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      STATES</strong></font></div>
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      D.C. 20549</strong></font></div>
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      REPORT</strong></font></div>
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      to Section 13 or 15(d) of the Securities Exchange Act of
      1934</strong></font></div>
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      of
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      August 18, 2006 </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;</font></div>
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      ENERGY CORPORATION</strong></font></div>
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      name of registrant as specified in its charter)</font></div>
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                Number)</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>514
                Via De La Valle, Suite 200, Solana Beach, CA
                92075</strong></font></div>
            </td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Address
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(858)794-8800</strong></font></div>
            </td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Registrant&#8217;s
                telephone number, including area code)</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Not
                Applicable</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Former
                name or former address, if changed since last
                report)</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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):</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">o</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font></div>
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      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
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      (17 CFR 240.14d-2(b))</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">o</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
      Act
      (17 CFR 240.13e-4(c))</font></div>
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    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
              1.01.</strong></font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Entry
                into a Material Definitive
                Agreement.</strong></font></div>
            </td>
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      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Amendment
      of 0% Subordinated Mandatory Convertible Debentures and Common Stock Purchase
      Warrants</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      previously disclosed in current reports on Form 8-K filed on February 28, 2006
      and March 20, 2006, we issued and sold to certain accredited investors 0%
      subordinated mandatory convertible debentures in the aggregate principal amount
      of $5,250,000, and common stock purchase warrants to purchase up to an aggregate
      of 2,354,261 shares of common stock. The sales of these securities occurred
      in
      February and March of 2006. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      July
      2006, we and the holders of the 0% subordinated mandatory convertible debentures
      and associated warrants agreed to amend such instruments effective as of their
      original issue date to provide for a minimum conversion price for the 0%
      subordinated mandatory convertible debentures and a minimum warrant exercise
      price of $0.05. The warrants were also amended to fix the aggregate number
      of
      warrant shares that are issuable to the number of shares of common stock for
      which the warrants were exercisable at the time the warrants were originally
      granted (2,354,261).</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      foregoing descriptions are qualified in their entirety by reference to the
      amended debentures and warrants filed as Exhibits 99.1, 99.2, 99.3, 99.4, 99.5,
      99.6, 99.7 and 99.8 to this report.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Amendment
      of Agreements with Cornell Capital Partners, LP</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      March
      2006, we entered into agreements with Cornell Capital Partners, LP, including
      without limitation, a securities purchase agreement, investor registration
      rights agreements, secured convertible debentures and warrants, pursuant to
      which we agreed to issue and sell to Cornell up to an aggregate of $15,000,000
      in principal amount of secured convertible debentures and warrants to purchase
      up to an aggregate of 10,000,000 shares of common stock. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cornell
      purchased $10,000,000 of the secured convertible debentures on March 31, 2006.
      Half of the net proceeds from the sale of the debentures were delivered to
      us,
      and half of the net proceeds were held in escrow until the filing of a
      registration statement for the sale by Cornell of the shares which may be
      acquired upon conversion or default under the secured convertible debentures
      and
      upon exercise of the warrants. Such registration statement was filed in May
      2006, and the $5,000,000 balance of the net proceeds was paid to us. Prior
      to
      the August 2006 amendments to the investment agreements described below, Cornell
      was obligated to purchase another $5,000,000 of the secured convertible
      debentures on the date the registration statement is declared effective by
      the
      SEC. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      July
      2006, we and Cornell agreed to amend the investment agreements described above,
      effective as of their original issue dates, as follows:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td align="left" valign="top" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">to
                provide for a floor price of $0.05 on the adjustable conversion price
                of
                the secured convertible debentures;</font></div>
            </td>
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      </table>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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          <tr>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">to
                provide for a floor price of $0.05 per share on the exercise price
                of the
                warrants applicable to adjustments with respect to certain future
                issuances of securities by us, and upon certain distributions of
                assets
                and similar recapitalization events;
</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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          <tr>
            <td align="right" valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">to
                extend the deadline for having the registration statement under the
                investor registration rights agreement declared effective until August
                12,
                2006; and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
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          <tr>
            <td align="right" valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">to
                cap liquidated damages payable in respect of failure to have an effective
                registration statement at 15% of the liquidated value of the debentures
                outstanding.</font></div>
            </td>
          </tr>

      </table>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition, on August 17, 2006, we and Cornell agreed to further amend the
      investment agreements described above, as follows:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">to
                provide for the purchase by Cornell of $1,500,000 of the remaining
                secured
                convertible debentures as of the date of the amendment, with the
                remaining
                $3,500,000 to be purchased by Cornell upon the effectiveness of the
                registration statement that we are required to file pursuant to the
                investor registration rights
                agreement;</font></div>
            </td>
          </tr>

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    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">-2-</font></div>
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          <hr style="COLOR: black" noshade size="2">
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    <div>
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          <tr>
            <td align="right" valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td align="left" valign="top" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">to
                waive any breaches of the investment agreements with Cornell related
                to
                our tax withholding liabilities more fully described in Amendment
                No. 2 to
                our Form 8-K/A filed with the SEC on August 8, 2006;
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="right" valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td align="left" valign="top" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">to
                further extend the deadline under the investor registration rights
                agreement for having a registration statement declared effective
                until
                September 5, 2006; and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="right" valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td align="left" valign="top" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">to
                reduce the exercise price of the warrant to be issued in connection
                with
                Cornell's purchase of the remaining $5,000,000 of secured convertible
                debentures to $.80 from $1.50 per share, and increase the total number
                of
                warrant shares underlying such warrant to 6,250,000 from 3,000,000.
                Such
                warrant was issued on the date of the
                amendment.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition, Cornell granted us a waiver of certain of the restrictive covenants
      contained in the investment agreements to permit us to take certain remedial
      actions relative to our tax withholding liabilities described in the August
      8,
      2006 Form 8-K/A, including the following with respect to any officer or
      employee: repurchasing vested shares, canceling any unvested shares, granting
      substitute equity awards, or permitting such persons to sell, pledge or transfer
      their shares shares. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      foregoing descriptions are qualified in their entirety by reference to the
      amended investment agreements filed as Exhibits 99.9, 99.10, 99.11, 99.12,
      99.13, 99.14, 99.15, 99.16, 99.17 and 99.18 to this report.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Amendment
      of Prueitt License Agreement</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      July
      2006,&#160;our company&#160;and Dr. Melvin Prueitt signed an Amended and
      Restated Technology License Agreement related to Suncone&#8482; CSP (concentrating
      solar power) technology. &#160;This agreement allows use of Dr. Prueitt's
      patent-pending technology including use of it in connection with collecting
      solar energy for both electrical power generation and water desalination.
&#160;Material changes to the original agreement are: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 18pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">elimination
                of our minimum royalty payment obligations;
</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 18pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">replacement
                of a staggered royalty rate structure with a flat percentage equal
                to the
                prior lowest staggered royalty rate;
</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 18pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">modification
                of the vesting schedule applicable to the warrant granted to Dr.
                Prueitt
                in connection with the license agreement to provide for quarterly
                vesting
                of 300,000 shares beginning on September 30, 2006 (with the final
                133,438
                shares vesting on June 30, 2008), and modification of the warrant
                to
                survive any termination of the license agreement, such that it will
                expire
                only pursuant to its own terms; and
</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 18pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                addition of the right of either party to terminate the agreement
                upon 90
                days notice without cause. &#160;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;If
      not terminated earlier, the license provided by the license agreement will
      expire the later of January 27, 2026 or the date of expiration of the last
      to
      expire of any issued patent within the patent rights subject to the license
      agreement. &#160;We also agreed to fund a six month development project to
      develop a working prototype of a solar collector and to expend or devote
      resources equal to at least $300,000 during such time period, which obligation
      has been satisfied.&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      foregoing descriptions are qualified in their entirety by reference to the
      Amended and Restated Technology License Agreement and Warrant to Purchase Common
      Stock filed as Exhibits 99.19 and 99.20&#160;to this report.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Technology
      Consulting Agreement with Dr. Prueitt</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      July
      10, 2006, we entered into a technology consulting agreement with Dr. Prueitt
      pursuant to which Dr.&#160;Prueitt will work with us to develop and
      commercialize Suncone&#8482; CSP, assist in the identification and development of new
      renewable energy and water desalination and related Suncone&#8482; CSP technologies
      and to provide other related services. Dr. Prueitt will receive up to $10,000
      per month for these services (payable upon monthly invoices), and will be
      reimbursed for reasonably necessary expenses. As previously agreed, we will
      issue and sell to Dr.&#160;Prueitt 100,000 shares of common stock in
      consideration of the termination of minimum royalties provided in the original
      Suncone&#8482; CSP Technology License Agreement and the Amended and Restated
      Technology License Agreement dated July 10, 2006, which shares we agreed to
      register for resale on the next registration statement we file with the SEC.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">-3-</font></div>
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          <hr style="COLOR: black" noshade size="2">
        </div>
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        </div>
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    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      will
      own all the intellectual property rights related to Suncone&#8482; CSP for work done
      by Dr. Prueitt under the agreement. In addition, Dr. Prueitt has granted us
      a
      right of first negotiation and right of first refusal related to developments
      in
      the field of production of renewable energy, the desalination of water and
      related industrial applications, except for developments related to the kinetic
      pump or ocean thermal energy conversion. The agreement supersedes all previous
      agreements between us and Dr. Prueitt relating to his engagement as a consultant
      and related compensation, including the Amended and Restated Technology License
      Agreement dated March 17, 2005 and the Technology Consulting Agreement dated
      August 20, 2005. Either party may terminate the agreement, with or without
      cause, upon 90 days written notice.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      foregoing descriptions are qualified in their entirety by reference to the
      Technology Consulting Agreement filed as Exhibit 99.21&#160;to this
      report.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Lease
      of Manufacturing Space in Grass Valley</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      April
      12, 2006, we entered into a lease agreement with J.R. Associates, 11 to lease
      approximately 8,000 square feet of additional manufacturing space located at
      1415 Whispering Pines Lane, Grass Valley, California. This lease is for a three
      year term beginning October 1, 2006. We have agreed to pay $5,972 per month
      for
      the first 12 months for the additional space. In addition, we are responsible
      for paying the following expenses under the agreement related to the leased
      property: real property taxes, utilities, insurance premiums, common area
      expenses (pro rata share), impounds for insurance premiums and property taxes,
      maintenance, repairs and alterations. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      foregoing descriptions are qualified in their entirety by reference to
      the&#160;office lease&#160;filed as Exhibit 99.22&#160;to this
      report.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Employment
      Agreement with Don Rogers</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      April
      4, 2006, we appointed Don Rogers Executive Vice President, East Coast
      Operations, and entered into an employment agreement with him. The term of
      his
      employment agreement is through March 31, 2007. The agreement provides for
      an
      annual base salary of CDN $150,000 plus annual bonuses as determined by our
      board of directors, based upon our financial performance and Mr. Roger's
      performance. In addition, we agreed to grant Mr. Rogers an option to acquire
      150,000 shares of our common stock, which option vests quarterly, provided
      that
      he remains employed by us,&#160;through March 31, 2009, at an exercise price of
      $1.50 per share. Such option has not yet been granted and we intend to grant
      such option pursuant to a special, non-stockholder approved option plan. If
      Mr.
      Rogers is terminated without just cause after March 31, 2007,&#160;we
      are&#160;obligated to pay him the greater of five months&#8217; base salary or the
      severance required by the laws of Aurora, Ontario where he is employed. Finally,
      Mr. Rogers is entitled to certain benefits and reimbursement of expenses, as
      set
      out in the employment agreement. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      foregoing descriptions are qualified in their entirety by reference to the
      employment agreement filed as Exhibit 99.23&#160;&#160;to this
      report.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Compensatory
      Grants of Shares of Common Stock</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      April
      10,&#160;2006, we agreed to grant to a non-executive employee 75,000 restricted
      shares of our common stock pursuant to the terms of an employment agreement.
      Such shares are granted in equal quarterly installments, commencing in June
      2006, subject to continued employment with us, with the last installment
      scheduled to be made on March 31, 2009. On February 9,&#160;2006, we granted
      10,000 shares of restricted stock to another non-executive employee as
      compensation. The grants to these employees were approved by our board of
      directors, without stockholder approval.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">-4-</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Customatrix
      Agreement</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      December 1, 2005, we entered into a Financial &amp; Management Accounting
      Services Project Work Agreement with Customatrix, Inc., a corporation 50% owned
      by Cheryl Bostater, our chief financial officer. Pursuant to this agreement,
      Customatrix has agreed to provide bookkeeping services until a controller was
      hired (which hiring occurred in April 2006), as well as other financial advisory
      services as required at an hourly rate ranging from $40 to $170 per hour based
      on the level of services requested. Either party may terminate the agreement
      upon 30 days prior written notice. On May 18, 2006, we entered into an
      engagement letter with Customatrix to provide a purchase price allocation under
      SFAS No. 141 for Connect Renewable Energy, Inc. and Solar Roofing Systems,
      Inc.
      for a fixed fee of $16,000.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      foregoing descriptions are qualified in their entirety by reference to the
      Financial &amp; Management Accounting Services Project Work Agreement filed as
      Exhibit 99.24.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
              9.01</strong></font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Financial
                Statements and Exhibits.</strong></font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibits.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Second
                Amended and Restated Common Stock Purchase Warrant issued to Coach
                Capital
                LLC</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.2</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Second
                Amended and Restated Common Stock Purchase Warrant issued to Eversource
                Group Limited</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.3</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Second
                Amended and Restated Common Stock Purchase Warrant issued to Bank
                Sal.
                Oppenheim jr. &amp; Cie (Schweiz)
                AG</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.4</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Second
                Amended and Restated Common Stock Purchase Warrant issued to Nadelson
                Internacional S.A.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.5</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Second
                Amended and Restated 0% Subordinated Mandatory Convertible Debenture
                issued to Coach Capital LLC</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.6</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Second
                Amended and Restated 0% Subordinated Mandatory Convertible Debenture
                issued to Eversource Group Limited</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.7</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Second
                Amended and Restated 0% Subordinated Mandatory Convertible Debenture
                issued to Bank Sal. Oppenheim jr. &amp; Cie (Schweiz)
                AG</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.8</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Second
                Amended and Restated 0% Subordinated Mandatory Convertible Debenture
                issued to Nadelson Internacional
                S.A.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.9</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amendment
                No. 2 to Investor Registration Rights Agreement with Cornell Capital
                Partners, LP</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.10</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amendment
                No. 2 to Securities Purchase Agreement with Cornell Capital Partners,
                LP</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.11</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Warrant
                to Purchase Common Stock Issued to Cornell Capital Partners,
                LP</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.12</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Waiver
                with Cornell Capital Partners, LP</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.13</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Secured
                Convertible Debenture No. CCP-3 issued to Cornell Capital Partners,
                LP</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">-5-</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.14</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amendment
                No. 1 to Securities Purchase Agreement with Cornell Capital Partners,
                LP</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.15</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amendment
                No. 1 to Secured Convertible Debenture No. CCP-1 issued to Cornell
                Capital
                Partners, LP</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.16</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amendment
                No. 1 to Secured Convertible Debenture No. CCP-2 issued to Cornell
                Capital
                Partners, LP</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.17</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amendment
                No. 1 to Warrant No. CCP-001 issued to Cornell Capital Partners,
                LP</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.18</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amendment
                No. 1 to Warrant No. CCP-002 issued to Cornell Capital Partners,
                LP</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.19</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amended
                and Restated Technology License Agreement dated July 10, 2006 with
                Dr.
                Melvin Prueitt</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.20</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Common
                Stock Purchase Warrant dated July 10, 2006 issued to Dr. Melvin Prueitt
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.21</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Technology
                Consulting Agreement dated July 10, 2006 with Dr. Melvin
                Prueitt</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.22</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Office
                Lease dated April 12, 2006 with JR Associates,
                11</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.23</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Don
                Rogers Employment Agreement dated April 4,
                2006</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.24</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Financial
                &amp; Management Accounting Services Project Work Agreement dated May 18,
                2006 with </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Customatrix,
                Inc.</font></div>
            </td>
          </tr>

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      has
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      duly authorized.</font></div>
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                ENERGY CORPORATION</strong></font></div>
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            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
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                August 18, 2006</font></div>
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            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">By:&#160;&#160;</font></td>
            <td>
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                Cheryl Bostater</font></div>
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{"company-data": {"conformed-name": "OPEN ENERGY CORP", "cik": "0001176193", "assigned-sic": "1311", "irs-number": "980370750", "state-of-incorporation": "NV", "fiscal-year-end": "0531"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-50450", "film-number": "061042555"}, "business-address": {"street1": "674 GRANVILLE STREET", "street2": "PO BOX 54037", "city": "VANCOUVER", "state": "A1", "zip": "V6C 3P4", "phone": "604.657.2246"}, "mail-address": {"street1": "674 GRANVILLE STREET", "street2": "PO BOX 54037", "city": "VANCOUVER", "state": "A1", "zip": "V6C 3P4"}, "former-company": [{"former-conformed-name": "BARNABUS ENERGY, INC.", "date-changed": "20050822"}, {"former-conformed-name": "BARNABUS ENTERPRISES LTD", "date-changed": "20020621"}]}
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):
August 18, 2006
OPEN
      ENERGY CORPORATION
(Exact
      name of registrant as specified in its charter)
Nevada
000-50450
98-0370750
(State
                or other jurisdiction
of
                incorporation)
(Commission
File
                Number)
(I.R.S.
                Employer
Identification
                No.)
514
                Via De La Valle, Suite 200, Solana Beach, CA
                92075
(Address
                of principal executive offices, including zip code)
(858)794-8800
(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):
o
Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
      Act
      (17 CFR 240.14d-2(b))
o
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.
Amendment
      of 0% Subordinated Mandatory Convertible Debentures and Common Stock Purchase
      Warrants
As
      previously disclosed in current reports on Form 8-K filed on February 28, 2006
      and March 20, 2006, we issued and sold to certain accredited investors 0%
      subordinated mandatory convertible debentures in the aggregate principal amount
      of $5,250,000, and common stock purchase warrants to purchase up to an aggregate
      of 2,354,261 shares of common stock. The sales of these securities occurred
      in
      February and March of 2006.
In
      July
      2006, we and the holders of the 0% subordinated mandatory convertible debentures
      and associated warrants agreed to amend such instruments effective as of their
      original issue date to provide for a minimum conversion price for the 0%
      subordinated mandatory convertible debentures and a minimum warrant exercise
      price of $0.05. The warrants were also amended to fix the aggregate number
      of
      warrant shares that are issuable to the number of shares of common stock for
      which the warrants were exercisable at the time the warrants were originally
      granted (2,354,261).
The
      foregoing descriptions are qualified in their entirety by reference to the
      amended debentures and warrants filed as Exhibits 99.1, 99.2, 99.3, 99.4, 99.5,
      99.6, 99.7 and 99.8 to this report.
Amendment
      of Agreements with Cornell Capital Partners, LP
In
      March
      2006, we entered into agreements with Cornell Capital Partners, LP, including
      without limitation, a securities purchase agreement, investor registration
      rights agreements, secured convertible debentures and warrants, pursuant to
      which we agreed to issue and sell to Cornell up to an aggregate of $15,000,000
      in principal amount of secured convertible debentures and warrants to purchase
      up to an aggregate of 10,000,000 shares of common stock.
Cornell
      purchased $10,000,000 of the secured convertible debentures on March 31, 2006.
      Half of the net proceeds from the sale of the debentures were delivered to
      us,
      and half of the net proceeds were held in escrow until the filing of a
      registration statement for the sale by Cornell of the shares which may be
      acquired upon conversion or default under the secured convertible debentures
      and
      upon exercise of the warrants. Such registration statement was filed in May
      2006, and the $5,000,000 balance of the net proceeds was paid to us. Prior
      to
      the August 2006 amendments to the investment agreements described below, Cornell
      was obligated to purchase another $5,000,000 of the secured convertible
      debentures on the date the registration statement is declared effective by
      the
      SEC.
In
      July
      2006, we and Cornell agreed to amend the investment agreements described above,
      effective as of their original issue dates, as follows:
·
to
                provide for a floor price of $0.05 on the adjustable conversion price
                of
                the secured convertible debentures;
·
to
                provide for a floor price of $0.05 per share on the exercise price
                of the
                warrants applicable to adjustments with respect to certain future
                issuances of securities by us, and upon certain distributions of
                assets
                and similar recapitalization events;
·
to
                extend the deadline for having the registration statement under the
                investor registration rights agreement declared effective until August
                12,
                2006; and
·
to
                cap liquidated damages payable in respect of failure to have an effective
                registration statement at 15% of the liquidated value of the debentures
                outstanding.
In
      addition, on August 17, 2006, we and Cornell agreed to further amend the
      investment agreements described above, as follows:
·
to
                provide for the purchase by Cornell of $1,500,000 of the remaining
                secured
                convertible debentures as of the date of the amendment, with the
                remaining
                $3,500,000 to be purchased by Cornell upon the effectiveness of the
                registration statement that we are required to file pursuant to the
                investor registration rights
                agreement;
-2-
·
to
                waive any breaches of the investment agreements with Cornell related
                to
                our tax withholding liabilities more fully described in Amendment
                No. 2 to
                our Form 8-K/A filed with the SEC on August 8, 2006;
·
to
                further extend the deadline under the investor registration rights
                agreement for having a registration statement declared effective
                until
                September 5, 2006; and
·
to
                reduce the exercise price of the warrant to be issued in connection
                with
                Cornell's purchase of the remaining $5,000,000 of secured convertible
                debentures to $.80 from $1.50 per share, and increase the total number
                of
                warrant shares underlying such warrant to 6,250,000 from 3,000,000.
                Such
                warrant was issued on the date of the
                amendment.
In
      addition, Cornell granted us a waiver of certain of the restrictive covenants
      contained in the investment agreements to permit us to take certain remedial
      actions relative to our tax withholding liabilities described in the August
      8,
      2006 Form 8-K/A, including the following with respect to any officer or
      employee: repurchasing vested shares, canceling any unvested shares, granting
      substitute equity awards, or permitting such persons to sell, pledge or transfer
      their shares shares.
The
      foregoing descriptions are qualified in their entirety by reference to the
      amended investment agreements filed as Exhibits 99.9, 99.10, 99.11, 99.12,
      99.13, 99.14, 99.15, 99.16, 99.17 and 99.18 to this report.
Amendment
      of Prueitt License Agreement
In
      July
      2006, our company and Dr. Melvin Prueitt signed an Amended and
      Restated Technology License Agreement related to Suncone™ CSP (concentrating
      solar power) technology.  This agreement allows use of Dr. Prueitt's
      patent-pending technology including use of it in connection with collecting
      solar energy for both electrical power generation and water desalination.
 Material changes to the original agreement are:
·
elimination
                of our minimum royalty payment obligations;
·
replacement
                of a staggered royalty rate structure with a flat percentage equal
                to the
                prior lowest staggered royalty rate;
·
modification
                of the vesting schedule applicable to the warrant granted to Dr.
                Prueitt
                in connection with the license agreement to provide for quarterly
                vesting
                of 300,000 shares beginning on September 30, 2006 (with the final
                133,438
                shares vesting on June 30, 2008), and modification of the warrant
                to
                survive any termination of the license agreement, such that it will
                expire
                only pursuant to its own terms; and
·
the
                addition of the right of either party to terminate the agreement
                upon 90
                days notice without cause.
If
      not terminated earlier, the license provided by the license agreement will
      expire the later of January 27, 2026 or the date of expiration of the last
      to
      expire of any issued patent within the patent rights subject to the license
      agreement.  We also agreed to fund a six month development project to
      develop a working prototype of a solar collector and to expend or devote
      resources equal to at least $300,000 during such time period, which obligation
      has been satisfied.
The
      foregoing descriptions are qualified in their entirety by reference to the
      Amended and Restated Technology License Agreement and Warrant to Purchase Common
      Stock filed as Exhibits 99.19 and 99.20 to this report.
Technology
      Consulting Agreement with Dr. Prueitt
On
      July
      10, 2006, we entered into a technology consulting agreement with Dr. Prueitt
      pursuant to which Dr. Prueitt will work with us to develop and
      commercialize Suncone™ CSP, assist in the identification and development of new
      renewable energy and water desalination and related Suncone™ CSP technologies
      and to provide other related services. Dr. Prueitt will receive up to $10,000
      per month for these services (payable upon monthly invoices), and will be
      reimbursed for reasonably necessary expenses. As previously agreed, we will
      issue and sell to Dr. Prueitt 100,000 shares of common stock in
      consideration of the termination of minimum royalties provided in the original
      Suncone™ CSP Technology License Agreement and the Amended and Restated
      Technology License Agreement dated July 10, 2006, which shares we agreed to
      register for resale on the next registration statement we file with the SEC.
-3-
We
      will
      own all the intellectual property rights related to Suncone™ CSP for work done
      by Dr. Prueitt under the agreement. In addition, Dr. Prueitt has granted us
      a
      right of first negotiation and right of first refusal related to developments
      in
      the field of production of renewable energy, the desalination of water and
      related industrial applications, except for developments related to the kinetic
      pump or ocean thermal energy conversion. The agreement supersedes all previous
      agreements between us and Dr. Prueitt relating to his engagement as a consultant
      and related compensation, including the Amended and Restated Technology License
      Agreement dated March 17, 2005 and the Technology Consulting Agreement dated
      August 20, 2005. Either party may terminate the agreement, with or without
      cause, upon 90 days written notice.
The
      foregoing descriptions are qualified in their entirety by reference to the
      Technology Consulting Agreement filed as Exhibit 99.21 to this
      report.
Lease
      of Manufacturing Space in Grass Valley
On
      April
      12, 2006, we entered into a lease agreement with J.R. Associates, 11 to lease
      approximately 8,000 square feet of additional manufacturing space located at
      1415 Whispering Pines Lane, Grass Valley, California. This lease is for a three
      year term beginning October 1, 2006. We have agreed to pay $5,972 per month
      for
      the first 12 months for the additional space. In addition, we are responsible
      for paying the following expenses under the agreement related to the leased
      property: real property taxes, utilities, insurance premiums, common area
      expenses (pro rata share), impounds for insurance premiums and property taxes,
      maintenance, repairs and alterations.
The
      foregoing descriptions are qualified in their entirety by reference to
      the office lease filed as Exhibit 99.22 to this
      report.
Employment
      Agreement with Don Rogers
On
      April
      4, 2006, we appointed Don Rogers Executive Vice President, East Coast
      Operations, and entered into an employment agreement with him. The term of
      his
      employment agreement is through March 31, 2007. The agreement provides for
      an
      annual base salary of CDN $150,000 plus annual bonuses as determined by our
      board of directors, based upon our financial performance and Mr. Roger's
      performance. In addition, we agreed to grant Mr. Rogers an option to acquire
      150,000 shares of our common stock, which option vests quarterly, provided
      that
      he remains employed by us, through March 31, 2009, at an exercise price of
      $1.50 per share. Such option has not yet been granted and we intend to grant
      such option pursuant to a special, non-stockholder approved option plan. If
      Mr.
      Rogers is terminated without just cause after March 31, 2007, we
      are obligated to pay him the greater of five months' base salary or the
      severance required by the laws of Aurora, Ontario where he is employed. Finally,
      Mr. Rogers is entitled to certain benefits and reimbursement of expenses, as
      set
      out in the employment agreement.
The
      foregoing descriptions are qualified in their entirety by reference to the
      employment agreement filed as Exhibit 99.23  to this
      report.
Compensatory
      Grants of Shares of Common Stock
On
      April
      10, 2006, we agreed to grant to a non-executive employee 75,000 restricted
      shares of our common stock pursuant to the terms of an employment agreement.
      Such shares are granted in equal quarterly installments, commencing in June
      2006, subject to continued employment with us, with the last installment
      scheduled to be made on March 31, 2009. On February 9, 2006, we granted
      10,000 shares of restricted stock to another non-executive employee as
      compensation. The grants to these employees were approved by our board of
      directors, without stockholder approval.
-4-
Customatrix
      Agreement
On
      December 1, 2005, we entered into a Financial & Management Accounting
      Services Project Work Agreement with Customatrix, Inc., a corporation 50% owned
      by Cheryl Bostater, our chief financial officer. Pursuant to this agreement,
      Customatrix has agreed to provide bookkeeping services until a controller was
      hired (which hiring occurred in April 2006), as well as other financial advisory
      services as required at an hourly rate ranging from $40 to $170 per hour based
      on the level of services requested. Either party may terminate the agreement
      upon 30 days prior written notice. On May 18, 2006, we entered into an
      engagement letter with Customatrix to provide a purchase price allocation under
      SFAS No. 141 for Connect Renewable Energy, Inc. and Solar Roofing Systems,
      Inc.
      for a fixed fee of $16,000.
The
      foregoing descriptions are qualified in their entirety by reference to the
      Financial & Management Accounting Services Project Work Agreement filed as
      Exhibit 99.24.
Item
              9.01
Financial
                Statements and Exhibits.
(c)
Exhibits.
99.1
Second
                Amended and Restated Common Stock Purchase Warrant issued to Coach
                Capital
                LLC
99.2
Second
                Amended and Restated Common Stock Purchase Warrant issued to Eversource
                Group Limited
99.3
Second
                Amended and Restated Common Stock Purchase Warrant issued to Bank
                Sal.
                Oppenheim jr. & Cie (Schweiz)
                AG
99.4
Second
                Amended and Restated Common Stock Purchase Warrant issued to Nadelson
                Internacional S.A.
99.5
Second
                Amended and Restated 0% Subordinated Mandatory Convertible Debenture
                issued to Coach Capital LLC
99.6
Second
                Amended and Restated 0% Subordinated Mandatory Convertible Debenture
                issued to Eversource Group Limited
99.7
Second
                Amended and Restated 0% Subordinated Mandatory Convertible Debenture
                issued to Bank Sal. Oppenheim jr. & Cie (Schweiz)
                AG
99.8
Second
                Amended and Restated 0% Subordinated Mandatory Convertible Debenture
                issued to Nadelson Internacional
                S.A.
99.9
Amendment
                No. 2 to Investor Registration Rights Agreement with Cornell Capital
                Partners, LP
99.10
Amendment
                No. 2 to Securities Purchase Agreement with Cornell Capital Partners,
                LP
99.11
Warrant
                to Purchase Common Stock Issued to Cornell Capital Partners,
                LP
99.12
Waiver
                with Cornell Capital Partners, LP
99.13
Secured
                Convertible Debenture No. CCP-3 issued to Cornell Capital Partners,
                LP
-5-
99.14
Amendment
                No. 1 to Securities Purchase Agreement with Cornell Capital Partners,
                LP
99.15
Amendment
                No. 1 to Secured Convertible Debenture No. CCP-1 issued to Cornell
                Capital
                Partners, LP
99.16
Amendment
                No. 1 to Secured Convertible Debenture No. CCP-2 issued to Cornell
                Capital
                Partners, LP
99.17
Amendment
                No. 1 to Warrant No. CCP-001 issued to Cornell Capital Partners,
                LP
99.18
Amendment
                No. 1 to Warrant No. CCP-002 issued to Cornell Capital Partners,
                LP
99.19
Amended
                and Restated Technology License Agreement dated July 10, 2006 with
                Dr.
                Melvin Prueitt
99.20
Common
                Stock Purchase Warrant dated July 10, 2006 issued to Dr. Melvin Prueitt
99.21
Technology
                Consulting Agreement dated July 10, 2006 with Dr. Melvin
                Prueitt
99.22
Office
                Lease dated April 12, 2006 with JR Associates,
                11
99.23
Don
                Rogers Employment Agreement dated April 4,
                2006
99.24
Financial
                & Management Accounting Services Project Work Agreement dated May 18,
                2006 with
Customatrix,
                Inc.
-6-
SIGNATURE
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.
OPEN
                ENERGY CORPORATION
Date:
                August 18, 2006
By:
/s/
                Cheryl Bostater
Cheryl
                Bostater
Chief
                Financial Officer
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