8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES AND EXCHANGE ACT OF 1934

September 21, 2007

Date of report (Date of earliest event reported)

C2 GLOBAL TECHNOLOGIES INC.

(Exact Name of Registrant as Specified in its Charter)

FLORIDA

(State or Other Jurisdiction of

Incorporation or Organization)

0-17973	59-2291344
(Commission File No.)	(I.R.S. Employer Identification No.)

40 King Street West, Suite 3200, Toronto, Ontario, Canada, M5H 3Y2

(Address of Principal Executive Offices and Zip Code)

(416) 866-3000

(Registrants Telephone Number, Including Area Code)

N/A

(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))

Section 1 - Registrant’s Business and Operations

Item 1.01Entry into a Material Definitive Agreement

As disclosed in Item 2.01 below, on September 21, 2007, C2 Global Technologies Inc., a Florida corporation (together, with all subsidiaries and affiliates, the “Company”), through its wholly-owned subsidiary, C2 Investments Inc., a Delaware corporation (the “Subsidiary”), executed certain agreements in connection with the Company’s acquisition of an ownership interest in AZ Limos LLC (“AZ Limos”). See Item 2.01 for a discussion of the acquisition and the terms and provisions of the underlying agreements.

Section 2 - Financial Information

Item 2.01Completion of Acquisition or Disposition of Assets

On September 25, 2007, the Company announced the closing of its acquisition of an ownership interest in AZ Limos. AZ Limos was incorporated in July 2007 to acquire the assets and operations of Limos.com, a private provider of qualified leads for licensed limousine operators. AZ Limos was capitalized with a total of $2,500,000. The Company acquired 400,000 units of AZ Limos, representing a 16% ownership interest in AZ Limos, in consideration for a total subscription price of $400,000. The Company’s investment was funded in full by its majority stockholder, Counsel Corporation (“Counsel”), through an advance under an existing inter-company loan agreement by and between the related parties.

AZ Limos acquired the assets and operations of Limos.com for $4,300,000, which was funded by $2,300,000 of the $2,500,000 raised from investors and $2,000,000 in financing (the “Loan”) from a third party lender (the “Lender”). The Loan bears an effective interest rate of 10.5% per annum, is secured by all the assets of AZ Limos and is payable beginning April 15, 2008 through March 15, 2011 in an initial installment of $55,575, and, thereafter, in monthly installments of $55,555. All investors have pledged their securities in AZ Limos as security for the Loan and certain other investors have guaranteed $750,000 of the Loan. Consequently, the Company has pledged its units of AZ Limos acquired in the sale of AZ Limos’ ownership interests as security for the Loan in accordance with the terms and provisions of a certain Pledge Agreement dated as of September 21, 2007, by and among all of the investors in AZ Limos and the Lender (the “Pledge Agreement”). Additionally, Counsel has guaranteed $250,000 of the Loan on the Company’s behalf.

Contemporaneously with the Company’s investment in AZ Limos and Counsel’s $250,000 guaranty, the Company, the Subsidiary, Counsel and the Lender entered into a certain Priorities Agreement dated as of September 21, 2007 (the “Priorities Agreement”). Under the terms of the existing inter-company loan agreement between the Company and Counsel, the Company had pledged all of its assets to Counsel as security for loan funding from Counsel. The Priorities Agreement subordinates Counsel’s claim to the Company’s investment in AZ Limos in favor of the Lender.

    An entity in which Counsel holds a 50% ownership interest (the “Affiliate”) is entitled to earn a 2% per annum management fee, based on the invested capital of AZ Limos, in return for managing the operations of AZ Limos, pursuant to the terms of an operating agreement between the Affiliate and the investors in AZ Limos. In addition, the Affiliate will hold two of the four seats on AZ Limos’ Board of Directors. The Company’s Chief Executive Officer, who is also Counsel’s Chief Executive Officer, is a director of the Affiliate. Certain third party investors have a 20% carried interest in AZ Limos, which will be payable after all investors have received an annual 10% return on their capital investment from earnings generated by AZ Limos’ operations and after all investors have received the return in full of their invested capital.

The Pledge Agreement and the Priorities Agreement also contain various other terms and provisions customary for agreements of this nature. The foregoing is a summary of the material terms and provisions of such agreements, copies of which are filed as exhibits hereto.

Section 8 - Other Events

Item 8.01Other Events

On September 25, 2007, the Company issued a press release announcing the foregoing events, among other things. A copy of this press release is attached as Exhibit 99.1 hereto. The reader is advised to read this press release in its entirety.

Section 9 - Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits.

(d)	Exhibit No.	Description
	10.1	The Pledge Agreement dated as of September 21, 2007.
	10.2	The Priorities Agreement dated as of September 21, 2007.
	99.1	Press Release dated September 24, 2007.

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 thereunto duly authorized.

	C2 Global Technologies Inc.
Date: September 26, 2007	By:	/s/ Allan C. Silber
		Name:	Allan C. Silber
		Title:	Chairman of the Board and Chief Executive Officer

EX-10.1

Exhibit 10.1

PLEDGE AGREEMENT

This PLEDGE AGREEMENT, dated as of September __, 2007 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, this “Agreement”), is made by each of the undersigned pledgors (collectively, the “Pledgors”) in favor of ROYNAT BUSINESS CAPITAL INC., a Delaware corporation (“Lender”).

W I T N E S S E T H:

WHEREAS, pursuant to a Secured Promissory Note, dated as of the date hereof (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Note”), by and between AZ LIMOS LLC, an Arizona limited liability company (the “Borrower”), and the Lender and the other Loan Documents referred to therein, the Lender has agreed to provide a loan to the Borrower in the aggregate amount of up to $2,000,000;

WHEREAS, as a condition precedent to the making of the advances under the Note, the Pledgors are required to execute and deliver this Agreement, pledging all the issued and outstanding equity interests in the Borrower to Lender as set forth herein; and

WHEREAS, Pledgor has duly authorized the execution, delivery and performance of this Agreement;

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and in order to induce the Lender to make Loans to the Borrower pursuant to the Note, each Pledgor agrees, for the benefit of the Lender, as follows:

ARTICLE I

DEFINITIONS

1.1Definitions. Unless otherwise defined herein or the context otherwise requires, terms used in this Agreement, including its preamble and recitals, have the meanings provided in the Note.

1.2UCC Definitions. Unless otherwise defined herein or the context otherwise requires, terms for which meanings are provided in the UCC are used in this Agreement, including its preamble and recitals, with such meanings.

ARTICLE II

PLEDGE

2.1Grant of Security Interest. Each Pledgor hereby pledges, assigns, charges, mortgages, delivers, and transfers to the Lender, and hereby grants to the Lender, a continuing security interest in all of its right, title and interest in and to the following property of such Pledgor, whether now or hereafter existing or acquired (collectively, the “Collateral”):

(a)all membership and any other equity or ownership interests (“Membership Interests”) in and to Borrower now owned, and all additional Membership Interests in and to Borrower from time to time created or otherwise acquired, by such Pledgor, including, (i) Borrower’s limited liability company agreement dated on or about the date hereof (the “Operating Agreement”), (ii) all claims of such Pledgor for damages arising out of or for breach of or default under such Operating Agreement, (iii) the right of such Pledgor to terminate such Operating Agreement, to perform and exercise consensual or voting rights thereunder, and to compel performance and otherwise exercise all remedies thereunder, and (iv) all certificates or instruments, if any, evidencing such Membership Interests (such Membership Interests being referred to herein as the “Pledged Membership Interests”);

(b)all distributions, principal, interest and other payments and rights with respect to any of the items listed in clause (a) above; and

(c)all Proceeds of any and all of the foregoing Collateral.

2.2Security for Secured Obligations. The Collateral of Pledgors under this Agreement secures the prompt payment in full of all obligations of the Borrower under the Loan Documents (the “Secured Obligations”).

2.3Delivery of Collateral. All certificates or instruments representing or evidencing any Collateral, including all Pledged Membership Interests, shall be delivered to and held by or on behalf of the Lender pursuant hereto, shall be in suitable form for transfer by delivery, and shall be accompanied by all necessary instruments of transfer or assignment, duly executed in blank.

2.4Dividends on Pledged Membership Interests. In the event that any distribution is permitted under the Note to be paid on any Pledged Membership Interest at a time when no Event of Default (as hereinafter defined) has occurred and is continuing, such distribution may be paid directly to Pledgors. If any Event of Default has occurred and is continuing, then any such distribution shall be paid directly to the Lender.

2.5Continuing Security Interest; Transfer of Credit Extensions. This Agreement shall create a continuing security interest in the Collateral and shall (a) remain in full force and effect until all the Secured Obligations are paid in full in cash and the Note is terminated in accordance with its terms (the “Termination Date”), (b) be binding upon each Pledgor and its successors, transferees and assigns, and (c) inure, together with the rights and remedies of the Lender hereunder, to the benefit of the Lender.

2.6Security Interest Absolute. All rights of the Lender and the security interests granted to the Lender hereunder, and all obligations of Pledgors hereunder, shall be, absolute and unconditional, irrespective of any of the following conditions, occurrences or events:

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(a)any lack of validity or enforceability of any Loan Document;

(b)the failure of Lender to assert any claim or demand or to enforce any right or remedy against the Borrower, any Pledgor or any other Person under the provisions of any Loan Document, or otherwise or to exercise any right or remedy against any other guarantor of, or collateral securing, any Secured Obligation;

(c)any change in the time, manner or place of payment of, or in any other term of, all or any of the Secured Obligations or any other extension, compromise or renewal of any Secured Obligation, including any increase in the Secured Obligations resulting from the extension of additional credit to any Pledgor or the Borrower;

(d)any reduction, limitation, impairment or termination of the Secured Obligations for any reason, including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to (and each Pledgor hereby waives any right to or claim of) any defense or setoff, counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality, non-genuineness, irregularity, compromise, unenforceability of, or any other event or occurrence affecting, any Secured Obligation or otherwise;

(e)any amendment to, rescission, waiver, or other modification of, or any consent to departure from, any of the terms of any Loan Document;

(f)any addition, exchange, release, surrender or non-perfection of any collateral, or any amendment to or waiver or release of or addition to or consent to departure from any guaranty, for any of the Secured Obligations; or

(g)any other circumstances which might otherwise constitute a defense available to, or a legal or equitable discharge of, any Pledgor, the Borrower or otherwise.

2.7Pledgors Remain Liable. Anything herein to the contrary notwithstanding (a) the exercise by the Lender of any of its rights hereunder shall not release Pledgors from any of their respective duties or obligations under any contracts or agreements included in the Collateral and (b) the Lender shall not have any obligation or liability under any such contracts or agreements included in the Collateral by reason of this Agreement, nor shall the Lender be obligated to perform any of the obligations or duties of any Pledgor or to take any action to collect or enforce any claim for payment assigned hereunder.

2.8Release; Termination. Upon the Termination Date, the pledge, assignment and security interest granted hereby shall terminate and all rights to the Collateral shall revert to the applicable Pledgor. Upon any such termination, the Lender will, at each Pledgor’s expense (as to any out-of-pocket expenses of Lender) and without any representations, warranties or recourse of any kind whatsoever, execute and deliver to such Pledgor such documents as such Pledgor shall reasonably request to evidence such termination and deliver to such Pledgor all certificates and instruments representing or evidencing the Collateral pledged by such Pledgor and then held by the Lender.

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ARTICLE III

REPRESENTATIONS AND WARRANTIES

Each Pledgor represents and warrants to Lender, as at the date hereof as follows:

3.1Ownership; No Liens, etc. (a)Schedule I hereto completely and accurately identifies as of the date hereof all of the Membership Interests of such Pledgor in and to the Borrower;

(b)Pledgor is the legal and beneficial owner of, and has good and marketable title to (and has full right and authority to pledge and assign) such Collateral, free and clear of all liens and other encumbrances, except for (i) the security interest granted pursuant hereto in favor of the Lender, (ii) each Pledgor’s obligations under the Operating Agreement and (iii) each Pledgor’s obligations set forth in Schedule I hereto (collectively, “Permitted Liens”);

(c)The Membership Interests are uncertificated.

3.2Valid Security Interest. The execution and delivery of this Agreement and the delivery of all certificated Pledged Membership Interests to the Lender are effective to create a valid, perfected, first priority security interest in such Collateral and all Proceeds thereof, subject to no Liens other than Permitted Liens, securing the payment of the Secured Obligations. No filing or other action will be necessary to perfect or protect such security interest, except with respect to the Pledged Membership Interests.

3.3As to Pledged Membership Interests. (a) All of the Pledged Membership Interests are duly authorized and validly issued, fully paid, and non-assessable, constitute 100% of all Membership Interests in and to the Borrower and represent all of the issued and outstanding Membership Interests held by Pledgors in and to the Borrower.

(b)The Operating Agreement, true and complete copies of which has been furnished to the Lender, has been duly authorized, executed, and delivered by Pledgors, has not been amended or otherwise modified, is in full force and effect, and is binding upon and enforceable against Pledgors in accordance with its terms. There exists no default under the Operating Agreement by Pledgors.

(c)Each Pledgor had and has the power and legal capacity to execute and carry out the provisions of the Operating Agreement to the extent such provisions apply to such Pledgor. Each Pledgor has substantially performed all of its obligations to date under the Operating Agreement, and has not received notice of the failure of any other party thereto to perform its obligations thereunder.

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3.4Authorization, Approval, etc. Except for authorizations or approvals that have been obtained as of the date hereof, no authorization, approval, or other action by, and no notice to or filing with, any Governmental Authority or any other Person is required either:

(a)for the pledge by each Pledgor of the Collateral pursuant to this Agreement or for the execution, delivery, and performance of this Agreement by such Pledgor; or

(b)for the exercise by the Lender of the voting or other rights provided for in this Agreement or the remedies in respect of the Collateral pursuant to this Agreement, except as may be required in connection with a disposition of such Pledged Membership Interests by laws affecting the offering and sale of securities generally.

ARTICLE IV

COVENANTS

Each Pledgor covenants and agrees that, until the Termination Date, Pledgor will perform the obligations set forth in this Article IV.

4.1Protect Collateral; Further Assurances, etc. (a) No Pledgor will create or suffer to exist any lien or other encumbrance on the Pledged Membership Interests except Permitted Liens. Each Pledgor will warrant and defend the right and title herein granted unto the Lender in and to the Collateral (and all right, title, and interest represented by the Collateral) against the claims and demands of all Persons whomsoever.

(b)Each Pledgor agrees that at any time, and from time to time, at the expense of such Pledgor, it will promptly execute and deliver all further instruments, and take all further action, that may be necessary, or that the Lender may reasonably request, in order to perfect and protect any security interest granted or purported to be granted hereby or to enable the Lender to exercise and enforce its rights and remedies hereunder with respect to any Collateral.

4.2Powers, Control, etc. (a) Each Pledgor agrees to deliver to Lender on the date hereof all of its certificated Pledged Membership Interests, which will be accompanied by duly executed undated blank powers, or other equivalent instruments of transfer acceptable to the Lender.

(b)With respect to uncertificated Pledged Membership Interests, each Pledgor will cause the Borrower to deliver a written acknowledgement and agreement to the Lender (A) acknowledging the security interest of the Lender in such Pledged Membership Interests, (B) confirming that the Borrower has marked the company register for such Pledged Membership Interests or other applicable records to reflect such security interest of the Lender, (C) confirming to the Lender that the Borrower has not received notice of any lien or other encumbrance (other than Permitted Liens) upon any Pledged Membership Interests and that it has not agreed to accept instructions from any Person in respect of such Pledged Membership Interests and will not accept or execute any instructions to transfer ownership of such Pledged Membership Interests except from Lender, and (D) agreeing with each Pledgor for the benefit of the Lender that, upon the occurrence and continuation of an Event of Default, the Borrower will comply with instructions with respect to such Pledged Membership Interests originated by the Lender without further consent of any Pledgor, such acknowledgement and agreement to be in form and substance reasonably satisfactory to the Lender.

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(c)Each Pledgor will, from time to time upon the request of the Lender, promptly deliver to the Lender such powers, instruments, and similar documents, satisfactory in form and substance to the Lender, with respect to the Collateral as the Lender may reasonably request and will, from time to time upon the request of the Lender upon the occurrence of any Event of Default, promptly transfer any Pledged Membership Interests or other Membership Interests in the Borrower into the name of any nominee designated by the Lender.

4.3Continuous Pledge. Each Pledgor will, at all times, keep pledged to the Lender pursuant hereto all Collateral, all distributions with respect thereto, and other securities, instruments, proceeds, and rights from time to time received by or distributable to such Pledgor in respect of the Pledged Membership Interests.

4.4Voting Rights; Dividends, etc. Each Pledgor agrees if an Event of Default shall have occurred and be continuing:

(a)without any request therefor by the Lender, such Pledgor shall, promptly upon receipt thereof by Pledgor, deliver (properly indorsed where required hereby or requested by the Lender) to the Lender all distributions, interest, principal, other cash payments, and proceeds of the Pledged Membership Interests, all of which shall be held by the Lender as additional collateral for use in accordance with Section 6.3; and

(b)at such times as Lender has notified Pledgors of the Lender’s intention to exercise its voting power under this clause:

(i)the Lender may exercise (to the exclusion of Pledgors) the voting power and all other incidental rights of ownership with respect to any Pledged Membership Interests and such Pledgor hereby grants the Lender an irrevocable proxy, exercisable under such circumstances, to vote the Pledged Membership Interests; and

(ii)such Pledgor shall promptly deliver to the Lender such additional proxies and other documents as may be necessary to allow the Lender to exercise such voting power.

The Lender agrees that until such time as an Event of Default has occurred and is continuing and the Lender shall have given the notice referred to in clause (b) above, each Pledgor shall have the exclusive voting power with respect to its Pledged Membership Interests; provided, however, that no vote shall be cast, or consent, waiver, or ratification given, or action taken or any action not taken by any Pledgor that would be inconsistent with or violate any provision of this Agreement, the Note or any other Loan Document.

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4.5As to Operating Agreement. (a) Each Pledgor shall at its own expense perform and observe all the material terms and provisions of the Operating Agreement to be performed or observed by it, maintain the Operating Agreement in full force and effect, enforce the Operating Agreement in accordance with its terms, and take all such action to such end as may from time to time be reasonably be requested by the Lender; and

(b)No Pledgor shall:

(i)cancel or terminate the Operating Agreement or consent to or accept any cancellation or termination thereof; or

(ii)amend, modify or take any other action in connection with the material terms and conditions of the Operating Agreement that would impair the value of the interest or rights of such Pledgor or that would impair the interest or rights of the Lender.

ARTICLE V

THE LENDER

5.1Lender May Perform. If any Pledgor fails to perform any agreement contained herein, the Lender may itself perform, or cause performance of, such agreement, and the reasonable expenses of the Lender incurred in connection therewith shall be payable by such Pledgor pursuant to Section 6.4.

5.2Lender Has No Duty. (a) The powers conferred on the Lender hereunder are solely to protect its interest in the Collateral and shall not impose any duty on it to exercise any such powers. Neither the Lender nor any of its officers, directors, employees or agents shall be liable for failure to demand, collect or realize upon any of the Collateral or for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any Collateral upon the request of Pledgors or any other Person or to take any other action whatsoever with regard to the Collateral. Neither the Lender nor any of its officers, directors, employees or agents shall be responsible to Pledgors for any act or failure to act hereunder, except for their own gross negligence or willful misconduct.

(b)Each Pledgor assumes all responsibility and liability arising from or relating to the use, sale or other disposition of the Collateral other than liabilities resulting from Lender’s gross negligence or willful misconduct. The Secured Obligations shall not be affected by any failure of the Lender to take any steps to perfect the pledge and security interest granted hereunder or to collect or realize upon the Collateral, nor shall loss or damage to the Collateral release Pledgors from any of their obligations hereunder.

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ARTICLE VI

REMEDIES

6.1Certain Remedies. If (x) any Pledgor fails to satisfy any of its obligations hereunder and such failure shall continue for 15 business days after notice thereof from Lender or (y) any “Event of Default” as defined in the Note shall have occurred (each, an “Event of Default”):

(a)The Lender may exercise in respect of the Collateral, in addition to other rights and remedies provided for herein or otherwise available to it, all the rights and remedies of a Lender on default under the UCC and also may, without demand of performance or other demand, presentment, protest, advertisement or notice of any kind (except any notice required by applicable law referred to below) to or upon Pledgors or any other Person (all and each of which demands, defenses, advertisements and notices are hereby waived), sell, lease, assign, give option or options to purchase, or otherwise dispose of and deliver the Collateral or any part thereof (or contract to do any of the foregoing) in one or more parcels at public or private sale, at any of the Lender’s offices or elsewhere, for cash, on credit or for future delivery, and upon such other terms as the Lender may deem commercially reasonable. Each Pledgor agrees that, to the extent notice of sale shall be required by applicable law, at least ten (10) days’ prior notice to Pledgors of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification. The Lender shall not be obligated to make any sale of Collateral regardless of notice of sale having been given. The Lender may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned.

(b)The Lender may:

(i)transfer all or any part of the Collateral into the name of the Lender or its nominee, with or without disclosing that such Collateral is subject to the lien and security interest hereunder;

(ii)notify the parties obligated on any of the Collateral to make payment to the Lender of any amount due or to become due thereunder;

(iii)enforce collection of any of the Collateral by suit or otherwise, and surrender, release or exchange all or any part thereof, or compromise or extend or renew for any period (whether or not longer than the original period) any obligations of any nature of any party with respect thereto;

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(iv)endorse any checks, drafts, or other writings in each Pledgor’s name to allow collection of the Collateral;

(v)take control of any proceeds of the Collateral;

(vi)execute (in the name, place and stead of Pledgor) endorsements, assignments, stock powers and other instruments of conveyance or transfer with respect to all or any of the Collateral; and

(vii)enforce compliance with, and take any and all actions with respect to, the Operating Agreement to the full extent as though the Lender were the absolute owner of the Pledged Membership Interests, and other Collateral, including the right to receive all distributions and other payments that are made pursuant to such Operating Agreement.

The Lender shall give Pledgors ten (10) days’ written notice (which each Pledgor agrees is reasonable notice within the meaning of Section 9-612 of the UCC) of the Lender’s intention to make any sale of Collateral. Such notice, in the case of a public sale, shall state the time and place for such sale and, in the case of a sale at a broker’s board or on a securities exchange, shall state the board or exchange at which such sale is to be made and the day on which the Collateral, or portion thereof, will first be offered for sale at such board or exchange. Any such public sale shall be held at such time or times within ordinary business hours and at such place or places as the Lender may fix and state in the notice (if any) of such sale. At any such sale, the Collateral, or portion thereof, to be sold may be sold in one lot as an entirety or in separate parcels, as the Lender may (in its sole and absolute discretion) determine. The Lender shall not be obligated to make any sale of any Collateral if it shall determine not to do so, regardless of the fact that notice of sale of such Collateral shall have been given. The Lender may, without notice or publication adjourn any public or private sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for sale, and such sale may, without further notice, be made at the time and place to which the same was so adjourned. In case any sale of all or any part of the Collateral is made on credit or for future delivery, the Collateral so sold may be retained by the Lender until the sale price is paid by the purchase or purchasers thereof, but the Lender shall not incur any liability in case any such purchaser or purchasers shall fail to take up and pay for the Collateral so sold and, in case of any such failure, such Collateral may be sold again upon like notice. At any public (or, to the extent permitted by law, private) sale made pursuant to this Section, the Lender (for the Lender) may bid for or purchase, free (to the extent permitted by law) from any right of redemption, stay, valuation or appraisal on the part of Pledgor (all said rights being also hereby waived and released to the extent permitted by law), the Collateral or any part thereof offered for sale and may make payment on account thereof by using any claim then due and payable to such Lender from Pledgors as a credit against the purchase price, and the Lender (for such Lender) may upon compliance with the terms of sale, hold, retain and dispose of such property without further accountability to Pledgors therefor.

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6.2Compliance with Restrictions. Each Pledgor agrees that in any sale of any of the Collateral whenever an Event of Default shall have occurred and be continuing, the Lender is hereby authorized to comply with any limitation or restriction (including without limitation the Securities Act of 1933 and applicable state securities laws) in connection with such sale as it may be advised by counsel is necessary in order to avoid any violation of applicable law (including compliance with such procedures as may restrict the number of prospective bidders and purchasers, require that such prospective bidders and purchasers have certain qualifications, and restrict such prospective bidders and purchasers to persons who will represent and agree that they are purchasing for their own account for investment and not with a view to the distribution or resale of such Collateral), or in order to obtain any required approval of the sale or of the purchaser by any Governmental Authority or official, and each Pledgor further agrees that such compliance shall not result in such sale being considered or deemed not to have been made in a commercially reasonable manner, nor shall the Lender be liable nor accountable to any Pledgor for any discount allowed by reason of the fact that such Collateral is sold in compliance with any such limitation or restriction.

6.3Application of Proceeds. All cash proceeds received by the Lender in respect of any sale of, collection from, or other realization upon, all or any part of the Collateral shall be applied in whole or in part by the Lender, first, to cover the reasonable costs and expenses of Lender in enforcing the this Agreement and the other Loan Documents and, second, for the benefit of the Lender against all or any part of the Secured Obligations. Any surplus of such cash or cash proceeds held by the Lender and remaining after the Termination Date, shall be paid over to the applicable Pledgor or to whomsoever may be lawfully entitled to receive such surplus.

6.4Indemnity and Expenses. Pledgors jointly and severally agree to indemnify and hold harmless the Lender and its affiliates, directors, officers, employees, counsel, agents and attorneys-in-fact (each, an “Indemnified Party”) for, from and against, and shall pay on demand, any and all liabilities, obligations, losses, damages, penalties, claims, demands, actions, judgments, suits, costs and expenses and disbursements (including reasonable legal fees and expenses) of any kind or nature whatsoever which may be at any time imposed on, incurred by or asserted against such Indemnified Party in any way relating to or arising out of or in connection with this Agreement and the other Loan Documents (including enforcement of this Agreement and the other Loan Documents), provided that such indemnity shall not, as to any Indemnified Party, be available to the extent that such liabilities, obligations, losses, damages, penalties, claims, demands, actions, judgments, suits, costs, expenses or disbursements are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnified Party. Pledgors will, upon demand, pay to the Lender the amount of any and all reasonable expenses, including its reasonable legal fees and expenses and the reasonable fees and disbursements of any experts and agents, which the Lender may incur, subject to the foregoing limitations, in connection with the following:

(a)the administration of this Agreement;

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(b)the custody, preservation, use or operation of, or the sale of, collection from, or other realization upon, any of the Collateral;

(c)the exercise or enforcement of any of the rights of the Lender hereunder; or

(d)the failure by Pledgors to perform or observe any of the provisions hereof.

6.5Waivers. Pledgors hereby waive any right, to the extent permitted by applicable law, to receive prior notice of or a judicial or other hearing with respect to any action or prejudgment remedy or proceeding by the Lender to take possession, exercise control over or dispose of any item of Collateral where such action is permitted under the terms of this Agreement or any other Loan Document or by applicable laws or the time, place or terms of sale in connection with the exercise of the Lender’s rights hereunder. Pledgors waive, to the extent permitted by applicable laws, any bonds, security or sureties required by the Lender with respect to any of the Collateral. Pledgors also waive any damages (direct, consequential or otherwise) occasioned by the enforcement of the Lender’s rights under this Agreement or any other Loan Document, including, the taking of possession of any Collateral, all to the extent that such waiver is permitted by applicable laws; provided, however, that the waiver contemplated hereby shall not apply to damages caused by the Lender’s gross negligence or willful misconduct. These waivers and all other waivers provided for in this Agreement and the other Loan Documents have been negotiated by the parties and each Pledgor acknowledges that it has been represented by counsel of its own choice and has consulted such counsel with respect to its rights hereunder.

ARTICLE VII

MISCELLANEOUS PROVISIONS

7.1Loan Document. This Agreement is a Loan Document executed pursuant to the Note and shall (unless otherwise expressly indicated herein) be construed, administered and applied in accordance with the terms and provisions thereof.

7.2Amendments, etc.; Successors and Assigns. (a)No amendment to or waiver of any provision of this Agreement nor consent to any departure by Pledgors herefrom, shall in any event be effective unless the same shall be in writing and signed by the Lender and, with respect to any such amendment, by Pledgors, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

(b)This Agreement shall be binding upon each Pledgor and its permitted successors, transferees and assigns and shall inure to the benefit of the Lender and its respective successors, transferees and assigns; provided, however, that no Pledgor may assign its obligations hereunder without the prior written consent of the Lender in its sole discretion.

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7.3Addresses for Notices. All notices and other communications provided for hereunder shall be in writing and mailed, delivered or transmitted by facsimile to any Pledgor at the address set forth on the signature page and to the Lender at the address set forth in the Note.

7.4Section Captions. Section captions used in this Agreement are for convenience of reference only, and shall not affect the construction of this Agreement.

7.5Severability. If any provision of this Agreement is held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Agreement shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

7.6Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument.

7.7Governing Law, etc. (a)THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, EXCEPT TO THE EXTENT THAT THE VALIDITY OR PERFECTION OF THE SECURITY INTEREST HEREUNDER, OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK; PROVIDED, THAT THE LENDER SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW.

(b)ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN EITHER (1) THE STATE COURTS OF THE STATE OF NORTH CAROLINA SITTING IN CHARLOTTE OR IN THE DISTRICT COURTS OF THE UNITED STATES SITTING IN CHARLOTTE OR (2) THE STATE COURTS OF NEW YORK OR SECOND CIRCUIT COURTS OF THE UNITED STATES, IN EITHER CASE, SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN; PROVIDED, HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY SHALL BE BROUGHT, AT THE LENDER’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. BY EXECUTION AND DELIVERY OF THIS AGREEMENT, PLEDGOR CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH PLEDGOR IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS AGREEMENT OR OTHER DOCUMENT RELATED THERETO. PLEDGOR HEREBY CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY THE MAILING OF A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, RETURN RECEIPT REQUESTED, TO PLEDGOR’S ADDRESS REFERRED TO IN SECTION 7.3. EACH PLEDGOR AGREES THAT SUCH SERVICE (i) SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON IT IN ANY SUCH SUIT, ACTION OR PROCEEDING AND (ii) SHALL, TO THE FULLEST EXTENT PERMITTED BY LAW, BE TAKEN AND HELD TO BE VALID PERSONAL SERVICE UPON AND PERSONAL DELIVERY TO IT. NOTHING IN THIS SECTION 7.7 SHALL AFFECT THE RIGHT OF THE LENDER TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW OR LIMIT THE RIGHT OF THE LENDER TO BRING PROCEEDINGS AGAINST PLEDGOR IN THE COURTS OF ANY JURISDICTION OR JURISDICTIONS.

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7.8Waiver of Jury Trial. EACH PLEDGOR HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF PLEDGOR AND LENDER OR ANY OF THEM WITH RESPECT TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND PLEDGOR HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT LENDER MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

7.9Entire Agreement. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES OR BY PRIOR OR CONTEMPORANEOUS WRITTEN AGREEMENTS. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

[Signature Page Follows]

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IN WITNESS WHEREOF, each Pledgor has caused this Agreement to be duly executed and delivered by its respective officer thereunto duly authorized as of the date first above written.

[PLEDGOR],

as a Pledgor

By:  

Name:

Title:

Notice Address:

[PLEDGOR],

as a Pledgor

By:  

Name:

Title:

Notice Address:

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ACKNOWLEDGED AND ACCEPTED:

ROYNAT BUSINESS CAPITAL INC.,

as Lender

By:

Name:

Title:

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EX-10.2

Exhibit 10.2

PRIORITIES AGREEMENT

THIS AGREEMENT dated as of the __day of September, 2007.

B E T W E E N:

COUNSEL CORPORATION, an Ontario company whose address is 40 King Street West, Suite 3200, Toronto, Ontario, M5H 3Y2

(hereinafter referred to as “Counsel” and “the Bank”)

OF THE FIRST PART;

- and -

ROYNAT BUSINES CAPITAL INC., a Delaware corporation, whose address is 100 North Tryon Street, Suite 3720, Charlotte, NC 28202

(hereinafter referred to as “Roynat”)

OF THE SECOND PART;

- and -

C2 Investments Inc., a Delaware corporation, whose address is is 40 King Street West, Suite 3200, Toronto, Ontario, M5H 3Y2

____________________________.

(hereinafter referred to as the “Company”)

OF THE THIRD PART;

and -

C2 Global Technologies Inc. (« C2 »)., a Delaware corporation, whose address is is 40 King Street West, Suite 3200, Toronto, Ontario, M5H 3Y2

____________________________.

(hereinafter referred to as the “C2”)

OF THE FOURTH PART;

WHEREAS, the Company and/or C2 has authorized, executed and delivered in favor of the Bank various notes, security agreements, financing statements (as amended or otherwise modified from time to time, the “BankSecurity Documents”);

WHEREAS, the Bank Security Documents and any other security which may be held by the Bank now or hereafter on the property and assets of the Company for its or C2’s existing indebtedness and any future indebtedness of the Company or C2 to the Bank are sometimes herein collectively referred to as the “Bank Security”;

WHEREAS, Roynat has agreed, subject to certain conditions, to provide financing to AZ LIMOS LLC, an affiliated party to the Company (“AZ LIMOS”), such financing to be secured by (among other things) a pledge agreement dated the date hereof, by the Company in favor of Roynat (as amended or otherwise modified from time to time, together with all other instruments entered into by the Company in connection therewith, the “Roynat Security Document”) pursuant to which the Company has pledged to Roynat all of its membership and related interests in AZ LIMOS (the “Pledged Interests”).

WHEREAS, the Roynat Security Documents and any other security which may be held by Roynat now or hereafter on the Pledged Interests for financing provided to AZ LIMOS by Roynat are sometimes herein collectively referred to as the “Roynat Security”;

WHEREAS, the parties hereto have agreed to enter into this Agreement in order to set out the respective priorities with respect to the Pledged Interest.

NOW THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby covenant, undertake, declare and agree as follows:

ARTICLE 1. - CONSENT

1.1.Bank Consent. The Bank hereby consents to the creation and issue by the Company to Roynat of the Roynat Security and that the creation, issue and existence of the same does not constitute a default or event of default under the Bank Security Documents.

ARTICLE 2. - SUBORDINATION

2.1.Relative Priorities. The Bank and Roynat hereby agree as follows:

(a)   the Bank Security solely with respect to the Pledged Interests is hereby subordinated in all respects to the Roynat Security; and

(b)   the parties hereto hereby agree that, except for the Pledged Interests and as expressly set forth in the foregoing clause (a), Roynat has no other security interests in any of the Bank Security and Roynat hereby acknowledges and agrees that any claim it may hereafter have on any Bank Security (other than the Roynat Security) shall be subordinated in all respects to the Bank Security.

2.2.Application of Subordination. The subordination contained herein shall apply in all events and circumstances regardless of:

(a)   the date of execution, attachment, registration or perfection of any security interest held by the Bank or Roynat; or

(b)   the date of any advance or advances made to the Company by the Bank or to AZ LIMOS by Roynat; or

(c)   the date of default by the Company or by the Company’s parent C2 under any of the Bank Security or the Roynat Security; or

(d)   any priority granted by any principle of law or any statute.

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2.3.Insurance Proceeds. Any insurance proceeds received by the Company or C2 by the Bank or Roynat in respect of the collateral charged by the Bank Security or the Roynat Security shall be dealt with according to the preceding provisions hereof as though such insurance proceeds were paid or payable as proceeds of realization of the collateral for which they compensate.

2.4.Notice of Default, Exercise of Remedies. The Company shall give prompt written notice to the Bank or Roynat, as applicable, of any default under the Bank Security Documents or the Roynat Security Documents and of any action taken by the other secured party against the Company or C2 to enforce its security.

ARTICLE 3. - COVENANTS OF COMPANY

3.1.The Company hereby confirms to and agrees with the Bank and Roynat that:

(a)   the Company’s entry into and performance of this Agreement has been duly authorized by all necessary corporate action;

(b)   so long as any of the indebtedness of the Company and AZ LIMOS herein referred to remains outstanding, it shall stand possessed of its assets so charged for the Bank and for Roynat in accordance with their respective interests and priorities as herein set out; and

(c)   none of the provisions of this Agreement create any rights in favor of the Company or affect the manner in which the Bank or Roynat or any receiver and manager appointed by them over the property, assets and undertaking of the Company exercises its rights under the Bank Security and the Roynat Security.

ARTICLE 4. - GENERAL

4.1.Information Exchange. From time to time upon request therefor the Bank and Roynat may advise each other of any information which it may have relating to the affairs of the Company, including its business and financial affairs and the particulars of the indebtedness and liability of the Company to each other and all security held by each therefor. The Company hereby consents to any such exchange of information.

4.2.No Challenge of Priorities. No party hereto shall take any action to defeat the priorities set forth in this Agreement or the validity, perfection, publication or enforceability of any lien granted under the Bank Security Documents or the Roynat Security Documents. Each of the Bank and Roynat hereby waives any right the other may have to require the other to marshal in its favour.

4.3.Further Assurances. Each of the Bank, Roynat and the Company shall do, perform, execute and deliver all acts, deeds and documents as may be necessary from time to time to give full force and effect to the intent of this Agreement; provided, however, that no consent of the Company shall be necessary to any amendment of the terms hereof by the Bank and Roynat unless the interests of the Company are directly affected thereby.

4.4.Counterparts. This Agreement may be executed in several counterparts, each of which when so executed shall be deemed to be an original and such counterparts together shall constitute one and the same instrument and shall be effective as of the formal date hereof.

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4.5.Binding Effect. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns.

4.6.Conflicting Provisions. Where there is any conflict between the provisions in this Agreement regarding the priority of the security of the parties hereto and similar provisions in the Bank Security Documents or the Roynat Security Documents, the provisions of this Agreement will prevail.

4.7.No Assignment. Neither the Bank nor Roynat shall assign all or part of any of its Bank Security or Roynat Security, as the case may be, without first obtaining a written agreement from the assignee under which the assignee agrees to be bound by the terms of this Agreement.

4.8.GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE CONFLICTS OF LAW PRINCIPLES THEREOF.

4.9.Limitation on Liabilities. Except as otherwise expressly provided herein, neither the Bank nor Roynat shall have any liability to the other except to the extent arising from the gross negligence or wilful misconduct of such party, nor shall the Bank nor Roynat have any liability to the Company for any action or inaction hereunder.

5.10Amendments. All modifications or amendments of this Agreement must be in writing and duly executed by an authorized officer of the Bank and Roynat and, to the extent such modification or amendment would increase the obligations of the Company hereunder, by an authorized officer of the Company.

5.11Entire Agreement. This Agreement constitutes the entire agreement among the parties with respect to the subject matter hereof and supersedes all prior negotiations, undertakings, representations and understandings.

5.12Severability. If any provision hereof is or is deemed to be illegal, invalid or unenforceable in any jurisdiction, the illegality, invalidity or unenforceability of such provision will not affect the legality, validity or enforceability of the remaining provisions of this Agreement.

5.13Termination. The Bank shall have no further rights or obligations hereunder once the Company’s obligations under the Bank Security Documents (except obligations that by their terms survive termination thereof) have been paid in full in cash (the “Bank Termination”). Roynat shall have no further rights or obligations hereunder once the Company’s obligations under the Roynat Security Documents (except obligations that by their terms survive termination thereof) have been fully performed (the “Roynat Termination”). This Agreement shall terminate and be of no further force and effect upon the first to occur of the Bank Termination and the Roynat Termination.

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 IN WITNESS WHEREOF the parties hereto have executed this Agreement under the hands of their duly authorized officers.

COUNSEL CORPORATION
By:
	Name:
	Title:

5

ROYNAT BUSINES CAPITAL INC.
By:
	Name:
	Title:

6

C2 GLOBAL TECHNOLOGIES INC.
By:
	Name:
	Title:

7

C2 INVESTMENTS INC.
By:
	Name:
	Title:

8

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

C2 GLOBAL TECHNOLOGIES INC. INVESTS

IN INTERNET-BASED BUSINESSES

TORONTO, CANADA, September 24, 2007 - C2 Global Technologies Inc. (“C2””) (OTCBB: COBT) today announced several recent investments in Internet-based businesses. All amounts are stated in US dollars.

AZ Limos LLC - On September 21, 2007, C2 invested $400,000, representing a 16% ownership interest, in AZ Limos LLC. AZ Limos was incorporated in July 2007 to acquire the assets and operations of Limos.com (www.limos.com), a private company with an established reputation as a leading provider of Internet initiated leads for licensed limousine operators. Limos.com was acquired for total consideration of $4.3 million, which was funded by $2.3 million from investors in AZ Limos and $2.0 million from a third party lender. An additional $0.2 million was raised from investors by AZ Limos for working capital purposes.

Knight’s Bridge Capital Corporation (“KBC”), a 50% owned affiliate of Counsel Corporation (“Counsel”), C2’s majority stockholder, will earn a 2% per annum management fee, based on the invested capital of AZ Limos, in return for directing AZ Limos’ strategic operations, and KBC will hold two of the four seats on AZ Limos’ Board of Directors. Certain third party investors have a 20% carried interest in AZ Limos, which shall be payable after all investors have received an annual 10% preferred return on their capital from earnings generated by AZ Limos as well as the return in full of their invested capital.

Buddy Media, Inc. - On September 12, 2007, C2 invested $100,000 in convertible Series A Preferred Stock of Buddy Media, Inc. (www.buddymedia.com), representing approximately 7% of Buddy Media’s preferred stock, or approximately 2.62% of Buddy Media on an as-converted basis. Buddy Media is a leading developer of applications for emerging new media platforms, including Facebook, MySpace and other social media sites. Within days of the launch of the Facebook Platform, Buddy Media launched seven applications that have been added by more than 300,000 Facebook users and accessed by millions of others.

MyTrade.com, Inc. - On August 23, 2007, C2 invested $75,000 in convertible Series A Preferred Stock of MyTrade.com, Inc. (www.mytrade.com), representing approximately 12.5% of MyTrade.com’s preferred stock, or approximately 3.57% of MyTrade.com on an as-converted basis. MyTrade.com is a website providing investors and potential investors of all experience levels with tickerized aggregate investment data and insight from across the Internet in a customized interface.

C2’s investments in AZ Limos, Buddy Media and MyTrade.com were funded by Counsel through advances under an existing intercompany loan agreement. C2’s ownership interests in these companies do not allow it to exercise significant influence over their operations.

“We are very excited about these new investments” said Allan Silber, C2’s Chairman and CEO. “We believe that on-line Internet-based businesses such as Limos.com present major growth opportunities as consumers increasingly turn to the Internet to provide goods and services, allowing such businesses to generate substantial fees and on-line advertising revenues.”

Forward-Looking Statements

 This release contains certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act, as amended, that are based on management’s exercise of business judgment as well as assumptions made by, and information currently available to, management. When used in this document, the words “may”, “will”, “anticipate”, “believe”, “estimate”, “expect”, “intend”, and words of similar import, are intended to identify any forward-looking statements. You should not place undue reliance on these forward-looking statements. These statements reflect our current view of future events and are subject to certain risks and uncertainties as noted in our securities and other regulatory filings. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, our actual results could differ materially from those anticipated in these forward-looking statements.We undertake no obligation, and do not intend, to update, revise or otherwise publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of any unanticipated events.Although we believe that our expectations are based on reasonable assumptions, we can give no assurance that our expectations will materialize. Many factors could cause actual results to differ materially from our forward-looking statements.

For further information regarding C2, please visit C2’s website at www.c-2technologies.com.

Contact:

Stephen A. Weintraub

Executive Vice President, Secretary & CFO

sweintraub@c-2technologies.com

(416) 866-3058

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