As noted in the September Filing, at the time of the acquisition, ComEnergy was the holder of an Exclusive International License for the exploitation of Hybrid Coal and Gas Turbine (“HCGT”) Technology (the “License”). The License had been granted to ComEnergy by CSIRO, and CSIRO retained all ownership and control of the HCGT Technology itself, including all of the research results of tests performed on, intellectual property rights and patents related to, and entitlements to licensing fees from the HCGT Technology. For a description of the HCGT Technology, please see the Company’s recent Quarterly Report filed with the Securities and Exchange Commission on Form 10-QSB on November 14, 2007. On October 22, 2007 (the “Effective Date”), the Company, CSIRO, and ComEnergy entered into a Termination and Technology Assignment Deed (the “Agreement”), a copy of which is filed herewith. Pursuant to the terms of the Agreement, the License was terminated as of the Effective Date, and each of ComEnergy and CSIRO released the other from all obligations arising pursuant to the License. Further, as of the Effective Date, CSIRO assigned to the Company, and the Company accepted the assignment of, all of CSIRO’s rights, title, and interests related to the HCGT Technology described in the Agreement, which includes but is not limited to all of the intellectual property rights and patents related to and future entitlements to license fees arising from the HCGT Technology. Entry into the Agreement, along with the promises and obligations of the parties thereto, served as the consideration for the transactions contemplated in the Agreement.

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