**AGREEMENT**

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| (a) | Patriot                will pay Fish eleven and one half percent of the Proceeds until Fish                receives $99 million; |
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| (b) | after                satisfaction of paragraph 1(a), Patriot will pay Fish ten percent                of the                Proceeds until Fish receives an additional $75 million;                and |
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| (c) | after                satisfaction of paragraphs 1(a) and 1(b), Patriot will pay Fish eight                percent of the Proceeds until Fish receives an additional                $25 million; Patriot will thereafter owe nothing more to                Fish. |
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| (d) | Patriot                will pay the Trust one half of one percent of the Proceeds until                the Trust                receives $1 million; Patriot will thereafter owe nothing more to the                Trust. |
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| (a) | Fish                will, if requested by Patriot, testify live at deposition and/or                at trial                in any proceeding involving Patriot and any one or more of the Patents,                Patriot to reimburse Fish for his reasonable                expenses; |
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| (b) | Fish                will cooperate with Patriot and will assist Patriot by, among other                things, supplying historical information about the Patents, his                conception, reduction to practice, invention, and development of                the                Patents; in particular, during the week of July 26, 2004, at a time                and place to be agreed to by Patriot and Fish, (1) with the exception                of privileged attorney-client communications on or after March 1,                1997, the date Fish retained Jenkens & Gilchrist, Fish will supply all                documents and materials in his possession, custody, or control from                whatever source or location, including Austin, Texas, about the Patents                or                issues bearing on the Patents. including conception, reduction to                practice, invention, and development of the Patents; and (2) during                that                same week, at a time and place to be agreed to by Patriot and Fish,                Fish                will make himself available for at least, one full day to meet with                counsel for Patriot to discuss the Patents and any relevant documents;                satisfaction of subparts (1) and (2) will constitute full compliance                with                this provision; |
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| (c) | Fish                will cooperate with Patriot and will reasonably assist Patriot in                determining, documenting, and correcting inventorship of the Patents,                as                necessary and appropriate and at Patriot’s expense, including                conceptualization and/or reduction to practice of the devices and                methods                covered by the Patents in accordance with the Patent laws of the                United                States; |
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| (d) | Fish                waives the attorney-client privilege for any documents, materials,                and                communications relevant to the inventorship and/or prosecution history                of                the Patents; provided, however, that this waiver does not extend                to any                attorney-client communications between Fish and Jenkens &                Gilchrist; |
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| (e) | Fish                will -not make any new or additional demands upon Patriot about the                Patents or any proceeds from Patriot’s litigation and licensing                proceeds; |
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| (f) | the                Trust and Fish extinguish and surrender any right to license the                Patents                they may have possessed, or do possess, or they might possess in                the                future; and |
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| (g) | Fish                will not assert against Patriot any claims which were previously                litigated, were raised on appeal, or could have been raised in his                action                against Patriot, Nanotronics Corporation, Helmut Falk, and the Helmut                Falk                Trust. |
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|                                                                                                        |   |   |   |
|-------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| /s/ Jeffrey              Wallin                                                                        |   |   |   |
| Jeffrey              Wallin                                                                                 |   |   |        |
| Chief              Executive              Officer Patriot              Scientific CorporationDated: 7/27/04 |   |   |   |

|                                                       |   |   |   |
|------------------------------------------------------------|--------|--------|--------|
| /s/ Russel                H.                Fish, III |   |   |   |
| Russel                H. Fish, III                         |   |   |        |
| Dated:                7/27/04                              |   |   |   |

|                                                                                                                  |   |   |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| /s/ J.                Pat                Heptig                                                                  |   |   |   |
| J.                Pat Heptig, Esq.                                                                                    |   |   |        |
| Jenkens                  & GilchristAttorneys                  for                  Russell H. FishDated: 7/29/04 |   |   |   |

|                                                                         |   |   |   |
|------------------------------------------------------------------------------|--------|--------|--------|
| /s/ Janet              L.              Fish                             |   |   |   |
| Janet              L. Fish                                                   |   |   |        |
| Trustee                of The Fish Family TrustDated:                7/28/04 |   |   |   |

|                                                                           |   |   |   |
|--------------------------------------------------------------------------------|--------|--------|--------|
| /s/ Martin                Turner                                          |   |   |   |
| Martin                Turner, Esq.                                             |   |   |        |
| Attorney                for The                Fish Family TrustDated: 7/28/04 |   |   |   |

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