Document:

<PAGE>
                                                                    Exhibit 10.1

                                  CROSS RECEIPT

        In connection with the closing of the transactions contemplated by the
Securities Purchase Agreement dated as of August 6, 2004 among Aquatic Cellulose
International Corp. (the "Company"), AJW Partners, LLC (the "Buyer") and the
other purchasers named therein, the Company and the Buyer acknowledge as
follows:

        1.      The Buyer hereby acknowledges receipt from the Company of a
Convertible Debenture in the aggregate principal amount of Forty Thousand
Dollars ($40,000) and Warrants to purchase 40,000 shares of the Company's Common
Stock.

        2.      The Company hereby acknowledges receipt from the Buyer, by wire
transfer of immediately available funds, the sum of Forty Thousand Dollars
($40,000), said funds having been transferred to the company's account in
accordance with the company's written instructions.

        IN WITNESS WHEREOF, the undersigned have executed this Cross Receipt
this 6th day of August, 2004.

AQUATIC CELLULOSE INTERNATIONAL CORP.                        AJW PARTNERS, LLC
                                                             By:  SMS Group, LLC

By:/s/ Sheridan Westgarde                           By:/s/ Corey S. Ribotsky
   -------------------------------------               -------------------------
   Sheridan B. Westgarde                               Corey S. Ribotsky
   President and Chief Executive Officer               Manager

<PAGE>

                                  CROSS RECEIPT

        In connection with the closing of the transactions contemplated by the
Securities Purchase Agreement dated as of August 6, 2004 among Aquatic Cellulose
International Corp. (the "Company"), AJW Offshore, Ltd. (the "Buyer") and the
other purchasers named therein, the Company and the Buyer acknowledge as
follows:

        1.      The Buyer hereby acknowledges receipt from the Company of a
Convertible Debenture in the aggregate principal amount of Ninety-Two Thousand
Five Hundred Dollars ($92,500) and Warrants to purchase 92,500 shares of the
Company's Common Stock.

        2.      The Company hereby acknowledges receipt from the Buyer by wire
transfer of immediately available funds, the sum of Ninety-Two Thousand Five
Hundred Dollars ($92,500), said funds having been transferred to the Company's
account in accordance with the Company's written instructions.

        IN WITNESS WHEREOF, the undersigned have executed this Cross Receipt
this 6th day of August, 2004.

AQUATIC CELLULOSE INTERNATIONAL CORP.           AJW OFFSHORE, LTD.
                                                By: First Street Manager II, LLC

By:  /S/ SHERIDAN WESTGARDE                         By:/s/ Corey S. Ribotsky
   -------------------------------------               -------------------------
   Sheridan B. Westgarde                               Corey S. Ribotsky
   President and Chief Executive Officer               Manager

<PAGE>

                                  CROSS RECEIPT

        In connection with the closing of the transactions contemplated by the
Securities Purchase Agreement dated as of August 6, 2004 among Aquatic Cellulose
International Corp. (the "Company"), AJW Qualified Partners, LLC (the "Buyer")
and the other purchasers named therein, the Company and the Buyer acknowledge as
follows:

        1.      The Buyer hereby acknowledges receipt from the Company of a
Convertible Debenture in the aggregate principal amount of One Hundred Ten
Thousand Dollars ($110,000) and Warrants to purchase 110,000 shares of the
Company's Common Stock.

        2.      The Company hereby acknowledges receipt from the Buyer by wire
transfer of immediately available funds, the sum of One Hundred Ten Thousand
Dollars ($110,000), said funds having been transferred to the Company's account
in accordance with the Company's written instructions.

        IN WITNESS WHEREOF, the undersigned have executed this Cross Receipt
this 6th day of August, 2004.

AQUATIC CELLULOSE INTERNATIONAL CORP.                AJW QUALIFIED PARTNERS, LLC
                                                     By: AJW Manager, LLC

By:/s/ Sheridan Westgarde                           By:/s/ Corey S. Ribotsky
   -------------------------------------               -------------------------
   Sheridan B. Westgarde                               Corey S. Ribotsky
   President and Chief Executive Officer               Manager

<PAGE>

                                  CROSS RECEIPT

        In connection with the closing of the transactions contemplated by the
Securities Purchase Agreement dated as of August 6, 2004 among Aquatic Cellulose
International Corp. (the "Company"), AJW Qualified Partners, LLC (the "Buyer")
and the other purchasers named therein, the Company and the Buyer acknowledge as
follows:

        1.      The Buyer hereby acknowledges receipt from the Company of a
Convertible Debenture in the aggregate principal amount of Seven Thousand Five
Hundred Dollars ($7,500) and Warrants to purchase 7,500 shares of the Company's
Common Stock.

        2.      The Company hereby acknowledges receipt from the Buyer by wire
transfer of immediately available funds, the sum of Seven Thousand Five Hundred
Dollars ($7,500), said funds having been transferred to the Company's account in
accordance with the Company's written instructions.

        IN WITNESS WHEREOF, the undersigned have executed this Cross Receipt
this 6th day of August, 2004.

AQUATIC CELLULOSE INTERNATIONAL CORP.    NEW MILLENNIUM CAPITAL PARTNERS II, LLC
                                         By: First Street Manager II, LLC

By:  /s/ Sheridan Westgarde                         By:/s/ Corey S. Ribotsky
   -------------------------------------               -------------------------
   Sheridan B. Westgarde                               Corey S. Ribotsky
   President and Chief Executive Officer               Manager<PAGE>
                                                                    Exhibit 10.2

                                ESCROW AGREEMENT

        ESCROW AGREEMENT (the "ESCROW AGREEMENT") made as of the 6th day of
March, 2004, by and among Aquatic Cellulose International Corp., a Nevada
corporation (the "COMPANY"), the Purchasers listed on Schedule A attached hereto
(each a "PURCHASER" and collectively, the "PURCHASERS") and Owen Naccarato (the
"ESCROW AGENT").

                              W I T N E S S E T H:

        WHEREAS, the Company desires to raise capital in order to finance the
growth of its business operations and for other general corporate purposes;

        WHEREAS, the Company and the Purchasers have agreed that, in order to
raise capital, the Company shall issue and sell to the Purchasers debentures
(the "DEBENTURES"), convertible into shares of the Company's common stock,
$0.001 par value per share (the "COMMON STOCK"), and Warrants to purchase shares
of Common Stock (the "Warrants") for an aggregate purchase price of $250,000;

        WHEREAS, the Company has entered into a Securities Purchase Agreement
dated as of August 6, 2004 (the "PURCHASE AGREEMENT") with the Purchasers;

        WHEREAS, the parties have agreed that all funds shall be paid into
escrow and the Escrow Agent has agreed to receive, hold and pay such funds, upon
the terms and subject to the conditions hereinafter set forth.

        NOW, THEREFORE, in consideration of the mutual covenants herein
contained, and for other good and valuable consideration, the receipt and legal
sufficiency of which is hereby acknowledged, the parties to this Escrow
Agreement hereby agree as follows:

        1.      DEFINED TERMS. Capitalized terms used and not otherwise defined
herein shall have the meanings respectively assigned to them in the Purchase
Agreement.

        2.      ESCROW OF FUNDS. On the Closing Date (as defined in the Purchase
Agreement), the following shall occur: the Purchasers shall remit by wire
transfer the Purchase Price to the Escrow Agent pursuant to this Escrow
Agreement as payment in full for the Debentures and the Warrants (the "ESCROW
AMOUNT"). The Escrow Agent shall hold the Escrow Amount only in accordance with
the terms and conditions of this Escrow Agreement.

        3.      INVESTMENT OF FUNDS. The Escrow Agent shall invest the monies in
the Escrow Amount in an interest bearing bank account with, or certificates of
deposit or time deposits with, maturities of no more than thirty (30) days
issued by, a domestic commercial bank or such other bank or other financial
institution as it normally holds such funds.

        4.      RELEASE OF FUNDS. The Escrow Agent shall release the Escrow
Amount, or a portion thereof, upon receipt, at any time, of joint written
instructions from the Company and the Purchasers directing the manner in which
the distribution of the Escrow Amount, or a portion thereof, is to be made,
provided that upon the earlier to occur of (a) one hundred eighty (180) days
from the date hereof or (b) the date upon which each of the Purchasers ceases to
transact business, the Escrow

<PAGE>

Agent shall release the Escrow Amount upon receipt of written instructions from
the Company directing the manner in which the distribution of the Escrow Amount,
or a portion thereof, is to be made.

        5.      FURTHER ASSURANCES. The Company and the Purchasers agree to do
such further acts and to execute and deliver such statements, assignments,
agreements, instruments and other documents as the Escrow Agent from time to
time reasonably may request in connection with the administration, maintenance,
enforcement or adjudication of this Escrow Agreement in order (a) to give the
Escrow Agent confirmation and assurance of the Escrow Agent's rights, powers,
privileges, remedies and interests under this Escrow Agreement and applicable
law, (b) to better enable the Escrow Agent to exercise any such right, power,
privilege, remedy or interest, or (c) to otherwise effectuate the purpose and
the terms and provisions of this Escrow Agreement, each in such form and
substance as may be reasonably acceptable to the Escrow Agent.

        6.      CONFLICTING DEMANDS. If conflicting or adverse claims or demands
are made or notices served upon the Escrow Agent with respect to the escrow
provided for herein, the Company and the Purchasers agree that the Escrow Agent
shall refuse to comply with any such claim or demand and withhold and stop all
further performance of this escrow so long as such disagreement shall continue.
In so doing, the Escrow Agent shall not be or become liable for damages, losses,
costs, expenses or interest to any or any other person for its failure to comply
with such conflicting or adverse demands. The Escrow Agent shall be entitled to
continue to so refrain and refuse to so act until such conflicting claims or
demands shall have been finally determined by a court or arbitrator of competent
jurisdiction or shall have been settled by agreement of the parties to such
controversy, in which case the Escrow Agent shall be notified thereof in a
notice signed by such parties. The Escrow Agent may also elect to commence an
interpleader or other action for declaratory judgment for the purpose of having
the respective rights of the claimants adjudicated, and may deposit with the
court all funds held hereunder pursuant to this Escrow Agreement; and if it so
commences and deposits, the Escrow Agent shall be relieved and discharged from
any further duties and obligations under this Escrow Agreement.

        7.      DISPUTES. Each of the parties hereto hereby covenants and agrees
that the Federal or state courts located in the Borough of Manhattan, State of
New York shall have jurisdiction over any dispute with the Escrow Agent or
relating to this Escrow Agreement.

        8.      EXPENSES OF THE ESCROW AGENT. The Company agrees to pay any and
all out-of-pocket costs and expenses incurred by the Escrow Agent in connection
with all waivers, releases, discharges, satisfactions, modifications and
amendments of this Escrow Agreement, the administration and holding of the
Escrow Amount and the investment of such funds, and the enforcement, protection
and adjudication of the Escrow Agent's rights hereunder by the Escrow Agent,
including, without limitation, the out-of-pocket disbursements of the Escrow
Agent itself and expenses and costs of other attorneys it may retain, if any.
The Company shall be liable to the Escrow Agent for any expenses payable by the
Escrow Agent.

        9.      RELIANCE ON DOCUMENTS AND EXPERTS. The Escrow Agent shall be
entitled to rely upon any notice, consent, certificate, affidavit, statement,
paper, document, writing or communication (which to the extent permitted
hereunder may be by telegram, cable, telex, telecopier, or telephone) reasonably
believed by it to be genuine and to have been signed, sent or made by the proper
person

                                       2
<PAGE>

or persons, and upon opinions and advice of legal counsel (including itself or
counsel for any party hereto), independent public accountants and other experts
selected by the Escrow Agent and mutually acceptable to each of the Company and
the Purchasers. The Escrow Agent shall not be responsible to review the
Certificate other than to confirm that it has been signed or to determine the
clearance of checks received for the Escrow Amount.

        10.     STATUS OF THE ESCROW AGENT, ETC. The Escrow Agent is acting
under this Escrow Agreement as a stakeholder only. No term or provision of this
Escrow Agreement is intended to create, nor shall any such term or provision be
deemed to have created, any joint venture, partnership or attorney-client
relationship between or among the Escrow Agent and the Company or the
Purchasers. This Escrow Agreement shall not be deemed to prohibit or in any way
restrict the Escrow Agent's representation of the Company, who may be advised by
the Escrow Agent on any and all matters pertaining to this Escrow Agreement. To
the extent the Purchasers have been represented by the Escrow Agent, the
Purchasers hereby waive any conflict of interest and irrevocably authorize and
direct the Escrow Agent to carry out the terms and provisions of this Escrow
Agreement fairly as to all parties, without regard to any such representation
and irrespective of the impact upon the Purchasers. The Escrow Agent's only
duties are those expressly set forth in this Escrow Agreement, and each of the
Company and the Purchasers authorize the Escrow Agent to perform those duties in
accordance with its usual practices in holding funds of its own or those of
other escrows. The Escrow Agent may exercise or otherwise enforce any of its
rights, powers, privileges, remedies and interests under this Escrow Agreement
and applicable law or perform any of its duties under this Escrow Agreement by
or through its partners, employees, attorneys, agents or designees.

        11.     EXCULPATION. The Escrow Agent and its designees, and their
respective partners, employees, attorneys and agents, shall not incur any
liability whatsoever for the investment or disposition of funds or the taking of
any other action in accordance with the terms and provisions of this Escrow
Agreement, for any mistake or error in judgment, for compliance with any
applicable law or any attachment, order or other directive of any court or other
authority (irrespective of any conflicting term or provision of this Escrow
Agreement), or for any act or omission of any other person selected with
reasonable care and engaged by the Escrow Agent in connection with this Escrow
Agreement (other than for such Escrow Agent's or such person's own acts or
omissions breaching a duty owed to the claimant under this Escrow Agreement and
amounting to gross negligence or willful misconduct as finally determined
pursuant to applicable law by a governmental authority having jurisdiction); and
each of the Company and the Purchasers hereby waive any and all claims and
actions whatsoever against the Escrow Agent and its designees, and their
respective partners, employees, attorneys and agents, arising out of or related
directly or indirectly to any and all of the foregoing acts, omissions and
circumstances. Furthermore, the Escrow Agent and its designees, and their
respective partners, employees, attorneys and agents, shall not incur any
liability (other than for a person's own acts or omissions breaching a duty owed
to the claimant under this Escrow Agreement and amounting to willful misconduct
as finally determined pursuant to applicable law by a governmental authority
having jurisdiction) for other acts and omissions arising out of or related
directly or indirectly to this Escrow Agreement or the Escrow Amount; and each
of the Company and the Purchasers hereby expressly waive any and all claims and
actions (other than those attributable to a person's own acts or omissions
breaching a duty owed to the claimant and amounting to gross negligence or
willful misconduct as finally determined pursuant to applicable law by a
governmental authority having jurisdiction) against the Escrow Agent and its
designees,

                                       3
<PAGE>

and their respective partners, employees, attorneys and agents, arising out of
or related directly or indirectly to any and all of the foregoing acts,
omissions and circumstances. The Escrow Agent's designees excludes the
Purchasers for purposes hereof.

        12.     INDEMNIFICATION. The Escrow Agent and its designees (excluding
the Purchasers), and their respective partners, employees, attorneys and agents,
shall be indemnified, reimbursed, held harmless and, at the request of the
Escrow Agent, defended, by the Company from and against any and all claims,
liabilities, losses and expenses (including, without limitation, the reasonable
disbursements, expenses and fees of their respective attorneys) that may be
imposed upon, incurred by, or asserted against any of them, arising out of or
related directly or indirectly to this Escrow Agreement or the Escrow Amount,
except such as are occasioned by the indemnified person's own acts and omissions
breaching a duty owed to the claimant under this Escrow Agreement and amounting
to willful misconduct as finally determined pursuant to applicable law by a
governmental authority having jurisdiction.

        13.     NOTICES. Any notice, request, demand or other communication
permitted or required to be given hereunder shall be in writing, shall be sent
by one of the following means to the addressee at the address set forth below
(or at such other address as shall be designated hereunder by notice to the
other parties and persons receiving copies, effective upon actual receipt) and
shall be deemed conclusively to have been given: (a) on the first business day
following the day timely deposited with Federal Express (or other equivalent
national overnight courier) or United States Express Mail, with the cost of
delivery prepaid; (b) on the fifth business day following the day duly sent by
certified or registered United States mail, postage prepaid and return receipt
requested; or (c) when otherwise actually delivered to the addressee.

      If to the Company:       Aquatic Cellulose International Corp.
                               2504 43rd Street
                               Suite 5
                               Vernon, British Columbia
                               Canada VIT 6L1
                               Attention:  President and Chief Executive Officer
                               Telephone:  250-558-4216
                               Facsimile:  250-558-3846

      with a copy to:          Owen Naccarato, Esq.
                               Naccarato & Associates
                               19600 Fairchild, Suite 260
                               Irvine, CA  92612
                               Telephone:  (949) 851-9261
                               Facsimile:   (949) 851-9262

      If to any Purchaser:     At the address of such Purchaser set forth on
                               Schedule A to the Escrow Agreement, with copies
                               to such Purchaser's counsel as set forth on
                               Schedule A or as specified in writing by such
                               Purchaser.

                                       4
<PAGE>

      If to the Escrow Agent:  Owen Naccarato, Esq.
                               Naccarato & Associates
                               19600 Fairchild, Suite 260
                               Irvine, CA  92612
                               Telephone:  (949) 851-9261
                               Facsimile:   (949) 851-9262

        14.     SECTION AND OTHER HEADINGS. The section and other headings
contained in this Escrow Agreement are for convenience only, shall not be deemed
a part of this Escrow Agreement and shall not affect the meaning or
interpretation of this Escrow Agreement.

        15.     GOVERNING LAW. This Escrow Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the State of New York,
without regard to principles of conflicts of law. Each of the Company and the
Purchasers (i) hereby irrevocably submit to the jurisdiction of the United
States District Court sitting in the Southern District of New York for the
purposes of any suit, action or proceeding arising out of or relating to this
Agreement or the Purchase Agreement and (ii) hereby waive, and agree not to
assert in any such suit, action or proceeding, any claim that it is not
personally subject to the jurisdiction of such court, that the suit, action or
proceeding is brought in an inconvenient forum or that the venue of the suit,
action or proceeding is improper. Each of the Company and the Purchasers consent
to process being served in any such suit, action or proceeding by mailing a copy
thereof to such party at the address in effect for notices to it under this
Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing in this Section 15 shall affect
or limit any right to serve process in any other manner permitted by law.

        16.     COUNTERPARTS. This Escrow Agreement may be executed by the
parties hereto in separate counterparts, each of which when so executed and
delivered shall be an original but all such counterparts shall together
constitute one and the same agreement.

        17.     RESIGNATION OF ESCROW AGENT. The Escrow Agent may, at any time,
at its option, elect to resign its duties as Escrow Agent under this Escrow
Agreement by providing notice thereof to each of the Company and the Purchasers.
In such event, the Escrow Agent shall deposit the Escrow Amount with a successor
independent escrow agent to be appointed by (a) the Company and the Purchasers
within thirty (30) days following the receipt of notice of resignation from the
Escrow Agent, or (b) the Escrow Agent if the Company and the Purchasers shall
have not agreed on a successor escrow agent within the aforesaid 30-day period,
upon which appointment and delivery of the Escrow Amount the Escrow Agent shall
be released of and from all liability under this Escrow Agreement.

        18.     SUCCESSORS AND ASSIGNS; ASSIGNMENT. Whenever in this Escrow
Agreement reference is made to any party, such reference shall be deemed to
include the successors, assigns and legal representatives of such party, and,
without limiting the generality of the foregoing, all representations,
warranties, covenants and other agreements made by or on behalf of each of the
Company and the Purchasers in this Escrow Agreement shall inure to the benefit
of any successor escrow agent hereunder; PROVIDED, HOWEVER, that nothing herein
shall be deemed to authorize or permit the Company or the Purchasers to assign
any of its rights or obligations hereunder to any

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<PAGE>

other person (whether or not an affiliate of the Company or the Purchasers)
without the written consent of each of the other parties nor to authorize or
permit the Escrow Agent to assign any of its duties or obligations hereunder
except as provided in Section 17 hereof.

        19.     NO THIRD PARTY RIGHTS. The representations, warranties and other
terms and provisions of this Escrow Agreement are for the exclusive benefit of
the parties hereto, and no other person, including the creditors of the Company
or the Purchasers, shall have any right or claim against any party by reason of
any of those terms and provisions or be entitled to enforce any of those terms
and provisions against any party.

        20.     NO WAIVER BY ACTION, ETC. Any waiver or consent respecting any
representation, warranty, covenant or other term or provision of this Escrow
Agreement shall be effective only in the specific instance and for the specific
purpose for which given and shall not be deemed, regardless of frequency given,
to be a further or continuing waiver or consent. The failure or delay of a party
at any time or times to require performance of, or to exercise its rights with
respect to, any representation, warranty, covenant or other term or provision of
this Escrow Agreement in no manner (except as otherwise expressly provided
herein) shall affect its right at a later time to enforce any such term or
provision. No notice to or demand on either the Company or the Purchasers in any
case shall entitle such party to any other or further notice or demand in the
same, similar or other circumstances. All rights, powers, privileges, remedies
and interests of the parties under this Escrow Agreement are cumulative and not
alternatives, and they are in addition to and shall not limit (except as
otherwise expressly provided herein) any other right, power, privilege, remedy
or interest of the parties under this Escrow Agreement or applicable law.

        21.     MODIFICATION, AMENDMENT, ETC. Each and every modification and
amendment of this Escrow Agreement shall be in writing and signed by all of the
parties hereto, and each and every waiver of, or consent to any departure from,
any covenant, representation, warranty or other provision of this Escrow
Agreement shall be in writing and signed by the party granting such waiver or
consent.

        22.     ENTIRE AGREEMENT. This Escrow Agreement contains the entire
agreement of the parties with respect to the matters contained herein and
supersedes all prior representations, agreements and understandings, oral or
otherwise, among the parties with respect to the matters contained herein.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       6
<PAGE>

        IN WITNESS WHEREOF, the parties hereto have executed this Escrow
Agreement on the date first written above.

                                       AQUATIC CELLULOSE INTERNATIONAL CORP.

                                       By:/s/ Sheridan Westgarde
                                          ---------------------------
                                          Sheridan B. Westgarde
                                          President and Chief Executive Officer

                                       By: /s/ Owen Naccarato
                                          -------------------------------------
                                          Owen Naccarato, as escrow agent

                                       AJW PARTNERS, LLC
                                       By:  SMS Group, LLC

                                       By:/s/ Corey S. Ribotsky
                                          -----------------------------------
                                          Corey S. Ribotsky
                                          Manager

                                       AJW OFFSHORE, LTD.
                                       By:  First Street Manager II, LLC

                                       By:/s/ Corey S. Ribotsky
                                          -----------------------------------
                                          Corey S. Ribotsky
                                          Manager

                                       AJW QUALIFIED PARTNERS, LLC
                                       By:  AJW Manager, LLC

                                       By:/s/ Corey S. Ribotsky
                                          -----------------------------------
                                          Corey S. Ribotsky
                                          Manager

                                       NEW MILLENNIUM CAPITAL PARTNERS II, LLC
                                       By:  First Street Manager II, LLC

                                       By:/s/ Corey S. Ribotsky
                                          -----------------------------------
                                          Corey S. Ribotsky
                                          Manager

                                       7
<PAGE>

                                   SCHEDULE A

NAMES AND ADDRESS OF PURCHASERS
-------------------------------

AJW Partners, LLC
AJW Offshore, Ltd.
AJW Qualified Partners, LLC
New Millennium Capital Partners II, LLC
1044 Northern Boulevard
Suite 302
Roslyn, New York  11576
Attn:  Corey Ribotsky

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