Document:

ex101.htm

    Exhibit
10.1

    LICENSE
AGREEMENT

    

    

    THIS LICENSE AGREEMENT (“Agreement”),
dated as of this 29th day of
January, 2008 by and between COATES INTERNATIONAL, LTD.,
having its principal place of business at Route #34 and Ridgewood Road, Wall
Township, New Jersey 07719 (hereinafter referred to as Licensor) and WELL TO WIRE ENERGY INC.,
having its principal place of business at Suite 17, 1700 Varsity Estate Drive,
NW, Calgary, Alberta, Canada T3B2W9 (hereinafter referred to as
Licensee).

    

    BACKGROUND

     

    

    WHEREAS, Licensor owns and/or has the
right to license certain Patent Rights and Technical Information (as hereinafter
defined) relating to Licensed Products  (as hereinafter defined) used
in the design and construction of internal combustion engines employing
spherical rotary valves (the “Coates’ Spherical Rotary Valve
System”);

    

    WHEREAS, Licensor desires to grant to
Licensee certain rights under such Patent Rights and Technical Information to
use the Licensed Product in the Territory (as hereinafter defined).

    

    WHEREAS, Licensee desires the right to
use the Licensed Product in the Territory in accordance with the terms and
conditions hereinafter set forth.

    

    NOW THEREFORE, in consideration of the
agreements and covenants, and other good and valuable consideration, and the
mutual promises of the performance of the undertakings herein, it is agreed by
and between the parties hereto as follows:

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    ARTICLE 1 –
DEFINITIONS

    

    In this
Agreement, including the recitals:

    

    1.1        
“CSRV Valve
System” shall mean a cylinder head or heads for an internal combustion
engine manufactured in accordance with the Patent Rights and/or Technical
Information of the Coates’ Spherical Rotary Valve System.

    1.2        
“CSRV Valve
Seal” shall mean a valve seal for use with a CSRV Rotary Valve Sphere in
the Coates Spherical Rotary Valve System.

    1.3         “CSRV Rotary Valve
Sphere” shall mean a spherical rotary valve used in the CSRV Valve System
in accordance with the Technical Specifications.

    1.4        
“CSRV
Components” shall mean the parts that when assembled comprise the
Licensed Product.

    1.5        
“Coates CSRV Engine
for Oil and Gas Industry and Landfills” shall mean a device consisting of
an Engine linked to an electric generator for direct use in all applications
including the pumping and the compression of oil or gas,  and the
generation of electric power and engines powered by gas or other fuels
including, but not limited to, gas produced by  or from a landfill in
that industry.

    1.6        
“Dollars” and
“$” shall mean the official currency of the Government of the United
States of America in readily available funds.

    1.7        
“Engine” or
“Engines” shall mean all internal combustion engine(s) employing the
Coates Spherical Rotary Valve System.

    
                     
1.8         “Field of Use” shall
mean the use of the Coates CSRV Engine System as the power source for the
generation of electrical energy for the oil and gas industry and from
landfills.

    

    1.9        
“Coates Engine”
shall mean an internal combustion engine that employs or is comprised by one or
more Coates patented components  which produces kinetic energy or
electric power.

    1.10       “Improvement” shall
mean any improvement, change or modification to the Engines, generators, Coates
Co-Generation System, the CSRV System, the CSRV Valve Seal, CSRV Components
and/or CSRV Rotary Valve System, which may be developed, created or acquired by
either party to this Agreement, but only to the extent that the same comes
within the scope of one or more claims under the Patent Rights.

    1.11       “Licensed Product”
shall mean any component of an internal combustion engine that incorporates the
Patent Rights and/or Technical Information in its design and manufacture
incorporating the components identified in Sections 1.1, 1.2, 1.3, 1.4 and
1.5.

    1.12       “Licensee” shall mean
the Licensee as specified on the title page of this Agreement.

    1.13       “Licensor” shall mean
Licensor as specified on the title page of this Agreement.

    1.14       “Patent Rights” shall
mean the patents and patent applications, as listed in Appendix 1.14, and all
patents which may be issued pursuant to such patent applications, together with
any continuations or continuations-in-part thereof, and all patents issuing
thereon or therefrom including reissues, patents of addition and any
registration or configuration patents corresponding thereto.

    1.15       “Regulatory Approval”
shall mean, with respect to the United States of America, all governmental
approvals necessary for Licensee to use the Licensed Product in that
country.

    1.16       “Regulatory Authority”
shall mean, with respect to the United States of America the governmental
authority responsible for granting Regulatory Approval.

    1.17       “Technical
Information” shall mean all information imparted by Licensor to Licensee,
together with all proprietary information, trade secrets, skills and experience,
recorded and unrecorded, accumulated from time to time and during the term of
this Agreement, relating to a Licensed Product and all designs, drawings,
specifications and the like, owned by Licensor, insofar as the same relate to a
Licensed Product.

    1.18       “Technical
Specifications” shall mean the specifications and performance parameters
developed by Licensor for the Licensed Product.

    1.19      
“Territory”
shall mean the United States of America.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    ARTICLE II – LICENSE
GRANTED

    

    
      	
              2.1  

            	
              LICENSE GRANTED TO
      LICENSEE

            

    

    

    
      	
                 

            	
               Subject to the terms and
      conditions set forth herein, the Licensor hereby grants an exclusive
      license to use, sell and lease Licensed Products, manufactured by Licensor
      or sold and supplied exclusively by Licensor to Licensee, falling within
      the scope of the Patent Rights and/or Technical Information, within the
      Territory and with respect to the Field of Use.  The Licensee
      shall be prohibited from manufacturing the Coates CSRV Engine Systems or
      the components thereof for any use.  As a condition for this
      License, the Licensee must purchase internal combustion engines
      incorporating the CSRV Valve System, the Coates Engines and all component
      parts from the Licensor or its designee and from no other person or
      entity.  The Licensee must purchase at least one hundred and
      twenty (120) internal combustion engines incorporating the CSRV Valve
      System, the Coates Engines and all component parts from the Licensor
      during each calendar year during the term of the License; if Licensee does
      not do so, the License granted pursuant to this Agreement shall
      automatically become non-exclusive.

            

    

    

    
      	
              2.2  

            	
              LIMITATION OF LICENSE
      GRANTED

            

    

     

    
      	
               

            	
              Licensee
      shall have the right to sell, use and lease, the Licensed Product
      or components of the Licensed Product, and/or Technical Information for
      itself and its customers.

            

    

     

    
      	
              2.3  

            	
              IMPROVEMENTS

            

    

     

    
      	
               

            	
              If
      Licensee has heretofore brought about or shall hereafter during the term
      of this Agreement or within two (2) years after the expiration of this
      Agreement bring about any Improvement on the licensed product, Licensee
      shall promptly disclose such Improvement to Licensor.  If such
      Improvement is approved for a patent, Licensor shall have the first option
      within the time prescribed by law to file a patent application thereon in
      Licensor’s name.  The expense of filing, securing and
      maintaining patent protection on such Improvements shall be borne by
      Licensor and the Licensee will have a royalty free license to use each
      such Improvement.  If Licensor shall elect not to file any such
      patent application, then Licensee shall have the option to do so in its
      own name and at its own expense.

            

    

     

    
      	
               

            	
                    
                If
      Licensee obtains a patent for an Improvement, Licensee shall grant
      and hereby grants to Licensor an exclusive, royalty-free license together
      with the right to grant sublicenses to other licensees under each of said
      patent applications and any patents issuing as set forth in this
      Section.

              

            

    

    
      

      
        	
                2.4  

              	 PATENT
MARKINGS 

      

       

    

    
      	
                 

            	
              Licensee
      shall not alter, remove, obscure or cover patent markings or any other
      writing or printed words identifying Licensor as owner of the pertinent
      patents and/or patent applications.

            

    

     

    
      
        	
                2.5  

              	 FIRST
  REFUSAL 

      

       

    

    
      	
                 

            	
              If
      Licensor or the Coates Trust, in its sole discretion, decides to offer for
      sale a worldwide license to use the Licensed Product and the Licensor
      negotiates an offer from a third party to purchase such right, before
      executing a license agreement with that third party, Licensor and the
      Coates Trust shall first offer to Licensee that right to the license upon
      terms no less favorable than the Licensor was willing to accept from that
      third party for use in the oil and , gas , and industry and in relation to
      landfills.  The Licensee shall have ninety (90) days from
      receipt of written notice from the Licensor to exercise that right in
      writing and to agree to indemnify and hold harmless the Licensor from, and
      against, any and all losses, liabilities, damages and costs (including
      attorney’s fees) incurred by Licensor as a result of the Licensor
      foregoing the licensing relationship with that third
  party.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    ARTICLE III – TECHNICAL COOPERATION AND APPROVALS

     

    
      

      
        	
                3.1  

              	 TECHNICAL
      COOPERATION 

      

       

    

    
      	
               

            	
                    
                Upon
      request by Licensee, Licensor shall furnish to Licensee technical
      assistance.  Such technical assistance will be provided under
      the terms of a separate engineering
  contract.

              

            

    

     

    
      
        	
                3.2  

              	 REGULATORY
  APPROVALS 

      

       

    

    
      	
               

            	
                    
                For
      the full term of this Agreement, Licensee assumes complete
      responsibility, at Licensee’s sole cost and expense, for obtaining
      Regulatory Approval, where required, from each Regulatory Authority, for
      the use of Licensed Products.

              

            

    

     

    
      	
               

            	
                    
                Licensor
      agrees to provide Licensee with all reasonable assistance and
      cooperation in the preparation and submission of any application for
      Regulatory Approval.

              

            

    

    

    ARTICLE IV – CONFIDENTIAL
INFORMATION

     

     

    
      	
              4.1 

            	
              Licensee
      shall use all Technical Information and Technical Specifications obtained
      heretofore or hereafter from Licensor for the sole purpose of using
      Licensed Product under this
Agreement.

            

    

     

    
      	
              4.2 

            	
              Licensee
      shall hold in confidence any and all Technical Information and Technical
      Specifications disclosed, directly or indirectly, to Licensee by Licensor
      under this Agreement except that such obligation does not extend to: (a)
      Technical Information and Technical Specifications which at the time of
      disclosure are in the public domain; (b) Technical Information and
      Technical Specifications which after disclosure is published or otherwise
      becomes part of the public domain through no fault of the Licensee (but
      only after, and only to the extent that, it is published or otherwise
      becomes part of the public domain); (c) Technical Information which
      Licensee can prove was in its possession (as evidenced by Licensee’s
      written records) at the time of the disclosure and was not acquired,
      directly or indirectly from Licensor or from a third party under an
      obligation of confidence; and (d) Technical Information and Technical
      Specifications which Licensee can prove was received by it (as evidenced
      by Licensee’s written records) after the time of disclosure hereunder from
      a third party who did not require Licensee to hold it in confidence and
      who did not acquire it, directly or indirectly, from Licensor under an
      obligation of confidence.

            

    

     

    
      	
              4.3 

            	
              Licensee
      shall, upon request by Licensor, obtain from its officers, employees,
      agents and other persons having access to Confidential Information, a duly
      binding agreement to maintain such information in confidence, each such
      agreement must be in a form reasonably acceptable to
    Licensor.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    ARTICLE V –
PAYMENTS

     

     

    
       

      
        	
                5.1  

              	 LICENSING
  FEE 

      

       

    

    
      	
               

            	
               In
      consideration of the rights granted hereunder, Licensee shall pay the
      Licensor a Licensing Fee of Fifty Million Dollars ($50,000,000.00) in
      accordance with the following payment
schedule:

            

    

     

    
      	
              (a)  

            	
              A
      Non-Refundable Deposit of $1,000,000.00 on execution of this
      Agreement.

            
	 (b) 	Any
      and all previous License payments owed to Coates International, Ltd.,
      including the costs of research and development  (“R&D”)
      shall be paid in full, as a precondition to the execution of this
      Agreement.
	 (c) 	The
      balance of the Licensing Fee, after credit for the non-refundable deposit,
      of $49,000,000.00 (the “Balance”) shall be payable on a quarter yearly
      basis in an amount equal to five percent (5%) of the Licensee’s net
      profits over the next five (5) years, with the first such quarter yearly
      payment being due and payable 180 days from the delivery date referred to
      in 5.3B below.  If Licensee does a stock offering or private
      placement of $100,000,000.00 or more, Licensee must pay Licensor the
      Licensing Fee in full. If Licensee does an offering less than
      $25,000,000.00, Licensor will be paid 20% of the said offering, as a
      partial payment on the License.  The Balance must be paid in
      full on or before February 28, 2012.
	(d) 	Licensee
      must pay all costs of Prototype, R&D and the Canadian License balance
      owed to Coates and amounting to a total of $9,500,000.00 USD as a
      precondition to the execution of this
Agreement.

    

     

    
      	
              5.2  

            	
              ROYALTIES

            

    

     

    
      	 	
              Under the
      terms of this License, wherein Licensee is licensed to use, sell and lease
      the Licensed Product set forth herein, Licensee shall pay as royalties to
      Licensor 2.5% of the modified net profit (defined as sales less cost of
      sales plus $400,000), which the Licensee derives from all sources which
      use the Licensed Product including all use of the Licensed Product by
      Licensee or its subsidiaries or
affiliates.

            

    

     

    
      	
              5.3  

            	
              ENGINE AND COMPONENT
      PAYMENT

               

            

    

    
      	
              (a)

            	
              Licensee
      shall buy all  systems, engines and components referenced in
      1.1, 1.2, 1.3, 1.4 and 1.5including the engine referenced in Section 5.3B,
      from Licensor or from a licensee duly licensed by Licensor to manufacture
      engines, systems and components.  Prices to Licensee shall be
      mutually agreed upon by Licensor and Licensee and set forth in a separate
      agreement.

            

    

     

    
      	
              (b)

            	
              The
      third prototype will be collected by Licensee at its earliest convenience,
      and at its sole expense, but no later than April 30,
  2008.

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    ARTICLE VI – PATENT
ENFORCEMENT

     

    
      
        	
                6.1  

              	shall immediately inform Licensor of any actual or
      potential infringement of the Patent Rights by Licensee or any third party
      which may come to Licensee’s attention.  It shall be the
      responsibility of Licensor at its own expense and solely at Licensor’s
      discretion (which it shall not be obligated to exercise) to terminate any
      such potential actual infringement of any of the Patent
      Rights.  If Licensor shall elect not to pursue such third party,
      Licensee, may at its sole cost and expense, and with Licensor’s approval,
      take such action to terminate such infringement and Licensor agrees to
      cooperate with Licensee.

   

    

    ARTICLE VII –
REPRESENTATIONS

     

    
      	
              7.1  

            	
              Licensor
      represents and warrants as follows:

            

    

     

    
      
        	
              	
                (a) 

              	
                All
      Technical Information delivered prior to the date of execution hereof has
      been, and all Technical Information delivered hereafter will be, to the
      best of Licensor’s knowledge, substantially accurate and complete with
      respect to material matters.

              

      

    

     

    
      	
              (b) 

            	
              Licensor
      is the rightful owner of the Patent Rights and has the exclusive right to
      license all of the Patent Rights.

            

    

     

    
      	
              (c) 

            	
              Licensor
      has the power and authority to execute, deliver and perform its
      obligations under this Agreement, and neither the execution nor delivery
      of this Agreement nor the performance of its obligations hereunder will
      constitute a breach of the terms or provisions of any contract or
      agreement to which it is a party.

            

    

     

    
      	
              (d)

            	
              Licensor
      is a duly organized, validly existing corporation of the State of Delaware
      and the corporate charter of the Licensor has never been revoked or
      suspended.

            

    

     

    
      
        	
                7.2  

              	Licensee represents and warrants as
  follows:

      

    

     

    
      	
              (a)

            	
              Licensee
      is a duly organized, validly existing corporation in the Country of Canada
      and the corporate charter of the Licensee has never been revoked or
      suspended.

            

    

     

    
      
        	
                (b)

              	
                Licensee
      has the power and authority to execute, deliver and perform its
      obligations under this Agreement, and neither the execution nor delivery
      of this Agreement and the performance of its obligations hereunder will
      constitute a breach of the terms or provisions of any contract or
      agreement to which it is a
party.

              

      

    

     

    
      	
              (c) 

            	
              Licensee
      has the financial capability to pay the consideration that is required by
      Article V.

            

    

     

    
      
        	
                7.3  

              	OBLIGATIONS OF
      LICENSEE – Licensee will use its best efforts
  to:

      

          

      
        
          	
                  (a)

                	Execute all such tasks as may be
      necessary to bring about the speedy use of Licensed Products consistent
      with good business practice and the terms of this Agreement;
  and

        

         

      

    

    
      	
              (b)

            	
              Ensure
      that all steps within its power are undertaken with all reasonable speed
      to ensure that Licensed Products comply with relevant governmental
      regulations in the Field of Use in the
  Territory.

            

    

     

    
      	
              7.4  

            	
              LIMITATION OF
      LICENSOR’S WARRANTIES

            

    

     

    
      	
              (a) 

            	
              Nothing
      contained in this Agreement shall be construed as a warranty or
      representation by Licensor as to the validity or scope of any patent
      included in the Patent Rights.  Furthermore, no warranty or
      representation is made by Licensor that the use by Licensee of Licensed
      Products will be free of infringement of any patent or other rights of
      persons not a party hereto.  Licensor shall not be obliged to
      defend, indemnify or hold Licensee harmless against suit, claim, demand or
      action based on actual or alleged infringement of any patent or other
      rights belonging to a person or entity not a party to this
      Agreement.  Any such suit claim, demand or action based on
      actual or alleged infringement by Licensee shall not relieve Licensee from
      the performance of its obligations
hereunder.

            

    

     

    
      	
              (b) 

            	
              Licensor
      makes no representations, extends no warranties of any kind, expressed or
      implied, and assumes no responsibility whatever with respect to the use by
      Licensee or its vendors of products incorporating, or made by use of,
      Licensed Products, Patent Rights and/or Technical Information furnished
      under this Agreement.

            

    

    
       

      
        	
                7.5  

              	INDEMNIFICATION
      BY LICENSEE AND INSURANCE– Licensee shall indemnify and hold
      Licensor harmless from and against any and all expenses including costs
      and attorney’s fees, claims, demands, liabilities or money judgments for
      death or bodily injury arising from the use of the Licensed Product by
      Licensee and shall defend (including paying all legal fees and expenses)
      Licensor against all such claims and actions.  Licensee shall
      give Licensor notice as soon as practicable of any claim or action to
      which the foregoing provisions apply.  Licensor shall have the
      right, but not the obligation, to participate in any compromise,
      settlement or defense of any such claim or
action.

      

       

      
        
          	
                  7.6  

                	MUTUAL
      INDEMNITIES

        

      

    

     

    
      
        
          	
                   

                	
                  
                    Each
      of the parties hereto shall indemnify and save harmless the other
      of, from and against any losses, damages and costs (including legal fees
      and expenses) which the other may suffer or incur by reason of a breach of
      this Agreement.

                  

                

        

      

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
              7.7  

            	
              INSURANCE

               

            

    

    
      	
                 

            	
              Licensee
      shall provide insurance coverage in the amount, from a carrier licensed to
      provide insurance in the State of New Jersey, which is also licensed to
      provide insurance in each state that comprises the Territory and with the
      coverage (including, but not limited to, general liability, all risk and
      products liability, together with an umbrella policy with a minimum of
      $10,000,000.00) that is acceptable to Licensor, naming Licensor as an
      insured party and providing that no such insurance coverage may be
      cancelled without first providing thirty (30) days advanced written notice
      to Licensor with the right of reinstatement or
      continuation.  Within twenty (20) days of the date on which this
      Agreement is executed by the parties, and on each yearly anniversary date
      thereafter during the term of this Agreement, Licensee shall provide
      Licensor with a Certificate of Insurance evidencing the insurance coverage
      required by this Section 7.7.

            

    

     

     

    ARTICLE VIII – DURATION AND
TERMINATION

     

    
      
        	
                8.1 

              	
                Subject
      to the provisions of Section 8.4 hereof, all rights and obligations under
      this Agreement shall expire upon the expiration of the last to expire of
      the patents that comprise the  Patent Rights, any extensions
      thereof and any Improvement Patents added
  thereto.

              

      

    

     

    
      	
              8.2 

            	
              If
      either Licensee or the Licensor commits a material breach of any provision
      of this Agreement, and such breach is not cured within thirty (30) days
      after the date on which notice of a breach is sent to the breaching party,
      the non-breaching party shall have the right to terminate this Agreement,
      except that if the breach is related to the failure of Licensee to pay any
      sum that is due to Licensor and such breach is not cured within thirty
      (30) days of the date on which payment was due, then Licensor shall have
      the right, without notice to Licensee, to terminate this
      Agreement.

            

    

    
                      

      
        	
                8.3 

              	
                This
      Agreement shall terminate effective immediately
  upon:

              

      

    

     

    
      
        	
                (a) 

              	The filing by Licensee of an
      involuntary petition in bankruptcy, the entry of a decree or order by a
      court or agency or supervisory authority have jurisdiction in the premises
      for the appointment of a conservatory, receiver, trustee in bankruptcy or
      liquidation for Licensee in any insolvency, readjustment of debt,
      marshaling of assets and liabilities, bankruptcy or similar proceedings,
      or the winding up or liquidation of its affairs, and the continuance of
      any such petition, decree or order undismissed or unstated and in effect
      for a period of sixty (60) consecutive days;
or

      

    

        

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	
              (b) 

            	
              The
      consent by Licensee to the appointment of a conservator, receiver, trustee
      in bankruptcy or liquidation in any solvency, readjustment of debt,
      marshaling of assets and liabilities, bankruptcy or similar proceedings of
      or relating to Licensees, or relating to substantially all of its
      property, or if Licensee shall admit in writing, its inability to pay its
      debts generally as they become due, file a petition to take advantage of
      any applicable insolvency, reorganization, or bankruptcy statute, make an
      assignment for the benefit of its creditors or voluntarily suspend payment
      of its obligations.

            

    

     

    
      	
              8.4 

            	
              Termination
      shall not release either Licensee or Licensor from any obligation arising
      prior to such termination or any requirement pursuant to Article IV and
      Sections 7.3, 7.5, 7.6, 7.7 and 17.2 of this
  Agreement.

            

    

    
       

      
        	
                8.5 

              	In the event of any termination of
      this Agreement, other than because of Licensee’s default, Licensee shall
      be entitled to use Licensed Products for which commitments to customers
      have been made at the time of such
termination

      

       

    

    
      
        	
                8.6 

              	Any termination of this Agreement
      shall be without prejudice as to any obligation of either party to the
      other accruing prior to or at such termination.  Applicable
      royalties shall be payable under Section 5.2 of Article V with respect to
      income from the use of all Licensed Products which were manufactured or
      were in the course of being manufactured prior to such termination or for
      which Licensee had accepted orders prior to such
  termination.

      

       

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    ARTICLE IX –
WAIVER

     

    
      
        	
                9.1 

              	
                No
      provision of this Agreement shall be deemed to have been modified by any
      act of either party, its agents or employees, or by the failure to object
      to any act of the other party which may be inconsistent herewith, or
      otherwise, except by a subsequent agreement in writing, signed by both
      parties.  No waiver of a breach committed by either party in one
      instance shall constitute a waiver or a license to commit or continue
      breaches in other or like
instances.

              

      

    

    

    ARTICLE X – LIMITATIONS OF
RIGHTS AND AUTHORITY

     

    
      	
              10.1 

            	
              No
      right or title whatsoever in the Patent Rights or Technical Information is
      granted by Licensor to Licensee, or shall be taken or assumed by Licensee,
      except as is specifically set forth or granted in this
      Agreement.

            

    

     

    
      
        	
                10.2 

              	Neither party shall in any respect
      whatsoever be taken to be the partner, agent or representative of the
      other party and neither party shall have any authority to assume any
      obligation for the other party or to commit or bind the other party in any
      way.

      

       

    

    
      
        	
                10.3 

              	Neither party shall at any time
      heretofore or hereafter publicly state or imply that the terms and
      conditions specified herein, or that the relationships between Licensor
      and Licensee, are in any way different from those specifically set forth
      in this Agreement.  If requested by one party, the other party
      shall promptly supply copies of all public statements and of all
      promotional material relating to this Agreement and to Licensed
      Products.

       

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    
 

    ARTICLE XI – FORCE
MAJEURE

     

     

    
      	
              11.1 

            	
              A
      party shall not be liable for failure to perform or delay in performing
      obligations set forth in this Agreement and Licensor shall not be deemed
      in breach of its obligations, if, to the extent and for so long as such
      failure or delay or breach is due to natural disaster or any cause
      reasonably beyond the control of that party.  If a party desires
      to invoke this Article it shall notify the other promptly of such desire
      and shall use reasonable efforts to resume performance of its obligations
      as soon as is reasonably possible.  However, if performance by a
      party becomes impossible for more than twelve (12) consecutive months by
      reason thereof, this Agreement may be terminated upon either party giving
      thirty (30) days’ written notice.

            

    

    

    

    ARTICLE VII – INJUNCTIVE
RELIEF FOR BREACH:

    SEVERABILITY AND
ENFORCEABILITY

    

    
      	
              12.1 

            	
              The
      parties agree that a party may not be adequately compensated by damages at
      law for a breach or threatened breach by the other party of any of the
      provisions of this Agreement, and that the other party shall be entitled
      to injunctive relief and specific performance in connection therewith in
      addition to all other remedies.

            

    

     

    
      
        	
                12.2 

              	
                Each
      of the covenants contained in this Agreement shall be construed as
      separate covenants, and if any court shall finally determine that any such
      covenants are too broad as to the area, activity, or time set forth
      therein, said area, activity or time shall be deemed reduced to whatever
      extent the court deems reasonable and such covenants shall be enforced as
      to such reduced area, activity or time, without limiting the scope or
      enforceability of the remaining provisions of those
    sections.

              

      

    

     

    
      	
              12.3 

            	
              If
      any provision of this Agreement is declared invalid by a court of last
      resort or by any court from the decision of which an appeal is not taken
      within the time provided by law, then and in such an event, this Agreement
      will be deemed to have been terminated only as to the portion thereof
      which relates to the provision invalidated by that judicial decision, but
      this Agreement, in all other respects, will remain in
    force.

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	
              12.4 

            	
              It
      is specifically agreed that no provision that in any manner violates the
      anti-trust laws of the United States of America as now or hereafter
      enacted or construed, is intended to be or will be considered to be
      incorporated into this Agreement or will be binding upon the
      parties.

            

    

    

    ARTICLE XIII – LIMITATIONS
OF ASSIGNMENT OF LICENSEE

     

    
      	
              13.1 

            	
              The
      rights, duties and privileges of the parties hereunder shall not be
      transferred or assigned, either in whole or in part by
      Licensee.

            

    

    

    ARTICLE XIV – GOVERNING
LAW

     

    
      	
              14.1 

            	
              This
      Agreement shall be governed by and construed and enforced in accordance
      with the laws of the United States of America as to patents only and in
      all other respects with the laws of the State of New
      Jersey.  Each party hereby submits to the jurisdiction of the
      state or federal courts in the State of New Jersey in the event of any
      claims arising under this
Agreement.

            

    

    

    ARTICLE XV – ENTIRE
AGREEMENT

     

    
      	
              15.1 

            	
              This
      Agreement sets forth the entire agreement and understanding by and between
      Licensor and Licensee as to the subject matter hereof and it supersedes
      all documents, verbal consents and understandings made before the
      execution of this Agreement and none of the terms of this Agreement shall
      be amended or modified except in a written document signed by Licensor and
      Licensee.

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    
      	
              15.2 

            	
              In
      the event of an inconsistency between any of the terms of this Agreement
      and any translation thereof into another language, the English language
      version shall control.

            

    

     

    
      	
              15.3 

            	
              Should
      any portion of this Agreement be declared null and void, the remainder of
      this Agreement shall remain in full force and
  effect.

            

    

    

    ARTICLE XVI –
NOTICES

     

    
      	
              16.1 

            	
              Any
      notice, consent or approval required under this Agreement shall be in
      English and in writing, and shall be delivered to the following addresses
      (a) personally by hand, (b) by certified mail, postage prepaid, with
      return receipt requested, or (c) by telefax, confirmed by certified
      mail.

            

    

     

    If to the
Licensor:

    Coates
International, Ltd.

    2100
Highway 34 & Ridgewood Road

    Wall
Township, NJ 07719-9738

    

    Att:  George
J. Coates

    

    With a
copy to:

    

    William
J. Wolf, Esq.

    Bathgate,
Wegener & Wolf, P.C.

    One
Airport Road

    Lakewood,
NJ 08701

    

    If to
Licensee:

    

    WELL to
WIRE Energy Inc.

    Suite 17,
1700 Varsity Estate Drive, NW

    Calgary,
Alberta, Canada T3B 2W9

    

    All
notices shall be deemed effective upon the date delivered.  If either
party desires to change the address to which notice is sent to such party, it
shall so notify the other party in writing in accordance with the
foregoing.

    

    ARTICLE XVII -
MISCELLANEOUS

     

     

    
       

      
        
          	
                  17.1  

                	 HEADINGS AND
      REFERENCES 

        

      

       

    

    
      	
               

            	
              

                Headings
      in this Agreement are included herein for ease of reference only
      and have no legal effect.  References herein to Sections or
      Attachments are to Sections and Attachments to this Agreement, unless
      expressly stated otherwise.

              

            

    

     

    
      
        
          	
                  17.2  

                	 RESTRICTION ON DISCLOSURE OF TERMS AND
      PROVISIONS 

        

      

         

    

    
      
        	
                (a)

              	
                This
      Agreement shall be distributed solely to:  (i) those personnel
      of Licensor and Licensee who shall have a need to know its contents; (ii)
      those persons whose knowledge of its contents will facilitate performance
      of the obligations of the parties under this Agreement, (iii) those
      persons, if any, whose knowledge of its contents is essential in order to
      permit Licensee or Licensor to place or maintain or secure benefits under
      policies of insurance; or (iv) as may be required by law, regulation or
      judicial order.

              

      

    

     

    
      	
              (b)

            	
               In
      the event disclosure is required by law, regulation or judicial order, the
      disclosing party shall request that any disclosure be kept secret and
      shall attempt to minimize disclosure of the financial terms of this
      Agreement.  Any party may publicly announce the existence of
      this Agreement, the manner in which the parties shall operate, and the
      areas of responsibility of each party.  Except as legally
      required, no party may disclose the amount of payments or royalty rates
      without the consent of the other party.  The parties will
      consult with each other prior to any press release relating to this
      Agreement.

            

    

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

    

    IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be executed as of the date first
above written in duplicate by their duly-authorized
representatives.

     

     

    
      
        	ATTEST:  	COATES INTERNATIONAL,
      LTD.	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ George J.
    Coates	 
	 	 	GEORGE J.
    COATES	 
	 	 	President	 
	 	 	 	 

      

       

      
        
          	ATTEST:  	WELL TO WIRE ENERGY
      INC.	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/Bryan Campbell	 
	 	 	BRYAN
      CAMPBELL	 
	 	 	President	 
	 	 	 	 

        

    

                                 

    13ex102.htm

Exhibit 10.2

    ESCROW
AGREEMENT

     

    

    THIS AGREEMENT made this 11th
day of April 2008 (“Escrow Agreement”) by and among Coates International, Ltd.,
a Delaware corporation (“CIL”) having an office located at 2100 Highway 34 and
Ridgewood Road, Wall Township, New Jersey, and Well to Wire Energy, Inc.
(“W2W”), having its
office located at Suite 17, 1700 Varsity Estates Drive NW, Calgary, Alberta,
Canada, T3B 2W9 and Bathgate, Wegener and Wolf, P.C. (“Escrow Agent” or
“BWW”).

     

    WHEREAS, CIL is in the
business of designing and manufacturing engines.

     

    WHEREAS, CIL is the owner of
various patents for engine technology (“Patents”).

     

    WHEREAS, the Patents encompass
the spherical rotary valve assembly as well as other related components
including the valve seal, the exhaust system and the cooling system, and the
engine designs themselves, which together have various applications including
the use of these designs and patents for the production of engines fueled by
natural gas to be used for the generation of electricity.

     

    WHEREAS, W2W is the licensee
and CIL is the licensor under a license agreement relating to Canada (“Canadian
License Agreement”).

     

    WHEREAS, W2W desires to
purchase another license from CIL to enable W2W, under certain specified
circumstances, to use the engine technology associated with the Patents in the
United States of America as set forth in the License Agreement attached hereto
as Exhibit A (the “U.S. License Agreement”).

     

    WHEREAS, CIL wishes to enter
into the U.S. License Agreement with W2W.

     

    WHEREAS, W2W wishes to enter
into the U.S. License Agreement with CIL.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    WHEREAS, both CIL and W2W
agree that the U.S. License Agreement shall remain in escrow and, although
executed, shall not be released to W2W until it has fulfilled the terms set
forth herein.

     

    NOW, THEREFORE, in
consideration of the promises contained herein, the parties agree as
follows:

    LICENSE
IN ESCROW

     

    
      	
              1.  

            	
              The
      U.S. License Agreement that has been signed by CIL and W2W shall be
      delivered in escrow to Bathgate, Wegener and Wolf, P.C. (“Escrow Agent”
      and/or “BWW”) and shall be released to W2W upon payment of the monies
      specified herein.

            

    

    RELEASE
PAYMENT

     

    
      	
              2.  

            	
              In
      order for the U.S. License Agreement to be released from escrow W2W must
      pay to CIL $9,500,000.00 (“Release Payment”) by June 30, 2008 (“Payment
      Period”).  The Release Payment consists of the following
      components: (a) $8,500,000.00 owed by W2W to CIL as partial payment for
      the Canadian License Agreement and (b) $1,000,000.00 as the initial
      payment required by the U.S. License Agreement.  It is
      contemplated by CIL and W2W that during the Payment Period money in
      unspecified amounts will be delivered to CIL periodically as partial
      payment of the Release Payment until the Release Payment has been paid in
      full.   All money paid by W2W under this paragraph shall be
      nonrefundable when received by CIL.

            

    

    
      	
              3.  

            	
              The
      failure of W2W to pay the Release Payment to CIL within the Payment Period
      shall cause the Canadian License Agreement to automatically be amended,
      without the necessity of any further writing signed by the parties, so
      that it shall be non-exclusive, subject to reinstatement as an exclusive
      license pursuant to paragraph 4.

            

    

    
      	
              4.  

            	
              Provided
      that W2W shall have paid $500,000.00 on account of the Release Payment to
      CIL within the Payment Period, W2W shall have until September 30, 2008
      (“Extended Payment Period”), to pay the balance of the Release
      Payment.  If W2W pays the entire Release Payment to CIL within
      the Extended Payment Period the exclusivity of the Canadian License
      Agreement shall be reinstated.

            

    

    
      	
              5.  

            	
              The
      failure of W2W to pay the Release Payment to CIL within the Payment Period
      or, if extended by paragraph 4, within the Extended Payment Period, shall
      constitute a breach of this Escrow Agreement, the Canadian License
      Agreement and the U.S. License Agreement and shall entitle CIL to retain
      all money paid by W2W pursuant to Paragraph 2 and paragraph 3 of this
      Escrow Agreement and immediately, without notice to W2W, to cancel this
      Escrow Agreement, the Canadian License Agreement and the U.S. License
      Agreement without W2W having any right of redemption or
      reinstatement.

            

    

    
      	
              6.  

            	
              All
      amounts payable under this Escrow Agreement shall be paid in U.S. Dollars
      in immediately available federal
funds.

            

    

    
      	
              7.  

            	
              All
      payments under this Escrow Agreement shall be remitted to CIL at its
      offices located at 2100 Highway 34 and Ridgewood Road, Wall Township, New
      Jersey.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    NO
LICENSE

     

    
      	
              8.  

            	
              W2W
      acknowledges and agrees that the execution of this Escrow Agreement by CIL
      shall not grant a license to W2W and that only the subsequent release of
      the U.S. License Agreement from Escrow upon the payment in full of the
      Release Payment by W2W shall result in a license being granted to W2W
      pursuant to the terms of the U.S. License
  Agreement.

            

    

     

    WAIVER

     

    
      	
              9.  

            	
              No
      provision of this Escrow Agreement shall be deemed to have been modified
      by any act of CIL, its agents or employees, or by the failure of CIL to
      object to any act of W2W which may be inconsistent herewith, or otherwise,
      except by a subsequent agreement in writing signed by both
      parties.  No waiver of a breach committed by either party in one
      instance shall constitute a waiver or a license to commit or continue
      breaches in other or like
instances.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    LIMITATIONS OF RIGHTS AND
AUTHORITY

     

    
      	
              10.  

            	
              No
      right or title whatsoever in the patent rights, licensed products,
      Technical Specifications or Technical Information (as defined in the U.S.
      License Agreement) is granted by CIL to W2W under this Escrow Agreement,
      or shall be taken or assumed by W2W, except as is specifically set forth
      or granted in the U.S. License Agreement and no such rights are granted by
      this Escrow Agreement.

            

    

    
      	
              11.  

            	
              Neither
      party shall in any respect whatsoever be taken to be the partner, agent or
      representative of the other party and neither party shall have any
      authority to assume any obligation for the other party or to commit the
      other party in any way.

            

    

    
      	
              12.  

            	
              Neither
      party shall at any time heretofore or hereafter publicly state nor imply
      that the terms and conditions specified herein, or the relationships
      between CIL and W2W, are in any way different from those specifically set
      forth in this Escrow Agreement or in the Canadian License
      Agreement.  If requested by one party, the other party shall
      promptly supply the first party with copies of all public statements and
      of all promotional material relating to this Agreement, the Canadian
      License Agreement or the U.S. License
Agreement.

            

    

     

    INJUNCTIVE
RELIEF FOR BREACH,

     

    SEVERABILITY AND
ENFORCEABLITY

     

    
      	
              13.  

            	
              W2W
      agrees that CIL may not be adequately compensated by damages at law for a
      breach or threatened breach by W2W of any of the provisions of this Escrow
      Agreement, and that CIL shall be entitled to injunctive relief and
      specific performance in connection therewith, in addition to all other
      remedies.

            

    

    
      	
              14.  

            	
              Each
      of the covenants contained in this Escrow Agreement shall be construed as
      separate covenants and if any court of last resort shall determine that
      any such covenant is too abroad that covenant shall be deemed reduced to
      whatever extent the court deems reasonable and such covenant shall be
      enforced without limiting the scope or enforceability of the remaining
      provisions of those sections.

            

    

    
      	
              15.  

            	
              If
      any provision of this Escrow Agreement is declared invalid by a court of
      last resort or by any court form the decision of which an appeal is not
      taken within the time provided by law, then, and in such an event, this
      Escrow Agreement will be deemed to have been terminated only as to the
      portion thereof which relates to the provision invalidated by that
      judicial decision, but this Agreement, in all other respects, will remain
      in force.

            

    

    
      	
              16.  

            	
              It
      is specifically agreed that no provision of this Escrow Agreement shall be
      in any manner violative of the laws of the United Sates of America or
      other governmental authority within the United States of America and each
      such law is intended to be, and will be considered to be, incorporated
      into this Escrow Agreement and will be binding upon the
      parties.

            

    

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    LIMITATION OF ASSIGNMENT BY
W2W

     

    
      	
              17.  

            	
              The
      rights, duties and privileges of W2W hereunder shall not be transferred or
      assigned by it, either in part or in whole, without the prior written
      consent of CIL, which may be denied, withheld or conditioned by CIL in its
      sole discretion.

            

    

     

    GOVERNING
LAW

     

    
      	
              18.  

            	
              This
      Escrow Agreement shall be governed by, construed and enforced in
      accordance with the laws of the Sate of New Jersey and each party herby
      submits to the exclusive jurisdiction of any state or federal court
      located in the State of New Jersey in the event of any claims arising
      under this Escrow Agreement.

            

    

     

    ENTIRE
AGREEMENT

     

    
      	
              19.  

            	
              This
      Escrow Agreement sets forth the entire agreement and understanding by and
      between CIL and W2W as to the subject matter hereof and has priority over
      all documents, verbal consents and understandings made before the
      execution of this Escrow Agreement, and none of the terms of this Escrow
      Agreement shall be amended or modified except in a written document signed
      by CIL and W2W.

            

    

    
      	
              20.  

            	
              In
      the event of any inconsistency between any of the terms of this Escrow
      Agreement and any translation thereof into another language, the English
      language version shall control.

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    NOTICES

     

    
      	
              21.  

            	
              Any
      notice, consent or approval required under this Escrow Agreement shall be
      in English and in writing, and shall be delivered to the following
      addresses (a) personally by hand, (b) by certified mail, postage prepaid,
      with return receipt requested, (c) by overnight delivery service, or (d)
      by telefax, confirmed by such certified
mail:

            

    

     

    
       

      
        	If to
      CIL: 	Coates
      International, Ltd.	 	 
	 	Highway 34 &
      Ridgewood Road	 	 
	 	Wall Township,
      NJ  07719-9738	 	 
	 	Telephone:   (732)
      449-7717	 	 
	 	Telefax: (732)
      449-7736	 	 
	 	 	 	 
	If W2W:	Well To Wire Energy,
      Inc.	 	 
	 	Suite 17	 	 
	 	1700 Varsity Estates
      Drive NW	 	 
	 	Calgary	 	 
	 	Alberta, Canada, T3B
      2W9	 	 
	 	Telephone: (403)
      288-3647	 	 
	 	Telefax:(403)
      286-3696	 	 
	 	 	 	 
	If BWW	Bathgate, Wegener
      and Wolf, P.C.	 	 
	 	1 Airport
    Road	 	 
	 	Lakewood,
      NJ  08701	 	 
	 	Telephone: (732)
      363-0666	 	 
	 	Telefax: (732)
      3639864	 	 

      

       

    

    All
notices shall be deemed effective upon the date delivered if by hand or
overnight delivery service and three days after being mailed.  If
either party desires to change the address to which notice is sent to such
party, it shall so notify the other party in writing in accordance with the
foregoing.

     

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    MISCELLANEOUS

     

    
      	
              22.  

            	
              Headings and
      References.  Headings in this Escrow Agreement are
      included herein for ease of reference only and have no legal
      effect.  References herein to Sections or Attachments are to
      Sections and Attachments to this Escrow Agreement, unless expressly stated
      otherwise.

            

    

    
      	
              23.  

            	
              Restriction on
      Disclosure of Terms and
Provisions.

            

    

    
      	
              a.  

            	
              This
      Escrow Agreement shall be distributed solely
to:

            

    

    
      	
              i.  

            	
              those
      personnel of CIL and W2W who shall have a need to know its
      contents;

            

    

    
      	
              ii.  

            	
              those
      persons whose knowledge of its contents will facilitate performance of the
      obligations of the parties under this Escrow
  Agreement;

            

    

    
      	
              iii.  

            	
              those
      persons, if any, whose knowledge of its contents is essential in order to
      permit W2W or CIL to place or maintain or secure benefits under policies
      of insurance; or

            

    

    
      	
              iv.  

            	
              as
      may be required by law, regulation or judicial
  order.

            

    

    
      	
              b.  

            	
              In
      the event disclosure is required by law, regulation or judicial order, the
      disclosing party shall request that any disclosure be kept secret and
      shall attempt to minimize disclosure of the financial terms of this Escrow
      Agreement.  Any party may publicly announce the existence of
      this Escrow Agreement, the manner in which the parties shall operate, and
      the areas of responsibility of each party.  Except as legally
      required, no party may disclose the financial terms of this Escrow
      Agreement, the Canadian License Agreement or the U.S. License Agreement
      without the consent of the other party.  The parties will
      consult with each other prior to any press release relating to this Escrow
      Agreement.

            

    

    
      	
              24.  

            	
              Definitions.  Any
      word not specifically defined herein shall have the meaning ascribed to it
      in the U.S. License Agreement.

            

    

    
      	
              25.  

            	
              Binding
      Effect.  This Escrow Agreement shall accrue to the
      benefit of, and shall be binding upon, the parties hereto and their
      respective successors and assigns.

            

    

     

    NO LIMIT ON
LIABILITY

     

    
      	
              26.  

            	
               This
      Escrow Agreement does not limit the obligation of W2W under either the
      Canadian License Agreement or the U.S. License Agreement; instead, W2W
      shall be required to comply with each of the provisions of each of those
      agreements and this Escrow
Agreement.

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    ROLE OF ESCROW
AGENT

     

    
      	
              27.  

            	
              Upon
      receipt of a written demand for the U.S. License Agreement made by W2W
      pursuant to this Escrow Agreement, the Escrow Agent shall promptly mail a
      copy thereof (by registered or certified mail, return receipt requested)
      to CIL which shall have the right to object to the release of the U.S.
      License Agreement, by delivery to the Escrow Agent of written notice of
      objection within ten (10) days after the date of the Escrow Agent’s
      mailing of such notion to CIL, but not thereafter.  Upon receipt
      of such notice of objection, the Escrow Agent shall promptly mail a copy
      thereof (by registered or certified mail, return receipt requested) to
      W2W.

            

    

    
      	
              28.  

            	
              In
      the event that (a) the Escrow Agent shall have received a notice of
      objection as provided for in paragraph 27 above within the time therein
      prescribed, or (b) any disagreement or dispute shall arise between or
      among any of the parties thereto resulting in adverse claims and demands
      being made for the U.S. License Agreement, whether or not litigation has
      been instituted, then, in any such event, at the Escrow Agent’s option,
      (i) the Escrow Agent may refuse to comply with any claims or demands on it
      and continue to hold the U.S. License Agreement until the Escrow Agent
      receives written notice signed by W2W and CIL, directing the release of
      the U.S. License Agreement, in which case the Escrow Agent may then
      release the U.S. License Agreement in accordance with said direction, and
      the Escrow Agent shall not be or become liable in any way or to any person
      for its refusal to comply with such claims or demand; or (ii) in the event
      the Escrow Agent shall receive a written notice advising that litigation
      over the release of the U.S. License Agreement has been commenced, the
      Escrow Agent may deposit the U.S. License Agreement with the clerk of the
      court in which said litigation is pending , or (iii) the Escrow Agent may
      (but shall not be required to) take such affirmative steps as it may, at
      its option, elect in order to substitute another impartial party to hold
      the U.S. License Agreement or to deposit the U.S. License Agreement with a
      court of competent jurisdiction and /or to commence an action for
      interpleader, the costs thereof to be borne by whichever of W2W or CIL is
      deemed, by the court, to be entitled to the U.S. License Agreement and
      thereupon the Escrow Agent shall be released of any and all liability
      thereunder.  W2W and CIL jointly and severally agree to
      reimburse the Escrow Agent for any and all expenses incurred by it in
      relation to its duties hereunder, including, but not limited too,
      attorneys fees (either paid to retained attorneys or amounts representing
      the fair value of legal services rendered to
  itself).

            

    

    
      	
              29.  

            	
              It
      is expressly understood that the Escrow Agent acts hereunder as an
      accommodation to W2W and CIL and as a depository only and is not
      responsible or liable in any manner whatever for the sufficiency,
      correctness, genuineness or validity of any instrument deposited with it,
      or for the form or execution of such instruments or for the identity,
      authority or right of any person executing or depositing the same or for
      the terms and conditions of any instrument pursuant to which the Escrow
      Agent or the parties may act.

            

    

    
      	
              30.  

            	
              The
      Escrow Agent shall not have any duties or responsibilities except those
      set forth herein and shall not incur any liability in acting upon any
      signature, notice, request, waiver, consent, receipt or other paper or
      document believed by the Escrow Agent to be genuine, and the Escrow Agent
      may assume that any person purporting to give it any notice on behalf of
      any party in accordance with the provisions hereof has been duly
      authorized to do so.

            

    

    
      	
              31.  

            	
              The
      Escrow Agent may act or refrain from acting in respect of any matter
      referred to herein in full reliance upon and by and with the advice of
      counsel which may be selected by it (including any member of its firm) and
      shall be fully protected in so acting or refraining from acting upon the
      advice of such counsel.

            

    

    
      	
              32.  

            	
              W2W
      and CIL hereby jointly and severally indemnify, and they shall defend and
      save the Escrow Agent harmless from any and all loss, damage, claims,
      liabilities, judgments, and other cost and expense of every kind and
      nature which may be incurred by the Escrow Agent by reason of its
      acceptance of its role as Escrow Agent, and its performance under this
      Escrow Agreement (including, without limitation, attorneys’ fees either
      paid to retained attorneys or amounts representing the fair value of legal
      services rendered to itself).

            

    

    
      	
              33.  

            	
              The
      Escrow Agent shall not be responsible for any mistake of fact, error of
      judgment or any act or failure to act on its part except in the case of
      its own willful default or gross negligence.  The Escrow Agent
      shall be automatically released form all responsibility and liability
      under this Escrow Agreement upon the Escrow Agent’s delivery or deposit of
      the U.S. License Agreement in accordance with the provisions of this
      Escrow Agreement.

            

    

    
      	
              34.  

            	
              W2W
      agrees that if it shall, pursuant to paragraph 27 above, deliver to the
      Escrow agent a written demand for the U.S. License Agreement that,
      promptly after delivery such demand to the Escrow Agent, it shall deliver
      a copy of such demand to CIL, together with a statement of the facts and
      circumstances underlying the demand, provided, however, that nothing in
      this paragraph 34 shall have any effect whatsoever upon the Escrow Agent’s
      rights, duties and obligations under the preceding provisions of this
      Escrow Agreement.

            

    

    
      	
              35.  

            	
              The
      Escrow Agent may resign upon thirty (30) days’ written notice to the
      parties to this Escrow Agreement.  If a successor escrow agent
      is not appointed within a thirty (30) day period following such
      resignation by mutual written agreement of the parties, the Escrow Agent
      my petition a court of competent jurisdiction to name a
      successor.  The costs and legal fees related to such action that
      are incurred by the Escrow Agent shall be paid by W2W and CIL on an equal
      basis.

            

    

    
      	
              36.  

            	
              This
      Escrow Agreement shall terminate and the Escrow Agent shall be discharged
      of all responsibility hereunder at such time as the Escrow Agent shall
      have completed its duties hereunder or as otherwise provided
      herein.

            

    

    
      	
              37.  

            	
              The
      escrow Agent or any member of its firm shall be permitted to act as
      counsel for CIL in any dispute or other matter between CIL and W2W
      including but not limited to any dispute as to the release of the U.S.
      License Agreement or otherwise whether or not the Escrow Agent is in
      possession of the U.S. License
Agreement.

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    IN WITNESS WHEREOF, the
parties hereto have caused this Escrow Agreement to be executed as of the date
first above written above in duplicate by their duly authorized
representatives.

     

    
      
        	ATTEST:       	COATES INTERNATIONAL,
      LTD.	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ George J.
    Coates	 
	 	 	GEORGE
      J. COATES	 
	 	 	PRESIDENT, Secretary    	 
	 	 	 	 

      

    

    
       

      
        
          	ATTEST:       	WELL TO WIRE ENERGY,
      INC.	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ Bryan
      Campbell	 
	 	 	BRYAN
      CAMPBELL	 
	 	 	PRESIDENT	 
	 	 	 	 

        

         

      

    

    
      
        
          	ATTEST:       	WELL TO WIRE ENERGY,
      INC.	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/
      Lee Perry  	 
	 	 	
                  LEE
      PERRY

                	 
	 	 	SVP	 
	
                                                             Business
      and Development

                	 

        

        
          
            	ATTEST:       	ESCROW AGENT	 
	 	BATHGATE, WEGENER AND WOLF,
      P.C.	 
	 	 	 	 
	
                     

                  	
                    By:
      

                  	/s/
      William J. Wolf, Esq	 
	 	 	
                    WILLIAM
      J. WOLF, ESQ.

                  	 
	 	 	 	 
	
                     

                  	 

          

          
 

           

          9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]