stwa_8k-ex901.htm

Exhibit
10.3


     

     

    Temple
University

    
      	 
      	
              Office
      of Technology Transfer

            	
              phone
      215-204-5732

            
	 
      	
              1601
      North Broad Street

            	
              fax
      215-204-7486

            
	 
      	
              406
      University Services Building (083-45)

            	
              web
      www.patents.temple.edu

            
	 
      	
              Philadelphia,
      PA 19122-6099

            	 
      


    

    


    Sent Via
E-mail

    Confirmation
via UPS

    


    January
9, 2009

    


    Mr. Cecil
Bond Kyte

    Chairman

    Save the
World Air, Inc.

    235
Tennant Avenue, Suite 5 

    Morgan
Hill, California 95037

     

    Dear Mr.
Kyte:

     

    Temple.
University (Temple) hereby grants to Save the World Air, Inc. (STWA) an
extension to the cure period ("Cure Period") resulting from the Notices of
Breach issued to STWA on November 10, 2008 for the agreements between Temple and
STWA ("Agreements') as defined below:

     

    a)      License
Agreement between Temple and STWA effective July 1, 2004 for 'Method and
Apparatus for Treatment of a Fluid' (Temple Agreement Ref.: 443).

     

    b)      License
Agreement between Temple and STWA effective February 2, 2007 for 'Method for
Reduction of Crude Oil Viscosity' (Temple Agreement Ref.: 510).

     

    c)      License
Agreement between Temple University and Save the World Air, Inc. effective
February 2, 2007 for 'Electric Field Assisted Fuel Injection System' (Temple
Agreement Ref.: 509).

     

    d)      Research
Agreement between Temple University and Save the World Air, Inc.
effective February 2, 2007 pertaining to the effect of electric fields on fuel
droplet size and to the effect of electric fields on crude oil viscosity (Temple
Agreement Ref.: 507).

     

    The Cure
Period extension expires on March 31, 2009 and shall be contingent upon the
following payment schedule ("Payment Schedule"):

     

    a)      $100,000
received by Temple from STWA on or before January 31, 2009.

     

    b)      $100,000
received by Temple from STWA on or before February 28, 2009.

     

    c)      $100,000
received by Temple from STWA on or before March 31, 2009.

     

    d)      All
payments regarding past due amounts, with the exception of the prescribed
payments, will, be renegotiated on or before March 31, 2009.  A penalty
equal to one percent (1%) of the amount due and unpaid on the first day of each
calendar month shall be added to the outstanding amount due.

     


    
      
         


      

      
         


        
          

        

      

      
         


      

    


    


    Temple
University

    Mr. Cecil
Bond Kyte

    Page
2

    January
9, 2009

    


    


    STWA's
failure to cure the breach during the Cure Period and according to Payment
Schedule shall result in immediate termination of Agreements unless otherwise
agreed upon in writing by both parties.

     

    We look
forward to resolving these matters and continuing our partnership to bring these
important technologies to market.  Please contact me at your earliest convenience
with any questions.

    


    Sincerely,

     

    /s/
Stephen G. Nappi 

      
        

      

    

    Stephen
G. Nappi

    Director
of Technology Transfer Operations TEMPLE UNIVERSITY

    


     

    
      
        

      

    

    Acknowledged
and agreed by: 

     

    SAVE THE
WORLD AIR, INC.

    


    /s/
Cecil Bond Kyte 

      

    

    Cecil
Bond Kyte

    Chairman
of the Board

    
 

     

     

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