**LICENSE      AGREEMENT**

**INTRODUCTION**

| 1. | WHEREAS,                LICENSOR has developed and is continuing research in the area of                the                Technology, as defined in Paragraph 1.1 of this Agreement; and |
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| 2. | WHEREAS,                LICENSEE desires to obtain certain rights in and to the Technology;                and |
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| 3. | WHEREAS,                LICENSEE and LICENSOR mutually desire to formalize an agreement which                delineates their respective rights and obligations with respect to                the                Technology. |
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**ARTICLE      1 - DEFINITIONS**

| 1.1 | “Technology”                means LICENSOR Invention Korea Patent Application No. 2005-117687“FET                凐䏨 㼣䉼㡰 厀ᄆ 㻄㻤,                刈㢨 㟤㞐 䏗䍫 䏱 刈䚄&                #160;㢌㥗⪤ 㼣䉼㡰 厀ᄆ 䏗䍫”describing                the improvement of increased sensitivity in detection by the effect                relating with Schottky contact region and a second planned patent                application which will describe the process for fabricating a single                nanowire device. A copies are presented as exhibits in Appendice                A and B                once this Agreement is signed by Parties. Technology shall also mean,                for                the purposes of this Agreement, any Improvements or modifications                to the                Technology as it exists on the Effective Date, but subject to Section                2.6. |
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| 1.2 | “Know-how”                means the data and information embodied in or required to enable                the                Technology. |
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| 1.3 | “Patents”                means any and all patent applications (including any amendments or                extensions to the initial applications) filed in any country of the                world                by or on behalf of LICENSOR claiming the Technology and/or any patents                maturing from such patent applications. Patents and patent applications                claiming the technology at the time of execution of this Agreement                include, without limitation, Korea patent application No.2005-117687                titled “                FET 凐䏨 㼣䉼㡰 厀ᄆ 㻄㻤,                刈㢨 㟤㞐 䏗䍫 䏱 刈䚄&                #160;㢌㥗⪤ 㼣䉼㡰 厀ᄆ 䏗䍫”,                filed __December, 2005. |
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| 1.5 | “Adjusted                Gross Sales” means the aggregate gross revenues derived by LICENSEE and                its Affiliates from the sale of Products and Services to, and practice                of                Processes for, an unaffiliated third party in an arms length commercial                transaction, less credits granted on account of price adjustments,                recalls, rejection or return of items previously                sold. |
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| 1.6 | “Product”                means any and all products offered or sold by or on behalf of the                LICENSEE                embodying or practicing the Technology, Know-how and/or the                Patents. |
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| 1.7 | “Process”                means any and all processes embodying or practicing the Technology,                Know-how and/or the Patents. |
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| 1.8 | “Service”                means any and all services offered or sold by or on behalf of the                LICENSEE                embodying or practicing the Technology, Know-how and/or the                Patents. |
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| 1.9 | “Term”                means the period beginning on the Effective Date and extending to                the                expiration of the last to expire of the Patents, or until Fifteen                (15)                years after the Effective Date, whichever is                longer. |
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| 1.10 | “Field”                means use of the Technology (and Know-how) limited to detection of                Homeland Security and Environmental Protection Agency                applications |
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| 1.11 | “Territory”                means worldwide. |
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| 1.12 | “Improvement”                means (a) divisionals of the Patents, (b) any continuations of the                Patents                deriving from inventions made within the Term (i) in the course of                research at LICENSOR supported by LICENSEE hereunder, or (ii) conceived                or                first reduced to practice by LICENSOR employees while conducting                work for                the LICENSEE under a private agreement that is disclosed to and approved                by LICENSOR consistent with the then current LICENSOR policy on outside                work for pay, and (c) all derivative works, discoveries and/or inventions,                whether patentable or not, made by the parties, acting alone or jointly,                that constitutes a modification, enhancement, extension or improvement                of                the Technology. |
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| 1.13 | “Affiliate”                means any LICENSEE, corporation or business which is at least fifty                percent owned or controlled by LICENSEE, or which owns or controls                at                least fifty percent of LICENSEE, or which together with LICENSEE                is                commonly owned or controlled by a third party who owns or controls                at                least fifty percent of each. |
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| 1.14 | “Government”                means the United States Government. |
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| 1.17 | “Sublicensing                Revenues” means any and all payments, royalties and other consideration                collected by LICENSEE from its subLICENSEEs in connection with the                sale,                license or other commercial disposition of Products, Processes or                Services                by such subLICENSEEs. |
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**ARTICLE      2 - LICENSES GRANTED AND RIGHTS RETAINED**

| 2.1 | LICENSOR                hereby grants to LICENSEE during the Term of this Agreement an exclusive                license within the Territory, limited to the Field, with the right                to                sublicense, to make, modify, reproduce, have made, lease, use, distribute,                market, promote, sell, offer for sale, license and otherwise dispose                of                and exploit the Products, practice the Processes, and offer the Services                under the Technology, the Know-how and/or the Patents. |
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| 2.2 | The                exclusive license specified in Paragraphs 2.1 is subject to a reserved                right of LICENSOR to utilize the Technology, Know-how, and/or the                Patents                solely for the non-commercial research and educational purposes of                LICENSOR. |
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| 2.3 | LICENSEE                is hereby granted by LICENSOR a right of first refusal applicable                to any                exclusive option or exclusive license that LICENSOR elects to offer                with                respect to the Technology, Know-how and/or the Patents in connection                with                any products, practice of the processes, and offer of the services                under                the Technology, the Know-how and/or the Patents outside of the licensed                Field. With respect to any such option or license offered by LICENSOR,                the                LICENSEE’s right of first refusal shall expire sixty days after the                LICENSEE receives the offered terms from LICENSOR. During reasonable                business hours, LICENSOR shall provide the LICENSEE with any information                requested by the LICENSEE, including access to personnel, in connection                with the LICENSEE’s due diligence investigation in deciding whether to                exercise any such right of first refusal hereunder. In addition,                any                commercial non-exclusive option or license that LICENSOR elects to                offer                with respect to the Technology, Know-how and/or the Patents in connection                with any such products, practice of the processes, and offer of the                services under the Technology, the Know-how and/or the Patents outside                the                licensed Field shall be offered to LICENSEE simultaneously and under                identical terms with the offer to any third                party. |
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| 2.4 | The                exclusive licenses specified in Paragraphs 2.1 and 2.3 may be subject                to                certain rights of the Government if the Technology, Know-how, and/or                the                Patents were created or invented in the course of Government-funded                research. Such rights may include for example a royalty-free license                to                the Government and the requirement that any Product produced for                sale in                the United States will be manufactured substantially in the United                States.                LICENSOR agrees that in the event the Government exercises its right                to                obtain a royalty-free license from LICENSOR, then the parties will                be                obligated to exercise their best efforts to renegotiate, in good                faith,                the royalties and other amounts payable to LICENSOR pursuant to this                Agreement to achieve an arrangement more favorable to the LICENSEE                after                giving full consideration to the actual or potential impact of the                grant                to the Government of such license. In such an event, LICENSOR further                agrees that the LICENSEE will not be in breach of this Agreement                in the                event that it withholds payment of the royalties and other amounts                which                may be due hereunder pending the parties’ negotiations to amend the                royalty requirements of this Agreement. |
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| 2.5 | This                Agreement shall not be construed as implying that either Party hereto                shall have the right to use Background Intellectual Property of the                other                in connection with this Agreement or otherwise, except as expressly                stated                herein. “Background Intellectual Property” means property and the legal                right therein of either or both parties developed before or independent                of, but during term of, this Agreement including inventions, patent                applications, patents, copyrights, trademarks, mask works, trade                secrets                and any information embodying proprietary data such as technical                data and                computer software and all derivatives thereof (other than Project                Intellectual Property, as defined below). Except for the rights expressly                granted by one Party to the other hereunder, no license, interest                or right                in, or title to, a Party’s Background Intellectual Property, or any                intellectual property rights therein or associated therewith, shall                be                deemed to have been granted, vested in or transferred to the other                Party                under the terms of the Agreement and no such rights shall be construed                by                estoppel. All title to and ownership of a Party’s Background Intellectual                Property (and the intellectual property rights therein or associated                therewith) remain with such Party. |
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| 2.6 | Unless                otherwise agreed in writing, legal rights relating to Project Intellectual                Property shall be owned by the Party whose employees make or generate                the                Project Intellectual Property as supported by documentary evidence.                Jointly made or generated Project Intellectual Property shall be                jointly                owned by the Parties unless otherwise agreed in writing. Jointly                owned                Project Intellectual Property shall be subject to exploitation by                either                without consent or obligation of other. “Project Intellectual Property”                means the inventions, patent applications, patents, copyrights,                trademarks, mask works, trade secrets, and any other potentially                legally                protectable information, including computer software, first made                or                generated during the performance of this Agreement. Any revenues                and                profits resulting from the practice, licensing, or exploitation of                Project                Intellectual Property pursuant to this Agreement shall be allocated                between the LICENSEE and LICENSOR in accordance with this Agreement.                The                Parties agree to disclose Project Intellectual Property to each other,                in                writing subject to the non-disclosure and confidentiality obligations                herein. The Parties acknowledge that they will make this disclosure                to                each other within three (3) months after their respective inventor(s)                first disclose the invention in writing to the person(s) responsible                for                patent matters of the disclosing party. |
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**ARTICLE      3 - R&D PERFORMANCE & MARKETING**

| 3.1 | LICENSEE                shall use reasonable efforts to introduce Products and Processes                into the                commercial market as soon as practicable, consistent with sound and                reasonable business practices and judgment. Thereafter, LICENSEE                shall                endeavor to keep Products and Processes reasonably available to the                public                during the remainder of the Term. |
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| 3.2 | LICENSOR                shall have the right to terminate or render this license nonexclusive                at                any time after three (3) years from the Effective Date if LICENSEE:                (a)                has not put the Technology into commercial use in the Territory,                directly                or through a sublicense or (b) is not demonstrably engaged in a research,                development, manufacturing, marketing or sublicensing program, as                appropriate, directed toward this end. LICENSOR shall, prior to exercising                any right under this Section 3.2, provide the LICENSEE with at least                thirty (30) days written notice of its intention to exercise any                rights                hereunder and deliver a second written notice to the LICENSEE after                the                expiration of such thirty (30) day notice period in the event that                LICENSOR determines to exercise its rights hereunder in the event                that the                LICENSEE has failed to either cure the claimed default or to take                substantial steps towards curing such default during the thirty (30)                day                notice period. |
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| 3.3 | LICENSOR                agrees promptly after the Effective Date of this Agreement to deliver                and                to disclose to duly authorized representatives of LICENSEE, (i) all                Know-how and proprietary technical data, methods, processes, including                the                technology, and other information and specifications relating to                the                Know-How and (ii) copies of all patent prosecution documents concerning                the Patents and Technology, and any other documents relevant to the                Technology and Know-how that have not been provided to LICENSEE as                of such                date. |
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**ARTICLE      4 - PATENTS AND PATENT COSTS**

| 4.1 | LICENSOR                shall retain title to the Technology, Know-how, and the                Patents. |
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| 4.2 | LICENSOR                shall file, prosecute, and maintain Patents in the United States                and in                any other countries designated by LICENSEE at LICENSEE’s expense. LICENSOR                and LICENSEE shall jointly control, including selection of outside                counsel                and consultants, all pending and future preparation, filing, prosecution                and maintenance of Patents, for which LICENSEE shall reimburse LICENSOR                for any and all future out of pocket expenses (e.g., outside attorney                fees, patent office registration and renewal costs etc.) relating                to such. |
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| 4.3 | LICENSEE                agrees promptly to reimburse LICENSOR for its outside legal costs                incurred                under Paragraph 4.2 within thirty (30) days after the receipt of                invoices                from LICENSOR. Late payment shall be subject to interest charges                of one                and one-half percent (11⁄2 %) per month. Such reimbursement payments by                LICENSEE of costs incurred by LICENSOR under Paragraph 4.2 shall                be                creditable against up to 50% of the royalties that are due from LICENSEE                to LICENSOR under Article 6 during the same calendar year in which                such                reimbursements are due. |
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| 4.4 | Failure                of LICENSEE to pay the amounts required under Paragraph 4.3 within                ninety                (90) days after the receipt of invoices from LICENSOR shall constitute                a                default by LICENSEE under this Agreement, and entitle LICENSOR to                exercise                its rights to terminate this Agreement, including the provision of                notice                and the LICENSEE’s right to cure, under Article                13. |
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| 4.5 | Nothing                in this Agreement shall prevent LICENSOR from seeking patents on                the                Technology in countries other than those designated by LICENSEE;                provided,                however, that LICENSOR has first notified the LICENSEE of its intention                to                seek such additional patents and provided the LICENSEE with a reasonable                opportunity to join in prosecution of such additional patents pursuant                to                Section 4.2. In the event the LICENSEE declines to pursue such patent                prosecution, it may be filed, prosecuted and maintained at LICENSOR’s sole                expense, and shall be free of any obligations to LICENSEE under this                Agreement. |
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**ARTICLE      5 - PUBLICATION RIGHTS**

| 5.1 | Subject                to obtaining the prior written consent of the LICENSEE, which shall                not be                unreasonably withheld, LICENSOR reserves the right to publish or                present                the results of its research on the Technology. |
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**ARTICLE      6 - PAYMENTS AND ROYALTIES**

| 6.1 | LICENSEE                agrees to pay to LICENSOR a non-refundable initial fee of Ten Thousand                United States Dollars ($10,000.00) within ten business days from                the                execution of this License                Agreement. |
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| 6.2 | (a) | During                the Term of this Agreement, the LICENSEE shall pay to LICENSOR a                royalty                of five percent (5.0 %) of Adjusted Gross Sales. Where a Product                or                Process is not sold, but is otherwise disposed of for commercial                value,                Adjusted Gross Sales for the purpose of computing royalties shall                be the                Adjusted Gross Sales price at which Products or Processes of similar                kind                and quality, sold in similar quantities, are currently being offered                for                sale by LICENSEE. Where such Products and Processes are not currently                being separately offered for sale by LICENSEE, but are offered in                connection with other products or processes, Adjusted Gross Sales                shall be                LICENSEE’s cost of manufacture, determined by LICENSEE’s customary                accounting procedures, increased by 100                %. |
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|   | (b) | During                the Term, LICENSEE shall pay to LICENSOR a royalty of five percent                (5.0%)                of Adjusted Gross Sales of any SubLICENSEE. |
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| 6.3 | Beginning                in calendar year 2008, LICENSEE agrees to pay LICENSOR an annual                minimum                payment as shown in the table below. Should the actual royalties                paid                under Paragraph 6.2 fall short of this minimum amount, LICENSEE shall                pay                LICENSOR the difference when the royalty payment for the last calendar                quarter of such calendar year is due in accordance with Paragraph                6.4. |
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| Year             | Minimum                Payment |
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| 2008-2012        | $10,000.00                     |
| 2013-2017        | $20,000.00                     |
| 2018-2022        | $25,000.00                     |
| 2023-termination | $30,000.00                     |

| 6.4 | During                any fiscal year during the Term, LICENSEE shall deliver to LICENSOR                within                forty-five (45) days after the end of each of its first three calendar                quarters and within ninety (90) days following the end of its fiscal                year: |
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|   | (a) | A                written report showing all figures necessary to compute Adjusted                Gross                Sales and LICENSEE’s computation of all remuneration to LICENSOR due under                this Agreement for such calendar quarter, accompanied by a check                in full                payment of the remuneration due. Adjusted Gross Sales shall be segmented                in each such report on a country-by-country basis, including the                rates of                exchange used for conversion to USA Dollars from the currency in                which                such sales were made. |
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|   | (b) | For                any Adjusted Gross Sales which are made in a currency other than                U.S.                dollars, the amount of such sales shall be converted to U.S. Dollars                using                the currency exchange rates set forth in The                Wall Street Journal                on                the last day of the calendar                quarter. |
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|   | (c) | All                payments due shall be made in U.S. dollars without deduction for                taxes,                assessments, or other charges of any kind which may be imposed on                LICENSEE                by the government of the country where the transactions occur or                any                political subdivision thereof with respect to any amounts payable                to                LICENSOR pursuant to this Agreement, and such taxes, assessments,                or other                charges shall be assumed by                LICENSEE. |
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|   | (d) | Late                payments shall be subject to an interest charge of one and one-half                percent (11⁄2%) per month. |
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| 6.5 | LICENSEE                shall keep for a period of three (3) years following the year to                which                such records relate, full, true and accurate books of accounts and                other                records containing all information and data which may be necessary                to                ascertain and verify the remuneration payable to LICENSOR hereunder.                During the Term and for a period of two (2) years following its                termination or expiration, LICENSOR shall have the right, upon reasonable                prior written notice, to audit, or have an agent, accountant or other                representative, audit such books, records and supporting data upon                fifteen                (15) days notice. All information subject to such audit shall be                deemed                Confidential Information and treated in accordance with the provisions                of                Section 10. Any audit shall be at LICENSOR’s expense, except that LICENSEE                shall reimburse LICENSOR for the cost of the audit in the event that                the                audit establishes an underpayment of ten percent (10%) or more of                the                amount due. |
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**ARTICLE      7 - RESERVED**

**ARTICLE      8 - DILIGENCE**

| 8.1 | LICENSEE                shall deliver to LICENSOR within one hundred twenty (120) days after                the                end of fiscal 2007 and 2008, a report describing LICENSEE’s progress                toward meeting its objectives together with an updated version of                its                business plan. |
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**ARTICLE      9 - INFRINGEMENT**

| 9.1 | Each                party shall promptly report in writing to the other party during                the Term                any infringement or suspected infringement of any Patent, or unauthorized                use or misappropriation of the Technology or Know-how by a third                party of                which it becomes aware, and shall provide the other party with all                available evidence supporting said infringement, suspected infringement                or                unauthorized use or                misappropriation. |
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| 9.2 | LICENSEE                shall have the right to initiate an infringement suit or other appropriate                action against any third party who at any time has infringed or is                suspected of infringing any of the Patents or of using without proper                authorization all or any portion of the Technology or Know-how. LICENSEE                shall give LICENSOR sufficient advance written notice of its intent                to                initiate such action and the reasons therefor, and shall provide                LICENSOR                with an opportunity to make suggestions and comments regarding such                action. LICENSEE shall keep LICENSOR promptly informed of the status                of                any such action. LICENSEE shall pay all expenses of such action.                LICENSOR                shall offer reasonable assistance to LICENSEE in connection therewith                at                no charge to LICENSEE except for reimbursement of reasonable out-of-pocket                expenses. Recoveries, reimbursements, damages, profits or awards                from such                action shall first be applied to reimburse LICENSEE and LICENSOR                for                litigation costs. Any remaining recoveries, reimbursements, damages,                profits or awards of whatever nature shall be treated as Adjusted                Gross                Sales under this Agreement. |
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| 9.3 | In                the event that LICENSOR is a legally indispensable party to an                infringement suit or other action as described in Paragraph 9.2,                LICENSOR                may join the action as a co-plaintiff. LICENSEE shall reimburse LICENSOR                for any reasonable costs it incurs as a party to any action brought                by                LICENSEE or its subLICENSEE, irrespective of whether LICENSOR shall                become                a co-plaintiff. |
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| 9.4 | In                the event that LICENSEE does not within six (6) months from first                determining that an actual infringement of the Technology is likely                to                exist, (a) secure cessation of the infringement, or (b) initiate                suit                against the infringer, LICENSOR shall thereafter have the right to                take                action against the infringer at LICENSOR’s own expense. LICENSEE shall                offer reasonable assistance to LICENSOR in connection with such action                at                no charge to LICENSOR except for the reimbursement of reasonable                out-of-pocket expenses. Any damages, profits or awards of whatever                nature                recovered from such action shall belong solely to                LICENSOR. |
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**ARTICLE      10 - CONFIDENTIALITY**

| 10.1 | In                connection with this Agreement, it is acknowledged that each party                may                disclose its confidential and proprietary information to the other                party.                Any such information that is first disclosed in writing, or if first                disclosed orally is later transmitted in written form, and is labeled                as                “Confidential” is referred to herein as “Confidential Information.” No                ownership or other rights or interests in Confidential Information                shall                be transferred or otherwise affected by its disclosure to the other                Party. |
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| 10.2 | Each                party hereto shall maintain the Confidential Information of the other                party in confidence, and shall not disclose or otherwise communicate                such                Confidential Information to others, or use it for any purpose except                pursuant to, and in order to carry out, the terms and objectives                of this                Agreement, and hereby agrees to exercise every reasonable precaution                to                prevent and restrain the unauthorized disclosure of such Confidential                Information by any of its directors, officers, employees, consultants                or                agents. |
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| 10.3 | Each                Party may disclose Confidential Information of the other Party                to                its legal or financial advisors and to those employees, directors                or                consultants that have a need to know such Confidential Information,                provided such persons are bound by confidentiality restrictions                substantially similar to those set forth herein.                Each Party shall be responsible for compliance with the confidentiality,                use and other terms of this Article by (a) such Party itself and                its                Affiliates, subLICENSEEs, contractors and consultants (including                third-party clinicians), and (b) each of the foregoing                persons’ respective personnel, agents and representatives, as well as (c)                any other persons to whom such Party directly or indirectly makes                available, discloses or provides any Confidential Information of                the other                Party in accordance with this Section 10.3. Each Party shall take                appropriate action, whether by instruction, agreement or otherwise,                to                ensure the protection, confidentiality and security of such Confidential                Information. |
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| 10.4 | The                obligations set forth in this Article 10 shall remain in force during                and                shall survive the entry into and expiration or earlier termination                of this                Agreement for any reason.                Failure on the part of the a receiving party to abide by this section                or                Article 10 shall cause the disclosing party irreparable harm for                which                damages will not be an adequate remedy at law. Accordingly, the disclosing                party shall have the right to seek injunctive relief to prevent any                threatened or actual violations of this section in addition to whatever                remedies it may have at law. Receiving party expressly                waives the defense that a remedy in damages will be                adequate. |
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| 10.5 | The                provisions of this Article 10 shall not apply to any Confidential                Information disclosed hereunder                which: |
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|   | (a) | Was                lawfully disclosed to the recipient by an independent third party                rightfully in possession of the Confidential Information;                or |
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|   | (b) | Has                been published or is generally known to the public in accordance                with                Article 5 or otherwise through no fault or omission by any of the                parties;                or |
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|   | (c) | Was                independently known to the recipient prior to receipt from the disclosing                party without confidentiality restriction, or was independently developed                by the recipient without reference to the disclosing party’s Confidential                Information, in either case, as is demonstrably documented in written                records of the recipient; or |
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|   | (d) | Is                required to be disclosed by either party to comply with court orders                or                applicable laws (including the disclosure obligations of the LICENSEE                pursuant to the Securities Exchange Act of 1934, as amended), to                defend or                prosecute litigation or to comply with governmental regulations;                provided,                however, that such party gives the other party prompt notice of such                requirement so as to enable to take steps to protect its Confidential                Information and takes reasonable and lawful actions to avoid and/or                minimize the degree of such                disclosure. |
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**ARTICLE      11 - WARRANTY DISCLAIMER; LIMITATION ON LIABILITY**

| 11.1 | Nothing                in this Agreement shall be construed                as: |
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|   | (a) | A                warranty or representation by LICENSOR as to the validity or scope                of any                Patent; |
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|   | (b) | A                warranty or representation that anything made, used, sold or otherwise                disposed of under any license granted in this Agreement is or will                be free                from infringement of patents, copyrights and/or trademarks of third                parties, except as set forth                herein; |
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|   | (c) | An                obligation of LICENSOR to bring or prosecute actions or suits against                third parties for infringement; |
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|   | (d) | Conferring                rights to use in advertising, publicity or otherwise any trademark                or the                name of LICENSOR; or |
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|   | (e) | Granting                by implication, estoppel or otherwise any licenses under patents                of                LICENSOR other than the licenses granted under Section 2 hereof,                regardless of whether such other patents are dominant of or subordinate                to                any Patent. |
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| 11.2 | LICENSOR                hereby represents and warrants that: |
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| 11.3 | Except                as expressly set forth in this Agreement, NEITHER PARTY MAKES ANY                REPRESENTATIONS, EXTENDS ANY WARRANTIES OF ANY KIND, EITHER EXPRESS                OR                IMPLIED, AND ASSUMES NO RESPONSIBILITIES WHATEVER WITH RESPECT TO                THE USE,                SALE OR OTHER DISPOSITION OF PRODUCTS, PROCESSES, OR SERVICES                INCORPORATING OR MADE BY USE OF THE TECHNOLOGY, KNOW-HOW, OR PATENTS                LICENSED UNDER THIS AGREEMENT OR INFORMATION, IF ANY, FURNISHED UNDER                THIS                AGREEMENT. EXCEPT AS EXPRESSLY SET FORTH HEREIN, SUCH TECHNOLOGY,                KNOW-HOW, PATENTS AND INFORMATION ARE PROVIDED AS IS, WITHOUT WARRANTY                OF                MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR ANY OTHER                WARRANTY,                EXPRESS OR IMPLIED. |
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| 11.4 | EXCEPT                AS PROVIDED IN SECTION 11.6, BELOW, NEITHER PARTY ASSUMES ANY LIABILITY                UNDER THIS AGREEMENT FOR ACTUAL MONETARY DAMAGES IN EXCESS OF THE                AGGREGATE ROYALTY PAYMENTS MADE BY LICENSEE TO LICENSOR DURING THE                TWELVE                MONTH PERIOD IMMEDIATELY PRECEDING THE DATE OF ASSERTION OF A FIRST                CLAIM                BY A PARTY OR $50,000, WHICHEVER IS GREATER. EXCEPT AS PROVIDED IN                SECTION                11.6, BELOW, IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER                PARTY                FOR ANY LOSS OF DATA, LOST PROFITS, COST OF PROCUREMENT OF SUBSTITUTE                TECHNOLOGY OR SERVICES OR FOR ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL                OR                INDIRECT DAMAGES ARISING FROM THE USE OF THE PATENTS OR KNOW HOW                OR                OTHERWISE ARISING OUT OF THIS AGREEMENT, HOWEVER CAUSED AND ON ANY                THEORY                OF LIABILITY, WHETHER FOR BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE)                OR OTHERWISE. THIS LIMITATION WILL APPLY EVEN IF A PARTY HAS BEEN                ADVISED                OF THE POSSIBILITY OF SUCH DAMAGES. THESE LIMITATIONS SHALL APPLY                NOTWITHSTANDING THE FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED                REMEDY. |
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| 11.5 | The                preceding Section 11.4 shall not apply to (a) a material breach by                a Party                of Article 10 (Confidentiality), or (b) damages, losses and claims                arising                out of a Party’s willful misconduct or fraud, or (c) a Party’s                indemnification obligations under Article 14. The Parties acknowledge                that                these Limitations of Liability, as expressed in Sections 11.4 and                11.5                have been separately negotiated, are a material inducement to the                Parties                entering into this Agreement on the terms provided herein and shall                be                enforceable regardless of whether any remedy provided for fails of                its                essential purpose. |
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**ARTICLE      12 - NOTICES**

| 12.1 | Communications                to LICENSEE concerning this Agreement should be addressed                to: |
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| 12.2 | Communications                to LICENSOR concerning this Agreement should be addressed                to: |
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**ARTICLE      13 - TERMINATION**

| 13.1 | LICENSEE                may terminate this Agreement at any time by providing three month’s                written notice to LICENSOR. Upon termination a final report shall                be                submitted to LICENSOR, and any royalty payments and unreimbursed                patent                expenses due to LICENSOR shall become immediately payable. |
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| 13.2 | In                the event that LICENSOR shall be in default of any of its obligations                hereunder, the LICENSEE may, at its sole option terminate this Agreement                by providing written notice to LICENSOR specifying the nature of                the                default. Termination under these circumstances shall be effective                thirty                (30) days following receipt of said notice by LICENSOR, unless LICENSOR                cures said default prior to the expiration of said thirty (30) day                period. |
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| 13.3 | In                the event that LICENSEE shall be in material default of any of its                obligations hereunder, LICENSOR may at its sole option: (a) terminate                this                Agreement or (b) convert the exclusive license hereunder to a                non-exclusive license. LICENSOR shall exercise either of these options                by                providing written notice to LICENSEE specifying the nature of the                default                including the amount of royalties then due, if any. Termination under                these circumstances shall be effective thirty (30) days following                receipt                of said notice by LICENSEE, unless LICENSEE cures said default, or                has                taken substantial steps to cure such default, and makes payment of                all                monies due plus interest, if any, prior to the expiration of said                thirty                (30) day period. |
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| 13.4 | Upon                termination, LICENSEE shall provide LICENSOR                with: |
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|   | (a) | The                right to access any regulatory information filed with any US or foreign                government agency with respect to the Technology, Know-How or Patents;                and |
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|   | (b) | If                LICENSEE has filed patent applications or obtained patents which                represent                a modification or improvement within the scope of the claims contained                in                the Patents, LICENSEE agrees upon request to enter into good faith                negotiations with LICENSOR or its future LICENSEE(s) for the purpose                of                granting licensing rights to said modifications or improvements in                timely                fashion and under commercially reasonable                terms. |
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| 13.6 | Upon                any termination of this Agreement or conversion to a non-exclusive                license                under Paragraph 13.3, neither party shall be relieved of any obligations                incurred prior to such termination or conversion, and the obligations                of                the parties under any provisions which by their nature are intended                to                survive any such termination or conversion shall survive and continue                to                be enforceable. Upon the expiration (but not in the event of premature                termination) of the Agreement, LICENSEE shall have a perpetual, royalty                free, fully paid-up, non-exclusive license under any Know-How to                make,                have made, use, sell, offer for and sale the Products, Processes                and                Services after such expiration. |
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| 13.7 | In                the event (i) that a court of competent jurisdiction determines that                the                LICENSEE is insolvent, such that its liabilities exceed the fair                market                value of its assets, (ii) the LICENSEE shall make an assignment for                the                benefit of creditors, or (iii) of the filing of a petition for relief                in                bankruptcy by the LICENSEE on its own behalf, or the filing of any                such                petition against the LICENSEE if the proceeding is not dismissed                or                withdrawn within ninety (90) days thereafter, LICENSOR shall have                the                right to terminate this entire Agreement immediately upon giving                LICENSEE                written notice of such termination. |
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| 13.8 | Any                sublicenses granted by LICENSEE under this Agreement shall provide                for                assignment to LICENSOR of LICENSEE’s interest therein upon termination of                this Agreement, solely as it may relate to the Technology, Know-how                or                Patents and not to any other interest therein of the LICENSEE. |
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**ARTICLE      14 - INDEMNIFICATION**

| 14.1 | LICENSEE                  agrees to defend LICENSOR at LICENSEE’s cost and expense, and will                  indemnify and hold harmless LICENSOR and its trustees, officers,                  faculty,                  professional staff, employees, and agents and their respective                  successors,                  heirs and assigns (the “LICENSOR Indemnitees”) from and against any and                  all claims, losses, costs, damages, fees (including attorneys fees)                  or                  expenses arising out of or in connection with (i) the manufacture,                  use,                  commercialization, marketing or sale by LICENSEE of any Product,                  Process,                  or Service hereunder (including but not limited to any product                  liability                  claims, whether brought as a tort, breach of warranty or strict                  liability                  cause of action) and (ii) any breach by LICENSEE of a material                  term of                  this Agreement. Notwithstanding the foregoing, the LICENSEE’s                  indemnification obligations hereunder shall not apply to any claim                  or                  action alleging that the Technology, Know-How or Patent infringes                  the                  intellectual property rights of a third-party if such infringement                  would                  exist even without the actions of the LICENSEE under this Agreement,                  in                  which event LICENSOR shall defend and indemnify the LICENSEE in                  accordance                  with the provisions of Section 14.2 hereof. LICENSEE agrees, at                  its own                  expense, to provide attorneys reasonably, acceptable to LICENSOR                  to defend                  against any actions brought or filed against any LICENSOR Indemnitee                  with                  respect to the subject of the indemnity contained herein, whether                  or not                  such actions are rightfully                  brought. |
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| 14.2 | LICENSOR                agrees to defend LICENSEE at LICENSOR’s cost and expense, and will                indemnify and hold harmless LICENSEE and the LICENSEE’s Affiliates,                directors, officers, agents and personnel and their respective successors,                heirs and assigns (the “LICENSEE Indemnitees”) from and against any and                all claims, losses, costs, damages, fees (including attorneys fees)                or                expenses arising out of or in connection with (i) a claim that the                Technology, Know-how or Patents infringes the intellectual property                rights                of a third-party and (ii) any breach by LICENSOR of a material term                of                this Agreement. Notwithstanding the foregoing, LICENSOR’s indemnification                obligations hereunder shall not apply to any claim or action contemplated                by Section 14.2(i) to the extent that such claim arises directly                from the                LICENSEE’s manufacture, use, commercialization, marketing or sale of any                Product, Process, or Service hereunder, in which event the LICENSEE                shall                defend and indemnify LICENSOR in accordance with the provisions of                Section                14.1 hereof. LICENSOR agrees, at its own expense, to provide attorneys                reasonably, acceptable to LICENSEE to defend against any actions                brought                or filed against any LICENSEE Indemnitee with respect to the subject                of                the indemnity contained herein, whether or not such actions are rightfully                brought. |
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| 14.3 | If                such an infringement claim is made, the party providing indemnity                hereunder may, at its own expense, exercise any of the following                remedies                that is reasonably and commercially practicable: (1) obtain for the                other                party the right to continue to use, the Technology consistent with                the                Agreement; (2) modify the Technology so it is non-infringing and                in                compliance with this Agreement; or (3) replace the Technology with                non-infringing technology that is compliant with this Agreement. |
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| 14.4 | The                indemnification obligations hereunder are contingent upon the indemnified                party (a) giving prompt written notice of any claim for which                indemnification is sought to the indemnifying party; (b) granting                sole control of the defense or settlement of the claim or action                to the                indemnifying party (except that the indemnified party’s prior written                approval will be required for any settlement that reasonably can                be                expected to require a material affirmative obligation of or result                in any                ongoing material liability to the indemnified party); and                (c) providing reasonable cooperation to the indemnifying party and,                at the indemnifying party’s request and expense, assistance in the defense                or settlement of the claim. Notwithstanding the foregoing, the                indemnification obligations hereunder shall not be relieved hereunder                for                failure to do the foregoing, or delay with so doing, unless the                indemnifying party is prejudiced thereby. In addition, the indemnified                party may, at its own expense, participate in its defense of any                claim. |
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**ARTICLE      15 - INSURANCE REQUIREMENTS**

| 15.1 | Beginning                at such time as LICENSEE begins to exercise the rights it has been                granted                pursuant to Article 2, LICENSEE shall at its sole cost and expense                procure                and maintain commercial general liability insurance in amounts not                less                than one million U.S. Dollars ($1,000,000) per incident and $1,000,000                annual aggregate, and naming the Indemnitees as additional insureds.                Such                general liability insurance shall provide (i) product liability coverage                and (ii) broad form contractual liability coverage for LICENSEE’s                indemnification obligations under this Agreement. The LICENSEE shall                also                maintain worker’s compensation coverage consistent with statutory                requirements. Such insurance shall be carried with companies rated“A” or                better by A. M. Best or a self-insurance program reasonably acceptable                to                LICENSOR. The minimum amounts of insurance coverage required shall                not be                construed to create a limit of LICENSEE’s liability with respect to its                indemnification obligations under this                Agreement. |
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| 15.2 | LICENSEE                shall provide LICENSOR with written evidence of such insurance upon                request of LICENSOR. LICENSEE shall provide LICENSOR with written                notice                at least 30 days prior to the cancellation, non-renewal or material                adverse change in such insurance. If LICENSEE or its subLICENSEE,                Affiliate or agent does not obtain replacement insurance providing                comparable coverage within a period of 60 days following any such                cancellation, non-renewal or material adverse change, LICENSOR shall                have                the right to terminate this Agreement effective at the end of such                60 day                period upon written notice to the                LICENSEE. |
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| 15.3 | LICENSEE                shall maintain such commercial general liability insurance beyond                the                expiration or termination of this Agreement during (i) the period                that any                Product, Process or Service incorporating the Technology, Know-How                or                Patents continues to be commercially distributed or sold by LICENSEE                or by                a subLICENSEE, or an Affiliate or agent of LICENSEE and (ii) for                a                reasonable period thereafter, which in no event shall be less than                five                (5) years. |
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**ARTICLE      16 - MISCELLANEOUS**

| 16.1 | LICENSEE                shall not use or refer to LICENSOR, any LICENSOR trademarks, or any                LICENSOR employees or departments in any advertisement, sales material,                website, or any other form of publicity without the prior written                consent                of LICENSOR, which consent shall not be unreasonably                withheld. |
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| 16.2 | This                exclusive license Agreement is personal as to LICENSEE, and neither                this                Agreement nor any of the rights or obligations hereunder may be assigned                or transferred by either party without the prior written consent                of the                other party. |
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| 16.3 | It                is understood that LICENSOR is subject to United States laws and                regulations controlling the export of technical data, computer software,                laboratory prototypes and other commodities (including *inter                alia*                the Arms Export Control Act, as amended and the Export Administration                Act                of 1979 as amended), and that its obligations hereunder are contingent                on                compliance with all applicable United States export laws and regulations.                The transfer of certain technical data and/or commodities may require                a                license from the cognizant agency of the United States Government                and/or                written assurances by LICENSEE that LICENSEE shall not export data                or                commodities to certain foreign countries without prior approval of                such                agency. LICENSOR neither represents nor warrants that a license shall                not                be required nor that, if required, it shall be issued. In any event,                LICENSEE specifically agrees not to export or re-export any information                and/or technical data and/or products in violation of any applicable                USA                laws and/or regulations. |
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| 16.4 | This                Agreement shall be construed under and interpreted under the laws                of the                State of California, USA, except that questions affecting the construction                and effect of any Patent or copyrights shall be determined by the                national                law of the country in which the Patent or copyrights have been                granted. |
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| 16.5 | All                written communications under this Agreement shall be in the English                language. |
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| 16.6 | In                the event that either party is prevented from performing or is unable                to                perform any of its obligations under this Agreement due to any act                of God,                fire, casualty, flood, war, strike, lockout, failure of public utilities,                government regulation or the like, such party shall give notice to                the                other party in writing promptly, and thereupon the affected party's                performance shall be excused and the time for performance shall be                extended for the period of delay or inability to perform due to such                occurrence. |
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| 16.7 | The                waiver by either party of a breach or default of any provisions of                this                Agreement by the other party must be in written form and signed by                both                parties, and shall not be construed as a waiver of any succeeding                breach                of the same or any other provision. No failure or delay by either                Party to                require the other to perform strictly in accordance with the terms                hereof                shall preclude that Party from requiring performance by the other                at any                later time. |
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| 16.8 | This                Agreement contains the full understanding of the parties with respect                to                the subject matter hereof and supersedes all prior understandings                and                writings relating thereto. |
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| 16.9 | This                Agreement may only be amended in a writing executed by an authorized                signatory for each party. The parties agree that any photocopied                or                electronically produced copy of this fully executed original Agreement                shall have the same legal force and effect as a copy of the Agreement                that                has the original signatures. The parties also agree that this Agreement                may be executed in two counterparts, which together shall constitute                one                original version of this Agreement. |
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| 16.10 | Each                Party shall bear its own costs and expenses incurred in the performance                of                its obligations hereunder without charge or expense to the other                except as                otherwise expressly provided in this Agreement. The Parties are and                shall                remain independent contractors, and nothing in this Agreement shall                be                construed to establish any joint venture, franchise, or relationship                of                partnership, employment or agency between the Parties. No fiduciary                or                quasi-fiduciary relationship does or shall exist between the Parties                by                reason of or in connection with this Agreement, in whole or in part,                and                each of the Parties hereby irrevocably waives any and all claims                and                causes of action against the other for the breach of any fiduciary                or                quasi-fiduciary duty arising out of or in connection with this Agreement. |
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| 16.11 | If                any provision of this Agreement is held to be illegal, invalid or                unenforceable under any applicable present or future law (a) such                provision shall be fully severable, (b) this Agreement shall be construed                and enforced as if such illegal, invalid or unenforceable provision                had                never comprised a part hereof, (c) the remaining provisions of this                Agreement shall remain in full force and effect and shall not be                affected                by the illegal, invalid or unenforceable provision or by its severance                herefrom and (d) in lieu of such illegal, invalid or unenforceable                provision, there shall be added automatically as a part of this Agreement,                a legal, valid and enforceable provision as similar in terms to such                illegal, invalid or unenforceable provision as may be                possible. |
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| 16.12 | Each                Party shall duly execute and deliver, or cause to be duly executed                and                delivered, such further documents and instruments and do and cause                to be                done such further acts and things, including the filing of such                assignments, agreements, documents and instruments, as may be necessary,                or as the other Party may reasonably request, in connection with                this                Agreement or to carry out more effectively the provisions and purposes,                or                to better assure and confirm unto such other Party its rights and                remedies                under this Agreement. |
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