Document:

Unassociated Document

    

    AMENDMENT dated June 26,
2009

    To
the Engagement Letter dated April 1, 2009 by and between Remark Enterprises,
Inc. and New Castle Financial Services LLC,

    

    And
the Inducement Agreement dated 4/3/09

    executed
by OneUp Innovations, Inc.

    

    WHEREAS, the parties have agreed to
lower the minimum raise amount required to close from $2,500,000 to
$2,000,000;

    

    WHEREAS,
the parties desire to reduce New Castle’s compensation in connection
therewith;

    

    WHEREAS,
the parties contemplate closing on $2,000,000 on June 26, 2009;

    

    IT IS HEREBY
AGREED AS FOLLOWS:

    

    
      	
            	
              1)

            	
              Paragraph
      3c shall be amended to reflect that New Castle or its designees shall
      receive 2,732,980 common shares, representing 4.5% of the number of the
      surviving company’s common stock existing immediately following the
      consummation of the closing.

            

    

    

    
      	
            	
              2)

            	
              Paragraph
      3d shall be amended to reduce New Castle’s warrant coverage from 3% to
      2.4%.

            

    

    

    IN WITNESS WHEREOF, the
parties have executed this Amendment to the Engagement Letter and Inducement
Agreement effective as of the date written below.

     

     

    
      	
              New
      Castle Financial Services LLC

            	
              Remark
      Enterprises, Inc.

            
	 
      	 
      
	 
      	 
      
	
              /s/ Anthony
      Lodati

            	
              /s/ Lawrence
      Rothberg

            
	
              Anthony
      Lodati, President

            	
              Lawrence
      Rothberg, President

            

    

    

    OneUp
Innovations, Inc.

    

    /s/ Louis S.
Friedman

    Louis
Friedman, CEOGreen
D Plus Nano Cavitation Reactor Skid System

     

    
      
        

      

    

    

    CONFIDENTIAL

    

    MARKETING
& TECHNOLOGY

    LICENSE
AGREEMENT

    

    Between

     

    CAVITATION
TECHNOLOGIES, INC.

     

    and

    

    n.v.
DESMET BALLESTRA GROUP s.a.,

    

    January
15, 2010

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    TABLE
OF CONTENTS

    
      
        

        
          
            
              
                
                  	
                          Preamble

                        	 	
                          1

                        
	 
      	 	 
      
	
                          Article
      I  Definitions

                        	 	
                          1

                        
	
                          1.01  Defined
      Terms.

                        	 	
                          1

                        
	 
      	 	 
      
	
                          Article
      II  Licensor Grant to Licensee

                        	 	
                          1

                        
	
                          2.01  Scope
      of Grant:

                        	 	
                          1

                        
	
                          2.02  Limitations;
      Prohibitions.

                        	 	
                          2

                        
	 
      	 	 
      
	
                          Article
      III  Orders and User Licenses; Testing and
      Maintenance

                        	 	
                          2

                        
	
                          3.01  Reactor
      Skid Orders; Site User Licenses

                        	 	
                          2

                        
	
                          3.02  Delivery
      of Reactor Skid(s)

                        	 	
                          3

                        
	
                          3.03  Startup
      and Testing

                        	 	
                          3

                        
	
                          3.04  Quality
      Control; Manuals

                        	 	
                          3

                        
	
                          3.05  Maintenance
      of Units/Equipment

                        	 	
                          3

                        
	 
      	 	 
      
	
                          Article
      IV  Technical Assistance and Support

                        	 	
                          3

                        
	
                          4.01  Scope
      of Services

                        	 	
                          3

                        
	
                          4.02  Training
      Expenses

                        	 	
                          3

                        
	 
      	 	 
      
	
                          Article
      V  Inventions or Improvements

                        	 	
                          4

                        
	
                          5.01  Licensor
      Inventions or Improvements

                        	 	
                          4

                        
	
                          5.02  Licensee
      Inventions or Improvements

                        	 	
                          4

                        
	
                          5.03  Ownership;
      Grant of License

                        	 	
                          4

                        
	 
      	 	 
      
	
                          Article
      VI  Ownership of Property; Patent Filings

                        	 	
                          5

                        
	
                          6.01  Ownership
      of Property

                        	 	
                          5

                        
	
                          6.02  Additional
      Patent Filings

                        	 	
                          5

                        
	 
      	 	 
      
	
                          Article
      VII  Lease Payments and Other Payments

                        	 	
                          5

                        
	
                          7.01  Lease
      Payments

                        	 	
                           5

                        
	
                          7.02  Pilot
      Test Units; Costs-

                        	 	
                          5

                        
	
                          7.03  Payment
      Procedure

                        	 	
                          5

                        
	 
      	 	 
      
	
                          Article
      VIII  Assignments and Transfers

                        	 	
                          5

                        
	
                          8.01  Non-Transferability

                        	 	
                          5

                        
	
                          8.02  Transfer
      to New Site User

                        	 	
                          5

                        
	 
      	 	 
      
	
                          Article
      IX  Duration and Termination

                        	 	
                          6

                        
	 
      	 	 
      
	
                          9.01  Term
      and Duration

                        	 	
                          6

                        
	
                          9.02  Termination
      for Material Default

                        	 	
                          6

                        
	
                          9.03  Effect
      of Expiration/Termination

                        	 	
                          6

                        
	 
      	 	 
      
	
                          Article
      X  Confidentiality and Non-Disclosure

                        	 	
                          6

                        
	
                          10.01  Confidentiality
      and Non-Disclosure

                        	 	
                          6

                        
	 
      	 	 
      
	
                          Article
      XI  Use of Names, Marks and Logos

                        	 	
                          7

                        
	
                          11.01  Licensor’s
      Name, Marks and Logos

                        	 	
                          7

                        
	
                          11.02  Licensee’s
      Name, Marks and Logos

                        	 	
                          7

                        
	
                          11.03  Licensor
      Branding Requirements

                        	 	
                          7

                        

                

              

            

          

        

         

        
          
            
            

          

          
            -ii-

            
              

            

          

          
            
            

          

        

         

        
          
            
              	
                      Article
      XII  Notices

                    	
                      8

                    
	
                      12.01  Notices

                    	
                      8

                    
	 
      	 
      
	
                      Article
      XIII  Content of Agreement; Schedules

                    	
                      8

                    
	
                      13.01  Integrated
      Documents

                    	
                      8

                    
	 
      	 
      
	
                      Schedule
      A  Definitions

                    	
                      A-1

                    
	
                      Article
      1.  Defined Terms

                    	
                      A-1

                    
	 
      	 
      
	
                      Schedule
      B  General Terms and Conditions

                    	
                      B-1

                    
	
                      Article
      1.  Warranties; Performance Guarantee; Limitations on
      Liability.

                    	
                      B-1

                    
	
                      1.01  Licensor’s
      Warranties; Limitations

                    	
                      B-1

                    
	
                      1.02  Licensee’s
      Warranties; Remedies

                    	
                      B-1

                    
	
                      1.03  Performance
      Guarantee

                    	
                      B-1

                    
	
                      1.04  Limitation
      on Damages

                    	
                      B-1

                    
	 
      	 
      
	
                      Article
      2.  Indemnification

                    	
                      B-2

                    
	
                      2.01  Licensor’s
      Indemnity

                    	
                      B-2

                    
	
                      2.02  Licensor’s
      Indemnity; Limitations

                    	
                      B-3

                    
	
                      2.03  Licensee’s
      Indemnity

                    	
                      B-3

                    
	
                      2.04  Licensee’s
      Indemnity; No Insurance Limitation

                    	
                      B-3

                    
	
                      2.05  Notice
      of Claims; Assistance.

                    	
                      B-3

                    
	
                      2.06  Settlement
      and Compromise

                    	
                      B-4

                    
	 
      	 
      
	
                      Article
      3.  Compliance With Law

                    	
                      B-4

                    
	
                      301  Compliance;
      Applicable Law

                    	
                      B-4

                    
	 
      	 
      
	
                      Article
      4  Governing Law and Dispute Resolution

                    	
                      B-4

                    
	
                      4.01  Governing
      Law

                    	
                      B-4

                    
	
                      4.02  Dispute
      Resolution

                    	
                      B-4

                    
	 
      	 
      
	
                      Article
      5.  Additional Provisions.

                    	
                      B-5

                    
	
                      5.01  Amendment
      and Waiver

                    	
                      B-5

                    
	
                      5.02  Invalidity

                    	
                      B-5

                    
	
                      5.03  Third
      Parties

                    	
                      B-5

                    
	
                      5.04  Relationship
      of Parties

                    	
                      B-5

                    
	
                      5.05  Required
      Currency

                    	
                      B-5

                    
	
                      5.06  Rights,
      Powers, Remedies Cumulative; Waiver; Time

                    	
                      B-5

                    
	
                      5.07  Integration

                    	
                      B-5

                    
	
                      5.08  Counterparts

                    	
                      B-5

                    
	 
      	 
      
	
                      Schedule
      C  Confirmed Order Form

                    	
                      C-1

                    
	
                      Schedule
      D  Site User License Form

                    	
                      D-1

                    
	
                      Schedule
      E  Licensor’s Technical Support - Rates

                    	
                      E-1

                    
	
                      Schedule
      F  Lease Fees and Payment

                    	
                      F-1

                    
	
                      Schedule
      G  Performance Guarantee

                    	
                      G-1

                    
	
                      Schedule
      H  Patent Rights

                    	
                      H-1

                    

            

          

        

      

    

     

    
      
        
        

      

      
        -iii-

        
          

        

      

      
        
        

      

    

     

    MARKETING
& TECHNOLOGY

     LICENSE
AGREEMENT

    

    This
TECHNOLOGY LICENSE AGREEMENT (“Agreement”) is
entered into and made effective as of this 15th day of
January 2010 (“Effective Date”), by
and between CAVITATION TECHNOLOGIES, INC., a Nevada corporation (“Licensor”), and n.v.
DESMET BALLESTRA GROUP s.a., a Belgian corporation (“Licensee”) (the
parties herein sometimes referred to individually a “Party” or
collectively as “Parties”).

     

    PREAMBLE

    

    A.  Licensor
has developed and owns the Green D Plus Nano
Cavitation Reactor Skid System (the “System”), a proprietary
nano-cavitation system comprised of equipment manufactured to Licensor’s
specifications and related proprietary technology and software used in the
process of degumming crude vegetable oils and other oils related processes;
and

    

    B.  Licensee,
together with its Affiliates, is a professional engineering firm engaged in the
design and construction of vegetable oil extraction, production and refining
facilities (“Vegetable Oil Processing Facilities”) for third parties and has
requested a license for the limited purpose of (1) marketing Green D Plus Nano
Cavitation Reactor Skid Units (each a “Reactor Skid Unit” or
“Unit”)
anywhere in the World, except within the territory of Japan (the “Licensed Territory”);
and (2) incorporating the System into Licensee’s process design package for
Vegetable Oil Processing Facilities; and (3) integrating Reactor Skid Units
supplied by Licensor into Vegetable Oil Processing Facilities designed and/or
supplied, and/or constructed by Licensee.

    

    NOW,
THEREFORE, in consideration of the mutual covenants and agreements set forth in
this Agreement, the Parties agree as follows:

     

    ARTICLE
I

    DEFINITIONS

    

    1.01
Defined
Terms.  Capitalized terms used in this Agreement, including its
preamble and recitals, shall, except where the context otherwise requires, have
the meanings and definitions ascribed to them (with such meanings and
definitions applicable to the singular and plural forms thereof) in Schedule A
hereto.

     

    ARTICLE
II

    LICENSOR
GRANT TO LICENSEE

    

    2.01
Scope of
Grant.  (a)Subject to the terms and conditions of this
Agreement, Licensor grants to Licensee a limited, exclusive, non-transferable
license and right to market and use the Licensed Technology, including related
Improvements and Inventions, to :

    

    (1)
Market Reactor Skid Units that are (1) operated by Site Users for the sole
purpose of producing and/or processing Vegetable Oils, including without
limitation aiding in or facilitating the production of degummed vegetable oils,
either as standalone units or in connection with the operation of Vegetable Oil
Processing Facilities, or in connection with other processes involving or
relating to Vegetable Oils, and (2) located within the Licensed
Territory;

    

    (2)
Include or incorporate the System into Licensee’s process design packages for
Vegetable Oil Processing Facilities for the purpose of integrating Reactor Skid
Units into or part of Vegetable Oil Processing Facilities or any process or
processing equipment comprising a part thereof; will be installed and operated
within the Licensed Territory for the sole purpose of making or aiding in the
production of oils (triglycerides), including without limitation the production
of degummed vegetable oils, either as stand alone Units or in connection with or
as part of any vegetable oil refining facility or other oils
processes.

     

    CTI Initials_________  DB Initials
________     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    (3)
Assist Site Users in the inspection, installation, testing, startup, operation
and maintenance of each Reactor Skid Unit under the terms of this Agreement and
each Site User License.

    

    (b)
Except as provided under article V of  this Agreement, the marketing
rights and license granted to Licensee under this Agreement shall not include
any design, fabrication or manufacturing rights in or to the System, or any part
thereof, or in or to any Reactor Skid Unit.  Furthermore, the
marketing rights and license granted to Licensee under this Agreement shall not
restrict Licensor from assisting Licensee in its marketing efforts to maximize
the number of Site User Licenses issued and Systems Leased for benefit of both
parties.  In no event shall Licensor market directly to any competitor
of Licensee.

    

    2.02 Limitations;
Prohibitions.  (a) Except as expressly authorized or provided
in this Agreement, Licensee shall not (1) deploy or use any Reactor Skid Unit or
the Licensed Technology in any manner that is inconsistent with the grant of
rights specified in Section 2.01 or any other provision of this Agreement, (2)
transfer, distribute, disclose or offer to make available the Licensed
Technology to any Person, whether by assignment, sublicense or otherwise, or
allow any Person access to the Licensed Technology, (3) copy, adapt, reverse
engineer, decompile, disassemble or modify, in whole or in part, any Reactor
Skid Unit or the Licensed Technology (including proprietary software), (4) use
any Skid Reactor Unit (or any component or part thereof) or the Licensed
Technology to create derivative works, or (5) use, copy or reproduce any
Confidential Information for any purpose other than as authorized in this
Agreement or the Secrecy & Non-Disclosure Agreement.

    

    (b) For
applications other than degumming of crude Vegetable Oils and other than any
processes involving or relating to the production, processing or treatment of
Vegetable Oils, Licensor hereby retains the right to (1) design, fabricate,
construct, operate, sell and market Reactor Skid Units within the Licensed
Territory, and (2) grant to any Person any license or right to practice the
Licensed Technology for any purpose, including without limitation to design,
fabricate, construct, operate, sell, lease or market Reactor Skid Units in the
Licensed Territory

    

    2.03 Extension to
Affiliates

    

    Licensor agrees to grant and does
hereby grant to the Licensee the right to extend to Licensee’s Affiliates all
the rights of Licensee under this Agreement, provided that Licensee promptly
notifies Licensor in writing of any such extension, and the Licensee’s Affiliate
concerned agrees to observe and be bound by all of the obligations of Licensee
under this Agreement.

    

    ARTICLE
III

    ORDERS
AND USER LICENSES; TESTING & MAINTENANCE

    

    3.01  Reactor Orders; Site User
Licenses.  (a) Subject to the conditions of this Agreement,
Licensee shall be entitled, from time to time, to order from Licensor one or
more Reactor Skid Units that will be installed at or incorporated or otherwise
integrated into Vegetable Oil Processing Facilities designed, and/or supplied
and/or erected, and sold by Licensee.  Each such order shall be in the
form of Exhibit
C hereto (each a “Confirmed Order”) and
include the information requested or called for therein.  Licensee
shall submit a separate Confirmed Order for each Reactor Skid Unit.

    

    (b) Each Confirmed Order shall specify
the Site User for the Reactor Skid Unit and shall request that Licensor issue a
Site User License to the proposed Site User(s) for the Unit in accordance with
and within the scope of the rights granted by this
Agreement.  Licensor shall not unreasonably withhold any such
requested authorization.  Each Site User License issued to Site Users
shall be substantially in the form of Schedule D
hereto.

     

    CTI Initials_________  DB Initials
________     

     

    
      
        
        

      

      
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    3.02  Shipment of Reactor Skid
Unit(s).  Licensor will ship to Site User, as specified in the
Confirmed Order, the Reactor Skid Unit(s) requested in the Confirmed Order in
approximately one hundred twenty (120) days after Licensor receives (1) a Site
User License that has been issued by Licensor and accepted by the Site User for
the Unit, (2) an equipment lease that will be developed and executed as
contemplated in Schedule F hereto, and (3) payment of the first or initial
amount of revenue from lease payments made by the Site User as provided in
Article VII and as will be specified in the equipment lease executed by such
Site User.

    

    3.03  Startup and
Testing.  Upon delivery and installation of each Reactor Skid
Unit at the Site Location and prior to any testing or start-up of such Unit,
Licensee and Site User shall examine the Unit to determine its physical
condition and operational status, and its conformity to the Licensor’s Process
Design Package, and shall conduct such testing of the Unit as shall be required
to determine that it is operational and functional.  Licensee shall
provide Licensee with at least seven (7) days advance notice of any scheduled
inspection and testing in order to give Licensor an opportunity to travel to the
Site Location and participate in such inspection and testing.

    

    3.04  Quality Control;
Manuals.  (a) Licensee and Site User shall follow and
diligently adhere to all procedures, instructions, specifications and guidelines
provided by Licensor with respect to installation and operation of each Reactor
Skid Unit and in any technical or user manuals developed or prepared by Licensor
and Licensee on a joint and cooperative basis.  Licensee shall provide
and deliver to each Site User a current technical or user manual upon handover
of each Unit to the Site User(s).

    

    (b) Upon Licensor’s request from time
to time, Licensee shall deliver to Licensor suggested or proposed revisions to
Licensor’s technical or user manual developed for the Reactor Skid
Units.   Any proposed changed, modifications or revisions to any
technical or user manual for the Units that has been developed or prepared by
Licensee shall require Licensor’s consent before being implemented or
adopted.

    

    3.05  Maintenance of
Units/Equipment.  (a) Licensee shall maintain, and shall
require each Site User to maintain, at its expense, each Reactor Skid Unit in
good operating order, repair, condition and appearance, and shall protect each
Unit from deterioration, other than normal and expected wear and tear, and
damage, loss or destruction.  Each Reactor Skid Unit (including
component parts to be incorporated into the Unit) shall be maintained and stored
in secure facilities until the Unit is delivered and installed at the Site
Location designated in the Site User License.

    

    (b) Licensee or Site User shall perform
all required calibrations, adjustments and preventative maintenance on each
Reactor Skid Unit in accordance with the instructions and guidelines set forth
in the technical or user manuals provided by Licensee as required under this
Agreement and delivered to Site Users.

    ARTICLE
IV

    TECHNICAL
ASSISTANCE AND SUPPORT

    

    4.01
Scope of
Services.  Licensor shall provide to Licensee, at the rates and
compensation specified in Exhibit E hereto, any
consultation, technical assistance and support services that Licensee may
reasonably request from time to time, whether by telephone, in written
communications, or in person, in (a) installing, operating or troubleshooting
for any Reactor Skid Unit, (b) testing, startup or maintenance of any Unit or
any problems associated therewith, and (c) providing training to Licensee and/or
any Site User (or any of their respective employees, contractors and
representatives).

    

    4.02
Training
Expenses.  All expenses of Licensee’s (and any Site User’s)
employees or representatives in attending any training session conducted by
Licensor shall be the responsibility of Licensee or Site User, as the case may
be.  Expenses of Licensor’s employees or representatives engaged in
any onsite training or any training sessions conducted away from Licensor’s
offices in Chatsworth, California, including airfare, meals and lodging, shall,
be paid to Licensor by Licensee in advance or promptly reimbursed to Licensor
after such expenses have been incurred..

     

    CTI Initials_________  DB Initials
________     

     

    
      
        
        

      

      
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    ARTICLE
V

    INVENTIONS
OR IMPROVEMENTS

    

    5.01
Licensor Inventions or
Improvements.  Licensor agrees to promptly disclose to
Licensee, all Inventions or Improvements invented, discovered or developed by
Licensor and in a stage of development potentially suitable for evaluation,
testing or commercial use.

    

    5.02  Licensee Inventions or
Improvements.  (a) Licensee agrees to disclose promptly to
Licensor, all Inventions or Improvements invented, discovered or developed by
Licensee, whether or not any such Invention or Improvement is in a stage of
development potentially suitable for evaluation, testing or commercial
use.  Licensee shall permit Licensor and/or its representatives to
inspect, at mutually convenient times, the operating procedures, process
conditions, material balances, energy consumption, reactant performance,
analyses of product and other internal streams, feedstocks, catalysts and
chemicals, chemical compounds or chemical reactions that are or may be
applicable to any such Invention or Improvement.

    

    (b)
Should Licensee, during the term of this Agreement, invent, make, discover or
develop any patentable Invention or Improvement to the Licensed Technology,
Licensee will notify and allow Licensor a period of ninety (90) days to file
patent applications with respect thereto in its own name and at its own expense,
and take such other steps required or necessary to protect its rights in such
Invention or Improvement. In the event that Licensor fails or otherwise elects
not to file patent applications within the  90 days time period,
Licensee shall be entitled, at its option, to proceed to prepare and file any
such patent application, provided that such application lists or identifies both
Licensor and Licensee as joint applicants (as well as assignees of any discovery
or invention forming the basis of such application) and that any patent issued
as a result is issued to Licensee  and Licensor jointly as
co-owners.  The parties will share the costs of any such joint patent
applications on an equal basis.

    

    5.03  Ownership; Grant of
License.  (a) Except in case Licensee and Licensor would be
co-owner of an Invention of Improvement as per the terms of article 5.02 (b)
hereabove, Licensor shall, at all times, have exclusive and unlimited ownership
of all Inventions or Improvements; provided, however, all such
Inventions or Improvements shall, to the extent that they may be used or
practiced in the field of Vegetable Oil Refining Science, be included within the
scope of the rights granted to Licensee under this Agreement.  Upon
Licensor’s written request, Licensee shall assign and transfer to Licensor all
of Licensee’s ownership rights in any Invention or Improvement, including
without limitation any patent, patent application, copyright, trade secret or
other intellectual property right contained therein or arising with respect
thereto.

    

    (b) Licensee shall, upon Licensor’s
request, take such actions and execute all documents, and cause its employees
and contractors to take all actions and execute all documents, as are necessary
or appropriate to implement the provisions of this Article V and shall assist
Licensor in the preparing, filing, prosecuting and assigning patents, patent
applications, copyrights and other intellectual property rights and in otherwise
securing their protection.

    
CTI
Initials_________  DB Initials ________     

     

    
      
        
        

      

      
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      ARTICLE
VI

      OWNERSHIP
OF PROPERTY; PATENT FILINGS

      

      6.01  Ownership of
Property.  (a) All patents, patent applications, copyrights,
trade secrets and other intellectual property rights in or relating to the
System, any Reactor Skid Unit or the Licensed Technology, in all languages,
formats and media throughout the world, are and shall remain the sole and
exclusive property of Licensor, including without limitation, (1) the Licensor
Primary Patents, Licensor Patent Rights, and Licensor Technical Information, and
(2) all Inventions or Improvements except as provided under 5.02 (b) hereabove ,
and (3) each Process Design Package and any detailed engineering design and any
document contained therein or included as a part thereof, and any drawings,
schematics, blueprints, maps and other documentation, whether in print, digital
or other form, showing the design, configuration and/or engineering of any
Reactor Skid Unit (including the Pilot Plant) or any Nano-Cavitation Reactor, in
each case prepared or developed individually by Licensor or jointly by Licensor
and  Licensee, or any of their respective owners, employees, partners,
representatives or contractors; however, it is expressly acknowledged that any
document and any engineering contained therein, prepared and/or developed by
Licensee to integrate the System, any Reactor Skid Unit or the Licensed
Technology into a specific Site User’s Vegetable Oil process,  is the
sole property of Licensee.  and (4) Licensor’s software (including
source code) included within the Licensed Technology or any Unit, together with
the performance and operating data generated by any Unit (including the Pilot
Plant) or any Nano-Cavitation Reactor.

      

      (b)  Nothing in this
Agreement shall be construed or interpreted as assigning or transferring any
portion or aspect of Licensor’s ownership rights in any of the properties
specified or described herein.

      

      6.02  Additional Patent
Filings.  (a) In the event that Licensee receives orders for
Reactor Skid Units that will be delivered, installed and operated in countries
other than the United States, Licensee shall promptly consult with Licensor to
determine whether Licensor has filed patent applications or obtained patents
with respect to the Licensed Technology that will provide adequate protection to
Licensor in such country and jurisdiction.  Licensee shall, at its
sole cost, cooperate with and assist Licensor in preparing, filing and
prosecuting any patents or patent applications that Licensor, in its sole
discretion, determines must be filed and prosecuted in foreign jurisdictions in
order to protect its intellectual property.  Licensee shall pay or
contribute fifty percent (50%) of the costs incurred or to be incurred by
Licensor in preparing, filing and prosecuting any such patents or patent
applications where needed and with any governmental authority having
jurisdiction therein, including without limitation any associated filing fees,
costs and attorneys’ fees.

      

      (b) Upon Licensor’s request from time
to time, Licensee shall either advance funds to Licensor, or reimburse Licensor
for Licensee’s share of fees and costs incurred in filing, prosecuting and
maintaining patents and patent applications in foreign jurisdictions as provided
herein.

      

      ARTICLE
VII

      LICENSE
FEES AND OTHER PAYMENTS

      

      INTENTIONALLY
LEFT BLANK

      

      ARTICLE
VIII

      ASSIGNMENTS
AND TRANSFERS

      

      8.01  Non-Transferability.  During
the term of this Agreement, neither Party shall be entitled to assign, convey,
sell or otherwise transfer this Agreement or any interest therein to any Person
without the prior written consent of the other Party.  Any attempted
conveyance, transfer, sale, encumbrance or assignment of this Agreement, either
in whole or in part, by either Party shall be null and void.

      

      8.02  Transfer to New Site
User.  Site User may not transfer any Reactor Skid Unit to any
other Person without Licensor’s prior written approval.  If a transfer
is approved in writing by Licensor, Licensee shall, upon receiving Licensor’s
authorization to do so, issue and execute a Site User License with the new Site
User.  Licensee shall promptly notify Licensor of any such transfer
request in advance and shall deliver to Licensor a true and correct copy of each
new Site User License executed by Licensee and any such Site User.

      
         

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              5

              
                

              

            

            
               

            

          

        

      

      

      ARTICLE
IX

      DURATION
AND TERMINATION

      

      9.01 Term and
Duration.  (a) Subject to the provisions of Section 9.02, this
Agreement shall become effective as of the Effective Date and shall continue in
full force and effect for an initial period of three (3) years from and after
the Effective Date (the “Primary
Term”).  At the end of the Primary Term, this Agreement shall
automatically be extended for additional periods of three (3) years each (each a
“Renewal Term”)
provided Licensee fulfills the Minimum Annual Units for each year of the term as
specified in 9.01 (b).

      

      (b) Intentionally Left
Blank

      

      (c)  Notwithstanding anything
to the contrary herein, after the Primary Term and during any Renewal Term,
either Party shall be entitled to terminate this Agreement upon at least six (6)
months prior written notice to the other Party.

      

      9.02  Termination for Material
Default.  (a) Upon Licensor’s notice to Licensee of any
material default under this Agreement, the Parties shall, within thirty (30)
days, attempt to resolve any differences between them and to cure any such
default that exists or may exist under this Agreement.  If a material
default hereunder continues for a period of ninety (90) days following
Licensor’s notice of such default to Licensee without being cured or corrected,
Licensor shall have the right to terminate this Agreement upon notice to
Licensee.

      

      (b)
Termination of this Agreement hereunder shall not preclude any Party from
pursuing or enforcing any claim it may have for damages or otherwise on account
of any default by any Party.

      

      9.03 Effect of
Expiration/Termination.  The expiration or termination of this
Agreement under this Article IX or otherwise shall not (1) relieve Licensee of
its obligations to account for and pay all amounts due Licensor under this
Agreement, (2) affect any rights granted to Site Users that are in full
compliance with the terms of Site User Licenses and any corresponding equipment
leases that remain in effect as of the date of any such
termination.

      

      ARTICLE
X

        CONFIDENTIALITY
AND NON-DISCLOSURE

      

      10.01
Confidentiality and
Non-Disclosure.  Each of the Parties agrees that any
Confidential Information developed or acquired by either Party or disclosed or
made available to a Party (or its Affiliates) by the other Party at any time
prior to or during the term of this Agreement, shall be kept strictly
confidential and protected in accordance with the Secrecy & Non-Disclosure
Agreement.

       

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      ARTICLE
XI

      USE
OF NAMES, MARKS AND LOGOS

      

      11.01  Licensor’s Name, Marks and
Logos.  (a) During the term of this Agreement, subject to
Section 11.01(b), Licensee shall be entitled to use Licensor’s name, marks and
logos in materials prepared or used by Licensee to advertise, promote or market
the System or any Reactor Skid Unit under and within the scope of the rights and
license granted to Licensee under this Agreement.  Licensee shall not
publish, use or refer to Licensor’s name, marks or logos in any manner that
would diminish, dilute or compromise its/their commercial value.

      

      (b) All advertising, promotional and
marketing materials (printed or in electronic format) prepared or used by
Licensee that either use Licensor’s name, marks or logos to describe the System
or any Reactor Skid Unit must be approved in writing by Licensor before
its/their use or distribution by Licensee.  Licensee shall not issue
any press release or other public announcement or statement with respect to the
existence or terms of this Agreement or any Site User License, or as to any
Reactor Skid Unit, without Licensor’s prior approval.

      

      11.02  Licensee’s Name, Marks and
Logos.  (a) During the term of this Agreement, subject to
Section 11.02(b), Licensor shall be entitled to use Licensee’s name, marks and
logos in materials prepared or used by Licensor to advertise, promote or market
the System, Reactor Skid Units.  Licensor shall not publish, use or
refer to Licensee’s name, marks or logos in any manner that would diminish,
dilute or compromise its/their commercial value.

      

      (b) All advertising, promotional and
marketing materials (printed or in electronic format) prepared or used by
Licensor that either use Licensee’s name, marks or logos to describe the System
or any Reactor Skid Unit must be approved in writing by Licensee before
its/their use or distribution by Licensor.  Licensor shall not issue
any press release or other public announcement or statement with respect to the
existence or terms of this Agreement or any Site User License without Licensee’s
prior approval.

      11.03  Licensor Branding
Requirements.  (a) Licensee may request to have displayed on
each Reactor Skid Unit by Licensor under the terms of this Agreement, either
directly on the Unit or in sign or other display, which is permanently affixed
thereto, the following:

      

      CTI
Reactor Skid Unit

      

      Proprietary
Design/Technology

      Licensed
to

      n.v.
DESMET BALLESTRA GROUP s.a.

      by

      Cavitation
Technologies, Inc.  (w/Logo)

      Chatsworth,
CA

      

      (b)  Within sixty (60) days
after the Effective Date, the Parties will develop an appropriate platform,
format, artwork and graphics to satisfy the Licensor branding requirement
specified above, each of which shall require Licensor’s final
approval.

      

      (c) Any proposed use, presentation or
publication by the Parties, or either of them, of a “co-branded” format,
platform or medium for any Reactor Skid Unit, or in any advertising, promotional
or scientific materials or works, shall maintain adequate separation of the
names, marks and logos of the Parties in order to protect the distinctness and
integrity of the marks under Applicable Law and shall require the prior written
approval and consent of each Party.

       

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      ARTICLE
XII

      NOTICES

      

      12.01  Notices.  Any
notice, payment, request, demand or other communication hereunder shall be in
writing and shall be deemed to have been duly given when  (i) delivered
personally to the Party to be notified; or (ii) upon delivery or transmittal if
sent by facsimile transmission with confirmation that the facsimile message was
received by the facsimile machine of the Party to be notified, (iii) upon
delivery if sent by a overnight carrier; (iv) three business days after sent by
ordinary mail, postage paid, to the party to be notified,  or (v) five
business days after sent by registered or certified mail, postage paid, to the
party to be notified, at the address set forth below.  Either Party may
change its address, facsimile number or representative upon written notice to
the other Party.  A letter duplicating a facsimile transmission previously
marked as received by the facsimile machine of the other party shall not extend
the time by which the notice was given.

      

      
        
          
            
              	
                      (a)  If to
      Licensor:

                    	 
      	
                      (b)  If to
      Licensee:

                    
	 
      	 
      	 
      
	
                      Cavitation
      Technologies, Inc.

                    	 
      	
                      n.v.
      Desmet Ballestra Group s.a.

                    
	
                      10019
      Canoga Avenue

                    	 
      	
                      Minervastraat,
      1 – B-1930

                    
	
                      Chatsworth,
      California 91311 USA

                    	 
      	
                      Zaventem,
      Belgium

                    
	
                      Telephone:  (818)
      718-0905

                    	 
      	
                      Telephone:
      +32 .2. 716 .11.11

                    
	
                      Telefax:
      (818) 718-1176

                    	 
      	
                      Telefax:  +32
      2 716 11 09

                    
	
                      Attn:  Roman
      Gordon, CEO

                    	 
      	
                      Attn:  Marc
      Kellens, Group Technical
Director

                    

            

          

        

      

      

      ARTICLE
XIII

      CONTENT
OF AGREEMENT; SCHEDULES

      

      13.01  Integrated
Documents.  (a) This Agreement consists of the Preamble,
Articles and Sections contained in the text of this Signature Document, together
with the following Schedules:

      

      
        
          
            
              
                
                  	
                          Schedule
      A

                        	 
      	
                          Definitions

                        
	
                          Schedule
      B

                        	 
      	
                          General
      Terms and Conditions

                        
	
                          Schedule
      C

                        	 
      	
                          Confirmed
      Order Form

                        
	
                          Schedule
      D

                        	 
      	
                          Site
      User License Form

                        
	
                          Schedule
      E

                        	 
      	
                          Licensor’s
      Technical Assistance - Rates

                        
	
                          Schedule
      F

                        	 
      	
                          License
      Fees and Payment

                        
	
                          Schedule
      G

                        	 
      	
                          Performance
      Guarantee

                        
	
                          Schedule
      H

                        	 
      	
                          Patent
      Rights

                        

                

              

            

          

        

      

      

      (b) The Schedules listed above and
attached hereto, together with documents referred to therein, are incorporated
by reference and made a part of this Agreement for all purposes.

      

       IN WITNESS WHEREOF, the Parties
have executed this Agreement as of the date(s) set forth below.

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	
                                      Licensor

                                    	 
      	
                                      Licensee

                                    
	
                                      CAVITATION
      TECHNOLOGIES, INC.

                                    	 
      	
                                      N.V.
      DESMET BALLESTRA GROUP S.A.

                                    
	 
      	 
      	 
      	 
      	 
      
	
                                      By: 

                                    	 
      	 
      	
                                      By: 

                                    	 
      
	
                                      Name:

                                    	 
      	
                                      Name:

                                    
	
                                      Title:

                                    	 
      	
                                      Title:

                                    
	
                                      Date:

                                    	
                                        

                                    	
                                      Date:

                                    

                            

                             

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                            SCHEDULE
A

                          

                        

                      

                    

                  

                

              

            

          

        

      

      DEFINITIONS

      

      Article 1.  Defined
Terms.  Unless the context shall otherwise require, capitalized
terms contained in this Agreement (including each of the Schedules thereto)
shall have the following meanings:

      

      “AAA” means the American
Arbitration Association.

      

      “AAA Rules” means the AAA’s
Commercial Arbitration Rules, together with the AAA Optional Rules for Emergency
Measures of Protection, in each case as amended and updated from time to
time.

      

      "Affiliate" means, with
respect to either Party, a person or entity that directly, or indirectly through
one or more intermediaries, controls, is controlled by or is under common
control with that Party, with the terms “control” and “controlled” meaning for
purposes of this definition, the power to direct the management and policies of
a person or entity, directly or indirectly, whether through the ownership of
voting securities or a partnership, membership or other ownership interest, or
by contract or otherwise.

      

      “Agreement” means this
Marketing & Technology License Agreement. 

      

      “Applicable Law” means all
laws, statutes, ordinances, certifications, orders, decrees, injunctions,
permits, agreements, rules and regulations of the United States or any state
thereof, or any governing authority having jurisdiction over all or any portion
of this Agreement or performance of Licensee’s services and work under this
Agreement, or other legislative or administrative action of any governing
authority, or a final decree, judgment or order of any arbitrator, arbitration
panel or a court or the interpretation or application of this Agreement,
including (a) any and all permits, authorizations, certifications, or other
approvals or orders, (b) any codes and standards contained in or required
by Applicable Law, and (c) any Applicable Law related to safety, health or
environmental protection.

      

       “Confidential Information”
means information, data and documents (whether in print form or capable of being
digitally stored and generated), including any formula, pattern, compilation,
program, apparatus, device, drawing, schematic, method, technique, process or
data (including without limitation data generated by the operation of the Pilot
Plant), that (a) derives independent economic value, actual or potential, from
not being generally known to, and not being readily ascertainable by proper
means by, other Persons that can obtain economic value from its publication,
disclosure or use, and (b) is the subject of efforts that
are reasonable under the circumstances to maintain its secrecy.

      

      For
purposes of this Agreement, the term “Confidential Information” consists of and
includes, without limitation, the following:  (1) this Agreement and
the terms and conditions contained herein, together with any notices,
communications or correspondence required or given by the Parties thereunder;
(2) the Licensor Confidential Information, and (3) the Licensee Confidential
Information.

      

      “Dispute” has the meaning set forth
in Section 5.02 of the General Terms and Conditions in Schedule B
hereto.

      

      “Drawings" means the
drawings, diagrams, flow charts or sheets, process data sheets and other process
documents either furnished by Licensor to Licensee, or developed by Licensee and
approved by Licensor, for or in connection with the marketing, lease,
installation, testing, operation and/or maintenance of any Reactor Skid
Unit.

      

      “Effective Date” means the
date on which this Agreement shall take effect as specified in the first or
introductory paragraph of this Agreement.

       

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          A-1

          
            

          

        

        
           

        

      

      

       “Inventions or Improvements”
means any patentable or non-patentable invention, discovery, technology and
information of any type whatsoever, including without limitation processes,
methods, formulae, compositions, devices, operating techniques, reactants,
catalysts, technical information, knowledge, experience, improvements,
modifications, enhancements and Know-How that relate to the design, fabrication,
construction, maintenance or operation of any Reactor Skid Unit or in the use,
practice or commercialization of the  Licensed Technology. or in
making or aiding in the production of degummed vegetable oils that utilizes,
incorporates, derives from, or is otherwise based on the Licensed Technology, in
each case which is discovered, made, designed, developed or acquired by Licensor
or by Licensee, as the case may be, solely or with others, or used or practiced
at or in a Licensed Reactor Unit.  The term “Inventions or
Improvements” includes, without limitation, patents, patent applications,
copyrights, trade secrets and Confidential Information, and the entire scope and
content of the intellectual and tangible property included therein and produced
therefrom.

      

      “Know-How” means all factual
and proprietary knowledge, information and expertise possessed by Licensor, or
to which Licensor has rights, relating to or otherwise useful in (a) the design,
fabrication, construction, maintenance or operation of a Reactor Skid Unit, or
(b) the practice of the Licensed Technology, whether or not such knowledge,
information and expertise are included within (1) the Licensor Patent Rights and
the Licensor Technical Information, (2) any Invention or Improvement, or (3) any
patent or patent application or future patent application, copyright, trademark
or other intellectual property rights; and includes, without limitation, all
technical, chemical, manufacturing, business, financial, formulation and
scientific research data or information, whether or not capable or precise
separate description, and whether or not such information is public or
non-public.

      

      “Licensed Technology” means
and includes the Licensor Patent Rights and the Licensor Technical Information;
provided,
however,
the term “Licensed Technology” shall be limited to the rights granted to
Licensee under this Agreement and to rights granted to each Site User under the
terms of a Site User License and shall not include any of rights with respect to
the design and manufacture of any Reactor Skid Unit or any component or part
thereof.

      

      “Licensed Territory” means and
includes the following:  Worldwide, except for Japan.

      

      “Licensee Group” means
Licensee and its Affiliates, and each of their respective officers, directors,
and employees, consultants, advisors and representatives.

      

      “Licensor Confidential
Information” means (1) the Licensor Technical Information and the Reactor
Information, (2) the Process Design Package, including without limitation each
document and any and all information contained therein, together with the
Drawings, Standards and Specifications and other drawings, charts, schematics,
blueprints, diagrams, standards, specifications and other information showing or
depicting the process design of the Green D Plus Nano
Cavitation Reactor Skid System or any specific Reactor Skid Unit,
including the Pilot Plant; (3) all information, data and documents (whether in
print form or capable of being digitally stored and generated) furnished by
Licensor to Licensee under the terms of this Agreement or prior to the Effective
Date that relate in any way to the Reactor Skid Unit or the Licensed Technology;
and all information, data and documents (whether in print form or capable of
being digitally stored and generated) furnished by Licensee to Licensor, to the
exclusion of Licensee’s Confidential Information, under the terms of this
Agreement, including without limitation all Drawings, Standards and
Specifications and other drawings, charts, schematics, blueprints, diagrams,
standards, specifications and other documents relating in any way to the
engineering, design, fabrication, construction, operation and maintenance of any
Reactor Skid Unit or that contain, show or depict the Licensed Technology or any
aspect thereof.  For purposes hereof, the term “Licensor Confidential
Information” shall not include any information, data or document that is
included within the scope of Licensee’s Confidential Information.

       

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          A-2

          
            

          

        

        
           

        

      

      

      “Licensor Group” means
Licensor and its Affiliates, and each of their respective officers, directors,
employees, consultants, advisors and representatives.

      

      “Licensor Inventions or
Improvements” means the Inventions or Improvements invented, discovered,
conceived or acquired by Licensor or any of its Affiliates.

      

      “Licensor Patent Rights” means
all rights with respect to the Licensor Primary Patents and other patents and
patent applications of, issued by, or filed or prosecuted in, all relevant
countries, in all embodiments covered thereby or included therein, to the extent
that the claims include or embody features of or relating to  (a) the
design, fabrication and construction of Reactor Skid Units (or any component
thereof), (b) the Licensed Technology, including without limitation any process
or method, operating technique, apparatus and device relating thereto, which is
or may be useful in the practice thereof, and (c) a process for the design,
fabrication and construction of certain equipment, reactors, piping and
instrument that utilizes a hydrodynamic flow-through nano cavitation process for
aiding in the production of degummed oils; and (d) any other process, method,
operating technique, apparatus or device for manufacturing, making or aiding in
the production of degummed vegetable oils and other products, fuels, chemicals,
formulations, compounds and/or mixtures; in each case which are acquired by
Licensor or are based on or derived from inventions or discoveries conceived by
Licensor in the field of Vegetable Oil Refining Science prior to termination of
this Agreement, to the extent that, and subject to the terms and conditions
under which, Licensor has the right to grant licenses, immunities or licensing
rights, including any obligation by Licensor to account to and make payment to
others. A list of the existing Licensed Patent Rights is attached to this
Agreement as Schedule H.

      

      “Licensor Primary Patents”
means the patents and patent applications filed by Licensor with, or issued to
Licensor by, the U.S. Patents and Trademarks Office, together with any
corresponding or equivalent patents or patent applications issued to or filed by
Licensor in any foreign countries or jurisdiction, which assert claims or
reflect or embody features of or relating to (a) the design, fabrication and
construction of Reactor Skid Units (or any component thereof), (b) the Licensed
Technology, including without limitation any process or method, operating
technique, apparatus and device relating thereto, which is or may be useful in
the practice thereof, and (c) a process for the design, fabrication and
construction and operation of certain equipment, reactors, piping and instrument
that utilizes a hydrodynamic flow-through nano cavitation process which aids in
degumming crude vegetable oils; and (d) any other process, method, operating
technique, apparatus or device for manufacturing, making or aiding in the
production of degummed vegetable oils and other products, fuels, chemicals,
formulations, compounds and/or mixtures; in each case which are acquired by
Licensor or are based on or derived from inventions or discoveries conceived by
Licensor in the field of Vegetable Oil Refining Science.

      

      “Licensor Technical
Information” means (a) all unpatented information and data relating to
the Licensed Technology, including without limitation all Know-How and any
inventions, trade secrets, formulae, processes, methods, technologies, operating
techniques, apparatuses, reactants, catalysts and other chemicals, chemical
compounds and mixtures, that are or may be useful in practicing the Licensed
Technology, (b) the Reactor Information, and (c) all Inventions and
Improvements.

      

      “Nano Cavitation Reactor”
means the proprietary reactors designed and manufactured in accordance with
Licensor’s specifications and integrated into each Reactor Skid
Unit.

      

      “Party” means Licensor or
Licensee, or either of them, including each of their respective successors and
any permitted assignees under the terms of this Agreement. 

      

      “Performance Guarantee” means
the performance criteria that each Reactor Skid Unit must achieve or satisfy
during performance tests conducted prior to handover of the Unit to the Site
User as specified in Section 1.03 of Schedule B hereto and
as set forth in Schedule G
hereto.

       

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          A-3

          
            

          

        

        
           

        

      

      

      “Person” means any natural
person, corporation, partnership (including both general and limited
partnerships), limited liability company, firm, association, trust, government,
governmental agency, instrumentality, political subdivision or other legal
entity other than the Parties.

      

      “Pilot Plant” means the
limited scale pilot plant previously designed by Licensor and constructed or
assembled by Licensor.

      

      “Primary Term” means the
initial term of this Agreement set forth in Section 9.01.

      

      “Process Design Package” means
the comprehensive design package for the Reactor Skid Units, including without
limitation drawings, schematics, flow charts, diagrams and documents depicting
process design; reactor, piping and instrumentation diagrams; process data
sheets for equipment; instrumentation data sheets; safety value data sheets;
logic diagrams; graphic displays; performance data; and technical or operating
manuals; in each case which are in tangible print or that are or may be
electronically stored and retrieved by any means and relate to the design,
fabrication, construction, installation, operation and maintenance of the
Units.

      

      “Reactor Information” means
all information, including without limitation, all data, processes, plans,
specifications, flow sheets, designs, diagrams and drawings relating in any way
to the design, fabrication, construction, or operation of any Nano-Cavitation
Reactor.

      

      “Reactor Skid Unit” or “Unit” means each processing
unit or facility designed and constructed in accordance with and utilizing
Licensor’s proprietary Green D Plus Nano
Cavitation Reactor Skid System, consisting of certain equipment, piping,
instrumentation and other components (including one or more Nano-Cavitation
Reactors) designed, fabricated and constructed in accordance with the Product
Design Package, whether constructed for demonstration or commercialization
purposes, which uses a hydrodynamic flow-through nano cavitation technology in
making, generating or aiding in the production of degummed vegetable
oils.

      

      “Renewal Term” has the
meaning set forth in Section 9.01 of this Agreement.

      

      “Secrecy & Non-Disclosure
Agreement” means the Secrecy & Non-Disclosure Agreement executed by
and between the Parties simultaneously herewith.

      

      “Site User License” means the
license to use, maintain and operate one or more Reactor Skid Units
substantially in the form of the Site User License set forth in Exhibit D
hereto.

      

      “Site User” means any Person
that has received, accepted and executed a Site User License with respect to one
or more Reactor Skid Units.

      

      “Specifications” means the
items, criteria, data and requirements governing the design, fabrication,
construction, installation, performance, operation and/or maintenance of the
Reactor Skid Units, including without limitation the detailed specifications
developed by Licensee and approved by Licensor, in each case shall be part of or
be consistent with the Process Design
Package.    

      

      “Standards” means any and all
codes, standards or requirements set forth or specified in this Agreement or
under Applicable Law, relating to Licensee’s design, construction, installation
and operation of any Reactor Skid Unit.  In the event of any conflict
between any of the Standards, the Standard containing or including the higher
performance standard shall apply.

       

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          A-4

          
            

          

        

        
           

        

      

      

      “Vegetable Oil” means any
natural oils (virgin and/or used) derived from plants and other related organic
materials (excluding crude oil and other hydrocarbon based minerals and
substances), including any products, materials and other substances derived
therefrom. 

      

      “Vegetable Oil Processing
Facilities”” means any plant or facility located at a geographic site or
location within the Licensed Territory which is designed, constructed and is or
will be operated for the purpose of processing vegetable oils.

      

      “Vegetable Oil Science” means
the use of a process known as “degumming” or any other process or method for the
processing of natural oils (virgin and/or used) derived from plants and other
organic materials (excluding crude oil and other hydrocarbon based oils,
minerals and substances) and includes, without limitation, the teachings and
claims set forth in the Licensor Primary Patents.

      

      [END OF
SCHEDULE A]

       

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          A-5

          
            

          

        

        
           

        

      

      

      SCHEDULE
B

      GENERAL
TERMS AND CONDITIONS

      

      Article 1.  Warranties; Performance
Guarantee; Limitations on Liability.

      

      
        1.01
Licensor’s Warranties;
Limitations.

      

      (a) Licensor warrants that, at the time
each Nano-Cavitation Reactor or Reactor Skid Unit delivered to Licensee or a
Site User, as the case may be, will perform in accordance with Licensor’s
performance specifications.

      

        (b)
If, at any time during a one (1) year period after startup of any Reactor Skid
Unit, it is discovered that the Unit (or any component or part thereof) does not
meet the foregoing warranties, Licensee shall, at no cost to Licensor, promptly
perform or arrange for the performance of any remedial work or services required
to make the Unit conform to such warranties.

      

      1.02  Performance
Guarantee.  (a) Prior to the handover of each Reactor Skid Unit
to the Site User(s), Licensee shall conduct a performance test on each Unit,
utilizing the American Society of Mechanical Engineers’ testing methodology and
deploying steady state testing, for the purpose of determining whether the
Unit’s performance achieves or satisfies the Performance Guarantee set forth in
Schedule G
hereto.  If the Unit, during performance testing, achieves the
criteria specified in the Performance Guarantee, Licensee shall promptly issue
to the Site User(s) an inspection and performance test certificate confirming
that the Performance Guarantee has been satisfied.  Each such
certificate shall be signed by Licensee and the Site User and shall be
conclusive evidence that the Unit achieved and satisfied the Performance
Guarantee.  Upon delivery of the original certificate to the Site
User, one (1) copy will be delivered to Licensor with one (1) or more copies
retained by Licensee.

      

        (b)
If the performance testing of any Reactor Skid Unit prior to handover fails to
achieve or satisfy the Performance Guarantee, Licensor shall (1) promptly
perform or arrange for the performance of any remedial work or services required
for the Unit to satisfy the Performance Guarantee, and (2) conduct such
additional performance tests to verify that the Performance Guarantee has been
satisfied.  Licensor shall be responsible for the cost of any
performance re-test, including costs associated with securing and storing
feedstocks.

      

      1.03  Limitation on
Damages.  (a) Except for violations of Section 4.03 of this
Agreement or as set forth in Section 5.02(c) of this Schedule B, NEITHER
PARTY SHALL HAVE ANY LIABILITY TO THE OTHER PARTY FOR ANY SPECIAL, INDIRECT,
INCIDENTAL, PUNITIVE OR EXEMPLARY DAMAGES, INCLUDING WITHOUT LIMITATION, LOST
PROFITS OR SAVINGS, REGARDLESS OF THE FORM OF ACTION GIVING RISE TO SUCH A CLAIM
FOR SUCH DAMAGES, WHETHER IN CONTRACT OR TORT, OR OTHERWISE, INCLUDING WITHOUT
LIMITATION NEGLIGENCE, EVEN IF LICENSOR OR LICENSEE HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES.

      

      (b) THE AGGREGATE LIABIITY OF LICENSOR
FOR ANY REASON AND UPON ANY CLAIM OR CAUSE OF ACTION BASED ON OR ARISING OUT OF
THIS AGREEMENT SHALL BE LIMITED TO THE AGGREGATE AMOUNT OF LICENSE FEES, RENTS
AND ROYALTIES PAID TO LICENSOR UNDER THIS AGREEMENT.  THIS LIMITATION
APPLIES TO ALL CLAIMS OR CAUSES OF ACTION IN THE AGGREGATE, INCLUDING WITHOUT
LIMITATION BREACH OF CONTRACT, INDEMNITIES, NEGLIGENCE, STRICT LIABILITY,
MISREPRESENTATIONS, CLAIMS FOR FAILURE TO EXERCISE DUE CARE IN THE PERFORMANCE
OF SERVICES HEREUNDER OR IN THE SELECTION, DIRECTION OR SUPERVISION OF ANY
MANUFACTURER OR FABRICATOR OF EQUIPMENT OR ANY VENDOR OF SOFTWARE.

       

      CTI Initials ________  DB Initials
________     

      
        
           

        

        
          B-1

          
            

          

        

        
           

        

      

      

      HOWEVER,
THE LIMITATION STATED UNDER THIS SECTION 1.03 (b) DOES NOT APPLY IN CASE OF
INFRINGEMENT OR CONTRIBUTORY INFRINGEMENT OF PATENTS OR COPYRIGHTS OR OTHER
INTELLECTUAL PROPERTY RIGHTS RELATING TO OR ARISING FROM ANY REACTOR SKID UNIT
OR THE LICENSED TECHNOLOGY AND ASSERTED BY ANY THIRD PARTY AGAINST THE LICENSEE
OR AGAINST ANY SITE USER .

      

      IF IT
APPEARS THAT THE CLAIM FOR INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHT CAN BE
SOLVED BY THE PAYMENT OF AN INDEMNITY OR FEE OR ROYALTY TO THE AGGRIEVED THIRD
PARTY CAN BE SOLVED BY THE PAYMENT OF AN INDEMNITY OR FEE OR ROYALTY TO THE
AGGRIEVED THIRD PARTY, LICENSOR SHALL SUPPORT THE PAYMENT OF SUCH INDEMNITY, FEE
OR ROYALTY.

       

      Article 2.  Indemnification.

      

      2.01 Licensor’s
Indemnity.  (a) LICENSOR AGREES TO DEFEND, INDEMNIFY AND HOLD
HARMLESS THE LICENSEE GROUP FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS,
ACTIONS, SUITS, DAMAGES, LOSSES, AND LIABILITY (INCLUDING WITHOUT LIMITATION
LITIGATION COSTS AND REASONABLE ATTORNEYS’ FEES) ON ACCOUNT OF:

      

      (1) ANY
BREACH OR VIOLATION OF LICENSOR’S REPRESENTATIONS OR WARRANTIES UNDER THIS
AGREEMENT; AND

      

      (2) ANY
CLAIMED OR ACTUAL INFRINGEMENT OR CONTRIBUTORY INFRINGEMENT OF PATENTS OR
COPYRIGHTS RELATING TO OR ARISING FROM THE REACTOR SKID UNIT OR THE LICENSED
TECHNOLOGY;

      

      (b) NOTWITHSTANDING THE FOREGOING,
LICENSOR’S INDEMNITY HEREIN SHALL NOT EXTEND TO OR INCLUDE LICENSEE’S
PROPRIETARY EQUIPMENT, TECHNOLOGY OR SOFTWARE THAT DO NOT CONFORM IN ALL
RESPECTS WITH THIS AGREEMENT, THE PROCESS DESIGN PACKAGE, AND LICENSOR’S
SPECIFICATIONS.

      

      HOWEVER,
THE LIMITATION STATED UNDER THIS SECTION 1.03 (b) DOES NOT APPLY IN CASE OF
INFRINGEMENT OR CONTRIBUTORY INFRINGEMENT OF PATENTS OR COPYRIGHTS OR OTHER
INTELLECTUAL PROPORTY RIGHTS RELATING TO OR ARISING FROM THE REACTOR SKID UNIT
OR THE LICENSED TECHNOLOGY AND ASSERTED BY ANY THIRD PARTY AGAINST THE LICENSEE
OR AGAINST SITE USER .

      

      IF IT
APPEARS THAT THE CLAIM FOR INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHT CAN BE
SOLVED BY THE PAYMENT OF AN INDEMNITY OR FEE OR ROYALTY TO THE AGGRIEVED THIRD
PARTY CAN BE SOLVED BY THE PAYMENT OF AN INDEMNITY OR FEE OR ROYALTY TO THE
AGGRIEVED THIRD PARTY, LICENSOR SHALL SUPPORT THE PAYMENT OF SUCH INDEMNITY, FEE
OR ROYALTY;

       

      CTI Initials ________  DB Initials
________     

      
        
           

        

        
          B-2

          
            

          

        

        
           

        

      

    

     

    
      2.02 Licensor’s Indemnity;
Limitations.  LICENSOR’S TOTAL OBLIGATION AND LIABILITY TO
DEFEND, INDEMNIFY AND HOLD HARMLESS THE LICENSEE GROUP, OR ANY OF THEM, UNDER
THIS AGREEMENT SHALL BE SUBJECT TO THE LIMITATIONS SET FORTH IN SECTION 1.03 OF
THIS SCHEDULE
B.

      

      2.03 Licensee’s
Indemnity.  (a) LICENSEE AGREES TO DEFEND, INDEMNIFY AND HOLD
HARMLESS THE LICENSOR GROUP FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS,
ACTIONS, SUITS, DAMAGES, LOSSES, AND LIABILITY (INCLUDING WITHOUT LIMITATION
LITIGATION COSTS AND REASONABLE ATTORNEYS’ FEES) ON ACCOUNT OF:

       

      (1) ANY
PERSONAL INJURY, DISEASE OR DEATH OF ANY PERSON (S),  OR DAMAGE TO OR
LOSS OF PROPERTY, CAUSED BY OR ARISING OUT OF THE PERFORMANCE OF LICENSEE’S
SERVICES AND WORK UNDER THIS AGREEMENT, INCLUDING WITHOUT LIMITATION ANY INJURY,
DEATH OR PROPERTY DAMAGE CAUSED BY OR ATTRIBUTABLE TO (1) THE NEGLIGENCE OF
LICENSEE, ITS SUBCONTRACTORS, INVITEES OR SUPPLIERS (INCLUDING WITHOUT
LIMITATION THE RESPECTIVE EMPLOYEES, CONTRACTORS OR AGENTS OF THE FOREGOING); OR
(2) WHERE LIABILITY WITH OR WITHOUT FAULT IS STRICTLY IMPOSED BY OPERATION OF
LAW;

       

      (2) ANY
FAILURE BY LICENSEE TO COMPLY WITH APPLICABLE LAW, INCLUDING WITHOUT LIMITATION,
FEDERAL, STATE AND LOCAL LAWS, RULES AND REGULATIONS WHICH MAY BE APPLICABLE TO
OR IMPOSED IN CONNECTION WITH PERFORMANCE OF LICENSEE’S SERVICES AND WORK UNDER
THIS AGREEMENT, WITHOUT REGARD TO WHETHER LICENSEE’S ACTIONS MAY HAVE RESULTED
IN STRICT LIABILITY IMPOSED BY OPERATION OF LAW;

       

      (3) LIENS
AND OTHER CLAIMS ARISING FROM WORK PERFORMED BY LICENSEE’S SUBCONTRACTORS OR
FROM MATERIALS SUPPLIED TO LICENSEE; AND

       

      (4) ANY
(i) BREACH OF ANY REPRESENTATION, WARRANTY OR COVENANT OF LICENSEE CONTAINED
HEREIN, AND (ii) ANY CLAIM OR LOSS (INCLUDING LITIGATION COSTS AND REASONABLE
ATTORNEYS’ FEES) ASSERTED OR INCURRED BY ANY MEMBER OF THE LICENSOR GROUP IN
DEFENSE OR IN ENFORCING OR ASSERTING CLAIMS FOR INDEMNITY OR INSURANCE
PROTECTION UNDER THIS AGREEMENT.

      

      2.04 Licensee’s Indemnity;
Insurance Limitation.  Licensee’s indemnity obligations herein
shall be limited by, the Insurance coverage maintained by Licensee under Article
3 of this Schedule
B.

      

      2.05 Notice of Claims;
Assistance.  Each Party will promptly advise the other Party in
writing of any demand, claim, proceeding, action or lawsuit alleging
infringement of any patent or copyright relating to any Reactor Skid Unit or the
Licensed Technology or of unauthorized disclosure, communication or
transportation of Confidential Information.  Each Party will render
all reasonable assistance that may be required by the other Party in the defense
of any claim or lawsuit as to which a Party owes a defense and indemnity
obligation hereunder; in each case, the indemnified Party shall have the right
to be represented therein by advisory counsel of its selection and at its
expense.

       

      CTI Initials ________  DB Initials
________     

       

      
        
          
          

        

        
          B-3

          
            

          

        

        
          
          

        

      

    

     

    2.06
Settlement and
Compromise.  (a) In the event of any claim or lawsuit for
patent infringement and/or misappropriation for which Licensor owes a duty of
indemnification, Licensor shall have the obligation, if and to the extent such
claim or lawsuit can be settled that way, at Licensor’s expense, to either (1)
provide designs, specifications and/or operating conditions and make
modifications to any Reactor Skid Unit (or any component or part thereof) that
would avoid such infringement and/or misappropriation without degrading the
economics or performance of the Unit(s), or (2) acquire the right to continue
using the design, construction and operating conditions which are the subject of
such infringement and/or misappropriation.

    

    (b) Except as provided in Section
2.06(a) above, a Party shall not settle or compromise any claim or lawsuit for
which a defense and/or an indemnity obligation is owed hereunder without the
indemnified Party’s written consent if the settlement or compromise obligates
the indemnified Party to make any payment or relinquish or waive any property or
contractual right under such settlement or compromise.

    

    Article 3.  Compliance with
Law.

    

    3.01 Compliance; Applicable
Law.  This Agreement is made subject to, and each of the
Parties expressly shall comply with, all applicable laws, rules, regulations,
ordinances and codes in the countries, territories and other jurisdictions in
which they transact business insofar as they may be applicable to the terms and
conditions of this Agreement.

    

    Article 4.  Governing Law and Dispute
Resolution.

    

    4.01 Governing
Law.  This Agreement and all amendments, modifications,
alterations, or supplements hereto, and the rights of the Parties hereunder,
shall be governed by and construed under the laws of the State of California
(USA) without regard to the choice of laws principles thereof.

    

    4.02      Dispute
Resolution.  (a) In the event of any claim, controversy or
dispute between the Parties arising out of or in any way relating to this
Agreement (each a “Dispute”), the
Parties shall make a good faith effort to resolve the Dispute amicably through
settlement and compromise.  If the Parties are unable to resolve a
Dispute, the Dispute shall be finally and exclusively resolved by binding
arbitration administered by the American Arbitration Association (“AAA”) under its
Commercial Arbitration Rules and the AAA Optional Rules for Emergency Measures
of Protection (the “AAA
Rules”).  Unless otherwise agreed by the Parties in writing,
arbitration of Disputes shall be conducted at the AAA’s offices in Los Angeles,
California.

    

    (b) The decision or award of the
arbitrators shall be in writing and shall state their detailed reasoning for the
award.  Discovery of evidence shall be conducted expeditiously by the
Parties, bearing in mind the Parties’ desire to limit discovery and to expedite
the decision or award of the arbitrators at the most reasonable cost and expense
of the Parties.  Judgment upon an award rendered pursuant to such
arbitration may be entered in any court having jurisdiction or application may
be made to such court for a judicial acceptance of the award and/or an order of
enforcement, as the case may be.

    

    (c) In any arbitration or litigation
between the Parties, neither Party shall be liable for or assert any claim for
consequential, incidental, special or punitive damages unless it is determined
that a Party (1) intentionally and knowingly breached or violated this
Agreement, or (2) willfully ignored or disregarded any emergency relief obtained
by a Party hereunder.  Each Party shall pay all its own costs and
expenses incurred in any such arbitration/litigation, including attorneys’ fees
and the fees and expenses of its experts and witnesses.

    

    CTI
Initials ________  DB Initials
________     

    
      
         

      

      
        B-4

        
          

        

      

      
         

      

    

    

    (d) Each Party acknowledges that the
unauthorized disclosure of Confidential Information may cause irreparable harm
and significant injury that may be difficult to ascertain.  Each Party
therefore agrees that emergency relief ((including without limitation temporary
restraining orders, temporary or permanent injunctive relief, specific
performance or similar relief), in addition to other legal and equitable relief,
are appropriate remedies for any actual or threatened violation or breach of
confidentiality obligations contained in this Agreement and/or the Secrecy &
Non-Disclosure Agreement and may be obtained by a Party on an emergency basis
from a single arbitrator designated by AAA under AAA’s Optional Rules for
Emergency Measures of Protection.  The Parties agree that, in any
arbitral action or claim submitted to AAA hereunder for emergency relief, the
Party initiating the claim or request for relief shall not be required to
demonstrate that it has no adequate remedy at law in respect of the relief
sought and shall not be required to post a bond or other security.

    

    Article 5.  Additional
Provisions.

    

    5.01 Amendment and
Waiver.  This Agreement may be amended, and waivers under this
Agreement may be granted, only by a written instrument signed by both
Parties.  Failure of either Party, at any time or from time to time,
to exercise any of its rights under this Agreement or to insist upon strict
performance of the other Party's obligations hereunder shall not be deemed a
waiver of or to limit any of such rights or obligations with respect to any
subsequent occurrence.

    

    5.02 Invalidity.  Should
any part or provision of this Agreement be held unenforceable or in conflict
with the laws of the United States of America or any state thereof, or of any
foreign country, the validity of the remaining parts or provisions shall not be
affected by such decision or holding.

    

    5.03 Third Parties. 
The Parties intend to confer no benefit or right on any Person not a party to
this Agreement.  No Person shall have the right to claim the benefit of any
provision hereof as a third party beneficiary of any such
provision.

    

    5.04 Relationship of
Parties.  Nothing in this Agreement shall be deemed to create an
agency, joint venture, partnership, franchise or similar relationship between
the Parties.  Each Party shall conduct all business in its own name as an
independent contractor and neither Party shall be liable for the
representations, acts, or omission of the other Party. 

    

    5.05 Required
Currency.  All payments shall be made in U.S. Dollars, and payment
obligations shall not be discharged by an amount paid in another currency,
whether pursuant to a judgment or otherwise.

    

    5.06 Rights, Powers, Remedies
Cumulative; Waiver; Time.  Each and every right, power and remedy
specified in this Agreement shall be cumulative and in addition to every other
right, power and remedy existing now or hereafter at law, in equity or by
statute.  Each and every right, power and remedy may be exercised from time
to time and as often and in such order as may be deemed expedient by a
Party.  The exercise of any right, power or remedy shall not be construed
to be a waiver of the right to exercise at the same time or thereafter any other
right, power or remedy. 

    

    5.07 Integration.  This
Agreement, together with the Secrecy & Non-Disclosure Agreement, embodies
the entire agreement of the Parties and merges all prior oral and written
agreements between the Parties with respect to subject matter
hereof.  No stipulation, agreement, representation or understanding of
the Parties shall be valid or enforceable unless contained in this Agreement or
the Secrecy & Non-Disclosure Agreement, or in a subsequent written agreement
signed by the Parties.

    

    5.08 Counterparts. 
This Agreement may be executed in several counterparts, and all copies so
executed shall constitute but one and the same agreement, which shall be binding
on all the Parties notwithstanding that less than all of the Parties, may have
signed the original or the same counterpart.

    [END OF
SCHEDULE B]

    

    CTI
Initials ________  DB Initials
________     

    
      
         

      

      
        B-5

        
          

        

      

      
         

      

    

    SCHEDULE
C

    

    CONFIRMED
ORDER FORM

    

    [Date]

    

    
      
        
          	
                  To:

                	
                  Cavitation
      Technologies, Inc.

                	 
      
	 
      	
                  10019
      Canoga Avenue

                	 
      
	 
      	
                  Chatsworth,
      California 91311 USA

                	
                  CONFIRMED
      ORDER # __________

                
	 
      	
                  Attn:
      Mr. Roman Gordon, CEO

                	 
      

        

      

    

    

    
      
        	
                Re:

              	
                Green
      D Plus Nano Cavitation Reactor Skid System

              
	 
      	
                Marketing
      & Technology License Agreement dated _______, 2010

              
	 
      	
                Reactor
      Skid Unit Order & Request for Site User License and Equipment
      Lease

              

      

    

    

    Product/Equipment
Order:  One (1) Green D Plus Nano Cavitation Reactor Skid
Unit

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          	
                                                                  Company,
      Plant, Bank and Leasing Company Information

                                                                
	
                                                                  Date:

                                                                	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                                                                  Company Name (Site User)  

                                                                	 
      	 
      	
                                                                  Plant
      Name

                                                                	 
      
	
                                                                  Contact
      Name

                                                                	 
      	 
      	
                                                                  Contact
      Name

                                                                	 
      
	
                                                                  Address

                                                                	 
      	 
      	
                                                                  Address

                                                                	 
      
	
                                                                  Address
      Cont.

                                                                	 
      	 
      	
                                                                  Address
      Cont.

                                                                	 
      
	
                                                                  City

                                                                	 
      	 
      	
                                                                  City

                                                                	 
      
	
                                                                  State
      or Province

                                                                	 
      	 
      	
                                                                  State
      or Province

                                                                	 
      
	
                                                                  Zip
      Code or Mail Stop

                                                                	 
      	 
      	
                                                                  Zip
      Code or Mail Stop

                                                                	 
      
	
                                                                  Country

                                                                	 
      	 
      	
                                                                  Country

                                                                	 
      
	
                                                                  Phone
      Number

                                                                	 
      	 
      	
                                                                  Phone
      Number

                                                                	 
      
	
                                                                  Fax
      Number

                                                                	 
      	 
      	
                                                                  Fax
      Number

                                                                	 
      
	
                                                                  Email

                                                                	 
      	 
      	
                                                                  Email

                                                                	 
      
	
                                                                  Web
      Site

                                                                	 
      	 
      	
                                                                  Web
      Site

                                                                	 
      
	 
      	 
      	 
      
	
                                                                  Banking
      Information

                                                                	 
      	 
      	
                                                                  Leasing Company Information  

                                                                	 
      
	
                                                                  Contact
      Name

                                                                	 
      	 
      	
                                                                  Contact
      Name

                                                                	 
      
	
                                                                  Address

                                                                	 
      	 
      	
                                                                  Address

                                                                	 
      
	
                                                                  Address
      Cont.

                                                                	 
      	 
      	
                                                                  Address
      Cont.

                                                                	 
      
	
                                                                  City

                                                                	 
      	 
      	
                                                                  City

                                                                	 
      
	
                                                                  State
      or Province

                                                                	 
      	 
      	
                                                                  State
      or Province

                                                                	 
      
	
                                                                  Zip
      Code or Mail Stop

                                                                	 
      	 
      	
                                                                  Zip
      Code or Mail Stop

                                                                	 
      
	
                                                                  Country

                                                                	 
      	 
      	
                                                                  Country

                                                                	 
      
	
                                                                  Phone
      Number

                                                                	 
      	 
      	
                                                                  Phone
      Number

                                                                	 
      
	
                                                                  Fax
      Number

                                                                	 
      	 
      	
                                                                  Fax
      Number

                                                                	 
      
	
                                                                  Email

                                                                	 
      	 
      	
                                                                  Email

                                                                	 
      
	
                                                                  ABA
      Number

                                                                	 
      	 
      	
                                                                  ABA
      Number

                                                                	 
      
	
                                                                  Web
      Site

                                                                	 
      	 
      	
                                                                  Web
      Site

                                                                	 
      

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    CTI
Initials ________  DB Initials
________     

    
      
         

      

      
        C-1

        
          

        

      

      
         

      

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    
                                                                                      
                                                                                        
                                                                                          
                                                                                            
                                                                                              
                                                                                                
                                                                                                  
                                                                                                    
                                                                                                      
                                                                                                        
                                                                                                          
                                                                                                            
                                                                                                              
                                                                                                                
                                                                                                                  
                                                                                                                    
                                                                                                                      
                                                                                                                        
                                                                                                                          
                                                                                                                            
                                                                                                                              
                                                                                                                                
                                                                                                                                  
                                                                                                                                    
                                                                                                                                      	
                                                                                                                                              Reactor
      Skid Unit Application and Specifications

                                                                                                                                            
	
                                                                                                                                              Reactor
      Skid Unit Application:

                                                                                                                                            	 
      	 
      	 
      	 
      
	 
      
	
                                                                                                                                              Oil
      type

                                                                                                                                            	
                                                                                                                                              Crude

                                                                                                                                            	
                                                                                                                                              Degummed

                                                                                                                                            	 
      	
                                                                                                                                              Comments

                                                                                                                                            
	 
      	 
      	 
      	 
      
	
                                                                                                                                              Feed
      rate:

                                                                                                                                            	
                                                                                                                                              Lbs/Hr

                                                                                                                                            	
                                                                                                                                              Kgs/Hr

                                                                                                                                            	 
      	
                                                                                                                                              Voltage

                                                                                                                                            	
                                                                                                                                              Hz

                                                                                                                                            
	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                                                                                                              Location
      specific electrical and safety codes and standards.

                                                                                                                                            
	 
      
	
                                                                                                                                              Installation
      point:

                                                                                                                                            	 
      	 
      	 
      	 
      	 
      
	 
      
	
                                                                                                                                              Dosing
      in place

                                                                                                                                            	
                                                                                                                                              %
      added

                                                                                                                                            	
                                                                                                                                              Strength

                                                                                                                                            	
                                                                                                                                              %
      excess

                                                                                                                                            	
                                                                                                                                              Type

                                                                                                                                            	 
      
	
                                                                                                                                              Acid

                                                                                                                                            	 
      	 
      	 
      	 
      	 
      
	
                                                                                                                                              Caustic

                                                                                                                                            	 
      	 
      	 
      	 
      	 
      
	
                                                                                                                                              Water

                                                                                                                                            	 
      	 
      	 
      	 
      	 
      
	
                                                                                                                                              Incoming
      Oil

                                                                                                                                            	
                                                                                                                                              Min.

                                                                                                                                            	
                                                                                                                                              Max.

                                                                                                                                            	
                                                                                                                                              Unit

                                                                                                                                            	 
      	 
      
	
                                                                                                                                              FFA

                                                                                                                                            	 
      	 
      	
                                                                                                                                              %

                                                                                                                                            	 
      	 
      
	
                                                                                                                                              Total
      P

                                                                                                                                            	 
      	 
      	
                                                                                                                                              ppm

                                                                                                                                            	 
      	 
      
	
                                                                                                                                              Ca

                                                                                                                                            	
                                                                                                                                              90

                                                                                                                                            	 
      	
                                                                                                                                              ppm

                                                                                                                                            	 
      	 
      
	
                                                                                                                                              Mg

                                                                                                                                            	
                                                                                                                                              130

                                                                                                                                            	 
      	
                                                                                                                                              ppm

                                                                                                                                            	 
      	 
      
	
                                                                                                                                              Fe

                                                                                                                                            	
                                                                                                                                              2

                                                                                                                                            	 
      	
                                                                                                                                              ppm

                                                                                                                                            	 
      	 
      
	
                                                                                                                                              Cu

                                                                                                                                            	
                                                                                                                                              0.030

                                                                                                                                            	 
      	
                                                                                                                                              ppm

                                                                                                                                            	 
      	 
      
	
                                                                                                                                              Lovibond
      Color

                                                                                                                                            	 
      	 
      	
                                                                                                                                              Red

                                                                                                                                            	 
      	 
      
	
                                                                                                                                              Lovibond
      Color

                                                                                                                                            	 
      	 
      	
                                                                                                                                              Yellow

                                                                                                                                            	 
      	 
      
	
                                                                                                                                              Post
      Degumming

                                                                                                                                            	
                                                                                                                                              Min.

                                                                                                                                            	
                                                                                                                                              Max.

                                                                                                                                            	
                                                                                                                                              Unit

                                                                                                                                            	 
      	 
      
	
                                                                                                                                              FFA

                                                                                                                                            	 
      	 
      	
                                                                                                                                              %

                                                                                                                                            	 
      	 
      
	
                                                                                                                                              Total
      P

                                                                                                                                            	 
      	 
      	
                                                                                                                                              ppm

                                                                                                                                            	 
      	 
      
	
                                                                                                                                              Ca

                                                                                                                                            	
                                                                                                                                              90

                                                                                                                                            	 
      	
                                                                                                                                              ppm

                                                                                                                                            	 
      	 
      
	
                                                                                                                                              Mg

                                                                                                                                            	
                                                                                                                                              130

                                                                                                                                            	 
      	
                                                                                                                                              ppm

                                                                                                                                            	 
      	 
      
	
                                                                                                                                              Fe

                                                                                                                                            	
                                                                                                                                              2

                                                                                                                                            	 
      	
                                                                                                                                              ppm

                                                                                                                                            	 
      	 
      
	
                                                                                                                                              Cu

                                                                                                                                            	
                                                                                                                                              0.030

                                                                                                                                            	 
      	
                                                                                                                                              ppm

                                                                                                                                            	 
      	 
      
	
                                                                                                                                              Lovibond
      Color

                                                                                                                                            	 
      	 
      	
                                                                                                                                              Red

                                                                                                                                            	 
      	 
      
	
                                                                                                                                              Lovibond
      Color

                                                                                                                                            	 
      	 
      	
                                                                                                                                              Yellow

                                                                                                                                            	 
      	 
      
	
                                                                                                                                              Current
      Process

                                                                                                                                            	
                                                                                                                                              Yes

                                                                                                                                            	
                                                                                                                                              No

                                                                                                                                            	 
      	 
      	 
      
	
                                                                                                                                              Water
      Degum

                                                                                                                                            	 
      	 
      	 
      	 
      	 
      
	
                                                                                                                                              Acid
      Degum

                                                                                                                                            	 
      	 
      	 
      	 
      	 
      
	
                                                                                                                                              Chemical
      Refine

                                                                                                                                            	 
      	 
      	 
      	 
      	 
      
	
                                                                                                                                              Physical
      Refine

                                                                                                                                            	 
      	 
      	 
      	 
      	 
      
	
                                                                                                                                              Gums

                                                                                                                                            	
                                                                                                                                              %

                                                                                                                                            	
                                                                                                                                              AI

                                                                                                                                            	 
      	 
      	 
      
	
                                                                                                                                              For
      Lecithin

                                                                                                                                            	 
      	 
      	 
      	 
      	 
      
	
                                                                                                                                              For
      Animal Feed

                                                                                                                                            	 
      	 
      	 
      	 
      	 
      

                                                                                                                                    

                                                                                                                                  

                                                                                                                                

                                                                                                                              

                                                                                                                            

                                                                                                                          

                                                                                                                        

                                                                                                                      

                                                                                                                    

                                                                                                                  

                                                                                                                

                                                                                                              

                                                                                                            

                                                                                                          

                                                                                                        

                                                                                                      

                                                                                                    

                                                                                                  

                                                                                                

                                                                                              

                                                                                            

                                                                                          

                                                                                        

                                                                                      

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    Please
acknowledge receipt of this Order and authorize issuance of Site User License at
your earliest convenience.

    

    Should
you have any questions, contact ________________ at __________.

    

    [END OF
SCHEDULE C]

    

    CTI
Initials ________  DB
Initials ________     

    
      
         

      

      
        C-2

        
          

        

      

      
         

      

    

     

    SCHEDULE
D

    SITE
USER LICENSE FORM

    

    This SITE USER LICENSE (“User License”)
is being issued effective ________, ____, by CAVITATION TECHNOLOGIES, INC.,
Nevada (U.S.) Corporation, having offices at 10019 Canoga Avenue, Chatsworth,
California 91311, and acting through n.v. DESMET BALLESTRA GROUP s.a.,
corporation, having an office at ______________ (“DBG”), to _______________, a
____________ corporation, having offices at _________________ (“Site
User”).

    

    WITNESSETH

    

    1.  Product/System.  Under
the terms of an Equipment Lease being submitted to you for execution with this
Site User License, Site User has agreed to lease the following:

    

    Green
D Plus Nano Cavitation Reactor Skid Unit

    

    (hereinafter
“Reactor Skid Unit”).  The Reactor Skid Unit will be delivered to Site
User and installed at or integrated into a vegetable oil extraction, production
or refining facility located at _____________, ____________, _________________
(the “Site
Location”).  The Reactor Skid Unit is based on a proprietary
system developed by Licensor and utilizes a unique hydrodynamic flow-through
NANO cavitation technology that aids in the degumming of crude vegetable
oils.

    

    2.    Grant of User
Right.  (a) This User License grants to Site User a
non-exclusive, non-transferable right to operate the Reactor Skid Unit at the
Site Location for the production and refining of degummed vegetable
oils.  In return for this right of use, Site User agrees that the
Reactor Skid Unit will be (1) operated solely for the purpose of producing
degummed vegetable oils, (2) maintained at the Site Location and will not be
dismantled, relocated or removed from the Site Location without first notifying
DBG in writing, and (3) operated and maintained in accordance with the
specifications, standards and instructions contained in the technical or user
manuals delivered by DBG to Site User upon handover of the Reactor Skid
Unit(s).

    

    (b) Site User agrees to protect the
proprietary technology and software used in operating the Reactor Skid Unit and
will not modify, alter, attempt to “reverse engineer”, or otherwise tamper with
the Reactor Skid Unit or its technology or software without DBG’s prior written
consent.

    

    3.  Proprietary Reactor Skid
Unit.  (a) The Reactor Skid Unit delivered and installed at the
Site Location.  Site User agrees that (1) the Reactor Skid Unit will
not be dismantled, relocated or removed from the Site Location without DBG’s
prior written consent, and (2) Site User will not, and agrees to use all
available efforts to ensure that other persons or companies will not, modify,
alter, attempt to “reverse engineer”, or otherwise tamper with the Reactor or
its proprietary technology or software without DBG’s prior written
consent.

    

    (b) Tampering with or removing the wire
security seal on the Reactor Skid Unit will void the warranties for the Reactor
Skid Unit and the Components thereof.

    

    4.  Maintenance of Reactor Skid
Unit.  Site User will maintain the Reactor Skid Unit, at its
expense, in good working order, repair, condition and appearance, and will
protect the Reactor Skid Unit from deterioration, other than normal wear and
tear from operations, and from damage, loss or destruction.  Site User
will perform all calibrations, adjustments and preventative maintenance on the
Reactor Skid Unit in accordance with the technical or user manuals delivered by
DBG to Site User upon handover of the Reactor Skid Unit.

    

    CTI
Initials _______    DB
Initials ________     

    
      
         

      

      
        D-1

        
          

        

      

      
         

      

    

    5. Losses or
Destruction.  Risk of loss of the Reactor Skid Unit will pass
to Site User upon the date of delivery to Site User.  If the Reactor
Skid Unit or the Reactor is lost, stolen or damaged, Site User will promptly
notify DBG.  In such event, DBG will, if requested by Site User and at
Site User’s cost, obtain and install a replacement Reactor Skid Unit or other
component for the Unit. 

    

    6.  Transfer of Reactor Skid
Unit.  Unauthorized transfer of the Reactor Skid Unit is
prohibited.  If Site User wishes to transfers the Reactor Skid Unit,
Site User will promptly notify DBG of the desired transfer.  Upon
receiving Site User’s notice and the name/address of the person or company to
which the Unit is to be transferred and upon acceptance of the terms of the
Operating Lease and approval by the lease company, DBG notify CTI for approval
to issue a new Site User License to the new lessee(s).  No right of
lease, license or sublicense of the user rights granted herein is authorized
except in conjunction with the operation of the Reactor Skid Unit.

    

     7.  Notice/Contact   If
any operational or maintenance problem is encountered with the Reactor Skid
Unit; please immediately contact DBG as follows:

    

    If Site User is in agreement with the
foregoing, please so indicate by signing this User License in the space(s)
designated below and returning a signed copy to us at your earliest
convenience.

    

    
      
        
          	 
      	
                  Sincerely,

                
	 
      	
                  Desmet
      Ballestra Group

                
	 
      	
                  n.v.
      Desmet Ballestra Group, s.a.

                
	 
      	 
      
	 
      	
                  By:

                	 
      

        

      

    

    

    Agreed to
and accepted this ___ day of ____, 2___

    

    _______________________
[Site User]

    

    _______________________
[Site User]

     

    [END OF
SCHEDULE D]

     

    CTI Initials _______    DB Initials
________     

     

    
      
        
        

      

      
        D-2

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
E

    TECHNICAL
ASSISTANCE/SUPPORT - RATES

    

    Technical
assistance and support provided by Licensor from time to time under the
provisions of Article IV of this Agreement shall be charged at the rate of $
1,500 per man day, together with payment or reimbursement of costs and expenses
as specified therein.

    

    [END OF
SCHEDULE E]

     

    CTI Initials
_______    DB Initials
________     

     

    
      
        
        

      

      
        E-1

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
F

    OPERATING
LEASE

    

    
      	
               
      

            	
              1.

            	
              Operating
      Lease.  The Operating Lease will be provided by PNB or
      other leasing company as directed by the Licensee.  Licensor may
      direct the Licensee as to which Leasing companies are available to Site
      User in their country or region.

            

    

    

    
      	
               
      

            	
              2.

            	
              Cost Basis.
      Licensor will advise Licensee of the Cost basis for the Operating Lease
      and Licensee will advise the Site User of the Cost
      basis.   The Cost Basis will be provided by the Licensor to
      the Licensee and will be based on the Lease Term, Reactor Skid Unit Model,
      capacity, manufacturing and other
costs.

            

    

    

    
      	
               
      

            	
              3.

            	
              Lease
      Application. Site User will apply for the Operating Lease as
      instructed by Leasing Company.

            

    

    

    
      	
               
      

            	
              4.

            	
              Lease Payment
      Amount.  The Lease Payment Amount is determined by the
      Leasing Company and is based on the Cost Basis and Lease
    Term.

            

    

    

    
      	
               
      

            	
              5.

            	
              Lease
      Terms.  The Lease Terms available are determined by the
      Leasing Company.

            

    

    

    
      	
               
      

            	
              6.

            	
              Lease
      Approval.  Leasing Company will notify Licensor of Lease
      Approval.  Licensor will notify Licensee of Lease
      Approval.

            

    

    

    
      	
               
      

            	
              7.

            	
              Lease
      Payments.  Lease Payments will be made by Site User to
      the Leasing Company.  The leasing Company will pay the Licensor.
      The Licensee bears no responsibility for such Lease
    Payments.

            

    

    

    
      	
               
      

            	
              8.

            	
              Lease Revenue
      Sharing. Licensor agrees to pay Licensee 10% of gross lease
      revenues.

            

    

     

    [END OF
SCHEDULE F]

    

    CTI Initials
_______    DB Initials
________     

     

    
      
        
        

      

      
        F-1

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
G

    

    PERFORMANCE
GUARANTEE

    

    1.01.  Performance
Test.  (a) After mechanical completion, upon request of the
Licensee and prior to Licensor’s handover of a Reactor Skid Unit to the Licensee
or Site User, Licensor shall arrange and conduct a performance test on such Unit
to determine whether it will achieve or satisfy the Performance Guarantee
specified below.  Prior to initiating a performance test on any
Reactor Skid Unit, Licensee shall notify Licensor of a scheduled performance
test with respect to a Unit at least ten (10) days before the test is conducted
in order to give Licensor an opportunity to arrange for one or more
representatives to conduct such test.

    

    (b) Performance tests conducted as
specified herein shall adhere to the following testing protocol:

    

    1.  Testing Methodology –
American Oil Chemists Society;

    2.  Testing Equipment –
Licensor will arrange at its cost;

    3.  Operating Conditions –
Steady state testing over period of at least 72 hours;

    

    1.02 Performance
Guarantee.  The performance test conducted by Licensor with
respect to each Reactor Skid Unit must demonstrate that, during the test period,
the Unit’s performance achieved contractual performance.

    

    [END OF
SCHEDULE G]

     

    CTI Initials _______    DB Initials
________     

     

    
      
         

      

      
        G-1

        
          

        

      

      
         

      

    

    SCHEDULE
H

     

    INTENTIONALLY
LEFT BLANK

     

    CTI Initials _______    DB Initials
________     

     

    
      
         

      

      
        H-1

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