**LICENSE        AGREEMENT**

**between**

**OcuSense        Inc.**

**and**

**The        Regents of the University of California**

**for**

**CASE        NO. SD2002-180**

**"Volume        Independent Tear Film Osmometer"**

*****The        following provisions of this Agreement have been omitted pursuant to a request        for confidential treatment and have been filed separately with the U.S.        Securities and Exchange Commission: Article 3 in its entirety (consisting        of        four pages) and a portion of Section 4.3.**

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**TABLE        OF CONTENTS**

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**LICENSE        AGREEMENT**

**THIS        AGREEMENT **

**THIS        AGREEMENT **

**RECITALS**

**WHEREAS,        **

**WHEREAS,        **

**WHEREAS,        **

**WHEREAS,        **

**WHEREAS,        **

**WHEREAS,        **

**WHEREAS,        **

**WHEREAS**

**NOW,        THEREFORE**

**ARTICLE        1. DEFINITIONS**

| 1.1 | **"Affiliate"**                  means any corporation or other business entity in which LICENSEE                  owns or                  controls, directly or indirectly, at least fifty percent (50%)                  of the                  outstanding stock or other voting rights entitled to elect directors,                  or                  in which LICENSEE is owned or controlled directly or indirectly                  by at                  least fifty percent (50%) of the outstanding stock or other voting                  rights                  entitled to elect directors; but in any country where the local                  law does                  not permit foreign equity participation of at least fifty percent                  (50%),                  then an "Affiliate" includes any company in which LICENSEE owns                  or                  controls or is owned or controlled by, directly or indirectly,                  the maximum                  percentage of outstanding stock or voting rights permitted by local                  law. |
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**"Field"**

| 1.3 | **"Territory"**                  means worldwide where Patent Rights exist, except for counties                  where                  LICENSEE declines to reimburse UCSD patent costs under Paragraph                  5.1                  (d). |
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| 1.4 | **"Term"**                  means the period of time beginning on the Effective Date and ending                  on the                  later of (i) the expiration date of the longest-lived Patent Rights;                  or                  (ii) the twenty-first (21st) anniversary of Effective                  Date. |
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| 1.5 | **"Patent                  Rights"**                  means any of the following: the US patent application (Serial No.                  60/401,432 titled "Volume Independent Tear Film Osmometer") disclosing                  and                  claiming the Invention, filed by Inventor on or about August 6,                  2002 and                  assigned to UNIVERSITY; and continuing applications thereof including                  divisions, substitutions, and continuations-in-part (but only to                  extent                  the claims thereof are enabled by disclosure of the parent application);                  any patents issuing on said applications including reissues,                  reexaminations and extensions; and any corresponding foreign applications                  or patents. |
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| 1.6 | **"Sponsor                  Rights"**                  means all the applicable provisions of any license to the United                  States                  Government executed by UNIVERSITY and the overriding obligations                  to the                  Federal Government under 35 U.S.C. §§ 200-212 and applicable governmental                  implementing regulations. |
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| 1.7 | **"Licensed                  Method"**                  means any method that is covered by Patent Rights the use of which                  would                  constitute, but for the license granted to LICENSEE under this                  Agreement,                  an infringement of any pending or issued and unexpired claim within                  Patent                  Rights. |
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| 1.8 | **"Licensed                  Product"**                  means any services, composition or product that is covered by the                  claims                  of Patent Rights, or that uses or is produced by the Licensed Method,                  or                  the manufacture, use, sale, offer for sale, or importation of which                  would                  constitute, but for the license granted to LICENSEE by UNIVERSITY                  herein,                  an infringement of any pending or issued and unexpired claim within                  the                  Patent Rights. |
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| 1.9 | **"Sublicensee"**                  means a third party to whom LICENSEE grants a sublicense of certain                  rights                  granted to LICENSEE under this                  Agreement. |
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| 1.10 | **"Net                  Sales"**                  means the total of the gross invoice prices of Licensed Products                  sold by                  LICENSEE, an Affiliate, or any combination thereof, less the sum                  of the                  following actual and customary deductions where applicable and                  separately                  listed: cash, trade, or quantity discounts; sales, use, tariff,                  import/export duties or other excise taxes imposed on particular                  sales                  (except for value-added and income taxes imposed on the sales of                  Licensed                  Products in foreign countries); transportation charges; or credits                  to                  customers because of rejections or returns. For purposes of calculating                  Net Sales, transfers to an Affiliate of Licensed Product under                  this                  Agreement for (i) end use (but not resale) by the Affiliate shall                  be                  treated as sales by LICENSEE at list price of LICENSEE, or (ii)                  resale by                  an Affiliate shall be treated as sales at the list price of the                  Affiliate. |
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| 1.11 | **"Patent                  Costs"**                  means all out-of-pocket expenses for the preparation, filing, prosecution,                  and maintenance of all United States and foreign patents included                  in                  Patent Rights. Patent Costs shall also include reasonable out-of-pocket                  expenses for patentability opinions, inventorship determination,                  preparation and prosecution of patent application, re-examination,                  re-issue, interference, and opposition activities related to patents                  or                  applications in Patent Rights. |
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**ARTICLE        2. GRANTS**

| 2.1 | **License.**                  Subject to the limitations set forth in this Agreement, UNIVERSITY                  hereby                  grants to LICENSEE, and LICENSEE hereby accepts, an exclusive license                  under Patent Rights to make, use, sell, offer for sale, and import                  Licensed Products and to practice the Licensed Method in the Field                  within                  the Territory and during the Term. |
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**Sublicense.**

|   | (1) | LICENSEE                  shall notify UNIVERSITY of any proposed grant of a sublicense and                  the                  terms thereof. UNIVERSITY shall then have ten (10) business days                  to notify                  LICENSEE that the terms of such proposed sublicense is acceptable                  or not                  acceptable, provided, however, that if UNIVERSITY does not notify                  LICENSEE                  that the terms are either acceptable or not acceptable, then UNIVERSITY                  shall be deemed to accept the proposed terms of such proposed                  sublicense. |
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|   | (2) | If                  a sublicense has been preapproved according to subparagraph 2.2                  (d)(1),                  upon termination of this Agreement for any reason, such sublicense                  shall                  continue in full force and effect. If a sublicense has been preapproved                  according to subparagraph 2.2 (d)(1), upon the license grant in                  Paragraph                  2.1 becoming nonexclusive such sublicense shall continue in full                  force and                  effect and all of the payments received thereafter by LICENSEE                  from such                  Sublicensee, if any, shall be paid and/or forwarded to                  UNIVERSITY. |
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|   | (3) | Unless                  sublicense has been preapproved according to subparagraph 2.2 (d)(1),                  upon                  termination of this Agreement for any reason, or upon the license                  grant in                  Paragraph 2.1 becoming nonexclusive, UNIVERSITY, at its sole discretion,                  shall determine whether LICENSEE shall cancel or assign to UNIVERSITY                  any                  and all sublicenses. |
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**Reservation        of Rights**

**ARTICLE        3. CONSIDERATIONS**

*****Article        3 in its entirety, which consists of four pages, has been omitted pursuant        to a        request for confidential treatment and has been filed separately with the        U.S.        Securities and Exchange Commission.**

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**ARTICLE        4. REPORTS, RECORDS AND PAYMENTS**

**Reports.**

**Progress        Reports.**

|   | (1) | Beginning                  July 1, 2003 and ending on the date of first commercial sale of                  a Licensed                  Product, LICENSEE shall submit to UNIVERSITY semi-annual progress                  reports                  covering LICENSEE's (and Affiliate's and Sublicensee's) activities                  to                  develop and test all Licensed Products and obtain governmental                  approvals                  necessary for marketing the same. Such reports shall include a                  summary of                  work completed; summary of work in progress; current schedule of                  anticipated events or milestones; market plans for introduction                  of                  Licensed Products; and summary of resources (dollar value) spent                  in the                  reporting period. |
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|   | (2) | LICENSEE                  shall also report to UNIVERSITY, in its immediately subsequent                  progress                  report, the date of first commercial sale of a Licensed Product                  in each                  country. |
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|   | (b) | **Royalty                  Reports.**After                  the first commercial sale of a Licensed Product anywhere in the                  world,                  LICENSEE shall submit to UNIVERSITY quarterly reports on or before                  February 28, May 31, August 31 and November 30 of each year. Each                  report                  shall cover LICENSEE's (and each Affiliate's and Sublicensee's)                  most                  recently completed calendar quarter and shall                  show: |
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**Records        **
**&        **
**Audits.**

|   | (a) | LICENSEE                  shall keep, and shall require its Affiliates and Sublicensees to                  keep                  accurate and correct records of all Licensed Products manufactured,                  used,                  and sold, and sublicense fees received under this Agreement. Such                  records                  shall be retained by LICENSEE for at least five (5) years following                  a                  given reporting period. |
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|   | (b) | All                  records shall be available during normal business hours for inspection                  at                  the expense of UNIVERSITY by UNIVERSITY's Internal Audit Department                  or by                  a Certified Public Accountant selected by UNIVERSITY and in compliance                  with the other terms of this Agreement for the sole purpose of                  verifying                  reports and payments or other compliance issues. Such inspector                  shall not                  disclose to UNIVERSITY any information other than information relating                  to                  the accuracy of reports and payments made under this Agreement                  or other                  compliance issues. In the event that any such inspection shows                  an under                  reporting and underpayment in excess of five percent (5%) for any                  twelve                  (12) month period, then LICENSEE shall pay the cost of the audit                  as well                  as any additional sum that would have been payable to UNIVERSITY                  had the                  LICENSEE reported correctly, plus an interest charge at a rate                  of ten                  percent (10%) per year. Such interest shall be calculated from                  the date                  the correct payment was due to UNIVERSITY up to the date when such                  payment                  is actually made by LICENSEE. For underpayment not in excess of                  five                  percent (5%) for any twelve (12) month period, LICENSEE shall pay                  the                  difference within thirty (30) days without interest charge or inspection                  cost. |
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**Payments.**

*****A        portion of Section 4.3 has been omitted pursuant to a request for confidential        treatment and has been filed separately with the U.S. Securities and Exchange        Commission. **

|   | (1) | Royalties                  shall accrue when Licensed Products are invoiced, or if not invoiced                  when                  Licensed Products are delivered to a third party or                  Affiliate. |
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|   | (2) | LICENSEE                  shall pay earned royalties quarterly on or before February 28,                  May 31,                  August 31 and November 30 of each calendar year. Each such payment                  shall                  be for royalties earned during LICENSEE's most recently completed                  calendar                  quarter. |
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|   | (3) | Royalties                  earned on sales occurring or under sublicense granted pursuant                  to this                  Agreement in any country outside the United States shall not be                  reduced by                  LICENSEE for any taxes, fees, or other charges imposed by the government                  of such country on the payment of royalty income, except that all                  payments                  made by LICENSEE in fulfillment of UNIVERSITY's tax liability in                  any                  particular country may be credited against earned royalties or                  fees due                  UNIVERSITY for that country. LICENSEE shall pay all bank charges                  resulting                  from the transfer of such royalty                  payments. |
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|   | (4) | If                  at any time legal restrictions prevent the prompt remittance of                  part or                  all royalties by LICENSEE with respect to any country where a Licensed                  Product is sold or a sublicense is granted pursuant to this Agreement,                  LICENSEE shall convert the amount owed to UNIVERSITY into US currency                  and                  shall pay UNIVERSITY directly from its US sources of fund for as                  long as                  the legal restrictions apply. |
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|   | (5) | LICENSEE                  shall not collect royalties from, or cause to be paid on Licensed                  Products                  sold to the account of the US Government or any agency thereof                  as provided                  for in the license to the US                  Government. |
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|   | (6) | In                  the event that any patent or patent claim within Patent Rights                  is held                  invalid in a final decision by a patent office from which no appeal                  or                  additional patent prosecution has been or can be taken, or by a                  court of                  competent jurisdiction and last resort and from which no appeal                  has or can                  be taken, all obligation to pay royalties based solely on that                  patent or                  claim or any claim patentably indistinct therefrom shall cease                  as of the                  date of such final decision. LICENSEE shall not, however, be relieved                  from                  paying any royalties that accrued before the date of such final                  decision,                  that are based on another patent or claim not involved in such                  final                  decision. |
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**Late        Payments**

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**ARTICLE        5. PATENT MATTERS**

**Patent        Prosecution and Maintenance.**

|   | (a) | Provided                  that LICENSEE has reimbursed UNIVERSITY for prior Patent Costs                  pursuant to                  Paragraph 3.2, UNIVERSITY shall diligently prosecute and maintain                  the                  United States and, if available, foreign, patents and applications                  in                  Patent Rights using counsel of its choice. UNIVERSITY shall provide                  LICENSEE with copies of all relevant documentation relating to                  such                  prosecution and LICENSEE shall keep this documentation confidential.                  The                  counsel shall take instructions only from UNIVERSITY, and all patents                  and                  patent applications in Patent Rights shall be assigned solely to                  UNIVERSITY. UNIVERSITY shall give LICENSEE notice of its intent                  and plans                  to file any United States and/or foreign patents and applications                  in                  Patent Rights. |
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|   | (b) | UNIVERSITY                  shall consider amending any patent application in Patent Rights                  to include                  claims reasonably requested by LICENSEE to protect the products                  contemplated to be sold by LICENSEE under this                  Agreement. |
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|   | (c) | LICENSEE                  shall cooperate and assist UNIVERSITY to apply for an extension                  of the                  term of any patent in Patent Rights if appropriate under the Drug                  Price                  Competition and Patent Term Restoration Act of 1984 and/or European,                  Japanese and other foreign counterparts of this law. LICENSEE shall                  prepare all documents for such application, and UNIVERSITY shall                  execute                  such documents and to take any other additional action as LICENSEE                  reasonably requests in connection                  therewith. |
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|   | (d) | LICENSEE                  may elect to terminate its reimbursement obligations with respect                  to any                  patent application or patent in Patent Rights upon three (3) months                  written notice to UNIVERSITY. UNIVERSITY shall use reasonable efforts                  to                  curtail further Patent Costs for such application or patent when                  such                  notice of termination is received from LICENSEE. UNIVERSITY, in                  its sole                  discretion and at its sole expense, may continue prosecution and                  maintenance of said application or patent, and LICENSEE shall then                  have no                  further license with respect thereto. Non-payment of any portion                  of Patent                  Costs with respect to any application or patent, after notice to                  LICENSEE                  and a 30 day period in which to cure such non-payment, may be deemed                  by                  UNIVERSITY as an election by LICENSEE to terminate its reimbursement                  obligations with respect to such application or patent. UNIVERSITY                  is not                  obligated to file, prosecute, or maintain Patent Rights to which                  LICENSEE                  has terminated its License                  hereunder. |
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**Patent        Infringement.**

|   | (a) | If                  LICENSEE learns of any substantial infringement of Patent Rights,                  LICENSEE                  shall so inform UNIVERSITY and provide UNIVERSITY with reasonable                  evidence                  of the infringement, and UNIVERSITY hereby agrees to take no action                  for at                  least ninety (90) days thereafter. If UNIVERSITY learns of any                  substantial                  infringement of Patent Rights, UNIVERSITY shall so inform LICENSEE                  and                  provide LICENSEE with reasonable evidence of the infringement,                  and                  LICENSEE hereby agrees to take no action for at least ninety (90)                  days                  thereafter. Neither party shall notify a third party of the infringement                  of Patent Rights without the consent of the other party. Both parties                  shall use reasonable efforts and cooperation to terminate infringement                  without litigation. |
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|   | (b) | If                  infringing activity of potential commercial significance by the                  infringer                  has not been abated within ninety (90) days following the date                  notice of                  such infringing activity is given to the other party pursuant to                  5.2(a)                  above, the LICENSEE shall have the first right to institute suit                  for                  patent infringement against the infringer. UNIVERSITY may voluntarily                  join                  such suit at its own expense, but may not thereafter commence suit                  against                  the infringer for the acts of infringement that are the subject                  of the                  Licensee's suit or any judgment rendered in that suit. The LICENSEE                  may                  not join UNIVERSITY in a suit initiated by the LICENSEE without                  UNIVERSITY's prior written consent, provided, however, that if                  UNIVERSITY                  is a necessary or required party in any such suit, then no consent                  shall                  be required. If, in a suit initiated by the LICENSEE, UNIVERSITY                  is                  involuntarily joined other than by the LICENSEE, or if UNIVERSITY                  is                  joined because it is deemed to be a necessary or required party,                  the                  LICENSEE will pay any costs incurred by UNIVERSITY arising out                  of such                  suit, including but not limited to, any reasonable legal fees of                  counsel                  that UNIVERSITY selects and retains to represent it in the                  suit. |
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|   | (c) | Recoveries                  from actions brought by LICENSEE pursuant to Paragraph 5.2(b) shall                  belong                  to the LICENSEE, provided, however, that the amount such recoveries                  exceed                  LICENSEE's expenses for such actions shall be subject (i) to the                  royalty                  in Paragraph 3.1(g) above if the net amount of any such recovery                  is                  considered to be "Net Sales;" or (ii) subject to the sublicensing                  royalties in Paragraph 3.1(e) or 3.1(f) above as may be appropriate                  if the                  net amount of any such recovery is considered to be "royalties"                  payable to                  LICENSEE as if in a LICENSEE-Sublicensee relationship. If LICENSEE                  has not                  initiated any action to abate the infringing activity within ninety                  (90)                  days after the expiration of the ninety (90) days after notice                  of such                  infringing activity is given to the other party pursuant to 5.2(a)                  above,                  then UNIVERSITY shall have the right to bring such suit, and recoveries                  from such actions brought by UNIVERSITY shall belong entirely to                  UNIVERSITY. |
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| (d)   | Each                  party shall cooperate with the other in litigation proceedings                  at the                  expense of the party bringing suit. Litigation shall be controlled                  by the                  party bringing the suit, except that UNIVERSITY may be represented                  by                  counsel of its choice in any suit brought by                  LICENSEE. |
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| 5.3   | **Patent                  Marking**.                  LICENSEE shall mark all Licensed Products made, used or sold under                  the |
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** **

**ARTICLE        6. GOVERNMENTAL MATTERS**

| 6.1 | **Governmental                  Approval or Registration**.                  If this Agreement or any associated transaction is required by                  the law of                  any nation to be either approved or registered with any governmental                  agency, LICENSEE shall assume all legal obligations to do so. LICENSEE                  shall notify UNIVERSITY if it becomes aware that this Agreement                  is subject                  to a United States or foreign government reporting or approval                  requirement. LICENSEE shall make all necessary filings and pay                  all costs                  including fees, penalties, and all other out-of-pocket costs associated                  with such reporting or approval                  process. |
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| 6.2 | **Export                  Control Laws.**                  LICENSEE shall observe all applicable United States and foreign                  laws with                  respect to the transfer of Licensed Products and related technical                  data to                  foreign countries, including, without limitation, the International                  Traffic in Arms Regulations and the Export Administration                  Regulations. |
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**ARTICLE        7. TERMINATION OF THE AGREEMENT**

| 7.1 | **Termination****by**** ****UNIVERSITY**.                  If LICENSEE fails to perform or violates any term of this Agreement,                  then                  UNIVERSITY may give written notice of default ("Notice of Default")                  to                  LICENSEE. If LICENSEE fails to cure the default within sixty (60)                  days of                  the Notice of Default, UNIVERSITY may terminate this Agreement                  and the                  license granted herein by a second written notice ("Notice of                  Termination") to LICENSEE. If a Notice of Termination is sent to                  LICENSEE,                  this Agreement shall automatically terminate on the effective date                  of that                  notice. Termination shall not relieve LICENSEE of its obligation                  to pay                  any fees owed at the time of termination and shall not impair any                  accrued                  right of UNIVERSITY. |
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**Termination        **
**by        **
**Licensee.**

|   | (a) | LICENSEE                  shall have the right at any time and for any reason to terminate                  this                  Agreement upon a ninety (90) day written notice to UNIVERSITY.                  Said notice                  shall state LICENSEE's reason for terminating this                  Agreement. |
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|   | (b) | Any                  termination under Paragraph 7.2(a) shall not relieve LICENSEE of                  any                  obligation or liability accrued under this Agreement prior to termination                  or rescind any payment made to UNIVERSITY or action by LICENSEE                  prior to                  the time termination becomes effective. Termination shall not affect                  in                  any manner any rights of UNIVERSITY arising under this Agreement                  prior to                  termination. |
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| 7.3 | **Survival                  on Termination.**                  The following Paragraphs and Articles shall survive the termination                  of                  this Agreement: |
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| 7.4   | **Disposition                  of Licensed Products on Hand.**                  Upon termination of this Agreement, LICENSEE |
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** **

**ARTICLE        8. LIMITED WARRANTY AND INDEMNIFICATION**

**Limited        Warranty.**

|   | (b) | The                  license granted herein is provided "AS IS" and without WARRANTY                  OF                  MERCHANTABILITY or WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE                  or any                  other warranty, express or implied. UNIVERSITY makes no representation                  or                  warranty that the Licensed Product, Licensed Method or the use                  of Patent                  Rights will not infringe any other patent or other proprietary                  rights. |
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|   | (c) | In                  no event shall UNIVERSITY be liable for any incidental, special                  or                  consequential damages resulting from exercise of the license granted                  herein or the use of the Invention, Licensed Product, or Licensed                  Method. |
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|   | (1) | a                  warranty or representation by UNIVERSITY as to the validity or                  scope of                  any Patent Rights; |
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|   | (2) | a                  warranty or representation that anything made, used, sold or otherwise                  disposed of under any license granted in this Agreement is or shall                  be                  free from infringement of patents of third                  parties; |
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|   | (3) | an                  obligation to bring or prosecute actions or suits against third                  parties                  for patent infringement; |
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|   | (4) | conferring                  by implication, estoppel or otherwise any license or rights under                  any                  patents of UNIVERSITY other than Patent Rights as defined in this                  Agreement, regardless of whether those patents are dominant or                  subordinate                  to Patent Rights; |
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**Indemnification.**

|   | (a) | LICENSEE                  shall indemnify, hold harmless and defend UNIVERSITY, its officers,                  employees, and agents; the sponsors of the research that led to                  the                  Invention; and the Inventor of the patents and patent applications                  in                  Patent Rights and their employers against any and all claims, suits,                  losses, damage, costs, fees, and expenses resulting from or arising                  out of                  exercise of this license or any sublicense. This indemnification                  shall                  include, but not be limited to, any product                  liability. |
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|   | (b) | On                  or before the date of the commercial distribution of the first                  Licensed                  Product or on the date of initiation of any human trials necessary                  for FDA                  approval (if required), whichever occurs first, LICENSEE, at its                  sole cost                  and expense, shall insure its activities in connection with the                  work under                  this Agreement and obtain, keep in force and maintain insurance                  or an                  equivalent program of self insurance as                  follows: |
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|   | (                  1) | comprehensive                  or commercial general liability insurance (contractual liability                  included)                  with limits of at least: (i) each occurrence, $1,000,000; (ii)                  products/completed operations aggregate, $5,000,000; (iii) personal                  and                  advertising injury, $1,000,000; and (iv) general aggregate (commercial                  form only), $5,000,000; and |
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|   | (2) | the                  coverage and limits referred to above shall not in any way limit                  the                  liability of LICENSEE. |
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|   | (c) | LICENSEE                  shall furnish UNIVERSITY with certificates of insurance showing                  compliance                  with all requirements. Such certificates shall: (i) provide for                  thirty                  (30) day advance written notice to UNIVERSITY of any modification;                  (ii)                  indicate that UNIVERSITY has been endorsed as an additional insured                  under                  the coverage referred to above; and (iii) include a provision that                  the                  coverage shall be primary and shall not participate with nor shall                  be                  excess over any valid and collectable insurance or program of                  self-insurance carried or maintained by                  UNIVERSITY. |
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|   | (d) | UNIVERSITY                  shall notify LICENSEE in writing of any claim or suit brought against                  UNIVERSITY in respect of which UNIVERSITY intends to invoke the                  provisions                  of this Article. LICENSEE shall keep UNIVERSITY informed on a current                  basis of its defense of any claims under this                  Article. |
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**ARTICLE        9. USE OF NAMES AND TRADEMARKS**

| 9.1 | Nothing                  contained in this Agreement confers any right to use in advertising,                  publicity, or other promotional activities any name, trade name,                  trademark, or other designation of either party hereto (including                  contraction, abbreviation or simulation of any of the foregoing).                  Unless                  required by law, the use by LICENSEE of the name, "The Regents                  Of The                  University Of California" or the name of any campus of the University                  Of                  California is prohibited, without the express written consent of                  UNIVERSITY. |
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| 9.2 | UNIVERSITY                  may disclose to the Inventor the terms and conditions of this Agreement                  upon their request. If such disclosure is made, UNIVERSITY shall                  request                  the Inventor not disclose such terms and conditions to                  others. |
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| 9.3 | UNIVERSITY                  may acknowledge the existence of this Agreement and the extent                  of the                  grant in Article 2 to third parties, but UNIVERSITY shall not disclose                  the                  financial terms of this Agreement to third parties, except where                  UNIVERSITY is required by law to do so, such as under the California                  Public Records Act. |
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**ARTICLE        10. MISCELLANEOUS PROVISIONS**

| 10.1 | **Correspondence**.                  Any notice or payment required to be given to either party under                  this                  Agreement shall be deemed to have been properly given and                  effective: |
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**Secrecy**

|   | (a) | "Confidential                  Information" shall mean information relating to the Invention and                  disclosed by UNIVERSITY to LICENSEE during the term of this Agreement,                  which if disclosed in writing shall be marked "Confidential", or                  if first                  disclosed otherwise, shall within thirty (30) days of such disclosure                  be                  reduced to writing by UNIVERSITY and sent to                  LICENSEE: |
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| (a)   | LICENSEE                  shall: |
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|   | (1) | use                  the Confidential Information for the sole purpose of performing                  under the                  terms of this Agreement; |
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|   | (2) | safeguard                  Confidential Information against disclosure to others with the                  same degree                  of care as it exercises with its own data of a similar                  nature; |
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|   | (3) | not                  disclose Confidential Information to others (except to its employees,                  agents or consultants who are bound to LICENSEE by a like obligation                  of                  confidentiality) without the express written permission of UNIVERSITY,                  except that LICENSEE shall not be prevented from using or disclosing                  any                  of the Confidential Information                  that: |
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|   | (i) | LICENSEE                  can demonstrate by written records was previously known to                  it; |
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|   | (ii) | is                  now, or becomes in the future, public knowledge other than through                  acts or                  omissions of LICENSEE; or |
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|   | (iii) | is                  lawfully obtained by LICENSEE from sources independent of UNIVERSITY;                  and |
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|   | (c) | The                  secrecy obligations of LICENSEE with respect to Confidential Information                  shall continue for a period ending five (5) years from the termination                  date of this Agreement. |
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| 10.3 | **Assignability.**                  This Agreement may be assigned by UNIVERSITY, but is personal to                  LICENSEE                  and assignable by LICENSEE only with the written consent of                  UNIVERSITY. |
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| 10.4 | **No                  Waiver.**                  No                  waiver by either party of any breach or default of any covenant                  or                  agreement set forth in this Agreement shall be deemed a waiver                  as to any                  subsequent and/or similar breach or                  default. |
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| 10.5 | **Failure                  to Perform.**                  In                  the event of a failure of performance due under this Agreement                  and if it                  becomes necessary for either party to undertake legal action against                  the                  other on account thereof, then the prevailing party shall be entitled                  to                  reasonable attorney's fees in addition to costs and necessary                  disbursements. |
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| 10.6 | **Governing                  Laws.**                  THIS AGREEMENT SHALL BE INTERPRETED AND CONSTRUED IN ACCORDANCE                  WITH THE                  LAWS OF THE STATE OF CALIFORNIA, but the scope and validity of                  any patent                  or patent application shall be governed by the applicable laws                  of the                  country of the patent or patent                  application. |
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| 10.7 | **Force                  Majeure.**                  A                  party to this Agreement may be excused from any performance required                  herein if such performance is rendered impossible or unfeasible                  due to any                  catastrophe or other major event beyond its reasonable control,                  including,                  without limitation, war, riot, and insurrection; laws, proclamations,                  edicts, ordinances, or regulations; strikes, lockouts, or other                  serious                  labor disputes; and floods, fires, explosions, or other natural                  disasters.                  When such events have abated, the non-performing party's obligations                  herein shall resume. |
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| 10.8 | **Headings.**                  The headings of the several sections or paragraphs are inserted                  for                  convenience of reference only and are not intended to be a part                  of or to                  affect the meaning or interpretation of this                  Agreement. |
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| 10.9 | **Entire                  Agreement.**This                  Agreement embodies the entire understanding of the parties and                  supersedes                  all previous communications, representations or understandings,                  either                  oral or written, between the parties relating to the subject matter                  hereof. |
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| 10.10 | **Amendments.**                  No                  amendment or modification of this Agreement shall be valid or binding                  on                  the parties unless made in writing and signed on behalf of each                  party. |
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| 10.11 | **Severability.**                  In                  the event that any of the provisions contained in this Agreement                  is held                  to be invalid, illegal, or unenforceable in any respect, such invalidity,                  illegality or unenforceability shall not affect any other provisions                  of                  this Agreement, and this Agreement shall be construed as if the                  invalid,                  illegal, or unenforceable provisions had never been contained in                  it. |
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**OCUSENSE        INC.                                                                                                                                                                               THE REGENTS OF THE**

**                                                                                                                                                                                                              UNIVERSITY        OF CALIFORNIA:**

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**EXHIBIT        A: CERTIFICATE OF INCORPORATION**

**OCUSENSE,        INC.**

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