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			Exhibit 10.1

				

			

		

		
			ACQUISITION OF NON-DESTRUCTIVE ASSESSMENT TECHNOLOGIES, INC

					by

				

				
						
							 MATERIAL TECHNOLOGIES, INC

					

			

				

					AGREEMENT AND PLAN OF ACQUISITION

				

				

			

		
			This Agreement and Plan of Acquisition (“Agreement”) is entered into by and between Non-Destructive Assessment Technologies, Inc, a Florida corporation (“NDATI”), UTEK CORPORATION, a Delaware corporation (“UTEK”), and Material Technologies, Inc, a Delaware corporation (“MTNA”).

				

				WHEREAS, UTEK owns 95% of the issued and outstanding shares of common stock of NDATI (“NDATI Shares”);

				

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

				

				WHEREAS, the parties desire to provide for the terms and conditions upon which NDATI will be acquired by MTNA in a stock-for-stock exchange (“Acquisition”) in accordance with the respective corporation laws of their state, upon consummation of which all NDATI Shares will be owned by MTNA, and all issued and outstanding NDATI Shares will be exchanged for Convertible Preferred stock of MTNA with terms and conditions as set forth more fully in this Agreement; 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, all NDATI Shares shall be acquired from UTEK by MTNA in accordance with the respective corporation laws of their states and the provisions of this Agreement and the separate corporate existence of NDATI, as a wholly-owned subsidiary of MTNA, shall continue after the closing.

				

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

				

				

				

				

				

			

		

		
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			1.02       The Consideration.

				

			              Exchange of Stock. At the Effective Date, by virtue of the Acquisition, all of the NDATI Shares that are issued and outstanding at the Effective Date shall be exchanged for 6,750,000 unregistered shares of common stock of MTNA

			

			

			

		

		
				
						Shareholder

						
						Number of Common MTNA Shares

					
	
						UTEK Corporation

						
						6,412,500

					
	
						Aware Capital Consultants

						
						337,500

					

		

		
			
				1.03       Effect of Acquisition.

					

				              (a)       Rights in NDATI Cease. At and after the Effective Date, the holder of each certificate of common stock of NDATI shall cease to have any rights as a shareholder of NDATI.

				

				              (b)       Closure of NDATI Shares Records. From and after the Effective Date, the stock transfer books of NDATI shall be closed, and there shall be no further registration of stock transfers on the records of NDATI.

				

				1.04       Closing. Subject to the terms and conditions of this Agreement, the Closing of the Acquisition shall be the date of the last executed signature affixed to this Agreement, but in no event later than _______________, 2007.

			

		

		
			ARTICLE 2

					REPRESENTATIONS AND WARRANTIES

			

		

		
			

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

				

				              (a)       Organization. NDATI 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 NDATI 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 shareholder of NDATI 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 NDATI 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 NDATI consists of 1,000,000 shares of common stock with a par value $.01 per share. At the date of this Agreement, 1,000 NDATI Shares are issued and outstanding as follows:

			

			

				
						
							Shareholder   

						

						
						
							Number of NDATI Shares

						

					
	  	
	
						
							UTEK Corporation          

								Aware Capital Consultants

								Total                                

						

						
						
							950

								50

								1,000

						

					

			

			

			

			

		

		
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			All issued and outstanding NDATI 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. NDATI is not authorized to issue any preferred stock. All dividends on NDATI 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 NDATI to issue any NDATI Shares or securities convertible, exercisable or exchangeable into NDATI Shares to anyone for any reason whatsoever. None of the NDATI Shares is subject to any charge, 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 NDATI or UTEK is a party and will not create a default under any such obligation or under any Agreement to which NDATI or UTEK is a party.  This Agreement constitutes a legal, valid and binding obligation of NDATI, 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 NDATI’s 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 NDATI.

			

			              (f)       No Conflicting Agreements. Neither the execution and delivery of this Agreement nor the fulfillment of or compliance by NDATI 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, NDATI’s or UTEK’s articles of incorporation or bylaws, the Technology, the License Agreement, or any agreement, contract, instrument, order, judgment or decree to which NDATI or UTEK is a party or by which NDATI 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 NDATI and UTEK or performance of the obligations of NDATI and UTEK hereunder or under any other agreement to which NDATI 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 NDATI or its assets or business.

			

			              (h)       Title to Assets. NDATI 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 NDATI.  Except as set forth on Schedule 2.01(h),  NDATI has 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.  On the Closing Date, NDATI will 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 and nature whatsoever.

			

			

			

			

		

		
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			              (i)       Intellectual Property

			
			
				
					    (1)  Iowa State University Research Foundation (“ISURF”) 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.

						

						    (2)  The License Agreement between ISURF and NDATI covering the Inventions is legal, valid, binding and will be enforceable in accordance with its terms as contained in Exhibit A.  NDATI has full power and authority to assign all of its rights hereunder and no sublicenses thereunder have occurred or will occur prior to closing.

						

						    (3)   Except as otherwise set forth in this Agreement, MTNA acknowledges and understands that NDATI 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; however, NDATI and UTEK have no knowledge of pending or threatened claims by, or any basis for any claims by, any third parties alleging such infringement or other violation, and

						

						    (4)   Except as otherwise expressly set forth in this Agreement, NDATI 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 NDATI. NDATI has no assets (except as set forth in Section 2.01 (h)), 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 NDATI, 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 NDATI’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. NDATI 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 NDATI except as specifically set forth in the financial statements and the other attached schedules and exhibits.  There is no information known to NDATI or UTEK that would prevent the financial statements of NDATI 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 NDATI 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 NDATI 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 NDATI by any taxing authority, have been properly paid, except to the extent reflected on NDATI’s financial statements, where NDATI 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. NDATI has not received any notice of assessment or proposed assessment in connection with any tax returns, nor is NDATI 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. NDATI has not extended or waived the application of any statute of limitations of 

				

				

				

			

		

		
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			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. NDATI 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 NDATI. NDATI 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, NDATI has not, and without the written consent of MTNA, it will not have:

			
				
					    (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 NDATI;

						

						    (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)       Done or omitted to do any act, or 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 NDATI; or

						

						    (8)       Taken any action, which could reasonably be foreseen to make any of the representations or warranties made by NDATI 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 NDATI and a third party. A complete and accurate copies of all material agreements, contracts and commitments of the following types, whether written or oral, to which it is a party or is bound (Contracts), has been provided to MTNA.  Such executed Contracts are, and such contemplated Contracts will be, at the Closing Date, in full force and effect without modifications or amendment and constitute the legally valid and binding obligations of NDATI in accordance with their respective terms and will continue to be valid and enforceable following the Acquisition. NDATI is not, and will not be at the Closing Date, 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 NDATI; and

						

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

				

			

			

			

			

			

			

			

		

		
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					    (3)       The complete final draft of the License Agreement has 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 NDATI’s property; and

						

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

				

			

			

			

			              (o)       Compliance with Laws. NDATI 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 NDATI or UTEK, threatened against NDATI, the Technology, or License Agreement, affecting its assets or business (financial or otherwise), and neither NDATI 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 NDATI 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 NDATI or the transactions contemplated hereby.

				

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

				

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

				

				              (s)       Employee Benefit Plans.  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 NDATI 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)       Full Disclosure.   All representations or warranties of UTEK and NDATI are true, correct and complete in all material respects to the best of UTEK’s and NDATI’s 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 and schedules 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.

				

				

				

			

		

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

			

			              (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 its 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 MTNA’s part is necessary in order to execute, deliver, consummate and perform its obligations hereunder; and it has 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 137,639,715 (One Hundred Thirty-Seven Million, Six Hundred, Thirty-Nine Thousand, Seven Hundred, Fifteen) MTNA Shares (which will include the 6,750,000 (Six Million, Seven Hundred Fifty Thousand) 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 14,512,804 common shares of MTNA and will be acquiring an additional 6,750,000 unregistered shares of MTNA totaling 21,262,804 unregistered shares; and based on a total of 137,639,715 issued shares this total will represent a 15.4% 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 equity securities by the Company to any of its current list of management and directors as of the Effective Date.

			

			              (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, the corporate charter 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’s and NDATI’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 on such statements; 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 it in this Agreement or in the exhibits to this Agreement or any document delivered by it or on its 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, to the knowledge of MTNA, 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 Patents and develop same for the market. MTNA further agrees that it will provide UTEK with copies of progress reports made to the university as required under the subject license agreement on a quarterly basis.

			

			              (n)       Investment Company. 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

			

			

			

		

		
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			total 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 any distribution of such shares. Except a permitted by law, it has 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 officers 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, amended, and the rules and regulations there under.

			

			              (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, 24 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 direct its transfer agent as necessary for such issuance of an opinion regarding the sale of such restricted shares under Rule 144 or other available exemption from registration.  

			
              (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, if 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 parties 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 with the prior written approval of MTNA or of NDATI or UTEK, as the case may be, 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, upon prior written notice to the other parties, 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 NDATI Shares, NDATI in the License Agreement, or the right of NDATI 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 shall have been prosecuted in good faith with reasonable diligence.

				

				4.06.       The License Agreement shall have been executed and delivered by all parties thereto and,  to the best knowledge of UTEK and NDATI, the License Agreement shall be valid and in full force and effect without any default under such agreement.

				

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

				

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

				

				

				

				

			

		

		
			Page 10 of 17

		

		
			

			

			

			

			

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

			

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

			

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

			

			              (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 NDATI in Florida;

			

			              (f)       the original corporate minute books of NDATI, including the articles of incorporation and bylaws of NDATI, 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 NDATI, and

			

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

			

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

			

			4.09.       MTNA shall receive the resignations of each director and officer of NDATI effective the Closing Date.

			

		

		
			ARTICLE 5

				INDEMNIFICATION AND LIABILITY LIMITATION

				

		

		
			5.01.       Survival of Representations and Warranties.

					

				              (a)       The representations and warranties made by UTEK and NDATI 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 

				

				

				

			

		

		
			Page 11 of 17

		

		
			

			

			

			

			

			attorneys fees and expenses (“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 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 

				

				

				

			

		

		
			Page 12 of 17

		

		
			

			

			

			

			

			arbitration made in good faith and not infected with fraud or other misconduct shall 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 Delaware 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 17

			

			
				

				

				

				

				

				MATERIAL TECHNOLOGIES, INC.                         NON-DESTRUCTIVE ASSESSMENT

					                                                                                         TECHNOLOGIES, INC.

					

					

				By: ___________________________                              By: ____________________________

				      Robert M. Bernstein,                                                          Jennifer Willis

				      Chief Executive Officer                                                       President

				

				      Address:                                                                            Address:

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

				      Los Angeles, CA 90049                                                    Tampa, Florida 33605

				

				Date: _________________________                                Date: _________________________

				

				

				

				UTEK CORPORATION                                                  UTEK CORPORATION

					

					

				By: ___________________________                                By: ___________________________

				      Clifford M. Gross,                                                                Douglas A. Schaedler

				      Chief Executive Officer                                                         Chief Compliance Officer

				

				       Address:                                                                              Address:

				       2109 E. Palm Avenue                                                          2109 E. Palm Avenue

				       Tampa, Florida 33605                                                         Tampa, Florida 33605

				

				Date: _________________________                                 Date: _________________________

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

			

		

		
			
				Page 14 of 17

				

				

				

				

				

				

				

				

				

				

			

		

		
			

			

			

			

			

			

			

			

			

		

		
			EXHIBIT A

				Outstanding Agreements

				

				License Agreement from Iowa State University Research Foundation (ISURF)

		

		
			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

		

		
			Page 15 of 17

		

		
			

			

			

			

			

		

		
			EXHIBIT B

					

					NON-DESTRUCTIVE ASSESSMENT TECHNOLOGIES, INC
				

				

				Financial Statements as of

				______________________, 2007

			

			

			

			

			

			

		

		
			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

		

		
			Page 16 of 17

		

		
			

			

			

			

			

		

		
			EXHIBIT C

					

					Material Technologies, Inc.

				

				FORM 10-Q

				

				QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

				SECURITIES EXCHANGE ACT OF 1934

				

				For the period ended March 31, 2007

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			Page 17 of 17ex4_1.htm

    
      
        

      

    

     

    STATE
      OF NEVADA

    
      	
              ROSS MILLER

              Secretary
                of State

            	 	
              

            	 	
              SCOTT W. ANDERSON

              Deputy
                Secretary for Commercial
                Recordings

            

    

    
      OFFICE
        OF THE

    

    SECRETARY
      OF STATE

     

    
      Filing
        Acknowledgement

    

    
      

    

    
      	 	 	 	 	
              June
                25, 2007

            
	 	 	 	 	 
	
              Job
                Number

            	 	
              Corporation
                Number

            	 	 
	
              C20070625-2136

            	 	
              C173-1985

            	 	 
	 	 	 	 	 
	
              Filing
                Description

            	 	
              Document
                Filing Number

            	 	
              Date/Time
                of Filing

            
	
              Designation

            	 	
              20070433952-45

            	 	
              June25,
                2007 03:15:39PM

            

    

    

    
      	
              Corporation
                Name

            	 	
              Resident
                Agent

            
	 	 	 
	
              BLUEGATE
                CORPORATION

            	 	
              CORPORATION
                TRUST COMPANY OF NEVADA

            

    

    
      

    

    
      

    

    
      The
        attached document(s) were filed with the Nevada Secretary of State, Commercial
        Recordings Division. The filing date and time have been affixed to each
        document, indicating the date and time of filing. A filing number is also
        affixed and can be used to reference this document in the
        future.

    

    
      

    

    
      	 	 	
              Respectfully,

            
	 	 	
              /s/
                Ross Miller

            
	 	 	
              ROSS MILLER

            
	 	 	
              Secretary
                of State

            

    

    
       

    

    
      Commercial
        Recording Division

    

    
      202
        N.
        Carson Street

    

    
      Carson
        City, Nevada 89701-4069

    

    
      Telephone
        (775) 684-5708

    

    
      Fax
        (775)
        684-7138

    

    
      

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

    

    
      
         

        STATE
          OF NEVADA

        
          	
                  ROSS MILLER

                  Secretary
                    of State

                	 	
                   

                	 	
                  SCOTT W. ANDERSON

                  Deputy
                    Secretary for Commercial
                    Recordings

                

        

        
          OFFICE
            OF THE

        

        SECRETARY
          OF STATE

        
 

      

    

    
      	
              BLUEGATE- DANA KIRKPATRICK

            	
              June
                26, 2007

            
	
              701
                NORTH POST OAK RD STE 630

            	 
	
              HOUSTON,
                TX 77024

            	 

    

    
      

    

    
      

    

    
      
        	
                Job

              	
                C20070625-2136

              

      

    

    
      Number:

    

    
      

    

    
      Job
        Contents:

    

    
      
        	
              	
                NV
                  Corp Filing Acknowledgement(s):

              	
                1

              

      

    

    
      
        	
              	
                File
                  Stamped Copy(s):

              	
                1

              

      

    

    
      

    

    
      Special
        Handling Instructions:

    

    
      

    

    
      DESIGNATION
        1FS REG MAIL 6-26-07 CM

    

    
       

    

    
      

    

    
      

    

    
      BLUEGATE- DANA KIRKPATRICK

    

    
      701
        NORTH
        POST OAK RD STE 630

    

    
      HOUSTON,
        TX 77024

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    STATE
      OF NEVADA

    
      	
              ROSS MILLER

              Secretary
                of State

            	 	
              

            	 	
              SCOTT W. ANDERSON

              Deputy
                Secretary

               for
                Commercial Recordings

            

    

    
      
        OFFICE
          OF THE

      

      SECRETARY
        OF STATE

    

    

    
      Job
        Receipt

    

    
      

        
          	 	
                  June
                    26, 2007

                

        

        
           

          
            	
                    Job
                      Number:

                  	
                    C20070625-2136

                  

          

        

        
          Account
            Number:

        

      

    

    
      
        
           

        

      

    

    
      
        
          Charges

          
            
              	
                      
                        Description

                      

                    	
                      
                        Document

                      

                      
                        Number

                      

                    	
                      
                        Filing

                      

                      
                        Date/Time

                      

                    	
                      
                        Qty

                      

                    	
                      
                        Price  
                          

                      

                    	
                      
                        Amount  
                          

                      

                    
	
                      
                        Designation

                      

                    	
                      
                        20070433952-45

                      

                    	
                      
                        6/25/2007
                          3:15:39 PM

                      

                    	
                      
                        1

                      

                    	
                      
                        $175.00  
                          

                      

                    	
                      
                        $175.00  
                          

                      

                    
	
                      
                        24
                          Hour
                          Expedite

                      

                    	
                      
                        20070433952-45

                      

                    	
                      
                        6/25/2007
                          3:15:39 PM

                      

                    	
                      
                        1

                      

                    	
                      
                        $125.00  
                          

                      

                    	
                      
                        $125.00  
                          

                      

                    
	
                      
                        Total

                      

                    	 	 	 	 	
                      
                        $300.00  
                          

                      

                    

            

            
              

            

            
              Payments

            

            
              	
                      
                        Type

                      

                    	
                      
                        Description

                      

                    	
                      
                        Amount  
                          

                      

                    
	
                      
                        Credit

                      

                    	
                      
                        213815107062605069248

                      

                    	
                      
                        $300.00  
                          

                      

                    
	
                      
                        Total

                      

                    	 	
                      
                        $300.00  
                          

                      

                    

            

            
               

              Job
                Balance: $0.00   

               

            

          

        

      

    

    
      Commercial
        Recording Division

    

    
      202
        N.
        Carson Street

    

    
      Carson
        City, Nevada 89701-4069

    

    
      Telephone
        (775) 684-5708

    

    
      Fax
        (775)
        684-7138

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      		
              
                ROSS MILLER

              

              
                Secretary
                  of State

              

              
                204
                  North Carson Street, Ste 1

              

              
                Carson
                  City, Nevada 89701-4299

              

              
                (775)
                  684 5708

              

              
                Website:
                  secretaryofstate.biz

              

            

    

    
       

    

    
      	
              
                Filed
                  in the office
                  of

              

              
                /s/
                  Ross Miller

                Ross Miller

              

              
                Secretary
                  of State

              

              
                State
                  of Nevada

              

            	
              
                Document
                  Number

              

              
                20070433952-46

              

            
	
              
                Filing
                  Date and Time

              

              
                06/25/2007 3:15
                  PM

              

            
	
              
                Entity
                  Number

              

              
                C173-1985

              

            

    

     

    
      	
               

              Certificate
                of Designation

            	 
	
              (PURSUANT
                TO NRS 78.1955)

               

            	 

    

    
       

      
        
          	
                  USE
                    BLACK INK ONLY – DO NOT HIGHLIGHT

                	 	
                  ABOVE
                    SPACE IS FOR OFFICE USE ONLY

                
	 	 	 

        

         

        Certificate
          of Designation

      

    

    
      For
        Nevada Profit Corporations.

    

    
      (Pursuant
        to NRS 78.1955)

    

    
      1.
        Name
        of corporation:

    

    
      

    

    
      BIuegate
        Corporation

    

    
      

    

    
      2.
        By
        resolution of the board of directors pursuant to a provision in the articles
        of
        incorporation. this certificate establishes the following regarding the voting
        powers, designations, preferences, limitations, restrictions and relative
        rights
        of the following class or series of stock.

    

    
      

    

    
      Bluegate
        Corporation, (hereinafter referred to as the "Company"), a corporation duly
        organized and existing under the laws of the State of Nevada, 

      DOES
        HEREBY CERTIFY:

    

    
      That,
        the
        Articles of Incorporation of the Company authorizes the issuance of 10,000,000
        shares of Preferred Stock, $.001 par value per share, and expressly vests
        in the
        Board of Directors of the Company the authority to issue any or all of said
        shares in one or more series and by resolution or resolutions to establish
        the
        designation, number, full or limited voting powers, or the denial of voting
        powers, preferences and relative, participating, optional, and other special
        rights and the qualifications, limitations, restrictions and other
        distinguishing characteristics of each series to be issued:

    

    
      

    

    
      RESOLVED,
        that pursuant to the authority conferred upon the Board of Directors by the
        Articles of Incorporation, the Series C Convertible Non-Redeemable Preferred
        Stock, par value $.001 ("Series C Convertible Preferred Stock"),
        is hereby authorized and created, said series to consist of up to 48 shares,
        with a stated value of $12,500,00 per share of Series C Convertible Preferred
        Stock.  The voting powers, preferences and relative, participating,
        optional and other special rights, and the qualifications, limitations,
        restrictions thereof shall be as follow: (SEE ATTACHMENT)

    

    
      

    

    
      	
              3.
                Effective date of filing (optional):

            	 	  
              	 
	 	 	
              (must
                not be later than 30 days after the certificate is filled)

            	 
	
               

            	 	 	 
	 	 	   
              	 
	
              4,
                Officer Signature (Required):

            	 	
              X
                /s/ illegible

            	 

    

    
      

    

    
      Filing
        Fee: $175.00

    

    
      

    

    
      IMPORTANT:
        Failure to include any of the above information and submit the proper
        fees may cause this filing to be rejected.

    

    
      This
        form must be accompanied by appropriate
        fees.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    CERTIFICATE
      OF THE DESIGNATION,

    PREFERENCES,
      RIGHTS AND LIMITATIONS OF

    SERIES
      C CONVERTIBLE NON-REDEEMABLE PREFERRED STOCK
      OF

    BLUEGATE
      CORPORATION.

    
       

      Bluegate
        Corporation, (hereinafter referred to as the "Company"), a corporation duly
        organized and existing under the laws of the State of Nevada,

    

    
       

      DOES
        HEREBY CERTIFY:

    

    
       

      That,
        the
        Articles of Incorporation of the Company authorizes the issuance of 10,000,000
        shares of Preferred Stock, $.001 par value per share, and expressly vests
        in the
        Board of Directors of the Company the authority to issue any or all of said
        shares in one or more series and by resolution or resolutions to establish
        the
        designation, number, full or limited voting powers, or the denial of voting
        powers, preferences and relative, participating, optional, and other special
        rights and the qualifications, limitations, restrictions and other
        distinguishing characteristics of each series to be issued:

    

    
       

      RESOLVED,
        that pursuant to the authority conferred upon the Board of Directors by the
        Articles of Incorporation, the Series C Convertible Non-Redeemable Preferred
        Stock, par value $.001 ("Series C Convertible Preferred Stock"), is hereby
        authorized and created, said series to consist of up to 48 shares, with a
        stated
        value of $12,500.00 per share of Series C Convertible Preferred Stock. The
        voting powers, preferences and relative, participating, optional and other
        special rights, and the qualifications, limitations or restrictions thereof
        shall be as follow:

    

    
      

    

    
      
        	
                1.

              	
                No
                  dividends on Series C Convertible Preferred Stock. There are no
                  dividends on Series
                  C Convertible Preferred
                  Stock.

              

      

    

    
       

    

    
      
        	
                2.

              	
                Conversion
                  of Series C Convertible Preferred
                  Stock.

              

      

    

    
      
        	
              	
                (a)

              	
                Each
                  holder of shares of Series C Convertible Preferred Stock may, at
                  his
                  option and at any time and from time to time, convert any or
                  all  such shares, into fully paid and non-assessable shares of
                  the Company's Common Stock at a conversion ratio of 25,000 shares
                  of
                  Common Stock for each share of Series C Convertible Preferred Stock.
                  Fractional Conversions are
                  permitted.

              

      

    

    
       

      
        	
              	
                (b)

              	
                To
                  exercise his conversion
                  privilege, the holder of any shares of Series C
                  Convertible Preferred
                  Stock shall surrender to the Company during regular
                  business hours at
                  the principal executive offices of the Company
                  or the offices of the
                  transfer agent for the Series C Convertible Preferred
                  Stock or at such other
                  place as may be designated by the Company,
                  the certificate or
                  certificates for the shares to be converted, duly endorsed
                  for transfer to the
                  Company (if required by it), accompanied by written
                  notice stating that the
                  holder irrevocably elects to convert such shares. Conversion shall
                  be deemed to have been effected on the date when such delivery
                  is made,
                  and such date is referred to herein as the "Conversion Date." Within
                  five
                  (5) business days after the date on which such delivery is made,
                  the
                  Company shall issue and send (with receipt to be acknowledged)
                  to the
                  holder thereof for the holder's designee, at the address designated
                  by
                  such holder, a certificate or certificates for the number of full
                  and
                  fractional shares of Common Stock to which the holder is entitled
                  as a
                  result of such conversion.  The holder shall be deemed to have
                  become a stockholder of record of the number of shares of Common
                  Stock
                  into which the shares of Series C Convertible Preferred Stock have
                  been
                  converted on the applicable Conversion Date unless the transfer
                  books of
                  the Company are closed on that date, in which event he shall be
                  deemed to
                  have become a stockholder or record of such shares on the next
                  succeeding
                  date on which the transfer books are open.  Upon conversion of
                  only a portion of the number of share of Series C Convertible Preferred
                  Stock represented  by a certificate or certificates surrendered
                  for conversion, the Company shall within three (3) business days
                  after the
                  date on which such delivery is made, issue and send (with receipt
                  to be
                  acknowledged) to the holder thereof or the holder's designee, at
                  the
                  address designated by such holder, a new certificate covering the
                  number
                  of shares of Series C Convertible Preferred Stock representing
                  the
                  unconverted portion of the certificate or certificates so
                  surrendered,

              

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

    

    
      
        	
              	
                (c)

              	
                The
                  Company shall at all times reserve for issuance and maintain available,
                  out of its authorized but unissued Common Stock, solely for the
                  purpose of
                  effecting the conversion of the Series C Convertible Preferred
                  Stock, the
                  full number of shares of Common Stock deliverable upon the conversion
                  of
                  all Series C Convertible Preferred Stock from time to time outstanding.
                  The Company shall from time to time (subject to obtaining necessary
                  director and stockholder action), in accordance with the laws of
                  the State
                  of Nevada, increase the authorized number of shares of its Common
                  Stock if
                  at any time the authorized number of shares of its Common Stock
                  remaining
                  unissued shall not be sufficient to permit the conversion of all
                  of the
                  shares of Series C Convertible Preferred Stock at the time
                  outstanding.

              

      

    

    
       

      
        	
              	
                (d)

              	
                If
                  any shares of Common Stock to be reserved for the purpose of conversion
                  of
                  shares of Series C Convertible Preferred Stock require listing
                  with, or
                  approval of, any governmental authority, stock exchange or other
                  regulatory body under any federal or state law or regulation or
                  otherwise,
                  before such shares may be validly issued or delivered upon conversion,
                  the
                  Company will in good faith and as expeditiously as possible meet
                  such
                  listing or approval, as the case may
                  be.

              

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        	
              	
                (e)

              	
                All
                  shares of Common Stock which may be issued upon conversion of the
                  shares
                  of Series C Convertible Preferred Stock will upon issuance by the
                  Company
                  be validly issued, fully paid and non-assessable and free from
                  all taxes,
                  lieus and charges with respect to the issuance
                  therefor.

              

      

    

    
       

      
        	
              	
                (f)

              	
                In
                  case any shares of Series C Convertible Preferred Stock shall be
                  converted
                  pursuant hereto, or purchased or otherwise acquired by the Company,
                  the
                  shares so converted, purchased or acquired shall be restored to
                  the status
                  of authorized but unissued shares of preferred stock, without designation
                  as to class or series, and may thereafter be reissued, but not
                  as shares
                  of Series C Convertible Preferred
                  Stock.

              

      

    

    
       

      
        	
              	
                (g)

              	
                The
                  conversion ratio of the Series C Convertible Preferred Stock into
                  Common
                  Stock of the Company shall be subject to adjustment from time to
                  time as
                  follows:

              

      

    

    
      
        	
              	
                (i)

              	
                Stock
                  Splits, Dividends and Combinations. In the event that the Company
                  shall at any time subdivide the outstanding shares of Common Stock,
                  or
                  shall pay or make a dividend or distribution on any class or capital
                  stock
                  of the Company in Common Stock, the conversion ratio in effect
                  immediately
                  prior to such subdivision or the issuance of such dividend shall
                  be
                  proportionately decreased, and in case the Company shall at any
                  time
                  combine the outstanding shares of Common Stock, the conversion
                  ratio in
                  effect immediately prior to such combination shall be proportionately
                  increased, effective at the close of business on the date of such
                  subdivision, dividend or combination, as the case may
                  be.

              

      

    

    
      
        	
              	
                (ii)

              	
                Non-Cash
                  Dividends, Stock Purchase Rights, Capital Reorganization and
                  Dissolutions. In the
                  event:

              

      

    

    
      
        	
              	
                (a)

              	
                that
                  the Company shall take a record of the holders of its Common Stock
                  for the
                  purpose of entitling them to receive a dividend, or any other distribution
                  payable otherwise than in case;
                  or

              

      

    

    
      
        	
              	
                (b)

              	
                that
                  the Company shall take a record of the holders of its Common Stock
                  for the
                  purpose of entitling them to subscribe for or purchase any shares
                  of stock
                  of any class or other securities, or to receive any other rights;
                  or

              

      

    

    
      
        	
              	
                (c)

              	
                of
                  any capital reorganization of the Company, reclassification of
                  the capital
                  stock of the Company (other than a subdivision or combination of
                  its
                  outstanding shares of Common Stock), consolidation or merger of
                  the
                  Company with or into another corporation, share exchange for all
                  outstanding shares of Common Stock under a plan of exchange to
                  which the
                  Company is a party, or conveyance of all or substantially all of
                  the
                  assets of the Company to another corporation;
                  or

              

      

    

    
       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

    

    
      
        	
              	
                (d)

              	
                of
                  the voluntary or involuntary dissolution, liquidation or winding
                  up of the
                  Company;

              

      

    

    
      then,
        and
        in any such ease, the Company shall cause to be mailed to the holders of
        record
        of the outstanding Series C Convertible Preferred Stock, at least 10 days
        prior
        to the date hereinafter specified, a notice stating the date on which (x)
        record
        is to be taken for the purpose of such dividend, distribution or rights,
        or (y)
        such reclassification, reorganization, consolidation, merger, share exchange,
        conveyance, dissolution, liquidation or winding up is to take place and the
        date, if any is to be fixed, as of which holders of Company securities of
        record
        shall be entitled to exchange their shares of Company securities for securities
        or other property deliverable upon such reclassification, reorganization,
        consolidation, merger, share exchange, conveyance, dissolution, liquidation
        or
        winding up.

    

    
      

    

    
      
        	
                3.

              	
                Voting
                  of Series C Convertible Preferred Stock. The shares of Series C
                  Convertible Preferred Stock shall be entitled to vote, together
                  with the
                  shares of the Company's Common Stock, on all matters presented
                  at any
                  annual or special, meeting of stockholders of the Company, or may
                  act by
                  written consent in the same manner as the holders of the Company's
                  Common
                  Stock; upon the following basis: each holder of Series C Convertible
                  Preferred Stock shall be entitled to cast such number of votes
                  for each
                  share of Series C Convertible Preferred Stock held by such holder
                  on the
                  record date fixed for such meeting, or on the effective date of
                  such
                  written consent, as shall be equal to fifteen (15) times the number
                  of
                  shares of the Company's Common Stock into which each of such holder's
                  shares of Series C Convertible Preferred Stock is convertible immediately
                  after the close of business on the record date fixed for such meeting
                  or
                  the effective date of such written consent The Series C Convertible
                  Preferred Stock and any other stock having voting rights shall
                  vote
                  together as one class, except as provided by
                  law,

              

      

    

    
      

    

    
      
        	
                4.

              	
                Liquidation
                  Rights.

              

      

    

    
      
        	
              	
                (a)

              	
                In
                  the event of any voluntary or involuntary liquidation, dissolution
                  or
                  winding up of the Company, the holders of shares of Series C Convertible
                  Preferred Stock then outstanding shall be entitled to receive out
                  of
                  assets of the Company available for distribution to stockholders,
                  before
                  any distribution of assets is made to holders of any other class
                  of
                  capital stock of the Company, an amount equal to $12,500.00 per
                  share
                  ("Liquidation Amount").

              

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      
        	
              	
                (b)

              	
                A
                  consolidation or merger of the Company (in the event that the Company
                  is
                  not the surviving entity) or sale of all or substantially all of
                  the
                  Company's assets shall be regarded as a liquidation,
                  dissolution or winding up of the affairs of the Company within
                  the meaning
                  herein. In the event of such a liquidation as contemplated herein,
                  the
                  holders of Series C Convertible Preferred Stock shall be entitled
                  to
                  received an amount equal to the Liquidation
                  Amount.

              

      

    

    
       

      
        	
              	
                (c)

              	
                In
                  the event of any voluntary or involuntary liquidation, dissolution
                  or
                  winding up of the Company which involves the distribution of assets
                  other
                  than cash, the Company shall promptly engage competent independent
                  appraisers to determine the value of the assets to be distributed
                  to the
                  holders of shares of this Series C Convertible Preferred Stock,
                  other
                  preferred stock, and the holders of shares of Common Stock. The
                  Company
                  shall, upon receipt of such appraiser's valuation, give prompt
                  written
                  notice to each holder of shares of Series C Convertible Preferred
                  Stock of
                  the appraiser's valuation.

              

      

    

    
       

      
        	
                5.

              	
                No
                  Redemption by the Company.  Series C Convertible Preferred
                  Stock is not redeemable by the
                  Company.

              

      

    

    
       

      IN
        WITNESS WHEREOF, Bluegate Corporation has caused its corporate seal to be
        hereunto affixed and this certificate to be signed by
        Stephen J. Sperco, its Chief Executive Officer and
        Charles E. Leibold, its Chief Financial Officer, this  25
 day of June, 2007.

    

    
       
 

    

    
      	
               

            	 	
              Blugate
                Corporation

            
	 	 	 
	 	 	/s/
              Stephen J. Sperco
	 	 	
              Stephen J. Sperco,
                Chief Executive Officer

            
	 	 	 
	 	 	/s/
              Charles E. Leibold
	 	 	
              Charles E. Leibold,
                Chief Financial Officer

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              THE
                STATE OF TEXAS

            	
              §

            

    

    
      
        	
                 

              	
                §

              

      

    

    
      
        	
                COUNTY
                  OF HARRIS

              	
                §

              

      

    

    
       

      BEFORE
        ME, the undersigned authority, on this day personally appeared
        Stephen J. Sperco, known to me to be the person whose
        name is subscribed to the foregoing instrument and acknowledged to me that
        he
        executed the same for the purposes and consideration therein
        expressed.

    

    
       

       

    

    
      GIVEN
        UNDER MY HAND AND SEAL of officer this 25th
        day of June
        2007.

    

    
       

    

    
      	
              
                
                  Barbara
                    C. Fullerton

                  Notary
                    Public

                  State
                    of Texas

                  My
                    Commission Expires

                  November
                    13, 2007

                

              

            	 	
              /s/
                Barbara C. Fullerton

            	 
	 	 	
              NOTARY
                PUBLIC IN AND FOR THE STATE OF TEXAS

            	 

    

    
       

    

    
      
        	
                THE
                  STATE OF TEXAS

              	
                §

              

      

    

    
      
        	
                 

              	
                §

              

      

    

    
      
        	
                COUNTY
                  OF HARRIS

              	
                §

              

      

    

    
       

      BEFORE
        ME, the undersigned authority, on this day personally appeared
        Charles E. Leibold, known to me to be the person whose name is
        subscribed to the foregoing instrument and acknowledged to me that he executed
        the same for the purposes and consideration therein
        expressed.

    

    
      day
        of
        June 2007.

    

    
       

    

    
      GIVEN
        UNDER MY HAND AND SEAL of office this 25th
        day of June
        2007.

    

    

    
       

    

    
      	
              
                Barbara
                  C. Fullerton

                Notary
                  Public

                State
                  of Texas

                My
                  Commission Expires

                November
                  13, 2007

              

            	 	
              /s/
                Barbara C. Fullerton

            	 
	 	 	
              NOTARY
                PUBLIC IN AND FOR THE STATE OF TEXAS

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