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<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>UNITED STATES</P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>SECURITIES AND EXCHANGE COMMISSION</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=center><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>Washington, D.C. 20549</P>
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<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>FORM 8-K</B></P>
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<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>CURRENT REPORT</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=center><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</B></P>
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<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=center><BR></P>
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<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>Date of Report (Date of earliest event reported): <B>&nbsp;January 24, 2007 (January 18, 2007)</B></P>
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<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=center><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>CLEAN POWER TECHNOLOGIES INC.</B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>(Exact name of registrant as specified in its charter)</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><BR></P>
<TABLE cellspacing=0><TR><TD valign=top width=192><P style="margin:0pt; line-height:7.2pt; font-family:Times New Roman; font-size:11pt" align=center><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>Nevada</B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>(State or other jurisdiction</P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>of incorporation)</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=150><P style="margin:0pt; line-height:7.2pt; font-family:Times New Roman; font-size:11pt" align=center><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>000-51716</B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>(Commission</P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>File Number)</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=186><P style="margin:0pt; line-height:7.2pt; font-family:Times New Roman; font-size:11pt" align=center><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>98-0413062</B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>(IRS Employer</P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>Identifica&shy;tion No.)</P>
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<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>436-35<SUP>th</SUP> Avenue N.W., Calgary, Alberta, Canada T2K 0C1</B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>&nbsp;(Address of principal executive offices) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Zip Code)</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=center><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>(403) 277-2944</B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>Registrant&#146;s telephone number, including area code</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=center><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>Not applicable</B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>&nbsp;(Former name or former address, if changed since last report)</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=center><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):<BR>
</P>
<P style="margin:0pt; padding-left:18pt; text-indent:-18pt; line-height:13pt; font-family:Wingdings; font-size:11pt">&#168;<FONT FACE="Courier"> </FONT><FONT FACE="Times New Roman">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<BR>
</FONT></P>
<P style="margin:0pt; padding-left:18pt; text-indent:-18pt; line-height:13pt; font-family:Wingdings; font-size:11pt">&#168;<FONT FACE="Courier"> </FONT><FONT FACE="Times New Roman">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR>
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<P style="margin:0pt; padding-left:18pt; text-indent:-18pt; line-height:13pt; font-family:Wingdings; font-size:11pt">&#168;<FONT FACE="Courier"> </FONT><FONT FACE="Times New Roman">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<BR>
</FONT></P>
<P style="margin:0pt; padding-left:18pt; text-indent:-18pt; line-height:13pt; font-family:Wingdings; font-size:11pt">&#168;<FONT FACE="Courier"> </FONT><FONT FACE="Times New Roman">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</FONT></P>
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<P style="margin:0pt; font-family:Times New Roman" align=center>1</P>
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<P style="page-break-before:always; margin-top:0pt; margin-bottom:-10pt; line-height:13pt; font-family:Times New Roman; font-size:11pt; border-bottom:0.5pt solid #000000" align=justify><B>Item 1.01</B></P>
<P style="margin:0pt; padding-bottom:3pt; text-indent:72pt; line-height:13pt; font-family:Times New Roman; font-size:11pt; border-bottom:0.5pt solid #000000" align=justify><B>Entry into a Material Definitive Agreement</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>On January 18, 2007, Clean Power Technologies Inc. (&#147;Clean Power&#148; or the &#147;Company&#148;) entered into an Investment Agreement with Dutchess Private Equities Fund, L.P. (the &#147;Investor&#148;). &nbsp;Pursuant to this Agreement, the Investor shall commit to purchase up to $10,000,000 of the Company&#146;s common stock over the course of 24 months. &nbsp;The amount that the Company shall be entitled to request from each purchase (&#147;Puts&#148;) shall be equal to, at the Company&#146;s election, either (i) $250,000 or (ii) 200% of the average daily volume (U.S. market only) of the common stock for the 10 trading days prior to the applicable put notice date, multiplied by the average of the 3 daily closing bid prices immediately preceding the put date. &nbsp;The put date shall be the date that the Investor receives a put notice of a draw down by the Company. &nbsp;The purchase price shall be set at 96% of the lowest closing Best Bid price of the common stock during the pricing period. &nbsp;The pricing period shall be the 5 consecutive trading days immediately after the put notice date. &nbsp;There are put restrictions applied on days between the put date and the closing date with respect to that particular Put. &nbsp;During this time, the Company shall not be entitled to deliver another put notice. &nbsp;Further, Clean Power shall reserve the right to withdraw that portion of the Put that is below 90% of the lowest closing bid pirces for the 10-trading day period immediately preceding each put notice. &nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>The Company is obligated to file a registration statement with the Securities and Exchange Commission (&#147;SEC&#148;) covering the shares of common stock underlying the Investment Agreement within 30 days after the closing date. &nbsp;In addition, the Company is obligated to use all commercially reasonable efforts to have the registration statement declared effective by the SEC within 120 days after the filing of the registration statement.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">In connection with the Investment Agreement, Clean Power paid the Investor a due diligence fee of $15,000.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-10pt; line-height:13pt; font-family:Times New Roman; font-size:11pt; border-bottom:0.5pt solid #000000"><B>Item 3.02 </B></P>
<P style="margin:0pt; padding-bottom:3pt; text-indent:72pt; line-height:13pt; font-family:Times New Roman; font-size:11pt; border-bottom:0.5pt solid #000000"><B>Unregistered Sales of Equity Securities</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">See Item 1.01 above.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>The &nbsp;Company claims an exemption from the registration requirements of the Securities Act of 1933, as amended (the &#147;Act&#148;) for the private placement of these securities pursuant to Section 4(2) of the Act and/or Rule 506 of Regulation D promulgated thereunder since, among other things, the transaction does not involve a public offering, the Investor is an &#147;accredited investor&#148; and/or qualified institutional buyer, the Investor has access to information about the Company and its investment, the Investor will take the securities for investment and not resale, and the Company is taking appropriate measures to restrict the transfer of the securities.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>In connection with each Put, Clean Power has agreed to pay to a registered broker 1% of the Put amount on each draw, not to exceed $10,000 during the 24-month period commencing upon the effective date of the registration statement described above.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-10pt; line-height:13pt; font-family:Times New Roman; font-size:11pt; border-bottom:0.5pt solid #000000"><B>Item 9.01</B></P>
<P style="margin:0pt; padding-bottom:3pt; text-indent:72pt; line-height:13pt; font-family:Times New Roman; font-size:11pt; border-bottom:0.5pt solid #000000"><B>Financial Statements and Exhibits</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><BR></P>
<TABLE cellspacing=0><TR><TD valign=top width=103.2><P style="margin-top:4.6pt; margin-bottom:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>Regulation</B></P>
<P style="margin-top:0pt; margin-bottom:4.6pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>S-K Number</B></P>
</TD><TD valign=bottom width=535.2><P style="margin-top:4.6pt; margin-bottom:4.6pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>Document</B></P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="margin-top:4.6pt; margin-bottom:4.6pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>10.1</P>
</TD><TD valign=top width=535.2><P style="margin-top:4.6pt; margin-bottom:4.6pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Investment Agreement, dated as of January 18, 2007 by and between Clean Power Technologies, Inc. and Dutchess Private Equities Fund, L.P.</P>
</TD></TR>
<TR><TD valign=top width=103.2><P style="margin-top:4.6pt; margin-bottom:4.6pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>10.2</P>
</TD><TD valign=top width=535.2><P style="margin-top:4.6pt; margin-bottom:4.6pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Registration Rights Agreement, dated as of January 18, 2007, by and between Clean Power Technologies, Inc. and Dutchess Private Equities Fund, L.P.</P>
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<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=center><BR></P>
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<P style="margin:0pt; font-family:Times New Roman" align=center>2</P>
<P style="margin:0pt; font-family:Courier"><BR></P>
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<P style="page-break-before:always; margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>SIGNATURES</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><BR></P>
<TABLE cellspacing=0><TR><TD valign=top width=343.2>&nbsp;</TD><TD valign=top width=294><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B>CLEAN POWER TECHNOLOGIES INC.</B></P>
</TD></TR>
<TR><TD valign=top width=343.2><P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">January 24, 2007</P>
</TD><TD valign=top width=294><P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-13pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">By: <U>/s/ Abdul Mitha</U></P>
<P style="margin:0pt; text-indent:108pt; font-family:Times New Roman; font-size:11pt"><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Abdul Mitha </P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chief Executive Officer</P>
</TD></TR>
<TR><TD valign=top width=343.2>&nbsp;</TD><TD valign=top width=294>&nbsp;</TD></TR>
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<P style="margin:0pt; font-family:Times New Roman" align=center>3</P>
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{"company-data": {"conformed-name": "CLEAN POWER TECHNOLOGIES INC.", "cik": "0001282387", "assigned-sic": "3510", "irs-number": "980413062", "state-of-incorporation": "NV", "fiscal-year-end": "0806"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-51716", "film-number": "07549829"}, "business-address": {"street1": "436-35 AVENUE N.W.", "city": "CALGARY", "state": "A0", "zip": "T2K 0C1", "phone": "4032772944"}, "mail-address": {"street1": "436-35 AVENUE N.W.", "city": "CALGARY", "state": "A0", "zip": "T2K 0C1"}, "former-company": {"former-conformed-name": "SPHERE OF LANGUAGE", "date-changed": "20040302"}}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
January 24, 2007 (January 18, 2007)
CLEAN POWER TECHNOLOGIES INC.
(Exact name of registrant as specified in its charter)
Nevada
(State or other jurisdiction
of incorporation)
000-51716
(Commission
File Number)
98-0413062
(IRS Employer
Identifica­tion No.)
436-35
th
Avenue N.W., Calgary, Alberta, Canada T2K 0C1
(Address of principal executive offices)               (Zip Code)
(403) 277-2944
Registrant's telephone number, including area code
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
1
Item 1.01
Entry into a Material Definitive Agreement
On January 18, 2007, Clean Power Technologies Inc. ("Clean Power" or the "Company") entered into an Investment Agreement with Dutchess Private Equities Fund, L.P. (the "Investor").  Pursuant to this Agreement, the Investor shall commit to purchase up to $10,000,000 of the Company's common stock over the course of 24 months.  The amount that the Company shall be entitled to request from each purchase ("Puts") shall be equal to, at the Company's election, either (i) $250,000 or (ii) 200% of the average daily volume (U.S. market only) of the common stock for the 10 trading days prior to the applicable put notice date, multiplied by the average of the 3 daily closing bid prices immediately preceding the put date.  The put date shall be the date that the Investor receives a put notice of a draw down by the Company.  The purchase price shall be set at 96% of the lowest closing Best Bid price of the common stock during the pricing period.  The pricing period shall be the 5 consecutive trading days immediately after the put notice date.  There are put restrictions applied on days between the put date and the closing date with respect to that particular Put.  During this time, the Company shall not be entitled to deliver another put notice.  Further, Clean Power shall reserve the right to withdraw that portion of the Put that is below 90% of the lowest closing bid pirces for the 10-trading day period immediately preceding each put notice.
The Company is obligated to file a registration statement with the Securities and Exchange Commission ("SEC") covering the shares of common stock underlying the Investment Agreement within 30 days after the closing date.  In addition, the Company is obligated to use all commercially reasonable efforts to have the registration statement declared effective by the SEC within 120 days after the filing of the registration statement.
In connection with the Investment Agreement, Clean Power paid the Investor a due diligence fee of $15,000.
Item 3.02
Unregistered Sales of Equity Securities
See Item 1.01 above.
The  Company claims an exemption from the registration requirements of the Securities Act of 1933, as amended (the "Act") for the private placement of these securities pursuant to Section 4(2) of the Act and/or Rule 506 of Regulation D promulgated thereunder since, among other things, the transaction does not involve a public offering, the Investor is an "accredited investor" and/or qualified institutional buyer, the Investor has access to information about the Company and its investment, the Investor will take the securities for investment and not resale, and the Company is taking appropriate measures to restrict the transfer of the securities.
In connection with each Put, Clean Power has agreed to pay to a registered broker 1% of the Put amount on each draw, not to exceed $10,000 during the 24-month period commencing upon the effective date of the registration statement described above.
Item 9.01
Financial Statements and Exhibits
Regulation
S-K Number
Document
10.1
Investment Agreement, dated as of January 18, 2007 by and between Clean Power Technologies, Inc. and Dutchess Private Equities Fund, L.P.
10.2
Registration Rights Agreement, dated as of January 18, 2007, by and between Clean Power Technologies, Inc. and Dutchess Private Equities Fund, L.P.
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
CLEAN POWER TECHNOLOGIES INC.
January 24, 2007
By:
/s/ Abdul Mitha
Abdul Mitha
Chief Executive Officer
3