Document:

exhibit101.htm

ASSIGNMENT AND ASSUMPTION AGREEMENT

THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (the “Agreement”) is entered into as of December __, 2011 (the “Effective Date”), by and between CASTLE CREEK SILVER INC., a Idaho corporation (“Assignor”), FIRST COLOMBIA GOLD CORP., a Nevada corporation (“Assignee”) and ROBERT EBISCH (“Vendor”).

RECITALS:

	
A.  

	
Assignor and Vendor are parties to the Option to Purchase and Royalty Agreement dated July 15, 2011 (the “Option Agreement”), for Assignor’s option to acquire an undivided 100% of the right, title and interest of Vendor in and to the PB 7, 9, 11, 12, 23, 25, 27, and 29 lode mining claims (IMC #’s, respectively, 196852, 196854, 196856, 196857, 196866, 196867, 196868, and 196869), situated in Owyhee County, Idaho, (hereinafter together with any form of successor or substitute mineral tenure called the “Property”). A copy of the Option Agreement is attached to this Agreement as Exhibit A.

 

	
B.  

	
Assignor desires to assign its interest in the Option Agreement to Assignee and Assignee desires to assume Assignor’s obligations under the Option Agreement.

 

NOW, THEREFORE, in consideration of the promises and covenants contained in this Agreement, the parties agree as follows:

 

	
1.  

	
Transfer and Assignment by Assignor. Assignor hereby transfers and assigns to Assignee all of Assignor’s right, title and interest, in, to and under the Option Agreement.

 

	
2.  

	
Assumption by Assignee. Assignee assumes the assignment of the Option Agreement from Assignor and agrees to be bound, to the extent that Assignor was bound, under the terms and conditions of the Option Agreement. Assignee agrees to perform and observe, each and every one of the covenants, rights, promises, agreements, terms, conditions, obligations, duties and liabilities of Assignor arising under the Option Agreement. Notwithstanding any of the provisions of this Agreement to the contrary, the parties specifically agree that Assignee will not be responsible for rectifying environmental damage, if any, sustained on the Property prior to the
Effective Date.

 

	
3.  

	
Consideration. In consideration for this Agreement, Assignee shall pay Assignor an amount equal to (a) $50,000 within five days of Effective Date payable at Assignor’s option in cash or in 1,000,000 restricted shares of Assignor common stock, par value $0.00001, based on the conversion price of $0.05 per share; (b) $50,000 cash payable within twelve (12) months of the Effective Date; and (c) a one percent (1%) net smelter return (“NSR”) to Assignor from the sale of any ore produced from the Property.  At any time from the Effective Date, Assignee shall have
the right to acquire the 1% NSR payable to Assignor under Section 3(c) hereof for $250,000.

 

 

 

 

  

- 1 -

  

 

	
4.  

	
Representations and Warranties:  Assignor and Vendor. Assignor and Vendor  represents and warrants to Assignee as of the Effective Date as follows:

 

	
(a)     

	
Neither Assignor nor Vendor are in default under the Option Agreement.  No state of facts exist which, with or without the passage of time or the giving of notice, or both, would constitute a default under the Option Agreement by either Assignor or Vendor.

 

	
(b)     

	
All of Assignor’s and Vendor’s obligations under the Option Agreement required to be performed as of the Effective Date have been performed.

 

	
(c)     

	
The execution, delivery and performance of this Agreement have been duly authorized by each of Assignor and Vendor.

 

	
(d)     

	
The mineral claims comprising the Property have been duly and validly located pursuant to the laws of the State of Idaho and are recorded in the name set out on the attached Exhibit B, and are in good standing in the office of the county recorder on the date hereof.

 

	
(e)     

	
There is no adverse claim or challenge against or to the ownership of or title to the Property, nor to Assignor’s or Vendor’s knowledge is there any basis therefor, and, except for the Option Agreement being transferred and assigned by Assignor to Asignee hereunder, there are no outstanding agreements or options to acquire or purchase the Property or any portion thereof;

 

	
(f)     

	
There are no outstanding obligations or liabilities, contingent or otherwise, related to environmental, reclamation or rehabilitation work associated with the Property or arising out of exploration work, development work or mining activities previously carried out thereon.

 

	
(g)     

	
The consummation of the transaction herein contemplated will not conflict with or result in any breach of any covenants or agreements contained in, or constitute a default under, or result in the creation of any encumbrance under the provisions of, any indenture, agreement or other instrument whatsoever to which Assignor or Vendor is a party or by which Assignor or Vendor is bound or to which Assignor or Vendor may be subject.

 

	
(h)     

	
There are no proceedings are pending for, and Assignor and Vendor are not aware of any basis for the institution of any proceedings leading to, the placing of Assignor or Vendor in bankruptcy or subject to any laws governing the affairs of insolvent persons

 

 

 

  

- 2 -

  

	
5.  

	
Representations and Warranties:  Assignee. Assignee represents and warrants to Assignor and Vendor as of the Effective Date as follows:

 

	
(a)     

	
The execution, delivery and performance of this Agreement by Assignee have been duly authorized by Assignee.

 

	
6.  

	
Indemnification.

 

	
(a)     

	
Assignor and Vendor, jointly and severally, hereby agree to indemnify, defend and hold harmless Assignee, and its partners, directors, members, shareholders, affiliates, managers, employees and agents, from, of and against any and all claims, demands, liabilities, losses, damages, costs and expenses (including, without limitation, reasonable attorneys’ fees) arising out of or relating to (i) the breach by Assignor or Vendor of any of the representations, warranties, obligations, terms or covenants of Assignor or Vendor, under or pursuant to the Option Agreement, which obligations, terms or covenants accrued prior to the date hereof or (ii) any breach or inaccuracy of any representation or warranty made by Assignor or Vendor
under Section 4 hereunder.

 

	
(b)     

	
Assignee hereby agrees to indemnify, defend and hold harmless Assignor and Vendor, and its partners, officers, directors, members, shareholders, affiliates, managers, employees and agents, from, of and against any and all claims, demands, liabilities, losses, damages, costs and expenses (including, without limitation, reasonable attorneys’ fees) arising out of or relating to any breach or inaccuracy of any representation or warranty made by Assignee under Section 5 hereunder.

 

	
7.  

	
Further Assurances.  The parties hereto covenant and agree to execute such further instruments and take such further action as may be reasonably required by either party to fully effectuate the terms and provisions of this Assignment and the transactions contemplated herein.

 

	
8.  

	
Survival of Provisions. The representations, warranties, covenants and obligations contained in this Agreement shall survive the consummation of the closing of the transactions contemplated by this Agreement and this assignment shall bind and inure to the benefit of the parties hereto and their respective successors and assigns.

 

	
9.  

	
Entire Agreement. This Agreement embodies the entire agreement between the parties with respect to the transactions contemplated in this Agreement. There are no agreements, representations or warranties between the parties, other than those set forth or provided for in this Agreement.

 

	
10.  

	
Governing Law. This Agreement and the rights of the parties under this Agreement shall be construed and interpreted in accordance with the laws of the State of Nevada.

 

 

 

 

  

- 3 -

  

 

	
11.  

	
Attorneys’ Fees. In the event any party to this Agreement initiates litigation to enforce the terms of this Agreement or the Option Agreement, the prevailing party in the action shall be reimbursed by the other party or parties for any and all costs incurred by the prevailing party in prosecuting the action, including (without limitation) attorneys’ fees, filings fees and court costs.

 

	
12.  

	
Counterparts. This Agreement may be executed in counterparts which, when integrated, shall constitute one original of this Agreement.

 

IN WITNESS WHEREOF, the parties to this Agreement have executed and delivered this Agreement as of the date first written above.

	
Assignor:

	
Assignee:

	  	  
	
CASTLE CREEK SILVER INC.

	
FIRST COLOMBIA GOLD CORP.

	  	  
	  	  
	  	  
	
By: /s/  Camilo Velasquez                                         

	
By:    /s/  Tony Langford                                          

	
Name:  Camilo Velasquez

	
Name:     Tony Langford

	
Title:    Director

	
Title:       Chief Financial Officer

	  	  
	  	  
	
Vendor:

	  
	  	  
	  	  
	  	  
	
 /s/  ROBERT EBISCH                                            

	  
	
       ROBERT EBISCH

	  

 

 

 

  

- 4 -

  

 

 

EXHIBIT A

OPTION TO PURCHASE AND ROYALTY AGREEMENT

BETWEEN

CASTLE CREEK SILVER INC.

AND

ROBERT EBISCH

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

  

  

 

OPTION TO PURCHASE AND ROYALTY AGREEMENT

THIS AGREEMENT made as of the 15 day of July 15, 2011

BETWEEN:

Robert Ebisch (100% owner) of 3049 Indiana Street, Golden, CO. 80401

(hereinafter called the "Vendor")

OF THE FIRST PART

AND:

Castle Creek Silver Inc., a company duly incorporated under the laws of the state of Idaho, whose mailing address is P.O Box 1227, Wallace, Idaho, 83873

(hereinafter called "CCS")

OF THE SECOND PART

WHEREAS:

A.           The Vendor is the beneficial owner of 100% of the right, title and interest in and to the PB 7, 9, 11, 12, 23, 25, 27, and 29 lode mining claims (IMC #’s, respectively, 196852, 196854, 196856, 196857, 196866, 196867, 196868, and 196869), situated in Owyhee County, Idaho, (hereinafter together with any form of successor or substitute mineral tenure called the "Property");

B.           The parties now wish to enter into an agreement granting to CCS the exclusive right and option to acquire an undivided 100% of the right, title and interest of the Vendor in and to the Property on the terms and conditions as hereinafter set forth.

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the premises and the mutual promises, covenants and agreements herein contained, the parties hereto agree as follows:

	
1.

	
INTERPRETATION

	
1.1

	
In this Agreement:

	
  

	
(a)

	
"Approval Date" means July 15,2011,

	
  

	
(b)

	
"Area of Mutual Interest" has the meaning set forth in Section 15;

	
  

	
(c)

	
"dollars" means legal currency of the United States of America;

 

 

  

A - 1

  

 

 

	
  

	
(d)

	
"Exploration Expenditures" shall include all expenditures and costs made or incurred by CCS or its affiliates or assigns relating directly or indirectly to the Property, including without limitation all expenditures and costs made or incurred: in doing geophysical, geochemical, land, airborne, environmental and/or geological examinations, assessments, assays, audits and/or surveys; in linecutting, mapping, trenching and staking; in searching for, digging, trucking, sampling, working, developing, mining and/or extracting ores, minerals and metals; in doing diamond and other drilling; in obtaining, providing, erecting, mining and milling including, without limitation, installing and operating mining plant, milling or other treatment plant, ancillary facilities, buildings, machinery, tools,
appliances and/or equipment; in construction of access roads and other facilities on or for the benefit of the Property or any part thereof, in transporting personnel, supplies, mining, milling or other treatment plant, buildings, machinery, tools, appliances or equipment in, to or from the Property or any part thereof, in paying reasonable wages and salaries (including "fringe benefits") of personnel directly engaged in performing work on or with respect to the Property; in payment of assessments or contributions under applicable employment legislation relating to workers' compensation, unemployment insurance and other applicable legislation or ordinances relating to such personnel; in supplying food, lodging and other reasonable needs for such personnel; in obtaining and maintaining any insurance; in the management of and accounting for work and providing supervisory, legal,
accounting, consulting and other contract or professional services or facilities relating to work performed or to be performed hereunder, in paying any taxes, fees, charges, payments or rentals (including payments made in lieu of assessment work) or otherwise incurred to transfer the Property or any part thereof or interest therein pursuant to this Agreement and to keep the Property or any part thereof in good standing; in acquiring access and surface rights to the Property; in carrying out any negotiations and preparing, settling and executing any agreements or other documents relating to environmental or indigenous peoples' claims, requirements or matters; in carrying out any requirements or prerequisites in order to obtain and obtaining all necessary or appropriate approvals, permits, consents or permissions relating to the carrying out of work, including, without limitation,
environmental permits, approvals or consents; in carrying out reclamation or remediation; in improving, protecting, or perfecting title in the Property or any part thereof, in carrying out mineral, soil, water, air or other testing; in preparing engineering, geological, financing, marketing or environmental studies and/or reports and test work related thereto; and in preparing one or more feasibility studies including any work or reports preliminary or supplementary thereto.

	
  

	
Where Exploration Expenditures are charged CCS by an affiliate of CCS for services rendered by such affiliate, such Exploration Expenditures shall not exceed the fair market value of the services rendered.

	
  

	
CCS shall be entitled to include in Exploration Expenditures a charge for management supervision and administrative services of CCS equal to:

	
  

	
(i)

	
ten percent (10%) of all expenditures and costs made or incurred by CCS under each contract with a third party involving an expenditure in excess of $100,000; and

	
  

	
(ii)

	
fifteen percent (15%) of all other expenditures and costs made or incurred by CCS on the Property or pursuant to this Agreement.

 

 

  

A - 2

  

 

The certificate of an officer of CCS or its affiliate setting forth the Exploration Expenditures incurred by CCS in reasonable detail shall be primafacie evidence of the same.

(e)           "Mineral Products" means the products derived from operating the Property as a mine;

	
  

	
(f)

	
"Net Smelter Returns" means the proceeds received by CCS from any smelter or other purchaser from the sale of any ores, concentrates or minerals produced from the Property after deducting from such proceeds the following charges only to the extent that they are not deducted by the smelter or other purchaser in computing the proceeds:

	
  

	
(i)

	
the cost of transportation of the ores, concentrates or minerals from the Property to such smelter or other purchaser, including related transport;

	
  

	
(ii)

	
smelting and refining charges including penalties;

	
  

	
(iii)

	
marketing costs;

	
  

	
(g)

	
"Option" means the option granted by the Vendor to CCS pursuant to Section 3;

	
  

	
(h)

	
"Operating the Property as a mine” or “Operation of the Property as a mine” means any or all of the mining, milling, smelting, refining or other recovery of ores, minerals, metals or concentrates or values thereof, derived from the Property;

	
  

	
(i)

	
"Property" means those claims listed on page 1 of this Agreement together with any land included by operation of the "Area of Mutual Interest" provision set out in Section 15; and

	
  

	
(j)

	
"Royalty" means the royalty to be paid by CCS to the Vendor pursuant to Subsection 9.1.

	
2.

	
REPRESENTATIONS AND WARRANTIES

	
2.1

	
CCS represents and warrants to the Vendor that:

	
  

	
(a)

	
it is a body corporate duty incorporated, organized and validly subsisting under the laws of its incorporating jurisdiction;

	
  

	
(b)

	
it has full power and authority to carry on its business and to enter into this Agreement and any agreement or instrument referred to or contemplated by this Agreement;

	
  

	
(c)

	
neither the execution and delivery of this Agreement nor any of the agreements referred to herein or contemplated hereby, nor the consummation of the transactions hereby contemplated will conflict with, result in the breach of or accelerate the performance required by any agreement to which CCS is a party; and

	
  

	
(d)

	
the execution and delivery of this Agreement and the agreements contemplated hereby will not violate or result in the breach of laws of any jurisdiction applicable or pertaining thereto or of its constating documents.

 

 

  

A - 3

  

	
2.2

	
The Vendor represents and warrants to CCS:

	
  

	
(a)

	
the Property has been duly and validly staked,  has been recorded, is accurately described on page 1 of this agreement, and is presently in good standing under the laws of the jurisdiction in which it is located and, except as set forth herein, is free and clear of all liens, charges and encumbrances;

	
  

	
(b)

	
the Vendor is the sole beneficial owner of a 100% interest in and to the Property and has the exclusive right to enter into this Agreement and all necessary authority to dispose of an undivided 100% interest in and to the Property in accordance with the terms of this Agreement;

	
  

	
(c)

	
the Vendor is the registered owner of the Property;

	
  

	
(d)

	
no person, firm or corporation has any proprietary or possessory interest in the Property other than the Vendor and no person is entitled to any royalty or other payment in the nature of rent or royalty on any minerals, ores, metals or concentrates or any other such products removed from the Property;

	
  

	
(e)

	
neither the execution and delivery of this Agreement nor any of the agreements referred to herein or contemplated hereby, nor the consummation of the transactions hereby contemplated will conflict with, result in the breach of or accelerate the performance required by any agreement to which the Vendor is a party or by which he is bound;

	
  

	
(f)

	
the execution and delivery of this Agreement and the agreements contemplated hereby will not violate or result in the breach of the laws of any jurisdiction applicable or pertaining thereto.

	
2.3

	
The representations and warranties hereinbefore set out are conditions on which the parties have relied in entering into this Agreement and will survive the acquisition of any interest in the Property by CCS and each party will indemnify and save the other party harmless from all loss, damage, costs, actions and suits arising out of or in connection with any breach or any representation, warranty, covenant, agreement or condition made by the other party and contained in this Agreement.

	
3.

	
OPTION

	
3.1

	
The Vendor hereby gives and grants to CCS the sole and exclusive right and option to acquire an undivided 100% of the right, title and interest of the Vendor in and to the Property, Vendor receiving the Royalty, in accordance with the terms of this Agreement for and in consideration of the following:

	
  

	
(a)

	
cash payments as stipulated in the following schedule plus five per cent (5%) of any joint-venture and buyout payments (hereafter referred to as JV&BP) as set out below:

(i)        $2,500 on or before January 31, 2012;

 

(ii)       $2,500 on or before September 15, 2012, plus 5% of any JV&BP;

 

 

  

A - 4

  

(iii)      $5,000 on or before September 15, 2013, plus 5% of any JV&BP; 

 

(iv)      $10,000 on or before September 15, 2014, plus 5% of any JV&BP;

 

(v)       $15,000 on or before September 15, 2015, plus 5% of any JV&BP;

 

(vi)      $20,000 on or before September 15, 2016, plus 5% of any JV&BP; 

 

(vii)     $25,000 on or before September 15, 2017, plus 5% of any JV&BP

	
  

	
(b)

	
Exploration Expenditures of an aggregate of not less than $210,000 to be incurred by CCS on the Property as follows:

	
  

	
(i)

	
on or before April 15, 2012 - $10,000;

	
  

	
(ii)

	
on or before September 15, 2012 - $20,000 in the aggregate;

	
  

	
(iii)

	
on or before September 15, 2013 - $100,000 in the aggregate; and

	
  

	
(iv)

	
on or before September 15, 2014 - $210,000 in the aggregate.

	
  

	
(c)

	
CCS will also be responsible for the payment of the filing fees as of the date of this agreement and during the term of this agreement.,.

	
3.2

	
In addition to the cash payments, Exploration Expenditures, and initial filing fees set out in Section 3.1 above, CCS shall, in order to maintain its interest in the Property:

	
  

	
(a)

	
make advance Royalty payments to the Vendor, commencing on September 15, 2015 and continuing on the 15th day of September each and every year thereafter for so long as CCS or its assigns retains its interest in the Property, of $25,000 per year plus 5% of any JV&BP; and

	
  

	
(b)

	
subject to Section 3.3, incur a minimum of $100,000 of annual Exploration Expenditures on the Property on or before September 15th  each and every year after September 15, 2015.

	
3.3

	
Any Exploration Expenditures incurred in a particular period in excess of the minimum Exploration Expenditures required to be incurred during that particular period may be carried forward and included as Exploration Expenditures in any subsequent period, it being the intent of the parties that the Exploration Expenditures are cumulative.

	
4.

	
RIGHT OF ENTRY

	
4.1

	
During the currency of this Agreement, CCS, its employees, agents and independent contractors, will have the sole and exclusive right and option to:

	
  

	
(a)

	
enter upon the Property;

 

 

 

  

A - 5

  

 

 

 

	
  

	
(b)

	
have exclusive and quiet possession thereof;

	
  

	
(c)

	
do such prospecting, exploration, development or other mining work thereon and thereunder as CCS in its sole discretion may consider advisable;

(d)           bring and erect upon the Property such facilities as CCS may consider advisable.

	
5.

	
TERMINATION

 

	
5.1

	
Subject to Section 19.1, this Agreement and the Option will terminate at the discretion of Castle Creek Silver, Inc. The property, if abandoned by Castle Creek Silver, Inc., will be returned to the vendor with the claims in good standing for a minimum of one year beyond the date of postmark on the termination notification.

	
6.

	
COVENANTS OF THE VENDOR

	
6.1

	
During the currency of this Agreement and the Option, the Vendor will:

	
  

	
(a)

	
not do any act or thing which would or might in any way adversely affect the rights of CCS hereunder;

	
  

	
(b)

	
make available to CCS and its representatives all records and files in the possession of the Vendor relating to the Property and permit CCS and its representatives at its own expense to take abstracts therefrom and make copies thereof; and

	
  

	
(c)

	
promptly provide CCS with any and all notices and correspondence from government agencies in respect of the Property.

	
7.

	
COVENANTS OF CCS

	
7.1

	
During the currency of this Agreement and the Option, CCS will:

	
  

	
(a)

	
keep the Property free and clear of all liens, charges and encumbrances arising from their operations hereunder and in good standing by the doing and filing of all necessary work and by the doing of all other acts and things and making all other payments which may be necessary in that regard, including claim maintenance payments;

	
  

	
(b)

	
permit the Vendor, or their representatives duly authorized by them in writing, at their own risk and expense, access to the Property at all reasonable times and to all records prepared by CCS in connection with work done on or with respect to the Property;

 

	
  

	
(c)

	
conduct all work on or with respect to the Property in a careful and minerlike manner and in compliance with all applicable Federal, State and local laws, rules, orders and regulations, and indemnify and save the Vendor harmless from any and all claims, suits, actions made or brought against it as a result of work done by CCS on or with respect to the Property;

	
  

	
(d)

	
obtain and maintain, or cause any contractor engaged hereunder to obtain and maintain, during any period in which active work is carried out hereunder, adequate insurance; and

 

 

 

  

A - 6

  

 

 

 

	
  

	
(e)

	
be responsible for satisfying all bonding requirements for work to be carried out on the Property and assume liability for all environmental damage and reclamation work required on the property.

	
8.

	
EXERCISE OF OPTION

	
8.1

	
Once CCS has incurred Exploration Expenditures of a minimum of $210,000 as set out in Subsection 3.1(b) and made the payments totalling $80,000 plus any stipulated JV&BP payments as set out in Subsection 3.1(a), CCS will, subject to the right of the Vendor to receive the Royalty (including the annual advance Royalty payments and 5% of any JV&BP payments as set out in Subsection 3.1 and 3.2), own an undivided 100% of the Vendor's right, title, and interest in and to the Property.

	
9.

	
ROYALTY

	
9.1

	
CCS will pay to the Vendor an annual royalty equal to two percent (2.0%) of Net Smelter Returns, subject to Section 9.4.

	
9.2

	
After the exercise of the Option, payment of the Royalty will be made quarterly within 30 days after the end of each yearly quarter based upon a year commencing on the 15th day of September and expiring on the 14th day of September in any year during which production occurs.  Within 60 days after the end of each year for which the Royalty is payable, the records relating to the calculation of Net Smelter Returns for such year will be audited by CCS and any adjustments in the payment of the Royalty will be made forthwith after completion of the audit.  All payments of the Royalty for a year will be deemed final and in full satisfaction of all obligations of CCS in respect thereof if such payments or calculations
thereof are not disputed by the Vendor within 60 days after receipt by the Vendor of the said audit statement.  CCS will maintain accurate records relevant to the determination of Net Smelter Returns and the Vendor, or his authorized agent, shall be permitted the right to examine such records at all reasonable times.

	
9.3

	
The determination of Net Smelter Returns royalty hereunder is based on the premise that production will be developed solely on the Property except that CCS will have the right to commingle ore mined from the Property with ore mined and produced from other properties provided CCS will adopt and employ reasonable practices and procedures for weighing, sampling and assaying, in order to determine the amounts of products derived from, or attributable to ore mined and produced from the Property.  CCS will maintain accurate records of the results of such sampling, weighing and analysis with respect to any ore mined and produced from the Property.  The Vendor or her authorized agents will be permitted the right to
examine at all reasonable times such records pertaining to commingling of ore or to the calculation of Net Smelter Returns.

9.4           CCS shall have the right to purchase the Royalty as follows:

	
  

	
(a)

	
up until September 15, 2017, CCS may purchase one (1) NSR Royalty percentage point and reduce the Royalty to 1.0% NSR by paying the Vendor $250,000, provided that any payments made by CCS to the Vendor pursuant to paragraphs 3.1(a) and 3.2(a) shall be credited to and form part of the $250,000 purchase price; and

 

 

 

  

A - 7

  

 

 

 

	
  

	
(b)

	
CCS may purchase the entire Royalty (2% NSR) at any time prior to September 15, 2014 by paying the Vendor the $750,000. If the $500,000 payment for purchase of the 1% NSR seen in 9.4 (a) has been made previously, the payment due in 9.4 (b) will be reduced by $500,000. The payment will also be reduced by cumulative Advance Royalty payments.

	
9.5

	
All cash payments made by CCS to the Vendor pursuant to paragraphs 3.1(a) and 3.2(a) shall be treated as advance Royalty payments and shall be credited against and deducted from actual Royalty payments as they become due until such time as CCS has received credit for the full amount of such advance Royalty payments.

	
10.

	
OBLIGATIONS OF CCS AFTER TERMINATION

	
10.1

	
In the event of the termination of the Option, CCS will:

	
  

	
(a)

	
leave the Property in good standing for a minimum of one (1) year under all applicable legislation, free and clear of all liens, charges and encumbrances arising from this Agreement or their operations hereunder and in a safe and orderly condition;

	
  

	
(b)

	
deliver to the Vendor within 90 days of their written request a comprehensive report on all work carried out by CCS on the Property (limited to factual matter only) together with copies of all maps, drill logs, assay results and other technical data compiled by CCS with respect to the Property;

	
  

	
(c)

	
have the right, and obligation on demand made by the Vendor, to remove from the Property within six (6) months of the effective date of termination all facilities erected, installed or brought upon the Property by or at the instance of CCS provided that at the option of the Vendor, any or all of facilities not so removed will become the property of the Vendor; and

	
  

	
(d)

	
deliver to the Vendor a duly executed transfer in registrable form of an undivided 100% right, title and interest in and to the Property in favour of the Vendor, or their nominee.

	
11.

	
REGISTRATION OF AGREEMENT

	
11.1

	
CCS or the Vendor will have the right at any time to register this Agreement or a Memorandum thereof against title to the Property.

	
12.

	
DISPOSITION OF PROPERTY

	
12.1

	
CCS may at any time sell, transfer or otherwise dispose of all or any portion of its interest in and to the Property and this Agreement provided that, at any time, CCS has first obtained the consent in writing of the Vendor, such consent not to be unreasonably withheld and further provided that, at any time during the currency of this Agreement, any purchaser, grantee or transferee of any such interest will have first delivered to the Vendor its agreement related to this Agreement and to the Property, containing:

	
  

	
(a)

	
a covenant with the Vendor by such transferee to perform all the obligations of CCS to be performed under this Agreement in respect of the interest to be acquired by it from CCS, and

 

 

 

 

  

A - 8

  

 

 

	
  

	
(b)

	
a provision subjecting any further sale, transfer or other disposition of such interest in the Property and this Agreement or any portion thereof to the restrictions contained in this Section 12.1.

	
12.2

	
The provisions or Section 12.1 of this Agreement will not prevent CCS from entering into an amalgamation or corporate reorganization which will have the effect in law of the amalgamated or surviving company possessing all the property, rights and interests and being subject to all the debts, liabilities and obligations of each amalgamating or predecessor company.

	
13.

	
ABANDONMENT OF PROPERTY

	
13.l

	
CCS shall have the unfettered right at any time to abandon all or any part of its interest in the Property by delivering a notice in writing of its intention to do so to the Vendor, such notice to list the part or parts of the Property to be abandoned, and if within 90 days of receipt of such notice the Vendor delivers to CCS a notice (“Reacquisition Notice”) stating their intention to reacquire all or part or parts of the Property, CCS will deliver to the Vendor duly executed recordable transfers of its interest in such part or parts of the Property as the Vendor has set forth in the Reacquisition Notice, such part or parts to be in good standing for at least one year beyond the date of delivery of such transfers and to be free and clear of all liens, charges, and encumbrances
arising from the operations of CCS or its agents or subcontractors hereunder.

	
14.

	
CONFIDENTIAL NATURE OF INFORMATION

	
14.1

	
The parties agree that all information obtained from the work carried out hereunder and under the operation of this Agreement will be the exclusive property of the parties and will not be used other than for the activities contemplated hereunder except as required by law or by the rules and regulations of any regulatory authority having jurisdiction, or with the written consent of both parties, such consent not to be unreasonably withheld.  Notwithstanding the foregoing, it is understood and agreed that a party will not be liable to the other party for the fraudulent or negligent disclosure of information by any of its employees, servants or agents, provided that such party has taken reasonable steps to ensure the preservation of the confidential nature of such
information.

15.           AREA OF MUTUAL INTEREST

	
15.1

	
An area of mutual interest located within one (1) mile of the existing exterior boundaries of the Property (defined by claims PB 7, 9, 11, 12, 23, 25, 27,  and 29) is hereby established, (which area is hereinafter called the “AMI”). By signing this Agreement, CCS and the Vendor hereby covenant and agree each with the other that any property interest or mineral rights which may be acquired by either of them located wholly or partially within the AMI shall become a part of the Property and be subject to this Agreement. If either CCS or the Vendor acquires an interest as aforesaid, it shall notify the other in writing of the extent of the interest acquired. The notified party shall have sixty (60) days
following receipt by it of the foregoing notification to elect in writing to have the property or mineral interest included within the terms of this Agreement. If the notified party does not so elect in writing within the sixty (60) day period, the acquiring party shall be entitled to acquire the mineral or property interest for its own account and such interest will not be part of the Property and will not be subject to the terms of this Agreement.

  

A - 9

  

 

 

16.           FURTHER ASSURANCES

	
16.1

	
The parties hereto agree that they and each of them will execute all documents and do all acts and things within their respective powers to carry out and implement the provisions or intent of this Agreement.

	
17.

	
NOTICE

	
17.1

	
Any notice, direction or other instrument required or permitted to be given under this Agreement will be in writing and will be given by the delivery or the same or by mailing the same by prepaid registered or certified mail in each case addressed as follows:

(a)        if to CCS

 

Castle Creek Silver

P.O Box 1227, Wallace,Id 83873

(b)       if to the Vendor

 

3049 Indiana Street

Golden, CO. 80401

Attn:   Robert Ebisch

	
17.2

	
Any notice, direction or other instrument aforesaid will, if delivered, be deemed to have been given and received on the day it was delivered, and if mailed, be deemed to have been given and received on the tenth business day following the day of mailing, except in the event of disruption of the postal services in which event notice will be deemed to be received only when actually received.

	
17.3

	
Any party may at any time give to the other notice in writing of any change of address of the party giving such notice and from and after the giving of such notice, the address or addresses therein specified will be deemed to be the address of such party for the purpose of giving notice hereunder.

	
18.

	
HEADINGS

	
18.1

	
The headings to the respective sections herein will not be deemed part of this Agreement but will be regarded as having been used for convenience only.

19.           DEFAULT

	
19.1

	
If any party (a "Defaulting Party") is in default of any requirement herein set forth, the party affected by such default will give written notice to the defaulting Party specifying the default and the Defaulting Party will not lose any rights under this Agreement, unless within 30 days after the giving of notice of default by the affected party the Defaulting Party has cured the default by the appropriate performance and if the Defaulting Party fails within such period to cure any such default, the affected party will be entitled to seek any remedy it may have on account of such default.

 

 

 

  

A - 10

  

 

 

	
20.

	
PAYMENT

	
20.1

	
All references to monies hereunder will be in United States funds except where otherwise designated.  All payments to be made to any party hereunder will be mailed or delivered to such party at its address for notice purposes as provided herein, or for the account of such party at such bank or banks as such party may designate from time to time by written notice.  Said bank or banks will be deemed the agent of the designating party for the purpose of receiving, collecting and receiving such payment.

	
21.

	
ENUREMENT

	
21.1

	
This Agreement will enure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns.

22.           TERMS

	
22.1

	
The terms and provisions of this Agreement shall be interpreted in accordance with the laws of the state of Idaho.

23.           FORCE MAJEURE

	
23.1

	
No party will be liable for its failure to perform any of its obligations under this Agreement due to a cause beyond its control (except those caused by its own lack of funds) including, but not limited to acts of God, fire, flood, explosion, strikes, lockouts or other industrial disturbances, laws, rules and regulations or orders of any duly constituted governmental authority or non-availability of materials or transportation (each an "Intervening Event").

	
23.2

	
All time limits imposed by this Agreement, other than those imposed by Section 5, will be extended by a period equivalent to the period of delay resulting from an Intervening Event described in Section 23.1.

	
23.3

	
A party relying on the provisions of Section 23.1 will take all reasonable steps to eliminate an Intervening Event and, if possible, will perform its obligations under this Agreement as far as practical, but nothing herein will require such party to settle or adjust any labour dispute or to question or to test the validity of any law, rule, regulation or order of any duly constituted governmental authority or to complete its obligations under this Agreement if an Intervening Event renders completion impossible.

24.           ENTIRE AGREEMENT

	
24.1

	
This Agreement constitutes the entire agreement between the parties and replaces and supersedes all prior agreements, memoranda, correspondence, communications, negotiations and representations, whether verbal or written, express or implied, statutory or otherwise between the parties with respect to the subject matter herein.

 

 

 

  

A - 11

  

 

25.           OPTION ONLY

	
25.1

	
This Agreement provides for an option only, and except for the initial cash payment of $2,500 set out in paragraphs 3.1(a)(i) hereof ( which is a firm commitment), nothing herein contained shall be construed as obligating CCS to do any acts or make any payment hereunder and any act or acts or payment or payments as shall be made hereunder shall not be construed as obligating CCS to do any further act or make any further payment.

	
26.

	
CONDITION PRECEDENT

26.1        The obligations of CCS under this Agreement are first subject to company approval

	
27.

	
TIME OF ESSENCE

27.1         Time will be of the essence in this Agreement.

 

 

 

 

THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK

 

 

 

  

A - 12

  

 

 

 

	
28.

	
ENFORCEMENT OF AGREEMENT

	
28.1

	
The covenants, promises, terms and conditions contained herein will be binding upon the parties jointly and severally and may be enforced by each as against each others interest

 

IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year first above written.

 

	
Signed, sealed and delivered by

Robert Ebisch in the presence of:

 

____________________________________

Name of Witness

 

____________________________________

Address of Witness

 

____________________________________

Date

 

 

 

	
)

)

)

)

)

)

)

)

)

)

)

	
 

 

 

 

 /s/ ROBERT EBISCH                                        

      ROBERT EBISCH

 

	
CCS

 

/s/ Camilo Velasquez                                              

      Camilo Velasquez

Authorized                                              Signatory

 

 

____________________________________

Authorized                                              Signatory

	
)

)

)

)

)

)

)

)

)

)

	
 

 

 

 

c/s

 

 

 

 

  

A - 13

  

 

EXHIBIT B

The following are a description of the mineral claims for which an option to acquire Vendor’s undivided 100% of the right, title and interest in such mineral claims, all of which are situated in Owyhee County, Idaho, have been transferred and assigned to Assignee by way of an assignment of all of Assignor’s right, title and interest, in, to and under the Option Agreement.

	
Title Number

	
Status

	
Titleholder

	
% Ownership

	
196852

	
Current

	
Robert Ebisch

	
100%

	
196854

	
Current

	
Robert Ebisch

	
100%

	
196856

	
Current

	
Robert Ebisch

	
100%

	
196857

	
Current

	
Robert Ebisch

	
100%

	
196866

	
Current

	
Robert Ebisch

	
100%

	
196867

	
Current

	
Robert Ebisch

	
100%

	
196868

	
Current

	
Robert Ebisch

	
100%

	
196869

	
Current

	
Robert Ebusch

	
100%

 

 

 

 

  

B - 1December 6, 2011 Exhibit 10.1

                    Exhibit 10.1 

  Technology License, Marketing & Collaboration Agreement 

 

                            CTI Nano Reactor System 

                              

                             CONFIDENTIAL 
   

               TECHNOLOGY LICENSE, MARKETING & COLLABORATION 

                                   AGREEMENT    
 

                                   Between 

                           CAVITATION TECHNOLOGIES, INC. 

                                         and  

                           N.V. DESMET BALLESTRA GROUP S.A. 
 

November 1, 2010
 

 

 

  Technology License, Marketing & Collaboration Agreement 

TECHNOLOGY LICENSE, MARKETING 

                  & COLLABORATION AGREEMENT

This TECHNOLOGY LICENSE, MARKETING & COLLABORATION AGREEMENT
("Agreement"), dated and made effective as of November 1, 2010 ("Effective Date"), is
entered into 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 as a "Party" or collectively as the "Parties"). 

P R E A M B L E

A.  Licensor has developed and owns the CTI Nano Reactor System (the "CTI
System"), a proprietary nano-cavitation reactor system comprised of equipment designed and manufactured to Licensor's
specifications and associated proprietary technology that may be used in the Nano NeutralizationTM process and in other oils and
fats related applications in the Field of Vegetable Oil Processing; 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 ("Facilities") and has been granted, subject
only to the limitations and reservations contained herein, an exclusive, non-transferable license to (1) market the CTI System anywhere
in the world (the "Licensed Territory") for and as to any use, application or process within the Field of Vegetable Oil
Processing, (2) incorporate the CTI System into Licensee's process design package(s) for Facilities, and (3) design and construct Nano
Reactor Units for the purpose of installing or integrating them into Facilities located within the Licensed Territory.  

C.  Licensor and Licensee have previously entered into the Marketing & Technology License Agreement
dated January 15, 2010 and desire to mutually cancel such agreement and to replace and supersede it in its entirety by entering into
this Agreement;

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

ARTICLE I  

                  DEFINITIONS & INTERPRETATION

1.01  Defined Terms.  Capitalized terms used in this Agreement shall, unless otherwise
defined in the text of this Agreement or the context shall otherwise require, have the meanings and definitions ascribed to them as set
forth in Schedule 1.01 hereto.

1.02  General Terms and Conditions.  The provisions contained in this Agreement shall be
supplemented by the General Terms and Conditions set forth in Schedule 1.02 hereto.  

1.03  Interpretation.  Defined terms in this Agreement shall apply equally to both their singular
and plural forms; references to a designated "Article" or "Section" refers to an Article or Section of this
Agreement, unless otherwise indicated; references to a designated "Schedule" or "Exhibit" refers to a Schedule
or Exhibit of this Agreement, unless otherwise indicated; and "including' is used only to indicate examples, without limitation to the
indicated samples and without limiting any generality which precedes it.   

                                    Page 1 of 13

  Technology License, Marketing & Collaboration Agreement 

ARTICLE II

                    LICENSOR GRANTS 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 use the Licensor Patent Rights and Licensor Technical
Information to:

(1)  Market, design, construct and install Nano Reactor Units utilizing or deploying the Licensed Technology at
Facilities located anywhere in the Licensed Territory and that are owned or operated by Site Users that have executed Site User
Licenses with Licensor and that will operate such Units for the purpose of conducting Nano NeutralizationTM at the Facility and/or
other proprietary processes and applications that Licensor and Licensee may make available to Facilities from time to time, in each
case limited to the Field of Vegetable Oil Processing.  

(2) Incorporate the CTI System into Licensee's process design packages for Facilities to facilitate Licensee's
design, fabrication, construction and installation or integration of Nano Reactor Units at Facilities located anywhere in the Licensed
Territory; and

(3)  Assist Site Users in the inspection, installation, testing, startup, operation and maintenance of Nano Reactor
Units located at the Facilities, including the procurement and supply of approved components and parts for such Units, under the terms
of this Agreement and each Site User License.

(b)  Subject to the terms and conditions of this Agreement, Licensor grants to Licensee a limited, exclusive, non-
transferable license and right, to the exclusion of all Persons other than Licensor, to use the Licensed Technology, working on a
collaborative basis with Licensor, in conducting research and in developing (1) Inventions or Improvements, and (2) new or additional
devices, processes or applications, in each case limited to within the Field of Vegetable Oil Processing.   

 2.02  Limitations; Reservations.  (a)  The rights and license granted to Licensee in this
Agreement shall be limited to designing, fabricating, constructing, assembling, installing and maintaining Nano Reactor Units that (1)
are operated and maintained under the terms of Site User Licenses issued by Licensor that grant Site Users the right to use the
Licensed Technology in operating and maintaining such Units; (2) are installed at and operated in conjunction with Facilities located
within the Licensed Territory; and (3) are operated solely for purposes and using applications and processes within the Field of
Vegetable Oil Processing and for no other purpose or in any of field of use.

(b)  Licensor hereby reserves the right, subject to the right of grant in Section 2.01(b), to practice the Licensed
Technology in conducting research and development with respect to (1) Inventions or Improvements, and (2) new or additional devices,
processes and applications both within and outside the Field of Vegetable Oil Processing.    

(c) Notwithstanding anything to the contrary in this Agreement, Licensor reserves and hereby excludes
from the license and rights granted to Licensee herein:

(1)  The right to design, make and manufacture, or have manufactured by other Persons, each of the
Licensed Reactors required by Licensee for each Nano Reactor Unit and to supply all such Reactors to Licensee directly or acting on
behalf of each Site User; 

(2) The right to practice the Licensed Technology in any and all fields of use other than the Field of

                                    Page 2 of 13

  Technology License, Marketing & Collaboration Agreement 

engage in research and Vegetable Oil Processing, including the right to make, use, assign or sell the Licensed Technology, to
development, and to license to any Person the right to design, manufacture, construct, install, operate, sell, sublicense, lease or
otherwise market the CTI System, or any Nano Reactor Unit or Licensed Reactor, for any purpose, application or process outside the
Field of Vegetable Oil Processing and under terms and conditions as Licensor shall determine in its sole discretion. 

2.03  Limitations; Prohibitions.  The rights and license granted to Licensor in Section 2.01
shall not include, and License shall have no right or authority to, (a) practice, use or deploy the Licensed Technology in any manner
inconsistent with the rights and license granted to Licensee in Section 2.01 or in other provision of this Agreement, (b) transfer,
distribute, disclose or make available the Licensed Technology to any Person, whether by assignment, sublicense or otherwise, or
allow any Person access to the Licensed Technology except as authorized herein, (c) copy, adapt, reverse engineer, decompile,
disassemble or modify, in whole or in part, any Nano Reactor Unit or Licensed Reactor, or the Licensed Technology, or use any of them
in any way to create derivative works, or (d) publish, disclose, copy or reproduce the Confidential Information for any purpose except as
authorized in this Agreement or the Secrecy & Non-Disclosure Agreement.

2.04  Pre-Existing Licenses; Arrangements.  The Parties acknowledge that they, or either
of them, have entered into pilot test agreements, site user licenses and equipment leases that authorize Site Users to operate Nano
Reactor Units at their Facilities for specified purposes, and to use the Licensed Technology in connection therewith, as described in
Schedule 2.04 hereto.  All such agreements, user licenses and leases shall be subject to the terms of this Agreement, with
such modifications as the Parties may agree upon in writing.    

2.05  Extension to Licensee's Affiliates.  Licensor hereby authorizes Licensee to extend
to its Affiliates all of the rights of Licensee under this Agreement, provided that Licensee, in a writing substantially in the form of
Schedule 2.05 hereto, promptly notifies Licensor of any such extension and each such Affiliate agrees to observe and be bound by all
of the obligations of Licensee under this Agreement.   

ARTICLE III  

                    LICENSED REACTORS & OTHER COMPONENTS 

3.01  Reactor Requirements; Supply; Ownership.  (a) Each Licensed Reactor required for a
Nano Reactor Unit designed and constructed by Licensee under this Agreement shall be supplied by Licensor.  Each Reactor shall be
designed and manufactured in accordance with Licensor's specifications.  Licensor shall retain the full and unlimited right to practice the
Licensed Technology in connection with the design, manufacture and supply of Reactors ordered by Licensee under the terms of this
Agreement.   

(b)  Licensor agrees to supply to Licensee or the designated Site User each Reactor required by Licensee
hereunder.  Each Reactor shall be supplied on a licensed use basis as contemplated by this Agreement and as specified in the
applicable Site User License.  Subject to the user license granted to each Site User under the Site User License, the sole and exclusive
ownership of all Licensed Reactors shall remain with Licensor at all times.             

3.02  Reactor Orders; Components.  (a) Each order placed by Licensee for Licensed
Reactors shall be substantially in the form of the purchase order in Exhibit A hereto (each a "Purchase
Order").  Each Purchase Order shall include (1) the model and quantity of the Reactor(s) being ordered, together with a
description of any other any other components and parts requested by Licensee; and (2) the name and address of the Site User and
the Facility at which the Unit containing the Reactor(s) will be delivered, installed and operated.  

                                    Page 3 of 13

  Technology License, Marketing & Collaboration Agreement 

(b)  Licensee shall submit a single Purchase Order for the Reactor(s) and other equipment or components
that will be incorporated or integrated into each Nano Reactor Unit.  Each Purchase Order shall be subject to Licensor's acceptance.

3.03  Delivery of Reactor(s).  Licensed Reactors ordered by Licensee shall be shipped
and delivered, at Licensor's cost, to Licensee or the Site User within ninety (90) days after Licensor receives (a) a Purchase Order
signed by Licensee and accepted by Licensor, (b) a Site User License executed by Site User, and (c) payment of the License Fees for
the Reactor(s), together with payment for other equipment or components, as specified in Purchase Order(s).           

3.04  Prohibited Uses.  (a)  Licensee will not, without Licensor's prior written consent, (1)
modify or alter any Licensed Reactor or affix or install any accessory, equipment or device thereon (other than in accordance with
Licensor's specifications), (2) modify or alter the configuration or performance of any Reactor, (3) attempt to "reverse
engineer" the proprietary design, configuration or technology for or in any Reactor, or (4) tamper with, modify or alter the security
seal affixed to each Reactor.  Without Licensor's prior written consent, any removal, export or relocation of any Licensed Reactor after
being integrated into a Nano Reactor Unit installed at a Facility is prohibited.  Similar restrictions shall be included in each Site User
License.  

(b) Violations of the provisions of this Section 3.04 shall constitute a "material default" under this
Agreement (and the Site User License) and shall constitute grounds for termination.  Violation of this Section 3.04 as to any Licensed
Reactor shall void all Licensor warranties with respect to such Reactor and may violate the laws, rules and regulations of the United
States and/ or other jurisdiction in which the Reactor is located.

3.05  Maintenance; Return.  (a) Each Site User License shall require the Site User to
maintain and protect, under the terms of each such user license, each of the Licensed Reactors included in any Nano Reactor Unit
installed at a Facility owned or operated by such Site User.  Each Site User shall bear the risk of loss (from any cause whatsoever) of
each Licensed Reactor from and after the date on which Licensor delivers the Reactor to Licensee or such Site User at the Facility or
other located designated by Licensee in the Purchase Order.    

(b) Upon permanent shut-down of any Nano Reactor Unit or termination of a Site User Agreement,  the Site
User, at its cost, shall be required, under the terms of the Site User License, to deliver or return to Licensor each Licensed Reactor in
substantially the same condition and working order, excepting normal wear and tear, as it was in when originally delivered by Licensor
under this Agreement.    

ARTICLE IV

                    USER LICENSES; INSTALLATION & STARTUP; MAINTENANCE 

4.01  Site User License Requirements.  Notwithstanding anything to the contrary in this
Agreement, neither Licensee nor any Site User (or any other Person) shall have any license or right to operate and maintain any Nano
Reactor Unit or any Licensed Reactor, or to use the Licensed Technology in connection therewith, except under and pursuant to the
terms of a Site User License issued by Licensor.  Accordingly, upon delivery of any Purchase Order to Licensor as provided in Section
3.02, Licensee will arrange for the Site User to execute and deliver to Licensor a Site User License in substantially the form of
Exhibit B hereto or in such other form as may be agreed upon by Licensor and Site User.    

                                    Page 4 of 13

  Technology License, Marketing & Collaboration Agreement 

4.02  Installation; Startup.  Upon delivery of each Nano Reactor Unit at a Facility and
prior to testing or startup, Licensee shall require that each Site User shall examine the Unit to determine its physical condition and
operational status and its conformity to Licensee's Process Design Package.  Licensee and Site User shall then conduct such testing of
the Unit as may be required to determine that it is operational and functional.  Licensee shall give Licensor at least seven (7) days
advance notice of the scheduled delivery, inspection and testing of each Unit to provide Licensor an opportunity to participate in such
inspection and testing. 

4.03  Quality Control; Documentation.  (a) Licensee shall require that each Site User
diligently adhere to any procedures, instructions, specifications and guidelines established by Licensee with respect to installation and
operation of each Nano Reactor Unit or contained in Documentation developed or prepared by Licensor and Licensee on a joint basis.
Licensee shall deliver the Documentation to each Site User prior to or at the time of handover of each Unit to the Site User.   

(b)  Upon Licensor's request from time to time, Licensee shall deliver to Licensor suggested or proposed
revisions to the Documentation.  Any proposed changes, modifications or revisions to the Documentation shall require Licensor's
consent before being implemented or adopted.        

4.04  Maintenance of Units/Components.  Each Site User shall be required to maintain,
at its expense, each Nano Reactor 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 Unit, together with the Licensed
Reactors and other components and parts, shall be kept, used and stored in secure facilities until they are delivered and installed at the
Facility designated in the Site User License. 

ARTICLE V

                    TECHNICAL ASSISTANCE AND SUPPORT

5.01  Scope of Services.  During the term of this Agreement, Licensor shall provide to
Licensee, at the rates specified in Exhibit C hereto, any consultation, technical assistance and support services that Licensee
may reasonably request, whether by telephone, written communications or in person, in (a) developing or revising any Process Design
Package and any design or detailed engineering required for the CTI System or any Nano Reactor Unit, (b) the installation, operation or
maintenance of any Unit or any associated problems, and (c) providing training to Representatives of Licensee or any Site User.  

5.02  Inspection; Training.  Licensee agrees to arrange for Site Users to give Licensor
and its Representatives access to Nano Reactor Units installed at Facilities for inspection and for the purpose of training the
Representatives of Licensee or any Site User.  All expenses of Representatives of Licensee or any Site User in attending training
sessions provided by Licensor shall be the responsibility of Licensee or such Site User, as the case may be.  Expenses of Licensor's
Representatives engaged in training conducted away from Licensor's offices, including airfare, meals and lodging, shall be paid to
Licensor in advance or promptly reimbursed to Licensor upon request. 

ARTICLE VI

                    INVENTIONS & IMPROVEMENTS 

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

                                    Page 5 of 13

  Technology License, Marketing & Collaboration Agreement 

6.02 Licensee Inventions or Improvements.  (a) Licensee agrees to disclose promptly to
Licensor all Inventions or Improvements invented, discovered, conceived or developed by Licensee, whether or not such Invention or
Improvement is in a stage of development potentially suitable for evaluation, testing or commercial use.  Licensee shall permit Licensor
and 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 invent, make, discover, conceive or develop any patentable Invention or Improvement,
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 to take such other steps that may be required or necessary, in its sole judgment, 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-day period,
Licensee shall be entitled, at its option and at its own expense, to proceed to prepare and file any such patent application, provided that
(1) 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 (2) any resulting patent 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.   

6.03  Ownership; Grant of License.  (a)  Except with respect to any Invention or
Improvement that is co-owned by the Parties as provided in Section 6.02(b), Licensor shall, at all times, have full 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 Processing, be included within the scope of the rights and
license 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 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
Representatives to take all actions and execute all documents as are necessary or appropriate to carry out the provisions of this Article
VI and shall assist Licensor in preparing, filing, prosecuting and assigning patents, patent applications, copyrights, trademarks and
other intellectual property rights and in otherwise securing their protection. 

ARTICLE VII

                    INTELLECTUAL PROPERTY, OWNERSHIP & PATENT FILINGS 

7.01  Ownership of Intellectual Property.  (a) All patents, patent applications, copyrights,
trade secrets and other intellectual property rights in or relating to the CTI System, any Nano Reactor Unit or any Licensed Reactor, or
in or relating to the Licensed Technology, in all languages, formats and media throughout the world, are and shall remain the sole and
exclusive property of Licensor, including (1) the Licensor Primary Patents, Licensor Patent Rights, and Licensor Technical Information,
(2) all Inventions or Improvements except as provided in Section 6.02(b), and (3) each Process Design Package and any detailed
engineering design and any document contained therein or considered a part thereof, and any Drawings, whether in print, digital or
other form, showing the design, configuration and/or engineering of any Nano Reactor Unit (including the Pilot Plant) or any Licensed
Reactor, in each case prepared or developed individually or jointly by Licensor or Licensee, or any of their respective Representatives,
and (4)  the Licensed Technology; provided, however, the Parties acknowledge and agree that any document

                                    Page 6 of 13

  Technology License, Marketing & Collaboration Agreement 

and any engineering data prepared or developed by Licensee to integrate the CTI System or any Nano Reactor Unit into any Facility shall
be the sole and exclusive property of Licensee.   

(b)  Nothing in this Agreement shall be construed or interpreted as assigning or transferring to Licensee or any other Person
any portion or aspect of Licensor's ownership rights (including intellectual property rights) in the properties specified or described
herein.

7.02  Additional Patent Filings.   In the event that Licensee receives orders for Nano
Reactor Units that will be delivered, installed and operated in countries or jurisdictions other than the United States, Licensee shall
consult with Licensor to determine whether Licensor has filed patent applications or obtained patents with respect to the CTI System
and the Licensed Technology that will provide adequate protection to Licensor in each such country or jurisdiction.  Licensor shall be
responsible for all of the fees and related costs incurred in preparing, filing and prosecuting any such patents or patent applications,
including filing fees, costs and attorneys' fees.       

ARTICLE VIII  

                    LICENSE FEES, PAYMENTS & ROYALTIES

8.01  License Fees; Component Prices.  (a) Under the terms of this Agreement and each
Site User License, Licensor shall charge, and Licensee shall pay to Licensor as provided herein (1) a license fee ("License
Fee") for each Licensed Reactor ordered by Licensee and supplied by Licensor for integration into a Nano Reactor Unit, and
(2) the applicable price ("Price") for each item of equipment, components and parts (other than Reactors) ordered
from Licensor.  License Fees for the Reactors supplied under the terms of this Agreement shall be as follows:

(1)  Nano NeutralizationTM Process.  For Reactors that will be integrated into installations of
the Nano NeutralizationTM process at a Facility, the License Fee will be a fixed amount based on the throughput capacity of each
Reactor as shown in Exhibit D hereto; and

(2)  Other Applications/Processes.  For Reactors that will be integrated into Nano Reactor Units
installed at Facilities for Other Applications, or any installation of the Nano NeutralizationTM process in conjunction with Other
Applications, the License Fees will be established by Licensor upon receipt of each order.      

(b) Licensor shall be entitled, subject to Licensee's acceptance, to revise and modify its Prices for
equipment, components and parts (other than Reactors) that may be ordered by Licensee under the terms of this Agreement.        

8.02  Performance-Based Royalties.  (a)  Under the terms of each Site User Agreement,
Licensor shall receive a Performance-Based Royalty for the use of the Licensed Technology by each Site User in connection with each
Nano Reactor Unit designed, constructed and marketed by Licensee hereunder.  Except as otherwise agreed, the Royalty in each case
shall be a fixed monthly payment (each a "Monthly Royalty") determined pursuant to the terms of a performance
model developed by the Parties for each application or process for which the Licensed Technology shall be installed or deployed at a
Facility.  In each case, the Monthly Royalty payable under the Site User Agreement shall be based on the performance of each Unit
and/or the net increase in value or savings generated by the use or deployment of the Licensed Technology at each Facility.    

(1)  Nano NeutralizationTM.  For installations of the Nano NeutralizationTM process, the
amount of the Monthly Royalty shall equal forty percent (40%) of the Established Savings calculated from data

                                    Page 7 of 13

  Technology License, Marketing & Collaboration Agreement 

generated during a
performance test conducted within fourteen (14) days after installation of each Unit at a Facility.  The procedures and criteria for
conducting the performance test and in calculating the Established Savings and the Monthly Royalty for each Facility using or deploying
Nano NeutralizationTM are set forth in model entitled "Performance-Based Royalty Model - Nano NeutralizationTM
Process" attached as Exhibit E hereto.  

(2)  Other Applications/Processes.  For installations of the Licensed Technology for other
proprietary applications or processes, the Parties will develop a model or models for determining the Royalty that will be paid under Site
User Licenses.  Unless otherwise agreed, each such model will include (i) procedures and criteria for evaluating the performance of the
Licensed Technology in each Unit installed at or integrated into a Facility, and (ii) a methodology for determining the Monthly Royalty
under each Site User License utilizing data generated during a Performance Test conducted after installation of each Unit at a Facility.

(b)  Once the Performance-Based Royalty for the use or application of the Licensed Technology has been
determined, Licensor and the Site User will execute a written addendum ("Royalty Addendum") to the Site User
License that confirms the effective date thereof and the amount of the Monthly Royalty that will be paid by Site User during the Primary
Term of the Site User License.  Unless otherwise agreed, in the event that a Site User elects to exercise any renewal option under a
Site User License, the Monthly Royalty shall be redetermined at the beginning of each extension or renewal term using the procedures
and criteria contained in the Performance-Based Royalty Model applicable to the Site User License.  Each Monthly Royalty that is
redetermined at the beginning of any renewal term under a Site User License shall be confirmed by Licensor and Site User by
execution of a Royalty Addendum.          

8.03  Fees & Payments; Licensee.  As consideration for the services rendered
by Licensee pursuant to the rights and license granted under this Agreement, Licensor agrees to remit to Licensee fifteen percent
(15%) of the Monthly Royalty received by Licensor under each Site User License.  All such payments shall be made to Licensee within
thirty (30) days after Licensor's receipt of each payment.                           

8.04  Pilot Test Units; Costs.  (a)  For orders of Licensed Reactors that Licensee intends to
integrate into Nano Reactor Units installed at Facilities for the purpose of pilot  testing and evaluation (each a "Pilot Test
Unit"), Licensee will, at the time it delivers a Purchase Order to Licensor for such Reactors, pay Licensor fifty percent (50%)
of the License Fees owed for such Reactors and the Parties shall initially share equally, on a 50-50 basis, all other costs associated
with the manufacture, shipment, installation and testing of each such Unit, including the cost of returning the Reactors to Licensor if the
Site User elects not to retain the Unit.  The initial payment of License Fees to Licensor for Reactors ordered for Pilot Test Units shall be
non-refundable, with the balance owed for the Reactors, and reimbursement or repayment to Licensor of the amount initially contributed
to the manufacturing and installation costs for each Pilot Test Unit, paid to Licensor as provided below.  Licensor will deliver the
Reactors to Licensee within ninety (90) days after receiving the initial payment of License Fees.     

(b)  For each Pilot Test Unit installed at a Facility, Licensor shall transmit a temporary site user license to
Licensee, which must be executed by the Site User and returned to Licensor prior to delivery of the Reactors to Licensee.  No Royalty
shall accrue as a result of the operation of any Pilot Test Unit.  

(c)  If a Site User receiving a Pilot Test Unit elects to retain the Unit after completion of the pilot test period,
Licensee shall so notify Licensor and Licensor will forward to Licensee a Site User License for execution and return by Site User.  Upon
Licensor receiving an executed Site User License, Licensee shall immediately pay, remit and reimburse to Licensor (1) the balance of
License Fees owed for the Reactors integrated into such Unit, and (2) the full amount of any manufacturing and installation costs

                                    Page 8 of 13

  Technology License, Marketing & Collaboration Agreement 

initially paid by Licensor for such Unit.  If the Site User receiving a Pilot Test Unit elects not to retain the Unit, Licensee shall remain the
owner of the Unit and shall retain custody of the Reactors until the Unit is placed with a different Site User.

    8.05  Payment Procedure.  All fees and other amounts payable by Licensee to Licensor, or
by Licensor to Licensee, under this Agreement shall be (a) exclusive of sales, use or value added taxes (VAT) or the equivalent, ad
valorem, personal property and other taxes, all of which shall be the responsibility of Licensee or Site User, as the case may be, (b)
paid without notice, demand, counterclaim, setoff, deduction, abatement, or proration by reason of any circumstance or occurrence, and
(c) paid in immediately available U.S. Dollars, either in cash or by wire transfer to an account in the recipient's name at a bank or
banking institution as it may specify from time to time. 

ARTICLE IX  

                   ASSIGNMENTS AND TRANSFERS

9.01  General Prohibition.  During the term of this Agreement, except as provided in
Section 9.02, neither Party shall be entitled to convey, transfer, sell, encumber or otherwise assign to any Person, without the prior
written consent of the other Party, this Agreement or any interest therein.  Any attempted assignment or transfer of this Agreement by a
Party, except in accordance with Section 9.02, shall be null and void.       

9.02  Permitted Transfers.  Notwithstanding the provisions of Section 9.01, either Party may
assign or transfer the entirety of its rights and interests under this Agreement to any Person that acquires the transferring Party,
whether by merger, consolidation, or the acquisition of all or substantially all of the transferring Party's assets, common stock or other
ownership or equity interests, provided that (1) the transferring Party first notifies the other Party in writing of the proposed assignment
or transfer and includes in the notice the name and address of the acquiring Person and a brief description of the acquisition; (2) the
transferring Party and the acquiring Person execute an assignment instrument in which the acquiring Person expressly assumes all of
the transferring Party's obligations under this Agreement, and (3) a copy of the fully-executed assignment instrument is provided to the
non-transferring Party.    

ARTICLE X

                   DURATION AND TERMINATION

10.01Term; Duration.  (a)  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") unless a Party elects, during any Renewal Term, to
terminate this Agreement by giving written notice to the other Party at least six (6) months prior to the date on which such termination
shall become effective.    

(b)  The exclusive nature of the rights and license granted to Licensee under Section 2.01 is based on the
assumption that Licensee will market and install at Facilities a minimum of (1) ten (10) Nano Reactor Units during the first year of the
Primary Term, and (2) twenty (20) Units during each subsequent year of the Primary Term (in each such year the "Minimum
Annual Units").  Should Licensee fail to complete the placement, installation or integration of the Minimum Annual Units at
Facilities during any year of the Primary Term, Licensor shall have the right, by written notice to Licensee, to convert the exclusive
rights and license granted to Licensee under Section 2.01 to a non-exclusive license and right during the remaining term of this
Agreement.  

                                    Page 9 of 13

  Technology License, Marketing & Collaboration Agreement 

10.02  Termination for Material Default.  (a) Upon written notice from Licensor to
Licensee of any material default under this Agreement, the Parties shall attempt to resolve any differences between them and to cure
any such default that existing under this Agreement.  If a material default continues for a period of ninety (90) days following Licensor's
notice of such default without being cured or corrected, Licensor may, upon written notice to Licensee, terminate this Agreement.  

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

10.03  Effect of Expiration/Termination.  Termination of this Agreement under this Article
X or otherwise shall not (a) relieve Licensee of its obligations to account for and pay all amounts due Licensor under this Agreement;
(b) affect any rights granted to Site Users that are in compliance with the terms of Site User Licenses in effect as of the date of any
such termination, and (c) affect Licensor's right to receive Royalties paid by Site Users or Licensee's right to a specified percentage of
such Royalties as provided in Section 8.03.

ARTICLE XI

                   CONFIDENTIALITY AND NON-DISCLOSURE

11.01  Confidentiality; 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 in accordance with the Secrecy & Non-
Disclosure Agreement.     

ARTICLE XII

                   USE OF NAMES, MARKS AND LOGOS

12.01  Licensor's Name, Marks and Logos.  (a)
Subject to Section 12.01(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 CTI System or any Nano Reactor Unit.  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 prepared or used by Licensee that use Licensor's
name, marks or logos to describe the CTI System or any Nano Reactor Unit must be approved in writing by Licensor before their use or
distribution.  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 without Licensor's prior approval.

12.02  Licensee's Name, Marks and Logos.  (a)  Subject
to Section 12.02(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 CTI System or any Nano Reactor Unit.  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 prepared or used by Licensor that use Licensee's
name, marks or logos to describe the CTI System or any Nano Reactor Unit must be approved in writing by Licensee before their use
or distribution.  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.

                                    Page 10 of 13

  Technology License, Marketing & Collaboration Agreement 

12.03  Branding Requirement.  (a) Either Party may
request to have displayed on each Nano Reactor Unit designed, constructed and marketed by Licensee under the terms of this
Agreement, either directly on the Unit or in a sign or other display that is permanently affixed thereto, the following:

	
(DB Logo)

                  	
  
	
(CTI Logo)

                  
	
  

                  	

Proprietary Design/Technology 

Licensed to 

n.v. DESMET BALLESTRA GROUP s.a.  

          by 

Cavitation Technologies, Inc.

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 branding format illustrated above, each of which shall require the final
approval of both Parties.    

(c) Any proposed use, presentation or publication by the Parties, or either of them, of a "co-branded"
format, platform or medium for any Nano Reactor 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. 

ARTICLE XIII

                   NOTICES

13.01  Notices.  All notices and other communications required under this Agreement
shall be in writing and shall be given to a Party at the address or facsimile number specified below or such other address or number as
such Party shall at any time specify by like notice to the other Party.  Each such notice or other communication shall be effective (i) if
given by facsimile, if at the time such facsimile is transmitted an appropriate confirmation of receipt is received, (ii) if given by U.S.
postal service or by private courier service, upon receipt of such delivery, (iii) if given by electronic mail, upon delivery if the sending
Party retains evidence of such transmission, or (iv) if given by hand delivery, upon receipt of such delivery, in each case addressed as
set forth below:  

(a)  If to Licensor: 

Cavitation Technologies, Inc.

   10019 Canoga Avenue

   Chatsworth, California  91311  USA 

   Telephone:  (818) 718-0905 

   Telefax: (818) 718-1176 

   Attn:  Roman Gordon, Chief Executive Officer 

   Email:  romangordon@cavitationtechnologies.com  

(b)  If to Licensee:

n.v. Desmet Ballestra Group s.a.

                                    Page 11 of 13

  Technology License, Marketing & Collaboration Agreement 

Minervastraat, 1 - B-1930

   Zaventem, Belgium

   Telephone:  +32.2.716.11.11

   Telefax:  +32 2 716 11 09

   Attn:  Marc d'Udekem, Chief Executive Officer

   Email:  mdu@desmetballestra.com  

ARTICLE XIV

                   CONTENT OF AGREEMENT; SCHEDULES & EXHIBITS

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

Schedule 1.01Definitions

Schedule 1.02General Terms and Conditions

Schedule 2.04Pre-Existing Pilot Agreements, User Licenses & Leases 

Schedule 2.05   Notice of Extension of Agreement to Affiliates 

Exhibit AForm of Purchase Order

Exhibit BForm of Site User License

Exhibit CLicensor's Technical Assistance - Rates

Exhibit DLicense Fees and Component Pricing

Exhibit EPerformance-Based Royalty Model-Nano NeutralizationTM

(b) The Schedules and Exhibits listed above and attached hereto are incorporated herein 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) below. 

CAVITATION TECHNOLOGIES, INC. 

By: /s/Roman Gordon________________________

   Name: Roman Gordon

   Title:    CEO

   Date: November 15, 2010

N.V. DESMET BALLESTRA GROUP S.A.

By: /s/Marc d'Udekem_________________________ 

   Name: Marc d'Udekem

   Title:   CEO

   Date: November 9, 2010

                                    Page 12 of 13

  Technology License, Marketing & Collaboration Agreement 

SCHEDULE 1.01

                   DEFINITIONS

  Technology License, Marketing & Collaboration Agreement 

SCHEDULE 1.01

                   DEFINITIONS

Capitalized terms used in this Agreement, including the preambles and recitals contained therein, shall
(unless the context shall otherwise require in the text of each agreement) 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.  

"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 the performance hereof, 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, 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 the following:

(a) Any (1) formula, pattern, compilation, program, apparatus, device, drawing, schematic, method, technique,
process or data, (2) business plan, model, organization, organizational chart, customer list, asset inventory or corporate governance
record, and (3) business, financial, accounting, economic information and data, in each case that (i) 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 (ii) is the subject of efforts that are reasonable
under the circumstances to maintain its secrecy;

(b)  This Agreement and the terms and conditions contained herein, together with any notices, communications
or correspondence required or given by the Parties thereunder; the Confidentiality Agreement, and each Site User License; 

(c) The Licensor Confidential Information; and

(d)  The Licensee Confidential Information.

"CTI System" has the meaning specified in the Preamble of this Agreement.  

"Dispute" has the meaning specified in Section 5.02 of Schedule 1.02.

                                    Schedule 1.01 - Page 1

  Technology License, Marketing & Collaboration Agreement 

"Documentation" means any user, technical or operating guidelines, manuals or other
documentation for or relating to the CTI System or any Nano Reactor Unit or any component thereof, prepared and made available to
Site Users by Licensee from time to time.  

"Drawings" means the drawings, diagrams, schematics, blueprints, flow charts or sheets,
process data sheets and other documents developed by Licensor or on its behalf, or developed by Licensee pursuant to the rights
granted under this Agreement, depicting or relating in any way to the CTI System, any Nano Reactor Unit or any component thereof, or
any Licensed Reactor.   

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

"Established Savings" means, for the purpose of determining the Monthly Royalty payable by
Site Users using the Nano NeutralizationTM process as provided in Section 8.02(a)(1), the calculated net value increase in oil yield,
chemical savings and energy consumption or savings based on data generated by a Performance Test conducted after installation of
each Unit at a Facility, in each case pursuant to procedures and criteria set forth in the Performance-Based Royalty Model for Nano
NeutralizationTM.  The "Established Savings" calculated for each Unit shall be an agreed upon fixed amount that is
used to determine the Monthly Payment payable under each Site User License.

"Facility" means any plant or facility located at a geographic site or location within the
Licensed Territory and designed, constructed and operated for the purpose extracting, processing or refining Vegetable Oil or in
conducting or performing any of the processes, methods or technologies used or deployed in the Field of Vegetable Oil Processing.

"Field of Vegetable Oil Processing" means the mechanical, chemical, physical and other
processes, methods and technologies involved or deployed in (a) the preparation, extraction, processing and/or refining of natural
(crude) oils derived from plants (principally vegetables, fruits, seeds and nuts), animal fats and other organic materials (excluding crude
oil and other hydrocarbon based oils, minerals and substances) to produce Vegetable Oil that may be used for human consumption,
medicinal purposes, animal feeds and various technical applications, (b) preventing, reducing, treating, controlling and/or remediating
waste characteristics, effluent levels and other environmental conditions that may exist or occur in connection therewith.  

"Inventions or Improvements" means any patentable or non-patentable invention, discovery,
technology and information of any type whatsoever, including processes, methods, formulae, compositions, devices, operating
techniques, technical information, knowledge, experience, improvements, modifications, enhancements and know-how relating to,
based upon or being derived from the CTI System and/or the Licensed Technology, or any part or aspect thereof, or the design,
fabrication, construction, maintenance or operation of any Nano Reactor Unit or the use, practice or commercialization of the Licensed
Technology or in making or producing any product, substance or material 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.  The term "Inventions or Improvements" includes patents, patent applications,
copyrights, trademarks, 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 practice of the Licensed Technology,
(b) the design, construction, maintenance or operation of the CTI System or any

                                    Schedule 1.01 - Page 2

  Technology License, Marketing & Collaboration Agreement 

Nano Reactor Unit, or any Licensed Reactor(s),
whether or not such knowledge, information and expertise is 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 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. 

"License Fee" means the license fee paid to Licensor by Licensee or a Site User, as the
case may be, for and with respect to each Licensed Reactor supplied by Licensor under this Agreement and licensed pursuant to each
Site User License that is or will be incorporated or integrated into a Nano Reactor Unit.     

"Licensed Technology" means and includes the Licensor Patent Rights and the Licensor
Technical Information.   

"Licensed Territory" means and includes the all countries, nations, states, territories,
jurisdictions and areas throughout the world.  

"Licensee Confidential Information" means:

(1) All Confidential Information developed or maintained by Licensee and furnished or provided to Licensor or its
Affiliates, and any of their respective Representatives, which does not consist of or include, and is not based upon or derived from, the
Licensor Confidential Information;

(2) Each Process Design Package developed by Licensee or its Affiliates, including each document and any
and all information contained therein and not consisting of, based upon or derived from Licensor Confidential Information, together with
the Drawings, Standards and Specifications, showing, depicting or relating to the engineering, design, fabrication, construction,
installation, startup, operation and maintenance of any Nano Reactor Unit and prepared by Licensee under the license and rights
granted in this Agreement; and 

(3) All information, data and documents (whether in print form or capable of being digitally stored and
generated) furnished or provided by Licensee to Licensor or its Affiliates, and any of their respective Representatives, under the terms
of or within the scope of this Agreement, the Secrecy & Disclosure Agreement and/or any Site User License.

(4)  Licensee's business, accounting, economic, financial and all non-public corporate information and data
developed, maintained or used by Licensee in the ordinary course of its business, including information and data regarding, derived
from or otherwise generated by any Nano Reactor Unit designed, fabricated, constructed, and installed by Licensee at a Vegetable Oil
Facility under and within the scope of the rights and license granted to Licensee under this Agreement.   

For purposes hereof, the term "Licensee Confidential Information" shall not include any
information, data or document that is included within the scope of Licensor's Confidential Information.

"Licensee Group" means Licensee and its Affiliates, and each of their respective
Representatives.

 "Licensee Inventions or Improvements" means the Inventions or Improvements
invented, discovered, conceived or acquired by Licensee or any of its Affiliates.

                                    Schedule 1.01 - Page 3

  Technology License, Marketing & Collaboration Agreement 

"Licensed Reactor" or "Reactor" means the proprietary reactors
designed and manufactured in accordance with Licensor's specifications and supplied by Licensor for incorporation or integration into
Nano Reactor Units under the terms of this Agreement.

"Licensor Confidential Information" means:

(1) All Confidential Information developed or maintained by Licensor and furnished or provided to Licensee or its
Affiliates, and any of their respective Representatives, which does not consist of or include, and is not based upon or derived from, the
Licensee Confidential Information;

(2)  The Licensor Technical Information; 

(3) Each Process Design Package developed by or for Licensor or in its behalf, including each document and
the information contained therein, together with the Drawings and Specifications, showing or depicting the process design of the CTI
System or any Nano Reactor Unit, including any Pilot Plant; 

(4)  All information, data and documents (whether in print form or capable of being digitally stored and
generated) furnished or provided by Licensor to Licensee (i) under the terms of this Agreement, or (ii) prior to the Effective Date that
relate in any way to the CTI System, any Nano Reactor Unit or any Licensed Reactor, or to any of the Licensed Technology;

(5)  All information, data and documents (whether in print form or capable of being digitally stored and
generated) furnished or provided by Licensee to Licensor under the terms of this Agreement which consists of or is based upon or
derived from Licensor Confidential Information, including all Drawings and Specifications;

(6)  Licensor's business, accounting, economic, financial and all non-public corporate information and data
developed, maintained or used by Licensor in the ordinary course of its business, including information and data regarding, derived
from or otherwise generated by any Nano Reactor Unit or under this Agreement or any Site User License.   

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.

"Licensor Group" means Licensor and its Affiliates, and each of their respective
Representatives. 

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

"Licensor IP Claim" has the meaning specified in Section 2.06(a) of Schedule 1.02.

"Licensor Patent Rights" means all rights with respect to the Licensor Primary Patent(s)
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 (a) the CTI System, or (b) the Licensed
Technology, including any process or method, operating technique, apparatus and device relating thereto, which is or may be useful in
the practice thereof, and (c) any and all applications developed with respect to the CTI System or the Licensed Technology, or that are
or may be used or useful in practicing the Licensed Technology; in each case that are acquired by Licensor or are based on or derived
from inventions or discoveries conceived by Licensor at any time prior to termination of this Agreement, to the extent that, and subject
to the terms and conditions under

                                    Schedule 1.01 - Page 4

  Technology License, Marketing & Collaboration Agreement 

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.

"Licensor Primary Patent(s)" means U.S. Patent # 7,762,715 B2 issued to Cavitation
Technologies Inc. July, 27 2010 by the U.S. Patents and Trademarks Office and assigned to Licensor, and Patent Application #
12/484,981, filed in the U.S. Patents and Trademarks Office on July 8, 2009, together with any corresponding or equivalent patents or
patent applications issued or filed by Licensor in any foreign countries or jurisdiction.

"Licensor Technical Information" means (a) all unpatented information and data relating
to the CTI System or the Licensed Technology, including (i) each Process Design Package and the Drawings and Specifications, (ii)
Know-How and Documentation, and (iii) inventions, processes, methods, technologies, operating techniques, apparatuses, applications
and trade secrets that are based on or derived from, or that may be useful in practicing, the Licensed Technology, (b) all Inventions or
Improvements; in each case that are made, developed or acquired by Licensor or that are based on or derived from inventions or
discoveries conceived of by Licensor at any time prior to termination or expiration of this Agreement, to the extent that, and subject to,
the terms and conditions under which Licensor has the right to disclose and grant rights to others, including the obligation to account to
and/or to make payments to others. 

"Minimum Annual Units" means the minimum number of Nano Reactor Units that must
be marketed, placed and installed at Facilities under the terms of this Agreement during each year of the Primary Term as specified in
Section 10.01(b).    

"Monthly Royalty" means the Performance-Based Royalty, determined in each case as a
fixed monthly royalty payment, paid by Site Users to Licensor under the terms of each Site User License.

"Nano NeutralizationTM" means a proprietary application or process of the CTI System
within the Field of Vegetable Oil Processing that involves the operation of a Nano Reactor Unit in the caustic refining of Vegetable Oils
by converting non-hydratable phospholipids to hydratable phospholipids through the use of the Licensed Technology.    

"Nano Reactor Unit" means each process unit designed and constructed with and utilizing,
deploying or being based on the Licensed Technology and consisting of certain equipment, piping, instrumentation and other
components (including one or more Licensed Reactors) designed and constructed by Licensee in conformance with the Product Design
Package, whether constructed for demonstration or commercialization purposes, installed and operated exclusively at Facilities located
within the Licensed Territory and for purposes and using applications and processes within the Field of Vegetable Oil Processing. 

"Other Applications" means proprietary applications and processes of the CTI System, other
than Nano NeutralizationTM, that are or may be made available to Site Users at Facilities within the Field of Vegetable Oil
Processing.   

"Performance-Based Royalty" or "Royalty" means the running royalties
paid by Site Users to Licensor under and pursuant to the terms of each Site User Agreement for the right to use the Licensed
Technology in and through the operation of a Nano Reactor Unit installed at a Facility.  

                                    Schedule 1.01 - Page 5

  Technology License, Marketing & Collaboration Agreement 

"Performance-Based Royalty Model- Nano NeutralizationTM" means the model
developed by the Parties for determining the Performance-Based Royalty payable for the use of the Licensed Technology under and
during the term of each Site User License.

   

"Person" means any natural person, corporation, partnership (including both general and
limited partnerships), limited liability company, firm, association, trust, government, governmental agency or governmental
instrumentality and any political subdivision, and any 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.

"Pilot Test Unit" means any Nano Reactor Unit supplied by either Party to a Site User at a
Facility for the limited purpose of pilot testing and evaluation as provided in Section 8.04.

"Price" means the price or prices charged or to be charged by Licensor for equipment,
components and parts, other than Licensed Reactors, supplied to Licensee from time to time as provided in Section 8.01.  

"Primary Term" means the initial term of this Agreement as specified in Section 10.01.

"Process Design Package" means the comprehensive design package for Nano Reactor
Units and each component thereof, including (a) the Drawings and Specifications, and (b) any other drawings, schematics, flow charts,
diagrams (including piping and instrumentation diagrams); equipment and process data sheets; logic diagrams; graphic displays;
performance data; and technical or operating manuals; in each case that 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 CTI
System or any Nano Reactor Unit. 

"Purchase Order" has the meaning specified in Section 3.02.

"Renewal Term" has the meaning set forth in Section 10.01.

"Representative(s)" means, with respect to any Person, such Person's officers, directors,
members, managers, partners, employees, advisors and agents, and any other Person acting under the authority of or on behalf of
such Person.

"Royalty Addendum" means the addendum that will be executed by Licensor and each Site
User, under the terms of each Site User License, that will confirm the Effective Date and the Monthly Royalty to be paid under each
such Site User License.

"Secrecy & Non-Disclosure Agreement" means the Secrecy & Non-Disclosure
Agreement dated as of December 4, 2009, executed by and between the Parties.

"Site User License" means the site use license issued by Licensor to each Site User to
operate and maintain one or more Nano Reactor Units, including the Licensed Reactors incorporated or integrated therein and other
components thereof, and to use the Licensed Technology in connection therewith, in substantially in the form of the Site User License
set forth in Exhibit B to this Agreement.    

                                    Schedule 1.01 - Page 6

  Technology License, Marketing & Collaboration Agreement 

"Site User" means any Person that has received, accepted and executed a Site User License
with respect to one or more Nano Reactor Units installed and operated at Facilities as contemplated by this Agreement.

"Specifications" means the items, criteria, data and requirements governing the design,
construction, installation, performance, operation and/or maintenance of Nano Reactor Units, including the detailed specifications with
respect to the CTI System or any Nano Reactor Unit developed by Licensor or by Licensee in any Process Design Package, or
depicting or embodying the Licensed Technology or any aspect thereof.    

"Third Party IP Claim" has the meaning specified in Section 2.05(a) of Schedule 1.02.  

"Vegetable Oil" means any natural oils (virgin and/or used) derived from plants (including
without limitation vegetables, fruits, seeds and nuts), animal fats and other related organic materials (excluding crude oil and other
hydrocarbon based minerals and substances), are or may be produced through various processes and methods deployed in the Field
of Vegetable Oil Processing.    

                                    Schedule 1.01 - Page 7

  Technology License, Marketing & Collaboration Agreement 

SCHEDULE 1.02

                   GENERAL TERMS AND CONDITIONS

SCHEDULE 1.02

                   GENERAL TERMS AND CONDITIONS

  Technology License, Marketing & Collaboration Agreement 

Article 1.0  REPRESENTATIONS, WARRANTIES & LIMITATIONS 

1.01  Licensor's Representations.  Licensor represents, both as of the Effective Date and at
all times during the term of this Agreement, as follows:

(a)  Licensor is a corporation duly organized, validly existing, and in good standing under the laws of the State
of Nevada, United States of America, and has the power and authority to enter into and perform its obligations under this Agreement.
The execution, delivery and performance of this Agreement and all documents relating hereto by Licensor have been duly and validly
authorized by all requisite corporate action and constitute valid and binding obligations of Licensor enforceable in accordance with their
respective terms.

(b)  Licensor is the owner of the Licensed Technology, and has the full right, power and authority to (1)
license and otherwise grant all of the rights existing in and to the CTI System to any Person anywhere in the world, and (2) grant to
Licensee the rights and license granted under this Agreement.    

(c)  The Licensor Primary Patent constitutes a valid and enforceable patent or patent application under the
patent laws of the United States of America and under the laws of any other nation or country in which or as to which a patent
application has been filed and prosecuted and a patent (or patents) that is substantially equivalent to the Licensor Primary Patent has
been issued.  

1.02  Licensee's Representations.  Licensee represents, both as of the Effective Date and at
all times during the term of this Agreement, as follows:

(a)  Licensee is a corporation duly organized, validly existing, and in good standing under the laws of Belgium,
and has the power and authority to enter into and perform its obligations under this Agreement.  The execution, delivery and
performance of this Agreement and all documents relating hereto by Licensee have been duly and validly authorized by all requisite
corporate action and constitute valid and binding obligations of Licensee enforceable in accordance with their respective terms; and

(b)  Licensee is a fully staffed engineering and design firm and has competent professional engineers and other
personnel and is professionally and financially capable of performing under this Agreement in accordance with its terms. 

  

1.03  Licensor's Warranties; Disclaimers/Limitations.  (a) Licensor expressly warrants that
each Licensed Reactor delivered to Licensee for incorporation into a Nano Reactor Unit under this Agreement shall be free of defects in
workmanship for a period of one (1) year following delivery.    

(b) Except as otherwise expressly set forth in Article 1.0 OF THIS SCHEDULE, LICENSOR MAKES NO
EXPRESS OR IMPLIED WARRANTIES OR REPRESENTATIONS OF ANY KIND TO LICENSEE OR TO ANY SITE USER UNDER
THIS AGREEMENT, INCLUDING WITHOUT LIMITATION ANY WARRANTY OR REPRESENTATION WITH RESPECT TO ANY
NANO REACTOR UNIT, ANY LICENSED REACTOR OR OTHER EQUIPMENT, OR THE LICENSED TECHNOLOGY OR ITS USE IN
OPERATING ANY NANO REACTOR UNIT, OR IN THE DEVELOPMENT OR COMMERCIALIZATION THEREOF.  LICENSOR FURTHER MAKES NO

                                    Schedule 1.02 - Page 1

  Technology License, Marketing & Collaboration Agreement 

EXPRESS OR IMPLIED WARRANTIES, AND HEREBY DISCLAIMS ANY EXPRESS OR IMPLIED
WARRANTIES OR REPRESENTATIONS, AS TO MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR ANY OTHER
WARRANTIES OR REPRESENTATIONS OF ANY KIND TO LICENSEE AND ANY SITE USER, INCLUDING WITHOUT LIMITATION
ANY WARRANTY OR REPRESENTATION WITH RESPECT TO THE OPERATION OF ANY NANO REACTOR UNIT OR ANY
LICENSED REACTOR, OR THE USE OR PERFORMANCE OF THE LICENSED TECHNOLOGY. 

1.04  Licensee's Warranties.  (a) With respect to each Nano Reactor Unit designed,
fabricated, constructed, assembled, installed and marketed by Licensee under the terms of this Agreement, Licensee may assign and
otherwise provide to Site Users the express warranty made by Licensor as specified in Section 1.3 of this Schedule, subject, however,
to the disclaimer of warranties set forth therein and to the limitations specified in Section 1.05 of this Schedule.  

(b)  In addition to Licensor's warranty set forth in Section 1.03 of this Schedule, Licensee shall be entitled,
subject to its obligation to provide or satisfy any remedy for noncompliance, to provide Site Users with such additional warranties and
any disclaimers of warranties, including disclaimers of implied warranties under applicable law, as it determines may be appropriate.

1.05  Limitation on Liability; Damages.  (a) Except for any infringement or
misappropriation of a Party's intellectual property or of any unauthorized disclosure of Confidential Information, NEITHER PARTY
SHALL HAVE ANY LIABILITY TO THE OTHER PARTY FOR ANY SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE OR EXEMPLARY
DAMAGES, INCLUDING WITHOUT LIMITATION, LOST PROFITS, SAVINGS OR OPPORTUNITIES, REGARDLESS OF THE FORM
OF ACTION GIVING RISE TO ANY 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 OR LICENSEE'S (OR ANY SITE USER'S) USE OR OPERATION
OF THE CTI SYSTEM OR ANY NANO REACTOR UNIT, LICENSED REACTOR OR OTHER EQUIPMENT, OR OF THE LICENSED
TECHNOLOGY, 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.  

(c)  THE LIMITATIONS ON LIABILITY AND REMEDIES SET FORTH ABOVE IN THIS SECTION 1.05
SHALL NOT APPLY TO CLAIMS OR CAUSES OF ACTION BASED ON THE INFRINGEMENT OR CONTRIBUTORY
INFRINGEMENT OF PATENTS OR COPYRIGHTS OR OTHER INTELLECTUAL PROPERTY RIGHTS RELATING TO OR ARISING
FROM ANY NANO REACTOR UNIT OR THE LICENSED TECHNOLOGY AND ASSERTED BY ANY THIRD PARTY AGAINST
LICENSEE OR ANY SITE USER.  

(d) [Reserved].

                                    Schedule 1.02 - Page 2

  Technology License, Marketing & Collaboration Agreement 

Article 2.0  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;

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

(b)  NOTWITHSTANDING THE FOREGOING, LICENSOR'S INDEMNITY HEREIN SHALL NOT EXTEND
TO OR INCLUDE LICENSEE'S DESIGN, FABRICATION, CONSTRUCTION, OPERATION OR MAINTENANCE OF ANY NANO
REACTOR UNIT OR OTHER PROPRIETARY EQUIPMENT OR TECHNOLOGY THAT DO NOT CONFORM IN ALL RESPECTS
WITH THIS AGREEMENT, THE PROCESS DESIGN PACKAGE OR LICENSOR'S SPECIFICATIONS. 

2.02  Licensor's Indemnity; Limitations.  LICENSOR'S TOTAL OBLIGATION AND
LIABIITY 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 1.05 OF THIS SCHEDULE.

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), DAMAGE TO OR LOSS
OF ANY PROPERTY CAUSED BY, ARISING OUT OF OR IN ANY WAY CONNECTED WITH 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, ALL FEDERAL, STATE AND LOCAL ENVIRONMENTAL, HEALTH AND SAFETY LAWS, RULES AND REGULATIONS
THAT 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, CLAIMS AND DEMANDS ARISING FROM WORK PERFORMED BY LICENSEE'S
SUBCONTRACTORS OR FROM MATERIALS SUPPLIED TO LICENSEE; AND

                                    Schedule 1.02 - Page 3

  Technology License, Marketing & Collaboration Agreement 

(4)  ANY (i) BREACH OF ANY REPRESENTATION OR COVENANT OF LICENSEE CONTAINED
HEREIN, AND (ii) ANY CLAIM, DEMAND, ACTION, LOSSES, DAMAGES, EXPENSES AND LIABILITY (INCLUDING LITIGATION
COSTS AND REASONABLE ATTORNEYS' FEES 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 in
Article 2.0 of this Schedule shall not be limited by or to the insurance coverage maintained by Licensee under Article 3.0 of this
Schedule.  

2.05  Third Party IP Claims; Notice & Assistance.  (a)  Each Party will promptly
advise the other Party in writing of any demand, claim, civil action, arbitration or other legal action or proceeding asserting or alleging
infringement of any patent or copyright relating to the CTI System, any Nano Reactor Unit or the Licensed Technology, or of the
unauthorized disclosure, communication or transportation of confidential or proprietary information (each a "Third Party IP
Claim").  

(b)  Licensee shall, at its cost, render all reasonable assistance that may be required by Licensor in the
defense of any Third Party IP Claim as to which Licensor owes a defense and indemnity under Article 2.0 of this Schedule.  With
respect to each such claim, (1) Licensee shall have the right to be represented therein by advisory counsel of its selection and at its
expense, and (2) Licensor shall, without disclosure of any

                                    Schedule 1.02 - Page 4

  Technology License, Marketing & Collaboration Agreement 

attorney/client communication, work product or other privileged information or
data, regularly report to and consult with Licensee concerning developments and other strategic decisions or matters being considered
by Licensor. 

2.06  Licensor IP Claims; Notice & Assistance.  (a)  Each Party will promptly advise
the other Party in writing of any act, omission, representation, or other conduct by any Person, or of any transaction or other
commercial activity engaged in by any such Person, that constitutes or reasonably appears to constitute (1) an infringement,
interference and/or misappropriation of any patent, copyright, trademark, trade secret or other intellectual property right of Licensor or
Licensee in or relating to the CTI System, any Nano Reactor Unit or the Licensed Technology, or (2) the unauthorized disclosure,
communication or transportation of the confidential or proprietary information of a Party (each a "Licensor IP
Claim").  Upon receiving information that suggests or confirms the existence of a Licensor IP Claim, Licensor shall have the
right, in its sole discretion (and without any obligation to do so) to take such action with respect to the Licensor IP Claim as it
determines is appropriate to protect its intellectual property.  In the event that Licensor determines, after consultation with Licensee, that
a civil action, arbitration or other legal or administrative action should be commenced against any such Person in order to assert or
enforce a Licensor IP Claim, Licensor shall bring any such action, if at all, in its own name and shall be entitled to control the action,
including the choice of forum or venue, the selection of counsel and witnesses and, except as provided in Section 2.06(c) of this
Schedule, the ultimate disposition of such action.  

(b)  Licensee shall, at its cost, render all reasonable assistance that may be required by Licensor in the
prosecution  or enforcement of any Licensor IP Claim; provided, however, unless the Parties otherwise agree, Licensor shall, in any
Licensor IP Claim that it asserts, commences or elects to pursue, be responsible for all litigation costs that it may incur in connection
therewith, including attorneys' fees, expert and witness fees, and other litigation costs.  With respect to each such claim, (1) Licensee
shall have the right to participate in any such legal action or proceeding through its own counsel, either as a named party with Licensor
or without joinder as a party thereto (unless and to the extent that Licensee is determined to be a necessary and indispensable party),
and (2) Licensor shall, without disclosure of any attorney/client communication, work product or other privileged information or data,
regularly report to and consult with Licensee concerning developments and other strategic decisions or matters being considered by
Licensor.            

2.06  Settlement and Compromise.  (a) In the event of any Third Party IP Claim as to which
Licensor owes a duty of indemnification under Article 2.0 of this Schedule, Licensor shall have the right (but not the obligation), at its
sole expense, to either (1) provide changes in designs, specifications and/or operating conditions, or modify any Nano Reactor Unit or
any component or part thereof, that would avoid such infringement and/or misappropriation without degrading the economics or
performance of the Unit or the Licensed Technology, or (2) acquire the right to continue using the designs, specifications and/or
operating conditions that 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 Third Party IP Claim
or any other claim, civil action, arbitration or other legal action as to which a defense and/or an indemnity obligation is owed hereunder
without the indemnified Party's written consent if such settlement or compromise will obligate the indemnified Party to (1) make any
payment or relinquish or waive any property or contractual right or grant any license or other rights, or (2) become subject to any
injunction.

(c)  Licensor shall not settle or compromise any Licensor IP Claim without Licensee's written consent if such
settlement or compromise will obligate Licensee to (1) make any payment or relinquish or waive any property or contractual right or
grant any license or other rights, or (2) become subject to any injunction.

Article 3.0  INSURANCE

3.01  Licensee's Insurance.  (a) Licensee shall maintain, at its sole cost, at all times
during the term of this Agreement sufficient "special perils" or casualty property insurance to cover their risks of loss
assumed under this Agreement for the Reactors supplied to Licensee by Licensor herein. 

(b)  Each policy shall (1) provide that such policy is primary and not excess or contributory to other
insurance available to Licensor, and (2) require written notice of cancellation. Notice of cancellation in the policy or policies will not be
effective until 30 days after written notice is received by Licensor and Licensee.  Deductibles or self-insured retentions shall be for the
account of Licensee as applicable to the policies Licensee may carry or maintain herein.  

3.02  Proof of Coverage; Notice.  Licensee shall have its
insurance carriers furnish to Licensor, within thirty (30) days after the Effective Date and annually thereafter, certificates specifying that
the policies required herein are in effect, the amounts of such coverage, and the expiration dates of each policy.  

Article 4.0  COMPLIANCE WITH APPLICABLE LAW

4.01  Compliance With 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.

4.02  Product Certifications.  (a) Licensor shall be responsible, at its cost, for securing
any equipment certifications for or respect to any Licensed Reactor including any "CE marking" or "UL"

                                    Schedule 1.02 - Page 5

  Technology License, Marketing & Collaboration Agreement 

certification or requirements, that it deems necessary or appropriate or that may be required by any jurisdiction in which any Unit or
component thereof is shipped, imported, stored, or installed.  Licensee shall, at Licensor's request, provide reasonable assistance to
Licensor in obtaining any such certifications.    

(b)  Licensee shall be responsible, at its cost, for securing any product, equipment or instrument
certifications for any Nano Reactor Unit, or for or with respect to any equipment or components incorporated or integrated into any Unit,
including any "CE marking" or "UL" certification or requirements, that it deems necessary or appropriate or that
may be required by any jurisdiction in which any Unit or component thereof is shipped, imported, stored, or installed under the rights
and authority granted to Licensee hereunder.  Licensor shall, at Licensee's request, provide reasonable assistance to Licensee in
obtaining any such certifications.  Licensee shall ensure that any such certifications are met or complied with to the extent that they may
be applicable to any Nano Reactor Unit or any component thereof, excluding the Licensed Reactor(s).     

Article 5.0  GOVERNING LAW; DISPUTE RESOLUTION

5.01  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.   

5.02  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 connection with such arbitration/litigation, including attorneys' fees and the fees and
expenses of its experts and witnesses.

(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 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 or in 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

                                    Schedule 1.02 - Page 6

  Technology License, Marketing & Collaboration Agreement 

Emergency Measures of Protection.  The Party in any
arbitral action or claim submitted to AAA that requests emergency 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 6.0  MISCELLANEOUS PROVISIONS

6.01  Amendments; 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. 

6.02   Severability.  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  having
jurisdiction thereof, the validity of the remaining parts or provisions shall not be affected by such decision or holding.

6.03  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. 

6.04  Relationship of Parties.  Except with respect to the vertical
licensing and marketing relationship established between the Parties under this Agreement, 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.  Neither Party shall be liable for the representations, acts, or omission of
the other Party contrary to the terms of this Agreement.  Neither Party has the right or power to act for or on behalf of the other or
to bind the other in any respect whatsoever, other than as expressly provided for herein.

6.05  Required Currency.  All amounts and payments used in or paid under this
Agreement are and 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.

6.06  Costs and Expenses.  Each Party shall bear its own costs and expenses
related to the preparation and negotiation of this Agreement.

6.07  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 or the beginning of 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.  The Parties agree that time is of the essence under this Agreement and that no delay or omission by a Party in the
exercise of any right or power, or in the pursuit of any remedy, shall impair any right, power or remedy, or be construed to be a waiver
thereof, nor shall the acceptance by a Party of any payment required under this Agreement be deemed a waiver of any right, power or
remedy in the future. 

6.08  Construction.  This Agreement has been prepared, examined,
negotiated and revised by each Party and their respective representatives, agents and/or attorneys, and no implication shall be drawn
and no provision shall be construed against either Party by virtue of the drafter(s) of this Agreement. 

                                    Schedule 1.02 - Page 7

  Technology License, Marketing & Collaboration Agreement 

6.09  Integration.  This Agreement, together with the Schedules and Exhibits attached to
and made a part of this Agreement, embodies the entire agreement and intent of the Parties and merges all prior oral and written
agreements between the Parties hereto 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 in a subsequent written agreement
signed by the Parties.  

6.10    Further Assurances.  Each Party shall execute
and deliver all further documents and instruments and take all such further actions as may be reasonably required or appropriate to
carry out the intent and purposes of this Agreement. 

6.11  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. 

                                    Schedule 1.02 - Page 8

  Technology License, Marketing & Collaboration Agreement 

SCHEDULE 2.04

                   PRE-EXISTING PILOT TEST AGREEMENTS, 

                   USER LICENSES AND LEASES 

  Technology License, Marketing & Collaboration Agreement 

SCHEDULE 2.04

                   PRE-EXISTING PILOT TEST AGREEMENTS,

                   USER LICENSES & LEASES

	

1.

	

Site User:

Facility Location:   

Agreement/License:

	

CAROLINA SOYA, LLC    

Estill, South Carolina

Memorandum of Understanding dated March 29, 2010 between Desmet
     Ballestra North America, Inc. and Carolina Soya, LLC.
    Desmet Ballestra North America, Inc. paid Cavitation Technologies, Inc.
    $17,260.50 (50%) towards building the Pilot Test Unit.
    Pilot test concluded with Carolina Soya acceptance of Unit.
    Equipment Lease & Site User License pending
        between Cavitation Technologies, Inc. and Carolina Soya, LLC.

   

	

2.

	

Site User:

Facility Location:   

Agreement/License:

	

PRODUCERS COOPERATIVE OIL MILL    

     Oklahoma City, Oklahoma  

     Pilot Test Agreement dated July 14, , 2010, between Producers
      Cooperative Oil Mill and Desmet Ballestra North America, Inc.
    Desmet Ballestra North America, Inc. paid Cavitation Technologies, Inc.
    $19,272.23 (50%) towards building the Pilot Test Unit.
    Pilot test concluded without Producers Cooperative Oil Mill's acceptance
    and Reactor Unit returned to Cavitation Technologies, Inc. in September
    2010.  Unit available for new pilot test opportunity.

   

	

3.

	

Site User:

Facility Location:   

Agreement/License:

	

PERDUE AGRIBUSINESS, INC.    

     Salisbury, Maryland  

   Proposal US101009.0 dated October 12, 2010, by
    and among Perdue Agribusiness, Inc. and Desmet Ballestra North      America, Inc.
    Desmet Ballestra North America, Inc. paid Cavitation Technologies, Inc.
    $31,362.34 (50%) towards building the Pilot Test Unit.
    Pilot test scheduled for early 2011.

   

	

4.

	

Site User:

Facility Location:   

Agreement/License:

	

CHS, INC.

   Mankato, Minnesota    

   Memorandum of Understanding dated April 9, 2010, between Cavitation
     Technologies, Inc. and CHS, Inc.
    Equipment Lease Agreement pending between
    Cavitation Technologies, Inc. and CHS, Inc.
    Pilot test scheduled for early 2011.

   

	

5.

	

Site User:

Facility Location:   

Agreement/License:

	

AGNATURAL, LLC   

   Weldon, North Carolina       

   Proposed Finance Lease Transaction (Multiple Transaction Documents -     Pending)
involving Cavitation Technologies, Inc., Fidelity Capital      Partners, LLC, and AgNatural, LLC.

                                    Schedule 2.04 - Page 1

  Technology License, Marketing & Collaboration Agreement 

SCHEDULE 2.05

                   NOTICE OF EXTENTION OF AGREEMENT 

                   TO AFFILIATE(S) 

  Technology License, Marketing & Collaboration Agreement 

SCHEDULE 2.05

                   NOTICE OF EXTENSION OF AGREEMENT 

                   TO AFFILIATE(S)

[Date}

Cavitation Technologies, Inc.

   10019 Canoga Avenue

   Chatsworth, California  91311  USA 

Attention:  Chief Executive Officer

Re:  Technology License, Marketing & Collaboration Agreement (dated as of 11-01-2010)

   Licensee's Notice of Extension of Agreement to Affiliate(s)

   ____________________________________________________________________

Ladies/Gentlemen:

Pursuant to Section 2.05 of the Technology, Marketing & Collaboration Agreement dated as of November 1, 2010 (the
"Agreement"), executed by and between Cavitation Technologies, Inc. ("Licensor") and n.v. Desmet Ballestra
Group s.a. ("Licensee"), PLEASE TAKE NOTICE that, effective as of ___________, Licensee has elected to extend the
Agreement and its terms to the following named Affiliate(s):

[LIST FULL NAME OF AFFILIATE(S)]

Each Affiliate named above, by its/their signature(s) below, has agreed to be bound by the terms of the Agreement and by the
terms of the Secrecy & Non-Disclosure Agreement as defined in the Agreement.

Sincerely,

By: ____________________________

   [Officer/Authorized Representative]

*               *               *

In consideration of Licensee's extension of the Agreement to the Affiliate(s) named above, each Affiliate that has executed this
letter below hereby agrees, effective as of _______________, _____, to become bound by (1) the terms of the Agreement and the
obligations of Licensee therein, and (2) the terms of the Secrecy & Non-Disclosure Agreement and the obligations of Licensee
therein.

[Name of Affiliate]

By: ____________________________

   Name:

   Title:

                                    Schedule 2.05 - Page 1

  Technology License, Marketing & Collaboration Agreement 

EXHIBIT A

                   FORM OF PURCHASE ORDER

  Technology License, Marketing & Collaboration Agreement 

EXHIBIT A

                   FORM OF PURCHASE ORDER

Licensee will use its standard form of ERP generated purchase order when purchasing Reactors from Licensor. The following data
shall specifically be inserted into each purchase order:

Supplier Data:

Cavitation Technologies, Inc.

   10019 Canoga Avenue

   Chatsworth, California  91311

   Contact: Roman Gordon

   Phone:  1 818 7181176

   Fax:  1 818 7181176

Payment Terms:

Fifty percent (50%) at the time that Licensee submits a Purchase Order to Licensor, with the balance immediately due and
payable upon delivery.

PO Notes:

	This purchase order is being submitted by Licensee on behalf of and in the name of (insert Site User name and location).

	TERMS AND CONDITIONS - This Purchase Order is governed in all respects by the Technology License, Marketing &
Collaboration Agreement, dated as of November 1, 2010, between Cavitation Technologies, Inc. and n.v. Desmet Ballestra Group s.a.
(the "Agreement") and by the terms and conditions contained therein.

	DELIVERY - Ship to SITE USER'S Facility at the DELIVERY LOCATION within NINETY (90) DAYS after acceptance of this
Purchase Order by Licensor/Supplier, receipt of the Site User Agreement executed by SITE USER, and payment of all required Fees
and Payments.  All shipments shall be EX WORKS (place of manufacture) as defined in INCOTERMS 2000.

	Licensee orders the Equipment described in this Purchase Order, subject, however, to the applicable terms and conditions
contained in the Agreement and the Site User License.

                                    Exhibit A - Page 1

  Technology License, Marketing & Collaboration Agreement 

EXHIBIT B

                  FORM OF SITE USER LICENSE

  Technology License, Marketing & Collaboration Agreement 

EXHIBIT B

                   FORM OF SITE USER LICENSE AGREEMENT

This SITE USER LICENSE AGREEMENT ("User License") dated and made
effective as of ____________, 2010, is entered into by and between CAVITATION TECHNOLOGIES, INC., a Nevada
corporation, having an office at 10019 Canoga Avenue, Chatsworth, California ("CTI"), and XYZ
CORPORATION, a _______ corporation, having an office at ____________________________ ("Site User")
(referred to herein individually as a "Party" or collectively as the "Parties").

W i t n e s s e t  h

A.  CTI has developed and owns the CTI Nano Reactor System (the "System"), a
proprietary nano reactor system that uses or deploys proprietary nano cavitation reactors (the "Licensed Reactors"
or "Reactors") and technology (the "Licensed Technology") for certain purposes and in
processes and applications within the Field of Vegetable Oil Processing; 

B.  n.v. Desmet Ballestra Group s.a. ("DB") has specialized expertise in process technologies and
equipment used in the Field of Vegetable Oil Processing and has an exclusive license agreement with CTI authorizing DB to offer
certain equipment that, through the use of the Licensed Technology, may substantially improve the economics, values and efficiencies
derived from facilities that process and refine plant oils and fats, including without limitation the conversion of non-hydratable
phospholipids to hydratable phospholipids via use of the Licensed Technology;  

C.  Site User owns and operates a ____ metric ton/day vegetable oil refining facility located at
_______________________________ (the "Facility") and has selected DB to supply certain equipment (the
"Equipment") to Site User at the Facility that will incorporate one or more Licensed Reactors and utilize the
Licensed Technology for the purpose of conducting Nano NeutralizationTM; and    

C.  CTI has agreed to provide Site User with a non-transferable, exclusive right to use the Licensed
Reactors and the Licensed Technology in operating and maintaining the Equipment at the Facility under the terms of this User License.

NOW, THEREFORE, in consideration of the mutual covenants and promises hereinafter set forth,
the Parties agree as follows:

1.  Definitions.  Capitalized terms used in this User License, unless otherwise
defined in the text hereof or the context otherwise requires, shall be defined as follows:

"Confidentiality Agreement" means the Confidentiality & Non-Disclosure Agreement
previously executed by CTI and Site User.

"Documentation" means printed or electronic information or data depicting or showing
the as-installed configuration of the Equipment at the Facility, together with and any user or technical manuals, guidelines or operating
documentation for the Equipment provided by DB to Site User.

"Equipment" means or refers to equipment designed, constructed and installed at or
integrated into the Facility by DB, consisting of the Licensed Reactors and other equipment, pumps, piping and instruments that are
incorporated into the Equipment as a single unit.

                                    Exhibit B - Page 1

  Technology License, Marketing & Collaboration Agreement 

"Established Savings" means, for the purpose of determining the Monthly Royalty payable by
Site User under this User License, the calculated net value increase in oil yield, chemical savings and energy consumption or savings
based on data generated by a performance test conducted after installation of the Unit at the Facility, using the procedures and criteria
set forth in Section 10 and in the Performance-Based Royalty Model for Nano NeutralizationTM set forth in Exhibit A hereto.  

"Facility" has the meaning specified in the preamble to this User License. 

"Licensed Reactors" or "Reactors" means CTI's proprietary reactors
that are licensed to Site User herein and supplied to DB and incorporated into the Equipment.

"Licensed Technology" means (a) CTI's proprietary technology used in the installation,
operation and maintenance the Equipment, consisting of systems, designs, procedures, drawings, schematics, ideas, concepts,
techniques, and technical and engineering information and know-how deployed or embedded in the Equipment or used in its operation;
and (b) the Documentation.

"Monthly Royalty" means the performance based royalty paid by Site User on a monthly
basis and determined in accordance with the provisions contained in Section 10. 

"Nano NeutralizationTM" means a proprietary application or process of the CTI
System that involves the operation of a Nano Reactor Unit in the caustic refining of vegetable oils by converting non-hydratable
phospholipids to hydratable phospholipids through the use of the Licensed Technology. 

"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, including the Parties, and any Third Person.  

"Representatives" means, with respect to a Party or any Person, its officers, directors,
members, managers, partners, employees, contractors (and subcontractors), consultants, advisors and agents, and any other Person
acting under the authority of or on behalf of such Party or Person, as the case may be.

"Third Person" means any Person other than the Parties and DB.

2.  Grant of Site License; Limitations.  Subject to the terms and conditions of this User
License, CTI hereby grants to Site User, during the term hereof, a limited, non-exclusive and non-transferable right and license to use
the Licensed Reactors and the Licensed Technology in operating and maintaining the Equipment at the Facility, at a maximum capacity
of ___________ metric tons/day, for the sole purpose of conducting Nano NeutralizationTM.      

3.  Limitations on Grant; Prohibitions.  (a)  Site User agrees that it (1) will operate and
maintain the Equipment in accordance with the specifications and instructions provided by DB or as set forth in the Documentation, and
(2) will not dismantle, uninstall, relocate or remove the Equipment or the Licensed Technology from the Facility without the prior written
consent of DB and CTI. 

(b)  Site User agrees that it will not (1) use the Licensed Reactors or the Licensed Technology (i) in any
manner inconsistent with the user rights granted in this User License, or (ii) for any
purpose or in any context other than in operating and maintaining the Equipment at the Facility for the purpose(s) specified herein; (2)
disclose, make available or distribute the Licensed Technology, or any aspect or part thereof, to any Third Person, whether by sale,
assignment, sublicense or otherwise, or allow any Third Person access to the Licensed Technology; (3) modify, alter, reverse engineer,
disassemble, duplicate,

                                    Exhibit B - Page 2

  Technology License, Marketing & Collaboration Agreement 

reproduce or copy the Equipment, the Licensed Reactors or the Licensed Technology, or affix or install any
accessory, equipment or device on the Equipment for any purpose; or (4) copy, adapt, reverse engineer, disassemble or modify the
Licensed Technology, in whole or in part, or use it in any way to create any derivative works or to copy or reproduce the
Documentation.

(c)  Site User further agrees that neither it nor its Representatives will modify, alter or tamper with or
remove the wire security seal affixed to the Licensed Reactor(s).  Tampering with or removing the wire
security seal on the Reactor(s) will void the CTI's warranties for the Reactors.   

4.  Ownership; No IP Rights Granted.  Site User acknowledges and agrees that (a) the
Licensed Reactors and the Licensed Technology are proprietary to CTI, and (b) all patent, copyright, trade secret and other intellectual
property rights in the Reactors and the Licensed Technology, of whatever nature and in all languages, formats and media throughout
the world, are and shall remain the sole and exclusive property of CTI.  Nothing in this User License shall be construed as granting,
assigning or transferring any rights under any patent, copyright, trade secret or other intellectual property right of CTI to Site User or
any Third Person; nor shall this User License grant either Party any rights in or to the other Party's confidential information except as
expressly provided herein.  

5.  Delivery, Installation
& Startup.  Upon delivery of the Equipment, Site User will promptly inspect the Equipment and make arrangements with
DB for its installation and any testing they may require prior to startup of the Equipment.    

6.  Operation; Maintenance.  Site User agrees to (1) operate and maintain the Equipment
at the Facility in a careful and proper manner and as a reasonably prudent operator and will
diligently adhere to all procedures, instructions, specifications and guidelines provided by DB or contained in the
Documentation, (2) comply with all federal, state, municipal, and other laws, regulations and ordinances
relating to possession, operation or maintenance of the Equipment and the Licensed Technology, (3) maintain the Equipment, at Site
User's cost and expense, in good operating order, repair, condition and appearance, and
perform all required preventative maintenance on the Equipment, and (4) keep, locate and store the Equipment in a safe, secure and
suitable environment at the Facility and protect it from deterioration (other than normal and expected wear and tear resulting from
proper operation of the Equipment) and damage, loss or destruction.   

7.  Equipment Inspection; Data Access.  (a)  Upon request,
Site User shall provide or make available to DB (1) reasonable access to the Equipment (including maintenance and operating records
and data) for inspection and testing and to allow DB to evaluate the condition of the Licensed Reactors and to verify compliance with
this User License, and (2) all operating and performance data generated by or during the
performance test conducted in accordance with Section 11 for the purpose of evaluating the performance of the Equipment and the
Licensed Technology and to determine the amount of the Monthly Royalty.

8.  Upgrades.  CTI retains the right, in its sole discretion, to upgrade, modify, improve or
make additions or corrections to the Licensed Technology (each an "Upgrade").  Any Upgrades made available to
Site User shall be governed by and subject to the terms of this User License.  Upgrades may include modifications to improve the
operation or functioning of the Equipment, but shall not include modifications that permit a distinct and separate application of the
Licensed Technology.  Upgrades made or conceived by Site User or its Representatives shall be the sole and exclusive property of
CTI, and all rights therein are hereby assigned by Site User to CTI; and CTI shall have the worldwide and exclusive right to own and
use same for any lawful purpose. 

                                    Exhibit B - Page 3

  Technology License, Marketing & Collaboration Agreement 

9.  Site User Improvements.  Without implying any right to do so, and without waiving any
of CTI's rights and remedies, if Site User or its Representatives shall write, record or otherwise generate, conceive, discover or produce
patentable or copyrightable work or material representing any improvement to or enhancement of, or any new or expanded application
of, the Equipment, the Licensed Reactors, or the Licensed Technology, Site User agrees that such work or material shall become the
sole and exclusive property of CTI and all rights therein are hereby assigned by Site User to CTI; and CTI shall have the sole and
exclusive right to own and use same for any lawful purpose.    

10.  Monthly Royalty; Determination.  (a)  During the term of this User License, Site User shall pay
CTI a performance-based royalty for the use of the Licensed Technology at the Facility for the purpose(s) specified herein.  The royalty
shall be paid as a fixed monthly royalty (each a "Monthly Royalty") and shall equal forty
percent (40%) of the Established Savings calculated in accordance with the procedures and criteria set forth in the Performance
Royalty Model set forth in Exhibit A hereto.

(b)  Once the Monthly Royalty has been determined as provided herein, CTI and Site User shall execute a
written addendum ("Royalty Addendum"), in substantially the form of Exhibit B hereto, to confirm the
Effective Date (on which payment of the Monthly Royalty begins), the Established Savings, and the Monthly Royalty to be paid by Site
User during the term of this User License.  The Royalty Addendum shall constitute an amendment to this User License and shall be
signed by a Representative of each Party.

(c)  In the event that Site User elects to renew the User License at the end of the Primary Term or any Renewal
Term under Section 12 hereof, the Monthly Royalty shall be redetermined at the beginning of each Renewal Term in accordance with
Section 10(a) and the Performance Royalty Model.    

11.  Monthly Royalty; Payment Procedure.  (a)  Beginning on the Effective Date (or as soon
thereafter as the Monthly Royalty is determined), Site User shall pay to CTI, on or before the first day of each month during the term of
this User License, the Monthly Royalty that is determined in accordance with Section 10.        

(b)  All payments of Monthly Royalty hereunder shall be (a) exclusive of sales, use or value added taxes (VAT)
or the equivalent, ad valorem, personal property and other taxes, all of which shall be the responsibility of Site User, (b) paid without
notice, demand, counterclaim, setoff, deduction, abatement, deferment or proration by reason of any circumstance or occurrence, and
(c) paid to CTI in immediately available U.S. Dollars, either in cash or by wire transfer to an account in CTI's name at a bank or banking
institution that it specifies to Site User from time to time.  Any Monthly Royalty paid later than ten (10) days after its due date shall bear
interest at a rate equal to the lesser of (1) one percent (1%) per month or (2) the maximum rate of interest allowed by law.

12.  Term; Duration.  This User License shall become effective upon delivery of the
Equipment at the Facility ("Effective Date") and shall continue in full force and effect for a period of one (1) year
(the "Primary Term"); provided, however, Site User shall have the right to extend the term of this
User License for up to five successive renewal terms of one (1) year each (each a "Renewal Term") by giving CTI
written notice of its election at least thirty (30) days prior to the expiration of the Primary Term or any Renewal Term.  Upon expiration
or termination of this User Lease, this User License, together with Site User's right and license to use the Licensed Reactors and the
Licensed Technology granted herein, will expire without notice or further action by either Party.    

                                    Exhibit B - Page 4

  Technology License, Marketing & Collaboration Agreement 

13.  Termination; Material
Defaults.  Upon CTI's notice to Site User of any material default under this User License, the Parties shall in good faith
attempt to resolve any differences between them and to cure any such default.  If a material default continues for a period of thirty (30)
days following CTI's notice of such default to Site User without being cured or corrected, CTI shall have the right to terminate this User
License upon notice to Site User.  Any termination of this User License shall not preclude CTI from pursuing or enforcing any claim
or remedy it may have for damages or otherwise on account of any default by Site User hereunder.  

14.  Surrender & Return.  (a)  Upon
the expiration or termination of this User License, Site User agrees, at its cost and expense, to (1) immediately cease all use of the
Equipment and the Licensed Technology and promptly return to CTI copies of the Documentation and any other Licensed Technology
then in Site User's possession or under its control and delete copies of files or materials that contain or depict any of the Licensed
Technology; and (2) promptly dismantle, package and ship the Licensed Reactors to CTI in accordance with instructions given by CTI's
Representative and using a shipper designated or approved by CTI.  

(b)  Upon Site User's surrender and return of the Licensed Reactor(s), all such
Reactors shall be in good operating order, repair, condition and appearance, except for ordinary wear and tear resulting from proper
operation, use and maintenance of the Equipment during the term of this  User License.  

15.  Confidentiality Obligations.  Subject
to the provisions of the Confidentiality Agreement, Site User shall use its best efforts to prevent any unauthorized publication or
disclosure of the Licensed Technology or of any Confidential Information as defined in the Confidentiality Agreement.  Without limiting
the foregoing, Site User shall advise CTI immediately if it learns or has reason to believe that any Person having access to the
Equipment or the Licensed Technology, or to any such Confidential Information, has violated or intends to violate the terms of this User
License or the Confidentiality Agreement and will reasonably cooperate in seeking injunctive relief against any such Person.  

16.  CTI's Warranties.  (a)  CTI warrants that (1) it owns the Licensed Reactors and the
Licensed Technology, including the intellectual property rights therein, and has the exclusive right to grant the user rights to Site User
herein, (2) the Licensed Reactors will be free of defects in workmanship for a period of twelve (12) months after the Effective Date (i.e.
during the Primary Term), and (3) the Licensed Reactors will perform in accordance with CTI's specifications during the Primary Term
and any Renewal Term(s).

(b) If it is discovered that the Licensed Reactor(s) or the Licensed Technology do not meet CTI's warranties
set forth in this Section 16, CTI shall, at its cost, promptly perform or arrange for the performance of any remedial work, component or
parts replacement, or services required to make the Reactors or the Licensed Technology, as the case may be, conform to such
warranties.

17.  Warranty Disclaimers; Liability/Remedies Limitations.  (a)  Except as
otherwise expressly set forth in Section 16 hereof, CTI MAKES NO EXPRESS OR IMPLIED WARRANTIES OR REPRESENTATIONS
OF ANY KIND TO SITE USER UNDER THIS USER LICENSE, INCLUDING WITHOUT LIMITATION ANY WARRANTY OR
REPRESENTATION WITH RESPECT TO THE EQUIPMENT, THE LICENSED REACTOR(S) OR THE LICENSED TECHNOLOGY,
OR THE PERFORMANCE OR OPERATION THEREOF, AND CTI HEREBY EXPRESSLY DISCLAIMS AND SITE USER EXPRESSLY
WAIVES ALL OTHER EXPRESS WARRANTIES AND ANY AND ALL IMPLIED WARRANTIES OR OTHER DUTIES OR
OBLIGATIONS IMPLIED BY LAW, INCLUDING THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
PURPOSE.   

                                    Exhibit B - Page 5

  Technology License, Marketing & Collaboration Agreement 

(b) CTI SHALL HAVE NO LIABILITY UNDER THIS USER LICENSE OR OTHERWISE FOR SPECIAL,
INDIRECT, INCIDENTAL, PUNITIVE OR EXEMPLARY DAMAGES, INCLUDING LOST PROFITS, SAVINGS OR OPPORTUNITIES,
REGARDLESS OF THE FORM OF ACTION GIVING RISE TO SUCH A CLAIM FOR SUCH DAMAGES, WHETHER IN CONTRACT
OR TORT, OR OTHERWISE.  THE AGGREGATE LIABILITY OF CTI FOR ANY REASON AND UPON ANY CLAIM OR CAUSE OF
ACTION BASED ON OR ARISING OUT OF THIS USER LICENSE OR SITE USER'S USE OR OPERATION OF THE EQUIPMENT,
THE LICENSED REACTORS AND/OR THE LICENSED TECHNOLOGY SHALL BE LIMITED TO THE AGGREGATE AMOUNT OF
LICENSEE FEES AND ROYALTIES PAID BY SITE USER TO CTI UNDER THIS USER LICENSE.  THIS LIMITATION APPLIES TO
ALL CAUSES OF ACTION OR CLAIMS IN THE AGGREGATE, INCLUDING BREACH OF CONTRACT, WARRANTY, INDEMNITY,
NEGLIGENCE, STRICT LIABILITY, MISREPRESENTATIONS, CLAIMS FOR FAILURE TO EXERCISE DUE CARE IN THE
PERFORMANCE OF SERVICES HEREUNDER, OR OTHERWISE.

   18.  CTI's Indemnity.  (a)  CTI agrees to defend, indemnify and hold harmless Site User
and its Representatives from and against any and all claims, demands, actions, suits, damages, losses, and liability (including litigation
costs and reasonable attorneys' fees) caused by or on account of (1) any breach or violation of CTI's representations and warranties
under this User License; or (2) any claimed or actual infringement or contributory infringement of patents or copyrights relating to or
arising from the Licensed Reactors or the Licensed Technology.

(b)  Notwithstanding the foregoing, CTI's indemnity herein shall not extend to or include any claim, demand,
action, suit, damages, loss or liability caused by or arising out of (1) the improper or unauthorized use or misuse of the Equipment, the
Licensed Reactors or the Licensed Technology, (2) the negligence, fault or willful misconduct of Site User or any of its Representatives,
or (3) any modification, alteration, configuration or operation of the Equipment, the Licensed Reactors or the Licensed Technology that
is unauthorized or otherwise fails to conform to this User License.  CTI's total obligation and liability to
defend, indemnify and hold harmless Site User and its Representatives under the provisions hereof shall be subject to the limitations
set forth in Section 17 hereof.      

19.  Site User's Indemnity.  (a)  Site User agrees to defend, indemnify and hold harmless
CTI and its Representatives from and against any and all claims, demands, actions, suits, damages, losses and liability (including
litigation costs and reasonable attorneys' fees) caused by or 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 activities and operations conducted at the Facility, or otherwise, or in the operation or maintenance of the Equipment,
the Licensed Reactors or the Licensed Technology, including without limitation any injury, death or property damage caused by or
attributable to (i) the negligence or fault (whether sole, concurrent or contributory) or willful acts or omissions of Site User or any of its
Representatives; (2) where liability with or without fault is strictly imposed by operation of law;  

(2) Any failure by Site User or any of its Representatives to comply with Applicable Law, without regard to
whether its/their activities, operations or conduct may result in strict liability imposed by operation of law;

(3) Liens, levies and other claims or encumbrances arising from work performed by any Person or from
materials supplied at the Facility or otherwise; and 

(4) Any (i) breach of any representation, warranty, covenant or other obligation of Site User contained in
this User License, and (ii) any claim or loss (including litigation costs and reasonable attorneys' fees) asserted or incurred by CTI or any
of its Representatives in defending or in enforcing or asserting claims for indemnity or insurance protection under this User License or
otherwise.     

                                    Exhibit B - Page 6

  Technology License, Marketing & Collaboration Agreement 

(b)  Site User's indemnity obligations herein shall not limit, nor be limited by,
any insurance coverage maintained by Site User.

20.  Notice of Claims; Settlements.  (a)  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 the Equipment,
the Licensed Reactors or the Licensed Technology or of unauthorized disclosure, publication 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.

(b)  Neither 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 will obligate the
indemnified Party to make any payment or relinquish or waive any property or contractual right it has or may have.

21.  Assignments; Transferability.  Site User shall not
assign, sell, convey, license or sublicense, pledge, mortgage, encumber, or transfer or otherwise dispose of this User License, or any of
the rights and interests granted herein, or the CTI Technology, without the prior written consent of CTI, and any such attempted
assignment or transfer without strict compliance herewith shall be null and void.   

22.  Governing Law.  This User License 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.   

23.  Amendment; Waiver.  This User License may be
amended, and waivers hereunder 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 User License or to insist upon strict performance of the other Party's
obligations hereunder shall not be deemed a waiver of or limit the exercise of such rights or obligations with respect to any subsequent
occurrence. 

24.  Severability.  Should any part or provision of this User
License 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.

25.  Relationship of Parties.  Nothing in this User
License 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.  

 

26.  Rights/Remedies Cumulative; Waiver.  Each
and every right, power and remedy specified in this User License 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.   

                                    Exhibit B - Page 7

  Technology License, Marketing & Collaboration Agreement 

27.  Notice/Contact   If any operational or maintenance problem is encountered with the
Equipment or the Licensed Technology, please contact DB or its designated Representative.  

28.  Integration.  This User License 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 User
License or in a subsequent written agreement signed by the Parties.  

29.  Counterparts.  This User License 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. 

IN WITNESS WHEREOF, the Parties have executed this User License on the dates below. 

CAVITATION TECHNOLOGIES, INC.

By: ____________________________________

   Name:

   Title:

   Date:

The above and foregoing SITE USER LICENSE AGREEMENT

   Is HEREBY AGREED TO and ACCEPTED as of this ___ day

   of ____________, 2010.

[FULL NAME OF SITE USER]

By: ___________________________________

   Name:

   Title:

                                    Exhibit B - Page 8

  Technology License, Marketing & Collaboration Agreement 

EXHIBIT A TO SITE USER LICENSE

                   MONTHLY ROYALTY DETERMINATION

[Performance Royalty Model To Be Inserted]

                                    Exhibit B - Page 9

  Technology License, Marketing & Collaboration Agreement 

EXHIBIT B TO SITE USER LICENSE

                   FORM OF ROYALTY ADDENDUM

This ROYALTY ADDENDUM ("Addendum"), dated and made effective as of
_____________, ____, is executed by and between CAVITATION TECHNOLOGIES, INC., a Nevada corporation ("CTI"),
and XYZ CORPORATION, a ____________ corporation ("XYZ"), pursuant to Section 11 of that certain Site User
License Agreement, dated as of _____________, previously entered into by and between CTI and XYZ (the "User
License").  (the parties herein referred to as a "Party" or Parties").

In accordance with the requirements of Section 11 of the User License, and intending for this Addendum to
confirm and memorialize the Effective Date and the Monthly Royalty for purposes of such User License, the Parties hereby amend the
User License as follows:

1.  Effective Date.  The Equipment was delivered to the Facility and accepted by Site User on
_________, 2010.  Accordingly, for purposes of the User License, including the date on which the first payment of the Monthly Royalty
is due and payable, the Effective Date shall be and is _________, 2010.  

2.  Established Savings.   Based on the provisions contained in Section 11 of the User License
and the procedures and criteria set forth in the Performance Royalty Model attached thereto as Exhibit A, CTI and Site User confirm the
following:

(a)  The Established Savings, calculated as a fixed amount to determine the amount of the Monthly
Royalty, is ___________ Dollars and ______________ Cents ($ __________); and 

(b)  The Monthly Royalty payable by Site User to CTI each month during the term of the User License
(including both the Primary Term and any Renewal Term(s), equals ___________________ Dollars and ________ Cents ($
___________).    

The Parties agree that the User License is valid and is fully enforceable and, with the modifications and
amendment thereof in this Addendum, shall continue in accordance with its terms.  

IN WITNESS WHEREOF, each Party represents that the person executing this Addendum on its behalf is
fully authorized to bind such Party to the matters herein and has executed this Addendum as an officer or duly authorized
representative of such Party as of the date written below.     

	
CAVITATION TECHNOLOGIES, INC.

By: ________________________________

Name:

Title:

Date:
	 	
XYZ CORPORATION

By: ________________________________

Name:

Title:

Date:

                                    Exhibit B - Page 10

  Technology License, Marketing & Collaboration Agreement 

EXHIBIT C

                   LICENSOR'S TECHNICAL 

                   ASSISTANCE/SUPPORT - RATES

  Technology License, Marketing & Collaboration Agreement 

EXHIBIT C

                   LICENSOR'S TECHNICAL ASSISTANCE/SUPPORT - RATES

Technical assistance and support provided by Licensor from time to time under the provisions of Article V of this Agreement
shall be charged at the rate of $ 125 per hour, together with payment or reimbursement of costs and expenses as specified therein.

                                    Exhibit C - Page 1

  Technology License, Marketing & Collaboration Agreement 

EXHIBIT D

                   LICENSE FEES & COMPONENT PRICES

  Technology License, Marketing & Collaboration Agreement 

EXHIBIT D

                   LICENSE FEES & COMPONENT PRICES

1.  License Fees.  The License Fees payable to Licensor with respect to each Licensed Reactor ordered by
Licensee under the terms of the Agreement and licensed to Site Users under a Site User License shall be calculated based on the
model and quantity of the Reactors requested by Licensee in the Purchase Order and the purposes, processes and applications for
which the Nano Reactor Unit that incorporates the Reactors will be used or deployed at each Vegetable Oil Facility.  Accordingly, the
License Fees to be paid by Licensee to Licensor from time to time shall be determined as follows:

(a)  Nano NeutralizationTM.

	

Licensed Reactors (Model #'s)
	

Capacity
	

License Fee (per Reactor)

	

1.  Model:     20 GPM

2.  Model:     40 GPM

3.  Model:     60 GPM

 4.  Model:     100 GPM
	

[100 M/T per day]

[200 M/T per day]

[300 M/T per day]

[500 M/T per day]

 
	

License Fee for all the Reactors required to achieve the capacity shall equal $x per metric ton per day of capacity

(b)  Other Applications.  Licensee Fees for Reactors incorporated or integrated into Nano Reactor Units that will be
operated in connection with Other Applications at Facilities will be published from time to time by Licensor in its license fee and price
lists.

2.  Payment of License Fees.  The License Fees payable to Licensor with respect to each License Reactor included
in a Purchase Order shall be paid as follows:  Fifty percent (50%) at the time that Licensee submits a Purchase Order to Licensor with
respect to such Reactor(s), with the balance immediately due and payable upon delivery.

3.  Other Components; Prices.  Prices for components and parts for any Nano Reactor Unit  designed and
constructed by Licensee under this Agreement and ordered from Licensor shall be made available to Licensee from time to time in a
price list or other documentation provided by Licensor.  Terms of payment for other components shall be as follows:  Fifty percent
(50%) at the time that Licensee submits a Purchase Order to Licensor with respect to such components, with the balance immediately
due and payable upon delivery.

4.  Delivery Terms.  Unless otherwise agreed, delivery of all Reactors and other components shall be Ex Works
(place of manufacture) as defined in INCOTERMS 2000, with Licensee paying all shipping and related fees, costs and expenses.   

                                    Exhibit D - Page 1

  Technology License, Marketing & Collaboration Agreement 

EXHIBIT E

                   PERFORMANCE-BASED ROYALTY MODEL

                   NANO NEUTRALIZATIONTM

  Technology License, Marketing & Collaboration Agreement 

EXHIBIT E

                   PERFORMANCE-BASED ROYALTY MODEL

                   NANO NEUTRALIZATIONTM PROCESS

The Monthly Royalty payable under each Site User License authorizing use of the Nano
NeutralizationTM at a Facility shall be a fixed amount paid to Licensor on a monthly basis during the term of each Site User
License.  The Monthly Royalty shall equal forty percent (40%) of the Established Savings calculated under and pursuant to the
procedures and criteria set forth in this Model.  

A.  PERFORMANCE TESTING PROTOCOL

1.  Within fourteen (14) days following installation of the Nano NeutralizationTM process, Licensee and
Site User will jointly conduct a performance test to determine the Established Savings that exists between operating with the Facility's
existing process (Case 1) and operating with the Facility's existing process plus Nano NeutralizationTM (Case 2).  A test period
consisting of twenty-four (24) hours of continuous operation within +/- ten percent (10%) of the process rate defined in the Site User
License (each a "Test Period") will be conducted independently for Case 1 and Case 2. 

2.  Upon completing the Test Periods for Case 1 and Case 2, respectively, each of the following process factors
("Process Factors") will be measured:

	Neutralizing Oil Loss:  Determined by subtracting the total oil flow over 24 hours measured on
FT1163-2 from the total oil flow over 24 hours measured on FT1163-1. Units of measurement will be converted to metric tons per
day.

	Silica Use:  Determined by measuring the mass of silica used over the 24-hour test period. Units
of measurement will be converted to kg/day.

	Phosphoric Acid Use:  Determined by measuring the mass of phosphoric acid used over the 24-
hour test period. Units of measurement will be converted to kg/day.

	Caustic Use:  Determined by measuring the mass of silica used over the each (24 hour) Test
Period.  Units of measurement will be converted to kg/day.

	Steam Use:  Determined by measuring the increase in oil temperature and determining the
thermodynamic amount of steam required to heat the oil.  Units of measurements will be converted to metric tons per
day.

	Electricity Use:  Determined by adding up the connected power of all motors associated with acid pretreatment and/or
Nano NeutralizationTM.  Units of measurement will be converted to kwh/day.

B.  ESTABLISHED SAVINGS

1.  Weight-Based Savings.  The weight-based savings for each of the Process Factors will be determined as
follows:

	Daily Oil Yield Savings:  Case 1 oil loss - Case 2 oil loss;

                                    Exhibit E - Page 1

  Technology License, Marketing & Collaboration Agreement 

	Daily Silica Savings:  Case 1 silica use - Case 2 silica use;

	Daily Phosphoric Acid Savings:  Case 1 phosphoric acid use - Case 2 phosphoric acid use;

	Daily Caustic Savings:  Case 1 silica use - Case 2 silica use;

	Daily Steam Savings:  Case 1 steam use - Case 2 steam use;

	Daily Electricity Savings:*  Case 1 electricity use - Case 2 electricity use;

2.  Daily Savings Values.  The "Daily Savings Value" for each of the weight based savings shall be
determined as follows:

	Daily Oil Yield Savings Value:  Daily oil yield savings x $__/metric ton;

	Daily Silica Savings Value:  Daily silica savings x $__/kg;

	Daily Phosphoric Acid Savings Value:  Daily phosphoric acid savings x $__/kg;

	Daily Caustic Savings Value:  Daily caustic savings x $__/kg;

	Daily Steam Savings Value:  Daily steam savings x $__/metric ton;

	Daily Electricity Savings Value:  Daily electricity savings x $__/kwh;

3.  Total Daily Savings Value.  The "Total Daily Savings Value" equals the sum of the six (6) Daily Savings
Values (as determined in Paragraph B.2. above);

4.  Total Monthly Savings Value:  The "Total Monthly Savings Value" equals the Total Daily Savings Value
(as determined in Paragraph B.3. above) multiplied by 27;

5.  Established Savings.  The "Total Monthly Savings Value" (as determined in Paragraph B.5. above)
shall be the "Established Savings" for purposes of determining the Monthly Royalty during the term of each Site User
License.  

[NOTE:  The Established Savings and the Monthly Royalty shall be fixed for the Primary Term of each Site User License and will be
redetermined in accordance with the procedures and criteria contained in this Model at the beginning of any Renewal Term exercised
under the Site User License].

                                    Exhibit E - Page 2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00197-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00197-of-00352.parquet"}]]