UNIVERSITY OF CALIFORNIA, SANTA BARBARA
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office of technology & industry alliances
SANTA BARBARA,
 
CALIFORNIA  93106-2055
 
Fax:     (805) 893-5236

May 11, 2010

VIA EMAIL
CONFIDENTIAL

LETTER OF INTENT

Appeal Capital Corp.
c/o Meetesh Patel
430 Park Avenue, Suite 702
New York, New York 10022

RE:           UC Case Nos.  2008-318 & 2008-538

Dear Mr. Patel:

In accordance with our discussions, I am pleased to confirm that The Regents of
the University of California (“The Regents”) will negotiate exclusively with
Appeal Capital Corp. (“Appeal Capital”) during the Term for an exclusive option
or license to The Regents’ rights in the inventions identified in the table
below (“Inventions”).

UC Case
Number
 
Title
 
Application Number
 
Filing Date
             
[****]
 
[****]
 
[****]
 
[****]
             
[****]
 
[****]
 
[****]
 
[****]
             
[****]
 
[****]
 
[****]
 
[****]

This offer to negotiate expires ten (10) days from the date at the top of this
letter if not fully executed and returned prior to that time.  This Letter of
Intent is effective as of May 11, 2010 and any promises or obligations contained
herein will expire on May 10, 2011 (the “Term”).  The Term may be extended for
one additional period of one (1) year upon the payment to The Regents of an
extension fee of Ten Thousand Dollars ($10,000) prior to the end of the Term.

This Letter of Intent comprises a promise by The Regents not to offer the
Inventions to others during the Term (and any extensions thereof) and a promise
to negotiate in good faith for an option or license agreement.  If an option or
license agreement has not been executed by the end of the Term, or any extension
thereof, The Regents will thereafter be free to seek other prospective licensees
for the Inventions.  This Letter of Intent does not in any way constitute a
license in itself.

Part of the negotiation contemplated for an option or license will be the mutual
discussion of a suitable business plan for the development and marketing of the
Inventions prepared by Appeal Capital and presented in writing to this office
prior to the end of the Term.

As consideration for the promises contained in this Letter of Intent, Appeal
Capital shall pay to The Regents the following:
 
 
 

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Appeal Capital
May 11, 2010
 
 
-
All patent costs related to the Inventions incurred by The Regents during the
Term (including any extensions); and

 
-
A one-time non-creditable, non-refundable fee of $[****].

 
A check in the amount of $[****] for the partial payment of the one-time fee
should be enclosed when this Letter of Intent is returned to The Regents for
final execution.  The check should be made out to The Regents of the University
of California. The other payment of $[****]is due within 45 days from the
execution of this Letter of Intent.

Patent costs incurred during the Term will be invoiced to Appeal Capital and
will be due thirty (30) days after the date of The Regents' invoice.  In the
event that patent costs, fees or other payments are not received by The Regents
when due, Appeal Capital will pay to The Regents interest charges at a rate of
ten percent (10%) per annum calculated from the date payment was due until
actually received by The Regents.  Nonpayment by Appeal Capital of any of the
invoices will, at The Regents’ discretion, automatically terminate this Letter
of Intent (after receipt of notice from The Regents and passage of a ten (10)
day cure period).  The obligation to pay fees and patent costs hereunder will
survive termination or expiration of this Letter of Intent.  If an option or
license agreement replaces this Letter of Intent, that agreement will extend the
commitment of full patent cost reimbursement by Appeal Capital for as long as
the new agreement remains in effect.  Payment may be made by wire transfer to an
account designated by The Regents.  Appeal Capital will cover the cost of any
associated wire transfer fees.

Appeal Capital may request in writing to be copied on the patent prosecution by
The Regents’ patent attorney during the Term and to provide input and comments
on the scope and the thrust of the patent claims being sought, as well as on the
prior art being considered.  This right is limited to providing comments only
and in no way is meant to include giving instructions to The Regents’ patent
counsel.  Appeal Capital agrees to keep all patent prosecution documents
strictly confidential.

Appeal Capital will pay to The Regents the estimated cost of any requested
patent filings, including national phase applications, in advance of The
Regents’ authorizing patent counsel to file such applications.

Appeal Capital may request that The Regents file national phase applications
based on the PCT application covering the Invention in the territories of its
choice, where available. The deadline to file for national phase entry is August
25, 2010. Appeal Capital must notify The Regents of its decision at least two
(2) months in advance of the deadline to file. Appeal Capital will be
responsible for the patent costs related to the countries selected by Appeal
Capital.  The Regents reserve the right to file in any countries not selected by
Appeal Capital.

If the foregoing terms are acceptable to you, please sign this Letter of Intent
and a duplicate original in the spaces provided below and return them to this
office.  I will then have both originals signed on behalf of The Regents and
return one fully signed original to you.  This Letter of Intent may be signed in
counterparts.  Facsimile and electronically scanned signatures shall have the
same effect as original signatures.

 
Sincerely,
     
Franco Caporale
 
Licensing Officer

 
 
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Appeal Capital
May 11, 2010

AGREED:

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APPEAL CAPITAL CORP.
 
THE REGENTS OF THE
   
UNIVERSITY OF CALIFORNIA
     
By:
    
 
By:
   
(Signature)
 
(Signature)
     
Name:
    
 
Name:
Sherylle Mills Englander
     
Title:
    
 
Title:
Director, Office of
     
Technology & Industry Alliances
     
Date:
    
 
Date:
 

 
 
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