Turbine Truck Engines, Inc.

(Exact name of small business issuer as specified in its charter)

Nevada

333-109118

59-3691650

(State or other jurisdiction
of Incorporation)

(Commission

File Number)

(IRS Employer

Identification Number)

10.1

Consulting Services Agreement, dated June 3, 2015

Turbine Truck Engines, Inc.

Chris David

President

(a)

Engagement. The Company retains the Consultant to provide, and the Consultant shall provide, the services described in Exhibit A (the “Services”).

(b)

Services. Without limiting the scope of Services described in Exhibit A, the Consultant shall:

(i)

perform the Services set forth in Exhibit A. However, if a conflict exists between this agreement and any term in Exhibit A, the terms in this agreement will control;

(ii)

devote as much productive time, energy, and ability to the performance of its duties under this agreement as may be necessary to provide the required Services in a timely and productive manner;

(iii)

perform the Services in a safe, good, and workmanlike manner by fully trained, skilled, competent, and experienced personnel using at all times adequate equipment in good working order;

(iv)

communicate with the Company about progress the Consultant has made in performing the Services;

(v)

supply all tools, equipment, and supplies required to perform the Services, except if the Consultant’s work must be performed on or with the Company’s equipment;

(vi)

ensure that all materials and equipment furnished to its personnel is of good and merchantable quality, unless otherwise agreed by the Company;

(vii)

provide services (including the Services) and end products that are satisfactory and acceptable to the Company and free of defects;

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(c)

Legal Compliance. The Consultant shall perform the Services in accordance with standards prevailing in the Company’s industry, and in accordance with applicable laws, rules, or regulations. The Consultant shall obtain all permits or permissions required to comply with those standards, laws, rules, or regulations.

(d)

Company’s Obligations. The Company shall make timely payments of amounts earned by the Consultant under this agreement and notify the Consultant of any changes to its procedures affecting the Consultant’s obligations under this agreement at least 30 days before implementing those changes.

(a)

Term. This agreement will become effective as described in section 21. Unless it is terminated earlier in accordance with subsection 2(b), this agreement will continue until the Services have been satisfactorily completed and the Consultant has been paid in full for those Services (the “Term”). However, this agreement may not remain effective for more than 6 months.

(b)

Termination. This agreement may be terminated:

(i)

by either party on provision of 30 days’ written notice to the other party, with or without cause;

(ii)

by either party for a material breach of any provision of this agreement by the other party, if the other party’s material breach is not cured within 15 days of receipt of written notice of the breach; or

(iii)

by the Company at any time and without prior notice, if the Consultant fails or refuses to comply with the written policies or reasonable directives of the Company; or

(iv)

if Consultant competes in any way against company; or

(v)

if Consultant markets to company’s customers; or

(vi)

automatically, on the death of the Consultant.

(c)

Effect of Termination. After the termination of this agreement for any reason, the Company shall promptly pay the Consultant for Services rendered before the effective date of the termination. No other compensation, of any nature or type, will be payable after the termination of this agreement.

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(a)

Terms and Conditions. The Company shall pay the Consultant in accordance with Exhibit A.

(b)

No Payments in Certain Circumstances. No payment will be payable to the Consultant under any of the following circumstances:

(i)

if prohibited under applicable government law, regulation, or policy;

(ii)

if the Consultant did not directly perform or complete the Services described in Exhibit A;

(c)

No Other Compensation. The compensation set out above and in Exhibit A will be the Consultant’s sole compensation under this agreement.

(d)

Expenses. Any ordinary and necessary expenses incurred by the Consultant or its staff in the performance of this agreement will be the Consultant’s sole responsibility.

(e)

Taxes. The Consultant is solely responsible for the payment of all income, social security, employment-related, or other taxes incurred as a result of the performance of the Services by the Consultant under this agreement, and for all obligations, reports, and timely notifications relating to those taxes. The Company has no obligation to pay or withhold any sums for those taxes.

(f)

Other Benefits. The Consultant has no claim against the Company under this agreement or otherwise for vacation pay, sick leave, retirement benefits, social security, worker’s compensation, health or disability benefits, unemployment insurance benefits, or employee benefits of any kind.

(a)

Independent Contractor Status.

(i)

The relationship of the parties under this agreement is one of independent contractors, and no joint venture, partnership, agency, employer-employee, or similar relationship is created in or by this agreement. Neither party may assume or create obligations on the other party’s behalf, nor may neither party take any action that creates the appearance of such authority.

(ii)

The Consultant has the sole right to control and direct the means, details, manner, and method by which the Services will be performed, and the right to perform the Services at any time, place, or location. The Consultant or the Consultant’s staff shall perform the Services, and the Company is not required to hire, supervise, or pay any assistants to help the Consultant perform those Services. The Consultant shall provide insurance coverage for itself and its staff.

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(b)

Inventions Retained and Licensed. Attached as Exhibit B to this agreement is a list of all intellectual property that the Consultant made before its agreement with the Company (the “Prior Inventions”) that belong to the Consultant, that relate to the Company’s proposed business, products, or research and development, and that are not assigned to the Company under this agreement.

(c)

If no list is attached, the Consultant represents that there are no Prior Inventions. If disclosure of a Prior Invention would cause the Consultant to violate an existing confidentiality agreement, the Consultant may not list the Prior Invention in Exhibit B but shall instead provide the name of the invention, a list of the party or parties to which it belongs, and an explanation of why full disclosure was not given. A space is provided in Exhibit B for this purpose. If in the course of providing services to the Company, the Consultant incorporates into a Company product, process, or machine a Prior Invention owned by the Consultant or in which the Consultant has an interest, the Company will be granted and have a nonexclusive, royalty-free, irrevocable, perpetual, worldwide license to make, have made, modify, use, and sell that Prior Invention as part of or in connection with that product, process, or machine.

(d)

Company Inventions. The Consultant has no right or interest in any work or product resulting from the Services the Consultant performs for the Company, or any of the documents, reports, or other materials the Consultant creates in connection with those Services (collectively, the “Company Inventions”), and has no right to or interest in any copyright to the Company Inventions. The Company Inventions have been specially commissioned or ordered by the Company as “works made-for-hire,” as that term is defined in the United States Copyright Act, and the Company is therefore the author and the owner of all copyrights in the Company Inventions.

(e)

Disclosure of Company Inventions. The Consultant shall promptly disclose in writing to the Company all Company Inventions that the Consultant has authored, made, conceived, or first actually reduced to practice, alone or jointly with others.

(f)

Assignment of Company Inventions. If the Company Inventions or any parts of those are deemed not to have been works made-for-hire, the Consultant hereby assigns to the Company all interest the Consultant may have in the Company Inventions, including all copyrights, publishing rights, rights to use, reproduce, and otherwise exploit the Company Inventions in all formats or media and all channels, whether now known or created in the future.

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(g)

Patent and Copyright Registrations. The Consultant shall assist the Company or its designee, at the Company’s expense, to secure the Company’s rights in the Company Inventions and any copyrights, patents, mask work rights, or other intellectual property rights relating to the Company Inventions in all countries, including by disclosing to the Company all pertinent information and data with respect to those, by signing all applications, specifications, oaths, assignments, and other instruments that the Company deems necessary to apply for and obtain those rights and to assign and convey to the Company, its successors, assigns, and nominees the exclusive interest in the Company Inventions, and any copyrights, patents, mask work rights, or other intellectual property rights relating to those. When it is in the Consultant’s power to do so, the Consultant shall sign or cause to be signed these instruments or papers after the termination or expiration of this agreement. If the Consultant provides assistance after the termination or expiration of this agreement at the Company’s request, the Company shall pay the Consultant a reasonable rate for any time spent. If because of the Consultant’s mental or physical incapacity or for any other reason the Company cannot secure a signature to apply for or pursue any application of any United States or foreign patents or copyright registrations covering Company Inventions or original works of authorship assigned to the Company, the Consultant hereby irrevocably designates and appoints the Company and its duly authorized officers and agents as the Consultant’s agents and attorneys in fact, to act for and on behalf of the Consultant to sign and file those applications and to do all other lawfully permitted acts to further the prosecution and issuance of patent or copyright registrations with the same legal force and effect as if they had been signed by the Consultant.

(a)

Confidentiality. During the Term, the Consultant may have access to or receive certain information of or about the Company that the Company designates as confidential or that, under the circumstances surrounding disclosure, ought to be treated as confidential by the Consultant (“Confidential Information”). Confidential Information includes information relating to the Company or its current or proposed business, financial statements, budgets and projections, customer identifying information, potential and intended customers, employers, products, computer programs, specifications, manuals, software, analyses, strategies, marketing plans, business plans, and other confidential information, provided orally, in writing, by drawings, or by any other media. The Consultant will treat the Confidential Information as confidential and will not disclose it to any third party or use it for any purpose but to fulfill its obligations in this agreement. In addition, the Consultant shall use due care and diligence to prevent the unauthorized use or disclosure of such information.

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(b)

Exceptions. The obligations and restrictions in subsection (a) do not apply to that part of the Confidential Information the Consultant demonstrates:

(i)

was or becomes generally publically available other than as a result of a disclosure by the Consultant in violation of this agreement;

(ii)

was or becomes available to the Consultant on a non-confidential basis before its disclosure to the Consultant by the Company, but only if:

A.

the source of such information is not bound by a confidentiality agreement with the Company or is not otherwise prohibited from transmitting the information to the Consultant by a contractual, legal, fiduciary, or other obligation; and

B.

the Consultant provides the Company with written notice of its prior possession either (I) before the effective date of this agreement or (II) if the Consultant later becomes aware (through disclosure to the Consultant) of any aspect of the Confidential Information as to which the Consultant had prior possession, promptly on the Consultant so becoming aware;

(iii)

is legally compelled (by oral questions, interrogatories, requests for information or documents, subpoena, civil or criminal investigative demand, or similar processes), or is required by a regulatory body, to be disclosed. However, the Consultant shall:

A.

provide the Company with prompt notice of these requests or requirements before making a disclosure so that the Company may seek an appropriate protective order or other appropriate remedy; and

B.

provide reasonable assistance to the Company in obtaining any protective order.

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(iv)

was developed by the Consultant independently without breach of this agreement.

(c)

Obligation to Maintain Confidentiality.

(i)

Confidentiality. At all times during its work with the Company, the Consultant shall hold in strictest confidence, and not use, except for the benefit of the Company, or to disclose to any person, firm, or corporation without the prior written authorization of the Board of Directors of the Company, any of the Company’s Confidential Information.

(ii)

Term. The Consultant shall maintain the confidentiality and security of the Confidential Information until such time as all Confidential Information disclosed under this agreement becomes publicly known and is made generally available through no action or inaction of the Consultant. However, to the extent that the Company has disclosed information to the Consultant that constitutes a trade secret under law, the Consultant shall protect that trade secret for as long as the information qualifies as a trade secret.

(d)

Remedy. Money damages may not be a sufficient remedy for any breach of this section by the Consultant and, in addition to all other remedies, the Company may seek (and may be entitled to) as a result of such breach, specific performance and injunctive or other equitable relief as a remedy.

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(a)

Of Company by Consultant. At all times after the effective date of this agreement, the Consultant shall indemnify the Company, its officers, directors, successors and/or assigns (collectively, the “Company Indemnities”) from all damages, liabilities, expenses, claims, or judgments (including interest, penalties, reasonable attorneys’ fees, accounting fees, and expert witness fees) (collectively, the “Claims”) that any the Company may incur and that arise from:

(i)

the Consultant’s gross negligence or willful misconduct arising from the Consultant’s carrying out of its obligations under this agreement;

(ii)

the Consultant’s breach of any of its obligations or representations under this agreement; or

(iii)

the Consultant’s breach of its express representation that it is an independent contractor and in compliance with all applicable laws related to work as an independent contractor. If a regulatory body or court of competent jurisdiction finds that the Consultant is not an independent contractor or is not in compliance with applicable laws related to work as an independent contractor, based on the Consultant’s own actions, the Consultant will assume full responsibility and liability for all taxes, assessments, and penalties imposed against the Consultant or the Company resulting from that contrary interpretation, including taxes, assessments, and penalties that would have been deducted from the Consultant’s earnings if the Consultant had been on the Company’s payroll and employed as a Company employee.

(b)

Of Consultant by Company. At all times after the effective date of this agreement, the Company shall indemnify the Consultant (the “Consultant Indemnities”) from all Claims that the Consultant may incur arising from:

(i)

the Company’s operation of its business;

(ii)

the Company’s breach or alleged breach of, or its failure or alleged failure to perform under, any agreement to which it is a party; or

(iii)

the Company’s breach of any of its obligations or representations under this agreement.

8

(a)

notify the other party of the Force Majeure Event and its impact on performance under this agreement; and

(b)

use reasonable efforts to resolve any issues resulting from the Force Majeure Event and perform its obligations under this agreement.

(a)

Choice of Law. The laws of the state of Oklahoma govern this agreement (without giving effect to its conflicts of law principles).

(b)

Choice of Forum. Both parties consent to the personal jurisdiction of the state and federal courts in United States, Oklahoma.

(c)

Attorneys’ Fees. If either party employs attorneys to enforce any rights arising out of or relating to this agreement, the losing party shall reimburse the prevailing party for its reasonable attorneys’ fees.

(a)

No Assignment. Neither party may assign any of its rights under this agreement, except with the prior written consent of the other party, which consent shall not be unreasonably withheld. All voluntary assignments of rights are limited by this subsection.

(b)

No Delegation. Neither party may delegate any performance under this agreement, except with the prior written consent of the other party, which consent shall not be unreasonably withheld.

(c)

Enforceability of an Assignment or Delegation. If a purported assignment or purported delegation is made in violation of this section 14, it is void.

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(a)

Counterparts. The parties may execute this agreement in any number of counterparts, each of which is an original but all of which constitute one and the same instrument.

(b)

Electronic Signatures. This agreement, agreements ancillary to this agreement, and related documents entered into in connection with this agreement are signed when a party’s signature is delivered by facsimile, email, or other electronic medium. These signatures must be treated in all respects as having the same force and effect as original signatures.

(a)

Writing; Permitted Delivery Methods. Each party giving or making any notice, request, demand, or other communication required or permitted by this agreement shall give that notice in writing and use one of the following types of delivery, each of which is a writing for purposes of this agreement: personal delivery, mail (registered or certified mail, postage prepaid, return-receipt requested), nationally recognized overnight courier (fees prepaid), facsimile, or email.

(b)

Addresses. A party shall address notices under this section 17 to a party at the following addresses:

If to the Company:

If to the Consultant:

Turbine Truck Engines, Inc.

Justin Dean

Attn: Chris David, President

1221 Mockingbird Lane

11120 NE 2^nd Street, Suite 200

Edmond, OK 73034

Bellevue, WA 98004

jdean@sahomacontrolware.com

cdavid@ttengines.com 

(c)

Effectiveness. A notice is effective only if the party giving notice complies with subsections (a) and (b) and if the recipient receives the notice.

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11

CONSULTANT

Date: 6/3/2015

By:

/s/ Justin Dean

Name:

Justin Dean

Title:

Principal Consulting Engineer

TURBINE TRUCK ENGINES, INC.

Date: 6/3/2015

By:

/s/ Chris David

Name:

Chris David

Title:

President

12

A1

CONSULTANT

Date: 6/3/2015

By:

/s/ Justin Dean

Name:

Justin Dean

Title:

Principal Consulting Engineer

TURBINE TRUCK ENGINES, INC.

Date: 6/3/2015

By:

/s/ Chris David

Name:

Chris David

Title:

President

A2

1.

Except as listed in section 2 below, the following is a complete list of all Prior Inventions that were made, conceived, or first reduced to practice by the Consultant, alone or jointly with others, before its agreement with the Company:

Title

Date

Identifying Number or Brief Description

The Consultant has no inventions or improvements to list.

/i/ Justin Dean

(Initials)

I have attached _____ additional sheets to this Exhibit B.

(Initials)

2.

Because of an existing confidentiality agreement and the duties of confidentiality that the Consultant owes to the parties listed below, the Consultant cannot complete the disclosure in section 1 above with respect to the inventions or improvements listed generally below:

Invention or Improvement

Party Names

Relationship

B1