Document:

Exhibit
      10.1

     

    
      
        	
                ACQUISITION
                  OF CARBON CAPTURE TECHNOLOGIES, INC.

                by
                  

                CSMG
                  TECHNOLOGIES, INC.

              

      

    

    

    AGREEMENT
      AND PLAN OF ACQUISITION

    

    

    This
      Agreement and Plan of Acquisition
      (Agreement) is entered into by and between Carbon Capture Technologies, Inc.,
      a
      Florida corporation, (CCTI), UTEK CORPORATION, a Delaware corporation, (UTEK),
      and CSMG TECHNOLOGIES, Inc., a Texas corporation, (CTGI).

    

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

    

    WHEREAS,
      before
      the Closing Date, CCTI 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 (Agreements) and the rights to develop and
      market a 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 CCTI will
      be
      acquired by CTGI in a stock-for-stock exchange (Acquisition) in accordance
      with
      the respective corporation laws of their state, upon consummation of which
      all
      CCTI Shares (as defined below) will be owned by CTGI, and all issued and
      outstanding CCTI Shares will be exchanged for common stock of CTGI 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
      as a
      tax-free reorganization 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 CCTI Shares shall be acquired from UTEK
      by
      CTGI
      in
      accordance with the respective corporation laws of their state and the
      provisions of this Agreement and the separate corporate existence of CCTI shall
      continue after the closing as a wholly-owned subsidiary of CTGI.

     

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

    

    
      
        
        

      

      
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    1.02  Exchange
      of Stock.
      At the
      Effective Date, by virtue of the Acquisition, all of the CCTI Shares that are
      issued and outstanding at the Effective Date shall be exchanged for 371,020
      unregistered shares of common stock of CTGI.

     

    1.03  Effect
      of Acquisition.
      At and
      after the Effective Date, the holder of each certificate of common stock of
      CCTI
      shall cease to have any rights as a shareholder of CCTI. 

     

    1.04  Closing.
      Subject
      to the terms and conditions of this Agreement, the Closing of the Acquisition
      shall take place as of the last to sign and date this agreement. 

    

    ARTICLE
      2

    REPRESENTATIONS
      AND WARRANTIES

    

    2.01  Representations
      and Warranties of UTEK and CCTI.
      UTEK and
      CCTI represent and warrant to CTGI that the facts set forth below are true
      and
      correct, and will be true and correct as of the Effective Date:

     

    (a)  Organization.
      CCTI 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 CCTI
      have
      been provided to CTGI and such documents are presently in effect and have not
      been amended or modified. 

     

    (b)  Authorization.
      The
      execution of this Agreement and the consummation of the Acquisition and the
      other transactions contemplated by this Agreement have been duly authorized
      by
      the board of directors and shareholders of CCTI 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 CCTI 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 CCTI consists of 1,000,000 shares of common stock with
      a
      par value $.01 per share (CCTI Shares). At the date of this Agreement, 1,000
      CCTI Shares are issued and outstanding and held of record and beneficially
      by
      UTEK, free and clear of all liens, encumbrances, restrictions and claims of
      very
      kind. UTEK has full legal right, power and authority to sell, assign transfer
      and convey the CCTI shares so owned by UTEK in accordance with the terms and
      conditions of this Agreement. The delivery to CTGI of the CCTI shares so owned
      by UTEK pursuant to the provisions of this Agreement will transfer to CTGI
      valid
      title thereto, free and clear of any and all adverse claims. All issued and
      outstanding CCTI 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. CCTI is not authorized
      to issue any preferred stock. All dividends on CCTI 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 CCTI to issue any CCTI Shares or securities convertible
      into CCTI Shares to anyone for any reason whatsoever. None of the CCTI Shares
      is
      subject to any change, claim, condition, interest, lien, pledge, option,
      security interest or other encumbrance or restriction, including any restriction
      on use, voting, transfer, receipt of income or exercise of any other attribute
      of ownership.

     

    (d)  Binding
      Effect.
      The
      execution, delivery, performance and consummation of this Agreement, the
      Acquisition and the transactions contemplated by this Agreement will not violate
      any obligation to which CCTI or UTEK is a party and will not create a default
      under any such obligation or under any agreement to which CCTI or UTEK is a
      party. This Agreement constitutes a legal, valid and binding obligation of
      CCTI,
      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.

     

    
      
        
        

      

      
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    (e)  Litigation
      Relating to this Agreement.
      There
      are no suits, actions or proceedings pending or, to the best of CCTI 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 CCTI.

     

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

     

    (h)  Title
      to Assets.
      CCTI 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 CCTI. CCTI has or will by the Effective Date
      have good and marketable title to its assets, free and clear of all liens,
      claims, charges, mortgages, options, security agreements and other encumbrances
      of every kind or nature whatsoever.

     

    (i)   Intellectual
      Property. 

    (1)  The
      Board
      of Regents (“Board”) of The University of Ottawa (“University”) respectively
      owns and has license to the Technologies and has all right, power, authority
      and
      ownership and entitlement to file, prosecute and maintain in effect University
      of Ottawa’s Patent Pending WO2006094411 & WO2004054708; Inventor: Abdelhamid
      Sayari, Ph.D.; titled “FUNCTIONALIZED ADSORBENT FOR REMOVAL OF ACID GASES AND
      USE THEREOF” and “AMINE MODIFIED ADSORBENT, ITS PREPARATION AND USE FOR DRY
      SCRUBBING OF ACID GASES”
      (the
      Patent) with respect to the inventions listed in Exhibit A hereto (the
      Inventions).

     

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

     

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

     

    (4)  Neither
      CCTI nor UTEK has received a written communication from any individual,
      corporation, proprietorship, firm, general or limited partnership, limited
      liability company, joint venture, trust, association, unincorporated
      organization, governmental authority or other entity (“Person”) alleging that
      the Technology and Intellectual Property contained in the License Agreement
      violate any material rights relating to Intellectual Property of any
      Person.

     

    
      
        
        

      

      
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    (5)  To
      the knowledge of CCTI
      and UTEK, and without any independent investigation, the validity or
      enforceability of the Patent or any of the Technology and Intellectual Property
      contained in the License Agreement, or the ownership thereof, has not been
      questioned in any action, suit, arbitration, proceeding or other litigation
      commenced or, to the Sellers’ knowledge, threatened by any Person or
      governmental authority (“Proceeding”) and, to the knowledge of CCTI and UTEK, no
      such Proceeding is currently threatened, and neither CCTI nor UTEK has received
      a written communication from any Person (A) asserting an ownership interest
      in
      any of the Technology and Intellectual Property contained in the License
      Agreement, or (B) alleging that any of the Technology and Intellectual Property
      contained in the License Agreement is invalid or unenforceable.

     

    (6)  Except
      as otherwise
      expressly set forth in this Agreement, CCTI 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 CCTI.
        CCTI has
        no assets, no liabilities or obligations of any kind, character or description
        except those listed on the attached schedules and exhibits.

       

      (k)  Financial
        Statements.
        The
        unaudited financial statements of CCTI, 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 CCTI’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.
        CCTI 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 CCTI except as specifically set
        forth
        in the financial statements and the other attached schedules and exhibits.
        There
        is no information known to CCTI or UTEK that would prevent the financial
        statements of CCTI 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
        CCTI 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
        CCTI 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 CCTI by any taxing authority, have been properly paid,
        except to the extent reflected on CCTI’s financial statements, where CCTI 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. CCTI has not received any notice of assessment
        or
        proposed assessment in connection with any tax returns, nor is CCTI 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. CCTI
        has not
        extended or waived the application of any statute of limitations of any
        jurisdiction regarding the assessment or collection of any taxes. There are
        no
        tax liens (other than any lien which arises by operation of law for current
        taxes not yet due and payable) on any of its assets. There is no basis for
        any
        additional assessment of taxes, interest or penalties. CCTI 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 CCTI. CCTI 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 latest balance sheet of CCTI provided to CTGI until the Closing
        Date, CCTI has not, and without the written consent of CTGI, 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; 

       

      
        
          
          

        

        
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      (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 CCTI; 

       

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

       

      (5)  Entered
        into any transaction or made any commitment not disclosed to CTGI in writing;
        

       

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

       

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

       

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

       

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

       

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

       

      (3)  The
        complete final License Agreement will be provided to CTGI; 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 CCTI’s property; and

       

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

    

    
       

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

       

      
        
          
          

        

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

       

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

       

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

       

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

       

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

       

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

    

    

    2.02  Representations
      and Warranties of CTGI.
      CTGI
      represents and warrants to UTEK and CCTI that to the best of its knowledge
      the
      facts set forth are true and correct. 

    
       

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

       

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

       

      (c)  Capitalization. The
        authorized capital of CTGI consists of 80,000,000
        shares authorized and 39,124,638 and 38,717,238 issued and outstanding,
        respectively of Common stock, par value $0.001 per share
        (CTGI
        Common Shares). On the Effective Date of the Acquisition, 39,495,868 CTGI
        Common Shares (which will include the 371,020 CTGI Common Shares to be issued
        at
        the Closing of the Acquisition) will be issued and outstanding. The CTGI
        Common
        Shares outstanding 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. 

       

      
        
          
          

        

        
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      (d)  Anti
        Dilution Adjustments.
        UTEK
        currently owns zero (0) CTGI Common Shares, and will be acquiring
        371,020 unregistered CTGI Common Shares; and based on a total of (39,495,868)
        issued CTGI Common Shares (on an as converted basis) this total will
        represent a 0.94% ownership position in CTGI Common shares as of June 24,
        2008 on an “as if converted basis”. For a period of six months from the
        Effective Date of this Agreement, the aggregate number of CTGI Common Shares
        that UTEK has received shall be adjusted proportionately by the Board of
        Directors of CTGI for any increase in the number of outstanding CTGI Common
        Shares 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, other than for previously agreed to
        disbursements prior to the Effective Date of this agreement.
         

    

    

    For
      purposes in this Agreement, “as if converted basis” shall mean total outstanding
      common shares after giving effect to the conversion of all outstanding equity
      securities including preferred stock or other convertible
      instruments.

    
       

      (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 CTGI is a party and will not create a default hereunder, and this
        Agreement constitutes a legal, valid and binding obligation of CTGI, 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 CTGI. 

       

      (g)  No
        Conflicting Agreements.
        Neither
        the execution and delivery of this Agreement nor the fulfillment of or
        compliance by CTGI 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 CTGI’s 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. 

       

      (h)  Consents.
        Assuming
        the correctness of UTEK and CCTI’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 CTGI or its assets or business.
        

       

      (i)  Financial
        Statements.
        The
        financial statements of CTGI included in its reports available on the EDGAR
        Website of the Securities and Exchange Commission on Form 10-QSB filed on
        May
        20, 2008 for the fiscal quarter ended March 31, 2008, together with all
        subsequent filings made with the Commission available at the EDGAR website
        (hereinafter referred to collectively as the Reports) contain all material
        information relating to CTGI and its operations and financial condition as
        of
        their respective dates which information is required to be disclosed
        therein.  Since the date of the financial statements included in the
        Reports, and except as modified in the Schedules hereto, there has been no
        material adverse changes relating to CTGI’s business, financial condition or
        affairs not disclosed in the Reports. The Reports do not contain any untrue
        statement of a material fact or omit to state a material fact required to
        be
        stated therein or necessary to make the statements therein, taken as a whole,
        not misleading in light of the circumstances when made.

       

      
        
          
          

        

        
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            17

          
            

          

        

        
          
          

        

      

       

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

       

      (k)  Compliance
        with Laws.
        CTGI is
        in compliance in all material respects 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 CTGI, threatened against CTGI materially affecting its assets
        or
        business (financial or otherwise), and CTGI 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 CTGI’s knowledge, 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. Except as disclosed
        in
        its Reports, CTGI has no knowledge of any existing or threatened occurrence,
        action or development that could cause a material adverse affect on CTGI
        or its
        business, assets or condition (financial or otherwise) or
        prospects.

       

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

       

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

    

    

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

       

      
        
          
          

        

        
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      (b)  Stock
        Transfer Restrictions.
        UTEK
        acknowledges that the CTGI Common Shares will not be registered and UTEK
        will
        not be permitted to sell or otherwise transfer the CTGI Common Shares in
        any
        transaction in contravention of the following legend, which will be imprinted
        in
        substantially the following form on the stock certificate representing CTGI
        Common 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, 6 months following the stock acquisition described
        herein, CTGI 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 CTGI Common Shares.  CTGI agrees to and promptly
        shall provide any information requested by UTEK or UTEK's counsel and to
        make
        further direction to its transfer agent as necessary for such issuance of
        an
        opinion regarding removal of the legend or the sale of such
        restricted shares under Rule 144 or other available exemption from
        registration. 

       

      (d)  Wrongful
        Delay.
        In the
        event that CTGI wrongfully fails to direct its transfer agent to remove the
        legend within fifteen (15) days of request by UTEK, CTGI shall be liable
        to an
        additional fee of ten percent (10%) of the current value of the shares held
        by
        UTEK, determined based on the closing price of the shares on the fifteenth
        day
        after the request is deemed received by CTGI, as well as any and all attorney
        fees and costs that UTEK may incur as a result of CTGI 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 by each party shall be
      provided to the other party. 

    

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

    

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

    

    3.04  Covenants.
      Except
      as permitted in writing, prior to Closing 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

       

      
        
          
          

        

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

    

    

    ARTICLE
      4 

    CONDITIONS
      PRECEDENT

    

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

    

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

    

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

    

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

    

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

    

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

    

    4.06.  The
      License Agreement will be valid and in full force and effect without any default
      in this Agreement. 

    

    4.07.  CTGI
      shall have received, at or prior to the Closing Date, each of the
      following:

    
       

      (a)  the
        stock
        certificates representing all of the currently issued and outstanding CCTI
        Shares, duly endorsed (or accompanied by duly executed stock powers) by UTEK
        for
        transfer of such shares to CTGI;

       

      (b)  all
        corporate records and documentation relating to CCTI’s business, all in a form
        and substance satisfactory to CTGI, including its Articles of Incorporation
        and
        Bylaws;

       

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

       

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

       

      (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 CCTI in Florida;

       

      
        
          
          

        

        
          Page
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            of 17

          
            

          

        

        
          
          

        

      

       

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

       

      (g)  all
        consents, assignments or related documents of conveyance to give CTGI 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 CTGI and CCTI, and

       

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

    

    

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

    

    4.09.  CTGI
      shall receive the resignation effective the Closing Date of each director and
      officer of CCTI.

    

    ARTICLE
      5

    INDEMNIFICATION
      AND LIABILITY
      LIMITATION

    

    5.01.  Survival
      of Representations and Warranties.

    

    (a)  The
      representations and warranties made by UTEK and CCTI 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 CTGI 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.
      CTGI
      agrees that UTEK shall not be liable under this agreement to CTGI 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. CTGI shall indemnify UTEK, and hold UTEK
      harmless against any and all claims by third parties for losses, damages or
      liabilities, including reasonable attorneys fees and expenses (“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.
      CTGI
      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 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.

    
       

      
        
          
          

        

        
          Page
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            of 17

          
            

          

        

        
          
          

        

      

       

      (a)  Limitation
        of Liability.
        CTGI
        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 consideration
        paid
        to UTEK under this Agreement.

       

      (b)  Limitation
        of Liability.
        UTK
        agrees that CTGI shall not be liable under this agreement to UTK or their
        respective successor’s, assigns or affiliates except where damages result
        directly from the gross negligence or willful misconduct of CTGI or its
        employees. In no event shall CTGI's liability exceed the total amount of
        the
        fees paid by CTGI under this agreement, nor shall CTGI be liable for incidental
        or consequential damages of any kind. UTK shall indemnify CTGI, and hold
        CTGI
        harmless against any and all claims by third parties for losses, damages
        or
        liabilities, including reasonable attorneys fees and expenses (“Losses”),
        arising in any manner out of or in connection with the rendering of services
        by
        CTGI under this Agreement, unless it is finally judicially determined that
        such
        Losses resulted from the gross negligence or willful misconduct of CTGI.
        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 CTGI.

    

    

    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 the State of Florida. The cost of arbitration shall be borne
      by
      the party against whom the award is rendered or, if in the interest of fairness,
      as allocated in accordance with the judgment of the arbitrators. All awards
      in
      arbitration made in good faith and not infected with fraud or other misconduct
      shall be final and binding. The arbitrators shall be selected as follows: one
      by
      CTGI, one by UTEK and a third by the two selected arbitrators. The third
      arbitrator shall be the chairman of the panel. 

     

    
      
        
        

      

      
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          of 17

        
          

        

      

      
        
        

      

    

     

    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 next page)

    

     

    
      
        
        

      

      
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          13
          of 17

        
          

        

      

      
        
        

      

    

    

      
        	
                CSMG
                  TECHNOLOGIES, INC.

              	
                CARBON
                  CAPTURE TECHNOLOGIES, INC.

              
	 	 
	 	 
	
                By:
                  /s/ Donald S. Robbins

              	
                By:
                  /s/ Joel Edelson

              
	
                  Donald
                  S.
                  Robbins,

              	
                  Joel
                  Edelson

              
	
                  Chief
                  Executive
                  Officer

              	
                  President

              
	 	 
	
                  Address:

              	
                  Address:

              
	
                  701
                  North Tower,
                  500 N. Shoreline

              	
                  2109
                  East Palm
                  Avenue

              
	
                  Corpus
                  Christi, TX
                  78471

              	
                  Tampa,
                  Florida
                  33605

              
	 	 
	 	 
	
                  Date:
                  6/24/08

              	
                  Date:
                  6/24/08

              
	 	 
	 	 
	 	 
	
                UTEK
                  CORPORATION

              	 
	 	 
	 	 
	
                By:
                  /s/ Clifford M. Gross, Ph.D.

              	 
	
                  Clifford
                  M. Gross,
                  Ph.D. 

              	 
	
                  Chief
                  Executive
                  Officer

              	 
	 	 
	
                  Address:

              	 
	
                  2109
                  East Palm
                  Avenue

              	 
	
                  Tampa,
                  Florida
                  33605

              	 
	 	 
	
                  Date:
                  6/24/08

              	 

      

    

     

     

    
      
        
        

      

      
        Page
          14
          of 17

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      A

     

    Outstanding
      Agreements 

    From
      the
      University of Ottawa

    

    
      	1)  	
              License
                Agreement 

            

    

     

     

     

     

    
      
        
        

      

      
        Page
          15
          of 17

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      B

     

    CARBON
      CAPTURE TECHNOLOGIES,
      INC.

    Financial
      Statements as of

     

    June
      ___, 2008

     

     

     

    
 

    
      
        
        

      

      
        Page
          16
          of 17

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      C

    

     
      

     

      Form
      10QSB for CSMG TECHNOLOGIES, INC.

     

    
      

    

    31
      March - 2008 

    Quarterly
      Report

     

    

    
 

     

    
      
        
        

      

      
        Page
          17
          of 17Exhibit
      10.2

    

      LICENSE
        AND OPTION AGREEMENT

       

      THIS
        AGREEMENT
        is made and entered into this 24th
        day of June 2008, by and between: 

      Carbon
        Capture Technologies, Inc.
        (CCTI
        *) (hereinafter referred to as the "LICENSEE") with its principal place of
        business at 2109 E. Palm Avenue, Tampa, Florida 33605 , and University of
        Ottawa, hereinafter referred to as the "LICENSOR"), and with its principal
        place
        of operation at 3042-800 King Edward Avenue, SITE, Ottawa, Ontario K1N 6N5
        Canada.

      

      WHEREAS
        LICENSOR
        is charged with management and licensing of intellectual properties developed
        at
        University of Ottawa and, under University of Ottawa intellectual property
        policy, inventions made by employees of University of Ottawa or made using
        the
        facilities of University of Ottawa are required to be assigned to University
        of
        Ottawa and managed by LICENSOR, and

      

      WHEREAS
        Dr.
        Abdelhhamid Sayari, and Dr. Peter Harlick ("INVENTORS") have developed novel
        adsorbents for the capture of carbon dioxide from a gas stream
        ("TECHNOLOGY");

      

      WHEREAS
        INVENTORS
        of the TECHNOLOGY have assigned all intellectual property rights in technology
        to
        LICENSOR;

      

      WHEREAS
        LICENSOR
        is the owner of all right, title, and interest in intellectual property,
        including, but not limited to, patent, and patent applications, know how
        and
        improvements set forth in Schedule “A” to this Agreement, and,

      

      WHEREAS
        LICENSOR
        understands and agrees that LICENSEE plans to be acquired in full within
        30 days
        by a third party company that is set up to commercialize TECHNOLOGY

      

      WHEREAS
        LICENSEE
and
        LICENSOR desire to establish a
        license
        to grant LICENSEE rights to use TECHNOLOGY to make, use and sell products
        and
        services in the fields of use, as set forth below;

      

      WHEREAS
        LICENSOR desires to grant to LICENSEE, and LICENSEE wishes to acquire, an
        option
        to obtain additional rights to subsequent technology or disclosures described
        in
        Schedule A and to certain patent rights and know-how of INVENTORS with respect
        thereto, subject to the terms and conditions set forth herein, with a view
        to
        developing and marketing products. 

       

      NOW,
        THEREFORE,
        in
        consideration of the promises and the covenants set forth herein, LICENSOR
        and
        LICENSEE agree as follows:

      

      I. DEFINITIONS
        

      

      The
        following definitions shall apply in the interpretation of this
        Agreement.

      

      1.1  “AFFILIATE”
of
        any
        company means any corporation which, directly or indirectly, controls or
        is
        controlled by, or is under direct or indirect common control with, such company;
        and for the purposes of this definition "control" (including "control by"
        and
        "under common control with") as used with respect to any corporation or company,
        shall mean the possession, directly or indirectly, of the power to direct
        or
        cause the direction of the management and policies of such corporation or
        company, through the ownership of more than 20% of the voting
        shares.

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      1.2  “CALENDAR
        QUARTER” means
        the three-month periods ending March 31, June 30, September 30, or December
        31
        in any year.

      

      1.3  “LICENSED
        INTELLECTUAL PROPERTY” shall mean all the intellectual property and know how in
        the FIELD OF USE, including, but not limited to, all patents, patent
        application(s), and all continuations, divisions, reexaminations, reissues
        and
        extensions thereof both foreign and domestic, controlled by LICENSOR,
        all
        ideas, methods, inventions, characterization and techniques, specialized
        knowledge or confidential information, and experience, and improvements
        developed by the Inventor which are unpublished/non-disclosed. 

      

      1.4  “LICENSED
        PRODUCTS” shall mean any product in the FIELD OF USE that incorporates, is
        covered by or is made, in whole or part, by the use of the LICENSED INTELLECTUAL
        PROPERTY.

      

      1.5  “FIELDS
        OF USE” shall
        mean all
        fields
        of use for CO2
        adsorbents related to closed circuit breathing systems for health, rescue,
        and
        recreation, industrial gas streams, and all
        confined spaces (buildings, vehicles, aerospace, marine). 

      

      1.6  “EFFECTIVE
        DATE” shall
        mean the date of the Agreement set forth above.

      

      1.7  “LICENSED
        TERRITORY”
shall mean worldwide.

      

      1.8  “NET
        SALES” shall mean
        the amounts received by LICENSEE and its AFFILIATES and SUBLICENSEES from
        the
        use of LICENSED
        PRODUCTS,
        or the
        sale of LICENSED
        PRODUCTS,
        less
        (i) discounts or rebates actually allowed from the billed amount, (ii) credits
        or allowances actually allowed upon claims or returns, and (iii) taxes or
        other
        government charges included in the amounts billed. For non-cash and partial-cash
        sales, NET SALES shall include the fair market value of non-cash consideration
        received for such sale of the same quantity of LICENSED
        PRODUCTS.
        For
        sales not at arms-length, NET SALES shall be equal to the fair market price
        of
        such LICENSED
        PRODUCTS
        as when
        transferred in comparable arms-length transactions. In the event that
LICENSED
        PRODUCTS
        are used
        by LICENSOR rather than sold, the parties shall agree upon an appropriate
        NET
        SALES price for each such use on which to base a royalty
        calculation.

      

      1.9  “SUBLICENSEE”
shall
        mean
        any non-affiliated third party to whom LICENSEE has granted a Sublicense.
        “Sublicense” shall mean an agreement in which LICENSEE (i) grants or otherwise
        transfers any of the rights licensed to LICENSEE hereunder or other rights
        that
        are relevant to designing, developing, testing, making, using, or selling
        of
LICENSED
        PRODUCTS,
        (ii)
        agrees not to assert such rights or to sue, prevent or seek a legal remedy
        for
        the practice of same, (iii) assigns or otherwise transfers this Agreement
        and/or
        the rights acquired by it, or (iv) is under an obligation to grant, assign
        or
        transfer any such rights or non-assertion, or to forebear from granting or
        transferring such rights to any other entity, including licenses, option
        agreements, right of first refusal agreements, or other agreements.

      

      1.10  “SUBLICENSING
        REVENUE”
shall mean the fair market cash value of any and all consideration received
        by
        LICENSOR from SUBLICENSEE under its sublicense, including without limitation
        license issue fees and other licensing fees, option fees, milestone payments,
        minimum annual royalties, equity or other payments of any kind whatsoever
        (but
        excluding running royalties paid for NET SALES of LICENSED
        PRODUCTS
        by
        SUBLICENSEE), irrespective of whether such revenues are received in the form
        of
        cash, barter, credit, stock, warrants, release from debt, goods or services,
        licenses back, or any other form whatever.

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       II.
         GRANT

      

      2.1  LICENSOR
        grants to
        LICENSEE an exclusive, royalty bearing license, extending to all of LICENSED
        TERRITORY, under LICENSED INTELLECTUAL PROPERTY to make, use, offer to sell,
        sell, and import LICENSED PRODUCTS throughout the term hereof in the FIELD
        OF
        USE. This grant shall be subject to the payment by LICENSEE to LICENSOR of
        all
        consideration as provided in this Agreement, and shall be further subject
        to the
        rights retained by LICENSOR to:

      

      a.   Publish
        the scientific findings from current or new research related to LICENSED
        INTELLECTUAL PROPERTY; and

       

      b.  To
        practice under the
LICENSED
        INTELLECTUAL PROPERTY
        for
        educational, research and other non-commercial internal purposes. Such
        reservation shall include the right to extend such right to practice under
        the
LICENSED
        INTELLECTUAL PROPERTY
        for
        educational and research purposes (but not any other non-commercial internal
        purpose) to subsequent employers of any of the Inventors, but only to the
        extent
        that such employers are research or educational institutions. Such reservation
        shall further include the right to provide technical information, and to
        grant
        licenses under the LICENSED
        INTELLECTUAL PROPERTY,
        to
        not-for-profit and governmental institutions for their internal research
        and
        scholarly use only.

      

      2.2  LICENSEE
        shall have the
        right to seek sublicenses subject to the terms and conditions of this agreement
        and as defined in Section VIII. LICENSEE will attach and incorporate by
        reference the provisions of this Agreement pertaining to payment obligations,
        patent applications, warranties, reporting requirements, and confidentiality,
        to
        any sub-license agreements entered into by LICENSEE. LICENSEE will provide
        LICENSOR with copies of the sub-license agreements evidencing a third party
        or
        SUBLICENSEE’S commitment to be bound by the terms and conditions of this
        Agreement and with sections pertaining to NET SALES prior to the execution
        of
        any sublicense agreement.

       

      2.3  This
        Agreement shall terminate on the later of 17 years from the EFFECTIVE DATE,
        or
        the date of the last of the LICENSED INTELLECTUAL PROPERTY to expire or to
        become publicly available, or by the terms specified in this
        Agreement.

       

      2.4  LICENSOR
        hereby grants to LICENSEE an option to obtain one or more exclusive, worldwide,
        royalty bearing licenses, under all or part of the LICENSOR Patent Rights
        (to
        the extent not exclusively licensed to LICENSEE in section 2.1) to make,
        to have
        made, to use, to sell, to import, to export and to have sold products related
        to
        subsequent technology or disclosures described in Schedule A and to certain
        patent rights and know-how of INVENTORS other than CO2
        adsorbents related to health care and industrial gas streams
        and a
        non-exclusive right to use the associated LICENSOR Technology in or outside
        the
        Field, with the right to sublicense. The period of time that LICENSEE may
        exercise said option shall begin on the Effective Date of this Agreement
        and
        shall expire 24 months following the Effective Date of this Agreement, or 60
        days prior to the expiration of priority years related to provisional or
        regular
        patent filings, whichever occurs first, (the "Option Period"). Upon receipt
        by
        LICENSOR of LICENSEE' written notice of its exercise of this option during
        the
        Option Period, the terms and conditions for such licensees) shall be negotiated
        in good faith during the following 90 days after exercise of the Option by
        the
        parties, such terms and conditions being typical for a license agreement
        between
        a university-licensor and an industry-licensee and consistent with LICENSOR's
        objective of having its technology productively used within a commercially
        reasonable time period and LICENSEE’s ability to productively use (or license
        for productive use) within a commercially reasonable time period; such terms
        and
        conditions shall include, for example, commercially reasonable terms and
        conditions for minimum annual royalties, dates by which various stages of
        commercial development are to have occurred, and a specification of the field
        in
        which the license is to be granted. All the option rights which LICENSEE
        has
        under this paragraph shall terminate on the anniversary date of the Effective
        Date of this Agreement unless included in the contemplated license signed
        by the
        first anniversary date or by a new extended date which is mutually agreed
        to and
        is either 30 days or 60 days from the anniversary date.

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      

      III.
        PAYMENT PROVISIONS

      

      3.1  LICENSEE
        agrees to pay
        LICENSOR a noncreditable, nonrefundable fee of $60,000 (the “License Fee”)due
        upon execution of the Agreement and, provided that the LICENSEE is not in
        default of this Agreement, such License Fee may be payable according to the
        appended payment schedule set forth in "Schedule B", provided that LICENSEE
        is
        not in default of the agreement. 

      

      3.2  Licensee
        agrees to pay
        LICENSOR for all documented patent prosecution costs for LICENSED INTELLECTUAL
        PROPERTY within 30 days of invoicing.

       

      3.3  LICENSEE
        agrees to pay to
        LICENSOR a running royalty of 3.0% based on the NET SALES of the LICENSED
        PRODUCTS by LICENSEE, AFILLIATES. 

       

      3.4  LICENSEE
        shall pay
        minimum annual royalties according to the following schedule: 

      

      
        	
                Year

              	
                Minimum
                  Royalty Payment 

              
	
                1st 

              	
                $
                  0            

              
	
                2nd 

              	
                $
                  10,000            

              
	
                3rd 

              	
                $
                  25,000            

              
	
                4th 

              	
                $
                  50,000            

              
	
                5th
                  &
                  each year thereafter until the end of the license term

              	
                $
                  100,000            

              

      

      

      Minimum
        annual royalties are fully creditable against earned royalties paid during
        the
        previous twelve-month period.

      

      3.5  LICENSEE
        shall pay LICENSOR 50% of all sublicense revenues (royalties, upfront fees,
        milestones, etc.) as described in Section 1.10, received from sublicensees.
        The
        sublicense royalties are not to fall below 1.5% (50% of 3%) of net sales
        that
        incorporate the licensed technology.

       

      3.6  In
        the
        case of a buyout or other change in majority ownership of LICENSEE, or a
        buyout
        of LICENSED PRODUCTS, all payment provisions are passed through, non-negotiable,
        and remain in effect for LICENSEE, sub-LICENSEE, or purchaser. LICENSEE shall
        inform any potential purchaser of this clause and present evidence to
        LICENSOR.

       

      3.7  If
        LICENSED INTELLECTUAL
        PROPERTY is not accepted as eligible or invalidated by a court of law or
        a
        countries patent office, LICENSEE shall pay only amounts accrued up until
        the
        date of such determination of invalidity.

      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      IV.
        DILIGENCE AND PATENT PROSECUTION

      

      4.1  LICENSEE
        agrees to use
        all reasonable efforts and diligence to proceed with the development,
        manufacture, and sale or lease of LICENSED PRODUCTS and to diligently develop
        markets for the LICENSED PRODUCTS. LICENSEE also agrees to pursue with
        reasonable effort and diligence and is responsible for any future technological
        developments and potential applications for patents arising out of LICENSED
        INTELLECTUAL PROPERTY. 

      

      4.2  LICENSOR
        agrees to
        provide reasonable limited assistance to the LICENSEE in order to ensure
        an
        efficient transfer and implementation of the technology. LICENSEE may seek
        to
        retain the services of LICENSOR under separate contracts to assist in the
        technological developments and patent applications. LICENSEE may also retain
        services from members of the research team in separate personal services
        agreements subject to contractual obligations to their primary employer and
        / or
        the LICENSOR. 

      

      4.3  LICENSOR
        shall retain
        ownership of any future technological developments it funds, and of any patent
        and patent applications arising out of LICENSED INTELLECTUAL PROPERTY. In
        such
        event the development is funded and pursued jointly, LICENSOR and LICENSEE
        may
        jointly pursue ownership.

      

      4.4  LICENSEE
        shall be
        responsible for the cost of prosecution and maintenance of patents and
        copyrights during the term of this Agreement, subject to the limitations
        of
        paragraph 4.6. The LICENSEE and LICENSOR shall jointly select and retain
        patent
        counsel to prosecute and maintain patents and copyrights during the term
        of this
        agreement.. LICENSOR shall fully cooperate and assist LICENSEE in all related
        matters. 

      

      4.5  All
        patents, patent
        applications, and copyrights on the LICENSED INTELLECTUAL PROPERTY shall
        be,
        assigned to LICENSOR, and LICENSOR's interest therein shall be recorded in
        the
        Canadian and U.S. Patent and Trademark Offices and appropriate corresponding
        foreign patent offices.

      

      4.6  LICENSOR
        shall maintain
        direct authority to instruct retained patent agent in the prosecution of
        any
        patent or patent application arising out of the LICENSED INTELLECTUAL PROPERTY.
        LICENSOR will copy LICENSEE on all correspondence directing the retained
        patent
        agent relating to the LICENSED INTELLECTUAL PROPERTY using the same method
        of
        communication as used to direct the patent agent. LICENSEE shall not be
        responsible for patent costs incurred in response to instructions provided
        by
        LICENSOR to the patent agent after LICENSEE has provided a written notification
        to the patent agent and LICENSOR that it is not willing to incur the patent
        related expenses to be incurred in response to the instructions. LICENSEE
        remains responsible for costs incurred relating to the LICENSED INTELLECTUAL
        PROPERTY normally incurred as a matter of normal procedural activities carried
        out by the retained patent counsel, that are not a direct result of specific
        instructions provided by LICENSOR. 

      

      4.7  LICENSOR
        shall provide
        LICENSEE with copies of all papers received from and to be filed in the Canadian
        and U.S. Patent and Trademark Offices, and appropriate corresponding foreign
        patent and copyright offices.

      

      4.8  LICENSEE
        shall be
        entitled, in its discretion, to abandon any application or granted patent
        or
        copyright if it considers that the ongoing costs of the same are not justified,
        provided that LICENSEE notifies LICENSOR prior to such abandonment and allows
        LICENSOR opportunity to avoid such abandonment. In no event shall such
        reasonable opportunity be less than three (3) months prior to abandonment.
        If
        LICENSEE chooses to abandon an application or granted patent or copyright
        under
        this provision and LICENSOR, at its sole expense, continues pursuing the
        application, granted patent or copyright, LICENSEE shall retain no right
        to
        exclusively use or exclusively exploit the LICENSED INTELLECTUAL PROPERTY
        or any
        related copyright in the country, territory or jurisdiction which granted
        the
        patent or copyright.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      V.
        REPORTING OBLIGATIONS

      

      5.1  LICENSEE,
        within sixty
        (60) days after each CALENDAR QUARTER of each year, shall deliver
        to

      LICENSOR
        true and accurate reports, pertaining to NET SALES of LICENSED PRODUCTS,
        which
        shall include at least the following information:

       

      a)
        The
        identity of each LICENSED PRODUCTS being developed, manufactured, marketed
        and/or sold;

      b)
        The
        stage of development of each LICENSED PRODUCTS in each country in the LICENSED
        TERRITORY;

      c)
        The
        number of each LICENSED PRODUCTS manufactured and/or sold in each country
        in the
        LICENSED TERRITORY;

      d)
        NET
        SALES of LICENSED PRODUCTS sold by the LICENSEE and all SUBLICENSEES, prepared
        in accordance with generally accepted accounting principles, on a country
        by
        country basis, for each LICENSED PRODUCTS;

      e)
        Any
        and all deductions from NET SALES made by LICENSEE;

      f)
        Names
        and addresses of all SUBLICENSEES of LICENSEE;

      g)
        Total
        royalties due.

      

      5.2  Progress
        Report. On or
        before December 1 of each year until LICENSEE markets LICENSED PRODUCTS,
        LICENSEE shall make a written annual report to LICENSOR covering the preceding
        year, regarding the progress of LICENSEE toward commercial use of LICENSED
        PRODUCTS. Such report shall include, as a minimum, information sufficient
        to
        enable LICENSOR to ascertain progress by LICENSEE toward meeting the diligence
        requirements of Section 4.1.

      

      5.3  With
        each report
        submitted under Section 5.1 of this Agreement, LICENSEE shall make all payments
        to LICENSOR in US dollars due and payable under Section 3 of this Agreement.
        If
        no royalties are due, LICENSEE shall so report.

      

      5.4  LICENSEE
        shall be
        obligated to pay royalties on all LICENSED PRODUCTS that are either sold
        or
        produced under this license. LICENSEE also agrees to make a written report
        to
        LICENSOR within 90 days after the termination of the license pursuant to
        Section
        VII. LICENSEE shall continue to make reports concerning royalties on the
        sale of
        LICENSED PRODUCTS payable in accordance with Section III after termination
        of
        the license, until such time as all such LICENSED PRODUCTS produced under
        the
        license have been sold or destroyed. Concurrent with the submittal of each
        post-termination report, LICENSEE shall pay LICENSOR all applicable royalties.
        

      

      5.5  LICENSEE
        shall keep full,
        true and accurate books of account containing all particulars that may be
        necessary for the purpose of showing the amounts payable to LICENSOR hereunder.
        Said books of account shall be kept at LICENSEE's principal place of business.
        Said books and supporting data shall be open at all reasonable times for
        5 years
        following the end of the calendar year to which they pertain, to the inspection
        of LICENSOR or its agents for the purpose of verifying LICENSEE's royalty
        statement or compliance in other respects with this Agreement. Said records
        will
        include general ledger records showing cash receipts and expenses, and records
        which include production records, customers, serial numbers, and related
        information in sufficient detail to enable the royalties payable hereunder
        by
        LICENSEE to be determined. Such examination is to be made by LICENSOR or
        its
        designee, at the expense of LICENSOR. Should such inspection, however, lead
        to
        the discovery of a greater than five percent (5%) discrepancy in reporting
        to
        LICENSOR's detriment, LICENSEE shall pay the full cost of such inspection.
        LICENSEE shall pay any amounts such inspection reveals to be due and owing
        within thirty (30) days of the receipt of an invoice for it.

      

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      

      VI.
        INFRINGEMENT

      

      6.1  LICENSEE
        acknowledges and agrees that all rights licensed by the
        LICENSOR
        hereunder are licensed “as is” and without any representation, indemnification
        or warranty with respect to possible infringement of third party rights.
        In the
        event of a third party infringement action against either party with respect
        to
        any LICENSED INTELLECTUAL PROPERTY, LICENSEE will defend LICENSOR at LICENSEE’s
        expense, with the understanding that breaching such obligation may result
        in a
        default judgment against LICENSEE, its Affiliates, Sublicensees, and/or LICENSOR
        (however, LICENSEE’s failure to defend shall not prevent LICENSOR from defending
        itself). LICENSEE shall indemnify, defend and hold LICENSOR
        harmless
        from any such judgment, and without limitation shall pay any damages awarded
        in
        any judgment against LICENSOR. LICENSOR will cooperate as requested by LICENSEE,
        and will be compensated by LICENSEE for its reasonable out-of-pocket expenses
        incurred in such cooperation, which LICENSOR
        will
        only
        be required to expend if LICENSEE has approved same for reimbursement. No
        settlement, consent judgment, or other voluntary final disposition of any
        suit
        that would affect the validity, scope or enforceability of the LICENSED
        INTELLECTUAL PROPERTY, by estoppel, admission or otherwise, or the
        LICENSOR’
        rights
        in or to same, may be entered into without the consent of LICENSOR.

      

      6.2  LICENSEE
        and LICENSOR shall promptly inform each other in writing of any alleged
        infringement of the LICENSED
        INTELLECTUAL PROPERTY
        by a
        third party. 

      

      6.3  During
        the term of this agreement, LICENSOR will have the right, but shall not be
        obligated, to prosecute at its own expense all infringements of the LICENSED
        INTELLECTUAL PROPERTY
        and, in
        furtherance of such right, LICENSOR will include LICENSEE, upon agreement
        by
        LICENSEE, as a party plaintiff in any such suit, at LICENSEE’S expense. Each
        party shall bear its own costs of prosecuting any such infringement action,
        shall be entitled to prove and recover any damages, and distribution shall
        be
        governed by Section 6.4. Upon mutual agreement of the parties, each may assign
        to the other its right to sue for past, present, or future infringement of
        the
LICENSED
        INTELLECTUAL PROPERTY,
        and to
        agree to a method to allocate damages recovered by the assignee of such
        rights.

      

      6.4  LICENSOR
        or LICENSEE
        shall have three (3) months after having been notified of any alleged
        infringement to investigate whether infringement can be established. If LICENSOR
        determines that infringement exits, then it shall have three (3) months to
        negotiate in good faith with the alleged infringer to resolve the dispute.
        At
        the end of such period, if the dispute has not been resolved, LICENSOR shall
        have forty-five (45) days to commence prosecuting an infringement action
        (the
        filing period). If LICENSOR determines that infringement can be established
        and
        (a) at any time decides not to pursue an action against the alleged infringer,
        or (b) fails to commence prosecuting an action before the end of the filing
        period, then LICENSOR shall notify LICENSEE of its intention not to bring
        suit
        against any alleged infringer in the LICENSED TERRITORY. In those events
        only,
        LICENSEE shall have the right but shall not be
        obligated, to prosecute at its own expense any infringement of the LICENSED
        INTELLECTUAL PROPERTY,
        and
        LICENSOR hereby agrees at its discretion and upon terms to be mutually agreed
        by
        the parties, to either be named as a plaintiff in any such proceedings or
        to
        assign its rights to sue for infringement. LICENSEE shall pay all of LICENSOR’S
        costs and reasonable attorney fees incurred in such action. No settlement,
        consent judgment, or other voluntary final disposition of the suit shall
        be
        entered into without the consent of LICENSOR, which consent shall not be
        unreasonably withheld. LICENSEE hereby indemnifies LICENSOR against any order
        for costs or attorney fees that may be made against LICENSOR in such proceedings
        instituted by LICENSEE.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      6.5  In
        the event that
        LICENSOR shall undertake the enforcement and/or defense of the LICENSED
        INTELLECTUAL PROPERTY
        by
        litigation, any monetary recovery by LICENSOR, shall be divided equally between
        LICENSOR and LICENSEE, after recovering of attorneys and court costs. In
        the
        event that LICENSEE undertakes the enforcement and/or defense of the
LICENSED
        INTELLECTUAL PROPERTY
        by
        litigation, any monetary recovery by LICENSEE shall be shared equally with
        LICENSOR, after recovering of attorneys and court costs.

      

      6.6  In
        any infringement suit
        that either party may institute to enforce the LICENSED
        INTELLECTUAL PROPERTY
        pursuant
        to this Agreement, the other party hereto shall, at the request of the party
        initiating such suit and upon reasonable notice, cooperate in all respects
        and,
        to the extent possible, have its employees testify when requested and make
        available relevant records, papers, information samples, models, specimens
        and
        the like.

      

      6.7  LICENSEE,
        during the
        exclusive period of this Agreement, shall have the sole right, subject to
        approval by LICENSOR, which shall not be unreasonably withheld, in accordance,
        with the terms and conditions herein to sublicense any alleged infringer
        in the
        LICENSED TERRITORY for future use of LICENSED
        INTELLECTUAL PROPERTY.
        Prior
        to the distribution of sublicensing fees received from an alleged infringer
        as
        specified in Section III, LICENSOR shall be compensated for any and all expenses
        incurred by it, if any, in that regard prior to the commencement of the
        sublicense with the infringer.

      

      6.8  In
        the event of any legal
        action alleging invalidity or noninfringement of any of the LICENSED
        INTELLECTUAL PROPERTY
        shall be
        brought against LICENSEE, or LICENSOR, LICENSOR, at its option, shall have
        the
        right within thirty (30) days after the commencement of such action, to join
        with LICENSEE or initiate defense of the action at its own expense. If LICENSOR
        chooses not to intervene, LICENSEE shall have the option to intervene and
        take
        over the sole defense at its own expense.

      

      

       VII.
        TERMINATION

      

      7.1  The
        provisions of this
        Agreement, having come into force on the Effective Date, shall, unless
        terminated earlier for any reason, continue in force in accordance with their
        respective terms as indicated in Section 2.3.

      

      7.2  LICENSEE
        may terminate
        this Agreement at any time by giving LICENSOR ninety (90) days written notice.
        In the event of termination of this Agreement by LICENSEE, LICENSEE shall
        have
        no further rights under this Agreement; however, LICENSEE will remain obligated
        for the License Fee, any royalties due, or other expenses incurred up until
        the
        date of termination including royalty on sale of inventory in stock after
        the
        date of termination. 

       

      7.3  LICENSOR
        may terminate
        this Agreement if LICENSEE:

      
        	
              	a.	
                Fails
                  to pay on the due date any sum due under Section 3 of this Agreement
                  and
                  fails to correct such default within ninety (90) days after receipt
                  of
                  written notice of default by
                  LICENSOR;

              

      

      
        	
              	b.	
                Fails
                  to provide reports on the due date specified under Section 5 of
                  this
                  Agreement or fails to satisfy the reasonable effort and diligence
                  requirement as specified in Section 4.1 and fails to correct such
                  default
                  within ninety (90) days after receipt of written notice of default
                  by
                  LICENSOR;

              

      

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      
        	
              	c.	
                Files
                  for bankruptcy protection in any jurisdiction in which it has operations,
                  makes any proposal for the benefit of its creditors generally,
                  makes any
                  filing for protection from creditors or to allow for restructuring
                  or
                  reorganization or ceases to actively carry on
                  business.

              

      

       

      7.4
        Notwithstanding the above, this Agreement and the licenses granted herein
        shall
        immediately and automatically terminate without notice in the event LICENSEE,
        or
        its AFFILIATES, SUBLICENSEES or other party acting under authority of LICENSEE,
        violates any provision of the Indemnification and Insurance articles. A
        termination occurring under this paragraph shall occur and become effective
        at
        the time of the violation that causes such termination, and LICENSEE and
        its
        Affiliates and Sublicensees shall have no right to continue clinical trials
        or
        complete production and sale of LICENSED PRODUCTS. Notwithstanding the
        foregoing, to the extent that such rights are still available for licensing,
        LICENSOR shall have the right to reinstate the effectiveness of this Agreement
        by obtaining the required insurance, whereupon this Agreement shall
        automatically become effective as of the date of reinstatement of said
        insurance, and shall remain in full force and effect without any further
        action
        of the parties hereto until termination or expiration of this Agreement
        according to its terms.

      

      7.5  Either
        party may
        forthwith terminate this Agreement by written notice to the other
        if:

      
        	
              	a.	
                Anything
                  analogous to any of the foregoing under the law of any jurisdiction
                  occurs
                  in relation
                  to that other party; or

              

      

      
        	
              	b.	
                If
                  the other party ceases, or threatens to cease, to carry on
                  business.

              

      

      

      7.6  Upon
        termination or
        expiration of this agreement, for any reason, Licensee shall
        immediately:

      
        	
              	a.	
                Pay
                  any outstanding portion of the License Fee;

              

      

      
        	
              	b.	
                Pay
                  royalties accrued or accruable to the date of termination or
                  expiration;

              

      

      

      7.6.5   
        Further,
        notwithstanding the termination or expiration of this Agreement by either
        party
        for any reason, the following provisions shall continue in full force and
        effect
        after said termination or expiration:

      
        	
              	a.	
                Any
                  cause of action or claim of LICENSEE or LICENSOR, accrued or to
                  accrue,
                  because of any breach or default by the other party shall survive
                  termination or expiration; and

              

      

      
        	
              	b.	
                The
                  provisions of Sections V, and Paragraphs 9.6, and 9.8, and any
                  other
                  provisions that by their nature are intended to survive after termination
                  or expiration.

              

      

      

      7.7  If
        LICENSOR terminates
        the Agreement, LICENSEE shall have no claim to the use of the LICENSED
        INTELLECTUAL PROPERTY.

       

      7.7  No
        relaxation,
        forbearance, delay or indulgence by either party in enforcing any of the
        terms
        of this Agreement or the granting of time by either party to the other shall
        prejudice, affect or restrict the rights and powers of the former hereunder
        nor
        shall any waiver by either party of a breach of this Agreement be considered
        as
        a waiver of any subsequent breach of the same or any other provision
        hereof.

      

      7.8  The
        rights to terminate
        this Agreement given by this clause shall not prejudice any other right or
        remedy of either party in respect of the breach concerned (if any) or any
        other
        breach.

      

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      

      VIII.
        SUBLICENSE(S)

      

      8.1  If
        LICENSEE is unable or
        unwilling to serve or develop a potential market or market territory for
        which
        there is a willing SUBLICENSEE(s), LICENSEE will, upon LICENSOR's approval,
        negotiate in good faith a sublicense(s) hereunder.

      

      8.2  Any
        sublicense(s) granted by LICENSEE under this Agreement shall be subject and
        subordinate to terms and conditions of this Agreement, except:

      

      
        	
              	a.	
                Sublicense
                  terms and conditions shall reflect that any SUBLICENSEE(s) shall
                  not
                  further sublicense; and

              

      

      
        	
              	b.	
                The
                  earned royalty rate specified in the sublicense(s) may be at higher
                  rates
                  than the rates in this Agreement.

              

      

      

      8.3  Any
        such
        sublicense(s) also shall expressly include the provisions pertaining to payment
        obligations, patent applications, warranties, reporting requirements, and
        confidentiality, for the benefit of LICENSOR and provide for the transfer
        of all
        obligations, including the payment of royalties specified in such sublicense(s),
        to LICENSOR or its designee, in the event that this Agreement is
        terminated.

      

      8.4   LICENSEE
        agrees to provide LICENSOR a copy of any sublicense granted pursuant to Section
        VIII.

      

      

      IX.
        MISCELLANEOUS

      

      9.1  Nothing
        in this Agreement
        shall create, or be deemed to create, a partnership, or the relationship
        of
        principal and agent, between the parties.

      

      9.2  Notice
        of Bankruptcy.
        LICENSEE must provide notice to LICENSOR of its intention to file a voluntary
        petition in bankruptcy, or of another's intention to file an involuntary
        petition in bankruptcy, said notice to be received by LICENSOR at least sixty
        (60) days prior to the filing of such a petition. A party's filing without
        conforming to this requirement shall be deemed a material, pre-petition
        incurable breach.

      

      9.3  Assignment.
        With the
        exception of this transaction, and the planned acquisition of the LICENSEE,
        so
        long as LICENSEE is not in breach of this Agreement in any respect, LICENSEE
        may
        assign or otherwise transfer this Agreement and/or the rights acquired by
        it
        hereunder upon obtaining consent from the LICENSOR for the same (such consent
        will not be unreasonably withheld), to the extent that such assignment or
        transfer is accompanied by a sale or other transfer of LICENSEE’S entire
        business, regardless of whether such transfer is in the form of a sale of
        the
        LICENSEE’S assets, a sale of the majority shares of LICENSEE’S Equity, a merger,
        an equity exchange, or other form of transfer. LICENSEE shall give the LICENSOR
        written notice of LICENSEE’S intent to assign or transfer this Agreement thirty
        (30) days prior to completion of such assignment or transfer, along with
        a copy
        of such assignment agreement, pursuant to which such assignee or transferee
        shall have agreed in writing to be bound by the terms and conditions of this
        Agreement. Upon completion of such assignment or transfer, LICENSEE shall
        immediately provide the LICENSOR with payment of any License Fee payments
        outstanding according to the Payment Schedule listed in Appendix B, and
        thereafter the term “LICENSEE” as used herein shall include such assignee or
        transferee.  If LICENSEE shall sell or otherwise transfer its entire
        business, and the transferee shall not have agreed in writing to be bound
        by the
        terms and conditions of this Agreement, or the Agreement and/or the rights
        acquired by it hereunder upon obtaining consent from the LICENSOR and such
        transferee do not agree upon new licensing terms and conditions, within sixty
        (60) days of such sale or transfer, the LICENSOR shall have the right to
        terminate this Agreement.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      9.4  Subject
        to Section 9.3 of
        this Agreement, the clauses are personal to the parties and neither party
        may
        assign, mortgage, charge or license any of its rights hereunder, nor may
        either
        party sub-contract or otherwise delegate any of its obligations hereunder,
        except with the prior written consent of the other party.

      

      9.5  LICENSEE
        shall (i) to the
        extent reasonably practical, place in a conspicuous location on all patented
        PRODUCTS made pursuant to this Agreement a patent notice in accordance with
        35
        U.S. C. §287 consisting of the word "Patent" or "Patents" and the number or
        numbers of the United States patent or patents licensed hereunder and (ii)
        comply in all respects with the laws of the country of manufacture, and/or
        sale
        of the LICENSED INTELLECTUAL PROPERTY with respect to marking such PRODUCTS
        so
        as to ensure LICENSOR of full protection and rights under such laws. LICENSEE
        shall include the provisions of this clause in all sub-licenses with third
        parties and Affiliates.

      

      9.6  LICENSEE
        shall at all
        times during the term of this Agreement and thereafter indemnify, defend
        and
        hold LICENSOR, its trustees, directors, officers, employees and affiliates
        harmless against all claims, proceedings, demands and liabilities, including
        legal expenses arising out of the death of or injury to any person or persons
        or
        out of any damages to property resulting from the research, development,
        production, manufacture, sale, modification, use, import or advertisement
        of
        LICENSED PRODUCTS or arising from any obligation of LICENSEE
        hereunder.

      

      9.7  In
        the event that
        LICENSEE or a sub-LICENSEE of LICENSEE conducts studies involving human subjects
        and LICENSED INTELLECTUAL PROPERTY, and upon commencement of commercial sales
        of
        LICENSED PRODUCTS, LICENSEE shall obtain and carry in full force and effect
        commercial, general liability insurance which shall protect LICENSEE and
        LICENSOR with respect to events set forth above. Such insurance shall be
        written
        by a reputable company authorized to due business in the United States, shall
        list LICENSOR as an additional named insured thereunder, shall be endorsed
        to
        include PRODUCTS liability coverage and shall require reasonable written
        notice
        to be given to LICENSOR prior to any cancellation or material change thereof.
        The limits of such insurance shall not be less than one million dollars
        ($1,000,000) US per occurrence with an aggregate of three million dollars
        ($3,000,000) US for personal injury or death, and one million dollars
        ($1,000,000) US per occurrence with aggregate of three million dollars
        ($3,000,000) US for property damage. LICENSEE shall provide LICENSOR with
        Certificates of Insurance evidencing same.

      

      9.8  Disclaimers.
        Nothing in
        this Agreement shall be construed as (i) a warranty or representation by
        the
        LICENSOR
        as to
        the validity or scope of any LICENSED INTELLECTUAL PROPERTY, (ii) a warranty
        or
        representation that anything made, used, imported, developed, promoted, offered
        for sale, sold, or otherwise disposed of under any license granted in this
        Agreement does not or will not infringe patents, trade secrets or other
        proprietary rights of third parties; (iii) an obligation to bring or prosecute
        actions or suits against third parties for infringement; (iv) conferring
        the
        right to use in advertising, publicity or otherwise any trademark, trade
        name,
        or names, or any contraction, abbreviation, simulation or adaptation thereof
        of
        LICENSOR; (v) conferring by implication, estoppel or otherwise any license
        or
        rights under any patents of LICENSOR other than the LICENSED INTELLECTUAL
        PROPERTY; (vi) any other representations or warranties, either express or
        implied, unless specified in this Agreement. LICENSOR DISCLAIMS AND MAKES
        NO
        EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
        PURPOSE WITH RESPECT TO THE LICENSED RIGHTS, OR ANY LICENSED
        PRODUCTS.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      9.9  For
        the purposes of this
        Agreement "Force Majeure” means any circumstances beyond the reasonable control
        of either party including, without limitation, any strike, lock-out, or other
        form of industrial action. If either party is affected by Force Majeure,
        it
        shall forthwith notify the other party of the nature and extent thereof.
        Neither
        party shall be deemed to be in breach of this Agreement, or otherwise be
        liable
        to the other, by reason of any delay in performance, or the non-performance,
        of
        any of its obligations under this Agreement, to the extent that such delay
        or
        non-performance is due to any Force Majeure of which it has notified the
        other
        party, and the time for performance of that obligation shall be extended
        accordingly. If the Force Majeure in question prevails for a continuous period
        in excess of six (6) months, the parties shall enter into bona fide discussions
        with a view to alleviating its effects, or to agreeing upon such alternative
        arrangements as may be fair and reasonable.

      

      9.10  LICENSEE
        shall not use
        the names or trademarks of LICENSOR, nor any adaptation thereof, nor the
        names
        of any of its employees, in any advertising, promotional or sales literature
        without prior written consent obtained from LICENSOR, in each case, except
        that
        the LICENSEE may state that it is a LICENSEE of LICENSOR with respect to
        the
        LICENSED INTELLECTUAL PROPERTY and it may cite published scientific literature
        by employees of LICENSOR that pertains to the LICENSED INTELLECTUAL
        PROPERTY.

      

      9.11  All
        Notices shall be made
        in writing to the individuals and addresses noted below, and shall be sent
        by
        certified mail, returned receipt requested. If the individual to whom notices
        are to be given, or address where notices are to be sent changes for any
        party,
        that party shall promptly notify the other party accordingly.

      

      Attention:
        Joel Edelson

      President

      Carbon
        Capture Technologies, Inc.

      2109
        E.
        Palm Avenue

      Tampa,
        Florida 33605

      

      Attention:
        D. Joseph Irvine

      Director

      Office
        of
        Technology Transfer & Business Enterprise

      University
        of Ottawa

      800
        King
        Edward Avenue (3042), SITE

      Ottawa,
        Ontario K1N 6N5 Canada 

      

      

      9.12  This
        Agreement contains
        the entire and only agreement and understanding between the parties and
        supersedes all preexisting agreements between them respecting its subject
        matter. Any representation, promises, or condition in connection with such
        subject matter that is not incorporated in this Agreement shall not be binding
        on either party. No modification, renewal, waiver, and no termination of
        this
        Agreement or any of its provisions shall be binding upon the party against
        whom
        enforcement of such modification, renewal, waiver or termination is sought,
        unless made in writing and signed on behalf of such party by one of its duly
        authorized officers. As used herein, the word "termination" includes any
        and all
        means of bringing an end prior to its expiration by its own terms of this
        Agreement, or any provisions thereof, whether by release, discharge, abandonment
        or otherwise.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      9.13  This
        Agreement shall be
        construed, governed, interpreted and applied in accordance with the laws
        of the
        Province of Ontario and Canada as applicable, except that questions affecting
        the construction and effect of any patent shall be determined by the law
        of the
        country in which the patent was granted. Any legal action or proceeding relating
        to this Agreement or any document or instrument related hereto shall be brought
        only in the courts of the Ontario, Canada, and by its execution and delivery
        of
        this Agreement, LICENSOR hereby accepts for itself and in respect to its
        property, generally and unconditionally, the jurisdiction of the aforesaid
        courts.

      

      9.14  This
        Agreement may be
        executed in one or more counterparts and any party hereto may execute any
        such
        counterparts each of which shall be deemed an original and all of which,
        taken
        together, shall constitute but one and the same document. It shall not be
        necessary in making proof of this document or any counterpart hereof to produce
        or account for any of the other counterparts.

      

      9.15  Time
        shall always be of
        the essence.

      

      9.16  The
        provisions of this
        Agreement are severable, and in the event that any provisions of this Agreement
        shall be determined to be invalid or unenforceable under any controlling
        body of
        the law, such invalidity and unenforceability shall not in any way affect
        the
        validity or enforceability of the remaining provisions hereof. In the event
        the
        validity or unenforceability of any provision of this Agreement is brought
        into
        question because of the decision of a court of competent jurisdiction, LICENSOR,
        by written notice to LICENSEE may revise the provision in question or may
        delete
        it entirely so as to comply with the decision of said court.

      

      9.17  The
        failure of either
        party to assert a right hereunder or to insist upon compliance with any term
        or
        condition of this Agreement shall not constitute a waiver of that right or
        excuse a similar failure to perform any such term or condition by the other
        party.

      

      9.18  All
        reports and documents
        to be forwarded to LICENSOR shall be in the English Language.

      

      9.19  All
        payments required
        under this Agreement shall be made in U.S. Dollars. LICENSEE agrees to pay
        interest of 1.5% per month, the interest being compounded monthly, or two
        hundred fifty dollars ($250.00), whichever is greater, on any delinquent
        payments to LICENSOR. LICENSEE shall calculate the correct late payment charge,
        and shall add it to each such late payment. LICENSEE shall pay for all costs
        and
        reasonable attorneys fees incurred by LICENSOR in collecting payments due
        to
        LICENSOR. 

      

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the parties have caused this Agreement to be executed in
        duplicate as first above written.

      

      

      AGREED
        AND ACCEPTED:

      

      

      CARBON
        CAPTURE TECHNOLOGIES INC.:

      

        
          	
                  By:
                    

                		
                  Date: 
                    June 24, 2008

                

        

        

        

        

        UNIVERSITY
          OF OTTAWA

        

        

        

        
          	
                  By:
                    

                	/s/
                  D. Joe Irvine	
                  Date:
                    June 25, 2008 

                

        

      

       

      
 

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      Schedule
        “A”

      Patents
        and Patent Applications 

      

      	·  	
              WO2006094411
                & WO2004054708; Inventors: Abdelhamid Sayari, Ph.D. and Peter Harlick,
                Ph.D.; titled “FUNCTIONALIZED ADSORBENT FOR REMOVAL OF ACID GASES AND USE
                THEREOF” and “AMINE MODIFIED ADSORBENT, ITS PREPARATION AND USE FOR DRY
                SCRUBBING OF ACID GASES” 

            

      	·  	
              Know-how
                owned by LICENSOR
                necessary to assist in bringing the technology to market in areas
                where
                patent coverage does not exist.

            

      	·  	
              Intellectual
                property related to the high pressure use of mesoporous materials
                such as
                MCM 41, as outlined in the draft paper entitled "Insights
                into the adsorption of dry CO2 on MCM-41 silica at room
                temperature"

            

      

      .

      Schedule
        "B"

      Payment
        Schedule for License fee

      

      1.
        $30,000 is payable 12 months from the EFFECTIVE DATE.

      

      2.
        $30,000 is payable 24 months from the EFFECTIVE DATE.

       

       

      
        
          
          

        

        
          15

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