dmgsettlement.htm


    
      
         


      

      
         


        
          

        

      

      
         


      

    


    SETTLEMENT
AND RELEASE AGREEMENT

    This
Settlement and Release Agreement, by and between Ecology Coatings, Inc. (“ECOC”)
and DMG Advisors, LLC, Kirk Blosch and Jeff Holmes (DMG Advisors, LLC, Kirk
Blosch and Jeff Holmes collectively referred to as “Undersigned”), is effective
July 15, 2009.

     

    
      	
              1.  

            	
              In
      exchange for the following:

            


    

    
      	
              ·  

            	
              The
      parties agree to terminate their Consulting Agreement dated July 26, 2007
      (“Initial Consulting Agreement”).

            


    

    
      	
              ·  

            	
              ECOC
      currently owes Undersigned $200,000 for services in connection with the
      Initial Consulting Agreement.  The parties agree to reduce the
      obligation to $100,000 which will be satisfied in full by ECOC’s issuance
      of 500,000 shares to Undersigned.

            


    

    
      	
              ·  

            	
              The
      parties will enter into a new consulting agreement which will have a term
      of 6 months and payment by ECOC of 25,000 restricted shares of ECOC stock
      per month to Undersigned.

            


    

    
      	
              ·  

            	
              The
      Undersigned shall not use any of their shares of ECOC stock for short
      selling purposes.

            


    

     

    Undersigned
and Ecology Coatings, Inc., its directors, officers,
employees,  agents and affiliates, including Equity 11, Ltd. (“ECOC”)
each mutually forever release, discharge and indemnify each other from any and
all claims,
demands,  actions,  causes  of  action  and  any  other  rights
which either may have against the other, based upon or arising out of the
Initial Consulting Agreement entered into by and between the Undersigned and
ECOC.  Undersigned understands and agrees that the consideration as
specified herein represents the total amount of money required under this
Agreement to be paid on behalf of ECOC and that no further payments are
necessary or required.

     

    2. Undersigned acknowledges and agrees
this agreement constitutes the entire agreement between Undersigned and ECOC
with regard to the matter set forth herein and shall be binding upon and inure
to the benefit of the executors, administrators, personal representatives,
heirs, successors and assigns of each.

     

     

    
      	 
      	
              DMG
      ADVISORS, LLC, UNDERSIGNED

            	 
      	
              ECOLOGY
      COATINGS, INC.

            
	 
      	 
      	 
      	 
      
	
              By:

            	
              /s/
      Jeff Holmes

            	
              By:

            	
              /s/
      Robert G. Crockett

            
	 
      	
              Jeff
      Holmes

            	 
      	
              Robert
      G. Crockett

            
	 
      	 
      	 
      	 
      
	
              Its:

            	
              Manager

            	
              Its:

            	
              CEO

            
	 
      	 
      	 
      	 
      
	 
      	
              /s/
      Kirk Blosch

            	 
      	 
      
	 
      	
              Kirk
      Blosch, Individually, UNDERSINGED

            	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
              /s/
      Jeff Holmes

            	 
      	 
      
	 
      	
              Jeff
      Holmes, Individually, UNDERSINGED