Document:

Exhibit 10.1

    CONSULTING
      AGREEMENT

    

    THIS
      CONSULTING AGREEMENT (this “Agreement”)
      is
      made and entered into as of January 26, 2006, by and between M-Wave, Inc.,
      a
      Delaware corporation (the “Company”)
      and
      Ocean Park Advisors, LLC, a California limited liability company (“Consultant”).

    

    1.   Consulting
      Services.
      The
      Company hereby engages Consultant to do the following (the “Engagement”):
      

    

    (a)   Consultant
      shall prepare accounting information and financial statements for Jayco
      Ventures, Inc. (“Jayco”)
      for
      the 2004 fiscal year (the “Accounting
      Services”)
      

    

    (b)   Company
      shall engage an auditing firm reasonably acceptable to Consultant to audit
      the
      financial information prepared by Consultant (the “Audit
      Services”);
      Consultant shall co-ordinate and oversee the performance of the Audit Services
      by such auditing firm; and

    

    (c)   Consultant
      shall provide corporate financial advisory services to the Company (the
“Advisory
      Services”).
      The
      Advisory Services will be provided primarily by Brian Weiss and Bruce Comer,
      professionals of Consultant, and will not exceed a total of sixteen (16) hours
      of work in any week.

    

    The
      Company has engaged McKennon, Wilson & Morgan, LLP (“McKennon”)
      to
      perform the Audit Services. For avoidance of doubt, McKennon’s audit fees
      (excluding, in each case, out-of-pocket expenses) will be paid by the Consultant
      out of the Consulting Fee (as defined below).

    

    2.   Term.
      Consultant shall commence the Engagement on the date hereof. Consultant's
      obligation to provide Advisory Services shall terminate on March 31, 2006.
      Consultant's obligation to perform the Accounting Services and to coordinate
      and
      oversee the Audit Services shall terminate upon the completion of the Accounting
      Services and Audit Services as determined by Consultant or the termination
      thereof as provided below. If during the course of the Engagement Consultant
      determines, in its sole discretion, that either (i) it is not feasible to
      complete the Accounting Services or the Audit Services for an amount equal
      to or
      less than the Consulting Fee as a result of any significant accounting or
      compliance issues affecting Jayco that are discovered by Consultant after the
      date hereof, or (ii) it is not possible to complete the Accounting Services
      or
      the Audit Services for any reason, then in either case, Consultant may terminate
      the Accounting Services or the Audit Services or both. In such event, Consultant
      will promptly notify the Company of the reasons for such termination. If the
      Accounting Services or the Audit Services are terminated because of the
      inadequacy of the Consulting Fee to fund the performance of such services,
      then
      the Company and Consultant agree to confer regarding a revised budget for the
      performance of such services; provided that neither the Company nor Consultant
      shall have any obligation to agree on such a budget and Consultant shall have
      no
      obligation to continue the Engagement. The Company acknowledges that there
      can
      be no assurances that the Accounting Services or the Audit Services can be
      completed. The Company agrees that the Accounting Services will be provided
      on a
      commercial best-efforts basis only. Furthermore, the Company agrees that
      Consultant shall have no responsibility for the outcome of the Services or
      the
      performance of McKennon.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     3.   Independent
      Consultant Relationship.
      All
      services rendered hereunder by Consultant shall be rendered as an independent
      contractor. Consultant shall not have authority to (i) act as agent of the
      Company or (ii) commit the Company to any course of action. Consultant shall
      not
      be entitled to participate in any employee benefit plans or other benefits
      available to employees of the Company.

     

     4.    Non
      Solicitation.
      Neither
      party will, during the term hereof and for a period of two years thereafter,
      solicit or hire (either as an employee, consultant or otherwise) any person
      who
      is an employee of, advisor or consultant to, or affiliated with, the other
      party
      and was involved in providing services under this Agreement. 

     

     5.   Conflict
      of Interest Prohibited.
      It is
      understood that, during the term of this Agreement, Consultant (and its
      employees, advisor and consultants) may consult, work or serve in any capacity
      for another person or entity so long as such activities do not materially
      interfere with Consultant’s obligation hereunder.

    

     6.   Payment.
      In
      consideration for the Engagement, Consultant shall be paid $150,000 (the
“Consulting
      Fee”).
      The
      Consulting Fee shall be paid as follows: (i) $75,000 upon execution of this
      Agreement; (ii) $37,500 thirty (30) days after the date hereof, and (iii)
      $37,500 sixty (60) days from the date hereof. The Company agrees that the
      Consulting Fee will be fully-earned and payable when due as provided above,
      irrespective of the progress or outcome of the Engagement. In no event shall
      Consultant be required to refund any portion of any consideration received
      from
      the Company. 

    

     7.   Expenses.
      Consultant shall be entitled to reimbursement of reasonable out-of-pocket
      expenses directly associated with the Engagement. It is expected that Consultant
      and McKennon will travel to Florida to perform the services contemplated hereby.
      Consultant and McKennon will be reimbursed for travel expenses including hotel,
      meals, telecommunications, and airfare. Consultant shall not and shall not
      permit McKennon to incur aggregate expenses in excess of $7,500 without prior
      written approval of the Company. Consultant will present detailed receipts
      of
      all expenses to the Company. 

    

    8.    Indemnification.
      The
      Company agrees to indemnify and hold harmless Consultant, its affiliated
      entities, members, managers, directors, officers, employees, agents and any
      other person or entity that directly or indirectly controls or is controlled
      by
      or is under common control with any person referred to above from and against
      any and all losses, claims, damages, obligations, penalties, judgments, awards,
      liabilities, costs, expenses and disbursements (including without limitation
      reasonable fees and disbursements of counsel), and any and all actions, suits,
      proceedings, and investigations in respect thereof, directly or indirectly
      caused by, relating to, based upon, arising out of, or in connection with any
      transactions or services contemplated by, referred to in or in any manner
      otherwise arising out of this Agreement and/or any act or omission of Consultant
      under or pursuant to this Agreement; provided, however, such indemnity agreement
      shall not apply to any portion of any such loss, claim, damage, obligation,
      penalty, judgment, award, liability, cost expense or disbursement to the extent
      it resulted primarily and directly from the gross negligence or willful
      misconduct of Consultant.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    9.   Arbitration,
      Choice of Law.
      This
      Agreement shall be construed and enforced in accordance with, and governed
      by,
      the laws of the State of California without regard to principles of conflict
      of
      laws. In the event of a dispute, the parties agree to binding arbitration in
      Los
      Angeles, California under the Rules for Commercial Arbitration of the American
      Arbitration Association.

    

    10.         
      Severability.
      If any
      provision of this Agreement or the application thereof is held invalid or
      unenforceable, then the balance of the Agreement shall be enforceable in
      accordance with its terms.

    

    11.        
      Entire
      Agreement.
      This
      Agreement constitutes and contains the entire agreement and final understanding
      between the parties covering the services provided by the Consultant. Any
      representation, promise or agreement not specifically included in this Agreement
      shall not be binding upon or enforceable against either party. 

    

    12.         
      Amendment.
      This
      Agreement may be modified only with a written instrument duly executed by each
      of the parties hereto.

    

    13.        
      No
      Assignment.
      Consultant shall not assign either in whole or in part any of Consultant’s
      duties or responsibilities hereunder without the written consent of the Company,
      and any attempt of assignment, transfer or delegation without such consent
      shall
      be void.

    

    14.         
      Headings.
      Headings used in this Agreement are used for convenience only and are not to
      be
      considered in construing or interpreting this Agreement.

    

    15.         
      Counterparts.
      This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument. Delivery of an executed counterpart of this Agreement by
      telefacsimile or other electronic means shall be equally as effective as
      delivery of an original executed counterpart of this Agreement.

    

    [Signature
      Page Follows]

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    In
      witness whereof, the parties hereto have executed this Agreement as of the
      date
      first above written.

     

    
      	
              M-WAVE,
                INC.

            
	 	 
	
              By:

            	
               

            
	
              Name: 

            
	
              Title:

            
	 	 
	
              475
                Industrial Drive

            
	
              West
                Chicago, IL 60185

            
	
              Attention:

            
	
              Facsimile:
                

            
	 	 
	 	 
	
              OCEAN
                PARK ADVISORS, LLC

            
	 	 
	
              By:

            	
               

            
	
              Name: 

            
	
              Title:

            
	 
	
              5710
                Crescent Park East, Suite 334

            
	
              Plaza
                Vista, CA 90094

            
	
              Attention:
                Managing Director

            
	
              Facsimile:
                310-745-0855

            

    

     

     

     

    4Exhibit 10.2

    
      

    

    

    
      	 	11100Santa
              Monica Blvd., Suite 800
	 	Los
              Angeles, CA 90025
	January
              27, 2006	Tel.
              310-966-1444
	 	Fax:
              310-388-0147
	 	www.brileyco.com

    

     

    Mr.
      Bruce
      Nelson

    Special
      Committee of the Board of Directors 

    M-Wave,
      Inc.

    475
      Industrial Drive West

    Chicago,
      IL 60185

    

    

    Dear
      Bruce:

    

    This
      letter, when properly signed, will constitute an engagement agreement
      (“Agreement” hereinafter) between B. Riley & Co., a Delaware corporation
      (“B. Riley” hereinafter) and M-Wave, Inc. (the “Company” hereinafter) upon the
      terms and conditions set forth below.

    

    1.    Background. We
      understand that the Company is contemplating a merger with an entity or group
      of
      entities in the ethanol industry (the “Merger Party”). Such transaction and all
      related transactions are referred to collectively herein as the
      (“Transaction”).

    

    2.    Opinion.
      We
      understand that the Special Committee of the Board of Directors of the Company
      (the “Board”) has requested that B. Riley render an opinion (the “Opinion”
hereinafter) as to the fairness, from a financial point of view, of the
      Transaction. The Opinion will be delivered in writing. The Opinion shall not
      address the Company’s underlying business decision to effect the
      Transaction.

    

    It
      is
      contemplated that the Opinion will include, in addition to any other matters
      that B. Riley in its sole discretion deems appropriate, a description of the
      principal materials that B. Riley has reviewed and upon which B. Riley is
      relying and the principal assumptions and qualifications upon which B. Riley
      is
      relying. B. Riley shall be responsible only for conclusions or opinions set
      forth in its written Opinion.

    

    Any
      summary of, or reference to, the Opinion, any verbal presentation with respect
      thereto, or other references to B. Riley in connection with the Transaction,
      will in each instance be subject to B. Riley’s prior review and written
      approval, which will not be unreasonably be withheld. This Opinion is for the
      express and exclusive use of only the Company, its Board, the Special Committee
      of the Board and shareholders. Neither B. Riley’s verbal conclusions nor the
      Opinion will be used for any purpose other than in connection with the
      Transaction. Notwithstanding the foregoing, B. Riley consents to a description
      of and the inclusion of the text of its written Opinion in (i) any filing
      required to be made by the Company with the Securities and Exchange Commission
      in connection with the Transaction and in materials delivered to the Company’s
      shareholders, and (ii) in response to any subpoena, court order or similar
      legal
      demand in connection with the defense of any lawsuit relating to the
      Transaction.

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    In
      connection with the Opinion, we will make such reviews, analyses and inquiries
      as we deem necessary and appropriate under the circumstances. Among other
      things, we will meet with certain senior management of the Company and the
      Merger Party, visit certain facilities and business offices of the Company
      and
      the Merger Party, review certain of the Company’s and the Merger Party’s
      historical financial statements, review certain other documents, including
      any
      SEC filings of the Company, review forecasts and projections prepared by the
      Company’s and the Merger Party’s management and/or their respective advisors,
      review publicly available data about certain comparable companies and certain
      other transactions we deem relevant.

    

    3.    Information.
      Each
      signatory hereto recognizes and confirms that in rendering services hereunder,
      B. Riley has been and will be using and relying on and assuming the accuracy
      of,
      without independent verification, data, materials and other information
      (including, without limitation, the financial forecasts and projections), with
      respect to the Company and the Merger Party, furnished to B. Riley by or on
      behalf of the Company and the Merger Party and its agents, counsel, employees
      and representatives (the “Information”).

    

    B.
      Riley
      does not assume responsibility for the accuracy and completeness of the
      Information, including, but not limited to, the disclosure materials related
      to
      the Transaction, and B. Riley shall not be obligated to conduct any independent
      study or investigation as to the accuracy or completeness of the
      Information.

    

    The
      Company agrees to furnish to B. Riley complete copies of all relevant documents
      with respect to the Transaction, prior to the consummation of the Transaction,
      filed with or submitted to any regulatory agency, and all such other data,
      material and other information as B. Riley may reasonably request. The Company
      will furnish to B. Riley, concurrently with their submission to others, all
      substantive drafts of and a copy of the final disclosure materials and financing
      and other documents related to the Transaction, and will keep B. Riley apprised
      of changes in the terms of the Transaction on a timely basis as they are decided
      upon.

    

    4.    Fees. As
      compensation for the services rendered by B. Riley hereunder, the Company shall
      pay B. Riley a fee of $75,000 and expenses as follows:

    

    
      	 	
              (a)

            	
              A
                fee of $25,000 payable upon execution of this retainer agreement;
                

            

    

    

    
      	 	
              (b)

            	
              An
                initiation fee of $25,000 when the Board formally requests the opinion
                to
                be rendered;

            

    

    

    
      	 	
              (c)

            	
              A
                fee of $25,000 when B. Riley delivers its final written opinion to
                the
                Special Committee; and

            

    

    

    
      	 	
              (c)

            	
              Out
                of pocket expenses, not to exceed $10,000 without prior Company approval
                (including, but not limited to, the fees and expenses of B. Riley’s legal
                counsel) incurred in connection with this Agreement and the
                Opinion.

            

    

    

    No
      portion of our fee is contingent upon the conclusions reached in the Opinion
      All
      fees paid are non-refundable.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    If
      B.
      Riley is requested to expand its Opinion to cover any areas beyond the scope
      set
      forth in Section 2, such expanded scope of engagement and the fee to be paid
      to
      B. Riley shall be agreed upon prior to B. Riley undertaking such expanded
      engagement. 

    

    5.    Term.
      This
      Agreement shall commence upon the signing of this Agreement and remain in effect
      for a period of twelve months. B. Riley agrees to render the Opinion within
      30
      days of the Board making a formal request for the Opinion. 

    

    

    6.    Indemnification,
      Contribution, and Release.
      The
      Company agrees to provide indemnification to B. Riley and certain other parties,
      in accordance with Attachment 1, which is attached hereto and incorporated
      herein by this reference.

    

    

    7.    Other
      Services.
      If B.
      Riley is called upon to render services, give testimony, produce documents,
      answer depositions or interrogatories, or otherwise become involved in
      connection with any administrative or judicial proceedings, investigations
      or
      inquiries relating to the Transaction, the Company will pay, in addition to
      the
      other fees hereunder, for the time reasonably required to be expended by any
      officers or employees of B. Riley, at their standard hourly rates as then in
      effect, plus reasonable out-of-pocket expenses relating thereto, and any and
      all
      reasonable legal fees and expenses incurred by B. Riley in so appearing or
      preparing for appearance.

    

    8.    Company
      Obligation. 
      The
      obligations of B. Riley are solely company obligations, and no officer,
      director, employee, agent, shareholder, member, owner or controlling person
      shall be subjected to any personal liability whatsoever to any person, nor
      will
      any such claim be asserted by or on behalf of any other party to this Agreement
      or any person relying on the Opinion.

    

    9.    Attorney
      Fees; Choice of Law.
      If any
      party to this Agreement brings an action directly or indirectly based on this
      Agreement or the Opinion, the prevailing party shall be entitled to reasonable
      expenses therefor, including, but not limited to, attorney’s fees and court
      costs. The Agreement shall be governed by the internal laws of the State of
      California, without regard to conflict of laws principles.

    

    

    10.     Other
      Issues. This
      Agreement shall not be assigned by B. Riley without the Company’s prior written
      consent. The invalidity or unenforceability of any provision of this Agreement
      shall not affect the validity or enforceability of any other provision of this
      Agreement, which shall remain in full force and effect pursuant to the terms
      hereof. This Agreement incorporates the entire understanding of the parties
      and
      supersedes all previous agreements or understandings, whether written or oral,
      and may be modified only by an express writing executed by all parties
      hereto.

    

    11.    Confidentiality.
      B.
      Riley agrees that the “Confidential Information” (as defined below) will not be
      used by B. Riley for any purpose except in connection with rendering the Opinion
      pursuant to the terms hereof and that such Confidential Information will be
      kept
      confidential by B. Riley and its agents; provided, however, that (1) any such
      Confidential Information may be disclosed to B. Riley’s directors, officers,
      employees and representatives who need to know such information for the purpose
      described in this Agreement (it being understood that such directors, officers,
      employees and representatives shall be informed by B. Riley of the confidential
      nature of such information and shall be requested by B. Riley to treat such
      information confidentially), (2) any disclosure of such Confidential Information
      may be made to which the Company consents in writing, and (3) any of such
      Confidential Information may be disclosed if B. Riley is required to disclose
      it
      by legal or administrative process or for other appropriate legal reasons.
      The
      term “Confidential Information” means the existence and subject matter of this
      letter agreement, any information related to the Company’s consideration of the
      Transaction and all Information except Information that (i) is or becomes
      publicly available other than as a result of disclosure by B. Riley or its
      agents, representatives or employees, (ii) was known by B. Riley prior to its
      disclosure to B. Riley by the Company, or (iii) is or becomes available to
      B.
      Riley on a non-confidential basis from a source other than the Company or its
      agents which is not prohibited from disclosing such Information by a legal,
      contractual or fiduciary obligation to the Company.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    12.    Survival
      of Certain Provisions.
      The
      provisions of Section 2 entitled “Opinion,” Section 4 entitled “Fees,” Section 5
      entitled “Indemnification; Contribution; and Release,” Section 6 entitled “Other
      Services,” Section 7 entitled “Company Obligation,” Section 8 entitled “Attorney
      Fees; Choice of Law,” Section 10 entitled “Confidentiality” and this Section
      shall survive any termination of this Agreement.

    

    We
      trust
      that the foregoing terms and provisions are agreeable to you, and request that
      you sign and return the enclosed copy of this Agreement to B.
      Riley.

    

    Sincerely,

    

    B.
      Riley

    

     

    
      	
              By:   
                

            	 	 
	 	 	 
	 	
              Dennis
                McCarthy

            	 
	 	
              Managing
                Director 

            	 

    

    

    

    The
      foregoing has been read, understood and approved, and the undersigned retains
      

    B.
      Riley
      upon the foregoing terms.

    

    

    

    

    
      	
              Dated:    
                

            	 	 

    

    

    M-Wave,
      Inc.

    

    

    
      	
              By:  
                

            	 	 
	 	 	 
	 	
              Bruce
                Nelson

            	 
	 	
              Special
                Committee of the Board of Directors 

            	 

    

    

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

    “ATTACHMENT
      1”

    

    INDEMNIFICATION,
      CONTRIBUTION AND RELEASE

    

    

    B.
      Riley
& Co.

    11100
      Santa Monica Blvd. 

    Suite
      800

    Los
      Angeles, CA 90025

    

    

    (a)   If
      B.
      Riley or any employee, agent, officer, director, attorney, shareholder or any
      person who controls B. Riley (any or all of the foregoing, hereinafter an
“Indemnified Person”) becomes involved in any capacity in any legal or
      administrative action, suit, proceeding, investigation or inquiry, regardless
      of
      the legal theory or the allegations made in connection therewith, directly
      or
      indirectly in connection with, arising out of, based upon, or in any way related
      to (i) this Agreement; (ii) the services that are the subject of this Agreement;
      (iii) any document or information, whether verbal or written, referred to herein
      or supplied to B. Riley; (iv) the breach of the representations, warranties
      or
      covenants by the Company given pursuant hereto; (v) B. Riley’s involvement in
      the Transaction or any part thereof; (vi) any filings made by or on behalf
      of
      any party with any governmental agency in connection with the Transaction;
      or
      (vii) the Transaction, the Company will on demand, advance or pay promptly,
      on
      behalf of each Indemnified Person, reasonable attorneys’ fees and other expenses
      and disbursements (including, but not limited to, the cost of any investigation
      and related preparation) as they are incurred by the Indemnified Person. The
      Company also indemnifies and holds harmless each Indemnified Person against
      any
      and all losses, claims, damages, liabilities, costs and expenses (including,
      but
      not limited to, reasonable attorneys’ fees, disbursements and court costs, and
      costs of investigation and preparation) to which such Indemnified Person may
      become subject in connection with any such matter.

    

    (b)   If
      for
      any reason the foregoing indemnification is determined to be unavailable to
      any
      Indemnified Person or insufficient fully to indemnify any such person, then
      the
      Company will contribute to the amount paid or payable by such person as a result
      of any such loss, claim, damage, liability, cost or expense, in such proportion
      as is appropriate to reflect not only the relationship between B. Riley’s fee on
      the one hand and the aggregate value of the Transaction on the other hand,
      but
      also the relative fault of the Indemnified Person, as well as any other relevant
      equitable considerations.

    

    (c)   The
      Company’s obligations under this Section shall be in addition to any liability
      that the Company or any other person may otherwise have to B. Riley or any
      Indemnified Person.

    

    (d)   The
      indemnification obligations hereunder shall not apply to any loss, claim,
      damage, liability or expense that is finally judicially determined on the merits
      to have been caused primarily by the gross negligence, bad faith, willful
      misfeasance, or reckless disregard of its obligations or duties on the part
      of
      B. Riley or such Indemnified Person. In the event of such final judicial
      determination, the Company shall be entitled to recover from the Indemnified
      Person or B. Riley the costs and expenses paid on behalf of such Indemnified
      Person and/or B. Riley pursuant to this indemnification
      obligation.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (e)   The
      provisions of this Attachment shall be enforceable by each Indemnified Person
      and such person’s heirs, representatives and successors, and shall survive any
      termination of this Agreement.

    

    (f)   The
      Company agrees that it will not settle, compromise or discharge any suit, claim,
      litigation, threatened litigation or threatened claim arising out of, based
      upon, or in any way related to the Transaction unless and until the Company
      has
      obtained a written agreement, approved by B. Riley (which shall not be
      unreasonably withheld) and executed by each party to such proposed settlement,
      compromise or discharge, releasing B. Riley from any and all liability,
      provided, however that the Company may settle, compromise or discharge any
      suit,
      claim, litigation, threatened litigation or threatened claim if the Company
      pays
      all expenses and costs related thereto.

     

    6

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