rjrcollaboration.htm

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 24, 2009

ECOLOGY COATINGS, INC.

(Exact name of registrant as specified in its charter)

Nevada	333-91436	26-0014658
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(State or other jurisdiction incorporation)	(Commission File Number)	(IRS Employer or Identification No.)

2701 Cambridge Court, Auburn Hills, MI 48326

___________________________________________________

(Address of principal executive offices, including zip code)

Registrant’s telephone number, including area code

248-370-9900

(Former Name or Former Address, if Changed Since Last Report.)

___________________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 1.01. Entry into a Material Definitive Agreement.

On August 21, 2009, we entered into a Collaboration Agreement with Reynolds Innovations Inc. (“Reynolds”) for the application of our patent pending technology for Reynolds “fire standards compliant” (FSC) cigarettes. The Agreement has a framework of successive testing milestones and payments totaling $700,000 if we successfully pass every milestone. If chemistry, sensory and FSC standards tests are passed, we will begin negotiations on a royalty agreement for the production and sale of FSC cigarettes. The parties have outlined in the Agreement the anticipated range of royalty payments from $1,200,000 to $18,000,000 annually. Reynolds has limited exclusivity for use of our technology for tobacco products until the later to occur of December 1, 2011 or the entry into a royalty agreement.

Item 9.01. Financial Statements and Exhibits

Item 9.01	Financial Statements and Exhibits

(c)	Exhibits

10.68	Collaboration Agreement between the Company and Reynolds Innovations Inc. dated April 1, 2009

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		ECOLOGY COATINGS, INC.

DATE: August 21, 2009		By: /s/ Daniel V. Iannotti
		Daniel V. Iannotti
		Vice President, General Counsel & Secretary