Agreement in the
form of Exhibit B hereto; and

 

(c)                                  the Administrative Agent shall have
received, for the account of each Lender which has executed a consent hereto
prior to 3:00 p.m. (Los Angeles time) on July 9, 2009 (or any
extension of such deadline announced via the Intralinks system), an amendment
fee in an amount equal to 0.05% of such Lender’s Commitment under the Credit
Agreement.

 

5.                                       Effectiveness of the Credit
Agreement.  Except as hereby expressly amended, the
Credit Agreement remains in full force and effect, and is hereby ratified and
confirmed in all respects.

 

6.                                       Counterparts.  This
Amendment may be executed in any number of counterparts and all of such
counterparts taken together shall be deemed to constitute one and the same
instrument.

 

[Signature Page Follows]

 

2

 

IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed and delivered as of the date first written above.

 

	
   

  	
  SOUTHWEST WATER COMPANY, a
  Delaware corporation,

  
	
   

  	
  as Borrower

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark A. Swatek

  
	
   

  	
  Name:

  	
  Mark A. Swatek

  
	
   

  	
  Title:

  	
  CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A.,

  
	
   

  	
  as Administrative Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ken Puro

  
	
   

  	
  Name:

  	
  Ken Puro

  
	
   

  	
  Title:

  	
  Vice President

  

 

Signature
Page

 

Exhibit A to Amendment

 

CONSENT OF GUARANTORS

 

This
Consent of Guarantors (this “Consent of Guarantors”) is delivered with
reference to (a) the Amended and Restated Credit Agreement dated as of February 15,
2008 (as heretofore amended, restated, extended, supplemented, or otherwise
modified, the “Credit Agreement”), among SouthWest Water Company, a Delaware
corporation (“Borrower”), the lenders from time to time party thereto
(collectively, the “Lenders”), and Bank of America, N.A., as Administrative
Agent (“Administrative Agent”) and (b) the Amended and Restated Continuing
Guaranty dated as of February 15, 2008, made by each of the undersigned
Guarantors (as heretofore amended, restated, extended, supplemented, or
otherwise modified, the “Guaranty”). 
Capitalized terms not otherwise defined herein are used with the
meanings set forth for those terms in the Credit Agreement.

 

Each
of the undersigned Guarantors (i) consents to and approves Borrower’s
execution and delivery of the attached Amendment No. 4 to Amended and
Restated Credit Agreement (the “Amendment”), (ii) agrees that such
Amendment does not and shall not limit or diminish in any manner the
obligations of such Guarantor under the Guaranty and that such obligations
would not be limited or diminished in any manner even if such Guarantor had not
executed this Consent of Guarantors, (iii) reaffirms the Guaranty, and (iv) agrees
that the Guaranty remains in full force and effect and is hereby ratified and
confirmed.

 

Dated as of July 9, 2009.

 

	
   

  	
  ECO
  RESOURCES, INC.,

  
	
   

  	
  a
  Texas corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  OPERATIONS
  TECHNOLOGIES, INC.,

  
	
   

  	
  a
  Georgia corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  SWWC
  SERVICES, INC.,

  
	
   

  	
  a
  Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

	
   

  	
  METRO-H2O,
  LTD.,

  
	
   

  	
  a
  Texas limited partnership

  
	
   

  	
   

  
	
   

  	
   

  	
  By:
  Metro-H2O Utilities, Inc.

  
	
   

  	
   

  	
  Its:  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  METRO-H2O
  UTILITIES, INC.,

  
	
   

  	
  a
  Texas corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SWWC
  ENTERPRISES, INC.,

  
	
   

  	
  a
  Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  SWWC
  UTILITIES, INC.,

  
	
   

  	
  a
  Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CDC
  MAINTENANCE, INC.,

  
	
   

  	
  a
  Texas corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NEW
  MEXICO UTILITIES, INC.,

  
	
   

  	
  a
  New Mexico corporation,

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

Exhibit B to Amendment

 

CONSENT OF LENDER

 

Reference
is hereby made to the Amended and Restated Credit Agreement dated as of February 15,
2008 (as heretofore amended, restated, extended, supplemented, or otherwise
modified, the “Credit Agreement”), among SouthWest Water Company, a Delaware
corporation (“Borrower”), the lenders from time to time party thereto
(collectively, the “Lenders”), and Bank of America, N.A., as Administrative
Agent (“Administrative Agent”). 
Capitalized terms not otherwise defined herein are used with the
meanings set forth for those terms in the Credit Agreement.

 

The
undersigned Lender hereby consents to the execution and delivery of an
Amendment No. 4 to Amended and Restated Credit Agreement by Administrative
Agent on its behalf, substantially in the form of the most recent draft thereof
presented to the undersigned Lender.

 

Dated
as of July 9, 2009.

 

 

	
   

  	
   

  
	
   

  	
  [Name
  of Lender]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

[Note to consenting Lender -
Please fax or email this consent to:

 

Charbel F. Lahoud

Sheppard, Mullin Richter &
Hampton, LLP

333 South Hope Street, 48th Floor

Los Angeles, California, 90071

clahoud@sheppardmullin.com

telecopier: (213) 443-2730

telephone (213) 617-4182

 

Email submissions will be
confirmed by return email.

There is no need to submit original signatures.]Filed by sedaredgar.com - Ecologic Transportation, Inc. - Exhibit 10.2

EMPLOYMENT AGREEMENT

     This Employment Agreement
(“Agreement”), dated as of January 30, 2009 (the “Effective Date”), is made by
and among William Plamondon (“Executive”) and Ecologic Transportation, Inc. or
its successor company, a Nevada corporation (the “Company”).

     WHEREAS, Executive will be
employed by the Company as its Chief Executive Officer (CEO).

     WHEREAS, the members of
the Board of Directors of the Company desire to enter into an employment
agreement with Executive, which employment agreement from January 30, 2009
through January 30th 2012; and

     WHEREAS, the agreed upon
terms and conditions of Executive’s continued employment are embodied in this
Agreement.

     NOW THEREFORE, for good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company and Executive do hereby agree as follows:

Section 1. Employment and Duties. On the terms and
subject to the conditions set forth in this Agreement, subject to the approval
and ratification of Board of Directors, such approvals to be obtained prior
January 15th, 2009 to the Effective Date, the Company agrees to
employ Executive as its Chief Executive Officer to render such services as would
be customary and to render such other services and discharge such other
responsibilities as the Board of Directors of the Company may, from time to
time, stipulate and which shall not be inconsistent with the position listed
above. 

Section 2. Performance. (a) Executive accepts the
employment as set forth in Section 1 herein and agrees to concentrate all of
his/her professional time and efforts to the performance of the services
described therein, including the performance of such other services and
responsibilities as the Board of Directors of the Company may from time to time
stipulate and which shall not be inconsistent with the position listed
above.

(b) Without limiting the generality of the foregoing, Executive
ordinarily shall devote not less than five (5) days per week (except for
vacations and regular business holidays observed by the Company) on a full-time
basis, during normal business hours Monday through Friday. Executive further
agrees that when the performance of his/her duties reasonably requires, he/she
shall be present on the Company’s premises or engaged in service to or on behalf
of the Company at such times except during vacations, regular business holidays
or weekends.

Section 3. Term/Termination.

Page 1 of 11

3.1 Term. The term of employment under this Agreement
(the “Employment Period”) shall commence on January 30th 2009 and
terminate on January 30th 2012, unless earlier terminated pursuant to
the termination provisions set forth herein. Notwithstanding anything to the
contrary herein, the parties acknowledge and agree that Executive’s employment
may be terminated by the Company only for Due Cause (as hereinafter defined). At
the end of the Employment Period, the continuation of Executive’s employment
with the Company shall be at the will of the Company and Executive on terms and
conditions agreed to by the Company and Executive and there shall be no
obligation on the part of the Company or Executive to continue such employment,
provided, however, that not later than August 31st, 2011, the Company
and Executive shall provide to each other reasonably specific notice of their
respective intentions with regard to continuation of Executive’s employment
subsequent to the Employment Period.

3.2 Termination for Due Cause. The Employment Period may
be terminated for Due Cause only for the following reasons and upon the terms
and conditions set forth in this Section 3.2. The Company, by a vote of a
majority of the Board of Directors (a “Termination Vote”) may terminate the
Employment Period, effective upon written notice of such termination to
Executive, such notice made pursuant to Section 7 herein, in the event of (i) a
material breach by Executive of his fiduciary duty or duty of loyalty to Company
or of his covenants under this Agreement if such material breach is not remedied
within fifteen (15) calendar days following written notice by the Company; (ii)
the failure of Executive to comply with any material term of this Agreement
which materially adversely affects the Company; (iii) commission by Executive of
theft or embezzlement of property of the Company or other acts of dishonesty of
a material nature and/or commission by Executive of a crime resulting in a
material injury to the businesses, properties or reputations of the Company or
any of its affiliates; (iv) commission of an act by Executive in the performance
of his duties hereunder reasonably determined by a majority of the board of
directors of the Company to constitute gross, willful or wanton negligence; (v)
willful refusal to perform or substantial neglect of the duties assigned to
Executive pursuant to Section 1 of this Agreement if such refusal or neglect is
not remedied within fifteen (15) calendar days following written notice by the
Company; or (vi) any significant violation of any statutory or common law duty
of loyalty to the Company or its affiliates. All compensation paid to Executive
shall immediately cease upon termination for Due Cause hereunder except accrued
and unpaid compensation and all unvested Stock Options shall immediately
expire.

3.3 Termination Due to Death. The Employment Period
shall be terminated upon the death of Executive. All compensation paid to
Executive shall immediately cease upon such termination except for accrued and
unpaid compensation pursuant to Section 4.1 herein and earned but unpaid bonus
payments pursuant to Section 4.2 herein. All unvested Stock Options shall
immediately become vested.

3.4 Termination Due to Permanent Total Disability. The
Employment Period shall be terminated upon the Permanent Total Disability (as
defined in this Section 3.4) of Executive following written notice from the
Company. Permanent Total Disability is defined as an inability by Executive to
perform substantially all of the services required 

Page 2 of 11

pursuant to this Agreement for a continuous period of ninety
(90) days or for a period aggregating at ninety (90) days in any consecutive
twelve (12) month period when such inability is caused by illness or a physical
or mental disability. Such Permanent Total Disability shall be determined by a
physician selected jointly by the parties hereto. All unvested Stock Options
shall immediately become vested.

3.5 Termination Other Than Due Cause, Death, Disability or
Resignation. In the event that Executive’s employment is terminated for
reasons other than Due Cause, or resignation, then all Stock Options scheduled
to vest within one year of the date of such termination shall vest immediately
and the Company shall pay as severance compensation to Executive six (6) months
salary compensation at his then annual salary compensation rate, including bonus
earned as of the termination date. Any severance compensation paid to Executive
shall be paid ratably over the remaining payment period following termination.
Any bonus compensation earned as of the termination date shall be paid to
Executive pursuant to the bonus payment schedule set forth in Section 4.2
herein.

3.6 Termination by Executive. Executive may terminate
the Employment Period (i) in the event the Company has breached a material term
or condition of this Agreement which is not cured or remedied within thirty (30)
days following written notice by Executive to Board of Directors of Company of
such breach or (ii) at Executive’s convenience. In the event that Executive’s
resignation is due to an uncured breach by the Company, such resignation shall
be deemed a termination by the Company as without Due Cause for purposes of
vesting of Stock Options pursuant to Section 4.3 herein and for payments of
salary and bonus compensation as set forth in Sections 4.1 and 4.2,
respectively, herein. In the event that the Employment Period is terminated by
Executive at his convenience, then Executive will be due any earned but unpaid
salary, vacation and bonus compensation as set forth in Sections 4.1, 4,2, and
4.3, respectively, herein. 

3.7 Surrender of Position and Properties. Upon
termination of Executive’s employment with the Company, regardless of the cause
therefore, Executive shall promptly be deemed to have resigned from the
Company’s Board of Directors and as an officer and director of any of the
Company’s affiliates, if serving as such at that time, and shall surrender to
the Company or its affiliates all property provided to him by the Company or its
affiliates, as applicable, for use in relation to his employment and further,
Executive shall surrender to the Company or its affiliates, as applicable, any
and all sales materials, lists of customers and prospective customers,
investment performance reports, files, patent applications, records, models or
other materials and information of or pertaining to the Company or its
affiliates or their customers or prospective customers or the products,
businesses and operations of the Company or its affiliates.

3.8 Survival of Covenants. The covenants of Executive
set forth in Section 5 herein shall survive the termination of the Employment
Period or termination of this Agreement.

Section 4. Compensation/Expenses.

Page 3 of 11

4.1 Salary. In exchange for the services to be rendered
by Executive hereunder, the Company agrees to pay, during the Employment Period,
a salary at an annual rate of $420,000 at such intervals as may be consistent
with the Company’s normal compensation schedule, but not less than once per
month.

4.2 Bonus.

(a) The Company shall establish an annual bonus plan of which
certain management employees of the Company shall be eligible to participate,
which annual bonus plan shall comprise a calendar year (the “Plan Year”).
Executive will be eligible to participate in such annual bonus plan during the
term of this Agreement with goals (the “Annual Goals”) established and approved
by the Board of Directors. Pursuant to this annual bonus plan, Executive shall
be eligible for discretionary performance and incentive bonuses if and as may be
determined in the sole discretion of the Board of Directors of the Company. The
goals that shall be tied to the Company’s Long Term Financial Pro forma and
shall serve as the basis of evaluation for any payments awarded pursuant to the
Company’s annual bonus plan shall be established and approved by the Board of
Directors. At the conclusion of the Plan Year, the Board of Directors shall
determine the level of success achieved by the Executive against the Annual
Goals and recommend the amount of the annual bonus plan payment. If Executive’s
employment is terminated for reasons other than Due Cause or his voluntary
resignation, he will be entitled to receive any bonus earned up to the date of
termination as reasonably determined by the Board of Directors. All payments
related to the annual bonus plan are subject to the prior approval by the Board
of Directors and the Company’s ability to make such payments when considering
the cash position of the Company.

(b) Plamondon will receive a One Hundred Thousand Dollar
($100,000) bonus after two letters of intent for acquisition of other companies
are accepted by the Company’s Board of Directors.

4.3 Stock. The Company hereby grants to Executive the
right to purchase the following stock at par value $.001 in the Company. As of
the Effective Date of this Agreement, the Company grants Executive 26% of equity
in the Company or five million three hundred and nine thousand seven hundred and
fifty (5,309,750) shares as of January 15 2009. If the executive voluntarily
resigns from office during the period of his employment he must return a
proportionate amount of equity on a pro rata basis equal to 66%. However, in the
event of a change of control of the Company, all stock will immediately
vest.

4.4 Insurance. OPTION 1 Executive if he so elects
and if permissible by the Company plans, will be entitled to participate in
fringe benefit, health insurance, life insurance, and other programs which
Company may adopt from time to time for executives of Company. Participation
will be in accordance with any plans and any applicable policies adopted by
Company.

OPTION 2 During the Employment Period, the
Company shall reimburse Executive for health care insurance including dental as
well as reimburse Executive for equivalent life 

Page 4 of 11

insurance coverage. Such reimbursement shall cease once a
company benefits plan is in place. 

4.5 Business Expenses. Executive shall be reimbursed for
business-related expenses that he incurs pursuant to his employment with the
Company, such expenses to be timely submitted and reasonable, and subject to the
Company’s then standing Expense Reimbursement Policy and the review and approval
of the Board of Directors or its authorized designate. Executive shall provide
the Company with expense reports detailing business-related expenses and
supporting documentation and other substantiation of such expenses that conform
to the reporting requirements of the Company and requirements of the Internal
Revenue Service. Plamondon is located in the state of Florida and Plamondon will
not have to relocate. Plamondon as part of this engagement of Plamondon is
required to commute to Company and shall have expenses paid accordingly.

4.7 Vacation. Executive shall be entitled to vacations
in accordance with Company policy in effect from time to time. Until written
policies are adopted, Plamondon will accrue three (3) weeks vacation during the
Initial Term and four (4) weeks vacation during each Additional Term.

4.8 Company Vehicle. Executive will be entitled to an
automobile allowance of $750.00 per month or, at the discretion of the Company,
to the use of a Company-owned or leased vehicle.

Section 5. Covenants of Executive.

5.1 Confidentiality. During the Employment Period and
following the termination thereof for any reason, Executive shall not disclose
or make any use of, for his own benefit or for the benefit of a business or
entity other than the Company or its affiliates, any secret or confidential
information, lists of customers and prospective customers or any other
information of or pertaining to the Company or its affiliates that is not
generally known within the trade of the Company or its affiliates or which is
not publicly available.

5.2 Inventions and Secrecy. Except as otherwise provided
in this Section 5.2, Executive (i) shall hold in a fiduciary capacity for the
benefit of the Company and its affiliates, all secret and confidential
information, knowledge, or data of the Company and its affiliates obtained by
Executive during his employment by the Company, which is not generally know to
the public or recognized as standard practice (whether or not developed by
Executive) and shall not, during his employment by the Company and following the
termination of such employment for any reason, communicate or divulge any such
information, knowledge or data to any person or entity other than the Company or
its affiliates or persons or entities designated by the Company; (ii) shall
promptly disclose to the Company all inventions, ideas, devices and processes
made or conceived by him along or jointly with others, from the time of entering
the Company’s employ and until such employment is terminated and for a one (1)
year period following such termination, relevant or pertinent in any way,
whether directly or indirectly, to the Company or its 

Page 5 of 11

affiliates or resulting from or suggested by any work which he
may have done for or at the request of the Company or its affiliates; (iii)
shall at all times during his employment with the Company, assist the Company
and its affiliates in every proper way (at the expense of the Company) to obtain
and develop for the benefit of the Company inventions, ideas, devices and
processes, whether or not patented; and (iv) shall perform all such acts and
execute, acknowledge and deliver all such instruments as may be necessary or
desirable in the opinion of the Company to vest in the Company, the entire
interest in such inventions, ideas, devices and processes referred to in this
Section 5.2. Executive and Company each agree that all documents, reports,
files, analyses, drawings, designs, tools, equipment, plans (including, without
limitation, marketing and sales plans), proposals, customer lists, computer
software or hardware, and similar materials that are made by Executive or come
into his or its possession by reason of and during the term of Executive’s
engagement with Company are the property of Company and will not be used by his
in any way adverse to Company’s interests. Executive also agrees not to allow
any such documents or things, or any copies, reproductions or summaries to be
delivered to or used by any third party without the specific consent of Company.
Executive agrees to deliver to the Company, upon demand, and in any event upon
the termination of Executive’s engagement, all of such documents and things
which are in Executive’s possession or under his or its control. Executive
expressly agrees that all of his work product shall be and remain the sole and
exclusive property of the Company. Accordingly, all work products eligible for
any form of copyright protection shall be deemed a “work made for hire” under
the copyright laws and shall be owned by the Company.

5.3 Competition Following Termination. For the six month period (severance period) following
termination, for any reason, of Executive’s employment with the Company,
Executive shall not, without the prior written consent of the Company, which
consent may be withheld at the sole discretion of the Company, (i) engage
directly or indirectly, whether as an officer, director, stockholder (of 10% or
more of such entity), partner, majority owner, managerial employee, creditor, or
otherwise with the operation, management or conduct of any business that
competes with the businesses of the Company or its affiliates being conducted at
the time of such termination; (ii) solicit, contact, interfere with, or divert
any customer served by the Company or its affiliates, or any prospective
customer identified by or on behalf of the Company or its affiliates (such
customers and prospective customers existing or identified by the Company as of
the date of Executive’s termination) if such intention is to divert business
from or compete with the Company; or (iii) solicit any person then or previously
employed by the Company or its affiliates to join Executive, whether as a
partner, agent, employee or otherwise, in any enterprise engaged in a business
similar to the businesses of the Company or its affiliates being conducted at
the time of such termination. Executive shall not, without the prior written
consent of the Company compete in a “Green”transportation company for a period
of two (2) years.

5.4 Acknowledgement. Executive acknowledges that the
restrictions set forth in this Section 5 are reasonable in scope and essential
to the preservation of the businesses and proprietary properties of the Company
and its affiliates and that the enforcement thereof 

Page 6 of 11

will not in any manner preclude Executive, in the event of his
termination of employment with the Company, from becoming gainfully employed in
such manner and to such extent as to provide a reasonable standard of living for
himself, the members of his family and those dependent upon him of at least the
sort and fashion to which he and they have become accustomed and may expect.

5.5 Severability - Covenants. The covenants of Executive
contained in this Section 5 shall each be construed as any agreement independent
of any other provision in this Agreement and the existence of any claim or cause
of action of Executive against the Company or its affiliates, whether predicated
on this Agreement or otherwise, shall not constitute a defense to the
enforcement by the Company or its affiliates of such covenants. The parties
hereto expressly agree and contract that it is not the intention of any party to
violate any public policy, statutory or common law, and that if any sentence,
paragraph, clause or combination of the same of this Agreement is in violation
of the law of any state where applicable, such sentence, paragraph, clause or
combination of the same shall be void in the jurisdictions where it is unlawful
and the remainder of such provision and this Agreement shall remain binding on
the parties to make the covenants of this Agreement binding only to the extent
that it may be lawfully done under existing applicable laws. In the event that
any part of any covenant of this Agreement is determined by a court of law to be
overly broad thereby making the covenant unenforceable, the parties hereto
agree, and it is their desire, that such court shall substitute a judicially
enforceable limitation in its place, and that as so modified the covenant shall
be binding upon the parties as if originally set forth herein.

Section 6. Indemnification. In addition to any rights
Executive may have under the Company's charter or by-laws, the Company agrees to
indemnify Executive and hold Executive harmless, both during the Term and
thereafter, against all costs, expenses (including, without limitation, fines,
excise taxes and attorneys' and accountants’ fees) and liabilities (other than
settlements to which the Company does not consent, which consent shall not be
unreasonably withheld) (collectively, "Losses") reasonably incurred by Executive
in connection with any claim, action, proceeding or investigation brought
against or involving Executive with respect to, arising out of or in any way
relating to Executive's employment with the Company or Executive's service as a
director of the Company; provided, however, that the Company shall not be
required to indemnify Executive for Losses incurred as a result of Executive's
intentional misconduct or gross negligence (other than matters where Executive
acted in good faith and in a manner he reasonably believed to be in and not
opposed to the Company's best interests). Executive shall promptly notify the
Company of any claim, action, proceeding or investigation under this paragraph
and the Company shall be entitled to participate in the defense of any such
claim, action, proceeding or investigation and, if it so chooses, to assume the
defense with counsel selected by the Company; provided that Executive shall have
the right to employ counsel to represent him (at the Company's expense) if
Company counsel would have a "conflict of interest" in representing both the
Company and Executive. The Company shall not settle or compromise any claim,
action, proceeding or investigation without Executive's consent, which consent
shall not be unreasonably withheld; provided, however, that such consent shall
not be required if the settlement entails only the 

Page 7 of 11

payment of money and the Company fully indemnifies Executive in
connection therewith. The Company further agrees to advance any and all expenses
(including, without limitation, the fees and expenses of counsel) reasonably
incurred by the Executive in connection with any such claim, action, proceeding
or investigation. The Company currently maintains a policy of directors' and
officers' liability insurance covering Executive and, notwithstanding the
expiration or earlier termination of this Agreement, the Company shall maintain
a directors' and officers' liability insurance policy covering Executive for a
period of time following such expiration or earlier termination equal to the
statute of limitations for any claim that may be asserted against Executive for
which coverage is available under such directors' and officers' liability
insurance policy. The provisions of this paragraph shall survive the termination
of this Agreement for any reason.

Section 7. Notice. Any notice required or permitted
hereunder shall be made in writing (i) either by actual delivery of the notice
into the hands of the party hereunder entitled, or (ii) by the mailing of the
notice in the United States mail, certified mail, return receipt requested, all
postage prepaid and addressed to the party to whom the notice is to be given at
the party’s respective address set forth below, or such other address as the
parties may from time to time designate by written notice as provided herein and
(iii) via facsimile to the fax number provided by the Parties below with a
confirmation receipt. Notice will hereby be deemed to be satisfied via the
delivery of any of the methods listed above.

	If to the Company: 
	Attn: General Counsel 
	Chase Mellen 
	Address: 1157 S. Beverly Dr 
	                  Los
      Angeles, CA 90035 
	  
	Facsimile 
	  
	If to Executive: 
	Address: 
	  
	4240 Galt Ocean Drive 
	Suite 404 
	Fort Lauderdale, FL 33308 

Facsimile:

The notice shall be deemed to be received in case (i) on the
date of actual receipt by the party and in case (ii) three days following the
date of the mailing.

Section 8. Amendment and Waiver. No amendment or
modification of this Agreement shall be valid or binding upon: (i) the Company
unless made in writing and signed by an officer of the Company, duly authorized
by the Board of Directors of the Company or; 

Page 8 of 11

(ii) Executive unless made in writing and signed by him. The
waiver by the Company or Executive of the breach of any Provision of this
Agreement by the other party shall not operate or be construed as a waiver of
any subsequent breach of such party.

Section 9. Governing Law/Waiver of Claims/Arbitration.
(a) The validity and effect of this Agreement and the rights and obligations of
the parties hereto shall be governed by, and construed in accordance with, the
laws of the State of Nevada without giving effect to the principles of conflicts
of laws thereof.

(b) Each Party to this Agreement hereby waives any claim it
may have on such other Party due to any past business dealings between
the Parties prior to the Effective Date of this Agreement.
Additionally, the parties hereto agree that in the event of any and all
disagreements and controversies arising from this Agreement or any other
agreements between the Company and Executive the breach, termination or validity
thereof or the present and future dealings between the parties, such
disagreements and controversies shall be subject to a two step mediation and
binding arbitration process. The first step will first to a one time mediations
session to be held in accordance with the Nevada Bar Associations Mediation
guidelines and to be heard in front of a Mediation expert that has been
practicing for a period of at least 5 years. If the Parties fail to resolve
their dispute via Mediation, the Parties agree to a second step of binding
arbitration as arbitrated in accordance with the then current Commercial
Arbitration Rules of the American Arbitration Association (the “AAA”) to be held
in Las Vegas, Nevada before one neutral arbitrator. Such arbitrator shall be
selected by mutual agreement of the parties within thirty (30) days of written
notice of a continuing dispute following mediation of said disagreement or
controversy. If the parties cannot mutually agree to an arbitrator within thirty
(30) days, then the AAA shall designate the arbitrator. Either party may apply
to the arbitrator seeking injunctive relief until the arbitration award is
rendered or the controversy is otherwise resolved. Without waiving any remedy
under this Agreement, either party may also seek from any court having
jurisdiction any interim or provisional relief that is necessary to protect the
rights or property of that party, pending the establishment of the arbitral
tribunal (or pending the arbitral tribunal’s determination of the merits of the
controversy). In the event of any such disagreement or controversy, neither
party shall directly or indirectly reveal, report, publish or disclose any
information relating to such disagreement or controversy to any person, firm or
corporation not expressly authorized by the other party to receive such
information or use such information or assist any other person in doing so,
except to comply with actual legal obligations of such party or unless such
disclosure is directly related to an arbitration proceeding as provided herein,
including, but not limited to, the prosecution or defense of any claim in such
arbitration. The costs and expenses of the arbitration (excluding attorneys’
fees) shall be paid by the non-prevailing Party or as determined by the
arbitrator. This paragraph shall survive the termination of this Agreement.

Section 10. Entire Agreement. This Agreement contains
all of the terms agreed upon by the parties with respect to the subject matter
hereof and supersedes all prior agreements, arrangements and communications
between the parties dealing with such subject matter, whether oral or written,
but limited to the Employment Period.

Page 9 of 11

Section 11. Reservation of Right. Notwithstanding any
other provision of this Agreement, Company reserves the right to modify, suspend
or discontinue any and all benefit plans, practices, policies and programs at
any time whether before or after termination of this Agreement without advance
notice to or recourse by Executive.

Section 12. Binding Effect. This Agreement shall be
binding upon and shall inure to the benefit of the transferees, successors and
assigns of the Company, including any company or entity with which the Company
may merge or consolidate.

Section 13. Remedies for Breach. Executive acknowledges
that his services pursuant to this Agreement are unique and extraordinary and
that irreparable injury will result to the Company and its businesses and
properties in the event of a material breach of the terms and conditions of this
Agreement to be performed by him, the Company shall be entitled, if it so
elects, to institute and prosecute proceedings in any court of competent
jurisdiction, either at law or in equity, to enjoin him from performing services
for any other person or entity in violation of any of the terms of this
Agreement, and to obtain damages for any breach of this Agreement. In the event
of a material breach by the Company of any of the terms and conditions of this
Agreement to be performed by it, Executive shall have all remedies, legal or
equitable, available to him under the laws of the State of Nevada. The remedies
provided herein shall be cumulative and in addition to any and all other
remedies which either party may have at law or in equity.

Section 14. Costs of Enforcement. In the event of any
suit or proceeding seeking to enforce the terms, covenants or conditions of this
Agreement, the prevailing party shall, in addition to all other remedies and
relief that may be available pursuant to this Agreement or applicable law,
recover his or its reasonable attorneys’ fees and costs as shall be determined
and awarded by an arbitrator or court, as the case may be.

Section 15. Headings. Numbers and titles to paragraphs
hereof are for information purposes only and, where inconsistent with the text,
are to be disregarded.

Section 16. Severability – General. If any provision of
this Agreement or the application of any such provision to any person or
circumstance shall be held invalid, illegal or unenforceable in any respect by a
court of competent jurisdiction, such invalidity, illegality or unenforceability
shall not affect any other provision hereof

Section 17. Counterparts. This Agreement may be executed
in any number of counterparts, each of which when so executed and delivered
shall be deemed to be an original and all of which together shall be deemed to
be one and the same agreement.

     IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be executed on the date first set
forth above.

Ecologic Transportation, Inc. 

Page 10 of 11

	By: 	 	 
	 	 	 
	Printed: 	 	 
	 	 	 
	Title: 	 	 
	 	 	 
	Date: 	 	 
	  	 	 
	 	 	 
	William Plamondon 	 
	  	 	 
	  	 	 
	By: 	 /s/ William N. Plamondon	 
	 	 	 
	Printed: 	 William N. Plamondon 	 
	 	 	 
	Date:	  January 30, 2009 	 

Page 11 of 11

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