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					Exhibit 10.1

					

					

				

			

			
					
							
								ACQUISITION OF MATERIALS MONITORING TECHNOLOGIES, INC.

										by 

										MATERIAL TECHNOLOGIES, INC.

							

							
								

								

								

								

							

						

				

				

				AGREEMENT AND PLAN OF ACQUISITION

					

					

				

		

		
			          This Agreement and Plan of Acquisition (the “Agreement”) is entered into by and between Materials Monitoring Technologies, Inc., a Florida corporation, (“MMTI”), UTEK CORPORATION, a Delaware corporation, (“UTEK”), and Material Technologies, Inc., a Delaware corporation, (“MTNA”).

				

				          WHEREAS, UTEK owns 100% of the issued and outstanding shares of common stock of MMTI (the “MMTI Shares”);

				

				          WHEREAS, before the Closing Date, MMTI will acquire the license for the fields of use as described in the License Agreement as described and which are attached hereto as part of Exhibit A and made a part of this Agreement (the “License Agreement”) and the rights to develop and market a proprietary technology for the fields of uses specified in the License Agreement (the “Technology”);

				

				          WHEREAS, the parties desire to provide for the terms and conditions upon which MMTI will be acquired by MTNA in a stock-for-stock exchange (the “Acquisition”) in accordance with the respective corporation laws of their state, upon consummation of which the MMTI Shares will be exchanged for common stock of MTNA with terms and conditions as set forth more fully in this Agreement, and such that after the Acquisition all the MMTI Shares will be owned by MTNA; and

				

				          WHEREAS, for federal income tax purposes, it is intended that the Acquisition qualifies within the meaning of Section 368 (a)(1)(B) of the Internal Revenue Code of 1986, as amended (Code).

				

				          NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt, adequacy and sufficiency of which are by this Agreement acknowledged, the parties agree as follows:

			

			

		

		
			
				

				

				ARTICLE 1

						THE STOCK-FOR-STOCK ACQUISITION

				

				          1.01     The Acquisition

						

					                      (a)     Acquisition Agreement.  Subject to the terms and conditions of this Agreement, at the Effective Date, as defined below, the MMTI Shares shall be acquired from UTEK by MTNA in accordance with the respective corporation laws of their state and the provisions of this Agreement and the separate corporate existence of MMTI, as a wholly-owned subsidiary of MTNA, shall continue after the closing.

					

					                      (b)     Effective Date. The Acquisition shall become effective (the “Effective Date”) upon the execution of this Agreement and closing of the transaction.

					

					

					

				

			

		

		
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			          1.02     Exchange of Stock. At the Effective Date, by virtue of the Acquisition, the MMTI Shares shall be exchanged for 37,630,750 unregistered shares of common stock of MTNA, which will be transferred to the following entities:

			

		

		
				
						Shareholder

						
						Number of Common MTNA Shares

					
	
						UTEK Corporation

						
						35,749,213

					
	
						Aware Capital Consultants

						
						1,881,537

					

			

			          1.03     Effect of Acquisition.  Rights in MMTI Cease. At and after the Effective Date, UTEK shall cease to have any rights as a shareholder of MMTI.

			

			          1.04     Closing. Subject to the terms and conditions of this Agreement, the Closing of the Acquisition shall take place August 18, 2006.

			

			          1.05     License Agreement.  MMTI is a party to that certain License Agreement by and between North Carolina A&T State University (“NCAT”) and MMTI entered into in August 2006 (the “License Agreement”). MMTI represents and warrants that, prior to the date of this Agreement, it has:  i) paid, in full, the $79,000 license fee to NCAT under Section 4.01 of the License Agreement, and ii) paid NCAT any and all amounts MMTI is obligated to pay NCAT for “unreimbursed out-of-pocket patent costs incurred,” as set forth in Section 5.01 of the License Agreement.

			

		

		
			ARTICLE 2

					REPRESENTATIONS AND WARRANTIES

					

				

		

		
			          2.01     Representations and Warranties of UTEK and MMTI.  UTEK and MMTI represent and warrant to MTNA that the facts set forth below are true and correct:

				

				                      (a)     Organization. MMTI and UTEK are corporations duly organized, validly existing and in good standing under the laws of their respective states of incorporation, and they have the requisite power and authority to conduct their business and consummate the transactions contemplated by this Agreement. True, correct and complete copies of the articles of incorporation, bylaws and all corporate minutes of MMTI have been provided to MTNA and such documents are presently in effect and have not been amended or modified.

				

				                      (b)     Authorization. The execution of this Agreement and the consummation of the Acquisition and the other transactions contemplated by this Agreement have been duly authorized by the board of directors and shareholders of MMTI and the board of directors of UTEK; no other corporate action by the respective parties is necessary in order to execute, deliver, consummate and perform their respective obligations hereunder; and MMTI and UTEK have all requisite corporate and other authority to execute and deliver this Agreement and consummate the transactions contemplated by this Agreement.

				

				                      (c)     Capitalization.  The authorized capital of MMTI consists of 1,000,000 shares of common stock with a par value $.01 per share. At the date of this Agreement, 1,000 MMTI Shares are issued and outstanding as follows:

				

				All issued and outstanding MMTI Shares are currently owned by UTEK, have been duly and validly issued and are fully paid and non-assessable shares, and have not been issued in violation of any preemptive or other 

			

			

			

		

		
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				rights of any other person or any applicable laws. MMTI is not authorized to issue any preferred stock. All dividends on MMTI Shares which have been declared prior to the date of this Agreement have been paid in full. There are no outstanding options, warrants, commitments, calls or other rights or agreements requiring MMTI to issue any MMTI Shares or securities convertible into MMTI Shares to anyone for any reason whatsoever. None of the MMTI Shares is subject to any change, claim, condition, interest, lien, pledge, option, security interest or other encumbrance or restriction, including any restriction on use, voting, transfer, receipt of income or exercise of any other attribute of ownership.

			

			                      (d)     Binding Effect. The execution, delivery, performance and consummation of this Agreement, the Acquisition and the transactions contemplated by this Agreement will not violate any obligation to which MMTI or UTEK is a party and will not create a default under any such obligation or under any agreement to which MMTI or UTEK is a party.  This Agreement constitutes a legal, valid and binding obligation of MMTI, enforceable in accordance with its terms, except as the enforcement may be limited by bankruptcy, insolvency, moratorium, or similar laws affecting creditor’s rights generally and by the availability of injunctive relief, specific performance or other equitable remedies.

			

			                      (e)     Litigation Relating to this Agreement. There are no suits, actions or proceedings pending or, to the best of MMTI and UTEK’s knowledge, information and belief, threatened, which seek to enjoin the Acquisition or the transactions contemplated by this Agreement or which, if adversely decided, would have a materially adverse effect on the business, results of operations, assets or prospects of MMTI.

			

			                      (f)     No Conflicting Agreements. Neither the execution and delivery of this Agreement nor the fulfillment of or compliance by MMTI or UTEK with the terms or provisions of this Agreement nor all other documents or agreements contemplated by this Agreement and the consummation of the transaction contemplated by this Agreement will result in a breach of the terms, conditions or provisions of, or constitute a default under, or result in a violation of, MMTI or UTEK’s articles of incorporation or bylaws, the Technology, the License Agreement, or any agreement, contract, instrument, order, judgment or decree to which MMTI or UTEK is a party or by which MMTI or UTEK or any of their respective assets is bound, or violate any provision of any applicable law, rule or regulation or any order, decree, writ or injunction of any court or government entity which materially affects their respective assets or businesses.

			

			                      (g)     Consents. No consent from or approval of any court, governmental entity or any other person is necessary in connection with execution and delivery of this Agreement by MMTI and UTEK or performance of the obligations of MMTI and UTEK hereunder or under any other agreement to which MMTI or UTEK is a party; and the consummation of the transactions contemplated by this Agreement will not require the approval of any entity or person in order to prevent the termination of the Technology, the License Agreement, or any other material right, privilege, license or agreement relating to MMTI or its assets or business.

			

			                      (h)     Title to Assets. MMTI has or has agreed to enter into the agreements as listed on Exhibit A attached hereto. These agreements and the assets shown on the balance sheet of attached Exhibit B are the sole assets of MMTI. MMTI has or will by Closing Date have good and marketable title to its assets, free and clear of all liens, claims, charges, mortgages, options, security agreements and other encumbrances of every kind or nature whatsoever.

			

			                      (i)     Intellectual Property

				

			                              (1)     North Carolina Agricultural and Technical State University (NCAT) owns the Technology and has all right, power, authority and ownership and entitlement to file, prosecute and maintain in effect the Patent application with respect to the Inventions listed in Exhibit A hereto.

		
			
				

				

				

				

				

			

			
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				                              (2)     The License Agreement between NCAT and MMTI covering the Inventions is legal, valid, binding and will be enforceable in accordance with its terms as contained in Exhibit A.

				

				                              (3)     Except as otherwise set forth in this Agreement, MTNA acknowledges and understands that MMTI and UTEK make no representations and provide no assurances that the rights to the Technology and Intellectual Property contained in the License Agreement do not, and will not in the future, infringe or otherwise violate the rights of third parties, and

				

				                              (4)     Except as otherwise expressly set forth in this Agreement, MMTI and UTEK make no representations and extend no warranties of any kind, either express or implied, including, but not limited to warranties of merchantability, fitness for a particular purpose, non-infringement and validity of the Intellectual Property.

				

				                      (j)     Liabilities of MMTI. MMTI has no assets, no liabilities or obligations of any kind, character or description except those listed on the attached schedules and exhibits.

				

				                      (k)     Financial Statements. The unaudited financial statements of MMTI, including a balance sheet, attached as Exhibit B and made a part of this Agreement, are, in all respects, complete and correct and present fairly MMTI’s financial position and the results of its operations on the dates and for the periods shown in this Agreement; provided, however, that interim financial statements are subject to customary year‐end adjustments and accruals that, in the aggregate, will not have a material adverse effect on the overall financial condition or results of its operations. MMTI has not engaged in any business not reflected in its financial statements. There have been no material adverse changes in the nature of its business, prospects, the value of assets or the financial condition since the date of its financial statements. There are no, and on the Closing Date there will be no, outstanding obligations or liabilities of MMTI except as specifically set forth in the financial statements and the other attached schedules and exhibits.  There is no information known to MMTI or UTEK that would prevent the financial statements of MMTI from being audited in accordance with generally accepted accounting principles.

				

				                      (l)     Taxes. All returns, reports, statements and other similar filings required to be filed by MMTI with respect to any federal, state, local or foreign taxes, assessments, interests, penalties, deficiencies, fees and other governmental charges or impositions have been timely filed with the appropriate governmental agencies in all jurisdictions in which such tax returns and other related filings are required to be filed; all such tax returns properly reflect all liabilities of MMTI for taxes for the periods, property or events covered by this Agreement; and all taxes, whether or not reflected on those tax returns, and all taxes claimed to be due from MMTI by any taxing authority, have been properly paid, except to the extent reflected on MMTI’s financial statements, where MMTI has contested in good faith by appropriate proceedings and reserves have been established on its financial statements to the full extent if the contest is adversely decided against it. MMTI has not received any notice of assessment or proposed assessment in connection with any tax returns, nor is MMTI a party to or to the best of its knowledge, expected to become a party to any pending or threatened action or proceeding, assessment or collection of taxes. MMTI has not extended or waived the application of any statute of limitations of any jurisdiction regarding the assessment or collection of any taxes. There are no tax liens (other than any lien which arises by operation of law for current taxes not yet due and payable) on any of its assets. There is no basis for any additional assessment of taxes, interest or penalties. MMTI has made all deposits required by law to be made with respect to employees’ withholding and other employment taxes, including without limitation the portion of such deposits relating to taxes imposed upon MMTI. MMTI is not and has never been a party to any tax sharing agreements with any other person or entity.

				

				                      (m)     Absence of Certain Changes or Events. From the date of the full execution of the Term Sheet until the Closing Date, MMTI has not, and without the written consent of MTNA, it will not have:

				

				

				

			

			
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				                              (1)     Sold, encumbered, assigned let lapsed or transferred any of its material assets, including without limitation the Intellectual Property, the License Agreement or any other material asset;

				

				                              (2)     Amended or terminated the License Agreement or other material agreement or done any act or omitted to do any act which would cause the breach of the License Agreement or any other material agreement;

				

				                              (3)     Suffered any damage, destruction or loss whether or not in control of MMTI;

				

				                              (4)     Made any commitments or agreements for capital expenditures or otherwise;

				

				                              (5)     Entered into any transaction or made any commitment not disclosed to MTNA;

				

				                              (6)     Incurred any material obligation or liability for borrowed money;

				

				                              (7)     Suffered any other event of any character, which is reasonable to expect, would adversely affect the future condition (financial or otherwise) assets or liabilities or business of MMTI; or

				

				                              (8)     Taken any action, which could reasonably be foreseen to make any of the representations or warranties made by MMTI or UTEK untrue as of the date of this Agreement or as of the Closing Date.

				

				                      (n)     Material Agreements. Exhibit A attached contains a true and complete list of all contemplated and executed agreements between MMTI and a third party. A complete and accurate copy of all material agreements, contracts and commitments of the following types, whether written or oral to which it is a party or is bound (the “Contracts”), has been provided to MTNA and such agreements are or will be at the Closing Date, in full force and effect without modifications or amendment and constitute the legally valid and binding obligations of MMTI in accordance with their respective terms and will continue to be valid and enforceable following the Acquisition. MMTI is not in default of any of the Contracts. In addition:

				

				                              (1)     There are no outstanding unpaid promissory notes, mortgages, indentures, deed of trust, security agreements and other agreements and instruments relating to the borrowing of money by or any extension of credit to MMTI; and

				

				                              (2)     There are no outstanding operating agreements, lease agreements or similar agreements by which MMTI is bound; and

				

				                              (3)     The complete final drafts of the License Agreement have been provided to MTNA; and

				

				                              (4)     Except as set forth in (3) above, there are no outstanding licenses to or from others of any intellectual property and trade names; and

				

				                              (5)     There are no outstanding agreements or commitments to sell, lease or otherwise dispose of any of MMTI’s property; and

				

				

				

			

			
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				                              (6)     There are no breaches of any agreement to which MMTI is a party.

				

				                      (o)     Compliance with Laws. MMTI is in compliance with all applicable laws, rules, regulations and orders promulgated by any federal, state or local government body or agency relating to its business and operations.

				

				                      (p)     Litigation.  There is no suit, action or any arbitration, administrative, legal or other proceeding of any kind or character, or any governmental investigation pending or to the best knowledge of MMTI or UTEK, threatened against MMTI, the Technology, or  License Agreement, affecting its assets or business (financial or otherwise), and neither MMTI nor UTEK is in violation of or in default with respect to any judgment, order, decree or other finding of any court or government authority relating to the assets, business or properties of MMTI or the transactions contemplated hereby. There are no pending or threatened actions or proceedings before any court, arbitrator or administrative agency, which would, if adversely determined, individually or in the aggregate, materially and adversely affect the assets or business of MMTI or the transactions contemplated.

				

				                      (q)     Employees. MMTI has no and never had any employees. MMTI is not a party to or bound by any employment agreement or any collective bargaining agreement with respect to any employees. MMTI is not in violation of any law, regulation relating to employment of employees.

				

				                      (r)     Adverse Effect. Neither MMTI nor UTEK has any knowledge of any or threatened existing occurrence, action or development that could cause a material adverse effect on MMTI or its business, assets or condition (financial or otherwise) or prospects.

				

				                      (s)     Employee Benefit Plans.  MMTI states that there are no and have never been any employee benefit plans, and there are no commitments to create any, including without limitation as such term is defined in the Employee Retirement Income Security Act of 1974, as amended, in effect, and there are no outstanding or un-funded liabilities nor will the execution of this Agreement and the actions contemplated in this Agreement result in any obligation or liability to any present or former employee.

				

				                      (t)     Books and Records. The books and records of MMTI are complete and accurate in all material respects, fairly present its business and operations, have been maintained in accordance with good business practices, and applicable legal requirements, and accurately reflect in all material respects its business, financial condition and liabilities.

				

				                      (u)     No Broker’s Fees. Neither UTEK nor MMTI has incurred any investment banking, advisory or other similar fees or obligations in connection with this Agreement or the transactions contemplated by this Agreement.

				

				                      (v)     Full Disclosure.   All representations or warranties of UTEK and MMTI are true, correct and complete in all material respects to the best of our knowledge on the date of this Agreement and shall be true, correct and complete in all material respects as of the Closing Date as if they were made on such date.  No statement made by them in this Agreement or in the exhibits to this Agreement or any document delivered by them or on their behalf pursuant to this Agreement contains an untrue statement of material fact or omits to state all material facts necessary to make the statements in this Agreement not misleading in any material respect in light of the circumstances in which they were made.

				

				          2.02     Representations and Warranties of MTNA.  MTNA represents and warrants to UTEK and MMTI that the facts set forth are true and correct.

				

				

				

			

			
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				                      (a)     Organization.  MTNA is a corporation duly organized, validly existing and in good standing under the laws of Delaware, is qualified to do business as a foreign corporation in other jurisdictions in which the conduct of its business or the ownership of its properties require such qualification, and have all requisite power and authority to conduct its business and operate properties.

				

				                      (b)     Authorization.  The execution of this Agreement and the consummation of the Acquisition and the other transactions contemplated by this Agreement have been duly authorized by the board of directors of MTNA; no other corporate action on their respective parts is necessary in order to execute, deliver, consummate and perform their obligations hereunder; and they have all requisite corporate and other authority to execute and deliver this Agreement and consummate the transactions contemplated by this Agreement.

				

				                      (c)     Capitalization. The authorized capital of MTNA consists of 600,000,000 (Six Hundred Million) shares of common stock with a par value $0.001 per share (MTNA Common Shares) and on the Effective Date of the Acquisition 291,687,296 (Two Hundred Ninety-One Million, Six Hundred Eighty-Seven Thousand, Two Hundred, Ninety-Six) MTNA Shares (which will include the 37,630,750 (Thirty-Seven Million, Six Hundred, Thirty Thousand, Seven Hundred Fifty) MTNA Common Shares issued at the closing of the Acquisition) will be issued and outstanding. All issued and outstanding MTNA Shares have been duly and validly issued and are fully paid and non‐assessable shares and have not been issued in violation of any preemptive or other rights of any other person or any applicable laws.

				

				                      (d)     Anti Dilution Adjustments. UTEK currently owns 148, 034 common shares of MTNA and will be acquiring an additional 35,749,213 unregistered shares of MTNA totaling 35,897,247 unregistered shares; and based on a total of 206,039,701 (including shares in this transaction)  outstanding shares this total will represent a 17.4% ownership position in MTNA shares.  For a period of twelve months from the Effective Date of this Agreement, the aggregate number of shares of Stock that UTEK has received shall be adjusted proportionately by the Board of Directors of MTNA for any increase in the number of outstanding shares of Stock resulting from the issuance of any additional shares, options, warrants or convertible debt by the Company to any of its current list of management and directors as of the Effective Date; excluded from this amount will be the exercise of options, warrants or convertible debt existing as of the date of this agreement.

				

				                      (e)     Binding Effect. The execution, delivery, performance and consummation of the Acquisition and the transactions contemplated by this Agreement will not violate any obligation to which MTNA is a party and will not create a default hereunder, and this Agreement constitutes a legal, valid and binding obligation of MTNA, enforceable in accordance with its terms, except as the enforcement may be limited by bankruptcy, insolvency, moratorium, or similar laws affecting creditor’s rights generally and by the availability of injunctive relief, specific performance or other equitable remedies.

				

				                      (f)     Litigation Relating to this Agreement. There are no suits, actions or proceedings pending or to its knowledge threatened which seek to enjoin the Acquisition or the transactions contemplated by this Agreement or which, if adversely decided, would have a materially adverse effect on its business, results of operations, assets, prospects or the results of its operations of MTNA.

				

				                      (g)     No Conflicting Agreements. Neither the execution and delivery of this Agreement nor the fulfillment of or compliance by MTNA with the terms or provisions of this Agreement will result in a breach of the terms, conditions or provisions of, or constitute default under, or result in a violation of, their respective corporate charters or bylaws, or any agreement, contract, instrument, order, judgment or decree to which it is a party or by which it or any of its assets are bound, or violate any provision of any applicable law, rule or regulation or any order, decree, writ or injunction of any court or governmental entity which materially affects its assets or business.

		

		
			
				

				

				

				

			

			
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				                      (h)     Consents. Assuming the correctness of UTEK and MMTI’s representations, no consent from or approval of any court, governmental entity or any other person is necessary in connection with its execution and delivery of this Agreement; and the consummation of the transactions contemplated by this Agreement will not require the approval of any entity or person in order to prevent the termination of any material right, privilege, license or agreement relating to MTNA or its assets or business.

				

				                      (i)     Financial Statements. The unaudited financial statements of MTNA attached as Exhibit C present fairly its financial position and the results of its operations on the dates and for the periods shown in this Agreement; provided, however, that interim financial statements are subject to customary year-end adjustments and accruals that, in the aggregate, will not have a material adverse effect on the overall financial condition or results of its operations. MTNA has not engaged in any business not reflected in its financial statements. There have been no material adverse changes in the nature of its business, prospects, the value of assets or the financial condition since the date of its financial statements. There are no outstanding obligations or liabilities of MTNA except as specifically set forth in the MTNA financial statements.

				

				                      (j)     Full Disclosure. All representations or warranties of MTNA are true, correct and complete in all material respects on the date of this Agreement and shall be true, correct and complete in all material respects as of the Closing Date as if they were made on such date. No statement made by them in this Agreement or in the exhibits to this Agreement or any document delivered by them or on their behalf pursuant to this Agreement contains an untrue statement of material fact or omits to state all material facts necessary to make the statements in this Agreement not misleading in any material respect in light of the circumstances in which they were made.

				

				                      (k)     Compliance with Laws. MTNA is in compliance with all applicable laws, rules, regulations and orders promulgated by any federal, state or local government body or agency relating to its business and operations.

				

				                      (l)     Litigation.   There is no suit, action or any arbitration, administrative, legal or other proceeding of any kind or character, or any governmental investigation pending or, to the best knowledge of MTNA, threatened against MTNA materially affecting its assets or business (financial or otherwise), and MTNA is not in violation of or in default with respect to any judgment, order, decree or other finding of any court or government authority. There are no pending or threatened actions or proceedings before any court, arbitrator or administrative agency, which would, if adversely determined, individually or in the aggregate, materially and adversely affect its assets or business. MTNA has no knowledge of any existing or threatened occurrence, action or development that could cause a material adverse affect on MTNA or its business, assets or condition (financial or otherwise) or prospects.

				

				                      (m)     Development.  MTNA agrees and warrants that it has the expertise necessary to and has had the opportunity to independently evaluate the inventions of the Licensed Technology and develop same for the market.

				

				                      (n)     Investment Company Status MTNA is not an investment company, either registered or unregistered.

				

				          2.03     Investment Representations of UTEK. UTEK represents and warrants to MTNA that:

				

				                      (a)     General. It has such knowledge and experience in financial and business matters as to be capable of evaluating the risks and merits of an investment in MTNA Shares pursuant to the Acquisition. It is able to bear the economic risk of the investment in MTNA Shares, including the risk of a total 

				

				

			

			
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					loss of the investment in MTNA Shares. The acquisition of MTNA Shares is for its own account and is for investment and not with a view to the distribution of this Agreement. Except a permitted by law, it has a no present intention of selling, transferring or otherwise disposing in any way of all or any portion of the shares at the present time. All information that it has supplied to MTNA is true and correct. It has conducted all investigations and due diligence concerning MTNA to evaluate the risks inherent in accepting and holding the shares which it deems appropriate, and it has found all such information obtained fully acceptable. It has had an opportunity to ask questions of the officer and directors of MTNA concerning MTNA Shares and the business and financial condition of and prospects for MTNA, and the officers and directors of MTNA have adequately answered all questions asked and made all relevant information available to them. UTEK is an accredited investor, as the term is defined in Regulation D, promulgated under the Securities Act of 1933, as amended, and the rules and regulations thereunder.

				

				                      (b)     Stock Transfer Restrictions.  UTEK acknowledges that the MTNA Shares will not be registered and UTEK will not be permitted to sell or otherwise transfer the MTNA Shares in any transaction in contravention of the following legend, which will be imprinted in substantially the following form on the stock certificate representing MTNA Shares:

				

					THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE ACT), OR UNDER THE SECURITIES LAWS OF ANY STATE. THESE SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE, ASSIGNED, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED PURSUANT TO THE PROVISION OF THE ACT AND THE LAWS OF SUCH STATES UNDER WHOSE LAWS A TRANSFER OF SECURITIES WOULD BE SUBJECT TO A REGISTRATION REQUIREMENT, UNLESS UTEK CORPORATION HAS OBTAINED AN OPINION OF COUNSEL STATING THAT SUCH DISPOSITION IS IN COMPLIANCE WITH AN AVAILABLE EXEMPTION FROM SUCH REGISTRATION.

				

				                      (c)     Legend.  Subject to Rule 144 restrictions, 12 months following the stock acquisition described herein, MTNA agrees to and shall direct its transfer agent to remove the above legend upon the issuance by UTEK's legal counsel that the above legend can be removed from UTEK's shares.  MTNA agrees to and promptly shall provide any information requested by UTEK or UTEK's counsel and to make further direction to its transfer agent as necessary for such issuance of an opinion regarding removal of the legend or the sale of such restricted shares under Rule 144 or other available exemption from registration. A letter affecting the issuance of the certificate without the restrictive legend one year from the date of closing is attached as Exhibit D.

				

				                      (d)     In the event that MTNA fails to direct its transfer agent to remove the legend within fifteen (15) days of request by UTEK, MTNA shall be liable to an additional fee of ten percent (10%) of the current value of the shares held by UTEK, as well as any and all attorney fees and costs that UTEK may incur as a result of MTNA failing to comply in this request.

					

				

		

		
			
				ARTICLE 3

						TRANSACTIONS PRIOR TO CLOSING

						

					

			

		

		
			          3.01.     Corporate Approvals. Prior to Closing Date, each of the parties shall submit this Agreement to its board of directors and when necessary, its respective shareholders and obtain approval of this Agreement. Copies of corporate actions taken shall be provided to each party.

				

				          3.02      Access to Information. Each party agrees to permit, upon reasonable notice, the attorneys, accountants, and other representatives of the other party’s reasonable access during normal business hours to its properties and its books and records to make reasonable investigations with respect to its affairs, and to make its officers and employees available to answer questions and provide additional information as reasonably requested.

		

		
			
				

				

				

			

			
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				          3.03      Expenses. Each party agrees to bear its own expenses in connection with the negotiation and consummation of the Acquisition and the transactions contemplated by this Agreement.
				

				          3.04      Covenants. Except as permitted in writing, each party agrees that it will:

					

					                      (a)     Use its good faith efforts to obtain all requisite licenses, permits, consents, approvals and authorizations necessary in order to consummate the Acquisition; and

					

					                      (b)     Notify the other parties upon the occurrence of any event which would have a materially adverse effect upon the Acquisition or the transactions contemplated by this Agreement or upon the business, assets or results of operations; and

					

					                      (c)     Not modify its corporate structure, except as necessary or advisable in order to consummate the Acquisition and the transactions contemplated by this Agreement.

					

				

			

			
				ARTICLE 4

						CONDITIONS PRECEDENT

						

					

			

		

		
			          The obligation of the parties to consummate the Acquisition and the transactions contemplated by this Agreement are subject to the following conditions that may be waived, to the extent permitted by law:

				

				          4.01.     Each party must obtain the approval of its board of directors and such approval shall not have been rescinded or restricted.

			

		

		
			
				

				          4.02.     Each party shall obtain all requisite licenses, permits, consents, authorizations and approvals required to complete the Acquisition and the transactions contemplated by this Agreement.

				

				          4.03.     There shall be no claim or litigation instituted or threatened in writing by any person or government authority seeking to restrain or prohibit any of the contemplated transactions contemplated by this Agreement or challenge the right, title and interest of UTEK in the MMTI Shares or the right of MMTI or UTEK to consummate the Acquisition contemplated hereunder.

				

				          4.04.     The representations and warranties of the parties shall be true and correct in all material respects at the Effective Date.

				

				          4.05.     The Technology and Intellectual Property has been prosecuted in good faith with reasonable diligence.

					

					          4.06.     To the best knowledge of UTEK and MMTI, the License Agreement are valid and in full force and effect without any default in this Agreement.

			

		

		
			
				

				          4.07.     MTNA shall have received, at or within 5 days of Closing Date, each of the following:

					

					                      (a)     the stock certificates representing the MMTI Shares, duly endorsed (or accompanied by duly executed stock powers) by UTEK  for cancellation;

				

				

				

			

			
				Page 10 of 18

						

						

					

			

			
				

				

				

				

				

				                      (b)     all documentation relating to MMTI’s business, all in a form and substance satisfactory to MTNA;

				

				                      (c)     such agreements, files and other data and documents pertaining to MMTI’s  business as MTNA may reasonably request;

				

				                      (d)     copies of the general ledgers and books of account of MMTI, and all federal, state and local income, franchise, property and other tax returns filed by MMTI since the inception of MMTI;

				

				                      (e)     certificates of (i) the Secretary of State of the State of Florida as to the legal existence and good standing, as applicable, (including tax) of MMTI in Florida;

				

				                      (f)     the original corporate minute books of MMTI, including the articles of incorporation and bylaws of MMTI, and all other documents filed in this Agreement;

				

				                      (g)     all consents, assignments or related documents of conveyance to give MTNA the benefit of the transactions contemplated hereunder;

				

				                      (h)     such documents as may be needed to accomplish the Closing under the corporate laws of the states of incorporation of MTNA and MMTI, and

				

				                      (i)     such other documents, instruments or certificates as MTNA, or their counsel may reasonably request.
				

				          4.08.     MTNA shall have completed due diligence investigation of MMTI to MTNA’s satisfaction in their sole discretion.

				

				          4.09.     MTNA shall receive the resignation effective the Closing Date of each director and officer of MMTI.

					

				

			

		

		
			
				ARTICLE 5

						INDEMNIFICATION AND LIABILITY LIMITATION

						

					

			

		

		
			          5.01.     Survival of Representations and Warranties.

					

				                      (a)     The representations and warranties made by UTEK and MMTI shall survive for a period of 1 year after the Closing Date, and thereafter all such representation and warranties shall be extinguished, except with respect to claims then pending for which specific notice has been given during such 1-year period.

				

				                      (b)     The representations and warranties made by MTNA shall survive for a period of 1 year after the Closing Date, and thereafter all such representations and warranties shall be extinguished, except with respect to claims then pending for which specific notice has been given during such 1-year period.

				

				          5.02     Limitations on Liability.  MTNA agrees that UTEK shall not be liable under this Agreement to MTNA or their respective successor’s, assigns or affiliates except where damages result directly from the gross negligence or willful misconduct of UTEK or its employees.  In no event shall UTEK's liability exceed the total amount of the fees paid to UTEK under this agreement, nor shall UTEK be liable for incidental or consequential damages of any kind.  MTNA shall indemnify UTEK, and hold UTEK harmless against any and all claims by third parties for losses, damages or liabilities, including reasonable attorneys fees and expenses 

			

			

			

		

		
			Page 11 of 18

					

					

				

		

		
			

			

			

			

			

			(“Losses”), arising in any manner out of or in connection with the rendering of services by UTEK under this Agreement, unless it is finally judicially determined that such Losses resulted from the gross negligence or willful misconduct of UTEK. The terms of this paragraph shall survive the termination of this agreement and shall apply to any controlling person, director, officer, employee or affiliate of UTEK.

			

			          5.03     Indemnification.  MTNA agrees to indemnify and hold harmless UTEK and its subsidiaries and affiliates and each of its and their officers, directors, principals, shareholders, agents, independent contactors and employees (collectively “Indemnified Persons”) from and against any and all claims, liabilities, damages, obligations, costs and expenses (including reasonable attorneys’ fees and expenses and costs of investigation) arising out of or relating to  matters  or arising from this Agreement, except to the extent that any such claim, liability, obligation, damage, cost or expense shall have been determined by final non-appealable order of a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of the Indemnified Person or Persons in respect of whom such liability is asserted.

			

			                      (a)     Limitation of Liability.  MTNA agrees that no Indemnified Person shall have any liability as a result of the execution and delivery of this Agreement, or other matters relating to or arising from this Agreement, other than liabilities that shall have been determined by final non-appealable order of a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of the Indemnified Person or Persons in respect of whom such liability is asserted.  Without limiting the generality of the foregoing, in no event shall any Indemnified Person be liable for consequential, indirect or punitive damages, damages for lost profits or opportunities or other like damages or claims of any kind.  In no event shall UTEK's liability exceed the total amount of the fees paid to UTEK under this Agreement.

			

		

		
			ARTICLE 6

				REMEDIES

		

		
			
				

				

				          6.01     Specific Performance. Each party’s obligations under this Agreement are unique. If any party should default in its obligations under this agreement, the parties each acknowledge that it would be extremely impracticable to measure the resulting damages. Accordingly, the non-defaulting party, in addition to any other available rights or remedies, may sue in equity for specific performance, and the parties each expressly waive the defense that a remedy in damages will be adequate.

					

					          6.02     Costs. If any legal action or any arbitration or other proceeding is brought for the enforcement of this agreement or because of an alleged dispute, breach, default, or misrepresentation in connection with any of the provisions of this agreement, the successful or prevailing party or parties shall be entitled to recover reasonable attorneys’ fees and other costs incurred in that action or proceeding, in addition to any other relief to which it or they may be entitled.

					

				

			

			
				ARTICLE 7

					ARBITRATION

						

					

			

		

		
			          In the event a dispute arises with respect to the interpretation or effect of this Agreement or concerning the rights or obligations of the parties to this Agreement, the parties agree to negotiate in good faith with reasonable diligence in an effort to resolve the dispute in a mutually acceptable manner. Failing to reach a resolution of this Agreement, either party shall have the right to submit the dispute to be settled by arbitration under the Commercial Rules of Arbitration of the American Arbitration Association. The parties agree that, unless the parties mutually agree to the contrary such arbitration shall be conducted in Tampa, Florida.  The cost of arbitration shall be borne by the party against whom the award is rendered or, if in the interest of fairness, as allocated in accordance with the judgment of the arbitrators. All awards in arbitration made in good faith and not infected with fraud or other misconduct shall 

			

			

			

		

		
			Page 12 of 18

					

					

				

		

		
			

			

			

			

			

			be final and binding.  The arbitrators shall be selected as follows: one by MTNA, one by UTEK and a third by the two selected arbitrators. The third arbitrator shall be the chairman of the panel.

			

		

		
			ARTICLE 8

				MISCELLANEOUS

		

		
			

			
				

				          8.01.     No party may assign this Agreement or any right or obligation of it hereunder without the prior written consent of the other parties to this Agreement. No permitted assignment shall relieve a party of its obligations under this Agreement without the separate written consent of the other parties.

				

				          8.02.     This Agreement shall be binding upon and inure to the benefit of the parties and their respective permitted successors and assigns.

					

					          8.03.     Each party agrees that it will comply with all applicable laws, rules and regulations in the execution and performance of its obligations under this Agreement.

					

					          8.04.     This Agreement shall be governed by and construct in accordance with the laws of the State of Florida without regard to principles of conflicts of law.

					

					          8.05.     This document constitutes a complete and entire agreement among the parties with reference to the subject matters set forth in this Agreement. No statement or agreement, oral or written, made prior to or at the execution of this Agreement and no prior course of dealing or practice by either party shall vary or modify the terms set forth in this Agreement without the prior consent of the other parties to this Agreement. This Agreement may be amended only by a written document signed by the parties.

					

					          8.06.     Notices or other communications required to be made in connection with this Agreement shall be sent by U.S. mail, certified, return receipt requested, personally delivered or sent by express delivery service and delivered to the parties at the addresses set forth below or at such other address as may be changed from time to time by giving written notice to the other parties.

			

		

		
			
				

				          8.07.     The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

				

				          8.08.     This Agreement may be executed in multiple counterparts, each of which shall constitute one and a single Agreement.

					

					          8.09     Any facsimile signature of any part to this Agreement or to any other agreement or document executed in connection of this Agreement should constitute a legal, valid and binding execution by such parties.

					

					

				

			

		

		
			
				(Signatures on the following page)

			

			
				

			

		

		
			

			

			

			

			

			

			

			

			

			

			

			

		

		
			Page 13 of 18

					

					

				

		

		
			

			

			

			

			

			MATERIAL TECHNOLOGIES, INC.                     MATERIALS MONITORING TECHNOLOGIES, INC.

				

				

					By:  /s/ Robert M. Bernstein                                           By:  /s/ Joel Edelson                                    

				      Robert Bernstein,                                                          Joel Edelson

				      Chief Executive Officer                                                 President

				

				      Address:                                                                      Address:

				      11661 San Vicente Blvd., Suite 707                             2109 East Palm Avenue

				      Los Angeles, California 90049                                     Tampa, Florida 33605

				

				      Date: August 18, 2006                                                 Date: August 18, 2006

				

				

				UTEK CORPORATION

					

					

				By:  /s/ Clifford M. Gross                        

				     Clifford M. Gross, Ph.D.    

				     Chief Executive Officer

				

				      Address:

				      2109 East Palm Avenue

				      Tampa, Florida 33605

				

					Date: August 18, 2006

				

				

				UTEK CORPORATION

					

					

				By:  /s/ Doug Schaedler                         

				     Doug Schaedler    

				     Chief Compliance Officer

				

				      Address:

				      2109 East Palm Avenue

				      Tampa, Florida 33605

				

				Date:   August 18, 2006

			

			

		

		
			
				

				

				

				

			

			

			

			

			

			

			

			

		

		
			Page 14 of 18

					

					

				

		

		
			

			

			

			

			

		

		
			EXHIBIT A

					

					Outstanding Agreements

					from North Carolina Agricultural and Technical State University

					

				

		

		
			
				1)       License Agreement

						2)       Consultation Agreement

			

		

		
			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

		

		
			Page 15 of 18

					

					

				

		

		
			

			

			

			

			

		

		
			EXHIBIT B

					

					

					MATERIALS MONITORING TECHNOLOGIES, INC.

					

					Financial Statements as of August 18, 2006

			
				

				

			

		

		
			
				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

			

			
				Page 16 of 18

						

						

					

			

			
				

				

				

				

				

			

		

		
			
				EXHIBIT C

						

						MATERIAL TECHNOLOGIES, INC.

						

						Unaudited Financial Statements

						for Material Technologies, Inc.

						for the QUARTER ended March 31, 2006

			

		

		
			

			

			
				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

			

			
				Page 17 of 18

						

						

					

			

			
				

				

			

		

		

		
		
			EXHIBIT D

					

					Material Technologies, Inc.

				

				Stock Transfer Letter

				

				

				

			

		

		
			

				

				

				August 18, 2006

				

				Continental Stock Transfer & Trust Company

					17 Battery Place

				New York, NY 10004 

				

				Dear Sir or Madam:

				

				            Re:       Transfer of Material Technologies, Inc. Stock to UTEK Corporation

				

				This letter does hereby authorize Continental Stock Transfer & Trust Company, upon request by UTEK Corporation or its authorized agent, to issue to UTEK Corporation a new stock certificate representing shares in Material Technologies, Inc.  These new shares issued shall be issued without a restricted transfer legend.

				

				The authorization for this letter shall become effective one year from the date of this letter.

				

				

				Signed,

				

				

				/s/ Robert Bernstein

				

				Robert Bernstein

				Chief Executive Officer

				

				

				

				

				

				

				

			

		

		
			Page 18 of 18Untitled Page

		

			

			

			Exhibit 10.2

			

			

		

		
			NORTH CAROLINA A&T STATE UNIVERSITY

					MATERIALS MONITORING TECHNOLOGIES, INC.

					

					LICENSE AGREEMENT

					

					

				

		

		
			          This Agreement is made by and between North Carolina A&T State (hereinafter referred to as “NCAT”), a constituent institution of the University of North Carolina System and an educational institution organized under the laws of North Carolina, and having its principal office at 1601 East Market Street, Greensboro, North Carolina 27411, and Materials Monitoring Technologies, Inc. (“hereinafter referred to as “LICENSEE”), a corporation having its principal place of business at 2109 Palm Avenue, Tampa, Florida 33605.

				

				          WHEREAS, Dr. Mannur Sundaresan, et al have discovered an invention(s) entitled Sensor Array System and System for Damage Location Using a Single Channel Continuous Acoustic Emission Sensor, and NCAT owns all rights, title, and interest in and to the invention and the Patent Rights (as hereinafter defined) pertaining to such invention; and

				

				          WHEREAS, NCAT has the right to grant licenses to the foregoing invention, and wishes to have the invention perfected and marketed at the earliest possible time in order that products resulting therefrom may be available for public use and benefit; and

				

				          WHEREAS, NCAT is willing to grant a license to LICENSEE to the Patent Rights subject to the terms and conditions set forth herein;

				

				          NOW, THEREFORE, in consideration of the premises and the mutual covenants set forth herein, and for good and valuable consideration, the receipt and sufficiency of which is acknowledged, the parties hereto, intending to be legally bound, agree as follows:

				

				

			

		

		
			ARTICLE 1 - DEFINITIONS

						

					

		

		
			1.01 -     “Patent Rights” means the United States patent applications identified below and any patent now issued or here­after issuing on any such patent applications, as well as continuations, divisions, continuations-in-part to the extent the claims are directed to subject matter specifically described in US Patents 6,399,939 and 7,075,424, or reissues thereof.

		

		

		

		

		1.02 -     “Field” or “Field of Use” means the structural health monitoring of bridges and railroads application of the Subject Technology.

		

		1.03 -     “Licensed Product” means any product, process or use thereof (a) which is dominated by an unexpired claim contained in the Patent Rights in the country in which the Licensed Product(s) is made, used, sold or transferred and/or (b) which is manufactured by using a process which is dominated by an unexpired claim contained 

			

			

			

			

		

		

		

		

		

		

		in the Patent Rights in the country in which the Licensed Product(s) is made, used, sold or transferred.

		

		1.04 -     “Net Sales” means LICENSEE’s gross receipts for the sale, use and transfer of Licensed Products, less the sum of the following:

		
			
				(a)     Discounts allowed in amounts customary in the trade;

					

					(b)     Sales, tariff duties and/or use taxes directly imposed and with reference to particular sales;

					

					(c)     Outbound transportation prepaid or allowed; and

					

					(d)     Amounts allowed or credited on returns.

				

			

		

		No deductions may be made for commissions paid to individuals whether they be independent sales agents or regularly employed by LICENSEE and on its payroll, nor for the cost of collec­tions.  Licensed Products are considered “sold” when billed out or invoiced. Net Sales in the case of Licensed Products used or transferred by LICENSEE means the fair market value of Licensed Products as if they were sold to an unrelated third party in similar quantities.

			

			1.05 -     “Affiliate” or “Affiliates” means (i) any corporation, company or other entity in which LICENSEE owns or controls at least ten percent (10%) of the stock entitled to vote in elec­tion of members of the Board of Directors; or (ii) any corporation, company or other entity which owns or controls at least ten percent (10%) of the stock of LICENSEE.

		

		1.06 -     “Effective Date” means August 2, 2006.

			

			

		

		
			ARTICLE 2 - LICENSE

		

		

		2.01 -     NCAT grants to LICENSEE and LICENSEE accepts from NCAT, upon the terms and conditions herein specified, an exclusive license to make, have made, use and sell Licensed Products, with the right to sublicense.  Such license is worldwide and remains in effect, on a country by country basis, until the full end of the term or terms for which Patent Rights are issued, unless sooner terminated as hereinafter provided. The foregoing notwith­standing, LICENSEE’s rights and license are subject to the rights of the U.S. Government pursuant to any funding agreement between NCAT and the Government. 

		

		2.02 -     LICENSEE may grant sublicenses and extend any license granted to LICENSEE to its Affiliates.  Any such sublicenses or extensions are subject to the terms of this Agreement and may be no less favorable to NCAT than is this license.  A copy of each sublicense must be provided to NCAT no later than 45 days after execution date.  LICENSEE agrees to be responsible for the performance hereunder by its Affiliates and sublicensees, if any. If this Agreement is terminated for any reason, LICENSEE agrees to assign all such sublicenses directly to NCAT.

			

			

			

		

		
			- Page 2 -

		

		

		

		

		

		

		2.03 -     NCAT shall have the right to practice the Invention(s) and use the Technology for its own bona fide research, including sponsored research and Small Business Innovative Research (SBIR) collaborations.  NCAT shall have the right to publish any information included in under this invention with reasonably notice to LICENSEE.  
		

		2.04 -     The license granted hereunder does not confer any rights upon LICENSEE by implication, estoppel or otherwise as to any technology not part of the Patent Rights licensed hereunder. 

		

		2.05 -     LICENSEE agrees that any products constituting Licensed Products or produced through the use of Licensed Products will be manufactured substantially in the United States to the extent required by 35 U.S.C. Sec. 204, if such statute is applicable.

			

			

		

		
			ARTICLE 3 - DUE DILIGENCE

						

					

		

		
			3.01 -     LICENSEE must diligently pursue the development of Licensed Products. This will include manufacturing or producing a Licensed Product for testing, development, and sale, and also seeking required governmental approvals, if appli­cable, of such Licensed Product.  In addition to this general commitment to diligence, LICENSEE agrees to the following diligence requirements:

			

		

		
			
				
					(a)     Licensee will support a program of collaborative research under the direction of Dr. Mannur Sundaresan.  This program shall be governed by a separate Development Agreement between the parties.

						

						(b)     Within three (3) months from the Effective Date of this Agreement, LICENSEE shall deliver to NCAT a report showing LICENSEE’s plans for commercializing the Subject Technology.

						

						(c)     LICENSEE must commercialize Licensed Products according to the following schedule:

					

				

				
					
						(1)                   days after a working prototype is developed, Licensee will offer the product for commercial sale. 

					

				

			

		

		3.02 -     LICENSEE will use its best efforts to have the Subject Technology cleared for marketing in those countries in which LICENSEE intends to sell Licensed Products by the responsible government agencies requiring such clearance.  To accomplish such clearances at the earliest possible date, LICENSEE agrees to file, according to the usual practice of LICENSEE, any necessary data with such government agencies.  Should LICENSEE terminate this Agreement, LICENSEE agrees to assign its full interest and title in such market clearance application, including all data relating thereto, to NCAT at no cost to NCAT.

			

			

			

			

		

		
			- Page 3 -

		

		

		

		

		

		

		3.03 -     Failure by LICENSEE to comply with the provisions of this Article 3 results in NCAT having the right, at its option, to convert any exclusive license to a non-exclusive license, or to cancel the license upon thirty (30) days notice, and to require a reversion of rights to all relevant materials, research information and technology, including Patent Rights, transferred to LICENSEE by NCAT.  The LICENSEE will have the opportunity to cure the failure to comply within thirty (30) days of receipt of notice.  If the failure to comply is not cured within that time, the termination will be effective as of the thirtieth (30th) day after receipt of notice.

		

		

		
			ARTICLE 4 - LICENSE FEE, ROYALTIES, RECORDS, AND REPORTS

						

					

		

		
			4.01 -     In partial consideration for the license granted in this Agreement, LICENSEE must pay to NCAT a license fee of Seventy-nine thousand dollars ($79,000.00) which is due and payable to NCAT at the execution of this agreement. The license fee is non-refundable and is not creditable against any future payments or royalties.

				

				4.02 -     For as long as this license is in effect, LICENSEE must pay to NCAT a royalty of three and one half percent (3.5%) of Net Sales of Licensed Products by LICENSEE, its Affiliates and/or sublicensees. In the case of sublicenses, LICENSEE must also pay to NCAT twenty-five percent (25%) of any income, revenue or other financial consideration (e.g. advance payments, license issue fees, license maintenance fees, option fees, equity, etc.) received by LICENSEE from its sublicensees, except for income, revenue or other financial consideration which is received directly as a running royalty on actual sales of Licensed Product.

				

				4.03 -     LICENSEE must pay to NCAT minimum annual royalties beginning August 2, 2009.  The minimum annual royalty payments must be made according to the following schedule:

				

				            For the Year Beginning                                                        Amount

					

				            August 2, 2007                                                                    $  0.00  

				            August 2, 2008                                                                    $  0.00  

				            August 2, 2009                                                                    $30,000

				            August 2, 2010                                                                    $30,000

				            August 2, 2011 (and each August 2 thereafter)                     $50,000

					

				Payment of the specified minimum annual royalty payments shall be made within sixty (60) days following each of the dates above specified, consistent with the reporting and payment require­ments set forth in 4.04 hereof. 

				

				4.04 -     LICENSEE will render to NCAT on a quarterly basis a written account of the Net Sales of Licensed Products as of July 1, October 1, January 1, and April 1 of 

				

				

				

			

		

		
			- Page 4 -

		

		
			

			

			

			

			

			each calendar year.  The reports of Net Sales and the royalty payment due NCAT thereon shall be due and payable within sixty (60) days following the applicable date.  LICENSEE shall make such reports even if there have been no Net Sales or if no royalties are due to NCAT for a particular quarter.  LICENSEE’s reports shall include at least the following:

		

		

		
			
				(a)     All Licensed Products manufactured and sold.

					

					(b)       Gross receipts for Licensed Products sold.

					

					(c)        Accounting for all sub-licensing revenues.

					

					(d)       Deductions applicable as provided in section 1.05. 

					

					(e)       Total sales made to U.S. Government Agencies which may require no royalty payment.

					

					(f)         Total royalties due to NCAT.

					

					(g)       Names and addresses of all sub-licensees of LICENSEE.

			

		

		4.05 -     LICENSEE and its Affiliates will keep full, true, and accurate books of accounts and other records containing all particulars which may be necessary to ascertain and verify properly such Net Sales.  Upon NCAT’s request, LICENSEE and its Affiliates will permit an independent Certified Public Accountant selected by NCAT (except one to whom LICENSEE has some reason­able objection) to have access during ordinary business hours to such of LICENSEE’s or its Affiliates’ records as may be necessary to determine, in respect of any three (3) month period ending not more than five (5) years prior to the date of such request, the correctness of any report made under this Agreement.  Nothing herein limits the authority of the State Auditor of North Carolina.

			

			4.06 -     All payments made as a result of this Agreement will be paid in United States dollars in Greensboro, North Carolina, or at such other place as NCAT may reasonably designate consistent with the laws and regulations controlling in any foreign country.  If any currency con­version shall be required in connection with the payment of royalties hereunder, such conversion shall be made by using the exchange rate prevailing at the Chase Manhattan Bank (N.A.) on the last business day of the calendar quarterly reporting period to which such royalty payments relate.

		

		4.07 -     The royalty payments set forth in this Agreement, if overdue, will bear interest until payment at a per annum rate of four percent (4%) above the prime rate in effect at the Chase Manhattan Bank (N.A.) on the due date.  However, in no event shall any penalties hereunder exceed eighteen percent (18%) per annum (or 1.5 % per month). 

			

			

			

			

			

		

		
			- Page 5 -

		

		

		

		

		

		

		
			ARTICLE 5 - PATENTS

		

		

		5.01 -     NCAT may select patent counsel and have sole responsibility for filing, prosecuting and maintaining appropriate U.S. and foreign patent application(s) on the Subject Technology in the name of NCAT, and all expenses of such protection shall be paid by LICENSEE.  LICENSEE also agrees to reimburse NCAT for unreimbursed out-of-pocket patent costs incurred through the Effective Date.  NCAT will keep Licensee advised as to the prosecution of such applications by forwarding to LICENSEE copies of all official correspondence relating thereto.  LICENSEE agrees to cooperate with NCAT in the prosecution of patent application(s) to insure that such applications reflect, to the best of NCAT’s and LICENSEE’s knowledge, all items of commercial, scientific and technical interest and importance.  All final decisions with respect to the prosecution of said patent application(s) are reserved to NCAT.

		

		5.02 -     LICENSEE may designate the foreign countries, if any, in which LICENSEE desires patent protection, and NCAT agrees to file, prosecute and maintain appropriate applications in such countries.  LICENSEE shall pay all expenses with regard to such foreign patent protection.  NCAT may elect to seek patent protection in countries not so designated by LICENSEE, in which case NCAT shall be responsible for all expenses attendant thereto; however, in such instances, LICENSEE shall forfeit its rights under this license agreement as to such countries.

		

		5.03 -     For each country in which Licensed Products will be sold, LICENSEE agrees to mark all Licensed Products it commercializes with the applicable patent number.

			

			

		

		
			ARTICLE 6 - GOVERNMENT CLEARANCE, PUBLICATION, OTHER USE,

						EXPORT, DUTIES 

					

				

		

		
			6.01 -     LICENSEE agrees that the right of publication of the Patent Rights resides in the inventor and other staff of NCAT.  NCAT will use its reasonable best efforts to provide a copy of each publication at the time of submission for pre-publication review, or in any event not less than thirty (30) days prior to the expected date of publication.  Such review will be in no way construed as a right to restrict such publication. 

		

		

		6.02 -     It is agreed that, notwithstanding any provisions herein, NCAT is free to use the Patent Rights for its educational, teaching, and research purposes without restriction and without payment of royalties or other fees.

		

		6.03 -     This Agreement is subject to, and LICENSEE will comply with, all of the United States laws and regulations controlling the export of technical data, computer software, laboratory prototypes, and other commodities and technology which may be applicable.

			

			6.04 -     LICENSEE is solely responsible for the payment and discharge of any taxes or duties relating to any transaction of LICENSEE, its 

			

			

			

		

		
			- Page 6 -

		

		

		

		

		

		

		employees, contractors, agents, or sub-licensees, in connection with the manufacture, use, or sale in any country of Licensed Product(s).

		

		

		
			ARTICLE 7 - DURATION AND TERMINATION

		

		

		

		7.01 -     This Agreement becomes effective upon the Effective Date and, unless sooner terminated in accordance with any of the provisions herein, remains in full force and effect for the life of the last-to-expire of the patents included in the Patent Rights.

		

		7.02 -     In the event an order for relief is entered against LICENSEE under the Federal Bankruptcy Code, or an order appointing a receiver for substantially all of LICENSEE’s assets is entered by a court of competent jurisdiction, or LICENSEE makes an assignment for the benefit of creditors, or a levy of execution is made upon substantially all of the assets of LICENSEE and such levy is not quashed or dismissed within thirty (30) days, this Agreement automatically terminates effective on the date of such order or assignment or, in the case of such levy, the expira­tion of such thirty day period; provided, however, that such termination will not impair or prejudice any right of remedy that NCAT might have under this Agreement.

		

		7.03 -     LICENSEE may terminate this Agreement by giving NCAT written notice at least ninety (90) days prior to such termination, and thereupon terminate the manufacture, use, or sale of Licensed Products.

		

		7.04 -     Should LICENSEE fail to pay NCAT royalties and/or fees, due and payable hereunder, NCAT may terminate this Agreement on thirty (30) days’ notice, unless LICENSEE pays NCAT, within the thirty (30) day period, all such royalties, fees, and interest due and payable.  Upon the expiration of the thirty (30) day period, if LICENSEE has not paid all such royalties and interest due and payable, the rights, privileges and license granted hereunder shall terminate.

		

		7.05 -     Either party may immediately terminate this Agreement for fraud, willful mis­conduct, or illegal conduct of the other party upon written notice of same to that other party.  Except as provided above, if either party fails to fulfill any of its obligations under this Agreement, the non-breaching party may terminate this Agreement by providing written notice to the breaching party, as provided below.  Such notice must contain a full description of the event or occurrence constituting a breach of the Agreement.  The party receiving notice of the breach will have the opportunity to cure that breach within thirty (30) days of receipt of notice.  If the breach is not cured within that time, the termination will be effective as of the thirtieth (30th) day after receipt of notice.  A party’s ability to cure a breach will apply only to the first two (2) breaches properly noticed under the terms of this Agreement, regardless of the nature of those breaches.  Any subsequent breach by that party will entitle the other party to terminate this Agreement upon proper notice, with no opportunity to cure.

		

		7.06 -     If at any time prior to the first commercial sale of a Licensed Product under this Agreement LICENSEE ceases to pursue commercial development of Licensed Products or ceases practicing under the Patent Rights as contemplated 

			

			

			

		

		
			- Page 7 -

		

		

		

		

		

		

		herein, LICENSEE must notify NCAT, and this Agreement automatically terminates without obligation on the part of NCAT to refund any of the fees or royalties which may have been paid by LICENSEE prior to such termination.
		

		7.07 -     Upon the termination of this Agreement pursuant to Article 7.03, LICENSEE may notify NCAT of the amount of Licensed Products that LICENSEE has on hand and LICENSEE may then sell that amount of Licensed Products, but no more; provided, however, that LICENSEE pay NCAT any fees, royalties or other financial consideration as provided for in this Agreement.

			

			

		

		
			ARTICLE 8 - INFRINGEMENT OF THIRD-PARTY RIGHTS

		

		

		

		8.01 -     In the event that NCAT or LICENSEE is charged with infringement of a patent by a third party or is made a party in a civil action as a result of LICENSEE’s or a sub-licensee’s practice of the Patent Rights under this Agreement, LICENSEE:

		

		
			
				(a)     must defend and/or settle any such claim of infringement or civil action;

					

					(b)     must assume all costs, expenses, damages, and other obligations for payments incurred as a consequence of such charges of infringement and/or civil action;

					

					(c)     must indemnify and hold NCAT harmless from any and all damages, losses, liability, and costs resulting from a charge of infringement or civil action which shall be brought against NCAT and attributable to technology added to, incorporated into or sold with a Licensed Product by LICENSEE or a sub-licensee or to manufacturing processes utilized by LICENSEE or a sub-licensee; and

					

					(d)     may,  if such claim of infringement or civil action shall be based on patent claims contained in any pending or issued patent included in the Patent Rights, terminate this Agreement effective immediately upon NCAT’s receipt of written notice of termination, and LICENSEE shall have no further liability for claims and/or damages arising subsequent to said date of termination unless LICENSEE is exercising its license under Section 7.07, in which case LICENSEE's liability and obligations under this Article shall continue as long as license granted in Section 7.07 is in effect.

			

		

		8.02 -     NCAT will give LICENSEE assistance, at LICENSEE’s expense, in the defense of any such infringement charge or lawsuit, as may be reasonably required. 

			

			

			

			

			

		

		
			- Page 8 -

		

		

		

		

		

		

		
			ARTICLE 9 - INFRINGEMENT OF NCAT’s PATENT RIGHTS 

					BY THIRD PARTIES

						

					

		

		
			9.01 -     Each Party to this Agreement is obligated to inform the other promptly in writing of any alleged infringement of which it becomes aware and of any available evidence of infringement by a third party of any patents within the Patent Rights.

		

		

		9.02 -     If during the term of this Agreement LICENSEE becomes aware of any alleged infringement by a third party, LICENSEE shall have the right, but not the obligation, to either:

		

		
			
				(a)       settle the infringement suit by sub-licensing the alleged infringer or by other means; or

					

					(b)       prosecute at its own expense any infringement of the Patent Rights.  In the event LICENSEE prosecutes such infringement, LICENSEE may, for such purposes, request to use the name of NCAT as party plaintiff.  Subject to the approval of the Board of Governors of the University of North Carolina, NCAT may agree to become a party plaintiff, and costs associated therewith shall be borne by LICENSEE. 

			

		

		9.03 -     In the event that LICENSEE undertakes the enforcement and/or defense of the Patent Rights by litigation, including any declaratory judgment action, the total cost of any such action commenced or defended solely by LICENSEE shall be borne by LICENSEE.  Any recovery of damages by LICENSEE as a result of such action shall be applied first in satisfaction of any unreimbursed expenses and attorneys’ fees of LICENSEE relating to the action, and second in satisfaction of unreimbursed legal expenses and attorneys’ fees of NCAT, if any, relating to the action.  The balance remaining from any such recovery will be distributed to LICENSEE, provided that LICENSEE must pay to NCAT such royalties and fees, and any directly associated damages,  as would otherwise be applicable under Article 4 hereof for that portion of LICENSEE’s recovery attributable to lost sales or revenues.  LICENSEE is entitled to settle any such litigation by agreement, consent, judgment, voluntary dismissal, or otherwise, with the consent of NCAT, which consent shall not be withheld unreasonably.

			

			9.04 -     In the event LICENSEE does not undertake action to prevent the infringing activity within three (3) months of having been made aware and notified thereof, NCAT shall have the right, but shall not be obligated, to prosecute at its own expense any such infringements of the Patent Rights and, in furtherance of such right, NCAT may use the name of LICENSEE as a party plaintiff in any such suit without expense to LICENSEE.  The total cost of any such infringement action commenced or defended solely by NCAT shall be borne by NCAT.  Any recovery of damages by NCAT for any infringement shall be applied first in satisfaction of any unreimbursed expenses and attorneys’ fees of NCAT relating to the suit, and second toward reimbursement of LICENSEE’s reasonable expenses, including reasonable attorneys’ fees, relating to the suit.  The balance remaining from any such recovery shall be distributed to NCAT.

			

			

			

		

		
			- Page 9 -

		

		

		

		

		

		

		9.05 -     In any infringement suit instituted by either party to enforce the Patent Rights pursuant to this Agreement, the other party hereto shall, at the request and expense of the party initiating such suit, cooperate in all respects and, to the extent possible, have its employees testify when requested and make available relevant records, papers, information, samples, specimens, and the like.
		

		9.06 -     LICENSEE has the sole right in accordance with the terms and conditions herein to sub-license any alleged infringer under the Patent Rights for future infringements.

		

		9.07 -     Any of the foregoing notwithstanding, if at any time during the term of this Agreement any of the Patent Rights are held invalid or unenforceable in a decision which is not appealable or is not appealed within the time allowed, LICENSEE shall have no further obligations to NCAT with respect to its future use or sale of any product or process covered solely by such Patent Rights, including the obligation of paying royalties.  Nevertheless, LICENSEE shall not have a damage claim or a claim for refund or reimbursement against NCAT.

			

			

		

		
			ARTICLE 10 - INDEMNITY, INSURANCE, REPRESENTATIONS

					

		

		
			10.01 -     LICENSEE must indemnify, defend and hold NCAT, its trustees, officers, employees and affiliates, harmless against all claims and expenses, including legal expenses and reasonable attorneys’ fees, arising out of the death or injury to any person or persons or out of any damage to property and against any other claim, pro­ceeding, demand, expense and liability of any kind whatsoever resulting from utilization of the Patent Rights in the production, manufacture, sales, use, lease, consumption or advertisement of the Licensed Products by LICENSEE, its Affiliates  and its sub-licensees or arising from any obligations of LICENSEE hereunder, except for any claims or expenses arising out of the negligence or willful misconduct of NCAT or its officers, agents or employees.  The parties acknowledge that NCAT’s liability under this paragraph shall be subject to the limitations of the North Carolina Tort Claims Act (N.C. General Statutes Section 143-291 et. seq.).

		

		

		10.02 -     LICENSEE must maintain reasonable levels of product liability insurance as soon as it has commercialized Licensed Products.  NCAT shall have the right to require such insurance policies or certificates of insurance, at NCAT's discretion, to be made available for NCAT’s inspection.

		

		10.03 -     NCAT MAKES NO REPRESENTATIONS AND EXTENDS NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE AND VALIDITY OF PATENT RIGHTS CLAIMS ISSUED OR PENDING. FURTHER, NCAT MAKES NO REPRESENTATIONS AND EXTENDS NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED,  THAT THE USE OF INVENTION WILL NOT INFRINGE ANY PATENT OR OTHER PROPRIETARY RIGHT OF A THIRD PARTY.

			

			

			

		

		
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			ARTICLE 11 - GOVERNING LAW

		

		

		11.01 -     This Agreement is entered into in the State of North Carolina and is interpreted in accordance with and its performance governed by the laws of the State of North Carolina.

			

			

		

		
			ARTICLE 12 - NON-ASSIGNABILITY

		

		

		12.01 -     This Agreement may not be assigned by LICENSEE except in connection with the sale or other transfer of LICENSEE’s entire business or that part of LICENSEE’s business to which this license relates.  LICENSEE shall give NCAT thirty (30) days prior written notice of such assignment or transfer.  Any other assignment of this Agreement without the prior written consent of NCAT shall be void.

			

			

		

		
			ARTICLE 13 - NOTICES

		

		

		13.01 -     It shall be a sufficient giving of any notice, payment, request, report, statement, disclosure or other communication hereunder, if the party giving the same shall deposit a copy thereof in the Post Office in certified mail, postage prepaid, addressed to the other party at its address hereinafter set forth or at such other address as the other party shall have theretofore in writing designated:

			

			            NCAT                                                         LICENSEE

				

			            M. Douglas Speight                                      ______________________________

			            Director

			            Office of Technology Transfer                      ______________________________

			            North Carolina A&T State University           ______________________________

			            1601 East Market Street                              ______________________________

			            Suite 420, Fort IRC                                     ______________________________

			            Greensboro, NC  27411

			

			The date of giving any such notice, request, report, statement, disclosure or other communication, and the date of making any payment hereunder required (provided such payment is received), shall be the date of the U.S. postmark of such envelope if marked or actual date of receipt if delivered otherwise.

			

			

		

		
			ARTICLE 14 - NON-USE OF NAMES

						

					

		

		
			14.01 -     LICENSEE may not use the name of NCAT, or any trademark, trade device, service mark, symbol, or any abbreviation, contraction, or simulation thereof, owned by NCAT, nor the names of any of its employees, or any adaptation thereof, in any advertising, promotional, or sales literature without prior written consent obtained from an authorized officer of NCAT in each case, except that LICENSEE may state that 

				

				

				

			

		

		
			- Page 11 -

		

		
			

			

			

			

			

			it is licensed by NCAT under one or more of the patents and/or patent applications comprising the Patent Rights.  Failure by LICENSEE to comply with this restriction shall be deemed a material breach of this Agreement pursuant to section 7.05.  Such material breach shall be deemed cured if the offending use is terminated within ninety (90) days of LICENSEE’s receipt of a written notice from NCAT.

			

			

		

		
			ARTICLE 15 - SEVERANCE

		

		

		15.01 -     Each clause of this Agreement is a distinct and severable clause and if any clause is deemed illegal, void, or unenforceable, the validity, legality, or enforceability of any other clause or portion of this Agreement will not be affected thereby.

			

			

		

		
			ARTICLE 16 - ENTIRE AGREEMENT

		

		

		16.01 -     This Agreement, including any schedules or other attachments that are incorporated herein by reference, contain the entire agreement between the parties as to its subject matter.  This Agreement merges all prior discussions between the parties and neither party shall be bound by conditions, definitions, warranties, understanding, or representations concerning such subject matter except as provided in this Agreement or as may be specified later in writing and signed by the properly authorized representatives of the parties.  This Agreement can be modified or amended only by written agreement duly signed by persons authorized to sign agreements on behalf of the parties.

			

			

		

		
			ARTICLE 17 - WAIVER

		

		

		17.01 -     The failure of a party in any instance to insist upon the strict performance of the terms of this Agreement shall not be construed to be a waiver or relinquishment of any of the terms of this Agreement, either at the time of the party’s failure to insist upon strict performance or at any time in the future, and such term or terms shall continue in full force and effect.

			

			

		

		
			ARTICLE 18 - TITLES

		

		

		18.01 -     All titles and article headings contained in this Agreement are inserted only as a matter of convenience and reference.  They do not define, limit, extend, or describe the scope of this Agreement or the intent of any of its provisions.

			

			

		

		
			ARTICLE 19 - SURVIVAL OF TERMS

		

		

		19.01 -     The provisions of Articles 1, 4, 8, 10, 11, 13, 14 and 19 shall survive the expiration or termination of this Agreement.

			

			

			

		

		
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		          IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the dates set forth below.

		

		

		NORTH CAROLINA A&T STATE UNIVERSITY

			

		By:     /s/ N. Radhakrishnan                     

			            N. Radhakrishnan

			

		Title: Vice Chancellor for Research and Economic Development

			

		Date: August 18, 2006                              

				

				

			MATERIALS MONITORING TECHNOLOGIES INC. 

			

		By:     /s/ Jennifer Willis                            

				

			Title:   Vice President                                 

				

			Date: August 18, 2006                                

				

				

				

				

				

				

				

				

				

				

				

				

				

				

			
		
			- Page 13 -

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