----

----

----

|   | U.C.      Case No.:  2008-399 |
|--------|-----------------------------------------|

----

----

|   | Now,      therefore, the Parties agree asfollows: |
|--------|---------------------------------------------------|

| 1.1 | "Affiliate"      of Licensee means any entity that, directly or indirectly, Controls      Licensee, is Controlled by Licensee, or is under common Control with      Licensee. "Control" means (i) having the actual, present capacity to elect      a majority of the directors of such entity, (ii) having the power to      direct at least forty percent (40%) of the voting rights entitled to elect      directors of such entity, or (iii) in any country where the local law will      not permit foreign equity participation of a majority of the outstanding      stock or voting rights, the ownership or control, directly or indirectly,      of the maximum percentage of such outstanding stock or voting rights      permitted by local law. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.3 | "Licensed      Method" means any process or method the use or practice of which, but for      the license granted pursuant to this Agreement, (a) would infringe, or      contribute to or induce the infringement of, a Valid Claim of any issued,      unexpired patent under  Patent Rights, or (b) is covered by a      claim  in a pending patent application under Patent      Rights.  As used in subsection (b) of this Paragraph 1.3,      “covered by a claim in a pending patent application” means that such use      or practice would, but for the license granted pursuant to this Agreement,      constitute infringement, or contributory infringement, or inducement of      infringement of such claim if such claim were  issued. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.4 | "Licensed      Product" means any product, material, kit, or other article of manufacture      or composition of matter, the manufacture, use, Sale, offer for Sale, or      import of which (a) would require the performance of Licensed Methods, or      (b) but for the license granted pursuant to this Agreement, would      infringe, or contribute to or induce the infringement of a Valid Claim of      any issued, unexpired patent under Patent Rights, or (c) is covered by a      claim in a pending patent application under Patent Rights.  As      used in subsection (c) above of this Paragraph 1.4, “covered by a claim in      a pending patent application” means that such manufacture, use, Sale,      offer for Sale or import would, but for the license granted pursuant to      this Agreement, constitute infringement, or contributory infringement, or      inducement of infringement of such claim if such claim were      issued. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1.5 | “Licensed      Service” means a service provided using Licensed Products or Licensed      Methods, including without limitation any such service provided in the      form of contract research or other research performed by Licensee on      behalf of a third party. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.6 | "Licensed      Territory" means United States of America and its territories and      possessions, and any foreign countries where Patent Rights      exist. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.7 | "Net      Sales" means the gross invoice price charged by, and the value of non-cash      consideration owed to, Licensee or a Sublicensee for Sales      of  Licensed Products and  Licensed Services, less the      sum of the following actual and customary deductions where      applicable:  cash, trade or quantity discounts; sales, use,      tariff, import/export duties or other excise taxes when included in gross      sales, but not value-added taxes assessed or income taxes derived from      such sales; transportation charges; and allowances or credits to customers      because of rejections or returns.  For purposes of calculating      Net Sales, a Sale to a Sublicensee for end use by the Sublicensee will be      treated as a Sale at Licensee’s listprice. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.8 | "Patent      Rights" means The Regents' rights in the claims of U.S. Patent      Application, Serial Number 61/154,720, entitled "Wicking Condensate      Evaporator at AC Condenser" filed on February 23, 2009,  by Dr.      Richard C. Bourne and assigned to      The Regents; continuing applications thereof including divisions,      substitutions, extensions and continuation-in-part applications (only to      the extent, however, that claims in the continuation-in-part applications      are entitled to the priority filing date of the above-listed parent patent      application); any patents issuing on said applications or continuing      applications including reissues; and any corresponding foreign patents or      applications. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.9 | "Sale"      means, for Licensed Products and Licensed Services, the act of selling,      leasing or otherwise transferring, providing, or furnishing such product      or service for any consideration.  Correspondingly, "Sell" means      to make or cause to be made a Sale, and "Sold" means to have made or      caused to be made a Sale. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1.10 | “Sublicense”      means a sublicense under thisAgreement. |
|------|-----------------------------------------------------------------------|

| 1.11 | “Sublicensee”      means a sublicensee under thisAgreement. |
|------|-------------------------------------------------------------------------|

| 1.12 | “Sublicense      Agreement” means a sublicense agreement under this    Agreement. |
|------|-----------------------------------------------------------------------------------------------|

| 1.13 | “Valid      Claim” means a claim of a patent in any country where the claim (a) has      not expired and (b) has not been held to be invalid by a final judgment of      a court of competent jurisdiction from which no appeal can be or is      taken. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.1 | Subject      to the limitations set forth in this Agreement, including without      limitation the rights reserved in Paragraph 2.2, The Regents hereby grants      to Licensee an exclusive license under Patent Rights, in the Licensed      Field of Use in the Licensed Territory, to make, use, offer for Sale,      import, and Sell Licensed Products and Licensed Services, and to practice      Licensed Methods. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2 | The      Regents reserves the right to do any one or more of the      following: |
|-----|----------------------------------------------------------------------------------|

|   | (a) | publish      any technical data resulting from research performed by The Regents      relating to the Invention; |
|--------|-----|------------------------------------------------------------------------------------------------------------------|

|   | (b) | make      and use the Invention and associated technology for educational and      research purposes; |
|--------|-----|-------------------------------------------------------------------------------------------------------|

|   | (c) | practice      Patent Rights in order to make and use products, and to practice methods,      for educational and research purposes;and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | allow      other educational and non-profit institutions to do any one or more of the      activities of Subparagraphs 2.2 (a), (b), and (c) above, for educational      and research purposes. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2.3 | Licensee      will promptly inform The Regents of any change in Licensee’s small entity      status, as defined in 37 CFR 1.27, or of any Sublicense to an entity which      does not have small entity status, as defined in 37 CFR    1.27. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.4 | This      Agreement is subject to rights of, and obligations owed to, the U.S.      Government, if any. |
|-----|---------------------------------------------------------------------------------------------------------|

| 3.1 | The      Regents hereby further grants to Licensee the right to grant to Affiliates      and to third parties a Sublicense under the rights granted to Licensee      hereunder, provided that, Licensee has exclusive rights under this      Agreement at the time of the grant of the Sublicense.  Every      Sublicense will include: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | a      statement setting forth the date upon which Licensee's exclusive license      rights hereunder will expire; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------|

|   | (b) | a      provision requiring the performance of all the obligations due to The      Regents (and, if applicable, the United States Government) under this      Agreement other than those rights and obligations specified in Article 4      (License Issue Fee/Maintenance Fees) and Paragraph 5.3 (Minimum Annual      Royalty); |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | a      provision requiring payment of royalties to Licensee in an amount      sufficient to permit Licensee to meet its royalty obligations to The      Regents at the rates and bases set forth in this  Agreement; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | a      prohibition on the grant of further Sublicenses;  and |
|--------|-----|--------------------------------------------------------------|

|   | (e) | the      same provision for indemnification of The Regents as has been provided for      in this Agreement. |
|--------|-----|-------------------------------------------------------------------------------------------------------------|

| 3.2 | Licensee      will pay to The Regents twenty-five percent (25%) of any cash      consideration, and of the cash equivalent of all other consideration,      which is due to Licensee for the grant of rights under a Sublicense,      excluding payments due to Licensee as a royalty based on Sales by the      Sublicensee.  Payment owed to The Regents under this Paragraph      3.2 is in addition to payments owed by Licensee to The Regents as Earned      Royalties under Paragraph 5.1 below based on Sales by the      Sublicensee. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 3.3 | Licensee      will notify The Regents of each Sublicense granted hereunder and furnish      to The Regents a copy of each such Sublicense Agreement and any amendments      thereof. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.4 | Affiliates      of Licensee will have no licenses under Patent Rights except as granted by      Sublicense pursuant to thisAgreement. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------|

| 3.5 | For      the purposes of this Agreement, the operations of all Sublicensees will be      deemed to be the operations of Licensee, for which Licensee will be      responsible. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.6 | Licensee      will collect and guarantee payment of all monies and other consideration      due The Regents from Sublicensees, and deliver all reports due The Regents      and received from Sublicensees. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.7 | Upon      termination of this Agreement for any reason, all Sublicenses that are      granted by Licensee pursuant to this Agreement where the Sublicensee is in      compliance with its Sublicense Agreement as of the date of such      termination will remain in effect and will be assigned to The Regents,      except that The Regents will not be bound to perform any duties or      obligations set forth in any Sublicenses that extend beyond the duties and      obligations of The Regents set forth in this  Agreement. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.1 | Licensee      will pay to The Regents a non-creditable, non-refundable license issue fee      (“License Issue Fee”) of two thousand dollars ($2,000.00) due upon signing      of this Agreement.  The Regents acknowledge the receipt of two      thousand dollars ($2,000.00) paid by Licensee under the Letter Agreement      which sum is creditable towards the License Issue Fee due under this      Paragraph 4.1.  The License Issue Fee is non-refundable and not      an advance against royalties or other payments due under this      Agreement. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2 | Licensee      will pay to The Regents a license maintenance fee of two thousand dollars      ($2,000.00) on the one-year anniversary of the Effective Date and on each      anniversary of the Effective Date until the year following the year of the      first Sale of a Licensed Product or Licensed  Service. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5.1 | Licensee      will pay to The Regents earned royalties (“Earned Royalties”) as      follows: |
|-----|----------------------------------------------------------------------------------------------------------|

|   | (a) | Subject      to Subparagraphs 5.1(b), 5.1(c), 5.1(d) and 5.1 (e) below, Licensee will      pay Earned Royalties at the rate of one and one-half percent (11⁄2%) of the      Net Sales of all Licensed Products and Licensed  Services. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | In      the event a Licensed Product is Sold by Licensee or a Sublicensee as a      component (“Component”) of a combination product (“Combination Product”),      and the Component is separately Sold by Licensee or a Sublicensee with a      separate list price (“Component List Price”), then the Earned Royalty due      under this Paragraph 5.1 for Net Sales of the Combination Product will be      calculated using the Component List Price rather than using the gross      invoice price charged for the Combination  Product. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | In      the event a Licensed Product is Sold by Licensee or a Sublicensee as a      Component of a Combination Product, and the Component is not separately      Sold by Licensee or a Sublicensee but was previously separately Sold by      Licensee or a Sublicensee, then the Earned Royalty due under this      Paragraph 5.1 for Net Sales of the Combination Product will be calculated      using the Component List Price as previously listed, as multiplied by an      inflation adjustment factor ("Inflation Adjustment Factor"), rather than      using the gross invoice price charged for the Combination      Product.  The Inflation Adjustment Factor will be the ratio of      the Consumer Price Index ("CPI") at the time of such Net Sales, as      compared to the CPI at the end of the calendar year in which such      Component was most recently previously Sold by Licensee or a      Sublicensee.  In such event, Licensee will at the time of the      royalty report under Paragraph 7.4 provide The Regents in writing with the      Inflation Adjustment Factor used. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | In      the event a Licensed Product is Sold by Licensee or a Sublicensee as a      Component of a Combination Product, and the Component is not, and has not      previously been, separately Sold by Licensee or a Sublicensee, then the      Earned Royalty due under this Paragraph 5.1 for Net Sales of the      Combination Product will be calculated pro rata based on the relative cost      of manufacture of the Component as compared to the cost of manufacture of      the Combination Product.  In such event, Licensee will at the      time of the royalty report under Paragraph 7.4 provide The Regents with      information in writing on cost of manufacture sufficient to justify the      calculation under this Subparagraph5.1(d). |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (e) | In      the event a Licensed Service is Sold by Licensee or a Sublicensee as part      of a Sale of services ("Combination Services"), where the Combination      Services include both Licensed Services and other services, and where such      Sale of Combination Services is invoiced as a single invoice without      itemization as to the Licensed Services part of the Combination Services,      then Licensee will inform The Regents in writing and the Parties will      agree to an appropriate pro-rata apportionment formula for such Sales of      Combination Services. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2 | Earned      Royalties accruing to The Regents will be paid to The Regents quarterly      within sixty (60) days after the end of each calendar quarter as follows:      May 31 (for first quarter); August 31 (for second quarter), November 30      (for third quarter), and February 28 (for fourth  quarter). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.3 | Beginning      in the calendar year after the first Sale of a Licensed Product or      Licensed Service, and in each succeeding calendar year thereafter,      Licensee will pay to The Regents a minimum annual royalty (“Minimum Annual      Royalty”) of three thousand dollars ($3,000.00) for the life of this      Agreement.  The Minimum Annual Royalty will be paid to The      Regents by February 28 of each year and will be credited against the      Earned Royalties due and owing for the calendar year for which the Minimum      Annual Royalty is made. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.4 | All      payments due The Regents will be payable in United States      dollars.  When Licensed Products and Licensed Services, are Sold      for monies other than United States dollars, Earned Royalties will first      be determined in the foreign currency of the country in which the Sale was      made and then converted into equivalent United States      dollars.  The exchange rate will be that rate quoted in the      Wall Street      Journal on the last business day of the reporting      period. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5.5 | Payments      due for Sales occurring in any country outside the United States will not      be reduced by any taxes, fees, or other charges imposed by the government      of such country on the remittance of royalty income.  Licensee      will also be responsible for all bank transfer  charges. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.6 | Licensee      will make all payments under this Agreement either by check or electronic      transfer, payable to "The Regents of the University of California" and      Licensee will forward such payments to The Regents at the address shown in      Paragraph 23.1 below. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.7 | If      any patent or patent application, or any claim thereof, included within      Patent Rights expires or is held invalid in a final decision by a court of      competent jurisdiction and last resort and from which no appeal has been      or can be taken, all obligation to pay Earned Royalties based on such      patent, patent application or claim, or any claims patentably indistinct      therefrom will cease as of the date of such expiration or final      decision.  Licensee will not, however, be relieved from paying      any Earned Royalties that accrued before such expiration or decision or      that are based on another valid patent or claim not expired or involved in      such decision. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.1 | Licensee,      upon execution of this Agreement, will diligently proceed with the      development, manufacture, and Sale of Licensed Products, Licensed      Services, and Licensed Methods, and will diligently market them in      quantities sufficient to meet the marketdemand. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2 | In      addition to its obligations under Paragraph 6.1, Licensee specifically      commits to achieving the following objectives and milestones in its      activities under this Agreement: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Milestone      #1: Funding of Licensee:  $250,000.00 by December 31,      2010; |
|--------|-----|-------------------------------------------------------------------------------------------|

|   | (b) | Milestone      #2:  Manufacturing of Licensed Product: begins (including by a      third party on behalf of Licensee) by May 31,  2010; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (c) | Milestone      #3:  First Sales of Licensed Product or Licensed Services: by      August 31, 2010; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------|

|   | (d) | Milestone      #4:  1,000 units of Licensed Product Sold: by August 31,      2011. |
|--------|-----|----------------------------------------------------------------------------------------------|

| 6.3 | If      Licensee is unable to meet any of its diligence obligations set forth in      Paragraphs 6.1 and 6.2, then The Regents will so notify Licensee of      failure to perform. Licensee will have the right and option to extend the      target date of any such diligence obligation for a period of six (6)      months upon the payment of five thousand dollars ($5000) within thirty      (30) days of the date to be extended for each such extension option      exercised by Licensee.  Licensee may further extend the target      date of any diligence obligation for an additional six (6) months upon      payment of an additional five thousand dollars      ($5000).  Additional extensions may be granted only by mutual      written agreement of the Parties.  These payments are in      addition to the Minimum Annual Royalty payments specified in Paragraph      5.3.  Should Licensee opt not to extend the obligation or fail      to meet it by the extended target date, then The Regents will have the      right and option either to terminate this Agreement or to reduce      Licensee's exclusive license to a non-exclusive license.  This      right, if exercised by The Regents, supersedes the rights granted in      Article 2. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.4 | To      exercise either the right to terminate this Agreement or to reduce the      license to a non-exclusive license for lack of diligence under Paragraph      6.1 or 6.2, The Regents will give Licensee written notice of the      deficiency.  Licensee thereafter has sixty (60) days to cure the      deficiency or to request arbitration.  If The Regents has not      received satisfactory tangible evidence that the deficiency has been cured      by the end of the sixty (60)-day period, then The Regents may, at its      option, either terminate the Agreement or reduce Licensee's exclusive      license to a non-exclusive license by giving written notice to      Licensee.  These notices will be subject to Article 22      (Notices). |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.1 | For      the period beginning January 10, 2010, within sixty (60) days of each      subsequent June 30 and December 31, Licensee will submit to The Regents a      semi-annual progress report covering Licensee's activities related to the      development and testing of all Licensed Products, Licensed Services and      Licensed Methods and the obtaining of necessary governmental approvals, if      any, for marketing in the United States.  These progress reports      will be made for all development activities until the first Sale occurs in      the United States. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 7.2 | Each      progress report will be a sufficiently detailed summary of activities of      Licensee and any Sublicensees so that The Regents may evaluate and      determine Licensee’s progress in development of Licensed Products,      Licensed Services, and Licensed Methods, and in meeting its diligence      obligations under Article 6, and will include (but not be limited to) the      following: summary of work completed and in progress; current schedule of      anticipated events and milestones, including diligence milestones under      Paragraph 6.2; anticipated market introduction dates for the Licensed      Territory; and Sublicensees’ activities during the reporting      period. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.3 | In      Licensee’s progress report immediately subsequent to the first Sale by      Licensee or a Sublicensee of Licensed Products or Licensed Services,      Licensee will report the date of such first  Sale. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.4 | After      the first Sale of a Licensed Product or Licensed Service, Licensee will      make quarterly royalty reports to The Regents within sixty (60) days after      the quarters ending March 31, June 30, September 30, and December 31, of      each year.  Each such royalty report will include at least the      following: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | The      number of Licensed Products manufactured and the number of Licensed      Products and Licensed Services Sold, and if applicable, indicating which      Licensed Products and Licensed Services are Combination Products and      Combination Services; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Gross      revenue from Sale of Licensed Products and Licensed    Services; |
|--------|-----|-----------------------------------------------------------------------------|

|   | (c) | Net      Sales pursuant to Paragraph 1.7; |
|--------|-----|-------------------------------------------|

|   | (d) | Total      Earned Royalties due The Regents;and |
|--------|-----|-------------------------------------------------|

|   | (e) | Names      and addresses of any new Sublicensees along with a summary of the material      terms of each new Sublicense Agreement entered into during the reporting      quarter. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.5 | If      no Sales have occurred during the report period, a statement to this      effect is required in the royalty report for that  period. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

----

| 8.1 | Licensee      will keep full, true, and accurate books of accounts containing all      particulars that may be necessary for the purpose of showing the amount of      Earned Royalties payable to The Regents and Licensee’s compliance with      other obligations under this Agreement.  Said books of accounts      will be kept at Licensee's principal place of business or the principal      place of business of the appropriate division of Licensee to which this      Agreement relates.  Said books and the supporting data will be      open at all reasonable times during normal business hours upon reasonable      notice, for five (5) years following the end of the calendar year to which      they pertain, to the inspection and audit by representatives of The      Regents for the purpose of verifying Licensee's royalty statement or      compliance in other respects with this Agreement.  Such      representatives will be bound to hold all information in confidence except      as necessary to communicate Licensee's non-compliance with this Agreement      to The Regents. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.2 | The      fees and expenses of The Regents' representatives performing such an      examination will be borne by The Regents.  However, if an error      in underpaid royalties to The Regents of more than five percent (5%) of      the total Earned Royalties due for any year is discovered, then the fees      and expenses of these representatives will be borne by      Licensee. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.1 | Unless      otherwise terminated by the operation of law or by acts of the Parties in      accordance with the terms of this Agreement, this Agreement will be in      force from the Effective Date and will remain in effect for the life of      the last-to-expire patent or last-to-be-abandoned patent application      licensed under this Agreement, whichever is  later. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 9.2 | Any      termination of this Agreement will not affect the rights and obligations      set forth in the followingarticles: |
|-----|----------------------------------------------------------------------------------------------------------------------------|

|   | Article      1                               | Definitions                                           |
|--------|----------------------------------------------|-------------------------------------------------------|
|   | Article      3                          | Sublicenses                                           |
|   | Article      8      | Books      and Records                                |
|   | Article      9           | Life      of the Agreement                            |
|   | Article      12                              | Disposition      of Licensed Products UponTermination |

|   | Article      15 | Use      of Names and Trademarks |
|--------|-----------------|----------------------------------|

|   | Article      16 | Limited      Warranties |
|--------|-----------------|-------------------------|

|   | Article      18 | Indemnification |
|--------|-----------------|-----------------|

|   | Article      22 | Notices |
|--------|-----------------|---------|

|   | Article      23 | Payments |
|--------|-----------------|----------|

|   | Article      25 | Confidentiality |
|--------|-----------------|-----------------|

|   | Article      28 | Applicable      Law; Venue; Attorneys’ Fees |
|--------|-----------------|---------------------------------------------------|

|   | Article      29 | Scope      of Agreement |
|--------|-----------------|-------------------------|

| 9.3 | Any      termination of this Agreement will not relieve Licensee of its obligation      to pay any monies due or owing at the time of such termination and will      not relieve any obligations, of either Party to the other Party,      established prior to termination. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1 | If      Licensee should violate or fail to perform any term of this Agreement,      then The Regents may give written notice of such default ("Notice of      Default") to Licensee.  If Licensee should fail to repair such      default within sixty (60) days of the effective date of such notice, The      Regents will have the right to terminate this Agreement and the licenses      herein by a second written notice ("Notice of Termination") to      Licensee.  If a Notice of Termination is sent to Licensee, this      Agreement will automatically terminate on the effective date of such      notice.  Such termination will not relieve Licensee of its      obligation to pay any royalty or license fees owing at the time of such      termination and will not impair any accrued rights of The      Regents.  These notices will be subject to Article 22      (Notices). |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2 | Notwithstanding      Paragraph 10.1 above, this Agreement will terminate immediately, upon      written notice given by The Regents in its sole discretion, if Licensee      files a claim including in any way the assertion that any portion of The      Regents’ Patent Rights is invalid or unenforceable, where the filing of      such claim is by the Licensee, by a third party on behalf of the Licensee,      or by a third party at the written urging of the  Licensee. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.3  | Notwithstanding      Paragraph 10.1 above, this Agreement will terminate immediately, upon      written notice given by The Regents in its sole discretion, in the event      of the filing of a petition for relief under the United States Bankruptcy      Code by or against Licensee as a debtor or alleged debtor.        |
|------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 11.1 | Licensee      will have the right at any time to terminate this Agreement in whole or as      to any portion of Patent Rights by giving notice in writing to The      Regents.  Such notice of termination will be subject to Article      22 (Notices) and termination of this Agreement will be effective ninety      (90) days after the effective date of such  notice. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.2 | Any      termination pursuant to Paragraph 11.1 will not relieve Licensee of any      obligation or liability accrued hereunder prior to such termination or      rescind anything done by Licensee or any payments made to The Regents      hereunder prior to the time such termination becomes effective, and such      termination will not affect in any manner any rights of The Regents      arising under this Agreement prior to such  termination. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.1 | Upon      termination of this Agreement, for a period of one hundred twenty (120)      days after the date of termination Licensee may complete and Sell any      partially made Licensed Products and continue to render any previously      commenced Licensed Services, and continue the practice of Licensed Methods      only to the extent necessary to do the foregoing; provided that, all such      Sales will be subject to the terms of this Agreement including, but not      limited to, the payment of royalties at the rate and at the time provided      herein and the rendering of reportsthereon. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.1 | The      Regents will diligently prosecute and maintain the United States and      foreign patent applications and patents under Patent Rights, subject to      Licensee’s reimbursement of The Regents’ out-of-pocket costs under Article      13.3 below.  All patent applications and patents under Patent      Rights will be held in the name of The Regents.  The Regents      will have sole responsibility for retaining and instructing patent      counsel.  The Regents will promptly provide Licensee with copies      of all official patent office correspondence so that Licensee may be      informed of the continuing prosecution, and Licensee agrees to keep this      documentation confidential in accordance with Article      25.  Licensee may comment upon such documentation, provided      that, if Licensee has not commented upon such documentation in reasonable      time for The Regents to sufficiently consider Licensee’s comments prior to      the deadline for filing a response with the relevant government patent      office, The Regents will be free to respond appropriately without      consideration of Licensee'scomments. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 13.2 | The      Regents will use reasonable efforts to prepare or amend any patent      application within Patent Rights to include claims reasonably requested by      Licensee to protect the Licensed Products or Licensed Services      contemplated to be Sold or Licensed Methods to be practiced under this      Agreement. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.3 | Subject      to Paragraph 13.4, all past, present, and future costs for preparing,      filing, prosecuting, and maintaining all United States and foreign patent      applications and patents under Patent Rights (including without limitation      the cost of interferences, reexaminations, and oppositions) will be paid      by Licensee, so long as the licenses granted to Licensee herein are      exclusive.  Such payments by Licensee are due within thirty (30)      days after receipt of invoice from The Regents.  If, however,      The Regents reduces the exclusive licenses granted herein to non-exclusive      licenses pursuant to Paragraphs 6.3 or 6.4, and The Regents grants      additional license(s), the subsequent costs of preparing, filing,      prosecuting and maintaining such patent applications and patents will be      divided equally among the licensed parties from the effective date of each      subsequently granted licenseagreement. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.4 | Licensee's      obligation to underwrite and to pay all United States and foreign patent      filing, prosecution, and maintenance costs for Patent Rights will continue      for so long as this Agreement remains in effect, provided that, Licensee      may terminate its obligations with respect to any given patent application      or patent under Patent Rights in any or all designated countries upon      three (3) months’ written notice to The Regents.  The Regents      will undertake to curtail applicable patent costs billable to Licensee      when such a notice is received from Licensee.  The Regents may      continue prosecution and/or maintenance of such patent applications or      patents at its sole discretion and expense, provided that, Licensee will      have no further right or licensesthereunder. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.1 | Licensee      will mark all products made, used or Sold under this Agreement, or their      containers, in accordance with applicable patent marking    laws. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 15.1 | Nothing      contained in this Agreement will be construed as conferring any right to      use in advertising, publicity or other promotional activities any name,      trademark, trade name, or other designation of either Party by the other      (including any contraction, abbreviation, or simulation of any of the      foregoing).  Unless required by law or consented to in writing      by The Regents, the use by Licensee of the name "The Regents of the      University of California" or the name of any University of California      campus in advertising, publicity or other promotional activities is      expressly prohibited. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.1 | The      Regents warrants to Licensee that it has the lawful right to grant this      license. |
|------|------------------------------------------------------------------------------------------------|

| 16.2 | This      license and the associated Invention are provided WITHOUT WARRANTY OF      MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR ANY OTHER WARRANTY,      EXPRESSED OR IMPLIED.  THE REGENTS MAKES NO REPRESENTATION OR      WARRANTY THAT THE INVENTION, PATENT RIGHTS, LICENSED PRODUCTS, LICENSED      SERVICES OR LICENSED METHODS WILL NOT INFRINGE ANY PATENT OR OTHER      PROPRIETARY RIGHT. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.3 | IN      NO EVENT WILL THE REGENTS BE LIABLE FOR ANY INCIDENTAL, SPECIAL OR      CONSEQUENTIAL DAMAGES RESULTING FROM EXERCISE OF THIS LICENSE OR THE USE      OF THE INVENTION, PATENT RIGHTS, LICENSED METHODS, LICENSED SERVICES OR      LICENSED PRODUCTS. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.4 | Nothing      in this Agreement is or will be construedas: |
|------|-----------------------------------------------------------|

|   | (a) | A      warranty or representation by The Regents as to the validity,      enforceability or scope of Patent Rights;or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------|

|   | (b) | A      warranty or representation that anything made, used, or Sold under any      license granted in this Agreement is or will be free from infringement of      patents of third parties; or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (c) | An      obligation to bring or prosecute actions or suits against third parties      for patent infringement, except as provided in Article 17;    or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Conferring      by implication, estoppel, or otherwise any license or rights under any      patents of The Regents other than Patent Rights, regardless of whether      such patents are dominant or subordinate to Patent Rights;    or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | An      obligation to furnish any know-how not provided in the patents and patent      applications under Patent Rights. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------|

| 17.1 | In      the event that Licensee learns of the substantial infringement of any      Patent Rights, Licensee will promptly provide The Regents with notice and      reasonable evidence of such infringement (“Infringement      Notice”).  During the period and in a jurisdiction where      Licensee has exclusive rights under this Agreement, neither Party will      notify a third party, including the infringer, of the infringement without      first obtaining consent of the other Party, which consent will not be      unreasonably withheld.  Both Parties will use diligent efforts,      in cooperation with each other, to terminate such infringement without      litigation. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.2   | (a)  If      such infringing activity has not been abated within ninety (90) days      following the effective date of the Infringement Notice, Licensee may      institute suit for patent infringement against the      infringer.  The Regents may voluntarily join such suit at The      Regents’ expense, but The Regents may not thereafter separately commence      suit against the infringer for the acts of infringement that are the      subject of Licensee’s suit or any judgment rendered in that      suit.  Licensee may not join The Regents in a suit initiated by      Licensee without The Regents’ prior written consent.  If, in a      suit initiated by Licensee, The Regents is involuntarily joined other than      by Licensee, Licensee will pay any costs incurred by The Regents arising      out of such suit, including but not limited to, any legal fees of counsel      that The Regents selects and retains to represent it in the      suit. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | (b)  If,      within a hundred and twenty (120) days following the effective date of the      Infringement Notice, the infringing activity has not been abated and if      Licensee has not brought suit against the infringer, The Regents may in      its sole discretion institute suit for patent infringement against the      infringer.  If The Regents institutes such suit, Licensee may      not join such suit without The Regents’ consent and may not thereafter      separately commence suit against the infringer for the acts of      infringement that are the subject of The Regents’ suit or any judgment      rendered in that suit.                                                                                                                                                                                                                                                                                                                                                    |

----

| 17.3 | Such      legal action as is decided upon will be at the expense of the Party on      account of whom suit is brought and all recoveries recovered thereby will      belong to such Party, provided that legal action brought jointly by The      Regents and Licensee and participated in by both will be at the joint      expense of both Parties and all recoveries will be allocated in the      following order:  a) to each Party reimbursement for its      attorneys' costs, fees, and other related out-of-pocket expenses to the      extent each Party paid for such costs, fees, and expenses until all such      costs, fees, and expenses are consumed for each Party; and b) any      remaining amount shared jointly by both Parties in proportion to the share      of expenses paid by each Party, but in no event will The Regents’ share be      less than twenty-five percent (25%) of such remaining amount if The      Regents is a Party. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.4 | Each      Party will cooperate with the other Party in litigation instituted      hereunder but at the expense of the Party on account of whom suit is      brought.  Such litigation will be controlled by the Party      bringing the action, except that The Regents may be represented by counsel      of its choice in any suit brought byLicensee. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.5 | Any      agreement made by Licensee for the purposes of settling litigation or      other dispute will comply with the requirements of Article 3      above.  In no event may Licensee admit liability or wrongdoing      on behalf of The Regents without The Regents’ prior written      consent. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.1 | Licensee      will, and will require its Sublicensees to, indemnify, hold harmless, and      defend The Regents and its officers, employees, and agents; sponsor(s) of      the research that led to the Invention; and the inventors of any patents      and patent applications under Patent Rights and their employers, against      any and all claims, suits, losses, damages, costs, fees, and expenses      resulting from or arising out of exercise of this license or any      Sublicense.  This indemnification will include, but not be      limited to, any product liability. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 18.2 | Licensee,      at its sole cost and expense, will insure its activities in connection      with any work performed hereunder and will obtain, keep in force, and      maintain the following insurance: |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Commercial      Form General Liability Insurance (contractual liability included) with      limits as follows: |
|--------|-----|----------------------------------------------------------------------------------------------------------------|

|   | (b) | Worker's      Compensation as legally required in the jurisdiction in which Licensee is      doing business. |
|--------|-----|--------------------------------------------------------------------------------------------------------------|

| 18.3 | The      coverage and limits referred to in Subparagraphs 18.2(a) and 18.2(b) above will not in      any way limit the liability of Licensee under this Article 18. Upon the      execution of this Agreement, Licensee will furnish The Regents with      certificates of insurance evidencing compliance with all requirements, and      Licensee will promptly notify The Regents of any material modification of      the insurance coverages. Such certificateswill: |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | provide      for thirty (30) days' (ten (10) days for non-payment of premium) advance      written notice to The Regents of any cancellation of insurance      coverages; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | indicate      that The Regents has been endorsed as an additional insured under the      coverage described above in Paragraph l8.2;and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | include      a provision that the coverage will be primary and will not participate      with, nor will be excess over, any valid and collectable insurance or      program of self-insurance maintained by The  Regents. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.4 | The      Regents will promptly notify Licensee in writing of any claim or suit      brought against The Regents for which The Regents intends to invoke the      provisions of this Article 18.  Licensee will keep The Regents      informed of its defense of any claims pursuant to this Article      18. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 19.1 | The      Licensee will comply with all applicable international, national, state,      regional, and local laws and regulations in performing its obligations      hereunder and in Licensee’s use, manufacture, Sale, or import of the      Licensed Products or Licensed Services, or in Licensee’s practice of      Licensed Methods.  The Licensee will observe all applicable      United States and foreign laws and regulations governing the transfer to      foreign countries of technical data related to Licensed Products,      including without limitation with respect to the International Traffic in      Arms Regulations (ITAR) and the Export Administration      Regulations. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.2 | Licensee      understands that The Regents is subject to United States laws and      regulations (including the Arms Export Control Act, as amended, and the      Export Administration Act of 1979), controlling the export of technical      data, computer software, laboratory prototypes and other commodities, and      The Regents' obligations to Licensee under this Agreement are contingent      on and subject to compliance with such 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 will      not export such technical data and/or commodities to certain foreign      countries without prior approval of such agency.  The Regents      neither represents that such a license will not be required nor that, if      required, it will be issued. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.1 | 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 will assume all legal obligations to do so.  Licensee      will notify The Regents if it becomes aware that this Agreement is subject      to a United States or foreign government reporting or approval      requirement.  Licensee will 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. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 21.1 | This      Agreement is binding upon and will inure to the benefit of The Regents,      its successors and assigns.  This Agreement is personal to      Licensee and assignable by Licensee only with the written consent of The      Regents, provided that, Licensee may, on written notice to The Regents,      assign this Agreement, including without limitation all obligations owed      to The Regents hereunder, to an acquiror of all or substantially all of      Licensee's stock or assets. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22.1 | All      notices under this Agreement will be deemed to have been fully given and      effective when done in writing and delivered in person, or mailed by      registered or certified U.S. mail, or deposited with a carrier service      requiring signature by recipient, and addressed as  follows: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | To      The Regents: | Technology      Transfer Services                      |
|--------|----------------------|--------------------------------------------------------|
|   |                 | 1850      Research Park Drive, Suite 100               |
|   |                 | Davis,      CA 95618-6134                              |
|   |                 | Attn.:  Director      (UC Case No. 2008-399) |
|   |                 |                                                   |
|   | To      Licensee:    | Octus      Energy, Inc.                                |
|   |                 | 803      Second Street                                 |
|   |                 | Suite      303                                         |
|   |                 | Davis,      CA  95616                        |
|   |                 | Attn.:  John      Argo                       |

| 23.1 | Payments      to The Regents will be made to the following  address: |
|------|----------------------------------------------------------------------|

|   |        | The Regents of the University      of      California |
|--------|--------|-------------------------------------------------------|
|   |   | 1111 Franklin Street, 5th      Floor                  |
|   |   | Oakland, CA94607-5200                                 |
|   |   | Attention:  Executive      Director,        |
|   |   | Research      Administration and                      |
|   |        | Technology Transfer                                   |
|   |   | Referring      to: UC Case No.2008-399                |

----

| 23.2 | If      monies owed to The Regents under this Agreement are not received by The      Regents when due, Licensee will pay to The Regents interest charges at a      rate of ten percent (10%) per annum.  Such interest will be      calculated from the date payment was due until actually received by The      Regents.  Such accrual of interest will be in addition to, and      not in lieu of, enforcement of any other rights of The Regents related to      such late payment.  Acceptance of any late payment will not      constitute a waiver under Article 24 (Waiver) of this      Agreement. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.1 | The      failure of either Party to assert a right hereunder or to insist upon      compliance with any term or condition of this Agreement will not      constitute a waiver of that right or excuse a similar subsequent failure      to perform any such term or condition by the other Party.  None      of the terms and conditions of this Agreement can be waived except by the      written consent of the Party waivingcompliance. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.1 | Subject      to Paragraphs 25.2 and 25.3 below, each Party will hold the other Party's      proprietary business and technical information, patent prosecution      material and other proprietary information, including the negotiated terms      of this Agreement, in confidence and against disclosure to third parties      with at least the same degree of care as it exercises to protect its own      data and license agreements of a similar nature.  This      obligation will expire five (5) years after the termination or expiration      of this Agreement. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.2 | Nothing      contained herein will in any way restrict or impair the right of Licensee      or The Regents to use, disclose, or otherwise deal with any information or      data which: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | at      the time of disclosure to a receiving Party is available to the public or      thereafter becomes available to the public by publication or otherwise      through no act of the receiving Party;or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | the      receiving Party can show by written record was in its possession prior to      the time of disclosure to it hereunder and was not acquired directly or      indirectly from the disclosing Party;or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | is      independently made available to the receiving Party without restrictions      as a matter of right by a third party;or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | is      independently developed by employees of the receiving Party who did not      have access to the information disclosed by the disclosing Party;      or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | is      subject to disclosure under the California Public Records Act or other      requirements of law. |
|--------|-----|----------------------------------------------------------------------------------------------------------|

| 25.3 | The      Regents will be free to release to the inventors and senior administrators      employed by The Regents the terms and conditions of this Agreement upon      their request.  If such release is made, The Regents will inform      such employees of the confidentiality obligations set forth above and will      request that they do not disclose such terms and conditions to      others.  Should a third party inquire whether a license to      Patent Rights is available, The Regents may disclose the existence of this      Agreement and the extent of the grant in Articles 2 and 3 to such third      party, but will not disclose the name of Licensee unless (a) Licensee has      already made such disclosure publicly, (b) Licensee otherwise consents to      such disclosure, or (c) such disclosure is required under the California      Public Records Act or other requirements oflaw. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.4 | Licensee      and The Regents agree to destroy or return to the disclosing Party      proprietary information received from the other in its possession within      fifteen (15) days following the effective date of termination of this      Agreement.  However, each Party may retain one copy of      proprietary information of the other solely for archival purposes in      non-working files for the sole purpose of verifying the ownership of the      proprietary information, provided such proprietary information will be      subject to the confidentiality provisions set forth in this Article      25.  Licensee and The Regents agree to provide each other,      within thirty (30) days following termination of this Agreement, with a      written notice that proprietary information has been returned or      destroyed. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 26.1 | Except      for Licensee’s obligation to make any payments to The Regents hereunder,      and subject to Paragraph 26.2, below, the Parties  will be      excused from any performance required hereunder if such performance is      rendered impossible or infeasible due to any catastrophe or other major      event beyond their 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 Parties' respective obligations hereunder      will resume. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.2 | Either      Party to this Agreement will have the right to terminate this Agreement      upon thirty (30) days’ prior written notice if either Party is unable to      fulfill its obligations under this Agreement due to any of the causes      specified in Paragraph 26.1 above for a period of one (1)      year. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 27.1 | The      provisions of this Agreement are severable, and in the event that any      provision of this Agreement is determined to be invalid or unenforceable      under any controlling body of law, such invalidity or enforceability will      not in any way affect the validity or enforceability of the remaining      provisions hereof. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.1 | THIS      AGREEMENT WILL BE CONSTRUED, INTERPRETED, AND APPLIED IN ACCORDANCE WITH      THE LAWS OF THE STATE OF CALIFORNIA, excluding any choice of law rules      that would direct the application of the laws of another jurisdiction,      except that the scope and validity of any patent or patent application      under Patent Rights will be determined by the applicable law of the      country of such patent or patent application.  Any legal action      brought by the Parties relating to this Agreement will be conducted in San      Francisco, California. The prevailing Party in any legal action under this      Agreement will be entitled to recover its reasonable attorneys’ fees in      addition to its costs and necessary  disbursements. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 29.1 | Neither      Party will use this Agreement as a basis to invoke the CREATE Act, 35      U.S.C. 103 (c) (2), without the written consent of the other      Party. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 29.2 | This      Agreement incorporates the entire agreement between the Parties with      respect to the subject matter hereof and supersedes all previous      communications, representations or understandings, whether oral or      written, between the Parties relating to the subject matter      hereof.  The Confidentiality Agreement and Letter Agreement      specified in the Recitals above of this Agreement, effective February 25,      2009, and March 10, 2009, respectively, are hereby    superseded. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 29.3 | This      Agreement may be altered or modified only by written amendment duly      executed by the Parties. |
|------|-------------------------------------------------------------------------------------------------------------|

|  OCTUS ENERGY,    INC.                                                                                              |                             | THE      REGENTS OF THE UNIVERSITYOF      CALIFORNIA    |                                                                     |
|--------------------------------------------------------------------------------------------------------------------------|----------------------------------|-------------------------------------------------------------------|--------------------------------------------------------------------------|
| By:                                                                                                                      | /s/      Christian J. Soderquist |                                                              |  By                                                       | /s/      David      R. McGee |   |
| Printed      Name:  Christian J. Soderquist   Title:  President      & CEO   |                             |                                                              | David      R. McGeeExecutive      DirectorUC      Davis InnovationAccess |   |
| Date:  August      27, 2009                                                                                    |                             |  Date                                                        |                                                                     |   |

----

|   | UC      CaseNo.:  2008-399 |
|--------|--------------------------------------|

----

| RECITALS |                                                   | 1  |
|----------|--------------------------------------------------------|----|
| 1.       | DEFINITIONS                                            | 2  |
| 2.       | GRANT                                                  | 4  |
| 3.       | SUBLICENSES                                            | 5  |
| 4.       | LICENSE      ISSUE FEE/MAINTENANCE FEES                | 6  |
| 5.       | ROYALTIES                                              | 7  |
| 6.       | DILIGENCE                                              | 9  |
| 7.       | PROGRESS      AND ROYALTY REPORTS                      | 10 |
| 8.       | BOOKS      AND RECORDS                                 | 12 |
| 9.       | LIFE      OF THE AGREEMENT                             | 12 |
| 10.      | TERMINATION      BY THE REGENTS                        | 13 |
| 11.      | TERMINATION      BY LICENSEE                           | 14 |
| 12.      | DISPOSITION      OF LICENSED PRODUCTS UPON TERMINATION | 14 |
| 13.      | PATENT      PROSECUTION AND MAINTENANCE                | 14 |
| 14.      | MARKING                                                | 15 |
| 15.      | USE      OF NAMES AND TRADEMARKS                       | 16 |
| 16.      | LIMITED      WARRANTIES                                | 16 |
| 17.      | PATENT      INFRINGEMENT                               | 17 |
| 18.      | INDEMNIFICATION                                        | 18 |
| 19.      | COMPLIANCE      WITH LAWS/EXPORT CONTROLS              | 20 |
| 20.      | GOVERNMENT      APPROVAL OR REGISTRATION               | 20 |
| 21.      | ASSIGNMENT                                             | 20 |
| 22.      | NOTICES                                                | 21 |
| 23.      | PAYMENTS                                               | 21 |
| 24.      | WAIVER                                                 | 22 |
| 25.      | CONFIDENTIALITY                                        | 22 |
| 26.      | FORCE      MAJEURE                                     | 23 |
| 27.      | SEVERABILITY                                           | 24 |
| 28.      | APPLICABLE      LAW; VENUE; ATTORNEYS’ FEES      | 24 |
| 29.      | SCOPE      OF AGREEMENT                                | 24 |