Document:

pebble_s1-ex1001.htm

    Exhibit 10.01

     

    Risk
Disclosure Statement

    for
Futures and Options

    
      

      This
brief statement does not disclose all of the risks and other significant aspects
of trading in futures and options. In light of the risks, you should undertake
such transactions only if you understand the nature of the contracts (and
contractual relationships) into which you are entering and the extent of your
exposure to risk. Trading in futures and options is not suitable for many
members of the public. You should carefully consider whether trading is
appropriate for you in light of your experience, objectives, financial resources
and other relevant circumstances.

       

      Futures

      1. Effect
of "Leverage" or "Gearing"

      Transactions
in futures carry a high degree of risk. The amount of initial margin is small
relative to the value of the futures contract so that transactions are
'leveraged" or "geared." A relatively small market movement will have a
proportionately larger impact on the funds you have deposited or will have to
deposit: this may work against you as well as for you. You may sustain a total
loss of initial margin funds and any additional funds deposited with the firm to
maintain your position. If the market moves against your position or margin
levels are increased, you may be called upon to pay substantial additional funds
on short notice to maintain your position. If you fail to comply with a request
for additional funds within the time prescribed, your position may be liquidated
at a loss and you will be liable for any resulting deficit.

       

      2. Risk-reducing
orders or strategies

      The
placing of certain orders (e.g. "stop-loss" orders, where permitted under local
law, or "stop-limit" orders) which are intended to limit losses to certain
amounts may not be effective because market conditions may make it impossible to
execute such orders. Strategies using combinations of positions, such as
"spread" and "straddle" positions may be as risky as taking simple "long" or
"short" positions.

       

      Options

      3. Variable
degree of risk

      Transactions
in options carry a high degree of risk. Purchasers and sellers of options should
familiarize themselves with the type of option (i.e. put or call) which they
contemplate trading and the associated risks. You should calculate the extent to
which the value of the options must increase for your position to become
profitable, taking into account the premium and all transaction
costs.

       

      The
purchaser of options may offset or exercise the options or allow the options to
expire. The exercise of an option results either in a cash settlement or in the
purchaser acquiring or delivering the underlying interest. If the option is on a
future, the purchaser will acquire a futures position with associated
liabilities for margin (see the section on Futures above). If the purchased
options expire worthless, you will suffer a total loss of your investment which
will consist of the option premium plus transaction costs, If you are
contemplating purchasing deep-out-of the-money options, you should be aware that
the chance of such options becoming profitable ordinarily is
remote.

       

      Selling
(Writing" or "granting") an option generally entails considerably greater risk
than purchasing options. Although the premium received by the seller is fixed,
the seller may sustain a loss well in excess of that amount. The seller will be
liable for additional margin to maintain the position if the market moves
unfavorably. The seller will also be exposed to the risk of the purchaser
exercising the option and the seller will be obligated to either settle the
option in cash or to acquire or deliver the underlying interest. If the option
is on a future, the seller will acquire a position in a future with associated
liabilities for margin (see the section on Futures above). If the option is
"covered" by the seller holding a corresponding position in the underlying
interest or a future or another option, the risk may be reduced. If the option
is not covered, the risk of loss can be unlimited.

       

      Certain
exchanges in some jurisdictions permit deferred payment of the option premium,
exposing the purchaser to liability for margin payments not exceeding the amount
of the premium. The purchaser is still subject to the risk of losing the premium
and transaction costs. When the option is exercised or expires, the purchaser is
responsible for any unpaid premium outstanding at that time.

       

      Additional
risks common to futures and options

      4. Terms
and conditions of contracts

      You
should ask the firm with which you deal about the terms and conditions of the
specific futures or options which you are trading and associated obligations
(e.g., the circumstances under which you may become obligated to make or take
delivery of the underlying interest of a futures contract and, in respect to
options, expiration dates and restrictions on the time for exercise). Under
certain circumstances the specifications of outstanding
contracts (including the exercise price of an option) may be modified by the
exchange or clearing house to reflect changes in the underlying
interest.

       

      5. Suspension
or restriction of trading and pricing relationships

      Market
conditions (e.g. illiquidity) and/or the operation of the rules of certain
markets (e.g. the suspension of trading in any contract or contract month
because of price limits or "circuit breakers") may increase the risk of loss by
making it difficult or impossible to effect transactions or liquidate/offset
positions. If you have sold options, this may increase the risk of
loss.

       

      Further,
normal pricing relationships between the underlying interest and the future, and
the underlying interest and the option may not exist. This can occur when, for
example, the futures contract underlying the option is subject to price limits
while the option is not. The absence of an underlying reference price may make
it difficult to judge "fair" value.

       

      6. Deposited
cash and property

      You
should familiarize yourself with the protections accorded money or other
property you deposit for domestic and foreign transactions, particularly in the
event of a firm insolvency or bankruptcy. The extent to which you may recover
your money or property may be governed by specific legislation or local rules.
In some jurisdictions, property which had been specifically identifiable as your
own will be pro-rated in the same manner as cash for purposes of distribution in
the event of a shortfall.

       

      7. Commission
and other charges

      Before
you begin to trade, you should obtain a clear explanation of all commission,
fees and other charges for which you will be liable. These charges will affect
your net profit (if any) or increase your loss.

       

      8. Transactions
in other jurisdictions

      Transactions
on markets in other jurisdictions, including markets formally linked to a
domestic market, may expose you to additional risk. Such markets may be subject
to regulation which may offer different or diminished investor protection.
Before you trade you should inquire about any rules relevant to your particular
transactions. Your local regulatory authority will be unable to compel the
enforcement of the rules of regulatory authorities or markets in other
jurisdictions where your transactions have been effected. You should ask the
firm with which you deal for details about the types of redress available in
both your home jurisdiction and other relevant jurisdictions before you start to
trade.

       

      9. Currency
risks

      The
profit or loss in transactions in foreign currency denominated contracts
(whether they are traded in your own or another jurisdiction) will be affected
by fluctuations in currency rates where there is a need to convert from the
currency denomination of the contract to another currency.

       

      10. Trading
facilities

      Most
open-outcry and electronic trading facilities are supported by computer-based
component systems for the order routing, execution, matching, registration or
clearing of trades. As with all facilities and systems, they are vulnerable to
temporary disruption or failure. Your ability to recover certain losses may be
subject to limits on liability imposed by the system provider, the market, the
clearinghouse and/or member firms. Such limits may vary: you should ask the firm
with which you deal for details in this respect.

       

      11. Electronic
trading

      Trading
on an electronic trading system may differ not only from trading in an open-
outcry market but also from trading on other electronic trading systems. If you
undertake transactions on an electronic trading system, you will be exposed to
risks associated with the system including the failure of hardware and software.
The result of any system failure may be that your order is either not executed
according to your instructions or is not executed at all.

       

      12. Off-exchange
transactions

      In some
jurisdictions, and only then in restricted circumstances, firms are permitted to
effect off-exchange transactions. The firm with which you deal may be acting as
your counterparty to the transaction. It may be difficult or impossible to
liquidate an existing position, to assess the value, to determine a firm price
or to assess the exposure to risk, For these reasons, these transactions may
involve increased risks. Off-exchange transactions may be less regulated or
subject to a separate regulatory regime. Before you undertake such transactions,
you should familiarize yourself with applicable rules and attendant
risks.

       

      I hereby acknowledge that I have
received and understood this risk disclosure statement. 

      NOTE TWO (2) AUTHORIZED
SIGNATURES ARE REQUIRED ON BEHALF OF ACCOUNT OWNER

       

      

       

       

      
        
          
          

        

        
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    Futures
Account Application

    Corporate
/ Limited Liability Company 

    Partnership
/ Trust

     

    
      This Account Application and Agreement, together with all of the
agreements, acknowledgments, representations, warranties, notices, disclaimers
and assumptions of risk which it contains or incorporates by reference to other
documents that are part of this application package, as any of the foregoing may
from time to time be modified or amended by TradeStation Securities, Inc. by
posting any such modifications or amendments on the www.tradestation.com Web site (the "Web Site"), or by e-mail,
postcard, regular mail or by any other reasonable method of notice to you
(collectively, the 'Agreement"), sets forth your agreement with TradeStation
Securities, Inc. ("TradeStation Securities") and its affiliates, including, but
not limited to, TradeStation Technologies, Inc., and its clearing firm(s),
including, but not necessary limited to, R.J. O'Brien and Associates, Inc.
("RJO"). Your access to and use of your account, and the services provided by
TradeStation Securities, and all services provided by its affiliates and its
clearing firm(s), are subject to this Agreement (or the applicable portion
thereof). PLEASE READ ALL DOCUMENTS CAREFULLY. The Agreement, including each
document that is a part thereof, constitutes a legally binding commitment made
by you in favor of TradeStation Securities, its affiliates and its clearing
firm(s).

      

       

       

      
        
          
          

        

        
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    Futures
Account Application

    Corporate
/ Limited Liability Company 

    Partnership
/ Trust

    

    TradeStation
Platform

     

     

    þBase Platform
Fee...............................$299.95 per month

     

    The Base Platform Fee is for the access
you will be given to the TradeStation
electronic trading
platform, and will be charged as soon as you are offered access, which typically occurs at or shortly
after funding of your brokerage account. In addition to the trading software,
you will receive access to the TradeStation Network's centralized historical database,
delayed data for all major Equities exchanges and U.S. Futures Exchanges, and
streaming news. Equities accounts trading 250,000 or more shares in the previous
calendar month, Options accounts executing 2,500 or more contracts in the
previous calendar month, Futures accounts trading 500 or more round-turn contracts or 1,000
or more round-turn Security Futures contracts in the previous calendar month,
Forex accounts executing 10 or more round- turn lots or 100 or more round-turn
mini lots in the previous calendar month, and Securities, Options, Forex or
Futures accounts with a balance of $1 million or more on the last day of the
previous calendar month, shall not be charged the Base Platform Fee, or
RadarScreen' or OptionStation' monthly fees (if applicable), in the following month. If you
already have a TradeStation Securities brokerage account and are receiving data
services through the TradeStation
platform, you will not be charged an additional Base Platform Fee or data fees
for any new accounts you open that are linked to the TradeStation platform or
those data services. If you do not have a TradeStation Securities brokerage
account, you
will be asked to choose the optional real-time exchange data you would like to
receive when you log on for the first time.

     

    Includes
OptionStation'' and RadarScreere — a $120 per month value.

     

    The Account Owner hereby requests,
and acknowledges and agrees, that this account be established as a margin
account, whether or not
margin is used, unless otherwise prohibited or unless either TradeStation
Securities or its clearing firm, solely in its discretion, otherwise decides.
The
Account Owner represents and agrees that, unless the Account Owner has executed
and delivered to you the Hedge
Agreement included in this Application Booklet, the activity in this account
shall be speculative and
high-risk in nature with the objective of
short-term trading
profits. The
Account Owner represents that it has the financial ability to withstand a total
loss of all the capital placed in this account. The Account
Owner is familiar with direct-access trading and market depth display systems
and has experience with intra-day trading. The Account Owner hereby authorizes
TradeStation Securities to charge this account for the monthly Base Platform Fee
and all additional services checked above. The Account Owner understands that prices, costs, terms
and conditions are subject to change at any time and from time to time, and that
any offer, statement or
other communication the Account Owner receives from you about any product or
service should be read and understood with that in
mind.

     

    The
Account Owner understands and agrees that this Agreement includes, in addition
to all of the terms, conditions and selections set forth above, the following
three agreements. By signing below, the Account Owner understands, acknowledges
and agrees that the Account Owner is executing and delivering each of those
agreements to TradeStation Securities and to any other party to any of such
agreement, and that the Account Owner is legally bound to each such agreement,
and all of the terms and conditions above, to the same extent the Account Owner
would be if each such agreement, term and condition was individually signed by
the Account Owner and delivered to TradeStation Securities (or its affiliate or
its clearing firm) in person. Those three agreements are:

     

    
      	
            	
              ·

            	
                  Account
      Agreement with TradeStation
Securities

            

    

     

    
      
        	
              	
                ·

              	
                Subscription
      Agreement with TradeStation Technologies, Inc., an affiliate of
      TradeStation Securities. (Account Owner understands that this Subscription
      Agreement is between Account Owner and TradeStation
      Technologies.)

              

      

    

     

    
      
        	
              	
                ·

              	
                Account
      Agreement with R.J. O'Brien and Associates, Inc. (Account Owner
      understands that this Account Agreement is between Account Owner and
      RJO.)

              

      

    

     

    The Account Owner
represents to TradeStation Securities (and its affiliates and clearing firms)
that the Account Owner has read and understood each
and every provision of each and every document that is part of the Agreement,
including, but not limited to, the three agreements
listed above, including the Account Owner's acceptance of electronic trade
confirmations, account statements, tax
documents and related notices as set forth in Section 40 of the TradeStation
Securities Account Agreement. The Account Owner further
represents to TradeStation Securities (and its affiliates) that the Account
Owner has visited the Web Site and has fully read and understood each of the following
documents ("Documents"), all of which, together with the TradeStation Securities
Account Agreement and TradeStation Technologies Subscription Agreement, are
accessible at the bottom of the home page of the Web Site and at the bottom of
nearly every other page of the Web Site:

     

    
      	
              ·  Important
      Information

            	
              ·  Risk
      Disclosure Statement For Futures and Futures Options

            
	
              ·  Notice
      to Online Traders

            	
              ·  Exercise
      and Assignment Policy for Futures Options

            
	
              ·  Risks
      of Active Trading

            	
              ·  Risk
      Disclosure Statement For Security Futures Contracts

            
	
              ·  Margin
      Disclosure Statement

            	
              ·  Trading
      and Order Routing Disclosure Statement for Futures
  Trades

            
	
              ·  Anti-Money
      Laundering Requirements

            	
              ·  New
      York Board of Trade Electronic Order Routing Systems Disclosure
      Statement

            
	
              ·  Privacy
      Policy

            	
              ·  Business
      Continuity Plan Disclosure

            
	 
      	
              ·  Web
      Site User Agreement, Disclaimer and Certain Legal
  Notices

            

    

     

    The
Account Owner understands, acknowledges and agrees that each disclaimer of
liability by TradeStation Securities (on its own behalf and on behalf of its
affiliates, clearing firms, vendors, suppliers, agents and other service
providers), each assumption of risk by the Account Owner as client, customer or
user, and each representation, warranty, covenant, obligation and agreement made
or undertaken by the Account Owner as client, customer or user which is
contained in any of the Documents, is part of this Agreement, and is as binding
on the Account Owner, and creates estoppel and affirmative defenses against the
Account Owner, to the same extent as would be the case if each of such Documents
was individually signed by the Account Owner and delivered to TradeStation
Securities in person. The Account Owner also understands, acknowledges and
agrees that TradeStation Securities is an express third-party beneficiary of the
TradeStation Technologies Subscription Agreement and the RJO Account Agreement
and may exercise all rights, remedies, benefits and privileges conferred upon or
available to those parties under those agreements in the name and on behalf of
TradeStation Securities.

     

    
      
        
        

      

      
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    Futures
Account Application

    Corporate
/ Limited Liability Company 

    Partnership
/ Trust

     

    The
Account Owner understands and agrees that one or more of the Documents, or one
or more of the other agreements that are part of this Agreement (including the
TradeStation Securities Account Agreement, the TradeStation Technologies
Subscription Agreement and the RJO Account Agreement), may be modified or
amended and restated, or a new Document or agreement may be added (as the case
may be, a "Change"), at any time, and from time to time, as a result of changes
in legal or regulatory requirements or in TradeStation's or its affiliate's (as
applicable) sole and absolute discretion (to the extent permissible under
applicable laws, rules and regulations), and the Account Owner agrees that those
Changes shall be deemed effective with respect to the Account Owner on the
earlier of the date they are made on the Web Site and the date (if any) the
Account Owner is notified of the Changes by e-mail, postcard, regular mail or
any other reasonable method of notice. Accordingly, the Account Owner therefore
assumes the responsibility of reviewing the Documents and agreements, and this
section of the Web Site generally, on a periodic basis.

     

    The
Account Owner represents, warrants and covenants to TradeStation and its
affiliates and to RJO that any and all funds deposited, or that will be
deposited, in this account are and will be the property solely of Account Owner,
have not been and will not be solicited from any third party, and no third party
(other than the record and beneficial owners of Account Owner) have any direct
or indirect ownership or other financial or beneficial interest in those funds
or in any securities, contracts, currencies, financial instruments or other
property purchased with or through the use of such funds.

     

    Tax
Withholding Certification. Under penalty of perjury, the Account
Owner certifies that: (1) the number shown on this form is its correct taxpayer
identification number, and (2) Account Owner is not subject to backup
withholding because (a) Account Owner is exempt from backup withholding, or (b)
Account Owner has not been
notified by the Internal Revenue Service (IRS) that it is subject to backup
withholding as a result of a failure to report all interest or dividends, or (c) the IRS has
notified Account Owner that it is no longer subject to backup withholding; and
(3) Account Owner is a U.S. entity. Account Owner understands that it must cross
out item 2 above if it has been notified by the IRS that it is currently subject
to backup withholding because it has failed to report all interest and dividends on
its tax return. Note:
The IRS does not require consent to any provision of this paragraph other
than
the certification required to avoid back-up withholding.

     

    IN
WITNESS WHEREOF, the undersigned, on behalf of Account Owner, with full power
and authority to bind Account Owner and intending that Account Owner be legally
bound, hereby executes and delivers this agreement, as of the date set forth
below.

     

    NOTE:
TWO (2) AUTHORIZED SIGNATURES ARE REQUIRED ON BEHALF OF ACCOUNT
OWNER

    

     

    
      
        
        

      

      
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    TradeStation
Securities

    Account
Agreement

     

    THIS
DOCUMENT IS PART OF A LEGALLY BINDING CONTRACT THAT CONTAINS REPRESENTATIONS,
OBLIGATIONS AND OTHER AGREEMENTS THAT CAN BE ENFORCED AGAINST YOU. PLEASE READ
THIS DOCUMENT VERY CAREFULLY BEFORE SIGNING THE ACCOUNT APPLICATION AND
AGREEMENT (WHICH INCORPORATES THIS ACCOUNT AGREEMENT AS A PART THEREOF). PLEASE
BE AWARE THAT EVEN THOUGH YOUR ACCOUNT IS WITH TRADESTATION SECURITIES, A
REGISTERED FUTURES COMMISSION MERCHANT, ALL CLEARING OF YOUR TRADES, CARRYING
AND CUSTODIANSHIP OF YOUR ACCOUNT ASSETS AND MARGIN LENDING IN YOUR ACCOUNT IS
PERFORMED AND PROVIDED BY R.J. O'BRIEN AND ASSOCIATES, INC.

     

    1.Parties.
The parties to this agreement are you and TradeStation Securities, Inc.
and all present or future subsidiaries or affiliates of TradeStation Securities,
Inc. that provide any trade execution, clearing, settlement or reporting or
other futures or securities brokerage services to you (each such entity is
referred to individually and collectively, as the context requires, as
"TradeStation Securities"). You agree that each entity, other than TradeStation
Securities, Inc. (who is a direct party to this agreement), which is part of
TradeStation Securities, as well as any affiliate of TradeStation Securities,
and each independent or unaffiliated clearing agent, custodian or other service
provider that TradeStation Securities may use for, or in connection with. the
execution. processing, clearing, settlement or reporting of your trades or other
brokerage services, is an express third-party beneficiary of this agreement.
However, you understand that no entity other than TradeStation Securities, Inc.,
or one that has individually entered into a contract with you (such as the
Subscription Agreement between you and our TradeStation Technologies affiliate),
is making any representation, obligation or covenant in your favor, or may in
any manner modify or amend this agreement or waive or excuse any of your
obligations. No third-party beneficiary of this agreement may directly enforce
any of its rights against you unless TradeStation Securities, Inc. expressly
consents in writing to such right of enforcement by such third-party
beneficiary, which TradeStation Securities, Inc. may do or not do in its sole
and absolute discretion.

    2.Laws,
Rules, Regulations and Indemnification. All of your transactions shall be
subject to all applicable laws, rules and regulations (collectively, "Applicable
Laws") of any state, federal, regulatory or self-regulatory statutory authority,
agency, association, commission or other body, including, without limitation,
the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as
amended. the rules and regulations of the Securities and Exchange Commission,
the Commodity Futures Trading Commission ("CFTC"), the National Futures
Association ("NFA"), the National Association of Securities Dealers ("NASD"),
the Board of Governors of the Federal Reserve System, and any exchanges,
markets. associations, or clearing houses or agencies where any transaction is
executed, or which have jurisdiction over the transaction or any of the parties
involved in the transaction. You agree to indemnify TradeStation Securities and
its employees, agents and affiliates from and against all claims (including
claims brought by you or on your behalf), including reasonable attorneys' fees
and costs, arising out of your use of any products or services provided by
TradeStation Securities or its affiliates or other acts or omissions by you or
on your behalf which violate, or conflict with, any of such applicable
laws.

    3.Services
and Fees. TradeStation Securities agrees to provide you with futures
brokerage services which generally include providing you with one or more
automated or electronic execution systems (an ''EES") and other services
(collectively, the "Services") pursuant to the terms and conditions of this
agreement, your agreement with our affiliate that provides TradeStation® trading
software technology and Internet-based market data services, and any other term
and condition that is incorporated in the Account Application and Agreement of
which this agreement is a part. Your account(s) will be charged brokerage
commissions and other tees in connection with the execution of transactions
("Execution Fees") and will or may be charged certain other fees for all other
products and services furnished to you ("Service Fees"). Execution Fees may be
changed from time to time without prior notice to you and Service Fees may be
changed from time to time upon thirty (30) days' prior written notice to you
and, in each case, you agree to be bound thereby. You understand and agree that
notice may be given by modifying the fees and rates published on the
TradeStation Securities Web site and that such modification shall constitute
written notice to you on the date such modifications first appear on the Web
site. You also agree that e-mails to you constitute written notice to you on the
date sent as long as the e-mails are sent to an e-mail address provided by you.
There are also other ways we may modify this agreement and our business
relationship, as well as other ways we may notify you, which are discussed later
in this agreement under the heading "Amendment by TradeStation; Presumptive
Receipt of Communications."

    4.Assumption
of Risk/Your Discretion. TradeStation Securities is not a full-service
brokerage. We do not engage in discretionary trading, render investment or
trading advice, financial planning services, perform or share investment
research or analysis, participate in public offerings or private placements or
make markets or deal in individual securities, commodities, futures contracts,
options or other derivative products. TradeStation Securities is an agency-only
brokerage firm the services of which consist mainly of the provision to you of a
sophisticated EES which you, as a self-directed or professional trader, may use
to make and execute your own trading decisions. Accordingly, TradeStation
Securities will not provide you with any legal, tax, accounting, investment,
trading, planning or other advice of any kind. TradeStation Securities'
employees and agents are not authorized to give you any such advice, and you
agree that you will not solicit or rely upon any such advice or purported advice
from any such employee or agent of TradeStation Securities, whether in
connection with transactions in or for any of your accounts, or otherwise. You
acknowledge and agree that if you receive any such advice or purported advice
from any employee or agent of TradeStation Securities or any of its affiliates,
it was improperly given to you, should not be relied upon, you will totally
disregard it, and, if you do not, you fully assume the risk of following or
relying upon any such advice or purported advice.

    You
further acknowledge and agree that you have independently evaluated any EES or
other Services you intend to use. You agree and acknowledge that any trading or
execution strategies or transactions designed, programmed or implemented through
any EES or any other Services provided by TradeStation Securities or its
affiliate shall be at your sole discretion and risk, regardless of any
information, examples, tutorials, user education documentation, training,
consulting services, comments, guidance, charts. indicators, graphs, simulated
performance reports, strategy techniques, or other analyses obtained in any form
from TradeStation Securities or any of its officers, directors, employees or
agents, or from accessing or using any EES or Web site. You acknowledge and
agree that the sole purposes of any of the foregoing tools and services are to
help you learn how better to use TradeStation® trading software or to help you
correctly program, test and/or automate or otherwise implement your trading
strategies or ideas. You further acknowledge and agree that while you may be
able to access through an EES investment research reports, examples of
strategies, and market data services, the availability of such information does
not constitute a recommendation to buy or sell any particular security,
commodity, contract, option or other derivative or the likelihood of success of
using any trading strategy tools. Any investment or trading decisions you make
will be based solely on your own evaluation of your financial circumstances and
investment or trading objectives.

    5.Limitations
and Restrictions. You are authorized to use the EES and other Services
and materials provided by or through TradeStation Securities for your own needs
only, and you are not authorized to resell access to any such services or
materials or to make copies of any such materials for sale to, or use by,
others. You shall not delete any copyright or other intellectual property rights
notices from any such materials. Your right to use any EES or other Services
provided by TradeStation Securities is limited to executing your own proprietary
trades. You shall be the only authorized user of any Services provided by
TradeStation Securities. All orders executed through any EES or other Services
provided to you shall be deemed authorized by you and executed with the
understanding that an actual purchase or sale is intended and that you are
unconditionally and irrevocably accepting a valid and binding legal obligation.
You agree that all purchases and sales shall be for your account in accordance
with your oral, written or electronic orders or instructions; provided, however,
you acknowledge and understand that the only valid way to place an order using
the Services is to place it through your EES or to phone-in your order live to
TradeStation Securities' trade desk. You hereby waive any and all defenses that
any such order or instruction was not in writing as may be required by the
Statute of Frauds or any Applicable Laws.

    6.Disclaimer
of Warranties. You acknowledge and agree that neither TradeStation
Securities nor its employees or agents or affiliates make any warranties or
representations with respect to any EES or other Services provided by
TradeStation Securities or its affiliates, including any related hardware,
software. communication system or any charting, technical analysis or other
trading strategy tool products, services or platforms. TRADESTATION SECURITIES'
SERVICES AND ANY INFORMATION, DATA, CHARTING, TECHNICAL ANALYSIS OR OTHER
TRADING STRATEGY TOOL PRODUCTS, SERVICES OR PLATFORMS ARE PROVIDED ON AN AS-IS,
WHERE-IS, AS-AVAILABLE BASIS AND WITHOUT WARRANTIES OF ANY KIND, EXPRESS,
IMPLIED OR STATUTORY (INCLUDING, WITHOUT LIMITATION, TIMELINESS, TRUTHFULNESS,
SEQUENCE, COMPLETENESS, ACCURACY OR FREEDOM FROM ERROR OR INTERRUPTION), OR ANY
IMPLIED WARRANTIES ARISING FROM TRADE USAGE, COURSE OF DEALING, OR COURSE OF
PERFORMANCE, OR THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE OR USE. YOU AGREE THAT TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAWS, TRADESTATION SECURITIES SHALL NOT HAVE ANY LIABILITY TO YOU FOR
CONSEQUENTIAL, INCIDENTAL, PUNITIVE, SPECIAL OR INDIRECT DAMAGES OR LOSSES OF
ANY KIND, EVEN IF YOU HAVE INFORMED TRADESTATION SECURITIES OF THE POSSIBILITY
OR LIKELIHOOD OF SUCH DAMAGES OR LOSSES.

    7.
Assumption of Risk; Technical Issues or Extraordinary Events. You agree
that TradeStation Securities shall not be liable for, and you fully and
knowingly assume all risks of, and shall indemnify and hold TradeStation
Securities and its employees, officers, directors, shareholders, affiliated
companies and agents harmless from and against, any and all claims (including claims
by or through you)
or ioss(es) or other negative results, actual or perceived, caused directly or
indirectly by
any equipment or software failure, software design limitation
or flaw, software bug or virus, failure of any Internet service provider, operator error,
failure of any electronic or mechanical equipment, hardware,
communication system or other system, or any component thereof, telephone or other
interconnect problems, unauthorized access, theft, security breach, government
restriction, exchange or market regulation, suspension of trading, war,
terrorism, cyberterrorism, strike or other labor dispute. Without limitation of
the foregoing, this includes any of the foregoing conditions, items, events or
occurrences that might prevent you from utilizing, or that may limit or corrupt
the use of, any EES or other Services provided by TradeStation Securities,
including, without limitation, conditions, items, events or occurrences that
cause or result in an inability or failure to initiate, execute, cancel or
modify an order or transaction or that cause other unintended results. You
further acknowledge and agree that, except as expressly set forth in this
agreement, you will not be compensated by TradeStation Securities for any "lost
opportunity" an increase in the value of a futures contract you wished to
purchase, or a decrease in value of a futures contract you wished to sell, or
transactions you may make based on information shown or not shown to you by your
computer which was incorrect or omitted or otherwise inaccurate or delayed in
its delivery to you), even if such difficulty could have been prevented by
TradeStation Securities. To the fullest extent permitted by Applicable Laws, you
fully assume all risks related to each and every one of the foregoing items.
conditions, events and occurrences.

     

    
      
        
        

      

      
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    TradeStation
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    8.Termination,
Trading Restrictions, Liquidation. You acknowledge and agree that
TradeStation Securities may, at any time, in its sole discretion and without
prior notice, terminate your account or restrict or prohibit trading of
securities, commodities, futures contracts, options and/or other derivatives or
other property in your account for any reason. Without limitation of the breadth
of the foregoing rights, TradeStation Securities may in its sole discretion
restrict trading in your account to closing transactions only You shall, in all
such events, nevertheless remain responsible and liable for all of your
obligations and liabilities to TradeStation Securities and its affiliates under
this agreement and all other agreements, terms and conditions that are part of
the Account Application and Agreement.

    9.Automated
Trading. Automated trading functionality is designed to help you follow
or track more securities simultaneously and to assist in removing emotions from,
and to increase efficiencies In, your trading. Automated trading functionality
is not designed to allow you to leave your computer unattended. If you. or any
person you have authorized to trade your account, uses any automated trading
functionality, you hereby acknowledge and agree that there are numerous factors
that may cause the automated trading functionality to send orders that you do
not want, and/or fail to send orders that you do want (including, without
limitation, ISP failure, power failures or surges, erroneous, delayed or
out-of­sequence data, improperly designed strategies, and software or
system design limitations, flaws or errors). You hereby acknowledge and assume
all risks, both known and unknown, associated with using any automated trading
functionality and agree that it is your responsibility to understand precisely
how it works before using it, to monitor the trading activity in your account at
all times. and to immediately take corrective action when
necessary.

    10.Monitoring
and Review. It shall be your responsibility to monitor your orders and
transactions and review all confirmations, statements, notices, reports or other
communications related to any transaction ordered or executed through any EES or
other Services provided by TradeStation Securities. It shall be your obligation
to make prompt written demand to TradeStation Securities for any such item not
received.

    11.Market
or Other Data. You acknowledge and agree that each national or regional
securities and futures exchange or association asserts a proprietary interest in
all of the market or other data it furnishes to parties that disseminate its
data. YOU ACKNOWLEDGE AND AGREE THAT NEITHER TRADESTATION SECURITIES, NOR ANY
SECURITIES EXCHANGE OR ASSOCIATION OR ANY SUPPLIER OF MARKET OR OTHER DATA,
GUARANTEES THE TIMELINESS, SEQUENCE, ACCURACY COMPLETENESS, RELIABILITY OR
CONTENT OF MARKET OR OTHER INFORMATION OR MESSAGES DISSEMINATED TO BY OR THROUGH
ANY PARTY INCLUDING ANY INTERNET SERVICE PROVIDER. YOU ACKNOWLEDGE AND AGREE
THAT NEITHER TRADESTATION SECURITIES NOR ANY SECURITIES EXCHANGE OR ASSOCIATION
OR ANY OTHER SUPPLIER OF MARKET OR OTHER DATA REPRESENTS OR WARRANTS THAT THE
SERVICE WILL BE UNINTERRUPTED OR ERROR FREE. YOU AGREE THAT YOUR USE OF ANY
MARKET OR OTHER DATA IS SOLELY AT YOUR RISK.

    NEITHER
TRADESTATION SECURITIES NOR ANY EXCHANGE OR DATA PROVIDER SHALL BE LIABLE FOR
ANY INACCURACY ERROR OR DELAY IN, OR OMISSION OF, ANY SUCH DATA, INFORMATION OR
MESSAGE, OR THE TRANSMISSION OR DELIVERY OF ANY SUCH DATA, INFORMATION OR
MESSAGE, OR ANY LOSS OR DAMAGE ARISING OR OCCASIONED THEREFROM, REGARDLESS OF
THE SOURCE, CAUSE OR REASON THEREFOR.

    You
understand that these terms of this agreement may be enforced directly against
you by the securities and futures exchanges and associations or other parties
providing market or other data. You shall use any such data or information
(including quotes) only for your individual use and shall not furnish such data
to any other person or entity.

    12.Stop
Orders. Placing stop orders using the EES has risks that regular market
and limit orders do not. A stop order is held by the EES's stop order server and
then automatically released to the appropriate avenue of execution when the EES
recognizes information which indicates that the stop order price condition has
been met. The price information comes from the exchanges and/or data providers
and there are often 'bad ticks' (inaccurate, out-of-sequence, etc.) or ticks
that appear to be bad but are not (they may simply look irregular, unusual or
problematic). The EES is designed to filter as many "bad ticks' as reasonably
possible. However, there are times that bad ticks will not be filtered, and
other times when the stop order server will mistakenly filter good ticks that
looked unusual at the time. This may result in your stop order being executed at
a price different than the one you specified, or not being released for
execution when your price condition has been met. IF YOU USE THE EES's STOP
ORDER FUNCTIONALITY, YOU FULLY ASSUME THESE RISKS AND ALL OTHER RISKS THAT EES
DESIGN LIMITATIONS OR EXCHANGE OR VENDOR DATA SERVICE INACCURACIES OR FLAWS MAY
PRESENT

    13.          Program
Trading. You understand and acknowledge that TradeStation Securities
offers neither arbitrage accounts nor proprietary systems for Program Trading
(or any other purpose).

    14.          Use of
Investment Advisors. If you have an agreement with an investment or
trading advisor or manager or a CTA or CPO of any kind (as the case may be, an
"investment advisor") whom you have engaged to invest and trade your funds and
assets on your behalf, and whom you have authorized to trade your account with
TradeStation Securities, you represent, warrant. acknowledge and agree that: (a)
as between you and TradeStation Securities, solely you are fully responsible for
all acts, omissions and decisions made by your investment advisor with respect
to your account, and you shall fully indemnify and hold harmless TradeStation
Securities, and its affiliates, employees and agents, from and against any and
all claims, damages, liabilities, losses, costs and expenses (including
reasonable attorneys' fees and costs) that arise from, or relate to, any of such
acts, omissions or decisions, including, but not limited to, claims, damages,
liabilities, losses, costs or expenses assertible or suffered by you or your
trading account, and claims which others may assert by or through you or on your
behalf. or on their own behalves; and (b) your investment advisor has given us
instructions, which may be changed by your investment advisor from time to time,
concerning amounts that are to be withdrawn from your account(s) and paid to
your investment advisor (or your investment advisors account with us) as and for
your investment advisor's fees, charges or costs payable by you pursuant to your
agreement with your investment advisor, and TradeStation Securities is
authorized by you to rely fully and completely upon your investment advisors
instructions with no obligation or responsibility to verify the authenticity,
validity or accuracy of such instructions either with you or any other person or
entity, or any document or other material or potential source of such
information.

    15.Confirmation
Reports and Account Statements. Confirmation reports of the execution of
orders shall be conclusive if not objected to in writing by you within the
shorter of (a) the applicable settlement cycle of the subject transactions or
(b) three (3) business days after such documents have been transmitted to you.
Statements of account(s) shall be conclusive if not objected to in writing by
you within ten (10) days after transmission. In all cases, TradeStation
Securities reserves the right to challenge your objections.

    16.
Margin and Other Collateral Requirements.

    (a) You
hereby agree to deposit and maintain such margin in your margin account(s), if
any, as TradeStation Securities may in its sole discretion require, and you
agree to pay on demand any debit balance owing with respect to any of your
margin accounts. Margin calls may be communicated orally, without subsequent
written confirmation.

    (b) You
further agree to deposit promptly and maintain such other collateral with
TradeStation Securities as is required by Applicable Laws or any other agreement
or open transaction you may have with TradeStation Securities, or as required by
TradeStation Securities at any time or from time to time in its
discretion.

    (c)
No demands, calls, tenders or notices that TradeStation Securities may
have made or given in the past shall obligate TradeStation Securities to make or
give the same in the future, and no failure to make or give any such demand,
call, tender or notice shall constitute a waiver or limitation of any kind of
any of TradeStation Securities' rights or remedies under this agreement or
otherwise.

    17.
Satisfaction of Your Liabilities; Security Interest and Lien.

    (a) You
agree to satisfy, upon demand, any and all indebtedness to TradeStation
Securities, and to pay any debit balance in any of your accounts, no later than
the deadline set by TradeStation Securities; such deadline may and shall be
determined or modified by TradeStation Securities, subject only to limitations
imposed by Applicable Laws, in TradeStation Securities' sole and absolute
discretion.

    (b) All
of your property held by or under the control of TradeStation Securities is
subject to a lien to secure the payment and performance of your indebtedness,
liabilities and obligations to TradeStation Securities, and you hereby grant to
TradeStation Securities a lien on, and a valid and first priority, perfected,
continuing security interest in, the following: (i) all property, including all
investment property, held, carried or controlled by or through, or on our behalf
by, TradeStation Securities in which you presently have or in which you acquire
an interest in the future, including all property in each account in your name.
and (ii) any and all rights, claims or causes of action you may now or hereafter
have against TradeStation Securities or its affiliates, employees or agents, and
(iii) all other assets and property, tangible or intangible, fixed, contingent
or mixed, of any kind or nature owned by you that are held, carried or
controlled by or through, or on our behalf by, TradeStation Securities or any of
its affiliates, or which TradeStation Securities or any of its affiliates has
the power to access, possess or control, and (iv) all proceeds of. or
distributions on, any of the foregoing (collectively, (i) through (iv) are
referred to in this agreement as 'Collateral").

    (c) Any
and all Collateral is held by TradeStation Securities as secured party, and as
agent and bailee for TradeStation Securities, Inc. and any other entity that is
part of TradeStation Securities. TradeStation Securities, holding Collateral,
may, without your further consent, give, comply with and implement (i)
entitlement orders or instructions with respect to the Collateral and (ii) if
the TradeStation Securities entity holding Collateral is a commodity broker, any
instructions to apply any value distributed on account of a commodity contract.
Additionally, TradeStation Securities, holding Collateral, has the right not to
comply with (x) any entitlement order or instruction from you or a third party
with respect to the Collateral and (y) any instruction from you to apply any
value on account of any commodity contract, if TradeStation Securities decides
or instructs that such order or instruction not be complied with in order to
maintain security for the payment and performance of your obligations and
liabilities to it. You agree that the actions of TradeStation Securities in not
complying with orders or instructions as allowed in the preceding sentence
satisfy any duties it may have under the Uniform Commercial Code of any state or
jurisdiction ("UCC"), and you further agree that TradeStation Securities' rights
and remedies against you as debtor and in its favor as secured party are, and
shall be, the broadest possible rights under the applicable UCC, and all notices
and elections necessary to have those broadest possible rights are hereby deemed
specifically given.

    (d) You
agree that this agreement, and your execution of this agreement by
signing the Account Application and Agreement of which this is a part,
shall constitute notice of the security interest granted to TradeStation
Securities to any and all entities to whom giving notice is appropriate or
required.

    (e) The
reasonable costs and expenses of collection of any of your indebtedness,
obligations, liabilities or debit balances, including but not limited to
attorneys' fees and expenses, shall be payable by you to TradeStation
Securities.

    (f) In
order more fully to secure the payment and performance of any of your
outstanding liabilities and obligations to TradeStation Securities it may, to
the fullest extent permitted by law, without prior notice to you, use apply or
transfer Collateral as it determines. Unless otherwise agreed in writing,
TradeStation Securities may register and hold Collateral in its name or the name
of one or more designees.

    (g) You appoint TradeStation
Securities with full power as your true and lawful attorney-in-fact, to the
fullest extent permitted by law. for the purpose of perfecting the security
interest granted in this agreement and taking any action and executing any
instrument that TradeStation Securities deems necessary or advisable to
accomplish the purposes of this agreement, including, but not limited to, the
full exercise and enforcement by it of its rights as secured party
hereunder.

     

    
      
        
        

      

      
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    TradeStation
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    18.Free
Credit Balances. You hereby authorize TradeStation Securities to use any
free credit balance in any of your accounts in accordance with all Applicable
Laws and to pay interest thereon at such rate or rates and under such conditions
as are established from time to time by TradeStation Securities for such
account(s) and for the amounts of cash so used. Free credit balances are carried
in customers' accounts pending, and with a view towards, reinvestment.
TradeStation Securities may determine not to pay, and currently does not pay,
interest on free credit balances.

    19.Authority
to Pledge Collateral. You represent, warrant and covenant that (a) you
have the right to pledge and assign the Collateral to TradeStation Securities
and (b) all Collateral is and shall at all times be free and clear of any liens,
claims or encumbrances, except in favor of TradeStation Securities or its
clearing firm.

    20.Deposits
on Transactions. TradeStation Securities may require you to deposit cash
or other property acceptable to TradeStation Securities as Collateral in your
account(s) in such amounts as TradeStation Securities determines in its sole
discretion, and you agree to comply with any such request by no later than the
deadline set by TradeStation Securities.

    21.Consent
to Loan, Pledge or Use of Securities in Margin Accounts. To
the greatest extent permitted under Applicable Laws, you hereby authorize
TradeStation Securities to lend either to itself or to others and to otherwise
use, sell or pledge any securities, commodities, futures contracts, options, or
other derivatives held by TradeStation Securities in your margin account(s), to
convey therewith all attendant rights of ownership and to use all such property
as collateral for loans and other obligations made to TradeStation Securities.
Any such property, together with all attendant rights of ownership, may be
pledged. repledged, hypothecated, rehypothecated, sold or otherwise used either
separately or in common with other property for any amounts due to TradeStation
Securities thereon or for a greater sum. You hereby acknowledge that, as a
result of such activities,

    (a)
TradeStation Securities may receive and retain certain benefits to which you
will not be entitled and will not share, and (b) the securities, futures
contracts or other derivatives in your margin account(s) may be used as
collateral by TradeStation Securities for loans made to it in excess of your
indebtedness to TradeStation Securities.

    22.
Breach, Bankruptcy or Default.

    (a)  TradeStation
Securities may, in its sole and absolute discretion, elect
to consider you in default of any or all agreements you may then have
with it if (i) you do not pay any liability or indebtedness or perform any
obligation to TradeStation Securities by the time you are obligated to do so;
(ii)
you otherwise breach, repudiate or default under this agreement or any
other agreement you may have with TradeStation Securities or any of its
affiliates or service providers; (iii) you commence a proceeding in bankruptcy
or insolvency or one is commenced against you; (iv)
any guarantor, co-signer or other party (a "Responsible Party') liable,
or providing security for, any of your indebtedness, liabilities or obligations
to TradeStation Securities or any of its affiliates or service providers
defaults in an obligation or commences a proceeding in bankruptcy or insolvency
or one is commenced against it; (v) an attachment is made against your or a
Responsible Party's account(s) with TradeStation Securities; (vi) a receiver is
appointed with respect to you. any of your assets or the assets of a Responsible
Party; (vii) if you are a natural person, you die or become incompetent, or, if
you are an entity, you merge, liquidate, sell a material portion of your assets
(directly or indirectly) or dissolve; or (viii) an event, circumstance or
condition occurs that, in TradeStation Securities' judgment (which shall be
conclusive unless it is exercised totally arbitrarily or capriciously),
materially impairs your creditworthiness, your ability to timely perform any of
your obligations or otherwise causes TradeStation Securities to view itself (or
any entity that is a part thereof) as insecure. The occurrence of any of the
foregoing is referred to as an "Event of Default."

    (b) Upon
the election by TradeStation Securities to consider you in default, TradeStation
Securities shall have all of the rights and remedies of a secured party upon
default under the UCC and other Applicable Laws and may, without notice to you,
among other things, foreclose, collect, sell or otherwise liquidate any
Collateral TradeStation Securities selects in its sole discretion, in any order
and at any time, and apply, in a manner determined by TradeStation Securities,
in its sole discretion, the proceeds to satisfy any of your obligations or
liabilities to TradeStation Securities or any of its affiliates. At any sale of
Collateral or other sale or purchase permitted hereunder or otherwise,
TradeStation Securities may sell or purchase to or from itself or third parties,
and you hereby acknowledge and agree that futures contracts, options or
securities subject to such sale or purchase are instruments traded in a
recognized market. You will pay TradeStation Securities for any losses and costs
incurred by TradeStation Securities as a result of any default by you. You waive
marshalling of assets and any similar doctrine dealing with the application of
collateral.

    23.
Collection and Other Account•Related Costs. You hereby agree to pay on
demand, all reasonable costs, fees, expenses, liabilities and damages incurred
by TradeStation Securities, as the case may be ("Costs"), in connection with (a)
enforcing its rights hereunder, or (b)
any investigation, litigation or proceeding involving your account(s) or
any property therein, or (c) the use or access by you, or any other person
authorized to act on your behalf, of an EES or other Services, or (d) any breach
or failure by you to perform any term or provision of this agreement, any other
agreement between you and TradeStation Securities or its affiliates or any
agreement governing your use of or access to any EES, or (e) TradeStation
Securities acting in reliance upon your instructions or the instructions of any
person authorized to act on your behalf. In each case, and whether or not demand
has been made therefor, you hereby authorize TradeStation Securities to charge
your account(s) for any and all such Costs.

    24.Waiver;
Assignment. Neither TradeStation Securities' failure to insist at any
time upon strict compliance with the terms of this agreement, nor any continued
course of such conduct on its part, shall constitute or be considered a waiver
by TradeStation Securities of any of its rights or privileges hereunder. Except
as specifically permitted in this agreement or the Account Application or
Agreement of which it is part, no provision or condition of this agreement can
be, or should be deemed to be, waived, altered. modified or amended unless
specifically agreed to in writing by a duly authorized officer of TradeStation
Securities (President, Vice President of Finance, General Counsel, and Chief
Compliance Officer are the only officers duly authorized for this purpose).
TradeStation Securities' failure to enforce any provision or condition of this
agreement shall not be deemed a waiver of the requirements of said provision or
condition or any other provision or condition. Any assignment of your rights and
obligations hereunder or your interest in any property held by or through
TradeStation Securities without obtaining the prior written consent of an
authorized representative of TradeStation Securities shall be null and void.
TradeStation Securities reserves the right to assign any of its rights or
delegate any of its obligations hereunder ‘without prior notice to you, except
as otherwise required by Applicable Laws.

    25.Legally
Binding. You hereby agree that the terms of this agreement shall be
binding upon you and your estate, heirs, executors, administrators, personal
representatives, successors and assigns.

    26.
Disclosure of Status. You agree to promptly notify TradeStation
Securities in writing (if you have not done so in your Application and Agreement
of which this agreement is a part) if you are now or if you become: (a)
registered or qualified with the National Association of Securities
Dealers, Inc. or the Securities and Exchange Commission, the Commodity Futures
Trading Commission, any state securities agency, any securities exchange or
association, or any commodities or futures contract market or
association;

    (b)
engaged as an "investment advisor" as that term is defined in Section 201
of the Investment Advisors Act of 1940 (whether or not registered or qualified
under that act); or as a licensed CTA or CPO or (c)
employed by a bank or other organization exempt from registration under
federal and state securities laws to perform functions that would require you to
be so registered or qualified if you were to perform such functions for an
organization not so exempt. Except as otherwise specifically set forth in your
Account Application and Agreement, you represent and warrant that you are not
any of the foregoing.

    27.
Amendment By TradeStation; Presumptive Receipt of Communications.
Communications may be sent to you at your postal or electronic mail
address or at such other address as you may hereafter specify in writing in any
form. Modifications and amendments of or :o this agreement (including changes in
Execution Fees and Service Fees) may he posted on TradeStation Securities' Web
site and shall be effective as of the date posted. All communications so sent,
whether by posting, mail, e-mail, telegraph, messenger or otherwise, shall be
deemed received on the earliest date sent or published, whether or not actually
received or reviewed. You acknowledge and agree that TradeStation Securities
may, at any time, in its sole discretion, modify or amend the terms of this
agreement or your access to any EES or other Services provided by TradeStation
Securities. Your continuing to accept or use any EES or other Services after
said modification or amendment is published, posted or sent shall conclusively
be deemed your express acceptance of all said modifications or amendments in
exchange therefor. In addition to, and without in any way limiting the breadth
or scope of any of the
foregoing provisions, you acknowledge arid agree that notices and other
communications (including, without limitation, margin calls) delivered, faxed,
sent by express delivery service, e-mailed or mailed to the address (and/or
e-mail address) provided by you shall, until TradeStation Securities has
received notice in writing of a different address, be deemed to have been
personally delivered to you whether actually received or not. Notices and other
communications may also be provided to you verbally. Such notices and other
communications left for you on your answering machine, or otherwise, including,
but not limited to, margin calls and other demands of immediate payment of
indebtedness, debit balances, or other obligations, shall be deemed to have been
delivered to you. whether actually received or not. None of the foregoing
provisions is intended to suggest or imply that any notice is required to be
given you as a condition to TradeStation Securities exercising or enforcing any
of its rights or remedies under this
agreement, as a secured party or otherwise, and you understand and
acknowledge TradeStation Securities may act without or before providing you with
notice of any kind, in its sole and absolute discretion, to the fullest extent
permitted and authorized by this agreement. the applicable UCC and other
Applicable Laws. Notices and other communications from you to TradeStation
Securities shall be in writing. You hereby authorize TradeStation Securities to
accept facsimile copies of this or any other document or instruction as if it
were the original, delivered in person, and to accept facsimile signatures as if
they were originals delivered in person.

    28.Ownership
and Confidentiality. You
acknowledge and agree that nothing in this agreement or any other
agreement with TradeStation Securities or any of its affiliates shall constitute
the sale of any equipment, software, hardware, procedure or system utilized by
any EES or other Services provided by TradeStation Securities (collectively, the
"Technology"). You hereby agree to keep confidential and not disclose, copy,
transfer, reverse engineer, or modify
any Technology, whether or not said Technology is actually owned by
TradeStation Securities, its affiliate or a third party. You expressly agree
that, in connection with any dispute, the Technology and TradeStation
Securities' or its affiliates' other trade secrets or confidential information
shall be disclosed, if at all, only upon issuance of protective order(s)
effectively limiting disclosure to maintain confidentiality.

    29.Monitoring
and Recording Conversations. All communications between you and
TradeStation Securities by telephone, computer link, "live chat" or any other
satellite, cable or telecommunications device or method may or will be
monitored, recorded and archived by TradeStation Securities and may be used and
shall be admissible in connection with any investigation, inquiry or dispute
that may arise, or for any valid or legitimate business purpose that
is not violative of TradeStation Securities' privacy policy (which is
easily accessible from most pages of the TradeStation.com Web
site). You voluntarily and knowingly acknowledge and irrevocably consent to all
of such monitoring, recording and archiving of your communications with
TradeStation Securities, its affiliates, and their respective agents and
employees, and acknowledge and agree that no further notice or consent is
necessary.

    30.
Power of Attorney. You hereby irrevocably appoint TradeStation
Securities, with full power as your true and lawful attorney-in-fact, to the
fullest extent permitted by Applicable Laws, for the purpose of carrying out the
provisions of this agreement and taking any action and executing any instrument
that TradeStation Securities deems reasonably necessary or advisable to
accomplish the purposes of this agreement.

     

    
      
        
        

      

      
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    31.Independence.
Nothing in this agreement shall be construed as, or to create. a joint
venture, agency, partnership or other similar relationship between the
parties.

    32.Choice
of Law. You acknowledge and agree that this agreement and its enforcement
shall be governed by the laws of the State of Florida.

    33.Jurisdiction,
venue and waiver of jury trial. YOU AGREE THAT ANY CONTROVERSY BETWEEN YOU AND
TRADESTATION SECURITIES ARISING
OUT OF THIS AGREEMENT, REGARDLESS OF THE MANNER OF RESOLUTION, SHALL BE
ARBITRATED, LITIGATED (TRIED IN A COURT OF
LAW), OR OTHERWISE RESOLVED BY A TRIBUNAL LOCATED IN THE SOUTHERN DISTRICT OF
FLORIDA. IN ADDITION, YOU HEREBY WAIVE TRIAL
BY JURY IN ANY SUCH ACTION OR PROCEEDING. You agree to pay all expenses,
including attorney's fees, incurred by TradeStation Securities: (a) to defend
any unsuccessful claim you bring against TradeStation Securities, or any of its
affiliates, or (b) to collect any debit balances in your accounts(s). No legal
or administrative action arising out of this contract may be commenced by anyone
more than one (1) year after any claim arises. You hereby expressly acknowledge
that this Agreement is made in the State of Florida and, further, you hereby
submit and consent to jurisdiction of your person in the Courts of the State of
Florida (federal and state) and shall be amenable to service of summons and
other legal process of, and emanating from, the State of Florida. The validity,
construction and entorcement of this agreement shall be governed and construed
in accordance with the substantive laws of the State of Florida without
reference to the principles of conflicts of laws.

    34.Agreement
to Shorten Statutes of Limitations. You and TradeStation Securities agree
that no action in law, equity, arbitration or administrative proceeding arising
out of this agreement, any transactions effected pursuant to this agreement, or
the relationship between you and TradeStation Securities. may be commenced more
than one (1) year after the aggrieved party knew or should have known a cause of
action existed You acknowledge that you are expressly agreeing to waive the
two-year statute of limitations provided by the Commodity Exchange Act,
including the two-year time period for commencing a Commodity Futures Trading
Exchange reparation proceeding, and any and all other applicable statutes of
limitations exceeding one year. including but not limited to, any statutory or
common law state or federal statutes of limitation, the statute of limitation
provided by the National Futures Association for commencing an arbitration
action, and the statute of limitations for initiating arbitration actions before
contract markets. You understand that your agreement with this paragraph is not
necessary to open an account with TradeStation Securities.

    35.Severability.
If any term, provision or condition ("term') of this agreement shall be
held to be invalid or unenforceable by reason of any law, rule, administrative
order or decision by any court, or regulatory or self-regulatory agency or body,
or in arbitration, said term shall be deemed modified only to such extent as is
necessary to correct the invalidity or unenforceability and shall not affect the
validity and enforceability of this agreement or any other term of this
agreement, and the intent of this agreement and that term shall be honored to
the fullest possible extent in the circumstances.

    36.Headings.
The heading of each paragraph is for descriptive purposes only and shall
not be deemed to modify or qualify any of the rights or obligations set forth in
such provision.

    37.Trademarks.
TradeStation®, EasyLanguage®, RadarScreen®, OptionStation® and Test
Before You Trade® are registered trademarks of TradeStation Technologies, Inc.,
an affiliate of TradeStation Securities, and are used by TradeStation Securities
pursuant to a trademark license.

    38.Consent
to Identification Procedures, Credit Reports and Other Information. You
voluntarily and knowingly consent to the following: TradeStation Securities may
use your name, address, social security number, date of birth, home telephone
number and/or other biographical or personal information about you
(collectively, "Personal Information") to comply with applicable federal, state,
local, quasi-governmental, self-regulatory and other laws, rules, regulations,
recommendations, interpretations, authorizations, licenses and registrations,
and other Applicable Laws, or for any valid or legitimate business purpose. The
purposes for the use of Personal Information include, but are not necessarily
limited to verification of your identity and other factual information you
present to us, verification that you are not listed as a specially designated
national or blocked national by the Department of Treasury's Office of Foreign
Asset Control (OFAC), and to investigate or verify your creditworthiness,
business history and your history with legal and administrative authorities.
Whatever procedures are used by TradeStation Securities shall not be violative
of the terms of its privacy policy (which is easily accessible from most pages
of the TradeStation.com Web
site). You authorize TradeStation Securities, in its sole discretion, to make or
obtain reports concerning your credit standing, business conduct and history
with legal, regulatory and administrative authorities. You may make a written
request for a description of the nature and scope of the credit reports made or
obtained by TradeStation Securities and the same will be provided to you within
a reasonable period of time. You further agree to provide TradeStation
Securities, on request, with such additional information or certifications as
may be required by TradeStation Securities or Applicable Laws.

    39.Cumulative
Rights. The rights, remedies, benefits and privileges of TradeStation
Securities under (a) this agreement. (b) any other written agreement or document
executed or delivered by you. and (c) any written agreement with an affiliate of
TradeStation Securities (collectively, the "Related Agreements"), whether part
of the Account Application and Agreement or otherwise, are cumulative and shall
be interpreted to convey to and upon TradeStation Securities and its affiliates
the broadest, most expansive, most enforceable rights, remedies, benefits and
privileges. Any inconsistencies or conflicts between or among any of the Related
Agreements shall be disregarded, as TradeStation Securities may at any time, or
from time to time, choose, so that TradeStation Securities may enjoy to the
fullest extent possible the right, remedy, benefit or privilege that it, at any
time or from time to time, seeks to assert, enforce or avail to
itself.

    40. Request
for Electronic Transmission of Statements and Other Documents and Information.
You hereby request that all confirmation statements of activity and all periodic
account statements, as well as all tax documents and related notices, be
delivered to you solely by electronic transmission to the e-mail address
indicated by you in the Account Application and Agreement of which this
agreement is a part. You represent to us that you do not want to be mailed hard
copies of any such statements, documents or information (however, you
acknowledge that, until further notice, TradeStation Securities shall, as a
courtesy to you and at no extra charge, also mail to you hard copies of your
monthly, quarterly and annual account statements, including year-end tax
documents). You warrant and represent that the above- referenced e-mail will
promptly print out for you the relevant customer statements, documents and
information in the form received by you. You understand that there is a risk of
failure of any electronic transmission, and will not hold TradeStation
Securities liable directly or indirectly for such failure. If you fail to
receive a statement of activity of which you are aware, you will contact a
TradeStation Client Service representative at the Brokerage Client Service
telephone numbers posted on the TradeStation Securities Web site on the business
day following the day of any such activity. You acknowledge that if you choose
not to accept electronic statements and documents, TradeStation Securities may
charge your account a fee for each hard-copy statement and document delivered.
This consent shall be effective until revoked by you in writing, and delivered
to TradeStation Securities. In addition, you acknowledge that, for your
protection and the protection of TradeStation Securities, any request to change
the e-mail address designated in your Account Application and Agreement must be
in writing-
and must bear the same signature as the one on your Account Application
and Agreement. In the event such a request is received from a legal entity, such
as a corporation, LLC or partnership, the request must be accompanied by
appropriate documentation establishing that the person signing the request
possesses the requisite authority to bind the entity.

    BY
SIGNING THE ACCOUNT APPLICATION AND AGREEMENT OF WHICH THIS ACCOUNT AGREEMENT IS
A PART, YOU ACKNOWLEDGE THAT: (1)YOU ARE OPENING A MARGIN ACCOUNT AND (2)YOU
HAVE REQUESTED, AND CONSENTED TO, THE DELIVERY TO YOU OF YOUR CONFIRMATION AND
OTHER ACCOUNT STATEMENTS, AS WELL AS TAX DOCUMENTS AND RELATED NOTICES, SOLELY
BY ELECTRONIC TRANSMISSION TO YOUR SPECIFIED E-MAIL ADDRESS.

     

    
      
        
        

      

      
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    TradeStation
Technologies 

    Subscription
Agreement

     

    Please
read this carefully. This is a legal agreement ("Agreement") between you and
TradeStation Technologies, Inc. ("Licensor') and its data suppliers, including,
but not necessarily limited to, Comstock. Inc., COMTEX Scientific Corporation,
GFT, Multex, Inc. (if Market Guide data is included), Dow Jones & Company,
Inc. and any equities, options, futures, Forex or other exchanges or suppliers
the data of which is directly or indirectly distributed or redistributed to you
by TradeStation Technologies (the Data Suppliers"). By ordering or subscribing
for the TradeStation8 platform of products or services, and completing the "I
AGREE' segment at the end of this Agreement (or, if you are applying for a
TradeStation Securities brokerage account, by signing and delivering the Account
Application and Agreement of which this is a part), you are agreeing to be
legally bound by the terms of this Agreement. This Agreement includes, as part
of it, all other agreements, terms and conditions which appear on any Web site
or online registration that you have accessed, and which is hosted by us or our
affiliates and discusses our services, except as noted in the last two sentences
of this paragraph (collectively, the "Other Terms and Conditions"). You
understand and agree that this Agreement (including those Other Terms and
Conditions) has the binding legal force and effect of a contract signed in ink
and delivered in person. If there is any conflict between this Agreement and the
Other Terms and Conditions, this Agreement shall govern. THIS AGREEMENT DOES NOT
COVER OR RELATE TO THE OPENING OF A BROKERAGE ACCOUNT OR BROKERAGE SERVICES OR
TRANSACTIONS OF ANY KIND. ALL MATTERS RELATING TO BROKERAGE SERVICES AND
TRANSACTIONS ARE COVERED BY AGREEMENTS BETWEEN YOU AND TRADESTATION SECURITIES,
INC. (AN AFFILIATE OF LICENSOR), AND, IF APPLICABLE, ITS CLEARING
FIRM.

     

    1.
GRANT OF LICENSE.

    (a) Licensor
grants to you a nonexclusive license to use the software included in the
Subscription, which includes all investment and trading tools and applications
included in the Subscription, including all basic services and all premium or
optional services you select (the "Software"), and all market and other
financial data, news and other financial, market and/or business information
included in the Subscription (the 'Data") on a single computer terminal (at any
given time). If the Software or Data are being used on a network, each
individual accessing the Software or Data through the network must have a
separate Software and Data license to, or subscribed for by, that individual
(i.e., there must be a Subscription per individual). In licensing the Software
and the Data on a monthly, annual or other periodic basis, under a subscription,
lease or similar arrangement (the "Subscription"), your right to use the
Software and Data, unless renewed, terminates at the expiration of your
Subscription, and may be terminated by Licensor immediately if you fail to make
any required payment or violate any of your other agreements with Licensor, any
of the Data Suppliers or market data exchanges ("Exchanges") set forth in, or
relevant to, your Subscription or this Agreement, whether set forth in this
Agreement or set forth elsewhere. This Agreement and the license granted may not
be transferred, assigned, leased, rented, sublicensed or otherwise transferred
by you. In no event shall the Software or the Data be used by you for, or in
connection with, any unlawful purpose.

     

    (b) Assuming
that you comply with all "pro" vs. "non-pro" rules and regulations (as later
discussed in this Agreement), you are also granted a nonexclusive,
non­transferable license to use precise reproductions of screen shots of
charts displayed by the Software in connection with your business, solely for
illustrative or informational purposes, and only if your business is related to
investment analysis (such as an investment analysis website, financial
newsletter or book, etc.). in order to utilize this right, you may not in any
manner state or imply that Licensor endorses you, your company or any of your or
its products or services, that the use of any TradeStation product or service
will guarantee profits, increased profits or minimization of losses, or that
Licensor or TradeStation recommends any particular trading system or strategy.
Also, each screen shot reproduced must be displayed under a prominent caption
that reads "Chart created on TradeStation®, the flagship product of TradeStation
Technologies, Inc." The screen shot may not be altered or presented in a manner
that leads or may lead the viewer to believe that the Software has capabilities
which it does not. This license may be terminated by Licensor at any time, for
any reason, upon notice to you of such termination. IN NO EVENT MAY ANY OF THE
DATA BE DISSEMINATED FOR ANY EXTERNAL USE.

     

    (c) You
will obtain a Subscription password that enables your use of the Software and
Data (your "Password"). You agree to keep your Password confidential, and not to
disclose it to anyone else, publish it, or allow anyone else to use it. You
acknowledge and agree that, in addition to providing your unique Password,
Licensor may implement technical measures that enable TradeStation to verify
your compliance with the terms of this Agreement.

     

    (d) Any
or all of the licenses granted above may be terminated by Licensor with or
without notice to you if you violate or otherwise do not observe any of the
terms, conditions or provisions of this Agreement.

     

    2.
OWNERSHIP AND COPYRIGHT. The Software has been developed by or for
Licensor or its affiliate(s). The Data has been assembled, formatted and
supplied by either Licensor or its affiliate(s) and/or the Data Suppliers, and
is being
offered by Licensor or its affiliate(s) either directly or pursuant to licenses
granted by the Data Suppliers. The Software and the Data were developed,
compiled, prepared, revised, selected and arranged by Licensor and the Data
Suppliers through the application of methods and standards of judgment developed
and applied through the expenditure of substantial time, effort and money,
constitute confidential and valuable industrial property and trade secrets, and
are protected by United States copyright laws and international treaty
provisions as well as other intellectual property laws and treaties. All title
and copyrights in and to the Software and the Data and any accompanying printed
materials are owned by licensor or its affiliate(s) or the Data Suppliers (or
their suppliers). You agree not to duplicate, reproduce, publish, retransmit or
redistribute the Software or Data, except that you may make a copy of the
Software or Data solely for your individual use(s) or as otherwise specifically
permitted by this Agreement. You may not directly or indirectly offer or
transmit all or any portion of the Software or Data to third parties whether by
way of subscription, license, sale or otherwise. You may not modify, translate,
reverse engineer, de-compile or disassemble the Software or the
Data,

     

    3.
PAYMENT.

    To
the extent, if any, that TradeStation Securities, Inc. has agreed to pay your
Subscription fees based upon your use of its brokerage services, these payment
provisions will not apply to you. If you are a TradeStation Securities brokerage
client, any fees payable by you for the Software or the Data will be debited to
your brokerage account.

     

    (a) In
exchange for the Software and Data made available to you in connection with your
Subscription, you agree to pay all applicable fees as displayed in TradeStations
on-line registration or otherwise made available to you. All Subscription fees
payable to Licensor are due in advance, and no Subscription products or services
shall be delivered to you unless and until Licensor has received full,
non-conditional payment of all applicable fees, including credit card payment
verification, approval and clearance. Your first month's Subscription fee, if
your Subscription relates to only a part of the first month, shall be
appropriately prorated. However, no part of the full monthly Subscription fee is
refunded if you terminate in the middle of a month. Any and all applicable sales
or use taxes, as well as all applicable Exchange fees and charges (unless
expressly included in your Subscription for no additional charge), shall be your
responsibility and paid by you in full and on a timely basis.

     

    (b) Payment
By Credit Card: You hereby authorize Licensor or its affiliate to use the credit
card information furnished by you to licensor or its affiliate for purposes of
fulfilling your payment obligations under this Agreement. You further represent
and warrant that (i) the credit card information provided to Licensor (card
number, expiration date and card-holder's name) is accurate and valid in all
respects and lawfully authorized for use, and that you are providing your credit
card information to Licensor fully intending and expecting your credit card to
be fully charged all fees and payment amounts which you have agreed to pay in
your on-line registration, or otherwise, including all Subscription, data,
Exchange and other fees and charges; and that (ii) such credit card belongs to
you or has been authorized for use by you by the valid card-holder. Upon
expiration of your credit card, you shall notify Licensor of the new credit card
expiration date and all other relevant new information pertaining to the new
credit card.

     

    (c) Late
Payments: Payments not received by their due dates will be assessed a late
charge fee equal to Licensor's then current late charge fee amount, but
not

     

    
      
        
        

      

      
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    TradeStation
Technologies 

    Subscription
Agreement

    

    less than
$10.00. Payments returned to Licensor for insufficient funds will result in a
service charge fee of the maximum allowable returned check fee under Florida
law. You shall thereafter be charged interest at the maximum legal interest rate
on any unpaid balance.

     

    4.
SUBSCRIPTION CHOICES.

    To
the extent, if any, that TradeStation Securities, Inc. has agreed to pay your
Subscription fees based upon your use of its brokerage services, these
provisions will not apply to you.

     

    (a) Annual
Prepaid Subscriptions: If you register for an Annual Prepaid Subscription (if
and when available) for real-time or end-of-day versions (if available), you
shall prepay all fees for twelve (12) consecutive months at the specified
one-year price. Annual Prepaid Subscriptions are not cancelable, and Annual
Prepaid Subscription fees and commitments are nontransferable. You must notify
Licensor to discontinue your subscription at least 30 days prior to the
expiration of the Annual Prepaid Subscription. If no notification is received,
(i) your Annual Prepaid Subscription for real-time service may, at Licensor's
option, automatically renew as a Monthly Subscription at the then current rates
and, if you are paying by credit card, you authorize such additional charges,
and (ii) your Annual Prepaid Subscription for the end-of-day version (if
available) may, at Licensor's option, automatically renew as an Annual Prepaid
Subscription (end­of-day subscriptions, if and when available, are offered
only on an annual basis) at the then current rates and, if you are paying by
credit card, you authorize such additional charges.

     

    (b) Monthly
Subscriptions: If you register for a Monthly Subscription, you will be required
to make all payment amounts, on a monthly basis, described in your Subscription
registration, as such payment amount may from time to time change. Any such
changes may be made in Licensor's sole and absolute discretion with or without
advance notice. All brokerage customers of TradeStation Securities, Inc. have
Monthly Subscriptions.

     

    5.
PROFESSIONAL/NON-PROFESSIONAL STATUS. With respect to products or
services involving the receipt of financial market information, if you claim
that you are a Non-Professional Subscriber or a "Non-Pro,' you represent and
warrant that you meet and comply with all New York Stock Exchange (NYSE),
American Stock Exchange (AMEX), The Nasdaq Stock Market, Inc.(Nasdaq) and
Options Price Reporting Authority (OPRA) requirements for qualification as a
Non-Professional Subscriber, and that the following statements are and shall
continue to be true for as long as you receive information or services pursuant
to the terms and conditions of this Agreement:

     

    (a) You
are entering into this Agreement in your own individual capacity and not on the
behalf of a firm, corporation, partnership, trust, or association.

     

    (b) You
shall use the information and service(s) solely in connection with your own
individual personal investment activities and not in connection with any trade
or business activities.

     

    (c) You
shall not fumish the information or service(s) received to any other
person.

     

    (d) You
are not a securities broker-dealer, investment advisor, futures commission
merchant, commodities introducing broker or commodity trading advisor,
registered representative of any of the foregoing, member of a securities
exchange or association or futures contract market, or an owner, partner or
associated person of any of the foregoing.

     

    (e) You
are not employed by a bank or an insurance company or an affiliate of either, or
any other organization which performs business functions related to securities
or commodity futures investment or trading activity.

     

    If any of
the foregoing statements are not true for you or your situation, then your
status is Professional or "Pro' and you must register for your Subscription as
such. You acknowledge and agree that if your status with respect to any of the
foregoing statements is affected or changed in any way, you shall immediately
notify Licensor in writing of such change of status or position. In addition to
other remedies available to Licensor and the Data Suppliers (and the Exchanges),
you

     

    shall be
liable to Licensor and the Data Suppliers and the Exchanges for the difference
between any fees and costs paid by you and the fees and costs applicable to
Professional Subscribers for the same type of information and services that you
improperly received as a Non-Professional Subscriber, plus any applicable
Exchange and governmental penalties, and you irrevocably authorize Licensor (and
its affiliate) to charge against your credit card (or to debit your brokerage
account, if you have one with TradeStation Securities) any and all such amounts.
You understand and agree that all registration and biographical information you
provide to Licensor or its affiliates relating to this issue may be examined by
the applicable Exchanges.

     

    6.SOFTWARE ISSUES AND
MODIFICATIONS. If any of the Data Suppliers furnishing Data ceases to
furnish it in a manner which is compatible with the Software or any
receipt/transmission equipment software.. Licensor may terminate the inclusion
and delivery in the Subscription of as much Data as is affected, without advance
notice, without incurring any liability to you. and without any change to any of
your payment or other obligations. Further, the Software (which, among other
things, determines the functionality and, appearance of most, if not all, of the
Subscription's features) may be modified or replaced from time to time, in whole
or in part, without any notice, and without incurring any liability to you, and
without any change to any of your payment or other obligations.

     

    7. NO
WARRANTIES. TO THE MAXIMUM EXTENT PERMITTED BY LAW, LICENSOR AND THE DATA
SUPPLIERS AND THEIR RESPECTIVE SUPPLIERS AND AFFILIATES DISCLAIM ALL WARRANTIES,
EITHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR USE OR PURPOSE.

     

    8.
NO LIABILITY FOR CONSEQUENTIAL, INCIDENTAL OR INDIRECT DAMAGES; LICENSOR'S AND
DATA SUPPLIERS' TOTAL LIABILITY CAPPED. IN NO EVENT SHALL LICENSOR OR THE DATA
SUPPLIERS OR ANY OF THEIR RESPECTIVE SUPPLIERS OR AFFILIATES BE LIABLE FOR ANY
SPECIAL, INCIDENTAL, INDIRECT OR CONSEQUENTIAL DAMAGES WHATEVER (INCLUDING,
WITHOUT LIMITATION, DAMAGES FOR LOSS OF PROFITS, LOSS OF BUSINESS INFORMATION,
BUSINESS INTERRUPTION OR OTHER PECUNIARY LOSS) ARISING OUT OF THE USE OR
INABILITY TO USE THE SOFTWARE OR THE DATA, OR ANY ERRORS IN THE SOFTWARE OR THE
DATA, EVEN IF LICENSOR OR THE DATA SUPPLIERS HAVE BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES. SOME STATES DO NOT ALLOW LIMITATION OR EXCLUSION OF
LIABILITY FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES SO THE ABOVE LIMITATION MAY
NOT APPLY TO YOU. ALL SOFTWARE AND DATA PRODUCTS AND SERVICES CONTAIN SOME
ERRORS AND INACCURACIES, INCLUDING THE SUBSCRIPTION SOFTWARE AND THE DATA. YOU
UNDERSTAND THIS AND FULLY ASSUME ALL RISKS AND CONSEQUENCES RELATING TO SOFTWARE
ERRORS AND DATA INACCURACIES OR INCOMPLETENESS. YOU ACKNOWLEDGE AND AGREE THAT
EVEN THOUGH THE DATA SUPPLIERS ARE GRANTED RIGHTS AND PROTECTIONS UNDER THIS
AGREEMENT, THE DATA SUPPLIERS ARE NOT PARTIES TO THIS AGREEMENT AND NO RIGHTS
ARE BEING CREATED IN YOUR FAVOR THAT MAY BE ENFORCED BY YOU AGAINST ANY DATA
SUPPLIER (OR EXCHANGE). IF ANY OF THE DISCLAIMERS OF LIABILITY IN THIS AGREEMENT
ARE FOR ANY REASON DECLARED INVALID BY A COURT OF COMPETENT JURISDICTION, YOU
AGREE THAT THE MAXIMUM COLLECTIVE LIABILITY OF LICENSOR AND THE DATA SUPPLIERS
TO YOU RELATING TO ANY CLAIM YOU MAY HAVE IN ANY MANNER RELATING TO YOUR
SUBSCRIPTION, THE SOFTWARE OR DATA, OR THE USE, CONDITION, OPERATION,
EFFECTIVENESS OR QUALITY THEREOF, WHETHER BASED IN CONTRACT, TORT, EQUITY OR ON
OTHER GROUNDS OR THEORIES, AND REGARDLESS OF THE CIRCUMSTANCES, SHALL NOT EXCEED
THE TOTAL AMOUNT ACTUALLY PAID BY YOU TO LICENSOR FOR THE

     

    
      
        
        

      

      
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    TradeStation
Technologies 

    Subscription
Agreement

     

    
      SUBSCRIPTION
FOR THE MOST RECENT THREE (3) MONTHS AT THE
TIME THE LIABILITY ARISES.

       

      9.NO WARRANTY ON
SOFTWARE OR DATA; OTHER TERMS REGARDING DATA. ALL
SOFTWARE AND ALL DATA IS PROVIDED AS IS." THE
DATA IS DERIVED FROM SOURCES WHICH LICENSOR AND
THE DATA SUPPLIERS DEEM USUALLY RELIABLE, BUT
NEITHER LICENSOR NOR THE DATA SUPPLIERS OR THEIR RESPECTIVE
SUPPLIERS OR AFFILIATES GUARANTEE THE
CORRECTNESS OR COMPLETENESS OF THE DATA, AND HEREBY
INFORM YOU THAT INTERRUPTIONS, INACCURACIES, ERRORS
AND OMISSIONS DO AND WILL FROM TIME TO TIME OCCUR.
NEITHER LICENSOR NOR THE DATA SUPPLIERS OR ANY OF THEIR RESPECTIVE SUPPLIERS OR
AFFILIATES SHALL
HAVE ANY LIABILITY WHATEVER FOR ANY INTERRUPTIONS,
INACCURACIES, ERRORS OR OMISSIONS, REGARDLESS OF CAUSE,
OR ANY LOSSES YOU INCUR AS A RESULT THEREOR
The use of automated query systems to access the Data is strictly
prohibited. Any use of such systems will result in immediate termination of
access. You further understand and agree that your right to receive all or a
portion of the Data is subject to termination to the extent that Licensor's
agreements with any of the Data Suppliers terminate for any reason, or any Data
Supplier refuses or is unable, for whatever reason, to continue to supply Data
to Licensor (in whole or in part). If that occurs, it may occur without notice,
and in no event shall result in any liability to Licensor or any of the Data
Suppliers or any of their respective affiliates, or change any of your payment
obligations. To the extent applicable, you agree to make application to, and
receive written approval from or execute an appropriate agreement with, each
Exchange, to the extent required by the rules, regulations or policies of such
Exchange, in order to receive the Data of that Exchange. You also agree to
comply with any applicable conditions, restrictions and limitations, and to pay
any applicable fees and charges, imposed by such Exchange. These obligations
generally apply, in whole or in part, at a minimum, to Professional Subscribers
who receive Exchange financial market data. If any Exchange, for any reason,
terminates provision of Data to Licensor or the Data Suppliers, your receipt of
Data may be discontinued with or without notice, and you agree that in such
event neither Licensor nor the Data Suppliers or their suppliers shall have any
liability to you.

       

      10.USING THE SOFTWARE TO MAKE INVESTMENT
AND TRADING DECISIONS OR
TO INITIATE TRADES. All
software, including the
Software, contains errors, and all financial market and similar databases and services, including the
Data, contain inaccuracies and mistakes and are incomplete in certain respects.
You are strongly advised to verify pricing and all other relevant information
prior to making any trade or investment. AS BETWEEN LICENSOR AND THE DATA
SUPPLIERS ON THE ONE HAND, AND YOU ON THE OTHER, SOLELY
YOU FULLY ASSUME THE
RISK THAT ERRORS OR INACCURACIES IN THE SOFTWARE AND/OR THE DATA MAY RESULT IN YOUR
REACHING CONCLUSIONS
THAT YOU MIGHT NOT OR WOULD NOT HAVE REACHED HAD SUCH ERRORS AND/OR
INACCURACIES NOT BEEN
PRESENT. FURTHER, AS BETWEEN LICENSOR AND YOU, SOLELY YOU FULLY ASSUME THE RISK THAT
SOFTWARE ERRORS MAY
CAUSE FAILURES IN THE TRANSMISSION OF INFORMATION THROUGH THE INTERNET OR
OTHER CHANNELS, OR
INACCURACIES IN INFORMATION BEING SO TRANSMITTED, INCLUDING BUT NOT
LIMITED TO TRANSMISSIONS
OF ORDERS TO PLACE OR EXECUTE TRADES OR CONFIRM OR CANCEL TRANSACTIONS. YOU
AGREE THAT NEITHER
LICENSOR OR ITS AFFILIATES, NOR THE DATA SUPPLIERS OR THEIR AFFILIATES, SHALL
HAVE ANY LIABILITY WHATEVER FOR ANY CONSEQUENCES OF SUCH
ERRORS, INACCURACIES OR
FAILURES.

       

      11. INDEMNITY.
You shall indemnify and hold harmless Licensor and each of the Data
Suppliers, and each of their respective directors, officers, employees and
affiliates, from and against any claim, damages, loss, liability, cost and/or
expense (including, but not limited to, reasonable attorneys' fees and costs,
before and at any trial or other proceeding, at all tribunal levels, and whether
or not any suit is instituted) that directly or indirectly arise from or are
caused by

       

      (a) any
use by you of any of the Software and/or any of the Data,

       

      (b) any
breach or violation by you of any term or provision of this Agreement or any
other agreement you have made in connection with your registration for the
Subscription,

       

      (c) your
assertion of a claim against Licensor, the Data Suppliers, or any of their
respective employees, agents or affiliates, that asserts that any of them are
responsible or liable for any loss or damage the risk of which has been
disclaimed by Licensor (on its own behalf and/or on behalf of the Data Suppliers
and Licensor and the Data Suppliers' respective employees, agents or affiliates,
including, but not limited to, TradeStation Securities) or assumed by you under
this Agreement,

       

      (d) any
violation of any kind by you, or on your behalf, of the legal or contractual
rights of any third party (including Licensor and each Data Supplier and their
respective affiliates), including, but not limited to, violation of any such
third party's patent, copyright, trademark, service mark, trade secret or other
intellectual property rights, and/or

       

      (e) any
false or misleading information provided by you to Licensor, any of the Data
Suppliers, or to any of their respective suppliers (including the Exchanges)
and/or affiliates.

       

      12. PRODUCT
SUPPORT; OTHER PRODUCTS AND SERVICES; UPGRADES.

       

      (a) The
price paid by you for the Subscription relates only to your receipt of the
Software and Data (including whatever optional Software and Data you may have
selected and agreed to pay for), and to no other products or services, including
upgrades or technical support Licensor or an affiliate offers or may offer from
time to time. AJI support services, including technical support and other
services and benefits that may be made available from time to time by Licensor
or an affiliate through its Web site(s) or otherwise, and the terms and
conditions upon which they are made available (including pricing), may be
modified at any time and from time to time by Licensor or its affiliate with or
without notice.

       

      (b)
If you are given or accept any EasyLanguage technical support or
consulting services by or from Licensor or its affiliates, or similar services
of any kind, a separate fee may be payable by you ("Support Services"). If a fee
is payable, it shall be discussed with you in advance. Neither Licensor, nor its
affiliates, in the performance of Support Services, provides or offers trading
strategies or systems of any kind. The sole purpose of Support Services relating
to EasyLanguage is to assist you in your use of EasyLanguage to express and
formulate strategies or systems that you are developing or have developed.
Solely you assume the risk that the technical suggestions given to you
accurately reflect your strategies or systems and your intent, before you use
them. Licensor and its affiliates provide Support Services, including
EasyLanguage Support Services, only on the condition that you fully accept and
assume these premises and risks, and you hereby acknowledge and agree that you
do accept and assume them.

       

      13.THIRD-PARTY
BENEFICIARIES. Each of the Data Suppliers, and each of the Exchanges the
Data of which are included in the Subscription, and each of Licensor's
affiliates, including, but not limited to, TradeStation Securities, is an
intended third-party beneficiary of this Agreement, and may enforce all rights
and obligations in its favor contained in this Agreement, provided that the
right to such enforcement is assigned to it by Licensor (in the case of
TradeStation Securities, such assignment is presumed, and enforcement by
TradeStation Securities of disclaimers, assumptions of risk and other provisions
of this Agreement is limited to the extent, but only to the extent, that
enforcement of such disclaimers, assumptions of the risk or other provisions of
this Agreement is expressly prohibited by applicable laws, rules or
regulations). Licensor may make any such assignment in its sole and absolute
discretion, and no such assignment, if and when made, shall create any liability
of Licensor to you or any other person or entity.

       

      14.
FORCE
MAJEURE. The performance by Licensor and each of the Data Suppliers of
this Agreement, including delivering availability and use of the

       

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

    

    TradeStation Technologies

    Subscription
Agreement

    

    Software
and and the Data pursuant to your Subscription, shall be excused (without
creating liability of any kind to Licensor or any Data Supplier) in the event
and to the extent that any war, union strike, hostility, civil disorder, fire,
tornado, wind storm, earthquake, power failure, explosion, failure of
communications system (or part thereof) or any other third-party failure, or any
other act, event or circumstance beyond the reasonable control of Licensor or
such Data Supplier (as applicable), renders such performance, in whole or in
part, impossible or difficult to accomplish.

     

    15.SEVERABILITY.
If any provision of this Agreement is held to be invalid, void or
unenforceable by reason of any law, rule, administrative order or judicial
decision, that determination shall not affect the validity of the remaining
provisions of this Agreement.

     

    16.WAIVER.
Except as specifically permitted in this Agreement, no provision of this
Agreement can be, nor be deemed to be, waived, altered, modified or amended
unless agreed to in writing signed by an authorized officer of Licensor (Vice
President or higher).

     

    17.ENTIRE
UNDERSTANDING; ASSIGNMENT. This Agreement contains the entire
understanding between you and Licensor concerning the subject matter of this
Agreement. You may not assign any of your rights or delegate any of your
obligations hereunder without first obtaining the prior written consent of
Licensor.

     

    18.CHOICE
OF LAW AND VENUE. This Agreement shall be deemed to have been made in the
State of Florida and shall be construed, and the rights and liabilities of the
parties determined, in accordance with the laws of the State of Florida. Venue
for any dispute involving or relating to your subscription shall be proper only
in Miami-Dade County, Florida or Broward County, Florida, except if waived by
Licensor in writing in its sole and absolute discretion, and except that any
dispute between you and any Data Supplier and/or Exchange (which does not
include Licensor) shall be proper only in the county where the principal
executive office of such Data Supplier or Exchange is located. You hereby
irrevocably consent to personal jurisdiction in the State of
Florida.

     

    19.
ADDITIONAL IMPORTANT INFORMATION AND DISCLAIMERS Investments and trading involve
risks, including possible loss of principal and other losses. The Software and
Data are designed, provided and/or presented chiefly to provide a training tool
for the understanding of technical analysis of the financial markets. They are
licensed to you with the understanding that neither Licensor nor the Data
Suppliers are engaged in rendering any investment, trading or other professional
advice. If investment, trading or other professional advice is required, the
services of a competent, licensed professional should be sought. No employee,
agent or representative of Licensor, any Data Supplier or any of their
respective affiliates is authorized to provide any such advice of any nature
whatever, and any such advice, if given, is in violation of Licensees and such
Data Suppliers' policies, is unauthorized and may not be relied upon. The use of
any trading system or strategy, including any system or strategy included as a
sample in, or that is or was developed using, the Software or any of the Data,
does not and cannot guarantee that you will make profits, increase profits or
minimize losses. Any popular or other tools, strategies or systems included in
the
Software are intended merely as examples of technical ideas that can be
incorporated into a personally-designed trading strategy or system. None is
recommended. You must use your own judgment or consult a professional for advice
on such matters. Additionally, trading results based upon hypothetical or
historically-tested trading strategies or systems do not necessarily compare to
results of actual trading. No hypothetical or historical trading record can
account for the level of risk present in actual trading. Numerous factors
relating to market conditions, the existence or nonexistence of specific events
or circumstances, human error, human/emotional reaction to losses during actual
trading, inherent limitations of certain hypothetical or historically tested
models, particularly ones that do not operate at the "tick" (as opposed to open,
high, low, close) level, volume of trade and liquidity differences between
hypothetical models and actual trades, and other supply/demand differences that
may not be addressed by hypothetical models, and other conditions and
circumstances, can account for these differences. There is no guarantee that
your hypothetical trading results, even if tested against historical data, will
produce comparable actual trading results. In fact, there are frequently sharp
differences between hypothetical or historically tested performance results and
the actual results subsequently achieved by any particular trading system or
strategy. The possible reasons for this include the likelihood that no trading
strategy or system can, even with automated trading, be precisely executed as
designed. Also, you should be aware that certain commonly used trading "jargon,"
including trading terms, such as, for example, a "limited risk" position, should
not be taken literally. For example, so-called "limited risk" positions in
certain options trades are not in fact limited as may be expected. Again, with
respect to matters such as these, a licensed professional should be consulted.
TradeStation is an "open platform." This means that independent companies that
are in no way affiliated with Licensor may offer trading tools or strategies
that are compatible with TradeStation. Licensor conducts no investigation or
review of any of such tools or strategies, and does not recommend, endorse,
approve or disapprove of any of them. There are also independent, unaffiliated
individuals and companies that offer EasyLanguage programming, consulting and
related services. Again, Licensor conducts no investigation or review of any of
such services, and does not recommend, endorse, approve or disapprove of any of
them.

     

    Trademarks;
ActivityBars, Active Ticker, EasyLanguage, OptionStation, PaintBar, PowerEditor,
ProbabilityMaps, RadarScreen, ShowMe, SmartAsk, SmartBid, SmartSearch,
SmartStyling, StrategyBuilder and TradeStation are registered or unregistered
trademarks or service marks of Licensor or one of its affiliates. In certain
cases, registrations therefor are pending. The Software and the Data and their
descriptions also contain other trademarks of Licensor or its affiliates as well
as registered and unregistered trademarks and service marks of the Data
Suppliers, and trademarks, service marks and trade names of other
companies.

     

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    R.J.
O'Brien Account Agreement

     

    
      THIS
IS PART OF A LEGALLY BINDING CONTRACT THAT CONTAINS REPRESENTATIONS, OBLIGATIONS
AND OTHER AGREEMENTS THAT CAN BE ENFORCED AGAINST YOU. PLEASE READ THIS DOCUMENT
VERY CAREFULLY BEFORE SIGNING THE ACCOUNT APPLICATION AND AGREEMENT WHICH
INCORPORATES THIS AGREEMENT AS A PART THEREOF R.J. O'BRIEN AND ASSOCIATES IS
TRADESTATION'S CLEARING AGENT FOR ALL FUTURES ACCOUNT TRANSACTIONS, AND CARRIES
AND IS RESPONSIBLE FOR ALL CUSTOMER ACCOUNT ASSETS AND ALL MARGIN
LENDING.

      NOTE:
TradeStation Securities and its affiliates are express third-party beneficiaries
of the following Account Agreement

       

      1. ACCOUNT
STATUS

      R.J.
O'Brien (RJO) agrees to accept and maintain for the undersigned Customer one or
more accounts and to act as broker or dealer for Customer in the execution and
clearance of orders for transactions involving the purchase and sale of
commodity futures contracts; options on futures contracts; commodities and
forward contracts; option, spot and forward foreign exchange transactions;
exchange for physicals (EFPs"); and any other cash transaction (individually, a
"Contract" and collectively, "Contracts"). Customer hereby represents that all
responses made in connection with the Account Application and Account Agreement
are complete and correct, and that RJO will be informed of any material change
in such data, including financial information.

       

      Customer
warrants to RJO that if Customer is an individual or if this is a joint account,
Customer(s) is of legal age and of sound mind. Unless otherwise indicated in the
Customer Application, no one except the Customer(s) identified in the Account
Application has an interest in the account(s).

       

      Customer
agrees to permit verification of relevant information by RJO through third
parties (including credit reporting entities). In any event, this Customer
Agreement and the account(s) permitted hereunder become effective only upon
acceptance by an authorized representative of RJO at its principal office in
Chicago, Illinois.

       

      2.ACCOUNT
RISKS Customer acknowledges the following:

       

      A) TRADING IN CONTRACTS IS HIGHLY
SPECULATIVE AND IN NO SENSE MAY BE CONSIDERED A CONSERVATIVE
"INVESTMENT';

       

      B) BECAUSE OF THE LOW MARGIN DEPOSITS
NORMALLY UTILIZED AND THE VOLATILE PRICE MOVEMENTS WHICH CAN OCCUR IN THE
COMMODITY MARKETS. THE POSSIBILITY OF RAPID AND SUBSTANTIAL LOSSES IS
CONTINUALLY PRESENT;

       

      C)
TRADING IN CONTRACTS IS APPROPRIATE ONLY FOR THOSE PERSONS FINANCIALLY
ABLE TO WITHSTAND SUBSTANTIAL LOSSES, SOMETIMES GREATLY EXCEEDING THE VALUE OF
THEIR MARGIN DEPOSITS.

       

      3.
MARGINS, DEPOSITS AND BALANCES

       

      All
checks and funds from Customer, to be credited to Customers account(s), must be
payable only to "R.J. O'Brien". Customer agrees at all times to maintain such
margin in his account as RJO may from time to time (at its sole discretion)
require, and will meet all margin calls in a reasonable amount of time. Customer
agrees that, if requested to do so, Customer will promptly wire-transfer such
funds. Market conditions permitting, RJO agrees to make reasonable efforts to
notify Customer of margin calls and/or deficiencies and to allow a reasonable
period for Customer to provide funds. FOR THE PURPOSE OF THIS AGREEMENT A
REASONABLE AMOUNT OF TIME SHALL BE DEEMED TO BE ONE (1) HOUR -OR LESS THAN ONE
HOUR IF, IN RJO'S BUSINESS JUDGMENT MARKET CONDITIONS WARRANT. Customer further
agrees that, notwithstanding anything in this Agreement to the contrary, in the
event that the account(s) is undermargined, has zero equity or an equity deficit
at any time, or in the event that RJO is unable to contact Customer due to
Customer's unavailability or due to a breakdown in electronic communications,
RJO shall have the right to liquidate all or any part of Customer's positions
through any means available, without prior notice to the Customer.

       

      Furthermore,
if at any time Customer's account does not contain the amount of margin
determined by RJO to be appropriate to protect it from adverse market activity,
or in the case of Customers bankruptcy, or any other event which may cause RJO
to be concerned over Customers ability to perform, RJO may at its sole
discretion and without prior notice, to Customer, "straddle" or "spread" open
positions, switch positions to another month, commodity or exchange, close out
positions in whole or part, or limit and/or terminate the right of the Customer
to trade in the account(s), other than for liquidation. RJO is authorized to
take whatever action it deems necessary including, without prior demand or
notice to Customer, hedging and/or offsetting of
Customer's positions in a cash market or otherwise, selling or otherwise
liquidating any property belonging to the Customer or in which the Customer has
an interest, buying or borrowing any property required to make delivery against
any sales, including short sales, effected for Customers account(s) or otherwise
liquidating the positions in Customer's account(s) by exchange of future for
physical transactions, all for Customer's sole account and risk. Such
liquidation, sale or purchase may be public or private and may be made without
notice to Customer and in such manner as RJO may, in its sole discretion,
determine.

       

      RJO may
require margin in excess of that required by applicable law, regulation,
exchange or clearinghouse minimums. All deposits shall be deemed made only when
cleared funds are actually received by RJO. If a check is not honored or paid by
a bank upon presentment, RJO will immediately debit Customers account for the
amount of the returned check as well as any fees incurred. Any failure by RJO to
call for margin at any time shall not constitute a waiver of RJO's right to do
so any time thereafter, nor shall such failure create any liability to the
Customer. RJO shall not be liable to Customer for the loss or loss of use Of any
margin deposits option premiums, or other property, which loss is the direct or
indirect result of bankruptcy, insolvency, liquidation, receivership,
custodianship, or assignment for the benefit of creditors of any bank, other
clearing broker, exchange, clearing organization or similar entity.

       

      RJO may,
for any reason, require Customer to transfer its account(s) to another firm. If
Customer does not transfer its positions promptly upon demand by RJO, RJO may
liquidate the positions and Customer agrees to indemnify and hold RJO harmless
from any and all losses resulting from such liquidation.

       

      The
Customer acknowledges that RJO is hereby specially authorized, for its account
and benefit, from time to time and without notice to it, either separately or
with others, to lend, repfedge, hypothecate or rehypothecate, either to itself
or to others, any and all property (including but not limited to securities,
commodities warehouse receipts or other negotiable instruments) held by Customer
in any of its accounts and RJO shall not at any time be required to deliver to
Customer such identical property but may fulfill its obligation by delivery of
property of the same kind and amount.

       

      4. DEBIT
BALANCES

      All
monies, securities, negotiable instruments, open positions in Contracts, options
premiums, commodities or other property now or at any future time on deposit or
in safekeeping with RJO, shall constitute security for Customer's obligations
hereunder and Customer grants RJO the right to sell or use such security to
offset and credit any of those obligations not promptly paid. Customer
understands that Customer is liable to RJO for any deficit ("debit") balance in
the account(s) remaining after any such offset. If Customer does not promptly
pay a debit in Customer's account(s) and RJO deems it necessary to take
collection action, Customer will hold RJO harmless for all losses and expenses
and will reimburse RJO for the debit and all costs incurred, including
reasonable attorneys' fees in connection with such collection
actions.

       

      Customer
agrees to pay interest on debit(s) at the greater of 1% per month or at an
annual rate of 1% over the prime rate at the Harris Trust & Savings Bank of
Chicago.

       

      5. COMMISSIONS,
FEES AND OTHER COSTS

      Customer
agrees to pay all commissions, fees and other costs charged by RJO, including
but not limited to, introducing broker and floor brokerage,
clearing,

       

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

    

    
      R.J.
O'Brien Account Agreement

    

     

    
      exchange
and NFA fees. In the event that Customers account is transferred to another
broker, transfer commissions and/or service fees may be charged. Any interest
accrued in any account on excess cash balances shall be retained by RJO. RJO
shall be under no obligation to pay or account to Customer for any interest
income or benefits that may be derived from or use of client monies, reserves,
deposits, cash equivalents or any other property.

       

      If
Customer directs RJO to enter into any transaction which is effected in a
foreign currency or if funds provided by Customer involve the use of a foreign
currency: any profit or loss arising as a result of a fluctuation in the
exchange rate affecting such currency will be entirely for Customer's account
and risk. All initial and subsequent deposits for margin purposes shall be made
in U.S. dollars, unless otherwise requested in writing by Customer, and written
approval from RJO is obtained. RJO is authorized to convert funds in Customer's
account(s) into and from the relevant foreign currency at the rate of exchange
plus appropriate fees, obtained from RJO or RJO's banker.

       

      6. EXCHANGE
AND FEDERAL RULES

      All
transactions handled by RJO on Customers behalf shall be subject to the
constitution, regulations, customs and interpretations of each exchange or
market (and its clearing house, if any), on which the trades are executed, and
to all applicable governmental regulations. RJO shall not be liable to Customer
as a result of any action taken by RJO to comply with such rules. RJO's
violation of any exchange or other self regulatory organization's regulations
shall not provide Customer with either a defense to a claim by RJO or the basis
of a claim against RJO. In the event that the Customer is a regulated
institution or entity, Customer recognizes and acknowledges that it may be
required to comply with regulations including, but not limited to the Commodity
Exchange Act, and that RJO has no obligation to insure that Customer abides by
the rules and regulations pertaining to it.

       

      7. POSITIONS
AND DELIVERIES

      Customer
authorizes RJO to purchase and sell Contracts, in accordance with Customers oral
or written instructions.

       

      Customer
acknowledges Customers reporting obligations (regarding certain sized positions)
under CFTC Regulation 18.00. These sections obligate Customer to notify the CFTC
on Form 40 on the first day that Customers position is reportable (as defined in
CFTC Regulation 15.03) and for each day thereafter as long as Customer holds the
position.

       

      Customer
agrees to honor all assignments and deliver the underlying commodity in the
prescribed time. If Customer fails to so deliver, Customer designates RJO to act
as Customers agent to buy such commodity contracts so that the commitment is
honored. If a call or a put option is written on a futures contract, Customer
realizes that Customer will be required to purchase the underlying futures
contract at the exercise price in the event Customer receives a notice of
assignment. Customer agrees to honor all assignments and pay the exercise price
in the prescribed time. If Customer fails to so act, Customer designates RJO as
Customer's agent to liquidate the underlying futures contract so that Customers
commitment will be honored, Customer understands that Customer's account will be
debited for any loss and that a commission and/or other related transaction
costs will be charged for these services.

       

      Customer
understands that, unless the contract specifications state to the contrary,
every futures contract contemplates delivery and Customer shall promptly advise
RJO if Customer intends to make or take delivery. When Customer intends to take
delivery, Customer shall deposit with RJO the full value of the commodity at
least five (5) business days prior to the first notice day and, in the case of
short positions, at least seven (7) business days prior to last trading day.
Alternatively, sufficient funds to take delivery or the necessary documents must
be in the possession of RJO within the same periods described above. If RJO does
not receive the aforementioned instructions, funds or documents, RJO is
authorized, at its discretion, to borrow or buy any property necessary to honor
such obligation, and Customer shall pay and indemnify RJO for any costs, losses,
penalties or damages (including, but not limited to delivery and storage costs)
which RJO might incur in fulfilling this responsibility.

       

      Customer
understands that if Customer does not liquidate a position prior to the
end of
trading on the last day before expiration of a security futures contract
("SSF"), Customer will be obligated to either make or accept a cash payment for
cash settled contracts, or accept delivery of the underlying securities in
exchange for final payment of the settlement price for SSF contracts settled by
physical delivery. Unless the SSF contract specifications state to the contrary,
every SSF contract contemplates delivery. Before a Customer will be allowed to
make or take delivery of an SSF, Customer must provide RJO with information
relating to the broker-dealer through which Customer will effect delivery. In
this regard Customer will identify the name of the broker-dealer the
broker-dealer's Depository Trust Number, the broker Dealer's Institutional ID
number, and the Customer's account number on the books of the broker-dealer.
When a customer intends to take delivery, Customer shall provide notification
and deposit with RJO the full value of the underlying securities subject to the
SSF at least five (5) business days prior to the last trading day of the
contract. When the customer holds a short position and intends to make delivery,
Customer shall provide notification and tender the underlying securities subject
to the SSF to RJO at least five (5) business days prior to the last trading day.
If RJO does not receive the aforementioned instructions, funds or stocks, RJO is
authorized, at its discretion, to borrow or buy any stock necessary to honor
such obligation, or to liquidate or otherwise offset the position, and Customer
shall pay and indemnify RJO for any costs, losses, penalties or damages
(including, but not limited to settlement and transaction costs) which RJO might
incur in fulfilling this responsibility.

       

      8. OPTIONS

      CUSTOMER
WILL NOT PURCHASE A PUT OR CALL UNLESS CUSTOMER IS ABLE TO SUSTAIN THE TOTAL
LOSS OF THE PREMIUM AND RELATED TRANSACTION COSTS. CUSTOMER WILL NOT SELL
(WRITE) A CALL OR PUT OPTION UNLESS CUSTOMER EITHER OWNS THE UNDERLYING FUTURES
CONTRACT OR IS ABLE TO WITHSTAND SUBSTANTIAL FINANCIAL LOSSES.

       

      Customer
recognizes that Customer is fully responsible for taking action to exercise an
option contract. RJO shall not be required to take any action with respect to an
option contract, including any action to exercise a valuable option prior to its
expiration date, except upon express instructions from Customer. In this
connection, Customer understands that exchanges have established exercise
cut-off times for the tender of exercise instructions, and that Customer's
options may become worthless in the event that Customer does not provide
instructions promptly. Customer further understands that RJO cut-off times may
differ from the times established by the exchanges, and hereby agrees to waive
any and all claims for damage or loss which might arise out of an option not
being exercised. RJO will not be responsible for information regarding option
expiration dates and assignment notification. Additionally, RJO will not be
responsible for any errors or omissions regarding such information.

       

      Customer
understands that the RJO exercise policy is on a random basis. All short option
positions are subject to assignment at any time, including positions established
on the same day that exercises are assigned. Notices of assignment are allocated
on a random basis upon best efforts among all customers' short option positions
which are subject to exercise.

       

      Customer
understands that particular commodity options may cease to trade at any time or
expire, either of which event may result in Customer's financial loss. Customer
also understands that some exchanges may automatically exercise long in the
money options pursuant to the regulations of such exchange.

       

      9.LIMITATION
OF LIABILITY OF RJO FOR ACTS OF BROKERS RJO will execute Customers
transactions solely as agent of Customer. In executing transactions on an
exchange, RJO may utilize floor brokers (who may be employees or other agents of
RJO), but will not be responsible to Customer for negligence or misconduct of an
independent floor broker if, at the time the floor broker was selected, the
floor broker was authorized to act as such under the rules of the relevant
commodity exchange and the appropriate regulatory agency. RJO will not be
responsible to Customer in the event of error, failure, negligence, or
misconduct on the part of any non-guaranteed Introducing Broker, Commodity
Trading Advisor, or other person acting on Customer's behalf and, without
limiting the foregoing, RJO has no obligation to investigate the facts
surrounding any transaction in Customers Account(s) which is introduced by such
non-guaranteed Introducing Broker, Commodity Trading Advisor, or
other

       

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

    

    
      R.J.
O'Brien Account Agreement

    

     

    
      person.
With respect to guaranteed Introducing Brokers, Customer agrees that RJO's
maximum liability to Customer shall be limited to the amount of the minimum net
capital requirement (calculated in accordance with 17 C.F.R. §1.17 as of the
date of the finding of actual liability), that would have been required for the
guaranteed Introducing Broker had it been a non-guaranteed Introducing Broker.
Customer expressly acknowledges that a finding of liability against an
Introducing Broker may substantially exceed the amount of the Introducing
Broker's minimum net capital requirement which, in some circumstances may be as
low as $30,000. This means that Customer's right to recover from RJO pursuant to
the provisions of this paragraph could also be limited to $30,000.

       

      10.
COMMUNICATIONS AND ORDERS

      Since all
Contracts experience rapid movements in price, Customers attention is required
in the placement of orders and execution of the same by RJO.

       

      Unless a
managed (discretionary) account has been arranged through the execution of a
written trading authorization, each order should be communicated to RJO by the
Customer or Customers duly authorized broker. Instructions should include, but
may not necessarily be limited to, the commodity involved, quantity, price, and
delivery month. Any trade not specifically authorized by Customer must be
immediately reported by Customer directly to RJO's Compliance Department.
Customer will be financially responsible for all trades not so reported and for
any losses arising by virtue of a course of dealing involving his grant of de
facto control over the account to his broker.

       

      Customer
agrees that RJO will not be responsible for delays or inaccuracies in the
electronic preparation of statements or the distribution of market information.
Nor will RJO be responsible for any failure beyond its control, including (but
not limited to) government restrictions, exchange reporting problems, contract
market rulings, strikes, suspension of trading, war or acts of God. RJO's
liability to Customer is limited to damages arising from its own gross
negligence or willful misconduct and such damages are limited to actual (as
distinguished from consequential) damages suffered by Customer. RJO makes no
representation, warranty or guarantee as to, and shall not be responsible for
the accuracy or completeness of, any information or trading recommendations
furnished to Customer by its employees or agents.

       

      Orders
are good for one day only (regular day trading session) unless specified and
accepted as being "open", in which case the order will remain open until filled
or the Customer so specifies. If Customer does not specify the actual exchange
or forum to execute its order, RJO in its sole discretion shall execute the
Customers order using its best judgment. In some circumstances, this may mean
RJO may be on the other side of Customers trade. The price at which an order is
actually executed shall be binding, even if incorrectly reported. Similarly, an
order actually executed but in error reported as not executed is also
binding.

       

      Customer
understands that while the Internet and the World Wide Web generally are
dependable, technical problems or other conditions may delay or prevent Customer
from entering or canceling an order on the RJO Online Trading System, or
likewise may delay or prevent RJO from executing an order on the RJO Online
Trading System. RJO shall not be liable for, any technical problems, system
failures and malfunctions, communication line failures, equipment or software
failures or malfunctions, system access issues, system capacity issues, high
Internet traffic demand, security breaches and unauthorized access beyond the
reasonable control of RJO, and other similar computer problems and defects. RJO
does not represent, warrant or guarantee that Customer will be able to access or
use the RJO Online Trading System at times or locations of Customer's choosing,
or that RJO will have adequate capacity for the RJO Online Trading System as a
whole or in part by RJO's or Customers use of or reliance on the RJO Online
Trading System or its content or in otherwise performing its obligations under
or in connection with this Agreement. In no event will RJO or any of its service
providers be liable to Customer or any third party for any punitive,
consequential, special or similar damages even if advised of the possibility of
such damage. If some jurisdictions do not allow the exclusion or limitation of
liability for certain damages, in such jurisdictions, the liability of RJO or
any of its service providers shall be limited in accordance with this Agreement
to the extent permitted by law. RJO reserves the right to suspend service and
deny access to the RJO Online Trading System without prior notice during
scheduled or unscheduled system maintenance or upgrading.

       

      In the
event that Customer is unable to transmit an order through the RJO Online
Trading System, or is unable to confirm that an electronic order has been
received by RJO, Customer should follow these procedures: (i) if Customer's
account is introduced to RJO by an introducing broker, Customer must contact the
introducing broker, notify the introducing broker of the exact nature of the
problem and, if appropriate, place the order by phone through the introducing
broker; (ii) if Customer is unable to contact his introducing broker by
telephone, or, if Customers account is not an introduced account, Customer must
contact RJO at (312) 373-5000 and notify RJO of the exact nature of the problem
including, but not limited to, the details of the order (including the contract,
quantity and whether the order was to buy or sell). Customer agrees that any
order placed through this number shall be for liquidation of existing positions
only. This number is not to be called by customer for customer support. Customer
agrees that when following these procedures, Customer shall be liable for any
losses arising out of any order that has previously been transmitted by
electronic means, as well as the order placed orally through RJO or Customers
introducing broker.

       

      11.
REPORTS AND NOTICES

      SHOULD
INACCURACIES OR DISCREPANCIES APPEAR ON CUSTOMERS STATEMENTS OF ACCOUNT(S),
MARGIN CALLS, AND NOTICES CUSTOMER AGREES THAT IT IS CUSTOMER'S DUTY TO INFORM
RJO OF THE PROBLEM BY TELEPHONE OR FACSIMILE IMMEDIATELY UPON THE EARLIER OF
ACTUAL RECEIPT OF THE STATEMENT BY CUSTOMER, OR THE TIME THE STATEMENT IS DEEMED
RECEIVED BY CUSTOMER PURSUANT TO THIS PARAGRAPH 11. IN THE EVENT THAT CUSTOMER
DOES NOT RESPOND IMMEDIATELY EXECUTED ORDERS AND STATEMENT REPORTS SHALL BE
CONSIDERED RATIFIED BY CUSTOMER AND SHALL RELIEVE RJO OF ANY RESPONSIBILITY
WHATSOEVER RELATIVE TO THE ORDER(S) IN QUESTION. ALL REPORTS OF INACCURACIES OR
DISCREPANCIES MUST BE MADE TO CUSTOMER'S BROKER AND TO RJO'S COMPLIANCE
DEPARTMENT

       

      Customer
has the responsibility to maintain contact with Customers individual broker at
all times that Customer has market positions or has placed orders but is not
available at Customers regular address or telephone number to receive
reports.

       

      Customer
authorizes RJO to transmit electronically (which may include electronic mail) to
Customer or post on the RJO Online Trading System all statements, compilations
and details of transactions, and other notices, and Customer hereby consents to
such methods of receiving such information. There will not be any additional
cost or fee for this service. If Customer requests a hard copy of any of these
documents, other than by downloading or printing such information or documents
from the RJO Online Trading System, there will be a charge as established by RJO
from time to time. This consent to receiving such information electronically
shall be effective until revoked by Customer in writing and delivered to RJO. It
shall be Customers responsibility to check Customers electronic mail and the RJO
Online Trading System site on a regular basis, and no less then daily, to
receive statements, compilations and details of transactions, and other notices
from RJO. Customer agrees to download or print such statements, compilations and
details of transactions, and other notices if such statements or information are
available for downloading or printing. Information sent by electronic mail shall
be deemed received by Customer by 10:00 a.m. (CST) the next business day after
RJO sends the electronic mail, unless RJO receives a message from its system
administrator that the message was not delivered. Information and notices posted
on the RJO Online Trading System shall be deemed received by Customer by 10:00
am. (CST) after RJO posts such information and notices.

       

      Customer
shall promptly notify RJO of any difficulty in accessing, opening or otherwise
viewing an electronically transmitted document or information. Upon Customers
request, RJO will use an alternative method of delivering such document or
information to Customer, at Customers sole expense. Such alternative means of
delivery shall riot affect the date such document or information is deemed
received by Customer, as set forth above.

       

      Details
of trades and any other similar information or notices either sent
to

       

      
        
           

        

        
          18

          
            

          

        

        
           

        

        
          R.J.
O'Brien Account Agreement

        

         

        
          Customer
or posted on the RJO Online Trading System shall be conclusive and binding
unless Customer notifies RJO to the contrary, (i) where a report or notice is
sent electronically, posted on the RJO Online Trading System or made orally,
then, as the case may be, at the earlier of the time actually received, or
deemed to be received pursuant to this paragraph 11 by Customer, or (ii) where a
report or notice is in writing by 8:00 am. C.S.T. on the next Business Day
following receipt of such report.

           

          12. TAPE
RECORDING

          Customer
hereby authorizes RJO to make recordings of telephone conversations between
Customer and RJO regardless of whether a periodic tone signal is used. Customer
consents to the use of such tape recording in any forum in connection with
resolving disputes. RJO and its affiliates may also, at their discretion,
utilize a telephone recording system to place Customers orders. RJO may erase or
dispose of such tapes in accordance with its normal procedures.

           

          13. AMENDMENTS
AND GUARANTEES

          This
Agreement, reflects the entire agreement between RJO and Customer and supercedes
all prior oral and written agreements between the parties relating to the
subject matter hereof and no provisions hereof shall in any respect be waived,
augmented or modified by any other party unless in writing and signed by an
official so authorized in RJO's office headquarters.

           

          NO ONE
(INCLUDING FCMS, ASSOCIATED PERSONS, INTRODUCING BROKERS, FUND MANAGERS,
COMMODITY TRADING ADVISORS OR POOL OPERATORS) CAN GUARANTEE PROFITS OR THE
ABSENCE OF LOSSES. CUSTOMER AGREES TO PROMPTLY NOTIFY THE RJO COMPLIANCE
DEPARTMENT IF ANY SUCH GUARANTEE IS SUGGESTED.

           

          14. GOVERNING
LAW AND WAIVER OF STATUTES OF LIMITATIONS

          This
Agreement shall be governed by the internal laws of the State of Illinois,
excluding conflict-of-laws principles. Customer agrees that no law suit,
reparations proceeding before the Commodity Futures Trading Commission,
arbitration proceeding or other claim or action relating to this Agreement or
the transactions in Customer's account may be initiated by Customer unless
commenced within one year from the date of the disputed transaction. Customer
expressly acknowledges that but for this waiver, Customer would otherwise have
two years to initiate a claim in reparations before the Commodity Futures
Trading Commission or an arbitration before the National Futures Association,
and may be waiving even longer time periods that Customer might otherwise have
to file a claim under state or federal law.

           

          15. CUSTOMERS
LIABILITY FOR ATTORNEYS FEES

          Customer
agrees that if Customer institutes legal, arbitration, or reparation proceedings
against RJO and if the court, arbitration panel, or other adjudicator deciding
such proceedings determines that RJO has substantially prevailed on a claim made
by Customer in such proceedings, Customer shall pay, immediately upon demand,
all costs and expenses (including attorneys' fees) incurred by RJO in connection
with defending such claim.

           

          16.
ELECTRONIC TRADING AND ONLINE SERVICES

          RJO will
provide Customer with an individual password and a unique user identification
(together, the "Access Codes"). The Access Codes will enable Customer to access
its account and enter orders for its account through the RJO Online Trading
System. Customer must maintain the confidentiality of the Access Codes at all
times. Customer accepts full responsibility for the use and protection of the
Access Codes, which includes, but is not limited to, all orders entered into the
RJO Online Trading System using the Access Codes and changes in Customer's
account information that are entered using the Access Codes.

           

          Customer
accepts full responsibility for monitoring its account(s) with RJO. Should
Customer become aware of any loss, theft or unauthorized use of its Access
Codes, Customer shall notify RJO immediately. Customer shall notify RJO within
one (1) Business Day of discovering any failure to receive compilations and
details of transactions or other communications from RJO. Under either
situation, Customer shall provide written notice to RJO's Compliance Officer at
RJO's office, and such notice will be deemed received only if actually
delivered, sent by electronic mail to info©rjobrien.com,
Attention:

           

          Compliance
Department, or by fax to 312-373-5225, Attention: Compliance
Department.

           

          Any and
all materials that RJO provides to Customer in connection with the RJO Online
Trading System are (if provided on a non-exclusive non-transferable basis, (ii)
the property of RJO and (iii) intended for Customer's use only. Customer shall
not resell or permit access to the RJO Online Trading System to others and
agrees not to copy any materials appearing on the RJO Online Trading System for
resale to others. Customer further agrees not to delete any copyright notices or
other indications of protected intellectual property rights from materials that
Customer prints or downloads from the RJO Online Trading System. Customer shall
not obtain any intellectual property rights in or any right or license to use
such materials or the RJO Online Trading System other than as set out
herein.

           

          Customer
agrees to use the RJO Online Trading System at Customer's own risk. Customer
shall be responsible for providing and maintaining the means by which to access
the RJO Online Trading System, which may include without limitation a personal
computer, modem and telephone or other access line. Customer shall be
responsible for all access and service fees necessary to connect to the RJO
Online Trading System and assumes all charges incurred in accessing such system.
Customer further assumes all risks associated with the use and storage of
information on Customer's personal computer.

           

          The RJO
Online Trading System may contain links to websites controlled or offered by
third parties. The existence of such links should not be construed as an
endorsement, approval or verification by RJO of any content available on third
party sites.

           

          17. TERMINATION

          This
Agreement may be terminated by RJO or the Customer immediately upon written
notice to the other party. In the event of such termination, Customer shall
immediately liquidate positions in Customer's account(s), or transfer such open
commodity interest positions to another FCM. Notwithstanding any termination,
Customer shall satisfy all liabilities to RJO arising hereunder (including, but
not limited to, payment of applicable debit balances, commissions and fees,
including fees with respect to the transfer of positions to another FCM). This
Agreement shall be binding upon Customer's personal representatives and legal
successors, and shall inure to the benefit of RJO's successors by merger,
assignment, consolidation or otherwise. In the event of Customer's bankruptcy
proceedings, death. incompetence, dissolution, or failure to provide adequate
margin, RJO is authorized to terminate account in the fashion described
elsewhere in this Agreement, without prior notice to the Customer. The
termination of this Agreement shall not affect the obligations of the parties
arising from transactions entered into prior to such termination. RJO reserves
the right to terminate any Customer account at any time, for any
reason.

           

          18. OFFSETTING
POSITIONS

          If
Customer maintains separate accounts in which, pursuant to Commodity Futures
Trading Commission Rule 1.46 (d)(6), offsetting positions are not closed out,
RJO hereby advises Customer that, if held open, offsetting long and short hedge
positions in the separate accounts may result in the charging of additional fees
and commissions and the payment of additional margin, although offsetting
positions will result in no additional market gain or loss.

           

          19.
CFTC REG. 15.05 -DESIGNATION OF RJO AS AGENT OF FOREIGN BROKERS, CUSTOMERS OF
FOREIGN TRADERS; AND REG. 21.03 SELECTED SPECIAL CALLS -DUTIES OF FOREIGN
BROKERS, DOMESTIC AND FOREIGN TRADERS, FUTURES COMMISSION MERCHANTS AND CONTRACT
MARKETS

           

          If the
Customer is a foreign broker it understands that pursuant to CFTC Regulation
15.05, RJO is Customer's agent (and in the case of a foreign broker the agent of
its customers) for purposes of accepting delivery and service of any
communication upon RJO shall constitute valid and effective service or delivery
upon Customer (and if it is a foreign broker, upon its customers). The Customer
understands that said regulation requires RJO to transmit the communication
promptly to it (or its customer) in a manner which is reasonable under the
circumstances or specified by the CFTC. The Customer also understands CFTC
Regulation 21.03 requires it to provide to the CFTC upon special call, market
information concerning its options and futures trading (or its customers') as
outlined in the regulation. If the Customer fails to respond to the special
call, the

           

          
            
               

            

            
              19

              
                

              

            

            
               

            

          

        

      

    

    
      R.J.
O'Brien Account Agreement

    

     

    
      CFTC may
direct the appropriate contract market and all brokers to prohibit further
trades for or on its behalf (or for its customers) in the contract specified in
the call unless such trades offset existing open contracts. Special calls are
made where the information requested would assist the CFTC in determining
whether a threat of market manipulation, corner, squeeze or other market
disorder existed. Under Regulation 21.03(g) if the Customer believes it is
aggrieved by the action taken by the CFTC it shall have the opportunity for a
prompt hearing after the Commission acts. (The Customer understands that copies
of CFTC Regulation 15.05 and 21.03 are available from RJO).

       

      20. MARKET
INFORMATION

      Exchange
and RJO brochures and research are often provided as trading tools. In addition,
RJO's Market Center Direct may also contain certain market information. The
information contained therein is believed to be reliable, however, no
representation is made as to its accuracy, completeness or reliability.
Moreover, interpretation of such information is extremely subjective and may
vary widely from trader to trader. Customer understands that such information
may reflect opinions and RJO shall have no liability arising out of any trading
losses incurred by Customer arising out of reliance upon such information or
opinions in connection with any trading decision.

       

      21. CONSENT
TO JURISDICTION

      Customer
agrees that all disputes, claims, actions or proceedings arising directly,
indirectly, or otherwise in connection with, out of, related to or from this
Agreement shall be litigated or arbitrated only in a court or arbitration forum
located in Chicago, Illinois, unless otherwise agreed by RJO. Customer consents
and submits to the jurisdiction of any state or federal court or arbitration
forum located within the Northern District of Illinois. Customer hereby waives
any right Customer may have to transfer or change the venue of any litigation
brought against Customer by RJO or by Customer against RJO. Customer
acknowledges and consents to RJO's election to instigate legal action to collect
any debit balance in Customer's account(s) in any court located in the Northern
District of Illinois.

       

      Customer
appoints and designates RJO (or any other party whom RJO may from time to time
hereinafter designate) as Customer's true and lawful attorney­in-fact and
duly authorized agent for service of legal process and agrees that service of
such process upon such attorney-in-fact shall constitute personal service of
such process upon Customer; provided, that RJO or such other party shall, within
five days after receipt of any such process, forward the same by air courier or
by certified mail, together with all papers affixed thereto, to Customer at
Customer's mailing address. If any provision of this paragraph shall be
prohibited by or invalid under applicable law, such provision shall be
ineffective only to the extent of such prohibition or invalidity, without
invalidating the remaining provisions of this paragraph.

       

      23. WAIVER,
AMENDMENT AND ASSIGNMENT

      The
failure of RJO to enforce at any time any provision of this Agreement shall not
be construed to be a waiver of such provision nor in any way to affect the
validity of this Agreement or the right of RJO thereafter to enforce each and
every provision hereof. No waiver of any breach of this Agreement shall be held
to constitute a waiver of any other or subsequent breach, No waiver or amendment
shall be implied from any conduct, action, or inaction. No provision of this
Agreement may be waived or amended unless such waiver or amendment is in writing
and signed by an authorized officer of RJO. Any rights that Customer may have
pursuant to this Agreement shall not be assigned, transferred, sold or otherwise
conveyed by Customer to another party. Under certain circumstances, RJO may,
subject to exchange, National Futures Association ("NFA") or Commodity Futures
Trading Commission ("CFTC") rules, assign this account to another duly
registered Futures Commission Merchant ("FCM").

       

      24.           FACSIMILE
EXECUTION

      RJO
requires that all customers have an original customer agreement with original
signatures on file with the New Accounts Department. However, at the sole
discretion of RJO, documents signed and transmitted by facsimile machine or
telecopier may be accepted as original documents. The signature of any person or
entity thereon, is to be considered as an original signature, and the document
transmitted is to be considered to have the same binding effect as an original
signature on an original document. At the request of RJO, any facsimile or
telecopy document must be re-executed in original form by the persons or
entities who executed the facsimile or telecopy document. No party hereto may
raise the use of a facsimile or telecopier machine as a defense to the
enforcement of this Agreement or any amendment or other document executed in
compliance with this section.

       

      25.           FOREIGN
EXCHANGE

      All
foreign exchange transactions made and entered hereunder will be entered by RJO
as principal. In other words, RJO will be the opposite party to the transaction
with Customer, as opposed to merely executing Customer's order with a third
party. Customer acknowledges, understands and agrees that RJO is not acting as a
broker, agent, advisor, or in any fiduciary capacity in connection with foreign
exchange transactions. RJO will make available the bid and/or ask price at which
RJO is prepared to enter into a foreign exchange transaction with Customer. Each
bid price or ask price shall be for either a spot contract or forward contract
with a specified value date and shall specify each foreign currency involved.
RJO expects that these prices will be reasonably related to the bid prices and
ask prices available in the market at the time for similar transactions, but a
number of factors, such as communication system delays, high volume, or
volatility can result in deviations between prices quoted by RJO and other
sources. Customer should be aware that prices on foreign exchange transactions
are not determined by open outcry or otherwise on registered exchanges, and that
such transactions are not subject to the same regulatory oversight as
transactions in regulated futures and/or options on futures contracts. RJO makes
no warranty, express or implied, that the bid and ask prices represent
prevailing bid and ask prices.

       

      26. CUSTOMER
REPRESENTATIONS AND WARRANTIES FOR FOREIGN EXCHANGE TRANSACTIONS

      Customer
represents and warrants that Customer is making its own independent decisions of
whether to enter into a foreign exchange transaction and whether that
transaction is appropriate or proper for Customer based upon Customer's own
judgment and upon advice from such advisors as Customer deems necessary.
Customer is not relying on any communication (written or oral) of RJO as
investment advice or as a recommendation to enter into any foreign exchange
transaction. Customer understands that information and explanations related to
the terms and conditions of a foreign exchange transaction shall not be
considered investment advice or a recommendation to enter into that foreign
exchange transaction. Customer further represents and warrants that it has not
received any assurance or guarantee from RJO as to the expected results of
trading in foreign exchange transactions. Customer represents and warrants that
Customer is capable of evaluating and understanding each foreign exchange
transaction (either on Customer's own behalf or through independent professional
advice), and understands and accepts the terms, conditions, and risks of each
foreign exchange transaction to which Customer is a party. Customer warrants
that Customer is willing and financially able to sustain all losses associated
with the foreign exchange transactions entered into by Customer and that RJO
shall not be liable to customer for the loss of any margin deposits or other
funds deposited by Customer in connection with such foreign exchange
transactions.

       

      27. SEVERABILITY

      If any
provision of this Agreement shall be prohibited by or invalid under applicable
law, such provision shall be ineffective only to the extent of such prohibition
or invalidity ascend, without invalidating the remaining provisions of this
Agreement.

       

      28.NO
LIABILITY FOR ACTS OR OMISSIONS OF TRADESTATION (i) The relationship
between RJO and its employees and TradeStation Securities, Inc. ("TradeStation")
is only to clear trades Customer places through TradeStation; (ii) TradeStation
is not controlled by RJO; (iii) supervision and control of activity in
Customer's account(s) rest with TradeStation, subject to exchange, government
and NFA regulations; (iv) commissions charged to Customer's account(s) are
established by TradeStation and these charges include Customer's fee for
clearing Customer's transactions. Customer agrees that RJO is not responsible or
liable whatsoever for any matter relating to sales practices, trading practices,
errors in order entry or any similar or other matter, it being expressly
understood, agreed and acknowledged that RJO's sole responsibilities hereunder
relate to the execution, clearing, accounting and confirmation of transactions
for Customer's account on various exchanges in accordance with the instructions
received by RJO from TradeStation for and on behalf of Customer (or Customer's
trade placement through TradeStation's electronic trading services) in
accordance with usual and customary practices, and carrying Customer account
funds and assets. Customer agrees to refrain from bringing any action or
counterclaim against RJO with respect to any matter other than RJO's gross
negligence or willful misconduct in executing, clearing and/or accounting of
transactions, or carrying Customer account funds and assets.

       

      
        
           

        

        
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        24globalres_ex1001.htm

    
      
        EXHIBIT 10.1

         

        LICENSE
AGREEMENT

         

        License
Agreement made effective this 14th day of October, 2009 (the "Effective Date")
by and between Global Resource Corporation as Licensor (hereinafter called
"Licensor"), a Nevada corporation having a principal place of business at 1000
Atrium Way, Suite 100, Mount Laurel, New Jersey 08054 and Universal Alternative
Fuels, Inc., as Licensee (hereinafter called "Licensee"), a Nevada corporation
having a principal place of business at 1400 Old Country Road, Suite 206,
Westbury, NY 11590.

         

        WHEREAS,
Licensor has developed certain microwave technology for the recovery of
commercially usable energy or energy-producing materials, such as oil and gas,
together with by-products which may have commercial value, and Licensor has
filed certain patent applications for the protection of such technology, which
patent applications are pending;

         

        WHEREAS,
Licensor continues, and has continued, directly, and indirectly through
contractors (e.g., Ingersoll Production Systems), to perform research and
development and has improved upon, added to, and enlarged its technology beyond
the content of the patents pending, and intends to continue to do
so;

         

        WHEREAS,
Licensee desires to establish a business of (a) selling machines embodying the
microwave technology of Licensor as applied to oil shale and coal to recover
commercially usable energy, energy-producing materials and by-products from such
sources and (b) using such machines itself for the recovery of energy,
energy-producing materials and by-products from oil shale and/or coal and (c)
sub-licensing the use of the Technology, the pending Continuation Application
and the process hereinafter described within the Licensed Field of
Use;

         

        WHEREAS,
Licensor has filed a continuation application with the U.S. Patent and Trademark
Office ("PTO") for the microwave processing of (i) oil shale and (ii) coal, a
true and complete copy of which is attached as Schedule A to this License
Agreement (the "Continuation Application");

         

        WHEREAS,
Licensee desires to secure an exclusive, royalty-free world-wide license for the
application of the Licensor's Technology (now or hereafter acquired) and the
patents pending to the recovery of energy, energy-producing materials and
by-products from oil shale and/or coal, for the foregoing business
purposes;

         

        WHEREAS,
Licensor is agreeable to licensing Licensee, on an exclusive and royalty-free
basis, world-wide, for the use of the Technology solely in the Licensed Field of
Use and the patents pending for the recovery of energy, energy-producing
materials and by-­products from oil shale and/or coal, for the foregoing
business purposes of Licensee;

         

        WHEREAS,
Licensee acknowledges that Licensor has entered into a JDA with Schlurnberger
for the development of the technology as applied to heavy oils, and Licensor and
Licensee agree that this License Agreement does not include any application
covered by the subject matter of the JDA with Schlumberger; and Licensee also
acknowledges its awareness of a Marketing and Licensing
Agreement (the "C6 Agreement") entered into by Licensor with C6 Energy Pty. Ltd
("C6") which is the subject of a termination notice by Licensor;

         

        
          
            
            

          

          
            1

            
              

            

          

          
            
            

          

        

         

        WHEREAS,
the parties have negotiated and have reached certain
understandings, and desire a document to evidence and formalize such
understandings;

         

        WHEREAS, in connection and simultaneous
with the execution of this License Agreement,
the
Licensor has executed a
Security Agreement (the "Security Agreement") granting
the Licensee security
interests in the Continuation
Application and
the
Existing Prototype Machine currently located at the Ingersoll
plant in Rockford, Illinois (together, the "Security
interests");

         

        NOW,
THEREFORE, intending to be legally bound and in consideration of the mutual
promises and covenants contained
herein, and for other good and valuable consideration, the receipt and
adequacy of which are hereby
acknowledged, the
parties have agreed, and do hereby agree, as follows:

         

        ARTICLE
I - DEFINITIONS

         

        For the
purpose of this License Agreement, and solely for that purpose, the terms
set forth hereinafter shall be defined as follows:

         

        (a) "Cost to Manufacture" shall mean all
direct costs the Licensor incurs in connection with the manufacture of any machine,
such as (i) raw materials, parts and sub-assemblies, (ii) direct, manufacturing labor, (iii)
utilities, and (iv) reasonable depreciation of directly-used tools, machines, and the
manufacturing facility but there shall be specifically excluded from this
calculation of cost all of
the following: any research and development expenses of Licensor and or its contractor(s) (e.g.,
Ingersoll Production Systems); the general and
administrative overhead (G&A) of Licensor and/or its contractor(s),
salaries and employee benefits of Licensor's and its contractor(s)'
employees
other than of those engaged directly in the manufacturing process; and
any and all
other non-manufacturing costs and expenses of Licensor and/its contractor(s).

         

        (b) "Existing Prototype Machine"
shall mean that certain existing prototype machine of the Licensor at the
date hereof located
in Rockford, Illinois known as
the "PPS-TR Microwave Prototype Processor", as more
specifically described in Schedule B attached hereto and made a part
hereof.

         

        (c) "Licensed Field of Use" shall
mean
microwave
energy applications relating to the recovery from (i)
oil shale and (ii) coal to recover commercially usable energy,
energy-producing
materials and by-products from
such sources, whether by its own use of machines embodying the Technology, the sale of
machines embodying the Technology or the sub-licensing of the
Technology in the
Licensed Field of Use.

         

        (d) "Licensed Process" shall mean a method
or process in the Licensed Field of Use either covered by the Patent Rights or
by the Technology (now or hereafter acquired).

         

        (e) "Licensed Product(s)" shall mean a
product in the Licensed Field of
Use that is covered by the Continuation Application, Patent Rights
and/or Technology.

         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

         

        (f) "Licensed
Territory" shall mean all countries of the world.

         

        (g) "Parties"
shall mean Licensor and Licensee, and "Party" shall mean Licensor or Licensee
as the text may dictate.

         

        (h)
"Patent Rights" shall mean the patents and/or patent applications identified in
the Continuation Application, together with any divisional, continuation, or
continuation-in-part applications based thereon, any patents resulting from any
of said applications and any reissues or extensions that may be based on any of
said patents, and shall also include all improvements, modifications,
enlargements and extensions made to any of the Patent Rights during the term of
this License Agreement. For the avoidance of doubt, the Patent Rights relating
to the License shall be limited to the Licensed Field of Use.

         

        (i) The phrase "covered by the Patent
Rights" and equivalent language as used herein shall mean covered by a valid claim of
an issued, unexpired patent within the Patent Rights or by a claim being presented in a pending
patent application within the Patent Rights. Any claim being presented in a pending
patent application shall
be deemed to be the equivalent of a valid claim of an issued, unexpired patent
for purposes of the grant of the License.

         

        (j)  "Seller"
shall mean one who sells.

         

        (k)
"Sublicensee" shall mean a sublicensee pursuant to Article IV (a)
hereof;

         

        (l)
"Technology" shall mean the microwave technology of Licensor as applied to oil
shale and/or coal only and shall include for this purpose not only the content
of the Patent Rights and the content of any future patents issued or applied for
in the Licensed Field of Use, but all improvements, modifications, enlargements
and extensions thereto, now or hereafter existing, whether or not Licensor seeks
additional patent protection thereon, together with all software programs used
to design, install and operate the machines, all proprietary data and trade
secrets, all know-how, inventions and discoveries (whether patentable or not),
invention disclosures, improvements, trade secrets, proprietary information,
know-how, technology,
technical data, supplier lists and customer lists and all documentation
relating to any of the foregoing; databases, data collections and content and
all rights therein, throughout the world (collectively "Data Collections"); all
computer software, including all source code, object code, firmware, development
tools, files, records data, and documentation (including design
documents, flowcharts and specifications therefor), and all media on which any
of the foregoing is recorded (collectively "Software");

         

        (m) "Trademarks"
shall mean all trademarks, trade names, service marks, corporate
names
brand names, trade dress, designs and
logos and other source indicators, and all registrations and applications for
registration thereof and all other rights corresponding thereto throughout the
world, together with the goodwill of any business
symbolized thereby of the Licensor that relate to the Patent Rights in
the Licensed Field of Use; and

         

        (n)
"Used" (or "Use") shall mean use of
the Patent Rights or the Technology within the Licensed Field of Use in return for
any form of consideration having monetary value including for this
purpose equity ownership or investment in any entity regardless of the
form of ownership or investment.

         

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

         

        ARTICLE
II -  LICENSE

         

        (a) (i)
Licensor hereby grants and agrees to grant to Licensee and Licensee hereby
accepts and agrees to accept from Licensor, upon the terms and conditions herein
specified, an exclusive, world-wide, royalty-free license, with right to
sublicense, in the Licensed Field of Use under the Patent Rights and the
Technology (i) to practice the Licensed Process as a service to others or for
the
Licensee itself, (ii) to make, to have made, to use in the practice of
the Licensed Process and to sell, offer to sell, lease, distribute, export and
import Licensed Products in the country or countries in which the Patent Rights
are or shall be in effect and in each such country's territories and
possessions, and (iii) to use the Licensor's Trademarks associated therewith, to
the full end of the term or terms for which the Patent Rights and the Technology
are or shall be issued, unless the license or this License Agreement
shall be sooner terminated as hereinafter provided.

         

        (a) (ii)
Licensor agrees to indemnify and hold harmless Licensee and
each of
its respective members, managers, officers, directors, agents, employees
and affiliates (a "Licensee Party") from and against any and all losses, claims,
damages or liabilities, including penalties on reserves, to which it may
become subject that result from any claim asserted by any other party licensed
by or contracting with Licensor against Licensee
Party
arising out of, related to or in connection with any Licensor contract
regardless of how such claim is denominated or described, and
including all suits, actions, proceedings, demands, assessments,
judgments, costs, reasonable attorneys' fees and
expenses incident to any of the foregoing
matters, including those reasonable costs, charges and expenses
(including any expenses resulting from any
investigation or inquiry) with
respect to the participation of any Licensee
Party in defense thereof, whether or not the
Licensee
Party is named as
a party.

         

        (b) The
foregoing grant and acceptance of the License is specifically made subject to an
option on
the part of the Licensor to repurchase the
License and retain the Existing Prototype Machine upon certain terms and
conditions as follows:

         

        (i)
Contemporaneously with the execution
of this License Agreement, Licensee has given
Licensor a Purchase Order for an initial machine (Licensed
Product) embodying
the
technology
adapted for use with oil
shale (referred to in this
License Agreement as the
"initial machine" as differentiated from the
Existing Prototype Machine, as defined), Licensee shall have a "wait and
see" period of
hundred eighty
(180) days from the
date of this License Agreement)
to terminate that purchase order for the initial machine; but such right
is dependent upon
Licensor's failure, within one hundred fifty (150) days from the date of this
License Agreement,
to raise at least Three Million Four Hundred Thousand Dollars ($3,400,000)
in additional equity capital (which for this purpose shall include debt,
if convertible into common stock of the Licensor). If Licensor fails to achieve
such financing, Licensee shall
have the right (but not
the obligation) to terminate the Purchase Order. In the event that
Licensee so elects, then Licensor shall have a period of ten (10) days
in which to determine whether
it wishes to repurchase
this License and retain the Existing Prototype Machine in Rockford,
Illinois. The repurchase
and retention price shall be $1,700,000, including return of the Seven
Hundred Fifty Thousand Dollars ($750,000) paid as
license
fee
hereunder and reimbursement to Licensee of the $843,000
in costs incurred in connection
with this License Agreement. If Licensor
elects to repurchase and retain, it shall pay the sum of $1,700,000
within twenty (20) further days. If the repurchase/retention
is not timely accomplished by
Licensor, its option to repurchase/retain shall be null and void and of
no further effect.

         

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

         

        (ii) During the one hundred eight (180)
day "wait and see" period, Licensor and Licensee shall cooperate in
performing the necessary tests,
analyses, experiments, and research to determine the efficacy and efficicney
of the Technology to (i) oil shale and (ii) coal. If Licensee determines within its sole
discretion and
whether or not reasonably, that such Technology is not sufficiently
viable, efficacious or efficient within the Licensed Field of Use, then Licensee
shall have the
right (but not the
obligation), to terminate the Purchase Order. In the event that Licensee
so elects,
then Licensor shall have a period of ten (10) days in which to determine
whether it wishes to
repurchase this License and retain the Existing Prototype Machine in
Rockford. The repurchase price shall be
$1,700,000, including return of the Seven Hundred Fifty
Thousand
Dollars ($750,000) paid as
license fee hereunder and reimbursement to Licensee
of the $843,000 in costs incurred in connection with this
License Agreement. If Licensor elects to
repurchase
and retain, it shall pay
the sum of $1,700,000 within twenty (20) further days. If the
repurchase/retention is
not timely
accomplished by Licensor, its option to repurchase/retain shall be null and void and of no
further effect.

         

        (c) In the event that Licensee exercises
its option to terminate the purchase order and Licensor either (i)
does not elect to repurchase this License Agreement and
retain the Existing Prototype Machine in Rockford, Illinois
or (ii) elects to repurchase and
retain but fails to timely
pay the $1,700,000, then
in such case Licensee shall retain the exclusive license for
which it has paid, shall
have the right to foreclose its security interest in and to the Patent Rights
and the Existing Prototype
Machine, pursuant to the contemporaneously granted Security Agreement,
and shall have the right
to take immediate and exclusive
possession and ownership of the Existing Prototype
Machine.

         

        (d) In the
event that Licensee exercises its option to terminate the purchase order and
Licensor elects to repurchase
this License Agreement and retain the Existing Prototype Machine and
timely pays the $1,700,000, then this License Agreement shall
terminate
and (i) Licensee shall have no further rights hereunder and (ii)
Licensor's twenty
percent (20%) equity interest in Licensee shall terminate and be
rescinded ab initio, and (iii) all Security Interests on the Technology and
Existing Prototype Machine shall terminate and be released.

         

        ARTICLE
III - EXCLUSIVITY

         

        (a) Subject to the provisions of
Articles IV
and XIII hereof, the license herein granted under the Patent Rights shall
be exclusive to Licensee worldwide for a
period of time extending until the first to occur of
either: (i) termination of this License Agreement; or (ii) the expiration or lapsing of the last patent to expire
within the
Patent Rights in the respective countries in which applications for the
Patent Rights have been filed.

         

        (b) The
Licensor shall manufacture all machines to be sold to
Licensee or
Sublicensees under
this License Agreement; provided, however, that in the event the Licensor
is unable to manufacture any machine for
any order hereunder within the time period allotted
for any specific contract of purchase, then the Licensee
shall
have the right to undertake to manufacture any such machine at its own
cost and expense for its own use or for resale to a Sublicensee,
and such action by the Licensee shall not constitute a breach of or
default under this Agreement. In any such ease, the Licensor shall not
be entitled to receive any payment under Article VI of this License Agreement.
All machines manufactured and delivered by Licensor shall
comply in all respects
with all governmental and regulatory permits and authorizations including but
not limited to
environmental and pollution matters, worker safety and fire and other hazards.
If Licensor's failure
to manufacture a machine in response to a Licensee order occurs more than
twice within any
successive 24 month period, then Licensee shall be
permitted to organize
its own methods for
manufacturing new machines and in such case, Licensor
shall not be entitled to receive any fixed payments for the
machines under Article VI.

         

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

         

        ARTICLE
IV - SUBLICENSING PROVISIONS

         

        (a) Licensor
hereby grants and agrees to grant to Licensee, and Licensee hereby accepts and
agrees to accept from Licensor, upon the terms and conditions herein specified,
within the
Licensed Field of Use a nonassignable right and power
to
grant to others (Sublicensees"),
upon
reasonable
terms and conditions, nonassignable royalty-bearing or royalty-free
sublicenses under the Patent Rights to use or
resell the
Licensed Product and/or practice the
Licensed
Process in the
country or countries in which the Patent Rights are
or shall be in
effect
and in each
such country's
territories and possessions solely within the Licensed Field of
Use.

         

        (b) Any Sublicense in effect at the
termination of this License Agreement shall remain in effect, but for the benefit of
Licensor and Licensee; providing the Sublicensee shall continue to make all reports and payments due
and owing under its sublicensing agreement and is not otherwise in breach or default
thereunder, such reports and payments then to be made to Licensor and
Licensee
rather than Licensee
alone.

         

        ARTICLE
V - LICENSE FEE

         

        (a)
Upon execution and delivery of this License Agreement, Licensee shall pay to
Licensor, an aggregate license fee
comprised of the following:

         

        (1) a
one-time payment
of Seven Hundred
Fifty Thousand Dollars ($750,000);

         

        (2) restricted shares
of Licensee equal to twenty percent (20%) of the
issued and
outstanding shares
of common stock of Licensee at the date
of
issuance (the "Ownership Percentage
Amount"). Licensee agrees to issue
additional shares of common stock to Licensor such that Licensor
always shall own that number of shares of Licensee common stock as is
equal
to the Ownership Percentage Amount at any time through and including the period
that ends one (1) year
after the "reorganization" of Licensee as defined in the next following
sentence. For a
period ending one (1) year after the Reorganization (the "Period") (except as
provided in
subsection (3) following), Licensor shall maintain its Ownership Percentage
Amount on the
reorganization of Licensee, whether by exchange agreement, merger, consolidation
or any other form of recapitalization or restructure into or with a public
corporation (the
"Reorganization").
Licensee shall take all actions reasonably necessary to ensure that Licensor
maintains its Ownership Percentage Amount in Licensee at the
Reorganization date and throughout the Period; provided, however, that
after the expiration of the Period
Licensor shall be subject to
dilution of its Ownership Percentage Amount together with all other stockholders of
Licensee.

         

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

         

        (3)
Licensor
acknowledges that Licensee
and any public corporation with
which it may engage in a Reorganization will be
required to seek either or both of private and/or public financing. In such event,
Licensor's Ownership Percentage
Amount shall be subject to
dilution pro
rata with all other
shareholders, notwithstanding any language to the contrary in subsection
(a)
(2) of this Article
V.

         

        ARTICLE
VI - PURCHASE OF LICENSED PRODUCT; MANUFACTURE AND PURCHASE OF
PROTOTYPE AND MACHINES

         

        (a) As
provided in Article III (b), subject to Licensor's ability to manufacture
machines for Licensee, whether for the use of the Licensee
or for resale by the Licensee, Licensor shall have the exclusive right to
manufacture all machines to be sold to Licensee
or
Sublicensees under
this License Agreement. Licensor's right to manufacture the machines may
be exercised
by the
Licensor directly or via the outsourcing of such
manufacture to one or more subcontractors as Licensor shall determine in
its sole and
absolute discretion.

         

        (b) Contemporaneous
with the execution of this License Agreement, Licensee
shall place an order with Licensor for the manufacture of an initial
machine specifically
intended to be used on oil
shale. The Purchase Order for such machine shall be subject to
termination, as provided in Article II (b). The purchase price for such
initial machine shall be (1) the Licensor's Cost to Manufacture the Licensed
Product
plus (ii) twenty percent (20%) of the Licensor's Cost to manufacture
the
Licensed Product, plus (iii) such mutually
agreed amount for
research and development and testing, but not to exceed
Three Million Five Hundred Thousand Dollars ($3,500,000). Licensor
acknowledges that Licensee has
incurred various costs and expenses mutually
agreed to total Eight Hundred Forty Three Thousand Dollars ($843,000) in
preparation for this License Agreement and, accordingly, Licensor shall give
Licensee a credit of $843,000 against
the purchase price which shall be deducted from the final payment.
The
balance shall be
paid by
Licensee as follows:

         

        (i) $500,000 at the end of six (6)
months from the date of the Purchase
Order,

        (ii) $500,000
at the end of nine (9) months from the date of the
Purchase Order; and

        (iii) the balance, after the application of the
$843,000 credit, upon completion of the initial machine, demonstration that it meets
the warranted purpose, and acceptance by
Licensee.

         

        (c) The Purchase Order shall
be subject to the right of
Licensee to terminate the purchase order at the end of one hundred (180) days from the date of this License Agreement
as provided in
Article II (b).
Licensor's right to terminate shall he subject to Licensor's right to repurchase
this License Agreement and
retain the Existing Prototype Machine as further provided in Article II (b). Depending
upon the events that then
occur, the provisions of Articles II (c) and/or Article
shall be
applicable.

         

        (d) During
such period that Licensor shall have the exclusive right to
manufacture machines,
Licensee shall order all machines, whether for its own use or for
resale to Sublicensees,
from Licensor and shall pay to Licensor therefor a purchase price
determined as follows:

         

        (1) The Licensor's Cost to Manufacture
the Licensed
Product, and the lesser of

         

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

         

        (2)
either (i) fifty percent (50%) of the difference between the Licensor's Cost to
Manufacture the Licensed Product and the Licensor's actual sale price of the
Licensed Product to arm's length bona fide third party customers or (ii) twenty
percent (20%) of the Licensor's Cost to manufacture the Licensed
Product.

         

        All
revenues of
the Licensee from the sale or resale of the Licensed Products to a third
party above the total of (1) and (2) shall belong to the Licensee.

         

        Such
purchase price shall be paid by Licensee as follows:

         

        (i) one-third
upon placement of the order;

        (ii) one-third
upon completion by Licensor of fifty percent (50%) of the machine;
and

        (iii)
one-third upon completion of the machine, demonstration that it meets the
warranted purpose, and acceptance by Licensee.

         

        ARTICLE
VII - PATENT RIGHTS

         

        (a) Licensor
shall
upon request of Licensee advise Licensee as to the status of any patents
and patent applications within the Patent Rights and the Technology as applicable
or potentially applicable within the Licensed Field of Use.

         

        (b) In the event that
Licensor does not desire to file a particular patent application in the
Licensed Field of
Use or discontinues its responsibility for prosecution or maintenance of a
particular patent
application or applications or discontinues its responsibility for the
maintenance of a particular
patent in Patent Rights listed in Schedule A, Licensor shall
notify Licensee promptly in
writing of its intention and, in the case of
proposed discontinuances, at least sixty (60) days prior to the
effective date
thereof, in order
to permit Licensee to determine whether it wishes to assume the
responsibility therefor. Licensee shall have the
right and option, but not the obligation, to assume the
responsibility for filing, prosecution and maintenance of such patent
applications
and
patents therefor
which Licensor desires
not to prosecute or to
discontinue. Licensee
shall inform Licenser in writing
of
its decision to assume
the responsibility for filing, prosecution and maintenance of
such patent applications and patents, and Licensor
promptly execute
and deliver such
documents and take such actions as are reasonably necessary or
appropriate to assign such patent or patent application to Licensee and making
the inventor reasonably available to assist in the prosecution of any such
applications. Upon assignment of patent or patent application
to Licensee, said patent and/or patent application shall be removed from
the Patent Rights and no longer subject to this License Agreement.

         

        (c) Licensor shall
promptly inform Licensee in writing of any Patent Rights in the Licensed
Field of Use that were filed with a Patent Office or invented subsequent to the
effective date of this License Agreement. Licensor covenants that Patent Rights
in the Licensed Field of
Use that were filed with a Patent Office or invented subsequent to the
effective date of this License Agreement shall be included in their entirety
within the scope of this License Agreement upon the same terms and
conditions and without any additional payment or
alteration of the existing fixed
payments or royalties payable by Licensee to Licensor under this
Agreement.

         

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

         

        (d)
Licensor shall upon request of Licensee inform Licensee of the issuance of all
licenses
granted by it to other Licensees under any of the Patent Rights in the event
that any such licenses shall be legally required to be granted.

         

        ARTICLE
VIII - DEVELOPMENT AND
REGULATORY APPROVAL

         

        (a)
Licensor will develop the Licensed Product and the Licensed Process for
commercialization at Licensor's sole and complete expense including the
research, planning, development and
manufacture
of prototypes and finished product working models of all Licensed Product
using the Licensed Process
and the Technology to be sold to Licensee or any Sublicensee. Licensor
shall also be responsible for
all costs of obtaining all regulatory and
governmental permits and authorizations
as may
be required. (b) Licensee shall control the process for
obtaining marketing licenses
and approvals for the Licensed Product and the Licensed Process. Licensee
shall bear the
complete costs for obtaining the regulatory and
marketing approvals for the Licensed Product and
the Licensed Process including all costs arising out of or related to modifying
or altering any machine
after it has been manufactured to conform to said requirements. (c)
Licensor will in good faith participate in and provide necessary information,
and data which may be necessary for obtaining regulatory and/or marketing approvals
for the Licensed Product and the Licensed Process, and
Licensee
agrees
to reimburse Licensor for all
commercially reasonable expense incurred
by such participation; provided, however, that all regulatory licenses and
approvals that require
modifications to the prototypes or any existing Licensed Products shall
future be at the sole cost and expense of the Licensor.

         

        ARTICLE
IX - DILIGENCE

         

        (a) Licensor shall
use
commercially
reasonable efforts in
developing, testing, and manufacturing
Licensed Products. Licensee shall use commercially reasonable efforts in
promoting,
advertising and selling the Licensed Products and
the
Licensed Process under this
License Agreement and in seeking responsible Sublicensees.

         

        (b) Licensor
shall use reasonable efforts, at its expense, to prosecute any patent
applications
within the Licensed Field of Use, to obtain patents thereon and to
maintain any such patents.

         

        (c) Licensor
shall
use reasonable efforts to submit
to
the appropriate authority in the
United States and
overseas patent claims related to the Patent Rights. Licensor shall promptly
provide Licensee
with copies of all patents, patent applications and other filings and
any communications
with the applicable patent office, including without limitation, all office
actions
and responses related to the Patent
Rights. Licensee
shall have no obligation to contribute,
in whole or part, to the costs of preparing, filing, prosecuting, issuing,
defending or maintaining
the
patents and patent
applications under this Article IX (c), except
as
otherwise
provided
in Article VII (b).

         

        ARTICLE X - TERMINATION

         

        (a)
Upon any breach of or default under this License Agreement by License, Licensor
may terminate this
License Agreement by sixty (60) days' written notice to
Licensee specifying
in
reasonable detail the nature of the default. Said notice shall become effective
at the end of said period, unless during said period Licensee shall
substantially cure such breach or default.

         

        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

         

        (b) If the Licensor
dissolves, becomes insolvent or has a receiver appointed for all or any
part of its property, or makes
an assignment for the benefit of
creditors, or voluntarily commences or has filed
against it an involuntary proceeding under any bankruptcy or insolvency
laws which results in the
entry of an order for relief or which remains undismissed, undischarged
or unbonded for a period of 60 days or
more, and Licensee is unable to continue to use the license granted
hereunder for the Licensed Process or the Licensed Products, then (1) the Continuation
Application, the Patent Rights, the Technology and the Trademarks within
the Licensed Field of Use shall, ipso facto, and without any
additional documentation become the property of and ownership and title
shall vest in, the Licensee. In such a case, Licensee
shall, subject to
applicable federal bankruptcy and state insolvency laws, be permitted to
assume this
Agreement and to
perform
hereunder, and Licensor shall
cooperate in all respects and
furnish all assistance
reasonably necessary or required
to
enable Licensee to
continue to
obtain
the benefits of this License Agreement. Licensor hereby irrevocably
appoints Licensee as the Licensor's attorney-in-fact, with full authority in the
place and stead of Licensor and in the name of
Licensor or
otherwise, from time to time in Licensee's discretion, upon the Licensor's
failure or inability
to do
so, to take any action and
to execute any instrument and make any
filing with any regulatory authority or otherwise which Licensee may deem necessary
or advisable to accomplish the purposes of this Agreement,
including:

         

        (i) To
modify, in its sole
discretion, this License Agreement without first obtaining Licensor's approval of
or signature to such modification by amending the definitions of Patents, Patent Rights,
Technology and Trademarks hereof, as appropriate within the Licensed
Field of Use, to include
reference to any right, title or interest in any Patents, Patent Rights, Technology and Trademarks
acquired by Licensor after the execution hereof or to delete any reference to any right, title or interest in any
Patents,
Patent Rights, Technology
and Trademarks in which
Licensor no longer has or claims any right, title or interest;
and

         

        (ii) To file, in its sole discretion,
one or more financing or continuation statements
and amendments
thereto, or filings with
the U.S. Patent and Trademark Office or any similar foreign office performing a similar
function relative to any of the
foregoing without the
signature of
Licenser where permitted by law.

         

        ARTICLE
XI - ASSIGNMENT

         

        This
License Agreement shall not
be assigned by either party without the prior written consent of the other Party hereto;
provided, however, that a change of control of the Licensee, or its Reorganization with or into a
public company us provided in Article V, regardless of the form of the Reorganization, shall not
be deemed an assignment for purposes
of this License
Agreement.

         

        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

        

         

        ARTICLE
XII -
INFRINGEMENT

         

        (a) (i)
In the event that any legal proceeding shall be instituted or threatened against
Licensee or any of its Sublicenses involving any claim of infringement
relating to the development, manufacture, import,
use, purchase
or sale of a Licensed
Product, or Licensed
Process, Licensee
will
notify Licenser thereof.
Licensor
shall have thirty (30) days after receipt
of the
above-mentioned notice to undertake, conduct
and control,
through counsel of its own choosing (subject to the consent of Licensee,
such consent not to be
unreasonably withheld) and at its expense, the settlement or
defense thereof, and the Licensee shall cooperate with Licensor in connection
therewith; provided that (i) Licensor shall not thereby permit to exist
any lien, encumbrance or other adverse
charge upon any asset of Licensee; (ii) in the event it appears likely,
in the reasonable judgment of the
Licensee, that different defenses are available to the Licensee or that a
conflict of interest may arise between the Licensee and the Licensor with
respect to such claim, the Licensee shall choose its own counsel, and the
reasonable fees and expenses of such counsel shall be home by the Licensor;
(iii) in the event
it appears that no conflict of interest will arise between the Licensee
and the Licensor and the Licensee desires to choose its counsel, the Licensor
shall permit the Licensee to participate in such settlement or defense through
such counsel chosen by the
Licensee, provided that the
fees and expenses of such counsel shall be borne
by the Licensee; and (iv) the
Licensor shall agree promptly to reimburse
the Licensee for the full amount
of any loss resulting from such claim and all
related
expenses incurred by the Licensee. So long as the Licensor is reasonably
contesting any such claim in
good faith, the Licensee shall not pay or settle any such claim.
Notwithstanding the foregoing, and provided that no rights of Licensor
are thereby in any way compromised or infringed, the Licensee shall have
the right to pay or
settle any such claim, provided that in such event the Licensee shall
waive any right to indemnity, contribution or any other form of repayment
therefor (however described) by the Licensor, and reimburse the Licensor for any
payments made to the date of the
settlement. If the Licensor does not notify the Licensee within thirty
(30) days after receipt of the
Licensee's notice of a claim of indemnity hereunder that it elects to
undertake the defense thereof, the
Licensee or its Sublicensee shall have the right to contest, settle or
compromise the claim in the exercise of its exclusive discretion at the expense
of the Licensor, and the reasonable
costs and expenses (including but not
limited to reasonable attorneys' fees and expenses) incurred by them in
connection with the defense
of such claim, at the expense of Licensor.
Licensee shall bill Licensor monthly for all costs and expenses incurred
in the defense of any
such claim, and Licensor
shall promptly remit payment of all such bills to Licensee Licensor's
failure to make such payment shall be a material default under
this License Agreement. Licensor shall be entitled to participate
in any such suit or action with its own counsel at its own expense. In
the event of any claim under this Article XII, each of Licensor and Licensee
shall (1) fully cooperate with each other in connection with any
such claim, (2) on
reasonable notice have any of its employees, officers, directors, agents
and other representatives testify when necessary,
and (3) on reasonable notice make available to each other as necessary
all relevant records, specimens, samples
and other information in its possession at its own expense.

         

        (a) (ii) If,
as a result of any such claim described
in "(a)" above, Licensee or its Sublicensee is required by reason of an
order of a court, arbitration board or other similar body or by reason of a
settlement between the parties, to pay a royalty or make other similar payments
to a third party, on if as a result of such claim, Licensee or its Sublicensee
is obligated to pay damages
other than a royalty to a third party, Licensor shall be responsible for
all such damages,
and
shall defend, indemnify and hold harmless Licensee with respect
thereto.

         

        (b) Licensee,
as exclusive Licensee, shall
have the power, but not the obligation, to institute,
prosecute
and settle, at its own expense, suits for infringement of the Patent Rights
and/or
Licensed Process
within the Licensed Field of Use,
and if,
required
by
law, Licensor
will join
as parry
plaintiff
in
such suits. Licensee shall be entitled
to all recoveries
in such suits.

         

        
          
            
            

          

          
            11

            
              

            

          

          
            
            

          

        

         

        Licensor shall
(1)
fully cooperate with
Licensee in connection with
any such
proceeding, (2) on reasonable notice
have any of its employees, officers, directors, agents and other representatives
testify when
necessary, and (3) on reasonable notice make available to Licensee as accessary
all relevant records,
specimens, samples and other information in its possession all at commercially
reasonable
expense of Licensee.

         

        (c)
In the event
that Licensee
declines to pursue any claim of infringement
of
the Licensed Patents or Licensed Process brought to its attention by
Licensor within ninety (90) days following written notice from Licensor,
Licensor may thereafter, and at its sole cost and expense, pursue such
infringement independently of Licensee, and shall be entitled to retain
all resulting proceeds or recoveries.

         

        ARTICLE XIII -
GENERAL

         

        (a) This
License Agreement and the Security Agreement,
together with the Purchase Order, constitute the entire agreement between
the parties as to the Licensed Process, the Patent Rights, the Technology and
the Licensed Field of Use,
and all prior negotiations, representations, agreements
and understandings, written or oral, are merged into, extinguished by
and
completely expressed by it.

         

        (b) Any notice required or permitted to be
given by this License Agreement shall be
given by
personal delivery, prepaid
overnight courier, prepaid registered or certified mail addressed to: Licensor: Global Resource
Corporation, 408 Bloomfield Drive., Unit # 1 West Berlin, NJ 08091, and Licensee: Universal
Alternative Fuel, Inc., 1400 Old Country Road, Suite 206, Westbury, New York
11590.

         

        Such
addresses may be altered by notice so given.

         

        (c) This
License Agreement and its effect are
subject to and shall be construed and
enforced in accordance with the law of the State of New York without
giving
effect to
any applicable conflicts
of laws principles, except as to any issue which by the law of New York
depends
upon the validity, scope or enforceability of any patent
within the Patent Rights, which issue shall be determined in accordance
with the
applicable parent laws of the country of such patent.

         

        (d) Nothing
in
this License
Agreement shall be construed so as to require the commission of
any act contrary to law,
and wherever there is any
conflict between any provision of this License
Agreement or concerning the
legal
right of the parties
to
contract and
any statute, law, ordinance
or treaty, the latter shall prevail, but in such event the affected provisions
of this License
Agreement shall be curtailed and limited only to the extent necessary
to
bring it within the
applicable
legal requirements.

         

        (e)
Licensee agrees to take all reasonable
and necessary steps
to register this License Agreement
in any country, other than the United States of America, where such is required
to permit
the transfer of funds and/or payment of royalties to Licensee hereunder
or
is
otherwise required
by the government
or
law of such country to effectuate or carry out this License
Agreement.

         

        
          
            
            

          

          
            12

            
              

            

          

          
            
            

          

        

         

        (f) It shall
be the full and sole responsibility of Licensor to use appropriate care in the
manufacture of any Licensed Product.

         

        (g) Licensor
shall be required to provide Licensee, at no additional cost, with all know-how,
data, software operating programs, trade secrets, proprietary information or
operating instructions or other
information with respect to any such Licensed Process or Licensed
Product.

         

        (h) Licensee
agrees to indemnify and hold harmless Licensor from and against any
and all claims, damages and liabilities asserted
by third parties (whether governmental or private) arising from
Licensee's and Sublicensee's practice of any Licensed Process or Use or Sale of
any Licensed Product or the use thereof by any third party unless any such
claim, damage or liability arises
in whole or in part from the willful recklessness, negligence or breach
of an obligation under
this License Agreement.

         

        (i) As used
in this License Agreement, singular includes the plural and plural includes the
singular, wherever so required by the context. The headings appearing at the
beginning of the numbered Articles
hereof have been inserted for convenience
only and do not constitute a part of this License Agreement.

         

        (j) The Licensee will maintain or cause
to be maintained, with financially sound and
reputable
insurers, appropriate products liability insurance with respect to
Licensed Products and Licensed Process in the Licensed Field of Use
against loss or damage of the kinds
customarily carried or maintained by corporations of established reputation
engaged in similar businesses.

         

        ARTICLE
XIV - EXTENSION OF PATENT RIGHTS

         

        (a) Licensor
shall seek any extension that is available or that becomes available in
respect of the term of any patent within the Patent Rights including
any patent
that may issue on a
patent application
within the Patent Rights.

         

        (b) Upon
request Licensee shall reasonably cooperate with Licensor in
seeking any extension that is available or that becomes available with
respect to the term of any patent within the
Patent Rights including any patent
that may issue on a patent application within the Patent
Rights.

         

        (c) Licensee
shall advise Licensor of any governmental approval to use or market Licensed
Products or to practice Licensed Process or any other governmental approval
obtained by or on behalf of Licensee or a Sublicensee that is material to any
such extension, and
Licensee shall supply Licensor with any pertinent
information and data in its possession or that
is in the possession of any Sublicensee.

         

        (d) Licensee shall supply Licensor with
material information and data required to comply with 35 USC §156 Extension of Patent
Term (and any successor legislation) and any administrative rules or regulation
thereunder or required to comply with any corresponding laws and regulations that are or shall be in
effect in any country within the Patent Rights. Licensee
shall
require its Sublicensees to comply with this Article XIV, and each sublicensing
agreement
shall
include a clause essentially like this Article XIV.

         

        
          
            
            

          

          
            13

            
              

            

          

          
            
            

          

        

         

        ARTICLE
XV - EFFECTIVE DATE AND TERM

         

        This
License Agreement shall become effective on the day and year first above written
and shall, unless terminated earlier by one of the parties in accord with its
terms, expire concurrently with the expiration, invalidation or lapsing of all
issued patents within the Patent Rights and/or the abandonment of pending patent
applications within the Patent Rights.

         

        ARTICLE
XVI - CONFIDENTIALITY

         

        The
Parties agree that each shall hold in confidence and refrain from disclosing to
others or using, in any activities other than those directly related to this
Agreement, information
which may be disclosed to each other which is marked "Confidential"
including this License Agreement. The Parties agree that each shall hold in
confidence and refrain from disclosing to others or using, in any activities
other than
those directly related to this Agreement, information that has been
disclosed to each other during the negotiation of this License Agreement that
either Party indicated was confidential at the time of disclosure to the other
Party. Such confidential information shall be disclosed in
writing, or if first communicated orally, confirmed in writing within
thirty (30) days of initial disclosure except with respect to confidential
information disclosed to each
other during the negotiation of this
License Agreement,
which shall be confirmed in
writing ten (10) days from the signing by
such Party of this License Agreement.
Without limiting the foregoing in any way, the Parties assume these
obligations in connection with information bearing on
the subject matter
of
this Agreement, including, but not limited to,
corporate business
plans and goals related hereto and the terms and conditions of this
License Agreement. The
provisions of the paragraph do not encompass information of the following
character:

         

        (i) information
which at the time of disclosure to the party was or is generally known or which
later becomes known to others by publication or voluntary
disclosure;

        (ii) information
which was already in the
party's possession
at the time of disclosure to such party; or

        (iii) information
which is available to the party from a source other than the other party which
did not in the party's knowledge
have as its source for the information any company or individual bound to
secrecy by the other party; or

        (iv) information
which the Licensor or the Licensee is required to disclose in connection
with compliance with
federal and state securities or similar disclosure laws applicable to
either of them, or as may be required in connection with any capital raising
activities of either Party. The provisions of this Article supersede any previous agreement or
confidentiality entered into by the parties, and shall
survive termination or expiration of this Agreement.

         

        ARTICLE
XVII
-  JURISDICTION
AND VENUE; WAIVER OF JURY TRIAL

         

        (a)
Each Party hereto hereby irrevocably submits to the jurisdiction of any federal
or state
court sitting in the
City, County and State of New York, in any action or proceeding arising
out
of or relating to this
License Agreement, and each hereby irrevocably agrees that all claims
in
respect of such
action or proceeding may be heard and determined in any such federal
or
state
court.
Licensor accepts for itself and
in
respect of its property, generally
and unconditionally
the jurisdiction
and
venue of
the aforesaid courts. Licensor irrevocably consents
to
the service of
process
of any of the aforementioned courts in
any such action or proceeding by the mailing of copies
thereof by registered or certified mail, postage prepaid, to Licensor at its
address set forth in the first paragraph provided that the Licensee may serve
process in any other manner permitted by law. Each party hereto hereby
irrevocably waives any venue objection it may have to any such action or
proceeding arising out of or relating to this License
Agreement in any such venue
and
any objection on the grounds that any such action or proceeding in any
such court
has been
brought in any inconvenient forum. Nothing
herein shall affect the right or
any party hereto to
bring any action or proceeding against another party in
the courts of other jurisdictions.

         

        
          
            
            

          

          
            14

            
              

            

          

          
            
            

          

        

         

        (b) EACH PARTY
HEREBY WAIVES IRREVOCABLY ANY AND ALL RIGHT TO TRIAL BY JURY IN
ANY ACTION OR PROCEEDING ARISING OUT OF, RELATED TO OR IN
CONNECTION WITH THIS LICENSE AGREEMENT, AND THE ENFORCEMENT
THEREOF, WHETHER ALLEGED IN TORT, CONTRACT OR OTHERWISE AND
WHETHER ASSERTED
AS A CLAIM, COUNTERCLAIM, THIRD-PARTY
CLAIM OR IN ANY OTHER FORM.

         

        ARTICLE
XVIII -
REPRESENTATIONS AND WARRANTIES

         

        (a)
Licensor represents and warrants to Licensee as
of
the Effective Date, that:

         

        (i)
Licensor has the right and the ability to license the Patent Rights, the
Technology
and the
Trademarks to Licensee;

         

        (ii) to
the extent any Patent Rights are issued as of the Effective Date, such Patent
Rights are valid and enforceable, and with respect to Patent Rights for which an
application has been filed,
Licensor is not aware of any reason why such Patent Rights will not issue
into a
patent or will not be valid and enforceable;

         

        (iii) the
Patent Rights
and the development, manufacture, import, export,
offer to sell,
use, distribution, licensing and sale of Licensed Products using the
Patent Rights or the Technology do not or will not interfere or infringe on any
intellectual
property rights owned
or possessed by any third party, nor would the use of the Patent Rights
or the
Technology
render Licensee Liable to a
third
party
for patent infringement.
Licensor is not aware of any
third party having superior rights that could reasonably be expected to
prevent Licensee from fulfilling its covenants and obligations
herein;

         

        (iv) there
are no claims, judgments, pending or threatened claims or litigation,
or
settlements
against or owed
by Licensor or pending or threatened claims or litigation relating
to Patent Rights or Technology and Licensor does not know of any
reason for
such claims, judgments, settlements, or pending or threatened claims or
litigation;

         

        (v) Licensor
has no knowledge of any circumstances that would adversely affect the
commercial utility
of the Patent
Rights or the Technology within the
scope of the licenses
granted under this License Agreement;

         

        (vi) Licensor
owns all
right, title and interest in and to each of the Patent Rights listed on
Schedule
A free from all claims, encumbrances, mortgages, liens, taxes, pledges,
and similar defects of any kind; and

         

        (vii) All
necessary
registration, maintenance and renewal fees in connection with 15
the
Patent Rights, the Technology and the Trademarks (and applications therefor)
have been paid and all necessary documents and certificates in connection with
such property have been
filed and all other necessary actions have been taken with the relevant
patent, copyright, trademark or other authorities in the United States or
foreign jurisdictions, as the case may be,
for the purposes of maintaining such property (and applications
therefor).

         

        
          
            
            

          

          
            15

            
              

            

          

          
            
            

          

        

         

        (b)
The Parties individually represent and warrant to each other that:

         

        (i) this
License Agreement has been duly executed and delivered by each of them and
constitutes the legal, valid and binding obligation of each of them enforceable
in accordance with its terms; and

         

        (ii) the
execution, delivery and performance by each of them of this License Agreement
have been duly authorized by all requisite corporate action and have not and will
not violate any provision of law or regulation, any
order, judgment., ruling,
writ, injunction, award or decree of
any court or other agency of government,
the Certificate of Incorporation or the By-Laws of such Party or any
provision of any indenture, agreement or other instrument to which they
are hound, or conflict with, result in a breach of or constitute (with due
notice of lapse of time or both) a default under any such indenture, agreement
or other instrument, or result in the creation or imposition of any lien,
charge, restriction, claim or encumbrance of any nature whatsoever upon any of
its properties or assets.

         

        IN
WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals
and duly executed this License Agreement on the date(s) indicated below,
to be effective the day and year first above written.

        
        

         

        
          	 	
                  GLOBAL
      RESOURCE CORPORATION

                   

                  By:
      /s/ Peter A.
      Worthington

                  Peter
      A. Worthington, Chairman and CEO

                   

                   

                  UNIVERSAL ALTERNATIVE FUELS, INC.

                   

                  By:
      /s/ Greg
      Goldberg

                  Greg
      Goldberg, President

                

        

         

        
          
            
            

          

          
            16

            
              

            

          

          
            
            

          

        

         

        Schedule
A —
CONTINUATION APPLICATION FOR OIL SHALE AND COAL

         

         

         

         

         

         

         

         

         

         

        
          
            
            

          

          
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            18

            
              

            

          

          
            
            

          

        

         

        Privacy
Act Statement

         

        The Privacy Act of 1974 (P.L. 93-579)
requires that you be given certain information in connection with your
submission of the attached form related to a patent application or patent.
Accordingly, pursuant to the requirements of the Act, please be advised that:
(1) the general authority for the collection of this information is 35 U.S.C.
2(b)(2); (2) furnishing of the information solicited is voluntary; and (3) the
principal purpose for which the information is used by the U.S. Patent and
Trademark Office is to process and/or examine your submission related to a
patent application or patent. If you do not furnish the requested information,
the U.S. Patent and Trademark Office may not be able to process and/or examine
your submission, which may result in termination of proceedings or abandonment
of the application or expiration of the patent.

         

        The
information provided by you in this form will be subject to the following
routine uses:

         

        
          	
                  1.

                	
                  The
      information on this form will be treated confidentially to the extent
      allowed under the Freedom of Information Act (5 U.S.C. 552) and the
      Privacy Act (5 U.S.0 552a). Records from this system of records may be
      disclosed to the Department of Justice to determine whether disclosure of
      these records is required by the Freedom of Information
    Act.

                

        

        
          	
                  2.

                	
                  A
      record from this system of records may be disclosed, as a routine use, in
      the course of presenting evidence to a court, magistrate, or
      administrative tribunal, including disclosures to opposing counsel in the
      course of settlement negotiations.

                

        

        
          	
                  3.

                	
                  A
      record in this system of records may be disclosed, as a routine use, to a
      Member of Congress submitting a request involving an individual, to whom
      the record pertains, when the individual has requested assistance from the
      Member with respect to the subject matter of the
  record.

                

        

        
          	
                  4.

                	
                  A
      record in this system of records may be disclosed, as a routine use, to a
      contractor of the Agency having need for the information in order to
      perform a contract. Recipients of information shall be required to comply
      with the requirements of the Privacy Act of 1974, as amended, pursuant to
      5 U.S.C. 552a(m).

                

        

        
          	
                  5.

                	
                  A
      record related to an International Application filed under the Patent
      Cooperation Treaty in this system of records may be disclosed, as a
      routine use, to the International Bureau of the World Intellectual
      Property Organization, pursuant to the Patent Cooperation
      Treaty.

                

        

        
          	
                  6.

                	
                  A
      record in this system of records may be disclosed, as a routine use, to
      another federal agency for purposes of National Security review (35 U.S.C.
      181) and for review pursuant to the Atomic Energy Act (42 U.S.C.
      218(c)).

                

        

        
          	
                  7.

                	
                  A
      record from this system of records may be disclosed, as a routine use, to
      the Administrator, General Services, or his/her designee, during an
      inspection of records conducted by GSA as part of that agency's
      responsibility to recommend improvements in records management practices
      and programs, under authority of 44 U.S.C. 2904 and 2906. Such disclosure
      shall be made in accordance with the GSA regulations governing inspection
      of records for this purpose, and any other relevant (i.e.,
      GSA or Commerce) directive. Such disclosure shall not be used to
      make determinations about
individuals.

                

        

        
          	
                  8.

                	
                  A
      record from this system of records may be disclosed, as a routine use, to
      the public after either publication of the application pursuant to 35
      U.S.C. 122(b) or issuance of a patent pursuant to 35 U.S.C. 151. Further,
      a record may be disclosed, subject to the limitations of 37 CFR 1.14, as a
      routine use, to the public if the record was filed in an application which
      became abandoned or in which the proceedings were terminated and which
      application is referenced by either a published application, an
      application open to public inspection or an issued
  patent.

                

        

        
          	
                  9.

                	
                  A
      record from this system of records may be disclosed, as a routine use, to
      a Federal, State, or local law enforcement agency, if the USPTO becomes
      aware of a violation or potential violation of law or
      regulation.

                

        

         

        
          
            
            

          

          
            19

            
              

            

          

          
            
            

          

        

         

         

        

         

         

         

         

        
          
            
            

          

          
            20

            
              

            

          

          
            
            

          

        

         

         

        

         

         

         

        
          
            
            

          

          
            21

            
              

            

          

          
            
            

          

        

         

         

         

        

         

         

         

         

         

        
          
            
            

          

          
            22

            
              

            

          

          
            
            

          

        

         

         

         

        

         

         

         

         

        
          
            
            

          

          
            23

            
              

            

          

          
            
            

          

        

         

         

        Privacy
Act Statement

         

        
          	
                  The
      Privacy Act of 1974 (P.L. 93-579) requires that you be given certain
      information in connection with your submission of the attached form
      related to a patent application or patent Accordingly, pursuant to the
      requirements of the Act, please be advised that: (1) the general authority
      for the collection of this information Is 35 U.S.C. 2(b)(2); (2)
      furnishing of the information solicited is voluntary; and (3) the
      principal purpose for which the Information is used by the U.S. Patent and
      Trademark Office is to process and/or examine your submission related to a
      patent application or patent If you do not furnish the requested
      information, the U.S. Patent and Trademark Office may not be able to
      process and/or examine your submission, which may result in termination of
      proceedings or abandonment of the application or expiration of the
      patent

                   

                  The
      information provided by you in this form will be subject to the following
      routine uses:

                   

                  1. The
      information on this form will be treated confidentially to the extent
      allowed under the Freedom of Information Act (5 U.S.C. 552) and
      the Privacy Act (5 U.S.C. 552a). Records from this system of records may
      be disclosed to the Department of Justice to determine whether the Freedom
      of Information Act requires disclosure of these records.

                   

                  2. A
      record from this system of records may be disclosed, as a routine use, in
      the course of presenting evidence to a court, magistrate, or administrative
      tribunal, including disclosures to opposing counsel In the course of
      settlement negotiations.

                   

                  3. A
      record in this system of records may be disclosed, as a routine use, to a
      Member of Congress submitting a request involving an individual,
      to whom the record pertains, when the individual has requested assistance
      from the Member with respect to the subject matter of the
      record.

                   

                  4. A
      record in this system of records may be disclosed, as a routine use, to a
      contractor of the Agency having need for the information in order
      to perform a contract Recipients of information shall be required to
      comply with the requirements of the Privacy Act of 1974, as amended,
      pursuant to 5 U.S.C. 552a(m).

                   

                  5. A
      record related to an International Application filed under the Patent
      Cooperation Treaty in this system of records may be disclosed,
      as
      a routine use, to the International Bureau of the World Intellectual
      Property Organization, pursuant to the Patent Cooperation
      Treaty.

                   

                  6. A
      record in this system of records may be disclosed, as a routine use, to
      another federal agency for purposes of National Security review
      (35 U.S.C. 181) and for review pursuant to the Atomic Energy Act (42
      U.S.C. 218(c)).

                   

                  7. A
      record from this system of records may be disclosed, as a routine use, to
      the Administrator, General Services, or his/her designee, during
      an inspection of records conducted by GSA as part of that agency's
      responsibility to recommend improvements in records management practices
      and programs, under authority of 44 U.S.C. 2904 and 2906. Such disclosure
      shall be made in accordance with the GSA regulations governing inspection
      of records for this purpose, and any other relevant (i.e., GSA or
      Commerce) directive. Such disclosure shall not be used to make
      determinations about individuals.

                   

                  8. A
      record from this system of records may be disclosed, as a routine use, to
      the public after either publication of the application pursuant
      to
      35 U.S.C. 122(b) or issuance of a patent pursuant to 35 U.S.C. 151.
      Further, a record may be disclosed, subject to the limitations of 37 CFR
      1.14, as a routine use, to the public if the record was filed in an
      application which became abandoned or in which the proceedings were
      terminated and which application is referenced by either a published
      application, an application open to public inspections or an issued
      patent.

                   

                  9.A
      record from this system of records may be disclosed, as a routine use, to
      a Federal, State, or local law enforcement agency, if the USPTO
      becomes aware of a violation or potential violation of law or
      regulation.

                

        

         

        
          
            
            

          

          
            24

            
              

            

          

          
            
            

          

        

         

        IN
THE UNITED STATES PATENT AND TRADEMARK OFFICE

         

        In Re
Application of:

         

        Frank G.
Pringle; Carl Everleigh; Julian

         

        For
the

         

        For:
MICROWAVE PROCESSING OF OIL SHALE AND COAL

         

        Commissioner
for Patents P.O. Box 1450

        Alexandria,
VA 22313-1450

        Sir:

         

        AUTHORIZATION
TO TREAT A REPLY AS INCORPORATING AN EXTENSION OF TIME
UNDER C.F.R. §1.136(a)(3)

         

        The
Commissioner is hereby requested to grant an extension of time for the
appropriate length of time, should one be necessary, in connection with this
filing or any future filing submitted to the U.S. Patent and Trademark Office in
the above-identified application during the pendency of this application. The
Commissioner is further authorized to charge any fees related to any such
extension of time to Deposit Account No. 23-3050.

        
        

         

        
          	Date: October 2,
      2009	/s/ Jeffrey H. Rosedale 

                  Jeffrey
      H. Rosedale

                  Registration
      No. 46,018

                

        

         

         

         

         

         

         

        
          
            
            

          

          
            25

            
              

            

          

          
            
            

          

        

         

        MICROWAVE
PROCESSING OF OIL SHALE AND COAL

         

        CROSS-REFERENCE
TO RELATED APPLICATIONS

         

        [0001] This application is a
continuation application of U.S. Patent Application No. 11/610,823,
"Microwave-Based Recovery of Hydrocarbons and Fossil Fuels", filed December 14,
2006, now allowed, which claims the benefit of U.S. Provisional Patent
Application No. 60/750,098, "Method for Using Microwave Radiation", filed
December 14, 2005, the entirety of each application is incorporated by reference
herein.

         

        FIELD
OF THE INVENTION

         

        [0002] The present invention
relates to methods and apparatuses for using microwave radiation and more
particularly, to methods and apparatuses for decomposing compositions comprising
petroleum-based materials.

         

        BACKGROUND
OF THE INVENTION

         

        [0003] Petroleum-based
materials are integral to the world's economy and demand for such fuels and
consumer products is increasing. As the demand rises, there is a need to
efficiently and economically extract petroleum-based materials to fulfill that
demand. As such, it would be advantageous to not only be able to extract
petroleum-based materials from the earth, but to also recycle consumer products
to recapture those petroleum-based materials.

         

        [0004] Worldwide oil
consumption is estimated at seventy-three million barrels per day and growing.
Thus, there is a need for sufficient oil supplies. Tar sands, oil sands, oil
shales, oil cuttings, and slurry oil contain large quantities of oil, however,
extraction of oil from these materials is costly and time-consuming and
generally does not yield sufficient quantities of usable oil.

         

        [0005] Soil contaminated with
petroleum products is an environmental hazard, yet decontamination of
petroleum-tainted soil is time-consuming and expensive.

         

        [0006] Furthermore, it has
been estimated that 280 million gallons of oil-based products such as plastics
go into landfills each day in the United States. It would be desirable to
recapture and recycle the raw materials of these products.

         

        
          
            
            

          

          
            26

            
              

            

          

          
            
            

          

        

         

        [0007]
Scrap vehicle tires are a significant problem worldwide and their
disposal presents significant environmental and safety hazards, including fires,
overflowing landfills, and atmospheric pollution. While there are a number of
existing applications for these tires, including tire-derived fuels, road
construction, and rubber products, these applications are insufficient to
dispose of all the available scrap tires. The major components of tires are
steel, carbon black, and hydrocarbon gases and oils, which are commercially
desirable. As such, it is advantageous to develop processes for the recovery of
these products from scrap vehicles tires. Prior art methods of decomposing scrap
vehicle tires do not produce commercial-grade carbon black and require high
temperatures and extended exposure times for recovery of the hydrocarbon
components.

         

        [0008]
Efforts to recycle tires using microwave technology has been described in
U.S. Patent Nos. 5,507,927 and 5,877,395 to Emery. Efforts to recover petroleum
from petroleum-impregnated media has been described in U.S. Patent Nos.
4,817,711 and 4,912,971 to Jeambey. Efforts to decompose plastics using
microwave radiation has been described in U.S. Patent No. 5,084,140 to Holland.
The prior work has involved the use of single-frequency microwave radiation.
Single-frequency microwave radiation is a slow process that does not provide
uniform heating. Moreover, single-frequency microwave radiation typically
results in arcing on metal components.

         

        [0009]
Thus, there is a need for methods and apparatuses for the recycling of
petroleum-based compositions and for the recovery of petroleum-based materials
from composites containing petroleum-based materials. The invention is directed
to these and other important needs.

         

        SUMMARY
OF THE INVENTION

         

        [0010]
The present invention provides methods for decomposing compositions
comprising carbon-based materials comprising subjecting the compositions to
microwave radiation for a time sufficient to at least partially decompose the
composition, wherein the microwave radiation comprises at least one frequency
component in the range of from about 4 GHz to about 18 GHz.

         

        [0011]
The present invention provides methods for decomposing compositions
comprising petroleum-based materials comprising subjecting the compositions to
microwave radiation for a time sufficient to at least partially decompose the
composition, wherein the microwave radiation comprises at least one frequency
component in the range of from about 4 GHz to about 18 GHz.

         

        
          
            
            

          

          
            27

            
              

            

          

          
            
            

          

        

         

        [0012] The present invention
further provides methods for recovery of petroleum-based materials from
composites comprising those petroleum-based materials. The methods of the
present invention include subjecting the composite to microwave radiation for a
time sufficient to extract the petroleum-based material, wherein the microwave
radiation comprises at least one frequency component in the range of from about
4 GHz to about 18 GHz.

         

        [0013] The present invention
also provides for products produced by the methods of the present
invention.

         

        [0014] The present invention
additionally provides apparatuses for decomposing compositions comprising
petroleum-based materials. The apparatuses of the present invention comprise a
microwave radiation generator, wherein the generator is capable of applying
microwave radiation characterized as having at least one frequency component in
the range of from 4 GHz to about 18 GHz, and at least one container to collect
decomposed components from the compositions. The present invention further
provides apparatuses for extracting petroleum-based materials from composites
comprising the petroleum-based material. These apparatuses comprise a microwave
radiation generator, wherein the generator is capable of applying microwave
radiation characterized as having at least one frequency component in the range
of from 4 GHz to about 18 GHz, and at least one container to collect decomposed
components from the composite.

         

        [0015] The general description
and the following detailed description are exemplary and explanatory only and
are not restrictive of the invention, as defined in the appended claims. Other
aspects of the present invention will be apparent to those skilled in the art in
view of the detailed description of the invention as provided
herein.

         

        BRIEF
DESCRIPTION OF THE DRAWINGS

         

        [0016] The summary, as well as
the following detailed description, is further understood when read in
conjunction with the appended drawings. For the purpose of illustrating the
invention, there are shown in the drawings exemplary embodiments of the
invention; however, the invention is not limited to the specific methods,
compositions, and devices disclosed. In addition, the drawings are not
necessarily drawn to scale. In the drawings:

         

        [0017] FIGs. 1A — 1G
illustrate an embodiment of the present invention directed to processing
tire cuttings using microwaves to recover fuel oil;

         

        [0018] FIG. 2A is an elevation
view, axial direction, of a microwave reactor suitable for processing oil
cuttings according to an aspect of the present invention;

         

        [0019] FIG. 213 illustrates an
elevation view of the microwave reactor of FIG. 2A, longitudinal
direction;

         

        
          
            
            

          

          
            28

            
              

            

          

          
            
            

          

        

         

        [0020] FIG.2C illustrates an
elevation view of the microwave device and control room suitable
for generating microwaves and propagating the same through
waveguides;

         

        [0021] FIGs. 3A - 3B
illustrate several embodiments of the present invention for extracting
petroleum-based materials from oil slurry;

         

        [0022] FIG. 4A illustrates an
elevation view of a microwave reactor system suitable for processing shale rock,
tar sands, drill cuttings, and the like;

         

        [0023] FIG. 4B provides a plan
view of FIG.
4A;

         

        [0024] FIG. 5A is an
illustration of one embodiment of the present invention for extracting
petroleum-based materials from heavy oil contained in oil wells;

         

        [0025] FIG. 5B
is an illustration of one
embodiment of the present invention for extracting petroleum-based materials
from oil shale, in
situ;

         

        [0026] FIG. 6 is an
illustration of one embodiment of the present invention for extracting
petroleum-based materials from tar sands, oil sands and shale rock;

         

        [0027] FIG. 7 is an schematic
of one embodiment of the present invention for decomposing vehicle
tires;

         

        [0028] FIG. 8A is a plan view
of an oil platform incorporating a drill cuttings microwave processing
unit;

         

        [0029] FIG. 8B illustrates an
elevation view of the oil platform in FIG. 8A;

         

        [0030] FIG. 8C illustrates a
vertical and horizontal configurations of the drill cuttings microwave
processing unit suitable for use in the oil platform illustrated in FIG. 8A;

         

        [0031] FIG. 9A is a depiction
of an electron microscope photograph of carbon black produced
by the method of the present invention;

         

        [0032] FIG. 9B is a depiction
of an electron microscope photograph of carbon black produced by the method of
the present invention;

         

        [0033] FIG. 9C is a depiction
of an electron microscope photograph of carbon black produced by the method of
the present invention; and

         

        [0034] FIGs. 10A-10E
illustrate an additional embodiment of a drum reactor system for
processing materials containing hydrocarbons.

         

        DETAILED
DESCRIPTION OF ILLUSTRATIVE EMBODIMENTS

         

        [0035] The present invention
may be understood more readily by reference to the following
detailed description taken in connection with the accompanying figures and
examples, which
form a part of this disclosure. It is to be understood that this invention is
not limited to the specific
devices, methods, applications, conditions or parameters described and/or shown
herein, and that
the terminology used herein is for the purpose of describing particular
embodiments by way of
example only and is not intended to be limiting of the claimed invention. Also,
as used in the specification including the appended claims, the singular forms
"a," "an," and "the" include the plural, and reference to a particular numerical
value includes at least that particular value, unless the context clearly
dictates otherwise. The term "plurality", as used herein, means more than one.
When a range of values is expressed, another embodiment includes from the one
particular value and/or to the other particular value. Similarly, when values
are expressed as approximations, by use of the antecedent "about," it will be
understood that the particular value forms another embodiment. All ranges are
inclusive and combinable.

         

        
          
            
            

          

          
            29

            
              

            

          

          
            
            

          

        

         

        [0036]
It is to be appreciated that certain features of the invention which are,
for clarity, described herein in the context of separate embodiments, may also
be provided in combination in a single embodiment. Conversely, various features
of the invention that are, for brevity, described in the context of a single
embodiment, may also be provided separately or in any subcombination. Further,
reference to values stated in ranges include each and every value within that
range.

         

        [0037]
"Sweeping," as the term is used herein, is defined as the application of
a plurality of radiation frequencies over a period of time.

         

        [0038]
"Pulsing," as used herein, means subjecting the composition to microwave
radiation for a period of time, followed by periods of time wherein the
composition is not subjected to microwave radiation.

         

        [0039]
"Oil," as used herein, means any hydrocarbon or petroleum-based
oil.

         

        [0040]
"Gas," as used herein, includes any hydrocarbon-based material that is in
the gaseous state at atmospheric temperature and pressure and includes, but is
not limited to, methane, ethane, propane, butane, isobutene, or mixtures
thereof.

         

        [0041]
"Carbon black," as used herein, includes any grade of
commercially-acceptable carbon black, including, but not limited to, rubber
black.

         

        [0042]
"Oil sands," also known as "tar sands," are deposits of bitumen, a heavy
black viscous oil.

         

        [0043]
"Oil shale" is sedimentary rock containing a high proportion of Kerogen,
which, when heated, can be converted into oil.

         

        [0044]
"Slurry oil" is refinery waste oil.

         

        [0045]
"Oil cuttings" are the waste product generated during the drilling of oil
wells. Examples of oiI cuttings include, but are not limited to, bits and pieces
of oil-soaked soil and rock.

         

        [0046]
"Hydrocarbons" are compositions that comprise carbon and
hydrogen.

         

        
          
            
            

          

          
            30

            
              

            

          

          
            
            

          

        

         

        [0047] "Carbon-based" refers to matter that
comprises carbon.

         

        [0048] "Decompose" and "decomposing" refers to
a process whereby matter is broken down to smaller constituents. For example,
solids can be broken down into particles, liquids, vapors, gases, or any
combination thereof; rubbery materials can be broken down into liquids, vapors,
gases, or any combination thereof; viscous liquids can be broken down to lower
viscosity liquids, vapors, gases, or any combination thereof; liquids can be
broken down to vapors, gases, or any combination thereof; composite materials
comprising inorganic solids and trapped organic matter can be broken down to
inorganic solids and released organic vapors and gases, and the
like.

         

        [0049] 1 Torr = 1
mm Hg = 1 millimeter mercury.

         

        [0050] Methods for decomposing compositions
comprising petroleum-based materials are set forth herein. The compositions used
in the present invention contemplate any composition comprised of
petroleum-based, carbon-based and various hydrocarbon materials. The
petroleum-based materials may be present in the composition in amounts ranging
from about 1% to 100%, by weight, based on the weight of the composition.
Preferably, the composition is a vehicle tire. In other embodiments, the
composition comprises plastic, which includes, but is not limited to ethylene
(co)polymer, propylene (co)polymer, styrene (co)polymer, butadiene (co)polymer,
polyvinyl chloride, polyvinyl acetate, polycarbonate, polyethylene
terephthalate, (meth)acrylic (co)polymer, or a mixture thereof. A variety of
natural and synthetic resins and rubbers can also be decomposed according to the
methods described herein. Various carbon-based materials that can also be
processed according to the inventions described herein include coal, such as
anthracite coal and bituminous coal.

         

        [0051]
In one embodiment, the composition is subjected to microwave radiation
for a time sufficient to at least partially decompose the composition. The
microwave radiation can be in the range of from about 4.0 and about 12.0 GHz.
Other ranges can also be used, for example, in the range of from about 4 GHz to
about 18 GHz, and more preferably in the range of from about 12 GHz to about
18
GHz. For example, coal can be processed at frequencies in the range of
from about 4 GHz to about 18
GHz, and more preferably in the range of from about 12 GHz to about 18
GHz.

         

        [0052]
In one embodiment, the composition is subjected to one or more
pre-selected microwave radiation frequencies. Preferably, the pre-selected
microwave radiation frequency will be the resonating microwave frequency, i.e,
the microwave radiation frequency at which the composition absorbs a maximum
amount of microwave radiation. It has been determined that different
compositions of the present invention will absorb more or less microwave
radiation, depending
on the frequency of the microwave radiation applied. It has also been determined
that the frequency at which maximum microwave radiation is absorbed differs by
composition. By using methods known in the art, a composition of the present
invention can be subjected to different frequencies of microwave radiation and
the relative amounts of microwave radiation absorbed can be determined.
Preferably, the microwave radiation selected is the frequency that comparatively
results in the greatest amount of microwave radiation absorption. In one
embodiment, microwave radiation frequency resulting in a comparative maximum
absorption of microwave radiation by the compositions of the present invention
is in the range of from about 4.0 and about 12.0 GHz. In others, particularly
with respect to vehicle tires, the microwave radiation frequency resulting in a
comparative maximum absorption of microwave radiation by the compositions of the
present invention is in the range of from about 4.0 and about 7.2 GHz.
In yet
others, the microwave radiation frequency resulting in a comparative maximum
absorption of microwave radiation by the compositions of the present invention
is in the range of from about 4.0 and about 6.0 GHz.

         

        
          
            
            

          

          
            31

            
              

            

          

          
            
            

          

        

         

        [0053]
The present invention also provides methods for subjecting a composition
to a sweeping range of microwave radiation frequencies for a time sufficient to
at least partially decompose the composition. Preferably, variable frequency
microwave ("VFM") is used to sweep the compositions. VFM is described in U.S.
Patent No. 5,321,222 to Bible, et al. and U.S. Patent No. 5,521,360 to Johnson,
et al., incorporated herein by reference in their entireties. Unlike single
frequency microwave radiation, VFM produces a bandwidth of microwave radiation
frequencies that are applied sequentially to the composition. Consequentially,
the field distribution with VFM is substantially more uniform than the field
distribution of single microwave frequency radiation. The more uniform field
distribution of VFM produces fewer hot spots, resulting in more uniform heating
of the composition. Moreover, generally, no single frequency is applied for
longer than about 25 p.s. The short duration of each applied frequency produces
no build-up of charge, thus eliminating discharge, or arcing, typically observed
during single frequency microwave irradiation.

         

        [0054] In some embodiments, particularly with
respect to vehicle tires, the range of microwave radiation frequencies swept is
in the range of from about 4.0 GHz to about 12.0 GHz. In certain embodiments,
the range of microwave radiation frequencies swept is in the range of from about
5.8 GHz to about 7.0 GHz. In still others, the range of microwave radiation
frequencies swept is in the range of from about 7.9 GHz and 8.7 GHz. In some
embodiments, range of microwave radiation frequencies is in the C-Band frequency
range, the C-Band frequency range encompassing microwave frequencies in the
range of from about 4.0 GHz to about 8.0
GHz. In other embodiments, the range of microwave radiation frequencies is in
the X- Band frequency range, the X-band frequency range encompassing microwave
frequencies in the range of from about 8.0 GI-Iz to about 12.0 GHz.

         

        [0055] Preferably, the
sweeping of the range of microwave radiation frequencies encompasses a
pre-selected, resonating microwave radiation frequency characterized as having
at least one frequency component in the range of from about 4.0 GHz to about
12.0 GElz. This frequency can be selected by using the methods described herein
and techniques known in the art. Preferably, the bandwidth of the sweeping range
of microwave radiation is about 4.0 GHz. More preferably, the range of microwave
frequencies with which the composition is swept, is about +1- 2 GHz of the
pre-selected microwave radiation frequency. For example, if the pre­selected
microwave radiation frequency is 7.2 GHz, the composition would be swept with
the range of microwave radiation frequencies encompassing from about 5.2 to
about 9.2 GHz. The microwave frequencies can also be swept at about +1- 1.5 GHz,
or even +/- 1.0 GHz, or even +1­0.5 GHz of the preselected microwave
frequency.

         

        [0056] Upon decomposition of
the compositions subjected to the methods and apparatuses of the invention,
flammable hydrocarbon-based gases are released. To reduce the risk of ignition,
it is preferred that the method be performed in an oxygen-deprived atmosphere.
Preferably, the composition is exposed to less than about 12% oxygen. More
preferably, the composition is exposed to less than about 8% oxygen. Even more
preferably, the composition is exposed to less than about 5%
oxygen.

         

        
          
            
            

          

          
            32

            
              

            

          

          
            
            

          

        

         

        [0057] In one embodiment, the
composition is exposed an inert gas atmosphere. Preferably, the inert gas is
nitrogen, argon, or mixtures thereof.

         

        [0058] In some embodiments,
the composition is exposed to less than atmospheric pressure. Preferably, the
composition is exposed to less than about 40 Ton.
More preferably, the composition is exposed to less than about 20 Ton.
Even more preferably, the composition is exposed to less than about 5 Torr.
Without being bound by any particular thery or operation, it is believed that
operating at sub-atmospheric pressures helps to recover hydrocarbon-based gases
and prevents over-heating.

         

        [0059] In one embodiment, the
composition of the present invention forms a vehicle tire. Using the methods of
the present invention, the tire can be decomposed to produce at least one of
oil, gas, steel, sulfur, and carbon black.

         

        [0060] Over-exposure to
microwave radiation and over-heating of the composition of the present invention
may result in the recovery of non-commercially-acceptable carbon black.
Controlling the temperature of the composition during microwave irradiation
prevents such over exposure
and over-heating to produce commercially-acceptable carbon black. Preferably,
the temperature of the composition does not exceed about 700 °F. More
preferably, the temperature of the composition does not exceed about 500 °F.
Even more preferably, the temperature of the composition does not exceed about
465 °F.

         

        [0061]
In one embodiment, the temperature of the composition can be controlled
while performing the method of the present invention by pulsing the microwave
radiation subjection. For example, microwave radiation can be applied until the
composition temperature reaches about 465 °F, at which time, the application of
microwave radiation can be stopped for a time sufficient for the composition to
cool between about 5 to 25 degrees. Once the composition has cooled, the
application of microwave radiation can be resumed. This process can be repeated,
as necessary, until the composition is sufficiently decomposed.

         

        [0062]
Decomposition products obtained from the compositions using the methods
of the present invention may be refined and/or purified using techniques known
in the art.

         

        [0063]
The present invention also provides methods for extracting
petroleum-based materials from composites comprising the petroleum-based
materials by subjecting the composites to microwave radiation for a time
sufficient to extract the petroleum-based material. Preferably, the microwave
radiation is in the range of from about 4.0 and about 12.0 GHz.

         

        [0064]
The composites are any material comprising petroleum-based materials,
including, but not limited to, at least one of oil sands, oil shale, slurry oil,
oil cuttings, and soil or sand contaminated with petroleum-based materials. As
used herein, "composites" also includes, but is not limited to, oil
wells.

         

        
          
            
            

          

          
            33

            
              

            

          

          
            
            

          

        

         

        [0065]
In one embodiment, the composite is subjected to oneor more pre-selected
microwave radiation frequencies. Preferably, the pre-selected microwave
radiation frequency will be the resonating microwave frequency, i.e, the
microwave radiation frequency at which the composite absorbs a maximum amount of
microwave radiation. It has been determined that different composites of the
present invention will absorb more or less microwave radiation, depending on the
frequency of the microwave radiation applied. It has also been determined that
the frequency at which maximum microwave radiation is absorbed differs by
composite. By using methods known in the art, a composite of the present
invention can be subjected to different frequencies of microwave radiation and
the relative amounts of microwave radiation absorbed can be determined.
Preferably, the microwave radiation selected is the frequency that comparatively
results in the greatest amount of microwave radiation absorption. In one
embodiment, microwave radiation frequency resulting in a comparative maximum
absorption of microwave radiation by the composite of the present invention is
in the range of from about 4.0 and about
12.0 GHz. In others, the microwave radiation frequency resulting in a
comparative maximum absorption of microwave radiation by the composite of the
present invention is in the range of from about7.9 and about 12.0 GHz. In yet
others, the microwave radiation frequency resulting in a comparative maximum
absorption of microwave radiation by the composite of the present invention is
in the range of from about 7.9 and about 8.7 GHz.

         

        [0066]
The present invention also provides methods for recovery of
petroleum-based materials from composites comprising those petroleum-based
materials, by subjecting the composite to a sweeping range of microwave
radiation frequencies for a time sufficient to extract the petroleum-based
material, and wherein the range of frequencies of the microwave radiation is in
the range of from about 4.0 GHz to about 12.0 GHz. The composites are any
material comprising petroleum-based materials, including, but not limited to, at
least one of oil sands, oil shale, slurry oil, oil cuttings and soil or sand
contaminated with petroleum-based materials.

         

        [0067]
Preferably, variable frequency microwave ("VFM") is used to sweep the
composites. VFM is described in U.S. Patent No. 5,321,222 to Bible, et al. and
U.S. Patent No. 5,521,360 to Johnson, et al., incorporated herein by reference
in their entireties. Unlike single frequency microwave radiation, VFM produces a
bandwidth of microwave radiation frequencies that are applied sequentially to
the composite. Consequentially, the field distribution with VFM is substantially
more uniform than the field distribution of single microwave frequency
radiation. The more uniform field distribution of VFM produces fewer hot spots,
resulting in more uniform heating of the composite. Moreover, generally, no
single frequency is applied for longer than about 25 usr, or no longer than
about 20 us,
or no longer than about 15us, or even no longer than about 10 us. The
short duration of each applied frequency produces no build-up of charge, thus
eliminating discharge, or arcing, typically observed during single frequency
microwave irradiation.

         

        [0068]
In certain embodiments, the range of microwave radiation frequencies is
in the range of from about 7.9 GHz to about 12.0 GHz. In still others, the range
of microwave radiation frequencies is in the range of from about 7.9 GHz and 8.7
GHz. In some embodiments, range of microwave radiation frequencies is in the
C-Band frequency range, the C-Band frequency range encompassing microwave
frequencies in the range of from about 4.0 GHz to about 8.0 GHz. In other
embodiments, the range of microwave radiation frequencies is in the X- Band
frequency range, the X-band frequency range encompassing microwave frequencies
in the range of from about 8.0 GHz to about 12.0 GHz.

         

        
          
            
            

          

          
            34

            
              

            

          

          
            
            

          

        

         

        [0069]
Preferably, the sweeping of the range of microwave radiation frequencies
encompasses one or more pre-selected microwave radiation frequencies in the
range of from about 4.0
GHz to about 12.0 GHz. This frequency can be selected by using the methods
described herein and techniques known in the art. In one embodiment, the
pre-selected microwave radiation frequency is in the range of from about 7.9 and
about 8.7 GHz. In other
embodiments, the bandwidth of the sweeping range of microwave radiation is about
4.0 GHz. More preferably, the range of microwave frequencies with which the
composition is swept, is about +/- 2 GHz of the pre-selected microwave radiation
frequency. For example, if the pre­selected microwave radiation frequency is
7.2 GHz, the composition would be swept with the range of microwave radiation
frequencies encompassing from about 5.2 to about 9.2 GHz.

         

        [0070] Upon
extraction, flammable hydrocarbon-based gases are released. To reduce the risk
of ignition, it is preferred that the method be performed in an oxygen-deprived
atmosphere. Preferably, the composite is exposed to less than about 12% oxygen.
More preferably, the composite is exposed to less than about 8% oxygen. Even
more preferably, the composite is exposed to less than about 5%
oxygen.

         

        [0071] In one
embodiment, the composite is exposed to an inert gas atmosphere. Preferably, the
inert gas is nitrogen, argon, or mixtures thereof.

         

        [0072] In
some embodiments, the composite is exposed to less than atmospheric pressure.
Preferably, the composite is exposed to less than about 40 Torr. More
preferably, the composite is exposed to less than about 20 Torn Even more
preferably, the composite is exposed to less than about 5 Torr.

         

        [0073] In one
embodiment, the composite is subjected to microwave radiation sufficient to heat
the petroleum-based material to its boiling point temperature. Boiling point
temperatures of petroleum-based materials are known in the art. Reducing the
pressure at which the composite is exposed will result in a decrease in the
boiling point temperature of the petroleum-based material. Those of skill in the
art will be able to determine the boiling point temperatures of petroleum-based
materials at different pressures.

         

        [00741 In
some embodiments, the methods of the present invention may be used in
situ to extract petroleum-based materials from composites located in the
field. In
other embodiments, inert gases may be flowed, in
situ, onto the composites. In one embodiment, the pressure surrounding
the composite may be reduced to below atmospheric pressure.

         

        [0075] Using
the methods of the present invention, oil and/or gases can be recovered from the
composite.

         

        [0076] The
petroleum-based material extracted using the methods of the present invention
may be refined and/or purified using techniques known in the art.

         

        [0077] The present invention also provides for
apparatuses for decomposing a composition comprising a petroleum-based material.
In one embodiment, the apparatuses of the present invention comprise a microwave
radiation generator, wherein the generator is capable of applying microwave
radiation characterized as having at least one frequency component in the range
of from about 4.0 and about 12.0 GHz, and at least one container to collect
decomposed components from the composition. In one embodiment, the microwave
radiation generator is capable of applying a microwave radiation frequency
between about 4.0 and about 12.0 GHz.

         

        
          
            
            

          

          
            35

            
              

            

          

          
            
            

          

        

         

        [0078] In other embodiments, the apparatuses of
the present invention comprise a microwave radiation generator, wherein the
generator is capable of applying a sweeping range of frequencies of microwave
radiation characterized as having at least one frequency component in the range
of from about 4.0 GHz to about 12.0 GHz, and at least one container to collect
decomposed components from the composition. In other embodiments, microwave
radiation generator is capable of applying sweeping microwave radiation in the
C-Band frequency range. In yet other embodiments, microwave radiation generator
is capable of applying sweeping microwave radiation in the X-Band frequency
range. In yet other embodiments, microwave radiation generator is capable of
applying sweeping microwave radiation in the Ku-Band frequency range (about 12
GHz to about 18 GHz). In further embodiments, the microwave radiation generator
is capable of applying sweeping microwave radiation in the range of about 5.8
GHz to about 7.0 GHz. In yet other embodiments, the microwave radiation
generator is capable of applying sweeping microwave radiation in the range of
about 7.9 GHz to about 8.7 GHz.

         

        [0079] In another embodiment, the chamber is
open to the outside atmospheric conditions. In other embodiments, the chamber is
closed to the outside atmosphere. In yet other embodiments, the chamber has an
internal pressure of less than atmospheric pressure. Preferably, the chamber is
capable of operating at a pressure of less than about 40 Torr. More preferably,
the chamber is capable of operating at a pressure of less than about 20 Ton.
Even more preferably, the chamber is capable of operating a pressure of less
than about 5 Ton.

         

        [0080]
The present invention also provides for apparatuses for extracting a
petroleum- based material from a composite comprising the petroleum-based
material. In one embodiment, the apparatuses of the present invention comprise a
microwave radiation generator, wherein the generator is capable of applying
microwave radiation characterized as having at least one frequency component in
the range of from about 4.0 GHz to about 12.0 GHz, and at least one container to
collect the extracted petroleum-based material. In some embodiments, the
microwave radiation generator is capable of applying a microwave radiation
frequency of characterized
as having at least one frequency component in the range of from about 4.0 and
about 12.0 GI-lz.

         

        [0081] In other embodiments,
the apparatuses of the present invention comprise a microwave radiation
generator, wherein the generator is capable of applying a sweeping range of
frequencies of microwave radiation characterized as having at least one
frequency component in the range of from about 4.0 GHz to about 12.0 GHz, and at
least one container to collect the extracted petroleum-based material. In some
embodiments, the microwave radiation generator is capable of applying sweeping
microwave radiation in the C-Band frequency range. In yet other embodiments,
microwave radiation generator is capable of applying sweeping microwave
radiation in the X-Band frequency range. In further embodiments, the microwave
radiation generator is capable of applying sweeping microwave radiation in the
range of about 5.8 GHz to about 7.0 GHz. In yet other embodiments, the microwave
radiation generator is capable of applying sweeping microwave radiation in the
range of about 7.9 GHz to about 8.7 GHz.

         

        [0082] In some embodiments,
the apparatuses of the present invention may be used in
situ to extracted petroleum-based materials from composites located in
the field.

         

        
          
            
            

          

          
            36

            
              

            

          

          
            
            

          

        

         

        [0083] In other embodiments,
the apparatuses further comprise at least one chamber for holding the composite.
In another embodiment, the chamber is open to the outside atmospheric
conditions. In other embodiments, the chamber is closed to the outside
atmosphere. In yet other embodiments, the chamber has an internal pressure of
less than atmospheric pressure. Preferably,
the chamber is capable of operating at a pressure of less than about 40 Torr.
More preferably, the chamber is capable of operating at a pressure of less than
about 20 Ton.
Even more preferably, the chamber is capable of operating at a pressure
of less than about 5 Torr.

         

        [0084] In other embodiments,
the apparatuses further comprise at least one chamber for holding the
composition. The volume of the compositions of the present invention may reduce
during decomposition. In some embodiments, the chamber may have a conveyor
having a perforated bottom such that decomposed materials may fall out of the
chamber once reaching a particular size, so as not to over-expose the materials
to microwave radiation. The conveyor may be adapted to be
oscillated.

         

        [0085] An exemplary embodiment
of the present invention is depicted in FIGS. IA- 1G. Figures 1A-1G demonstrates one
apparatus wherein tire fragments are placed on a first conveyor belt that
carries the tire pieces through three, differently-sized chambers of the
apparatus. In a first chamber, the tire pieces are exposed to microwave
radiation using the methods described herein. As the tire fragments decompose,
the smaller pieces will fall through perforations in the first conveyor and drop
to a second conveyor. The second conveyor is not exposed
to microwave radiation in the first chamber. The second conveyor carries the
pieces to a second
chamber, wherein they are exposed to microwave radiation using the methods
described herein. As the pieces decompose, the smaller pieces fall through the
perforations in the second conveyor to a third conveyor. The perforations in the
second conveyor are smaller than the perforations in the first conveyor. The
third conveyor is not exposed to microwave radiation in the second chamber. The
third conveyor carries the pieces to a third chamber, wherein they are exposed
to microwave radiation using the methods described herein. As the pieces
decompose, the smaller pieces fall through the perforations in the third
conveyor to a fourth conveyor. The perforations in the third conveyor are
smaller than the perforations in the second conveyor. Decomposition will be
essentially complete after exposure in the third chamber and the material
remaining on the fourth conveyor will be mainly steel, carbon black, and ash,
which can be further processed using techniques known in the
art.

         

        
          
            
            

          

          
            37

            
              

            

          

          
            
            

          

        

      

      

      [0086]
FIG. 1 comprises FIGS.
1A-1F, along with inset FIG.
1G. The orientation of
FIGs.
IA through FIG.
IF arc set forth in the inset in FIG.
1. Referring to FIGs.
lA - 1G, there is provided an embodiment of the present invention
directed to processing tire cuttings using microwaves to recover fuel oil. The
processing equipment described herein is commercially available from one or more
process equipment manufacturing companies.

       

      [0087]
FIG. IA illustrates an elevation view of the beginning section of a tire
cuttings plant layout according to an aspect of the present invention. This
illustration shows two tire processing lines side-by-side in a parallel
configuration. Tires from automobiles and trucks are first cut into suitable
chips, e.g., 4 x 4 or 5 x 5 chips (not shown). The tire chips are transported
using incline belt conveyor 120 to accumulation silos 102. The tire chips are
then conveyed from the accumulation silos 102 to a pre-washer screw wash section
122. Tire chips are then conveyed to a pressure washer hot water sonic washer
105. Dirt, stones, gravel and other debris is cleaned off of the tire chips to
minimize contamination of the process further downstream. The tire chips are
then dried using forced air dryer system 106. FIG.
IB is a plan view of the beginning section of a tire cuttings plant
layout corresponding to FIG.
1A. Cleaned and dried tire chips are then conveyed up another conveyor
120, as set forth in FIGs.
1C and 1D,
below.

       

      [0088]
FIG. 1C is an elevation view of the midsection of the tire cuttings plant
layout described here. Cleaned and dried chips are transported to accumulation
silo 112, which are then transported along transport conveyor 120 to microwave
room 124. The details of the microwave room 124 or further described in FIG.
1G below. In this elevation view, a dual wall tank with enclosed high
high-capacity heat exchanger 118 is shown in dotted lines. This high- capacity
heat exchanger receives hydrocarbon vapor produced by the microwave
reactors

       

      
        
          
          

        

        
          38

          
            

          

        

        
          
          

        

      

      

      residing
within the microwave room 124. The position of the dual wall tank with enclosed
high- capacity heat exchanger 118 is illustrated further in FIG. 1D.

      

      [0089] FIG. ID is a plan view
of the midsection of the tire cuttings plant layout described here. Accumulation
silos 112 feed tire chips via incline belt conveyor 120 and screw feed in-feed
section 117 to a series of microwave reactors within hermetically sealed reactor
room 116 with filtration system and vacuum pumps. Tire chips in the screw feed
in-feed section 117 are fed into a first microwave reactor 150 (see FIG. 1G) residing within the
microwave room 116. The microwave room is depicted in FIG. ID containing two sets of
microwave reactors side-by-side. Additional microwave reactors and additional
lines can also be added. Hydrocarbon vapors generated in the microwave reactors
from the irradiated tire chips are collected out of the top of each of the
microwave reactors. The hydrocarbon vapors are then transported, under vacuum
(e.g. at a pressure less than ambient) to heat exchanger 118. The heat exchanger
is capable of further separating hydrocarbon vapors to oil and high carbon gases
by cooling to a liquid or a vapor, depending on the vaporization temperature of
the hydrocarbon vapors.

       

      [0090] The microwave reactor
room 116 is also depicted having refrigeration equipment 123 for maintaining
constant room temperature. Processed tire chips exit the microwave reactor 154
(Fig. 1G) by a screw
feed discharge section 115. Processed tire chips exit the final microwave room
hot and are subsequently cooled using cooler 114. The cooled processed tire
chips (below about 110°F) then enter a pregrader grinder system 113, where
processed carbon containing materials are separated from metallic materials
(e.g., metal tire cords). Metal materials are separated using a suitable
magnetic conveyor take away system, as shown in 121 in FIGs. lE and 1F. Organic particles (e.g.
carbon black) can further be shipped to bulk feed trucks equipped to handle fine
particles, other packaging, as well as rail cars. The resulting organic
particles are composed primarily of carbon. In some embodiments, the organic
particles can be used as electronic activators, as described
herein.

       

      [0091] FIGs. 1E and 1F illustrate the magnetic
conveyor take away system 121 for separating metal particles from nonmagnetic
organic matter. Metal is stored in a metal storage unit 140 while nonmagnetic
organic matter (e.g., carbon particles) is transported via incline belt conveyor
120 to silo and grinder 130. Carbon particles prepared according to the
processes of the present invention are suitable for use as electron activators
for the microwave processing of heavy residual refinery oil and other materials
(e.g., residual oil from the bottom of a hydrocarbon distillation apparatus that
is traditionally unable to be further processed). In one embodiment, the tire
sidewalls can be separated from the tire treads. Tire treads typically have
a

       

      
        
          
          

        

        
          39

          
            

          

        

        
          
          

        

      

      

      greater
amount of carbon black than the sidewalls. Accordingly, the amount of carbon
black recovered from the treads is greater than that of the sidewalls. In one
aspect, carbon black can be accumulated to form electron activator by processing
the treads. Electron activator that can be further used in processing heavy
viscous oil feedstocks. Also present is a sifter system with grinder return 111
for preparing controlled particle size carbon material. The matter in the silo
and grinder 130 is transported by a pneumatic tube conveyor system 119 and
auxiliary pump 136 toward sifter 132, and then to sorter 134, and finally to a
super sack gantry system 138. The super sack entry system 109 is suitable for
loading and unloading using forklift delivery. Also shown is electrical
enclosure 108 containing control panels, a centrifugal feeder/sorter system 110
for managing fine particles.

      

      [0092]
As shown in FIGs.
1D and 1G,
the microwave reactor room contains two series of three reactors each
(one series is illustrated in FIG.
1G). Tire pieces enter first reactor 150 via screw feed infeed section
117. This reactor is the largest reactor of the series. 4 x 4 or 5 x 5 inch tire
chips are first exposed to microwaves in the first reactor 150 by operation of
the microwave antennas
in the first microwave chamber 160. In this first stage, the tire pieces "pop"
or explode into smaller pieces when exposed to the microwaves. The smaller
pieces are separated through a mesh belt 170, and then transported onto another
transportation mesh belt 172. The mesh is designed to keep the microwaves in the
first reactor from getting through and over heating the tire chips. Typically,
the temperature of the tire chips is maintained at about 465°F or less. The mesh
size in the larger reactor will have an opening of approximately 2 inches, the
mesh size in the midsized reactor is approximately 0.5 inches, and the mesh size
opening for the smallest reactor is approximately 1/16".

       

      [0093]
Microwaves are generally generated outside of the microwave room and
transported into the microwave room by a suitable microwave conduit, e.g.
stainless steel wire. The design and interconnection of the three microwave
reactors in series is provided so that the location of the tire chips in the
microwave radiation zone is maintained so that the tire chips do not exceed
465°F. Initially, "popping" of the tire begins in the first reactor 150 when the
temperature of the tire chips is in the range of from about 300°F to about
450°F. It has been surprisingly found that once the temperature exceeds about
450°F, the carbon black residing within the tires can be charred and overcooked
and the efficiency of the process for recovering hydrocarbon fuel oils
diminishes drastically. Accordingly temperature is desirably maintained below
about 465°F, or even below about 550°F. Without being bound by any particular
theory of operation, it appears that the tire chips pop because the reactors are
under vacuum and a lot of gas within the tire chips is being released suddenly
upon irradiation with microwaves.

       

      
        
          
          

        

        
          40

          
            

          

        

        
          
          

        

      

       

      [0094] Suitable operating
pressures are the range of up to about 20 mm of mercury, or even up to about 40
mm of mercury, or even up to about 100 mm of mercury. Accordingly, tire chips
processed in the first microwave reactor 150 are then transported to the second
microwave reactor 152, where the processed chips are further irradiated under
vacuum using microwave antennas
162. The tire chips are further reduced in size, and fall through mesh 174, and
then transported to the third microwave reactor 154. In the third microwave
reactor 154, the processed
chips are further irradiated using microwave antenna 164. Processed chips are
finally transported by a screw feed discharge section 118 and exit the microwave
reactors from screw feed discharge section 166, and through airlock (not shown)
and onto conveyor 156.

       

      [0095] Each of the microwave
reactors are fed with microwave conduits terminating in a suitable cone or
nozzle. The first microwave reactor has more microwave nozzles 160 as it is
larger than the other two microwave reactors. The second microwave reactor is
shown with microwave nozzles 162, and the third microwave reactor is shown with
microwave nozzles 164. Each of the microwave reactors contains vacuum lines 180
to transport the resulting hydrocarbon gases to the high-capacity heat exchanger
118 (shown in dotted lines). Also shown in the microwave room 124 are
refrigeration equipment 123 to maintain the temperature of the ambient
conditions in the microwave room, and support structures 158 for supporting the
microwave reactors.

       

      [0096] Suitable microwave
ranges for the processing of tire chips includes using X-band microwave
radiation generators (not shown) transmitted via conduit in tubes at various
frequencies to each of the reactors. Microwave frequencies for tire processing
varies from X-band down towards C-Band radiation. X-band is 5.2 to 10.9 GHz;
C-band is 3.9 to 6.2 GHz. K-band radiation is also useful in some embodiments.
K-band is 10.9 GHz to 35 GHz, which includes the sub-bands Ku (15.35 GHz to
17.25 GHz) and Ka (33.0 GHz to 36.0 GHz). Typically separate microwave antenna
tubes are separated in frequency by approximately 0.2 gigahertz. In the
embodiment shown in FIG. 1G, a total of approximately 36 microwave antenna tubes
are transported from a microwave source (not shown) to the microwave reactors.
The largest microwave reactor 150 has the greatest number of tubes, for example
about 18. The second microwave reactor 152 has fewer tubes, approximately 12.
The third microwave reactor 154 has the fewest number of tubes, approximately
60. Each of the tubes are capable of operating at different frequencies, which
frequencies in certain preferred embodiments varies between about 7.0 and 6.4
GHz. The ends of the microwave antenna from which the microwave radiation exits
into the reactor chambers are fitted with a suitable cone antenna. Each of the
cone antennae emits microwave radiation at a separate frequency, which is
typically about 0.2 GHz

      

      
        
          
          

        

        
          41

          
            

          

        

        
          
          

        

      

      

      different
than the others that irradiate into each of the microwave reactors. Microwaves
are typically fixed in frequency but they may also be capable of being swept in
a varying frequency manner, for example, by using a variable frequency microwave
generator. A number of different frequency combinations are envisioned, for
example each of the cone antennas may be fixed in frequency, vary in frequency,
or any combination thereof. As the tire chips are irradiated, volatile
hydrocarbon vapors are emitted from the tire chips and collected by vacuum
tubing. Hydrocarbon vapors are then transported to a heat exchanger condenser.
Highly volatile gases and vapors that are not conveniently liquefied can be
separately recovered as a high BTU gas product.

      

      [0097]
The plant layout described in FIGS.
1A-1G is operated at a product speed (per line) of approximately 30 tires
per minute on average. Hourly production rate is approximately 36000 pounds per
hour or approximately 1300 ft.3 per hour. This
is based upon a used automobile tire weight of approximately 20 pounds (9.1 kg).
Or alternatively a used truck tire about 40 pounds (18.2 kg). The shredded tire
chip sizes can be in the range of from about 3 to about 5 inches. Average loose
density of the chips is approximately 24 pounds per cubic foot to about 33
pounds per cubic foot. Heat values generated at atmospheric pressure range from
approximately 12,000 BTUs per pound to about 15,000
BTUs per pound.

       

      [0098]
FIG. 2A is an elevation view, axial direction, of a microwave reactor
suitable for processing oil cuttings according to an aspect of the present
invention, Oil cuttings comprise dirt, rock, water, carbon deposits, and the
like, which oil cuttings are obtained during drilling operations. Drilling
operations include drilling from an oil rig, drilling from a deep-sea oil
platform, as well as mining of shale rock and coal deposits. During drilling,
rock that is rich in hydrocarbons is typically reached prior to hitting a pocket
of oil. This hydrocarbon rich rock is transported up to the surface and can
comprise up to 15% oil, and even up to 25% oil. The consistency can also be
similar to oil shale. Hydrocarbon rich rock can be considered hazardous waste
and would need to be disposed of properly. It cannot be sent to a landfill, and
accordingly it has traditionally been handled by combustion. This is
particularly a problem on an oil rig in the middle of the ocean, where it may be
forbidden to dump oil drillings comprising greater than 1% hydrocarbon content.
Accordingly, the process of the present invention can also be used to recover
hydrocarbons from drill cuttings, thereby permitting the drill cuttings to be
placed back in the environment after the hydrocarbons have been substantially
removed. As used herein the term "substantially removed" refers to a composition
comprising less than 1% by weight hydrocarbon content. Oil drill cuttings having
less than 0.01% by weight hydrocarbon has been produced using the processes
described herein. Accordingly, the methods suitably provide drill

       

      
        
          
          

        

        
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      cuttings
that comprise less than 1 percent, or even less than 0.5 percent, or even less
than 0.2 percent, or even less than 0.1 percent, or even less than 0.05 percent,
or even less than 0.02 percent, or even less than 0.01 percent by weight hydrocarbons
based on weight oil cuttings. Suitable oil cuttings enter into the system
through in-feed grinder system 201. Oil cuttings are ground to a suitable size,
then fed into the microwave reactor chamber (vacuum sealed reactor tank 216) via
in feed screw 202. The vacuum sealed reactor tank 216 contains a helical mixer
element 203 for mixing and stirring the ground oil cuttings. The reactor tank is
typically filled to about 40% of its total volume. The microwaves irradiate the
contents of the reactor via antennas that are oriented in an orbital arrangement
emanating from the top of the reactor. The microwave antennas are desirably
flexible and irradiate from several slides from the top the reactor towards the
mixing material below. A helical mixer element is turned using a motor 210.
Microwaves emanating from a cone antenna or a plurality of cone antennas (not
shown) irradiate the oil cuttings with suitable microwave radiation. Hydrocarbon
gases and oil vapor exit towards the top vacuum tubing towards vacuum pump and
collected in a suitable heat exchanger vapor condensing unit. Hydrocarbon vapor
gases produced by the process of irradiating the oil cuttings with microwaves
exit via a vacuum discharge tube (not shown). Residual geologic material and
unreacted carbon deposits settled towards the bottom of the reactor. The
unvaporized matter is discharged from the microwave reactor 216 via screw feed
discharge section 204, and exits the system via discharge system 206. Material
exiting the system is suitably clean of hydrocarbons so as to be considered
nonhazardous waste. For example, material exiting the reactor can be returned to
the ocean after drilling, or can be returned to the land after drilling. Also
shown is reactor support structure 205 for holding the components as set forth
in the system.

      

      [0099] FIG. 2B illustrates an
elevation view of the microwave reactor of FIG. 2A, longitudinal
direction. Oil cuttings are added to the system as in-feed via an airlock at
201, which oil cuttings are then transported to the reactor 216 via in-feed
screw 202. Depicted in this diagram is conduit 214 for pulling vacuum on the
airlock, and on the vacuum sealed reactor tank 216, using vacuum pumps 207.
Microwave waveguides 212 are shown entering the vacuum sealed reactor tank 216.
Microwaves emanating from a suitable microwave cone antenna radiates the oil
cuttings within the reactor tank. A helical mixer element 203 rotates to mix the
oil cuttings, convey the oil cuttings, and reflects microwaves throughout the
volume of the chamber. After suitable microwave processing at a particular
residence time, the reacted oil cuttings exits the reactor through screw feed
discharge section 204 and exits via a suitable airlock 206 of the discharge
system. Also shown is reactor support structure 205.

       

      
        
          
          

        

        
          43

          
            

          

        

        
          
          

        

      

       

      [0100] FIG. 2C
illustrates an elevation view of the microwave device and control room
suitable for generating microwaves and propagating the same through waveguides.
The microwave device and control room 208 is depicted as comprising an
electrical panel and a series of six individual microwave generators (222, 226,
230, 234, 238, and 242) each connected to a series of microwave antennas (220,
224, 228, 232, 236, and 240). The antennas are combined into a combined antenna
conduit 212 which exits the microwave device control room 208 and leads towards
the vacuum sealed reactor tank 216 as shown in FIG. 2B.
Suitable microwaves for processing oil drill cuttings have frequencies in
the range of about 11.2 to about 11.8 GHz, typically about 11.5 GHz. Oil shale
can also be processed using the equipment and processes described herein at a
microwave frequency in the range of from about 10.6 to about 11.2 GHz, and
typically about 10.9 GHz. Tar sands can be appropriately processed using
microwaves 4 to about 12 GHz. Tar sands can also be processed in the K-band,
preferably in the Ku band. Anthracite coal deposits can also be processed in the
KU band as well. A vacuum is maintained within the microwave reactor chamber
using suitable vacuum and hydrocarbon vapor condensation equipment, for example
at pressures less than about 100 mm of mercury, and even at pressures of less
than about 40 mm of mercury, or even at pressures of less than about 20 mm of
mercury. Maintaining such low operating pressures helps to keep the overall
process temperatures below about 465°F or even a temperatures less than about
450°F so as to prevent overheating and efficient recovery of hydrocarbon vapors.
A large proportion of the hydrocarbon vapors can be condensed into liquid fuel
oil at ambient temperatures.

       

      [0101] The
system described in FIGs. 2A-2C
can be suitably adapted and scaled to process oil cuttings at a
throughput of up to about 2 tons per hour to even up to about 10 tons per hour.
It should be readily apparent to the skilled person how to increase the size and
power of the microwave reactor chamber to yield higher throughputs.

       

      [0102] The
system described in FIGs. 2A-2C
can also be suitably adapted in scale to process oil shale rock. The
processing of oil shale rock includes irradiating it with suitable microwaves at
power sufficient to increase the temperature of the oil shale rock to within a
range of from about 500°C to about 600°C. Without being bound by any theory of
operation, it is believed that these processing temperatures are considerably
hotter than compared to tire cuttings for the reason that more energy needs to
be applied to the rocks to volatile lies the hydrocarbons. This is in contrast
to softer, substantially higher concentration hydrocarbon, tires that readily
absorb the microwave energy. Suitable shale rocks are broken down into small
pieces after being mined For example, shale rock pieces are suitably smaller
than an inch cube, even smaller than a half inch cube, or even smaller than
about 3/8" cube, even smaller than about a

       

      
        
          
          

        

        
          44

          
            

          

        

        
          
          

        

      

       

      half inch
cube, or even smaller than about 1/4" cube. The hydrocarbon content of the oil
shale rock typically comprises hydrocarbons comprising from about CIO to about
C25, or even from about CM to about C22. Oil shale rock can contain up to about
5% by weight hydrocarbons, or even up to about 15% by weight hydrocarbons, or
even up to about 25% by weight hydrocarbons. In some cases, shale rock can
contain up to about 70% by weight hydrocarbons.

      

      [0103] FIGs. 3A and 3B depicts several embodiments of the present
invention for recovering petroleum-based materials and hydrocarbons from oil
slurry. FIG. 3A and 3B are schematic illustrations of two
embodiments of a microwave assisted system for the distillation and recovery of
heavy oil bottoms, e.g., oil slurry, from a distillation plant. FIG. 3A shows the following elements of a
traditional hydrocarbon distillation plant: 302 distillation tower 360 unrefined
inlet into distillation tower; 304 vapor line; 306 natural gas line; 308 gas
separator; 310 pump; 312 LPG line; 314 gasoline lines; 316 jet fuel (kerosene)
line; and 318 inset: close-up view of the liquid vapor contact caps with an a
distillation tower. This distillation system can be modified using the microwave
process of the present invention as follows. An electron activator 320 is added
using an electron activator pump 322 into residual oil 362. Hot residual oil
line (e.g., heavy oil) 362 is pumped into the microwave reactor 330 and atomized
using an atomizer 334. Microwave waveguide antenna 336 is powered from the
microwave room and control system 340, which control system includes microwave
generators 342 and microwave waveguides 344. The microwaves exit the waveguide
antenna 336 at cone nozzles within the microwave reactor so as to radiate the
atomized residual oil above the atomizer 334. Vacuum pumps 350 connected to the
vacuum line 332 maintains pressure of less than about 20 mmHg, or even less than
about 40 mmHg, or even less than about 100 mmHg. The irradiation of the atomized
residual oil gives rise to cracking of the residual heavy oil, which in turn
produces hydrocarbon vapors such as natural gas 352 and heavier hydrocarbon
vapors such as diesel and heating oil 354. In the microwave reactor 330,
residual oil 362 is removed from the bottom of a distillation tower 302,
combined with electron activator 320 and processed by microwave after
atomization. We have discovered that addition of the electron activator to the
residual oil, for example about 2% by weight based on residual oil of carbon
small particles, gives rise to a much faster, more efficient absorption of the
microwaves to yield more efficient cracking of the residual oil. Accordingly,
electron activator made using microwave processing of tire chips as described
supra is useful for making electron activator. Suitable electron activator is
provided as a fine powder, for example of about a hundred mesh, or finer. The
electron activator may be coarser than 100 mesh, depending on the precise
application and handling requirements. Without
being limited by any particular theory of operation, the electron activator
enhances the

       

      
        
          
          

        

        
          45

          
            

          

        

        
          
          

        

      

      
absorption
of microwaves by the residual oil, which gives rise to faster processing and
more efficient processing of the heavy oil. As a result, the electron activator,
which comprises carbon powder particulates, are capable of absorbing microwave
radiation. Solid particles containing residual hydrocarbons, such as electron
activator, result in popping (as in popcorn) when irradiated. Without being
bound by any particular theory of operation, it is believed that the popping
action of the small electron activator particles within the residual oil
enhances the microwave processing of the residual oil. In certain embodiments,
the electron activator functions as a catalyst for effectuating the microwave
cracking process.

       

      [0104] Suitable microwave
radiation frequency ranges from about 8.0 to about 8.8 GHz, or
in the range of from about 8.1 GHz to about 8.7 GHz, or even in the range of
from about 8.2 GHz
to about 8.6 GHz, or even in the range of from about 8.3 GHz to about 8.5 GHz,
or even about 8.4 GHz. The microwave reactor contains a series of microwave cone
antennas that radiate the atomized residual oil with microwaves. These microwave
cone antennas can each receive the same or different microwave frequencies. When
the frequencies differ, they typically are separated by increments of about 0.2
GHz. Ranges of microwave frequencies are typically useful for processing the
atomized residual oil in this manner. Accordingly multiple microwave antennas
344 receive microwaves generated by a plurality of microwave generators 342
provided in the microwave control system 340. Microwaves are transmitted through
microwave antennas 344 to the microwave antenna conduit 336. Microwaves then
enters the microwave reactor. Typically the residual oil 362 is pre-heated to a
temperature of about 350°C so that it is capable of flowing under pressure and
atomized. The use of microwaves has been demonstrated to effectively crack the
hydrocarbon chains in the heavy residual oil. Atomization helps to increase the
surface area of the residual oil and decrease particle size, thereby
effectuating absorption of the microwaves and cracking of the hydrocarbon
chains. The residual oil is suitably heated to temperatures sufficient that can
flow under pressure and atomized. Suitable temperatures are at least about
250°C, or even at least about 300° C, or even at least about 350° C, or even at
least about 400°C, or even at least about 450°C, or even at least about 500°C.
The residual oil may be preheated using any of a variety of heating methods, for
example convection, conduction, or irradiation, e.g. microwaves. The heavy
residual oil chains crack at least several times.

       

      [0105] Processes according to
the present invention are capable of producing combustible gases. The processes
according to the present invention are also capable of producing at least
several different weights of oils. These oil products range from carbon content
of hydrocarbon chains comprising from 14 carbons up to about 25 carbons. The
starting residual oils comprise hydrocarbon chains having at least 25 carbons or
even at least 28 carbons. The

      

      
        
          
          

        

        
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      hydrocarbons
in the residual oil do not necessarily need to be linear hydrocarbon chains, for
example cyclic and branched hydrocarbons are also envisioned. Instead of
atomization, hot flowing residual oil can be formed into a thin film and
irradiated with microwaves, or can be ejected into a shooting stream and
irradiated with microwaves, or can be broken into droplets under force of
pressure and irradiated with microwaves. Similar related processes give rise to
narrow dimension residual oil droplets. In certain embodiments the products of
microwave radiation within the microwave reactor 330 illustrated in FIG. 3A can
be recycled back to the distillation tower 302 for further
processing.

       

      [0106] FIG. 38 is a schematic of another embodiment of
a microwave assisted distillation and recovery unit for
heavy oil bottoms from a distillation plant. This embodiment is similar to that
described in FIG. 3B,
with the exception that
this embodiment further includes a reboiler 348 for heating the bottoms
coming from distillation tower 302 by a transfer line 370. The reboiler heats the bottoms which
are distilled in vacuum tower 340. Residual oil 346 from the vacuum tower is combined with
electron activator 320 using electron activator pump 322 to provide a mixture of residual oil in
electron activator 362. This mixture is then atomized in microwave reactor in
330. The operation of the microwave reactor is similar to that discussed supra
in FIG.
3A.

       

      [0107] FIG. 4A
illustrates an elevation view of a microwave reactor system suitable for
processing shale rock, tar sands, drill cuttings, and the like. Inlet feed screw
402 is suitable for transporting shale rock and other hydrocarbon containing
cuttings and the like into microwave reaction chamber 412. Helical screw mixing
flights 408 arc mounted to an axle 406 which is rotated using a motor. Helical
screw mixing flights mix and transport the material, such as shale rock pieces,
in the microwave reaction chamber interior 404. Microwave antennas 410 enter the
interior of the microwave reaction chamber 404. The material within the
microwave reaction chamber interior is stirred and irradiated. Vapors are
removed using a vacuum recovery system and condensing unit (not shown). Material
depleted of hydrocarbon vapor is discharged through the exit discharged from
feed system 416. Also shown is a support structure 414.

       

      [0108] FIG. 4B
provides a plan view of FIG. 4A,
wherein the direction of the material is shown entering the microwave
reaction chamber via onlet feed screw 402 mixing within the microwave reaction
chamber by a helical screw mixing flights 408, and finally exiting via exit
discharge screw feed system 416. FIG. 4C is an
elevation view of the microwave reactor system along the axis 406, the near end
being the exit discharge screw feed system section 416. FIG. 4D
illustrates a suitable microwave device control room, waveguides, and
vacuum pumps suitable for use with the system illustrated in FIG. 4A. FIG. 4E
illustrates an optional hopper

       

      
        
          
          

        

        
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      elevator
for transporting material into the inlet feed section 402. FIGs. 4F and 4G illustrate three horizontal
microwave reactor systems operating in parallel. FIG. 4H illustrates additional
microwave generators, waveguides and vacuum pumps for operating the three
horizontal microwave reactors illustrated in FIGs. 4F and 4G. The
processing of hydrocarbon containing materials, such as shale rock, tar sands,
drill cuttings and the like, is conducted in a vacuum environment, less than
about 20 mm of mercury, or less than about 40 mm of mercury, or even about less
than 100 mm of mercury. The hydrocarbon containing materials are subject to
heating by the microwaves and other heating means, up to about 350°C, or even up
to about 450°C, or even up to about 550°C, or even up to about 600°C. The
hydrocarbon containing materials are removed from the microwave reactor chamber
via a suitable vacuum plumbing system. The hydrocarbons are recovered using a
suitable heat exchange or condensing system (not shown).

       

      [0109] FIG. 5A depicts an
exemplary embodiment of the present invention for extracting petroleum-based
materials, carbon-based materials and hydrocarbon-based materials in
situ. A probe capable of generating microwave radiation (e.g., cone,
antennae or nozzle) according to the methods of the present invention can be
lowered into drilled oil wells. Using the methods of the present invention, the
petroleum-based materials can be vaporized and collected at surface-level and
processed using techniques known in the art. FIG. 5A illustrates a
schematic view of a microwave system for in situ recovery of oil from geologic
deposits. A suitable geologic deposit 526 includes an oil well, a capped oil
well, a shale rock deposit, a tar sand deposit, a coal deposit, and the like.
This illustration depicts a vacuum recovery unit 502 (e.g., a Venturi type
system) for recovering geologic hydrocarbons such as fossil fuels from a capped
oil well. This system comprises casing 504 extending from the surface of the
ground to the geologic carbon deposits at 526. A microwave waveguide is
delivered through the casing to the geologic carbon deposit 526. A microwave
antenna nozzle 510 resides at the end of the microwave waveguide 506 proximate
to the geologic carbon deposit, into which microwaves radiate. On the ground
surface is illustrated portable electric generator 522, portable pumping system
524, and portable microwave generation station control unit 520. Hydrocarbon
vapors generated by the microwaves in the geologic carbon deposit 526 are
transported under vacuum as vaporized geologic carbon deposit (e.g., oil vapor)
508 to the vacuum recovery unit on the surface ground. Capped oil wells contain
hydrocarbons that can be cracked to oil, suitable for use as diesel fuel. This
involves opening up capped oil wells, optionally adding electron activator into
the wells (which aid in absorbing the microwaves and converting the heavy oil in
the wells to hydrocarbon vapor), and irradiating the heavy hydrocarbons with
microwaves. Once vaporized, the hydrocarbons are readily transported to the
surface using suitable vacuum piping,

      

      
        
          
          

        

        
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      or other
plumbing means 528. The vacuum recovery unit 502 is also capable of
fractionating the hydrocarbons into other hydrocarbon products. Oils that are
difficult to recover using normal pumping means can be recovered according to
the processes.

       

      [0110] FIG. 5B
depicts an apparatus of the present invention for recovering petroleum-
based materials from oil shale, in situ. A probe capable of
generating microwave radiation according to the methods of the present
invention, can be lowered into oil shale deposits. Using the methods of the
present invention, the petroleum-based materials can be vaporized and collected
at surface level and processed using techniques known in the art. FIG. 5B
illustrates a schematic view of a microwave system for recovering
hydrocarbons below ground. In this embodiment, one or more microwave antennae
are shown capable of traveling horizontally underground with respect to the
ground surface. The microwave antennae are illustrated comprising one or more
microwave nozzles for vaporizing hydrocarbon geological deposits in a vacuum
environment. FIG. 5B
illustrates two conduits (on the left portion of the figure), each
containing a plurality of waveguides that terminate it into a suitable microwave
nozzle or cone emitter. Suitable microwave cones emitters are commercially
available. This process is adapted for recovering residual oil in capped oil
wells, and can also be adapted to other geological hydrocarbon deposits such as
tar sands and shale rock. If the oil well is "dry" with mainly heavy viscous
hydrocarbon material remaining in the well, a microwave antenna is transported
down into the oil well and the antenna-end can reside in one or more of the
openings. Microwave radiation is directed towards the geologic material in the
vicinity of the antenna.

       

      [0111]
Various hydrocarbon geological deposits can be processed underground
using this technology at various depths. Piping for the wells can start at a
diameter of about 24 inches at the surface, which diameter is progressively
narrower and narrower as sections of piping are added as the depth increases. At
a depth of approximately 3000 feet, a typical opening (diameter) of the piping
is about 6 inches. For example oil shale deposits in the Western part of the
United States are relatively shallow, i.e., near the surface. Strip mines are
also relatively shallow, and other deposits may be as deep as 2000 feet or more.
Previously pumped oil wells often have chambers of oil that are not readily
accessible but require opening by an additional explosive or drilling operation.
Certain chambers can also be opened by irradiating the sealing rock material
with microwaves. In a laboratory setting, it has been discovered that oil shale
pops and reduces in size when irradiated with microwaves. As the oil shale
releases hydrocarbons (i.e. oil), the oil shale "pops" like popcorn.
Accordingly, directionalizing microwaves within the geological chambers can give
rise to breakdown of the geological formation (i.e. the rocks pop, break apart,
and fall down and fill the cavity). Accordingly, the antennas can be moved
around

      

      
        
          
          

        

        
          49

          
            

          

        

        
          
          

        

      

      

      within
geological formations to aid in recovering hydrocarbon material. In some
embodiments microwave antennas are placed down about 5000 feet or more, and then
are directionalized to travel on the order of approximately 100 yards or so
horizontally.

       

      [0112] Any type of hydrocarbon
material present within the geological formation can be cracked to gas and
recovered at the surface using fractionalization condensation units. For
example, any carbon suitable for use as diesel fuel can be made by irradiating
oil shale. Resulting diesel fuel is suitably used as Cat Diesel Engine Oil.
Sometimes oil wells are drilled using directional drilling technologies.
Suitable directional drilling technologies are capable of bending at a rate of a
degree a foot to create an angle. Accordingly, flexible microwave antennas are
suitable for use in such oils. Accordingly, the process includes uncapping a
capped oil well. This can be accomplished by drilling out a concrete plug used
to cap the well, if present.

       

      [0113] The system can include
a number of auxiliary equipment located on the surface of the ground. Such
equipment includes, for example, well drilling equipment, vacuum pump vehicle,
fuel tank vehicles, a generator vehicle, and microwave control vehicle that
includes microwave generators, microwave waveguides, and associated equipment.
The vacuum pump vehicle can contain a vacuum pump that is capable of applying
intermittent vacuum pulse technology to raise hydrocarbon gases to the surface.
The hydrocarbon gases are recovered and collected in a suitable distillation
tower or fractionation tower that is fitted with heat exchanger and condensing
unit. Suitable oil wells and other hydrocarbon geological deposits residing in
the ground are accessed via a tube to provide a sealed system with the vacuum
pump vehicle for producing the vacuum environment needed for recovering a
hydrocarbon vapors. Suitable vacuums include absolute pressures of less than
about 20 mm of mercury, or even less than about 40 mm of mercury, or even less
than about 100 mm of mercury. The microwave control vehicle contains suitable
flexible microwave waveguides and generators. Typically the end of the microwave
waveguides (e.g., antennas) are fitted with a suitable microwave cone emitter
(e.g., nozzle). The antennas are placed into the mahogany zone in Earth in situ
and microwaves are used to radiate tar sands, or oil shale, or other hydrocarbon
deposits. The microwaves cause vaporization and gasification of the otherwise
viscous and solid-like hydrocarbon and carbon geological sources within the
ground. One or more antenna fitted with one or more cone emitter devices can be
used.

       

      [0114] Generated hydrocarbon
gases (e.g., take off gases) are transported to a suitable fractionation tower
capable of separating the gas, as illustrated in FIG. 5C. Geological material
such as sand and rock from which hydrocarbons have been removed remain within
the geological formation. In some embodiments, an in situ microwave process is
provided. Other

       

      
        
          
          

        

        
          50

          
            

          

        

        
          
          

        

      

      

      embodiments
do not require in situ microwave irradiation of the geological formation, e.g.,
geological material containing hydrocarbons that are mined and provided via
separate feed mechanism into a suitable microwave reactor. Geological material
such as sand and rock can be substantially totally gasified (i.e., depleted of
hydrocarbons and carbons) according to the processes of the present invention,
which geological material is then returned to the environment substantially free
of hydrocarbons. Finally, fuel and other hydrocarbons recovered form the
geological source can be stored in a suitable tanker vehicle and shipped for
delivery, further processing, and so on. The recovered hydrocarbons may also be
transported by pipeline, rail car, and the like. Optionally, the hydrocarbon
vapor recovered from geological sources may be fractionalized on-site using a
suitable distillation tower, as illustrated in FIG. 5A. The process of operating a
distillation tower is suitably described in FIG.
5C, which illustration shows the separation of crude oil using a
fractionating tower into its component products.

       

      [0115] FIG. 6 depicts one embodiment
for extracting petroleum-based materials from shale and tar sands and oil sands.
The tar sands can be loaded into the top of the apparatus, which can be under
reduced pressure. Using gravity and shaking, the tar sands move through the
apparatus while being exposed to microwave radiation as described herein.
Vaporized petroleum-based materials can be captured and collected in separate
vessels and refined using methods known in the art. After the material has
passed through the apparatus, it will be essentially free of petroleum-based
materials. FIG. 6 provides an elevation
view of a multiple microwave reactor system suitable for high volume recovery of
petroleum, carbon and hydrocarbons (e.g. diesel oil) from mined material, e.g.,
oil shale, oil sands, coal slag, and tar sands. This system is illustrated
having the following equipment: microwave waveguide 602; microwave antennas 620;
vacuum gas line 604; microwave reactors 606 - a total of five connected in
series; connecting pipe 608 between microwave reactors 606; top airlock 610
adjacent to in-feed of surface shale and tar sand material; airlock 612 adjacent
to discharge of depleted material; baffles 614 within vertically oriented
microwave reactors 606; support structure 630 to support multiple microwave
reactors connected in series and adjacent to source of surface shale and/or tar
sands. Mined material enters the system at airlock in-feed 610, which minimizes
the amount of air entering the system. The system is also fitted with a suitable
vacuum gas line 604 to maintain a vacuum environment (vacuum pumping equipment
not shown) of up to about 20 mm of mercury, or even up to about 40 mm of
mercury, or even up to about 100 mm of mercury. Material enters the first
microwave reactors 606 adjacent to the airlock, which material is transported
along baffles 614 while being irradiated with microwave radiation through
microwave antennas 620 (as illustrated in the second through fourth

       

      
        
          
          

        

        
          51

          
            

          

        

        
          
          

        

      

      

      microwave
reactors 606). Microwaves irradiate, heat, and crack the hydrocarbons, which
hydrocarbons exit the system via a vacuum gas line 604 (connections between the
microwave reactors 606 in the vacuum gas line 604 not shown). Geological
material leaves the topmost microwave reactor 606 and enters a first connecting
pipe 608, which partially reacted material is transported to a second microwave
reactor 606. The process is repeated and the material is subsequently
transported and irradiated with microwaves as it progresses along the series of
microwave reactors and connecting tubes. The processed material eventually
arrives at the bottom discharge, where it exits the system through an airlock
612.

       

      [0116] Another embodiment of
an apparatus of the present invention is depicted in FIG. 7. FIG. 7 is a schematic
view of a microwave reactor chamber and system for recovering fuel oil from a
hydrocarbon-containing source, such as used tires. The system includes the
following equipment and features: nitrogen supply 702 ; nitrogen regulator 704;
nitrogen flow valve 706; nitrogen inlet 708 to microwave reactor chamber 710 ;
microwave reactor chamber 710; infrared thermocouple 712 to measure average
temperature over irradiated area ; nitrogen flow meter 714 for infrared
thermocouple purge (low flow) ; microwave scattering reflector 716; motor 718
for microwave scattering reflector 716 ; platform 720 for holding hydrocarbon
containing materials; irradiation area 722; vacuum outlet 724; vacuum gauge 726;
opening 728 to microwave antennae; microwave source 730 (TVT or magnetron);
temperature gauge 732; vapor transfer tube 734; condenser tube 736; cooling coil
740; oil collector 742; valve drain 744; vacuum bypass valve 746; vacuum pump
748; flow meter 750 for TWT nitrogen purge (flow); nitrogen supply lines 752;
exhaust 754; exhaust gas flow meter 756; reactor chamber 758; reactor chamber
door 760.

       

      [0117] FIGs. 8A, 8B and 8C illustrate an embodiment of
the present invention for incorporating a microwave processing system to process
drilling cuttings on an oil drilling platform. FIG. 8A is a plan view of an exemplary oil
platform incorporating a drill cuttings microwave processing unit. A suitable
placement of a microwave processing unit (further illustrated in FIG. 8C) is provided . FIG. 8B illustrates an
elevation view of the oil platform in FIG. 8A. FIG. 8C illustrates a
vertical and horizontal configurations of the drill cuttings microwave
processing unit suitable for use in the oil platform illustrated in FIG. 8A.

       

      [0118] FIGs. 9A-9C are
electron microscope photographs at 60,000 times magnification of pyrolytic
carbon black material obtained according to Example 3 and using the system
illustrated in FIG. 7. The production of
this material is further described in Example 3, below.

       

      
        
          
          

        

        
          52

          
            

          

        

        
          
          

        

      

      

      [0119] FIGs. 10A-10E
illustrate an additional embodiment of a system for processing materials
containing hydrocarbons. Suitable materials include shale rock, drilling
cuttings, tar sands, plastics, polymeric materials, recycled
hydrocarbon-containing materials, refuse, residual oil, slurry oil, hydrocarbon
distillation bottoms, and the like. These figures illustrate the following
equipment and features: 1001 microwave tubes, amplifier and waveguides; reactor
drum 1004; sealed material in-feed 1002 through reactor drum 1004; in-feed screw
1003; rotating discharge screw 1005; control panel 1006; vacuum pumps 1007;
hydraulic drive transmission system 1008 for rotating reactor drum 1004;
shipping container 1009; vacuum release support 1010; drum bearing seal 1012;
roller bearings 1014; vacuum port 1016; microwave waveguides 1018 entering
rotating reactor drum 1004; mixing flight bars 1020 for mixing materials within
the rotating reactor drum 1004; bearings 1022 by which mechanism the drum
slidably rotates; rotating reactor drum axel 1024 by which mechanism the reactor
drum rotates through actuation with the hydraulic drive transmission center
1008.

       

      [0120] FIG. 10A is an
elevation view of a rotating drum reactor system. Material enters the in-feed
1002 via a suitable source, for example a hopper for receiving chips or chunks
of material. The material then enters into the in-feed screw 1003, which meters
the material into reactor drum 1004. The material is stirred and mixed using
mixing flight bars 1020. The drum is rotated using the hydraulic drive system
1008. The drum reactor is maintained under vacuum by means of vacuum pumps 1007
and vacuum gas line. The reactor drum is vacuum sealed by means of a drum
bearing seal 1012 as shown in the inset of FIG. 10D. Microwaves are
generated at 1001 and transmitted by a waveguides 1018 into the drum reactor
1004. Hydrocarbon vapors are removed through the vacuum gas line and collected
for further processing as described herein above.

       

      [0121] FIG. 10B is a plan view
of the rotating drum reactor portion depicted in FIG. 10A. The rotating drum 1004 is
shown comprising a drum bearing seal 1012, which drum slidably rotates against
end caps comprising ports for microwave antenna and vacuum connections. The
reactor drum slides via roller bearings 1014 in the top and bottom end caps. The
drum reactor 1004 resides within shipping container 1009. Screw conveyor 1003
conveys material into the drum reactor 1004. FIG. 10C is a plan view of an
alternative embodiment of a rotating drum reactor system. FIG. 10D is a cross-sectional
view of a drum bearing seal used in the rotating drum reactor
system.

       

      [0122] FIG. 10E is an
elevation view of the rotating drum reactor portion depicted in FIG. 10A. FIG. 10E further
illustrates the in-feed screw 1003 for metering the material into reactor drum
1004, which material is stirred and mixed using mixing flight bars 1020 as
the

       

      
        
          
          

        

        
          53

          
            

          

        

        
          
          

        

      

      

      drum is
rotated using the hydraulic drive system 1008. The drum reactor is maintained
under vacuum by means of vacuum pumps 1007 and vacuum gas line. The reactor drum
is vacuum sealed by means of a drum bearing seal 1012 as shown in the inset of
FIG.
10D. Microwaves are generated at 1001 and transmitted by waveguides 1018
into the drum reactor 1004. Mixing flight bars 1020 are used for mixing
materials within the rotating reactor drum 1004. Bearings 1022 are used for
slidably rotating the drum while maintaining the vacuum and microwave antenna
connections. The reactor drum rotates by means of axel 1024 through actuation
with the hydraulic drive transmission center 1008. Hydrocarbon vapors are
removed through the vacuum gas line 1016 and collected for further processing as
described herein above. Spent materials substantially depleted of hydrocarbons
exit to discharge screw 1005.

      

      [0123]
As an example, a suitable microwave rotating reactor drum system for
extracting hydrocarbons from materials such as drill cuttings and fluids can
comprise the following equipment:

       

      [0124]
A suitable microwave control center includes a number of hydrocarbon
specific modular microwave generators, high power amplifiers, master controller
module, slave driven power modules, thermal sensors, safety 1/0 devices for
vacuum, interlocks, and emergency shut down, manifold banked configuration of
flexible waveguides/windows/adapter plates, thermal metrology gear microwave
power measurement instruments and computer control station as per
schedule.

       

      [0125]
A suitable 4'-0" diameter rotating in-feed channel drum unit with vacuum
seal provisions comprises 3/8" stainless steel welded frame construction and
bolt on stainless steel (replaceable) hardened steel troughs driven by a direct
coupled, 5-hp NEMA-4 variable speed (VFD driven) indexing servo-motor to
transfer metered product into the feed screw.

       

      [0126]
A suitable 2'-6" diameter x 12'-6" long in-feed screw assembly comprises
heavy-duty stainless steel 2" square tubing frame supporting 3/8" stainless
steel skins with hardened helical screw driven by a direct coupled, 2-hp NEMA-4
variable speed (VFD) servo­motor to transfer metered product into the reactor
vessel.

       

      [0127]
A suitable 5'-0" diameter x 3/8" horizontal seamlessly welded stainless
steel and jaciceted sub-baric vessel is constructed with internal angular flight
bars, (length varies depending on composition of the intended process to) with
two - 24" long x 3/8" stainless steel end cap sections, hardened steel
circum-centerline rack & pinion hydraulic transmission driven by a variable
speed gear-head motor. Includes a maintenance access door, piping as required to
heat vessel jacket, microwave antenna mountings, vacuum port, pressure/flow
meters and gauges as required, power transmission is stainless steel guarded.
Reactor tank and peripheral equipment

       

      
        
          
          

        

        
          54

          
            

          

        

        
          
          

        

      

      

      is
supported by heavy duty stainless steel formed structural channels and heavy
duty external bearing wheels.

      

      [0128] A
suitable 2'-6" diameter x 12'-6" long discharge screw assembly
comprises heavy-duty stainless steel 2" square tubing frame supporting 3/8"
stainless steel skins with hardened helical screw driven by a direct coupled,
2-hp NEMA-4 variable speed (VFD) servo­motor to transfer metered product
into the reactor vessel.

       

      [0129] A
suitable NEMA 4 electrical motor control panel, 480v/3ph/60Hz - 24 volt
control circuits controls all motors and devices, directly mounted to shipping
container wall, includes Allen-Bradley PLC, touch screen diagnostics, VFD drive
components, I/O racks, rigid conduit with all marine wire specs, color coded,
tagged and match-marked for easy identification.

       

      [0130] A
suitable vacuum system comprises Dual to Quad (which varies according to
throughput) 1.5-hp oil-lubricated, rotary vane vacuum pumps system for -20in.Hg.
continuous duty operation. A vacuum release port system is mounted on the
discharge screw section.

       

      [0131] Electron
activator. It has been discovered that microwave radiation in the
frequency range of from about 4 GHz to about 12 GHz is useful for selectively
recovering hydrocarbon materials from geological petroleum and mineral sources,
as well as manufactured materials such as automobile and truck tires. It has
further been found that such materials can comprise carbon particles that absorb
energy when irradiated with microwave radiation. The heat from the energized
carbon particles is released to the adjacent hydrocarbon materials, and when
sufficient heat is released, the hydrocarbons are reduced in molecular weight,
i.e., "cracked", and vaporized. Unlike the prior art, the present discovery
discloses a particular range of frequencies that is efficacious for the
electromagnetic stimulation and heating of carbon particles for recovering
hycrocarbons, such as diesel fuel, from difficult to recover hydrocarbon
sources.

       

      [0132]
Disclosed are methods for microwave treatment of difficult-to-recover
hydrocarbon source materials comprising contacting the hydrocarbon source
material with particles comprising carbon, and subjecting the hydrocarbon source
material to microwave radiation. Also disclosed are methods for microwave
treatment of hydrocarbon source material comprising contacting the hydrocarbon
source material with material having a resonating frequency in the range of from
about 4 GHz to about 12 GHz, and subjecting the hydrocarbon source material to
microwave radiation characterized as having at least one frequency component
that corresponds to the resonating frequency of the material. As used herein,
carbon particles or material having a resonating frequency corresponding to the
applied microwave radiation frequency are collectively referred to as "electron
activator".

       

      
        
          
          

        

        
          55

          
            

          

        

        
          
          

        

         

      

      [0133]
In preferred embodiments of the disclosed methods, the microwave
radiation is one or more pre-selected microwave radiation frequencies.
Preferably, the pre-selected microwave radiation frequency will be the
resonating microwave frequency, i.e., the microwave radiation frequency at which
the particles comprising carbon absorb a maximum amount of microwave radiation.
It has been determined that different compositions of the present invention will
absorb more or less microwave radiation, depending on the frequency of the
microwave radiation applied. It has also been determined that the frequency at
which maximum microwave radiation is absorbed differs by composition. By using
methods known in the art, a composition of the present invention can be
subjected to different frequencies of microwave radiation and the relative
amounts of microwave radiation absorbed can be determined. Preferably, the
microwave radiation selected is the frequency that comparatively results in the
greatest amount of microwave radiation absorption. In one embodiment, the
pre-selected microwave radiation frequency is characterized as having at least
one frequency component in the range of from about 4 GHz to about 12 GHz. In
other embodiments, the pre-selected microwave radiation frequency is
characterized as having at least one frequency component in the range of from
about 5 GHz to about 9 GHz, from about 6 GHz to about 8 GHz, or from about 6.5
GHz to about 7.5 GHz.

       

      [0134]
The particles comprising carbon are preferably carbon substances that
have a resonating microwave frequency of from about 4 GHz to about 12 GHz. Many
forms of carbon are known by those skilled in the art, and, while not intending
to exclude other carbon types, it is contemplated that any form of carbon having
a resonating microwave frequency of from about 4 GHz to about 12 GHz will be
within the scope of the present invention. For example, the particles comprising
carbon can comprise carbon black. Carbon black may be described as a mixture of
incompletely-burned hydrocarbons, produced by the partial combustion of natural
gas or fossil fuels.

       

      [0135]
Carbon blacks have chemisorbed oxygen complexes (e.g., carboxylic,
quinonic, lactonic, phenolic groups and others) on their surfaces to varying
degrees depending on the conditions of manufacture. These surface oxygen groups
are collectively referred to as the volatile content. In preferred embodiments,
the present invention uses carbon black having a moderate volatile content. The
volatile content of the preferred carbon black can be composed of hydrocarbons
having up to about 20 carbon atoms, or even up to about 30 carbon
atoms.

       

      [0136]
The constituent parts of the electron activator preferably have
characteristic dimensions in the micrometer range, although other particle or
fragment sizes may also be used. Because carbon particles or particles
comprising another electron activator for use in the present invention can be
present in numerous configurations, and can be irregular in shape, the
term

       

      
        
          
          

        

        
          56

          
            

          

        

        
          
          

        

      

      

      "characteristic
dimensions" is used herein to describe the long axis in the case of
substantially cylindrical or otherwise oblong particles, and to describe
diameter in the case of substantially spherical particles, etc. In some
embodiments wherein the carbon particles comprise carbon black, the particles
can have characteristic dimensions of about 10 nm to about 250 gm. In other embodiments, the
particles can have characteristic dimensions of about 100 nm to about 100 gm, or
of about 200 nm to about 10 gm.

      

      [0137] Preferred are electron
activators having characteristic dimensions that are conducive to ready
dispersion within hydrocarbon materials that are targeted for vaporization. The
electron activators can be contacted with the hydrocarbon materials by directly
introducing the electron activators into the hydrocarbon materials
environment.

       

      [0138] In the present systems,
the electron activator particles can comprise any material that is capable of
absorbing at least a portion of the transmitted microwave radiation generated by
the microwave generator. In preferred embodiments the material comprises carbon.
The particles comprising carbon are preferably carbon substances that have a
resonating microwave frequency of from about 4 GHz to about 12 GHz. Many forms
of carbon are known by those skilled in the art, and, while not intending to
exclude other carbon types, it is contemplated that any form of carbon having a
resonating microwave frequency of from about 4 GHz to about 12 GHz will be
within the scope of the present invention. For example, the particles comprising
carbon can comprise carbon black. Carbon blacks have chemisorbed oxygen
complexes (e.g., carboxylic, quinonic, lactonic, phenolic groups and others) on
their surfaces to varying degrees depending on the conditions of manufacture.
These surface oxygen groups are collectively referred to as the volatile
content. In preferred embodiments, the present invention uses carbon black
having a moderate volatile content prepared by processing tire chips using
microwave radiation as described herein above.

       

      [0139] The constituent parts
of the particles preferably have characteristic dimensions in the micrometer
range, although other particle or fragment sizes may also be used. Because
carbon particles or particles comprising another electron activator for use in
the present invention can be present in numerous configurations, and can be
irregular in shape, the term "characteristic dimensions" is used herein to
describe the long axis in the case of substantially cylindrical or otherwise
oblong particles, and to describe diameter in the case of substantially
spherical particles, etc. In some embodiments wherein the carbon particles
comprise carbon black, the particles can have characteristic dimensions of about
100 gm.

       

      EXAMPLES

       

      
        
          
          

        

        
          57

          
            

          

        

        
          
          

        

      

       

      [0140]
The following examples are
provided to further describe the present invention. They are not to be construed to limit
the scope of the invention described in the claims. Many of the examples make use of the apparatus
substantially illustrated and described in FIG.
7. 

       

      Example
1

       

      [0141]
A chamber capable of being subjected to between 4.0 to 12.0 GHz of microwave radiation
frequencies and rated to withstand reduced atmospheric pressure, was equipped
with a 700 W, 5.8 to 7.0 GHz VFM microwave tube (Lambda Technologies,
Morrisville, NC). The chamber was outfitted with a nitrogen gas inlet tube, a
vacuum inlet tube, and an outlet tube connected to a heat exchanger and
collection vessel. The chamber was also equipped with an infrared thermocouple
temperature probe.

       

      Example
2

       

      [0142]
A chamber capable of being subjected to between 4.0 to 12.0 GHz of
microwave radiation frequencies and rated to withstand reduced atmospheric
pressure, was equipped with a 1800 W, 7.3 to 8.7 GHz VFM microwave tube (Lambda
Technologies, Morrisville, NC). The chamber was outfitted with an nitrogen gas
inlet tube, a vacuum inlet tube, and an outlet tube connected to a heat
exchanger and collection vessel. The chamber was also equipped with an infrared
thermocouple temperature probe.

       

      Example
3

       

      [0143]
A 20 lb automobile tire was cut into approximately 4" x 4" pieces. These
pieces were washed and dried. The pieces were placed on a tray and loaded into
the chamber of Example 1. Twenty psi of N2 was introduced into the chamber. The
VFM microwave radiation was initiated (700 W, 5.8-7.0 GHz). When the temperature
of the tire pieces reached 465 °F, the microwave radiation was halted and the
tire pieces allowed to cool about 5-25 °F. Microwave radiation was resumed. This
process was repeated an additional three times. Total experiment run time was
approximately twelve minutes. The decomposition products were then
analyzed.

       

      [0144]
This experiment produced 1.2 gallons of #4 oil (see Tables 1 and 2), 7.5
lbs of carbon black, 50 cu. ft. of combustible gases (including methane, ethane,
propane, butane, and isobutene), and 2 lbs of steel. FIGS.
9A-9C depict electron microscope photographs of samples of carbon black
produced using this method. FIG.
9C demonstrates that the carbon black produced by this method is
comparable to commercial-grade rubber black.

      

      Table 1: Analysis of Oil
Produced by Example 3.

       

      
        	
                TEST

              	
                RESULT

              
	
                Gross
      Heat of Combustion

              	
                18308
      BTU/lb

              
	
                Gross
      Heat of Combustion

              	
                144688
      BTU/gal

              

      

       

      
        
          
          

        

        
          58

          
            

          

        

        
          
          

        

      

       

      
        	
                Sulfur

              	
                0.931
      wt. %

              
	
                Kinematic
      Viscosity @ 122 °F

              	
                9.773
      cSt

              
	
                Saybolt
      Furol Viscosity @ 122 °F

              	
                78.9
      sus

              
	
                Sediment
      by Extraction

              	
                0.02
      wt. %

              
	
                Ash
      @ 775 °C

              	
                0.024
      wt. %

              
	
                Nitrogen

              	
                0.43
      wt. %

              

      

      Samples
were tested by ITS
Caleb Brett, Deer Park, TX Samples were filtered through a 100 mesh
filter prior to testing.

       

      Table 2: Analysis of Oil
Produced by Example 3

       

      
        	
                TEST

              	
                RESULT

              
	
                Corrected
      Flash Point

              	
                92
      °C

              
	
                Corrected
      Flash Point

              	
                198
      °F

              
	
                API
      Gravity 15.56 °C, 60 °F

              	
                13.7
      °API

              

      

      Samples
were tested by ITS Caleb Brett, Deer Park, TX

       

      Example
4

       

      [0145] A sample of oil
cuttings, oil shale, tar sands, oil sands, slurry oil, and/or a material
contaminated with petroleum-based materials, is placed in the apparatus of
Example 2. The pressure is reduced to 20 Torr. Microwave radiation is applied to
the sample for a time sufficient to vaporize all the petroleum-based material in
the sample. At 20 Torr, the petroleum- based materials vaporize between about
400 and 520 °F. The vaporized petroleum-based materials are cooled and collected
in a collection vessel. The material remaining in the chamber is substantially
free of petroleum-based material.

       

      Example
5

      

      [0146] A plastic bottle was
placed in the apparatus of Example 1 and exposed to microwave radiation. The
exposure to microwave radiation resulted in complete vaporization of the bottle
and recovery of petroleum-based materials.

       

      [0147] When ranges are used
herein for physical properties, such as molecular weight, or chemical
properties, such as chemical formulae, all combinations, and subcombinations of
ranges for specific embodiments therein are intended to be
included.

       

      [0148] The disclosures of each
patent, patent application, and publication cited or described in this document
are hereby incorporated herein by reference, in its entirety.

       

      [0149] Those skilled in the
art will appreciate that numerous changes and modifications can be made to the
preferred embodiments of the invention and that such changes and modifications
can be made without departing from the spirit of the invention. It is,
therefore,

       

      
        
          
          

        

        
          59

          
            

          

        

        
          
          

        

      

      

      intended
that the appended claims cover all such equivalent variations as fall within the
true spirit and scope of the invention.

       

      
        
          
          

        

        
          60

          
            

          

        

        
          
          

        

      

      

      What
is Claimed:

       

      1.    A method for
obtaining oil or a combustible gas from oil shale, comprising:

       

      subjecting
oil shale comprising shale rock and kerogen to microwave radiation for a time
sufficient to at least partially decompose said kerogen, 

       

      wherein
said microwave radiation comprises at least one frequency component in the range
of from about 4 GHz to about 18 GHz; and 

       

      recovering
oil or a combustible gas from the decomposed kerogen.

       

      2.    The method of
claim 1, wherein the oil shale is subjected to microwave radiation at a pressure
of less than one atmosphere.

       

      3.    The method of
claim 2, wherein the oil or a combustible gas is recovered from the decomposed
kerogen at a pressure of less than one atmosphere.

       

      4.    A method for
obtaining a carbon-based material from coal, comprising:

       

      subjecting
coal to microwave radiation for a time sufficient to at least partially
decompose said coal, 

       

      wherein
the temperature of said coal does not exceed about 700 °F, wherein said
microwave radiation comprises at least one frequency component in
the range of from about 4 GHz to about 18
GHz; and 

       

      recovering
a carbon-based material from the decomposed coal.

       

      5.    The method of
claim 4, wherein the coal is subjected to microwave radiation at a pressure of
less than one atmosphere.

       

      6.    The method of
claim 4, wherein the carbon-based material is recovered from the decomposed
coal at a pressure of less than one atmosphere.

       

      7.    The method of
claim 4, wherein the carbon-based material is a hydrocarbon.

       

      8.    The method of
claim 7, wherein the hydrocarbon is oil or a combustible gas.

       

      9.    A microwave
system for processing coal, oil shale, or both, comprising:

       

      an infeed airlock configured to receive
coal, oil shale, or both, said infeed airlock being sealable at a pressure less than
one atmosphere, wherein said infeed airlock is 

       

      
        
          
          

        

        
          61

          
            

          

        

        
          
          

        

      

       

      configured
to gravity feed coal, oil shale, or both into a microwave reactor coupled to
said infeed airlock;

       

      said
microwave reactor being oriented to permit gravity-driven transport therethrough
of coal, oil shale, or both;

       

      said
microwave reactor further comprising a microwave antenna orientable towards said
coal, oil shale, or both, to irradiate said coal, oil shale, or both while being
transported through the microwave reactor;

       

      said
microwave reactor further comprising a vacuum port to receive carbon- containing
fluid generated from coal, oil shale, or both being irradiated with microwave
radiation characterized as having at least one frequency component in the range
of from about 4 GHz to about 18 GHz;

       

      a
microwave radiation generator operatively coupled to said microwave antenna via
a microwave waveguide, wherein said microwave radiation generator is capable of
generating microwave radiation characterized as having at least one frequency
component in the range of from about 4 GHz to about 18 GHz;

       

      a vacuum
generator operatively coupled to said vacuum port, wherein said vacuum generator
is capable of generating pressure within said microwave reactor below one
atmosphere;

       

      a vessel
or conduit operatively coupled to said vacuum port to receive the carbon-
containing fluid; and

       

      a
discharge airlock operatively coupled to the microwave reactor to receive
microwave-processed coal, microwave-processed oil shale, or both from the
microwave reactor, wherein said discharge airlock is capable of discharging the
microwave- processed coal, the microwave-processed oil shale, or both, from the
microwave system while maintaining pressure within the microwave reactor at less
than one atmosphere.

       

      10.           Oil
produced by the method of claim 1.

       

      11.           Oil
produced by the method of claim 4.

       

      12.           A
combustible gas produced by the method of claim 1.

       

      13.           A
combustible gas produced by the method of claim 4.

       

      
        
          
          

        

        
          62

          
            

          

        

        
          
          

        

         

        ABSTRACT

        
 

      

      The
present invention provides methods and systems for obtaining oil or a
combustible gas from oil shale or coal, by subjecting oil shale or coal to
microwave radiation for a time sufficient to at least partially decompose or
extract oil, gas, or other carbon-containing materials from the oil shale and
coal. The disclosed processes and systems use microwave radiation comprising at
least one frequency component in the range of from about 4 GHz to about 18
GHz.

       

       

      
        
          
          

        

        
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          	Information:
	
                  Total
      Files Size (in bytes):   4776127

                
	
                   

                  This
      Acknowledgement Receipt evidences receipt on the noted date by the USPTO
      of the indicated documents, characterized by the applicant, and including
      page counts, where applicable. It serves as evidence of receipt similar to
      a Post Card, as described in MPEP 503.

                  

                  New Applications Under
      35 U.S.C. 111

                  If
      a new application is being filed and the application includes the
      necessary components for a filing date (see 37 CFR 1.53(b)-(d) and MPEP
      506), a Filing Receipt (37 CFR 1.54) will be issued in due course and the
      date shown on this Acknowledgement Receipt will establish the filing date
      of the application.

                  

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      International Application under 35 U.S.C. 371

                  If
      a timely submission to enter the national stage of an international
      application is compliant with the conditions of 35 U.S.C. 371 and other
      applicable requirements a Form PCT/DO/E0/903 indicating acceptance of the
      application as a national stage submission under 35 U.S.C. 371 will be
      issued in addition to the Filing Receipt, in due course.

                  

                  New International
      Application Filed with the USPTO as a Receiving Office

                  If
      a new international application is being filed and the international
      application includes the necessary components for an international filing
      date (see PCT Article 11 and MPEP 1810), a Notification of the
      International Application Number and of the International Filing Date
      (Form PCT/RO/105) will be issued in due course, subject to prescriptions
      concerning national security, and the date shown on this Acknowledgement
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      application.

                

        

         

      

       

      
        
          
          

        

        
          103

          
            

          

        

        
          
          

        

      

       

      SCHEDULE
B - EXISTING PROTOTYPE MACHINE

      

      Microwave
equipment including:

      
        	
                 
      

              	
                ·

              	
                Five
      Hydrocarbon specific microwave tubes located within individual power
      supply units.

              

      

      
        	
                 
      

              	
                ·

              	
                Waveguide
      assemblies including splitters, isolators, couplers, chokes, and windows,
      and antennas

              

      

      

      Double
gate airlock feed systems located on the load and unload ends of the external
housing.

      

      The
processor external housing is a fabricated mild steel housing that includes
removable covers on each end for maintenance. The housing also includes
microwave antenna mountings, vacuum port, temperature and pressure transmitters,
and a rupture disk, The processor housing is supported by a structural steel
frame.

      

      A 3
tiered belt conveyor driven by an externally mounted variable speed electric
motor drive package. There is also an external drive utilized for belt
vibration.

      

      An
out-feed screw assembly comprising a steel frame supporting a schedule 40 carbon
steel pipe housing with a hardened helical screw driven by a direct coupled
electric motor to transfer product out of the microwave processor.

      

      NEMA 4
water resistant electrical motor control panel, 480v/3ph/60Hz - 24 volt
control circuits to control all sensors, drives, motor controls, including a PLC
control with touch screen HMI diagnostics. I/O racks.

      

      Two
liquid-ring vacuum pumps for 20in.hg vacuum continuous duty
operation

      

      Temperature
and pressure transmitters located at the microwave processor housing and in the
vacuum. A pressure switch is provided in the processor housing as a back-up to
the pressure transmitter. A second temperature transmitter is provided to
measure the temperature of the out-feed processed material.

      

      The
system also includes external piping, condensing loops, oil collections tanks
with sight glasses and (4) gas storage tanks.

       

       

      
        
          
          

        

        
          104

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