Document:

Exhibit 10.42

 

PROMISSORY NOTE

 

	
  $23,600,000.00

  	
   

  	
  Chicago,
  Illinois

  
	
   

  	
   

  	
  February 9, 2006

  

 

FOR VALUE RECEIVED, MB LONGVIEW TRIANGLE, L.L.C., a Delaware limited
liability company,
having its principal place of business at 2901 Butterfield Road, Oak Brook,
Illinois 60523, a maker hereunder (referred to herein as “Borrower”),
hereby unconditionally promises to pay to the order of LASALLE BANK NATIONAL
ASSOCIATION, a national banking association, as payee, having an address at 135
South LaSalle Street, Suite 2905, Chicago, Illinois 60603 (“Lender”), or at such other place as
the holder hereof may from time to time designate in writing, the principal sum
of TWENTY-THREE MILLION SIX HUNDRED THOUSAND AND NO/100 DOLLARS ($23,600,000.00), in lawful money
of the United States of America with interest thereon to be computed from the
date of this Promissory Note at the Interest Rate, and to be paid in accordance
with the terms of this Promissory Note and that certain Loan Agreement, dated
as of the date hereof, by and between Borrower and Lender (the “Loan Agreement”).  All capitalized terms not defined herein
shall have the respective meanings set forth in the Loan Agreement.  This Promissory Note shall be the “Note” as defined in the Loan Agreement.

 

ARTICLE 1

 

PAYMENT
TERMS

 

Borrower agrees to pay interest on the unpaid
principal sum of this Note from time to time outstanding at the rates and at
the times specified in the Loan Agreement and the outstanding balance of the
principal sum of this Note and all accrued and unpaid interest thereon shall be
due and payable on the Maturity Date.

 

ARTICLE 2

 

DEFAULT
AND ACCELERATION

 

The Debt shall without notice become immediately due
and payable at the option of Lender if any payment required in this Note is not
paid on or prior to the date when due or if not paid on the Maturity Date or on
the happening of any other Event of Default.

 

ARTICLE 3

 

LOAN
DOCUMENTS

 

This Note is secured by the Mortgage and the other
Loan Documents.  All of the terms,
covenants and conditions contained in the Loan Agreement, the Mortgage and the
other Loan Documents are hereby made part of this Note to the same extent and
with the same force as if they were fully set forth herein.  In the event of a conflict or inconsistency
between the terms of this Note and the Loan Agreement, the terms and provisions
of the Loan Agreement shall govern.

 

 

ARTICLE 4

 

SAVINGS
CLAUSE

 

Notwithstanding anything to the contrary, (a) all agreements and
communications between Borrower and Lender are hereby and shall automatically
be limited so that, after taking into account all amounts deemed interest, the
interest contracted for, charged or received by Lender shall never exceed the
maximum lawful rate or amount, (b) in calculating whether any interest exceeds
the lawful maximum, all such interest shall be amortized, prorated, allocated
and spread over the full amount and term of all principal indebtedness of
Borrower to Lender, and (c) if through any contingency or event, Lender
receives or is deemed to receive interest in excess of the lawful maximum, any
such excess shall be deemed to have been applied toward payment of the
principal of any and all then outstanding indebtedness of Borrower to Lender,
or if there is no such indebtedness, shall immediately be returned to Borrower.

 

ARTICLE 5

 

NO
ORAL CHANGE

 

This Note may not be modified, amended, waived,
extended, changed, discharged or terminated orally or by any act or failure to
act on the part of Borrower or Lender, but only by an agreement in writing
signed by the party against whom enforcement of any modification, amendment,
waiver, extension, change, discharge or termination is sought.

 

ARTICLE 6

 

WAIVERS

 

Borrower and all others who may become liable for the
payment of all or any part of the Debt do hereby severally waive presentment
and demand for payment, notice of dishonor, notice of intention to accelerate,
notice of acceleration, protest and notice of protest and non-payment and all
other notices of any kind.  No release of
any security for the Debt or extension of time for payment of this Note or any
installment hereof, and no alteration, amendment or waiver of any provision of
this Note, the Loan Agreement or the other Loan Documents made by agreement
between Lender or any other Person shall release, modify, amend, waive, extend,
change, discharge, terminate or affect the liability of Borrower, and any other
Person who may become liable for the payment of all or any part of the Debt,
under this Note, the Loan Agreement or the other Loan Documents.  No notice to or demand on Borrower shall be
deemed to be a waiver of the obligation of Borrower or of the right of Lender
to take further action without further notice or demand as provided for in this
Note, the Loan Agreement or the other Loan Documents.  If Borrower is a partnership, the agreements
herein contained shall remain in force and applicable, notwithstanding any
changes in the individuals comprising the partnership, and the term “Borrower,”
as used herein, shall include any alternate or successor partnership, but any 

 

2

 

predecessor partnership
and their partners shall not thereby be released from any liability. If
Borrower is a limited liability company, the agreements herein contained shall
remain in force and applicable, notwithstanding any changes in the members
comprising the company, and the term “Borrower,” as used herein, shall include
any alternate or successor company, but any predecessor company shall not
thereby be released from any liability.  
If Borrower is a corporation, the agreements contained herein shall
remain in full force and applicable notwithstanding any changes in the
shareholders comprising, or the officers and directors relating to, the
corporation, and the term “Borrower” as used herein, shall include any
alternative or successor corporation, but any predecessor corporation shall not
be relieved of liability hereunder. 
(Nothing in the foregoing sentence shall be construed as a consent to,
or a waiver of, any prohibition or restriction on transfers of interests in
such entity which may be set forth in the Loan Agreement, the Mortgage or any
other Loan Document.)

 

ARTICLE 7

 

TRANSFER

 

Upon the transfer of this Note, Borrower hereby
waiving notice of any such transfer except as provided in the Loan Agreement,
Lender may deliver all the collateral mortgaged, granted, pledged or assigned
pursuant to the Loan Documents, or any part thereof, to the transferee who
shall thereupon become vested with all the rights herein or under applicable
law given to Lender with respect thereto, and Lender shall from that date
forward forever be relieved and fully discharged from any liability or
responsibility in the matter; but Lender shall retain all rights hereby given
to it with respect to any liabilities and the collateral not so transferred.

 

ARTICLE 8

 

EXCULPATION

 

The provisions of Section 9.4 of the Loan Agreement
are hereby incorporated by reference into this Note to the same extent and with
the same force as if fully set forth herein.

 

ARTICLE 9

 

GOVERNING
LAW

 

THIS NOTE SHALL BE DEEMED TO BE A
CONTRACT ENTERED INTO PURSUANT TO THE LAWS OF THE STATE OF ILLINOIS AND SHALL
IN ALL RESPECTS BE GOVERNED, APPLIED AND ENFORCED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF ILLINOIS, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES, AND
THE APPLICABLE FEDERAL LAWS.  BORROWER
HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY COURT OF COMPETENT
JURISDICTION LOCATED IN THE CITY OF CHICAGO AND STATE OF ILLINOIS IN CONNECTION
WITH ANY PROCEEDING OUT OF OR RELATING TO THIS NOTE.

 

3

 

ARTICLE 10

 

NOTICES

 

All notices or other written communications hereunder
shall be delivered in accordance with Section 10.6 of the Loan Agreement.

 

[Signature Page to Follow]

 

4

 

IN WITNESS WHEREOF,
Borrower has duly executed this Note as of the day and year first above
written.

 

	
   

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  MB
  LONGVIEW TRIANGLE, L.L.C., a 

  Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Minto Builders
  (Florida), Inc., a Florida 

  corporation, its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Debra Palmer

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Debra Palmer

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Assistant SecretaryExhibit 10.1 - Joint Development Agreement

    MILLENNIUM
      CELL INC. and GECKO ENERGY TECHNOLOGIES, INC.

     

    JOINT
      DEVELOPMENT AGREEMENT

     

    THIS
      JOINT DEVELOPMENT AGREEMENT (this
      “Agreement”)
      is
      made and entered into on this 15th day of February, 2006 (the “Effective
      Date”)
      by and
      between GECKO ENERGY TECHNOLOGIES, INC., a Delaware corporation (“Gecko”),
      and
      MILLENNIUM CELL INC., a Delaware corporation (“MCEL”).
      Gecko
      and MCEL also may be referred to herein individually as a “Party”
      or
      collectively as the “Parties.”

     

    Recitals

     

    WHEREAS,
      MCEL has technology which includes expertise in the design, manufacturing,
      and
      development of various means for chemically producing hydrogen gas and
      delivering said hydrogen gas for conversion to power, and part of this
      technology includes various know-how, patent rights and other intellectual
      property rights associated with such means;

     

    WHEREAS,
      Gecko has expertise in the design, manufacturing, and development of planar
      fuel
      cells and
      a
      non-exclusive license to various intellectual property, including various
      patents and know-how, in the field of fuel cells;

     

    WHEREAS,
      MCEL and Gecko wish to pursue their respective businesses in an environment
      of
      mutual assistance and to work together to develop planar fuel cell products
      and
      systems which embody and/or are developed from synergistic applications of
      the
      combined expertise of the Parties;

     

    WHEREAS,
      the Parties entered into an Amended and Restated Term Sheet Agreement, dated
      as
      of December 15, 2005 (the “Term Sheet”), pursuant to which, among other things,
      the Parties outlined the terms of a proposed joint development arrangement
      designed to accelerate product development through a combination of
      complementary technologies, improve customer proposition, and optimize resources
      through co-localization of facilities at MCEL’s premises; and

     

    WHEREAS,
      pursuant to the Term Sheet, Gecko agreed to perform certain Interim Activities
      (as defined therein) to the satisfaction of MCEL, to use its best efforts to
      assemble and demonstrate an operational unit/strip cell, and to develop a
      Business Plan that is satisfactory to MCEL, as a condition precedent to entering
      into this Agreement.

     

    NOW,
      THEREFORE, in consideration of the foregoing and the mutual covenants and
      agreements contained herein, the Parties agree as follows:

     

    
      	1.  	
              Definitions

            

    

     

    
      	1.01  	
              “Affiliate(s)”
                means,
                with respect to any Party, any person
                or
                entity which, directly or indirectly, controls, is controlled by,
                or is
                under common control with such Party, including, without limitation,
                any
                partner, officer, director, or member of such Party. For the purposes
                of
                this definition, “control”, as used with respect to any person or entity,
                means the possession, directly or indirectly, of the power to direct
                or
                cause the direction of the management or policies of such person
                or
                entity, whether through the ownership of voting securities, by agreement
                or otherwise).

            

    

     

    
      	1.02  	
              “Bankruptcy
                Event” means, with respect to a Party, any (i) assignment by such
                Party for the benefit of creditors, (ii) application by such
                Party
                for the appointment of a trustee, liquidator, receiver or custodian
                of any
                substantial part of such Party’s assets, (iii) filing of a petition
                or commencement of a proceeding by such Party relating to itself
                under any
                bankruptcy, reorganization, arrangement or similar law, (iv) filing
                of a
                petition or commencement of a proceeding under any bankruptcy,
                reorganization, arrangement or similar law against such Party where
                either
                (A) such Party has effectively given its consent or (B) such
                proceeding has continued undischarged and unstayed for a period of
                sixty
                (60) days.

            

    

     

    
      	1.03  	
              “Chemical
                Hydride Fuel System” means any system, apparatus or method for making
                chemical hydrides and/or converting chemical hydrides either directly
                to
                electricity or to hydrogen.

            

    

     

    
      	1.04  	
              “Confidential
                Information” means all technical or business information or samples or
                prototypes disclosed under this Agreement or the Term Sheet by one
                Party
                to the other and which is labeled “Confidential”, “Proprietary”, “Secret”
                or the like or is confirmed in writing by one Party to the other
                as
                provided in Article VII below. All technical or business information
                developed under this Agreement directed to MCEL’s Field shall be the
                Confidential Information of MCEL. All technical or business information
                developed under this Agreement directed to Gecko’s Field shall be the
                Confidential Information of Gecko. All
                technical or business information developed under this Agreement
                directed
                to the Integration Field shall be the Confidential Information of
                both
                parties. All technical or business information developed under this
                Agreement directed to fields other than MCEL’s Field, Gecko’s Field and
                the Integration Field shall be the Confidential Information of both
                parties unless otherwise agreed to in writing by both
                parties.

            

    

     

    
      	1.05  	
              “Definitive
                Agreements” means this Agreement, the Stock Purchase Agreement, the
                Stockholders Agreement and the Employment
                Agreements.

            

    

     

    
      	1.06  	
              “Employment
                Agreements” means the Employment Agreements dated as of the date hereof
                between Gecko and each of Ronald J. Kelley (“Kelley”)
                and Steven D. Pratt (“Pratt”).

            

    

     

    
      	1.07  	
              “Fuel
                Cartridge” means any apparatus which stores the fuel components for
                generating hydrogen and which may include components of hydrogen
                generation systems to produce and deliver hydrogen that is replaceable
                and/or disposable.

            

    

     

    
      	1.08  	
              “Fuel
                Cell” means any substantially planar and passive electrochemical apparatus
                which converts hydrogen and an oxidant into
                electricity.

            

    

     

    
      	1.09  	
              “Gecko
                Know-How” means all Know-How directed to Gecko’s Field that is owned or
                controlled by Gecko at the Effective Date of this Agreement with
                (i) the
                right to grant further rights by sublicenses or (ii) the right to
                make,
                have made, or sell products embodying or developed from such Know
                How.

            

    

     

    
      	1.10  	
              “Gecko
                Patent Rights” means all of the legal rights conferred upon Gecko under
                all patents and patent applications, foreign and domestic, which
                patent
                and patent applications are based upon an invention conceived or
                reduced
                to practice any time prior to the Effective Date of this Agreement
                and
                under which Gecko has (i) the right to grant further rights by sublicenses
                or (ii) the right to make, have made, or sell products embodying
                or
                developed from such patents or patent
                applications.

            

    

     

    
      	1.11  	
              “Gecko’s
                Field” designates (a) the field of Fuel Cells, and (b) packaging
                methods, control strategies and containers related to Fuel
                Cells.

            

    

     

    
      	1.12  	
              “Hydrogen
                On Demand” designates means and methods for producing or generating
                hydrogen gas chemically from sodium borohydride or other boron hydrides
                and delivering hydrogen gas.

            

    

     

    
      	1.13  	
              “Integration
                Field” refers to (i) the combination of a Fuel Cell with the engagement
                mechanisms and physical arrangement (e.g., visual, physical, tangible
                and
                aesthetic parameters) of the interface for the integration and
                interconnection of Fuel Cell to a Chemical Hydride Fuel System and/or
                a
                Fuel Cartridge or other means for the delivery of hydrogen gas to
                the Fuel
                Cell and (ii) the interaction or functions of components of a Fuel
                Cell,
                Chemical Hydride Fuel System, and a Fuel Cartridge to ensure safe,
                reliable and efficient generation and delivery of hydrogen gas to
                the fuel
                cell. The said interface enables transfer of mass or energy including
                fluid, electrical and data exchange and includes the integration
                and
                interconnection and related control strategies for the interconnection
                of
                hydrogen fuel cells and chemical
                hydride hydrogen
                fuel generators for the delivery of hydrogen gas to the fuel
                cell.

            

    

     

    
      	1.14  	
              “Integration
                Field Rights” means all patent rights, Know-How, and other rights and
                interest of any kind relating to the Integration Field, first conceived,
                first created, first developed or first reduced to practice by either
                Party under the Term Sheet or this
                Agreement.

            

    

     

    
      	1.15  	
              “Know-How”
                means all factual knowledge and proprietary information including
                trade
                secrets, whether or not capable of precise separate description,
                but which
                alone or when accumulated confer upon one acquiring it an ability
                to
                study, test, produce, manufacture and/or market something which one
                otherwise would not have known to study, test, produce, manufacture,
                and/or market in the same way.

            

    

     

    
      	1.16  	
              “MCEL
                Know-How” means all Know-How directed to MCEL’s Field that is owned or
                controlled by MCEL at the Effective Date of this Agreement with the
                right
                to grant further rights by
                sublicenses.

            

    

     

    
      	1.17  	
              “MCEL
                Patent Rights” means all of the legal rights conferred upon MCEL under all
                patents and patent applications, foreign or domestic, which patents
                and
                patent application are based upon an invention conceived or reduced
                to
                practice at any time prior to the Effective Date of this Agreement
                and
                under which MCEL has the right to grant further rights by
                sublicenses.

            

    

     

    
      	1.18  	
              “MCEL’s
                Field” designates (i) the field of Chemical Hydride Fuel Systems,
                including Hydrogen On Demand and the Fuel Cartridge, and covers utilizing
                Hydrogen On Demand technology to generate hydrogen gas, (ii) all
                packaging
                methods, control
                strategies, and, containers related to Hydrogen On Demand technology,
                Fuel
                Cartridges, and Chemical Hydride Fuel Systems, and, (iii) formulations,
                packaging methods, containers and manufacturing technology related
                to
                chemical
                hydride fuels.

            

    

     

    
      	1.19  	
              “Project
                Technology” or “Project Technology Rights” means all inventions, patents
                and patent rights, Know-How, or other developments first conceived,
                first
                designed, first created, first developed or first reduced to practice
                by a
                Party during the term of this Agreement or under or as part of the
                Term
                Sheet or the Statement of Work, including but not limited, to technology
                within the scope of the Integration Field. Project Technology does
                not
                include any inventions, Know-How or other developments developed
                solely by
                MCEL, solely by a third party or jointly by MCEL and a third party
                outside
                the Joint Development Program as defined in Article II. Project
                Technology does not include any inventions, Know-How or other developments
                developed solely by a third party or jointly by Gecko
                and a third party outside the Joint Development Program as defined
                in
                Article II.

            

    

     

    
      	1.20  	
              “Services”
                has the meaning set forth in Section 2.02. For purposes of
                Article III of this Agreement, the Services shall be valued
                at
                $500,000 per year effective as of the first day of each calendar
                year
                during the term of this Agreement.

            

    

     

    
      	1.21  	
              “Statement
                of Work” means a complete written description of the joint development
                program which shall be based at least in part on the Business Plan
                of the
                Term Sheet and may include the following: (i) specifically identified
                tasks to be performed by Gecko; (ii) a timetable for completion of
                such
                tasks; and (iii) a description of the materials, ingredients or
                compositions, if any, to be delivered by Gecko to MCEL at the completion
                of each task. The Statement of Work is initially described in Appendix
                A
                (hereto attached). The Statement of Work may be amended from time
                to time
                in writing by the Parties pursuant to
                Article IX.

            

    

     

    
      	1.22  	
              “Steering
                Committee” means a management group made up of at least two (2)
                representatives from each Party as defined in Article 
                IX.

            

    

     

    
      	1.23  	
              “Stockholders
                Agreement” means the Stockholders Agreement dated as of the date hereof
                among Gecko, MCEL, Kelley and
                Pratt.

            

    

     

    
      	1.24  	
              “Stock
                Purchase Agreement” means the Stock Purchase Agreement dated as of the
                date hereof between Gecko and MCEL.

            

    

     

     

    
      	2.  	
              Joint
                Development Program

            

    

     

    
      	2.01  	
              From
                the Effective Date of this Agreement, the Parties shall conduct a
“Joint
                Development Program” to, among other things as specified herein and in the
                Statement of Work attached hereto, develop planar fuel cell products
                and
                associated fuel systems and/or ancillary equipment and technology.
                The
                term of the Joint
                Development Program
                shall commence on the Effective Date of this Agreement and continue,
                unless terminated or extended as set forth below, until December
                31, 2008.
                The term of the Joint Development Program can be extended or terminated
                by
                agreement of the Parties in writing, or terminated by termination
                of this
                Agreement in accordance with
                Article XIII.

            

    

     

    
      	2.02  	
              MCEL
                will provide the following services and facilities (the “Services”)
                to support Gecko’s operations: (1) Finance and Accounting: accounts
                payable, accounts receivable and bookkeeping services; (2) Information
                Technology: infrastructure and support (e.g., networking, application
                environment); (3) Human Resources and Administration (e.g., hiring
                staff
                (excluding recruiting fees and commissions), benefits, payroll);
                (4)
                Facilities: To be mutually determined, MCEL will provide appropriate
                lab
                and office space (not to exceed 5,000 square feet at any time) in
                MCEL’s
                facility in Eatontown, New Jersey; (5) Business Development: assistance
                regarding market definition, reasonable access to key original equipment
                manufacturers and trade show support (excluding trade show fees and
                equipment); (6) Government Programs: access to MCEL’s lobbying firm and
                MCEL government staff in addition to military agency access through
                ex-agency personnel on retainer to MCEL; (7) Intellectual Property
                Management: With the prior approval of MCEL, MCEL staff will be available
                to manage the process of invention disclosure through the prosecution
                of
                patent applications, assess competitive threats and other reasonable
                IP
                management activities (excluding legal fees and expenses); (8) Public
                Relations: MCEL staff will provide assistance in the management of
                PR
                activities and will provide, at the appropriate time, access to investors;
                and (9) Chemistry/Engineering: At the sole discretion of MCEL, access
                to
                MCEL’s technical staff and to The Dow Chemical Company’s (“Dow
                Chemical”)
                technical expertise, consistent with the requirements of MCEL’s Joint
                Development Arrangement with Dow Chemical. However, MCEL shall have
                no
                obligation to provide to Gecko more than 2 full time equivalent headcount
                at any time. Any incremental costs incurred by MCEL during the performance
                of such Services are the express responsibility of Gecko; provided,
                that any single cost, or series of related costs, that exceeds $2,000
                shall require Gecko’s written consent. Following the term of this
                Agreement, MCEL may continue to provide services (or any combination
                of
                services and facilities that is agreed on) to Gecko at a mutually
                agreeable rate.

            

    

     

    
      	2.03  	
              During
                the Joint Development Program, Gecko shall use its best efforts,
                including
                without limitation, hiring additional staff, to
                fulfill its obligations under the Statement of Work and to design,
                construct, test, and commercialize planar fuel cell products using
                Gecko Know-How and Gecko Patent Rights in accordance with the Statement
                of
                Work. Gecko will not take any action that is inconsistent with or
                contrary
                to the Statement of Work.

            

    

     

    
      	2.04  	
              MCEL
                shall provide for use in the Joint Development Program MCEL Know-How,
                MCEL
                Patent Rights, and Project Technology Rights that are necessary and
                sufficient to allow MCEL and Gecko to carry out the objectives of
                the
                Joint Development Program.

            

    

     

    
      	2.05  	
              Gecko
                shall provide for use in the Joint Development Program Gecko Know-How,
                Gecko Patent Rights, and Project Technology Rights that are necessary
                and
                sufficient to allow MCEL and Gecko to carry out the objectives of
                the
                Joint Development Program.

            

    

     

    
      	2.06  	
              The
                Parties’ Patents, Parties’ Know-How, and Project Technology are provided
                under this Agreement on an “as is” basis for use by each Party in
                accordance with the terms of this Agreement at the using Party’s sole risk
                and responsibility. Express or implied warranties, including but
                not
                limited to the implied warranties or merchantability and fitness
                for a
                particular purpose, are excluded hereunder. Unless expressly set
                forth
                herein, neither Party makes any warranty, expressed or implied, as
                to the
                accuracy, safety, or utility of any of the Parties’ Patents, Parties’
                Know-How, and Project Technology.

            

    

     

     

    
      	3.  	
              Financial
                Provisions.

            

    

     

    
      	
              3.01

            	
              First
                Year Financings.

            

    

     

    
      	(a)  	
              Interim
                Funding Amount.
                The Parties acknowledge and agree that MCEL has provided funding
                to Gecko
                in an aggregate amount equal to $100,000 (the “Interim
                Funding Amount”)
                in fulfillment of MCEL’s obligation to provide funding for the Interim
                Activities pursuant to the Term Sheet. Except as otherwise specified
                in
                this Agreement, Gecko acknowledges that MCEL is not obligated to
                provide
                any additional funding or materials in connection with the Interim
                Activities.

            

    

     

    
      	(b)  	
              First
                Closing Amount.
                At the First Closing (as defined in the Stock Purchase Agreement),
                MCEL
                shall pay to Gecko $350,000 in cash. In exchange for such amount,
                the
                Interim Funding Amount and the Services with respect to the first
                calendar
                year following the date of the First Closing (collectively, the
                “First
                Closing Amount”),
                Gecko shall issue to MCEL at the First Closing, pursuant to the terms
                and
                subject to the conditions set forth in the Stock Purchase Agreement,
                59.0673 shares of Gecko’s common stock, no par value (“Common
                Stock”),
                which amount shall represent a percentage of the outstanding capital
                stock
                of Gecko determined by multiplying 48.00% by a fraction, (A) the
                numerator of which is the value of the First Closing Amount and
                (B) the denominator of which is
                $2,000,000.

            

    

     

    
      	(c)  	
              Additional
                First Year Financings.
                On or prior to December 31, 2006, MCEL or its assignee shall provide
                additional financing (each, an “Additional
                First Year Financing”)
                to Gecko in an aggregate amount that, when added to the First Closing
                Amount, shall equal $2,000,000. MCEL may provide any such Additional
                First
                Year Financing in the form of (i) cash, (ii) shares
                of common
                stock, par value $.001 per share, of MCEL which are tradable in accordance
                with the provisions of Rule 144 promulgated under the Securities
                Act
                of 1933, as amended (the “Securities
                Act”),
                as such provisions apply to securities other than restricted securities
                (“MCEL
                Stock”),
                which shares of MCEL Stock shall be valued in accordance with
                Section 3.01(d), or (iii) both cash and shares of MCEL
                Stock.
                Contemporaneously with the provision of each Additional First Year
                Financing by MCEL, or at such other time as the Parties shall otherwise
                agree, the Parties shall conduct a closing (each, an “Additional
                First Year Closing”).
                MCEL shall consider in good faith Gecko’s cash flow needs in determining
                the timing and amount of each Additional First Year Financing. At
                each
                Additional First Year Closing, pursuant to the terms and subject
                to the
                conditions set forth in the Stock Purchase Agreement, in exchange
                for all
                Additional First Year Financings provided by MCEL to Gecko since
                the First
                Closing or the immediately preceding Additional First Year Closing,
                as the
                case may be, Gecko shall issue to MCEL an amount of additional shares
                of
                Common Stock representing a percentage of the outstanding capital
                stock of
                Gecko determined by multiplying 48.00% by a fraction, (A) the
                numerator of which is the value of all Additional First Year Financings
                provided by MCEL to Gecko since the First Closing or the immediately
                preceding Additional First Year Closing, as the case may be, and
                (B) the denominator of which is
                $2,000,000.

            

    

     

    
      	(d)  	
              Valuation
                of Shares of MCEL Stock Used in Financings.
                MCEL will not issue shares of MCEL Stock hereunder unless the resale
                of
                such shares is covered by an effective registration statement or
                by an
                applicable exemption from the registration requirements of the Securities
                Act. The value of any MCEL Stock issued in connection with any financing
                hereunder will be measured by the proceeds earned by Gecko as a result
                of
                the sale(s) of such MCEL Stock. MCEL Stock issued pursuant to this
                Agreement may only be sold by Gecko to fund its operations in connection
                with the Joint Development Program. Gecko shall use commercially
                reasonable efforts to sell its shares of MCEL Stock for the highest
                possible price per share and shall comply with all applicable securities
                laws relating to any sale of MCEL Stock. Within thirty (30)
                days
                following the end of each calendar quarter during the term of this
                Agreement, the Parties shall compare the proceeds of the sale(s)
                of MCEL
                Stock by Gecko during the immediately preceding calendar quarter
                to the
                portion of the financing that MCEL was required to fund in the form
                of
                such sold shares of MCEL Stock. To the extent that the proceeds of
                the
                sale(s) of MCEL Stock by Gecko are less than the portion of the financing
                that MCEL was required to fund in the form of MCEL Stock, MCEL agrees
                to
                promptly pay Gecko the amount of such deficit in cash or additional
                shares
                of MCEL Stock. To the extent that the proceeds of the sale(s) of
                such MCEL
                Stock by Gecko are in excess of the portion of the financing that
                MCEL was
                required to fund in the form of MCEL Stock, MCEL will have the option
                to
                require Gecko to promptly pay such excess amount to MCEL in cash
                or to
                apply such excess amount to the next Additional First Year Financing
                or to
                exercise a part of the Purchase Option (as defined and described
                in
                Section 3.02), if any. It is understood and agreed by the
                Parties
                that all of the reasonable costs of registration and sale by Gecko
                of the
                MCEL Stock (including with respect to state securities laws filings,
                if
                any, but excluding broker’s commissions) shall be borne solely by MCEL,
                except to the extent that the actions of Gecko contribute to such
                costs.
                

            

    

     

    
      	(e)  	
              Registration
                Statements With Respect To MCEL Stock.
                With respect to any registration statement (each, a “Registration
                Statement”)
                to be prepared for filing with the Securities and Exchange Commission
                by
                MCEL covering (i) the sale of MCEL Stock to Gecko in connection
                with
                any Additional First Year Financing or any exercise of the Purchase
                Option
                or (ii) the subsequent sale of such shares of MCEL Stock,
                Gecko shall
                furnish to MCEL such information regarding Gecko, shares of Gecko
                Common
                Stock to be issued to MCEL hereunder, and the intended method of
                disposition by Gecko of MCEL Stock received hereunder, as shall be
                reasonably required to effect any Registration
                Statement.

            

    

     

    
      	
              3.02

            	
              Purchase
                Option at Election of MCEL.

            

    

     

    
      	(a)  	
              MCEL
                Purchase Option.
                MCEL shall have an option (a “Purchase
                Option”),
                exercisable in accordance with the procedures set forth in this
                Section 3.02, to acquire additional shares of Gecko Common
                Stock
                representing up to an additional 32.00% of Gecko’s then outstanding
                capital stock (i.e.,
                MCEL’s aggregate ownership of the then outstanding capital stock of Gecko
                may be increased up to a maximum of 80%, subject to Section 3.04),
                at
                an exercise price equal to the then fair market value of the Gecko
                Common
                Stock determined in accordance with Section 3.02(b) (the
                “Exercise
                Price”).
                Subject to the terms of this Section 3.02, the Exercise Price
                shall
                be paid in the form of (w) cash, (x) shares of MCEL
                Stock valued
                in accordance with Section 3.01(d), (y) Services performed
                by
                MCEL hereunder, or (z) a combination of the foregoing, in
                the sole
                discretion of MCEL. To the extent that MCEL has elected to exercise
                the
                Purchase Option in accordance with Section 3.02(b), each quarterly
                installment payment of the Purchase Option will be in a minimum amount
                of
                cash and/or shares of MCEL Stock equal to $375,000 (the “Minimum
                Exercise Amount”).
                If MCEL makes an installment payment of the Purchase Option during
                any
                calendar quarter of calendar years 2007 and 2008 in an amount of
                cash
                and/or shares of MCEL Stock in excess of the Minimum Exercise Amount,
                then
                the Minimum Exercise Amount required for the immediately following
                calendar quarter(s) shall be reduced by the amount of such excess.
                In
                connection with the first exercise of the Purchase Option in each
                of
                calendar years 2007 and 2008, if any, a portion of the Exercise Price
                payable at the Purchase Option Closing (as defined below) with respect
                to
                such exercise shall be comprised of the value of MCEL’s performance of the
                Services for such entire calendar year (i.e.,
                $500,000); provided,
                however,
                that if MCEL elects not to exercise the Purchase Option with respect
                to
                the second, third and fourth calendar quarters of 2007 pursuant to
                Section 3.02(b), then Gecko shall have a right to require
                MCEL to
                surrender to Gecko an amount of the shares of Common Stock sold to
                MCEL at
                such Purchase Option Closing in respect of such Services equal to
                the
                percentage of such Services that are ultimately not rendered by MCEL
                to
                Gecko (taking into account the extent to which Gecko exercises any
                right
                hereunder to continue to receive certain Services and facilities
                from MCEL
                after the termination of this Agreement or the ceasing of funding
                by
                MCEL). Notwithstanding the foregoing, to the extent that MCEL acquires
                80%
                (subject to Section 3.04) of the outstanding capital stock
                of Gecko
                on a fully diluted basis pursuant to this Agreement for less than
                (i) a total of $4,500,000 in cash and/or shares of MCEL Stock
                (including the First Closing Amount and the Additional First Year
                Financings) and (ii) the performance of the Services until
                December
                31, 2008, MCEL shall (A) pay to Gecko, as a contribution to
                capital,
                the amount by which $4,500,000 exceeds the value of the cash and
                shares of
                MCEL Stock paid or issued by MCEL to Gecko in exchange for 80% (subject
                to
                Section 3.04) of the outstanding capital stock of Gecko, which
                payment shall be made by MCEL in cash or additional shares of MCEL
                Stock
                in the sole discretion of MCEL, and (B) perform the Services
                for
                Gecko until December 31, 2008; provided,
                however,
                that MCEL shall receive no additional equity ownership in Gecko for
                the
                payment of such excess amount or the performance of the Services
                as
                provided in clauses (A) and (B) above.

            

    

     

    
      	(b)  	
              Exercise
                of Purchase Option; Exercise Price.
                On or prior to September 30, 2006, MCEL shall provide written notice
                to
                Gecko stating whether or not MCEL elects to exercise the Purchase
                Option
                with respect to the first calendar quarter of 2007. On or prior to
                December 31, 2006, MCEL shall provide written notice to Gecko
                stating
                whether or not MCEL elects to exercise the Purchase Option with respect
                to
                the second, third and fourth calendar quarters of 2007. On or prior
                to
                September 30, 2007, MCEL shall provide written notice to Gecko stating
                whether or not MCEL elects to exercise the Purchase Option with respect
                to
                calendar year 2008. If MCEL elects not to exercise the Purchase Option
                with respect to the second, third and fourth calendar quarters of
                2007,
                then MCEL shall not be entitled to exercise the Purchase Option with
                respect to any period during calendar year 2008 without the prior
                unanimous written consent of the Board of Directors of Gecko. Each
                of the
                foregoing election notices (each, an “Option
                Exercise Notice”)
                shall include (i) the percentage of Gecko’s then outstanding Common
                Stock for which the Purchase Option will be exercised pursuant to
                such
                Option Exercise Notice, (ii) MCEL’s good faith determination of the
                Exercise Price for the Common Stock for which the Purchase Option
                will be
                exercised, and (iii) all necessary backup for MCEL’s calculation of
                the Exercise Price. If Gecko wishes to dispute MCEL’s determination of the
                Exercise Price as set forth in the Option Exercise Notice, Gecko
                must
                provide written notice thereof (the “Dispute
                Notice”)
                to MCEL no later than twenty (20) days following receipt of
                the
                Option Exercise Notice, which Dispute Notice shall also contain Gecko’s
                calculation of the Exercise Price and shall be accompanied by all
                necessary backup for Gecko’s determination of the Exercise Price. If MCEL
                and Gecko are unable to agree on the Exercise Price within a reasonable
                time, but in any event with twenty (20) days, following MCEL’s
                receipt of the Dispute Notice, MCEL and Gecko will jointly retain
                a bank
                from the list of experts set forth on Schedule 3.02(b)
                hereto (the “Banks”)
                to determine the Exercise Price within thirty (30) days of such retention,
                which determination shall be final and binding on MCEL and Gecko.
                The
                costs and expenses of such Bank shall be borne equally by MCEL and
                Gecko.
                

            

    

     

    
      	(c)  	
              Purchase
                Option Closings.
                With respect to each quarterly installment payment of the Purchase
                Option
                that MCEL has elected to make in accordance with Section 3.02(b),
                the
                Parties shall conduct a closing (each, a “Purchase
                Option Closing”).
                At each such Purchase Option Closing, pursuant to the terms and subject
                to
                the conditions set forth in the Stock Purchase Agreement, MCEL shall
                pay
                to Gecko the aggregate Exercise Price (payable in the form of cash,
                shares
                of MCEL Stock and/or, subject to the terms hereof, Services performed
                by
                MCEL hereunder) for the percentage of Gecko capital stock set forth
                in the
                Option Exercise Notice, in exchange for which Gecko shall issue to
                MCEL
                the amount of additional shares of Common Stock representing the
                percentage of Gecko capital stock for which the Purchase Option has
                been
                exercised.

            

    

     

    
      	(d)  	
              Purchase
                Option Freely Transferable; Survival of Purchase Option.
                MCEL’s rights with respect to the Purchase Option pursuant to this
                Section 3.02 shall be freely transferable by MCEL. MCEL’s right to
                exercise the Purchase Option shall survive any termination of this
                Agreement.

            

    

     

    
      	
              3.03

            	
              Financing
                Right of First Offer. If at any time during the term of this Agreement
                or
                after the expiration or termination of such term, Gecko proposes
                to
                conduct a third party financing (including, without limitation, the
                right
                to subscribe for any securities of Gecko), then Gecko shall deliver
                a
                written notice (a “Funding
                Notice”)
                to MCEL specifying the requested amount of such financing, the specific
                payment terms (deferred, contingent or otherwise) and other material
                terms
                and conditions of such financing. MCEL shall have a right, exercisable
                upon written notice to Gecko within thirty (30) days after MCEL’s receipt
                of the Funding Notice, to provide financing to Gecko in such manner
                and
                on
                the terms and conditions set forth in the Funding
                Notice
                or
                other terms and conditions mutually acceptable to Gecko and MCEL.
                Such
                financing shall be consummated pursuant to a written agreement in
                form and
                substance mutually acceptable to Gecko and MCEL. Provided that Gecko
                has
                not materially breached any representation, warranty, covenant or
                agreement on the part of Gecko set forth in this Agreement or such
                purchase agreement, if such financing has not been consummated as
                of the
                end of the sixtieth (60th)
                day (or if such sixtieth (60th)
                day is not a business day, then on the next succeeding business day)
                following the date of the Funding Notice, the Funding Notice shall
                be null
                and void, MCEL’s right to provide financing to Gecko pursuant to this
                Section 3.03 shall automatically terminate with respect to
                the
                financing described in such Funding Notice without any action on
                the part
                of any party, and Gecko may conduct a financing with a third party
                within
                sixty (60) days following such termination (or if such sixtieth
                (60th)
                day is not a business day, then on the next succeeding business day),
                for
                a price and upon other terms no more favorable than those specified
                in the
                Funding Notice. If Gecko has not consummated such financing within
                such
                sixty (60) day period, Gecko may not conduct a financing without
                again
                complying with this Section in its entirety. MCEL’s rights under this
                Section 3.03 shall survive any termination of this Agreement.
                MCEL’s
                rights under this Section 3.03 shall be in addition to, and
                not in
                limitation of, MCEL’s rights under Article VI of the Stockholders
                Agreement.

            

    

     

    
      	
              3.04

            	
              Gecko
                Benefit Plans. Any employee benefit plan of Gecko must be approved
                unanimously by the Board of Directors of Gecko. The parties agree
                that
                shares of Gecko Common Stock that are reserved for issuance under
                Gecko
                employee benefit plans will be dilutive to all of Gecko’s stockholders
                proportionately.

            

    

     

    
      	4.  	
              Intellectual
                Property.

            

    

     

    
      	4.01  	
              All
                MCEL Know-How and MCEL Patent Rights shall continue to be owned by
                MCEL
                and all Gecko Know-How and Gecko Patent Rights shall continue to
                be owned
                by Gecko. MCEL and Gecko shall jointly own Project Technology subject
                to
                the licenses set forth herein. Except for the licenses explicitly
                set
                forth herein, no other licenses are granted by implication or otherwise
                to
                the other Party under the above Patent Rights or
                Know-How.

            

    

     

     

    
      	4.02  	
              During
                the term of this Agreement, MCEL grants Gecko a nonexclusive license,
                without the right to sublicense, under MCEL Know-How and MCEL Patent
                Rights solely for use in carrying out Gecko’s responsibilities specified
                in the current Statement of Work under the Joint Development Program.
                

            

    

     

     

    
      	4.03  	
              During
                the term of this Agreement, Gecko grants to MCEL a nonexclusive license,
                without the right to sublicense, under Gecko Know-How and Gecko Patent
                Rights to the extent that Gecko has the right to license such Know
                How and
                Patent Rights. Such license to MCEL shall be solely for MCEL’s use in
                carrying out MCEL’s responsibilities under the Joint Development Program.
                With respect to all other Gecko Know How and Patent Rights, Gecko
                grants
                to MCEL the right to make products solely for Gecko using the Know
                How and
                Patent Rights. 

            

    

     

     

    
      	4.04  	
              With
                respect to all Project Technology, MCEL hereby grants to Gecko an
                exclusive (even as to MCEL), irrevocable, royalty-free, fully assignable,
                worldwide license, with the right to sublicense, with respect to
                all uses
                of all Project Technology in Gecko’s
                Field.

            

    

     

     

    
      	4.05  	
              With
                respect to all Project Technology, Gecko hereby grants to MCEL an
                exclusive (even as to Gecko), irrevocable, royalty-free, fully assignable,
                worldwide license, with the right to sublicense, with respect to
                all uses
                of all Project Technology in MCEL’s
                Field.

            

    

     

     

    
      	4.06  	
              With
                respect to all Project Technology that
                is developed solely by one Party and that is outside of the Integration
                Field and outside
                of the other Party’s Field, the developing Party shall have the right to
                apply, modify, reduce to practice, license, assign and otherwise
                develop
                and exploit such rights without the consent of and without accounting
                to
                the other Party.

            

    

     

     

    
      	4.07  	
              Gecko
                will not grant to any third party an exclusive or sole license to
                any
                Gecko Know-How, Gecko Patent Rights, Project Technology in Gecko’s Field
                without first offering MCEL the right (the “Offer”)
                to license the Gecko Know-How, Gecko Patent Rights, or Project Technology
                in Gecko’s Field on an exclusive basis for the same purposes and on
                commercially reasonable terms. The Offer so made must:

            

    

     

     

    
      	5.  	
              be
                in writing and must remain open for acceptance for a period of
                sixty (60) business days after the date on which it was
                made,

            

    

     

     

    
      	6.  	
              state
                that it is being made pursuant to the provisions of this Article
                4.07
                of
                this Agreement, and

            

    

     

     

    
      	7.  	
              set
                forth, in detail the terms and conditions of the proposed exclusive
                license, including, but not limited to, the term of such license
                and the
                royalties payable thereunder, such that upon acceptance of the Offer,
                an
                unconditional license agreement binding on both the parties would
                result.

            

    

     

     

    
      	4.08  	
              The
                Offer will be governed by the
                following:

            

    

     

     

    
      	1.  	
              MCEL
                can accept or reject the Offer in writing before the expiration of
                the
                period specified in 4.07(1);

            

    

     

     

    
      	2.  	
              if
                MCEL accepts the Offer, a binding license agreement will result on
                the
                terms and conditions specified in the
                Offer;

            

    

     

     

    
      	3.  	
              MCEL
                can propose a counteroffer (“Counteroffer”)
                before the expiration of the period specified in 4.07(1);

            

    

     

     

    
      	4.  	
              if
                Gecko accepts the Counteroffer, a binding license agreement will
                result on
                the terms and conditions specified in the
                Counteroffer;

            

    

     

     

    
      	5.  	
              if
                MCEL rejects the offer in writing or if Gecko rejects the Counteroffer
                in
                writing, Gecko may license the Gecko Know-How, Gecko Patent Rights,
                or
                Project Technology in Gecko’s Field on an exclusive basis to a third party
                but only on terms and conditions which, when considered as a whole,
                are no
                more favorable to such third party than those contained in the Offer;
                provided, however, that the provisions of 4.07 and 4.08 will again
                become
                applicable if no third party has signed a binding license agreement
                within
                sixty (60) days after the date that MCEL rejected the Offer
                or Gecko
                rejected the Counteroffer, on terms and conditions which, when considered
                as a whole, are no more favorable to such third party than those
                contained
                in the Offer or Counteroffer.

            

    

     

     

    
      	4.09  	
              Right
                of First Consideration: During the term of this Agreement, Gecko
                will not
                use a fuel technology without first offering MCEL the right (the
                “Fuel
                Technology Offer”)
                to provide Gecko with a fuel technology or the equivalent (“MCEL
                Fuel Technology”)
                on a non-exclusive basis for the same purposes. The Fuel Technology
                Offer
                must be made in good faith, and Gecko shall use its best efforts
                to use
                the MCEL Fuel Technology. Gecko agrees that, during the term of this
                Agreement, it will not use a chemical hydride fuel technology other
                than
                MCEL Fuel Technology in any products or services owned, operated,
                or
                controlled by Gecko or otherwise compete with the MCEL Fuel Technology
                without the express, written consent of MCEL. MCEL, at its sole
                discretion, may waive any or all of the requirements of this paragraph
                4.09 in writing. 

            

    

     

     

    
      	4.10  	
              Gecko
                shall utilize its best efforts to fulfill its obligations under this
                Agreement and the appended Statement of Work. 

            

    

     

     

    
      	8.  	
              Project
                Technology Rights.

            

    

     

    
      	5.01  	
              Each
                Party shall promptly disclose to the other Party all Project Technology
                made by them. In the event that one of the Parties desires to obtain
                a
                patent for such Project Technology, that Party must notify the other
                party
                in writing identifying the Project Technology and make known its
                desire,
                if any, to procure patent protection for such Project Technology.
                The
                other Party shall provide notice to the disclosing party in writing
                whether it elects to proceed with filing a patent within thirty (30)
                days
                of receiving notice from the disclosing Party. If the Parties mutually
                agree to procure patent protection for the identified Project Technology,
                the Parties shall for a period of up to three (3) months from the
                receipt
                of the notice each use reasonable efforts to establish a mutually
                agreeable procedure, in accordance with this Article, to procure
                and
                maintain patent protection and an allocation of costs and expenses
                associated therewith between the Party filing the application for
                patent
                (the “Filing
                Party”)
                and the other Party that agrees to support such filing (the “Non-Filing
                Party”).
                Both Parties will share equally in the reasonable out-of-pocket costs
                and
                expenses associated with the filing, prosecution and maintenance
                of these
                patent rights (“Patent
                Costs”)
                unless Gecko elects to use the “Deferred Cost Sharing” procedure in
                accordance with Section 5.02 below. Notwithstanding anything to the
                contrary herein above, for a period of three (3) months after a Party’s
                receipt of such notice, neither Party shall purposely act or fail
                to act
                as to preclude the procurement of patent protection for the identified
                Project Technology in any country of the
                world.

            

    

     

     

    
      	5.02  	
              If
                Gecko determines that it will support procuring patent protection
                for
                identified Project Technology, Gecko may elect to defer the payment
                of an
                equal share of the Patent Costs (“Gecko’s
                Patent Costs”)
                for such identified Project Technology for a period of up to one (1)
                year (“Deferred
                Cost Sharing”).
                If Gecko does not provide payment of Gecko’s Patent Costs within the
                Deferred Cost Sharing time period, then Gecko will be deemed to have
                determined that it will not support procuring patent protection for
                the
                identified Project Technology and the provisions of Section 5.03
                will
                apply to such identified Project Technology.

            

    

     

     

    
      	5.03  	
              If
                a Party determines that it will not support procuring patent protection
                for identified Project Technology(“Non-Proceeding
                Party”),
                and the other Party determines that it will support procuring patent
                protection for such identified Project Technology (“Proceeding
                Party”),
                then the Non-Proceeding Party shall cause its employees or agents
                who are
                inventors to execute the application and other papers for the patent
                in
                any country in which the Proceeding Party deems necessary and proper
                to
                file, it being understood that the Proceeding Party shall own, have
                sole
                charge of, and be solely responsible for the preparation and filing
                of
                such application for such patent, and shall bear all costs and expenses
                in
                connection therewith. The Non-Proceeding Party shall execute an assignment
                to vest ownership of the identified Project Technology in the Proceeding
                Party. Notwithstanding anything to the contrary in this Agreement,
                if the
                identified Project Technology is a sole invention of employees of
                the
                Non-Proceeding Party or is the invention of employees of both Parties,
                then the Non-Proceeding Party shall retain only a paid-up, worldwide,
                irrevocable, royalty-free, non-exclusive license, without the right
                to
                sublicense, to such identified Project Technology. If the identified
                Project Technology is the sole invention of employees of the Proceeding
                Party, then the Non-Proceeding Party shall retain no rights or ownership
                interest in such identified Project
                Technology.

            

    

     

     

    
      	5.04  	
              Unless
                otherwise agreed, each of the Parties shall require its respective
                employees to: (i) assign all of their rights and ownership in Project
                Technology Rights jointly to the Parties (or alternatively, require
                such
                employees to assign all of their rights and ownership in such Project
                Technology to their employer for reassignment jointly to the Parties);
                and
                (ii) assist without further compensation (except for reimbursement
                for
                reasonable and necessary expenses) a requesting Party in preparing
                and
                prosecuting patent applications on such Project Technology Rights
                throughout the world, and in transferring rights to the Parties (including
                executing documents) to patents and patent applications for such
                Project
                Technology Rights.

            

    

     

     

    
      	5.05  	
              Should
                a Non-Proceeding Party elect not to prepare and/or file any Project
                Technology Rights for an initial patent application (“Priority
                Application”),
                it shall (i) provide the other Party with written notice as soon
                as
                reasonably possible after making such election but in any event no
                later
                than sixty (60) days before a possible loss of rights, (ii) give
                the other
                Party the right, at the other Party’s election and sole expense, to
                prepare and file the Priority Application, and (iii) offer reasonable
                assistance to the Proceeding Party in connection with such preparation
                and
                filing at no cost to the Proceeding Party except for reimbursement
                of
                reasonable out-of-pocket expenses incurred by the Non-Proceeding
                Party in
                rendering such assistance. The Proceeding Party, at its sole discretion,
                shall own and prosecute such application(s) and shall maintain any
                patents
                derived therefrom. The Non-Proceeding Party shall execute an assignment
                to
                vest ownership of the identified Project Technology in the Proceeding
                Party.

            

    

     

     

    
      	5.06  	
              Within
                nine (9) months after the filing date of a Priority Application directed
                to a Project Technology Right, the Filing Party shall request that
                the
                Non-Filing Party identify those additional countries in which the
                Non-Filing Party desires that the Filing Party file corresponding
                patent
                applications. Within twenty (20) days of the receipt by the Non-Filing
                Party of such request from Filing Party, the Non-Filing Party shall
                provide to the filing Party a written list of such countries in which
                the
                Non-Filing Party wishes to effect corresponding foreign patent application
                filings. Thereafter, within twelve (12) months of the filing date
                of the
                Priority Application, the Filing Party shall effect such corresponding
                foreign filings in the countries selected by the Non-Filing Party
                (the
                filing in such foreign country being hereinafter referred to as a
                “Designated
                Foreign Filing”).
                Should the Filing Party not agree to file or cause to be filed a
                Designated Foreign Filing, within this twelve (12) month period,
                the
                Filing but Non-Proceeding Party within twenty (20) days after receiving
                the list from the Non-Filing Party will notify the Non-Filing Party,
                and
                the Non-Filing Party will have the right to effect such Designated
                Foreign
                Filing in its name as its own cost. That Party shall own the Designated
                Foreign Filing and the Filing but Non-Proceeding Party shall execute
                an
                assignment to vest ownership of the Designated Foreign Filing in
                the other
                party.

            

    

     

     

    
      	5.07  	
              Should
                the Filing Party no longer wish to prosecute and/or maintain any
                patent
                application or patent, the Filing Party shall (i) provide the Non-Filing
                Party with written notice of its wish no later than sixty (60) days
                before
                the patent or patent application would otherwise become abandoned,
                (ii)
                give the Non-Filing Party the right, at the Non-Filing Party’s election
                and sole expense, to prosecute and/or maintain such patent or patent
                application, (iii) offer reasonable assistance to the Non-Filing
                Party in
                connection with such prosecution and/or maintenance at no cost to
                the
                Non-Filing Party except for reimbursement of the Filing Party’s reasonable
                out-of-pocket expenses incurred by the Filing Party in rendering
                such
                assistance, and (iv) if the Non-Filing Party elects to proceed with
                the
                application, the Filing Party shall assign ownership of such patent
                application or patent to the Non-Filing
                Party.

            

    

     

     

    
      	9.  	
              Enforcement
                of Project Technology Rights

            

    

     

    
      	6.01  	
              If
                at any time during the term of this Agreement, either party to this
                Agreement, learns of any infringement by a third party of the Project
                Technology, the Party learning of the infringement will give written
                notice of such infringement to the other Party. Upon both Parties
                being
                informed of said infringement, the Parties will have ninety (90)
                days
                therefrom to mutually agree how to prosecute such infringement
                cooperatively. In the event that both Parties agree to cooperate
                in
                prosecuting the infringement, all costs and expenses of such action
                will
                be equally divided between the
                Parties.

            

    

     

     

    
      	6.02  	
              If
                no agreement under Article 6.01 can be reached between the Parties,
                the
                right of a Party to take action will depend upon in which field the
                infringement occurs;

            

    

     

     

    (a) if
      the
      infringement occurs in MCEL’s Field, then MCEL shall have the right, at its
      discretion, to take, at its own expense, whatever legal actions it deems
      necessary to enforce its rights against the infringing party and Gecko, who
      does
      not have the right to take this legal action, at the request of MCEL, shall
      render reasonable assistance;

     

     

    (b) if
      the
      infringement occurs in Gecko’s Field, then Gecko shall have the right, at its
      discretion, to take, at its own expense, whatever legal actions it deems
      necessary to enforce its rights against the infringing party and MCEL, who
      does
      not have the right to take this legal action, at the request of Gecko, shall
      render reasonable assistance; and

     

     

    (c) if
      the
      infringement occurs in a field outside of MCEL’s Field and Gecko’s Field, then
      either party shall have the right, at its discretion, to take, at its own
      expense, whatever legal actions it deems necessary to enforce its rights against
      the infringing party and the other party not taking this legal action, at the
      request of the party taking legal action, shall render reasonable
      assistance.

     

     

    
      	6.03  	
              When
                a Party brings suit under Articles 6.01 and 6.02, the Party bringing
                the
                suit shall give the other Party thirty (30) days prior written notice
                of
                said suit, including the name of the infringing third party, a copy
                of the
                complaint which the Party bringing suit wishes to file and evidence
                in the
                Party, bringing suit’s possession, supporting such infringement. The other
                Party will cooperate with the Party bringing suit to provide reasonable
                assistance related to the defense of any claim or suit under Articles
                6.01
                and 6.02, at the Party bringing suit’s expense. In all defenses of such
                claims and suits, the other Party shall have the right to be represented
                by counsel of its choice at its own expense. The Party bringing suit
                shall
                be responsible for all of the costs associated with the defense of
                the
                action as well as all of the other Party’s reasonable costs and attorneys’
                fees incurred in connection with the provision of assistance by the
                other
                Party directly or through its counsel, at the Party bringing suit’s
                request. The Party, bringing suit, may settle or otherwise terminate
                a
                suit, brought under Articles 6.01 and 6.02, without approval of the
                other
                Party provided that such settlement or termination does not adversely
                affect or impact the Project Technology Rights in the other Party’s Field.
                If such settlement or termination would adversely affect or impact
                the
                Project Technology Rights in the other Party’s Field, then approval of the
                other Party shall be required for any settlement or termination,
                which
                approval shall not be unreasonably
                withheld.

            

    

     

     

    
      	6.04  	
              Any
                recovery of damages, as a result of any legal action initiated under
                this
                Article VI shall be distributed to the Party bringing the
                action or
                if brought by both Parties, to the proportion of the costs, including
                time
                spent by a Party or its employees, of the legal action borne by each
                party
                respectively.

            

    

     

     

    
      	10.  	
              Confidential
                Information

            

    

     

    
      	7.01  	
              Each
                Party undertakes to keep secret Confidential Information received
                from the
                other Party. Each Party shall take all reasonable measures necessary
                for
                secrecy.

            

    

     

     

    
      	7.02  	
              The
                Parties agree not to disclose Confidential Information of the other
                Party
                or use Confidential Information of the other Party for any purpose
                except
                for carrying out the Joint Development
                Program.

            

    

     

     

    
      	7.03  	
              Any
                Confidential Information disclosed, in the first instance, orally
                or by
                other non-written means must be confirmed in writing within thirty
                (30)
                days of disclosure by the Party making the disclosure and be labeled
                “Confidential”, “Proprietary”, “Secret” or the like. Any written or
                electronically transmitted Confidential Information shall be labeled
                “Confidential”, “Proprietary”, “Secret” or the
                like.

            

    

     

     

    
      	7.04  	
              The
                term “Confidential
                Information”
                shall not include information, which is shown by written
                evidence:

            

    

     

     

    (a) to
      be
      already publicly known at the time of the disclosure;

     

     

    (b) to
      have
      become publicly known after disclosure except by breach of this
      Agreement;

     

     

    (c) to
      have
      already been in the receiving Party’s possession, without obligation of
      confidentiality or restriction on use;

     

     

    (d) to
      have
      been obtained without obligation of confidentiality or restriction on use,
      from
      a third party who is lawfully in possession of such information and who is
      not
      under a contractual or fiduciary obligation to a Party to this
      Agreement;

     

     

    (e) to
      have
      been required to be disclosed by an order of a court of competent jurisdiction
      provided that the Party that provided the information is given notice of such
      order in sufficient time to oppose and appeal such order.

     

     

    
      	7.05  	
              Confidential
                Information disclosed under this Agreement shall not be deemed to
                be
                within the foregoing exceptions merely because such information is
                embraced by more general information within the foregoing exceptions.
                In
                addition, any combination of features shall not be deemed to be within
                the
                foregoing exceptions merely because individual features are within
                the
                foregoing exceptions, but only if the combination itself and its
                principle
                of operation are within the foregoing
                exceptions.

            

    

     

     

    
      	7.06  	
              Confidential
                Information shall not be disclosed by the receiving Party except
                to:

            

    

     

     

    (a) its
      employees, consultants and subcontractors to whom disclosure is necessary to
      carry out the objectives of the Joint Development Program, and to the extent
      said employees, consultants and subcontractors are bound by a confidentiality
      agreement, or

     

     

    (b) those
      individuals specifically permitted by written agreement between the
      Parties.

     

     

    
      	7.07  	
              The
                Parties represent that all of their employees, consultants and
                subcontractors who shall have access to Confidential Information
                shall be
                advised of the obligations under this Agreement prior to receiving
                any
                Confidential Information of the other
                Party.

            

    

     

     

    
      	7.08  	
              Title
                to all Confidential Information and samples shall be retained by
                the
                disclosing or providing Party. The receiving Party agrees to return
                all
                tangibles to the providing Party within thirty (30) days following
                a
                written request of the disclosing or providing Party for the return
                of the
                Confidential Information. However, the receiving Party shall be allowed
                to
                keep one copy of these tangibles for archival purposes
                only.

            

    

     

     

    
      	7.09  	
              Nothing
                in this Agreement shall prevent either Party from disclosing Confidential
                Information of the other Party during internal management/project
                review
                meetings and technical meetings:

            

    

     

     

    (a) that
      are
      solely attended by the Party’s and their Affiliates' employees;

     

     

    (b) where
      the
      Confidential Information and ownership are clearly identified; and

     

     

    (c) where
      the
      attendees are cautioned against unauthorized disclosure.

     

     

    
      	7.10  	
              During
                the term of this Agreement and ending after five (5) years from the
                termination of this Agreement, the Parties agree not to disclose
                or use
                the Confidential Information of the other Party for any purpose not
                permitted under this Agreement.

            

    

     

     

    
      	7.11  	
              The
                Parties shall agree to procedures for granting permission to disclose
                Confidential Information to third parties, where such disclosure
                is deemed
                necessary to meet the objectives of this
                Agreement.

            

    

     

     

    
      	7.12  	
              The
                Parties agree that the terms, provisions, and existence of the Term
                Sheet
                Agreement and documents and discussions associated with the transaction
                contemplated by this Agreement shall be considered Confidential
                Information until the earlier of a joint or jointly agreed public
                announcement or announcements of the Parties’ intention to enter into this
                Agreement except as may be required by applicable securities law
                or
                regulation or the Nasdaq Marketplace
                Rules.

            

    

     

     

    
      	11.  	
              Costs
                and Expenses

            

    

     

    
      	8.01  	
              Except
                as otherwise expressly provided herein, each party shall bear its
                own
                costs and expenses in connection with the performance of its obligations
                under the Definitive Agreements.

            

    

     

     

    
      	12.  	
              Joint
                Development Program Management

            

    

     

    
      	9.01  	
              During
                the term of this Agreement, the Steering Committee shall have as
                its
                responsibility the overall management of the activities conducted
                under
                this Agreement by the Parties, including the performance of the Joint
                Development Program, approval of Statements of Work, the transmittal
                of
                data, samples and Confidential
                Information.

            

    

     

     

    
      	9.02  	
              Decisions
                of the Steering Committee shall be by majority of a quorum of the
                Steering
                Committee, with appointed members being able to vote by telephone
                if
                necessary. A quorum shall mean at least two (2) or more members,
                with an
                equal number of members from each Party. The Steering Committee may
                decide
                to delegate responsibilities, in which case the delegates will be
                responsible for submitting reports of their activities to be read
                into the
                Steering Committee minutes, which delegate reports will thereby be
                incorporated into the Steering Committee minutes. All decisions made
                by
                the Steering Committee shall be in writing with the signature of
                each
                Steering Committee member and shall become part of the
                minutes.

            

    

     

     

    
      	9.03  	
              The
                decisions and activities of the Steering Committee will be recorded
                in
                minutes of the meetings of the Steering Committee. At a minimum,
                the
                minutes will contain: (a) the time and place of the meeting;
                (b) the names and titles of the attendees, including those
                present by
                telephone; and (c) the identity of the Joint Development Program
                under consideration.

            

    

     

     

    
      	9.04  	
              The
                Statement of Work may be modified from time-to-time by the Steering
                Committee, but the Steering Committee has no authority to modify
                the terms
                of this Agreement. All Statements of Work to be conducted under this
                Agreement must be approved by the Steering
                Committee.

            

    

     

     

    
      	9.05  	
              If
                the Steering Committee is unable to reach agreement as to any decision
                required of it, the issue shall be resolved between the Chief Executive
                Officer of Gecko and the Chief Executive Officer of
                MCEL.

            

    

     

     

    
      	9.06  	
              During
                the course of the Joint Development Program, the Parties, with
                representation by the Steering Committee, shall meet as necessary
                (initially at least once every quarter) and at mutually convenient
                times
                and places to conduct responsibilities in accordance with this Agreement,
                to discuss progress and results of the Joint Development Program,
                and to
                revise the Statement of Work in writing as mutually agreed from
                time-to-time.

            

    

     

     

    
      	13.  	
              Warranties
                and Representations

            

    

     

    
      	10.01  	
              Each
                Party represents and warrants that it has the right to conduct its
                obligations under this Agreement and to convey the rights and disclose
                the
                results and other information related to this Agreement and that
                conduct
                of its obligations under this Agreement will not conflict with any
                obligations or duties that a Party may have to others.
                

            

    

     

     

    
      	10.02  	
              Gecko
                represents and warrants that it has all requisite legal and corporate
                power and authority to enter into this Agreement and perform its
                obligations in accordance with the terms of this Agreement. The execution
                and delivery of this Agreement by Gecko and the consummation by it
                of the
                transactions contemplated hereby have been duly authorized by all
                necessary action on the part of Gecko and no further action is required
                by
                MCEL. This Agreement has been duly executed and delivered by Gecko
                and
                constitutes the valid and binding obligation of Gecko enforceable
                against
                Gecko in accordance with its respective
                terms.

            

    

     

     

    
      	10.03  	
              To
                the extent that any Gecko Know-How and/or Gecko Patent Rights are
                owned,
                developed, or created by a third party for Gecko, Gecko has a written
                agreement with such third party with respect thereto and Gecko thereby
                either (i) has obtained ownership of and is the exclusive owner of,
                or
                (ii) has obtained a license (sufficient for the conduct of the business
                of
                Gecko as currently conducted and as proposed to be conducted, including
                Gecko’s development activities contemplated hereby) to all of such Gecko
                Know-How and/or Gecko Patent Rights in such work, material or invention
                by
                operation of law or by valid
                assignment.

            

    

     

     

    
      	10.04  	
              All
                contracts relating to the Gecko Know-How and Gecko Patent Rights
                are in
                full force and effect. The consummation of the transactions contemplated
                by this Agreement will neither violate nor result in a breach,
                modification, cancellation, termination or suspension of any of such
                contracts. Gecko is in compliance in all material respects with all
                such
                contracts and has not breached any material term of any such contract.
                To
                the knowledge of Gecko, all other parties to such contracts are in
                compliance in all respects with all such contracts and have not breached
                any term of any such contract. 

            

    

     

     

    
      	10.05  	
              To
                Gecko’s knowledge, the operation of the business of Gecko as it is
                currently conducted and as proposed to be conducted, including Gecko’s
                development activities contemplated hereby, has not, does not and
                will not
                infringe or misappropriate in any manner the intellectual property
                of any
                third party or constitute unfair competition or trade practices under
                the
                applicable laws of any
                jurisdiction.

            

    

     

     

    
      	10.06  	
              To
                Gecko’s knowledge, Gecko has not received written notice from any third
                party or any other overt threats from any third party, that the operation
                of the business of Gecko as it is currently conducted and as proposed
                to
                be conducted, or any act, product or service of Gecko, infringes
                or
                misappropriates the intellectual property of any third party or
                constitutes unfair competition or trade practices under the applicable
                laws of any jurisdiction.

            

    

     

     

    
      	10.07  	
              This
                Agreement is made with Gecko in reliance upon Gecko’s representation to
                MCEL that Gecko is fully committed on the date of this Agreement
                to
                focusing primarily upon the development activities specified in the
                Statement of Work, and the other obligations of Gecko contemplated
                by this
                Agreement.

            

    

     

     

    
      	10.08  	
              NEITHER
                PARTY MAKES ANY PROMISES, REPRESENTATIONS OR WARRANTIES, WHETHER
                EXPRESSED
                OR IMPLIED, REGARDING OR RELATING TO ITS KNOW-HOW, PATENT RIGHTS,
                OR TO
                ANY OTHER INFORMATION OR MATERIAL FURNISHED OR PROVIDED TO THE OTHER
                PARTY
                PURSUANT TO THIS AGREEMENT OR OTHERWISE AND EACH PARTY SPECIFICALLY
                DISCLAIMS ALL IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR
                A
                PARTICULAR PURPOSE WITH RESPECT TO SAID KNOW-HOW, PATENT RIGHTS,
                INFORMATION AND MATERIALS OR THEIR USE
                THEREOF.

            

    

     

     

    
      	14.  	
              Liability

            

    

     

    
      	11.01  	
              In
                no event shall MCEL be liable or responsible for any claim, demand,
                or
                action arising from the Gecko’s use, or use by Gecko’s
                vendees or subvendees, of Know-How or Patent Rights or
                any products designed, engineered, manufactured or sold using such
                Know-How
                or Patent Rights, excluding any claim arising from willful misconduct
                of
                MCEL. Neither Party
                shall be liable for any claims, demands, or actions of third parties
                with
                respect to products sold, transferred, or offered for sale by the
                other
                Party including any claims related to infringement of the patent,
                copyright, trademark, or trade secret rights of any third parties.
                

            

    

     

     

    
      	11.02  	
              Notwithstanding
                anything else in this Agreement to the contrary, in no event shall
                either
                Party be responsible or liable to the other for lost profits or lost
                business opportunities or for indirect, special, punitive or consequential
                damages arising out of or in connection with the Joint Development
                Program
                provided for under this Agreement or arising out of or in connection
                with
                the use of any Know-How, Patent Rights, or Project Technology developed
                under this Agreement.

            

    

     

     

    
      	11.03  	
              Gecko
                shall indemnify MCEL, its Affiliates, and their respective directors,
                officers, employees, agents, stockholders, successors and assigns
                against,
                and agrees to hold each of them harmless from, any and all claims,
                demands, costs, expenses, obligations, liabilities, damages, recoveries
                and deficiencies, including, without limitation, interest, penalties,
                court costs, costs and expenses (including the reasonable fees and
                expenses of external counsel) (the “Damages”)
                incurred or suffered by any of
                them:

            

    

     

     

    
      	(a)  	
              arising
                out of or related in any way to any misrepresentation or breach of
                any
                representation or warranty made by Gecko in this Agreement;
                

            

    

     

    
      	(b)  	
              arising
                out of or related in any way to any breach of any covenant or agreement
                to
                be performed by Gecko pursuant to this
                Agreement;

            

    

     

    
      	(c)  	
              arising
                out of or related in any way to the infringement by Gecko or its
                licensees
                (including without limitation through use of the Project Technology
                Rights, Gecko Know-How, and Gecko Patent Rights) of the intellectual
                property rights of a third party;

            

    

     

    
      	(d)  	
              arising
                out of or related in any way to any product liability or similar
                claims
                related to any products developed by Gecko under this Agreement,
                including
                Products incorporated Project
                Technology;

            

    

     

    
      	(e)  	
              arising
                out of or related in any way to the gross negligence or willful misconduct
                of Gecko, its employees or its agents, while performing under this
                Agreement;

            

    

     

    
      	(f)  	
              arising
                out of violations by Gecko of applicable
                law;

            

    

     

    
      	(g)  	
              arising
                out of any death or personal injury of whatever nature or kind relating
                to
                the performance by Gecko of Gecko’s obligations under this Agreement;
                or

            

    

     

    
      	(h)  	
              arising
                out of or related in any way to (i) any untrue or allegedly
                untrue
                statement of a material fact contained in any Registration Statement,
                or
                any prospectus, or in any amendment or supplement to the foregoing,
                or
                (ii) any omission or alleged omission of a material fact required
                to
                be stated therein or necessary to make the statements therein not
                misleading to the extent, but only to the extent, that such untrue
                or
                allegedly untrue statement, or such omission or alleged omission,
                is based
                upon information regarding Gecko, Gecko’s securities or Gecko’s proposed
                method of distribution of shares of MCEL Stock held by it, which
                information was expressly approved in writing by Gecko for use in
                any such
                Registration Statement, prospectus or any amendment or supplement
                thereto.

            

    

     

    
      	11.04  	
              MCEL
                shall indemnify and hold harmless Gecko, its Affiliates and their
                respective officers, agents, employees, partners, directors, controlling
                persons, advisors, stockholders, successors and assigns from and
                against
                any and all Damages incurred or suffered by any of them arising out
                of or
                resulting from:

            

    

     

     

    
      	(a)  	
              any
                misrepresentation or breach of any representation or warranty made
                by MCEL
                in this Agreement; 

            

    

     

    
      	(b)  	
              any
                breach of any covenant or agreement to be performed by MCEL pursuant
                to
                this Agreement;

            

    

     

    
      	(c)  	
              the
                gross negligence or willful misconduct of MCEL, its employees or
                its
                agents, while performing under this
                Agreement;

            

    

     

    
      	(d)  	
              violations
                by MCEL of applicable law;

            

    

     

    
      	(e)  	
              (i) any
                untrue or allegedly untrue statement of a material fact contained
                in any
                Registration Statement, or any prospectus, or in any amendment or
                supplement to the foregoing, or (ii) any omission or alleged
                omission
                of a material fact required to be stated therein or necessary to
                make the
                statements therein not misleading, except to the extent that such
                untrue
                or allegedly untrue statement, or such omission or alleged omission,
                is
                based upon information regarding Gecko, Gecko’s securities or Gecko’s
                proposed method of distribution of shares of MCEL Stock held by it,
                which
                information was expressly approved in writing by Gecko for use in
                any such
                Registration Statement, prospectus or any amendment or supplement
                thereto;

            

    

     

    provided,
      however,
      that
      (i) MCEL shall have no liability to indemnify Gecko under this
      Section 11.04 unless and until the aggregate of all such claims, damages,
      liabilities, costs and expenses exceed One Hundred Thousand
      Dollars ($100,000), and then only to the extent of such aggregate amount
      in
      excess of One Hundred Thousand Dollars ($100,000) and (ii) MCEL’s
      aggregate indemnification obligation to Gecko under this Section 11.04
      shall not exceed One Million Dollars ($1,000,000).

     

     

    
      	11.05  	
              Within
                thirty (30) days of the Effective Date, Gecko will procure and maintain,
                subject to MCEL’s approval, at its own expense and for its own benefit,
                comprehensive/commercial general liability insurance against all
                risks
                normally insured against, and in amounts normally carried, by entities
                of
                similar size engaged in similar lines of business. Gecko shall furnish
                MCEL a certificate(s) from the insurance carrier (having a minimum
                AM Best
                rating of A-) showing evidence of the foregoing insurance. The
                certificate(s) will include the following statement: "The insurance
                certified hereunder is applicable to all contracts between Millennium
                Cell
                Inc. and the Insured. This insurance may be canceled or altered only
                after
                thirty (30) days written notice to Millennium Cell Inc". The insurance,
                and the certificate(s), will (a) name MCEL (including MCEL's officers,
                directors, employees, affiliates, agents, subsidiaries, successors,
                and
                assigns) as additional insureds with respect to matters arising from
                this
                Agreement, (b) provide that such insurance is primary and non contributing
                to any liability insurance carried by MCEL, and (c) provide that
                underwriters and insurance companies of Gecko may not have any right
                of
                subrogation against MCEL (including MCEL's officers, directors, employees,
                Affiliates, agents, subsidiaries, successors, and assigns). The insurance
                will contain no more than an ordinary deductible. Gecko agrees to
                waive
                any right of recovery against MCEL (including MCEL's officers, directors,
                employees, Affiliates, agents, successors, and assigns) for any loss
                or
                damage of the type covered by the insurance to be procured and maintained
                under this Section 11.05, regardless of whether or not such insurance
                is
                so maintained.

            

    

     

     

    
      	15.  	
              Notices

            

    

     

    
      	12.01  	
              All
                notices provided for by this Agreement shall be deemed effective
                immediately if sent by facsimile, after three (3) business days after
                such
                notice is deposited with an overnight courier service addressed to
                the
                receiving Party at its following address or such other address as
                a Party
                may furnish to the other in
                writing.

            

    

     

     

    If
      to
“MCEL”, addressed to: 

     

    Millennium
      Cell Inc.

    Attention:
       Mr.
      Adam
      Briggs, President

    One
      Industrial Way West

    Eatontown,
      New Jersey

    U.S.A.

    Facsimile
      No. +1 732 542-4010

    

    

    If
      to
“Gecko” addressed to:

    Gecko
      Energy Technologies, Inc.

    One
      Industrial Way West

    Eatontown,
      New Jersey

    U.S.A.

    Facsimile
      No. +1 732 542-4010

    Attention:
      Ronald J. Kelley or Steven D. Pratt

    

     

    
      	16.  	
              Term
                and Termination

            

    

     

    
      	13.01  	
              This
                Agreement shall have a term commencing on the Effective Date and
                ending on
                December 31, 2008, provided,
                however,
                that if MCEL states in a Purchase Option Notice (for purposes of
                this
                Section 13.01, a “Funding
                Termination Notice”)
                that it has elected to terminate this Agreement and cease funding
                Gecko’s
                operations Gecko shall have the option to occupy the facilities provided
                by MCEL subject to the terms of MCEL’s lease at the time of the Funding
                Termination Notice at Gecko’s expense for up to six (6) months after the
                Funding Termination Notice.

            

    

     

    
      	13.02  	
              MCEL
                shall have the right to terminate this Agreement upon prior written
                notice
                to Gecko if in any of the following shall
                occur:

            

    

     

    (a) Gecko
      materially defaults in the performance of any of its obligations under this
      Agreement, and such default continues for thirty (30) days after written notice
      of such default has been delivered to Gecko by MCEL;

     

    (b) Gecko
      materially defaults in the performance of the Statement of Work or any milestone
      contained therein to the satisfaction of MCEL, provided that MCEL provides
      written notice to Gecko of such default, and the default continues for thirty
      (30) days after such notice has been served on Gecko; 

     

    (c) A
      Bankruptcy Event occurs with respect to Gecko and/or Gecko becomes insolvent
      as
      determined by an audit under Section 14.02;

     

    (d) Kelley’s
      Employment Agreement with Gecko is terminated for any reason; or

     

    (e) Pratt’s
      Employment Agreement with Gecko is terminated for any reason.

     

    
      	13.03  	
              Gecko
                shall have the right to terminate this Agreement upon prior written
                notice
                to MCEL if MCEL materially defaults in the performance of any of
                its
                obligations under this Agreement, and such default continues for
                thirty
                (30) days after written notice of such default has been delivered
                to MCEL
                by Gecko.

            

    

     

    
      	13.04  	
              If
                this Agreement is terminated pursuant to Section 13.02 or
                Section 13.03, the non-terminating Party’s interest in the Project
                Technology will be assigned to the terminating Party. The non-terminating
                Party shall execute and deliver any and all documents necessary to
                vest
                the non-terminating Party’s interest in the Project Technology in the
                terminating Party. The non-terminating Party shall not take any action
                or
                fail to take an action which will limit vesting the non-terminating
                Party’s interest in the Project Technology in the terminating
                Party.

            

    

     

    
      	13.05  	
              Sections
                3.02 and 3.03, as well as Articles IV, V, VII, X, XI and XII shall
                survive
                termination of this Agreement.

            

    

     

    
      	17.  	
              Miscellaneous

            

    

     

    
      	14.01  	
              Assignment.
                Except as expressly set forth in this Agreement, Gecko shall not
                assign
                this Agreement or any of its rights and/or obligations under this
                Agreement to any other party, whether voluntarily or by operation
                of law,
                without the prior written consent of MCEL. Any prohibited assignment
                shall
                be null and void. 

            

    

     

     

    
      	14.02  	
              Audit.
                During the term of this Agreement, MCEL and any of its duly authorized
                representatives shall have reasonable access to books, documents,
                papers,
                and records of Gecko that are pertinent to this Agreement, and may
                audit,
                and examine said pertinent records. Such audits shall be performed
                not
                more frequently than once every twelve (12) months during performance
                of
                the Agreement and shall be performed at the sole expense of MCEL.
                

            

    

     

     

    
      	14.03  	
              No
                Relationship between the Parties. Neither Party shall represent itself
                as
                the agent or legal representative of the other or as joint venturers
                for
                any purpose whatsoever, and neither shall have any right to create
                or
                assume any obligations of any kind, express or implied, for or on
                behalf
                of the other in any way whatsoever.

            

    

     

     

    
      	14.04  	
              Language.
                This Agreement is in the English language only, which language shall
                be
                controlling in all respects, and all versions hereof in any other
                language
                shall be for accommodation only and will not be binding upon the
                Parties.
                All communications to be made or given under this Agreement shall
                be in
                the English language.

            

    

     

     

    
      	14.05  	
              Noncompetition.
                During the term of this Agreement and for two (2) years thereafter,
                Gecko and its agents and principals will not (i) engage or participate
                in
                any business activity that competes with or is reasonable likely
                to
                compete with MCEL’s Field, or (ii) interfere with or disrupt, or attempt
                to interfere with or disrupt, any business relationship between MCEL
                and
                any customer, client, agent, distributor, supplier, licensor, licensee,
                consultant, independent contractor, or employee of
                MCEL.

            

    

     

     

    
      	14.06  	
              Nonsolicitation
                of Employees. Neither Gecko nor MCEL will, directly or indirectly,
                without
                the prior written consent of the other party, (i) solicit
                or induce
                any employee of, or consultant to, the other party or any of its
                affiliates to leave the employ thereof or to terminate its consulting
                arrangement therewith or (ii) hire for any purpose, or contract for
                services to be provided by, any employee or consultant of the other
                party
                or any of its affiliates. This provision will expire no earlier than
                eighteen (18) months subsequent to the termination of this
                Agreement.

            

    

     

     

    
      	14.07  	
              Motorola
                Payments. For so long as MCEL shall provide funding to Gecko as provided
                herein, Gecko shall make any and all required payments under the
                terms of
                the License Agreement dated as of January 13, 2005, between Gecko
                and
                Motorola,
                Inc.,
                as amended, and Kelley and Pratt hereby jointly and severally guarantee
                the payment of any and all such required amounts. If Gecko fails
                to make
                any such payment to Motorola, Inc. in a timely manner, MCEL shall
                have the
                right make such payment on behalf of Gecko and Gecko shall promptly
                reimburse MCEL for the amount of any such
                payment.

            

    

     

     

    
      	14.08  	
              Non-Waiver.
                Either Party’s failure to insist in any instance upon the strict
                performance by the other of any of the terms of this Agreement shall
                not
                be construed as a waiver of such or any of the other terms or provisions
                hereof.

            

    

     

     

    
      	14.09  	
              Integration
                and Severability.

            

    

     

     

    (a) This
      Agreement constitutes the entire agreement of the Parties with respect to the
      matters herein set forth and, with the exception of the binding provisions
      of
      the Term Sheet, this Agreement supersedes all previous discussions, prior
      agreements and understandings concerning the same, whether oral or
      written.

     

     

    (b) If
      any
      term or provision of this Agreement shall be found to be illegal, invalid,
      void
      or otherwise unenforceable, notwithstanding, this Agreement shall remain in
      full
      force and effect and such term or provision shall be deemed stricken and the
      remaining provisions shall not be affected or impaired and shall be interpreted,
      as far as and if possible, so as to give them effect consistent with the
      original terms of this Agreement. Insofar as possible within the confines of
      any
      finding as to the Agreement, the Parties will attempt to reconstruct any
      contested part of this Agreement so as to retain the balance of interests
      between the Parties as originally contemplated.

     

     

    
      	14.10  	
              Force
                Majeure. If the performance by either Party of any obligation under
                this
                Agreement is delayed or prevented in whole or in part by any cause
                not
                reasonably within its control (including, without limitation, acts
                of God,
                war, civil disturbances, accidents, damage to its facilities, labor
                disputes, acts of any governmental body not attributable to such
                Party’s
                failure to comply with this Agreement, or failure or delay of third
                parties), it shall be excused, discharged and released of performance
                hereunder to the extent such performance is so limited or prevented,
                without liability of any kind. However, the affected Party (the
                “Affected
                Party”)
                shall promptly notify the other Party of the extent and probable
                duration
                of the delay or non-performance and shall be diligent in attempting
                to
                remove such cause or causes. If the Affected Party is unable to remove
                the
                causes within sixty (60) days, the other Party shall have
                the right
                to terminate this Agreement without
                penalty.

            

    

     

     

    
      	14.11  	
              Headings.
                Recitals and Section headings contained in this Agreement are for
                ease of
                reference only and shall not affect the interpretation or meaning
                of any
                provision of this Agreement.

            

    

     

     

    
      	14.12  	
              Conflicts
                in Documentation. If a conflict arises between this Agreement (other
                than
                Article III hereof) and any Appendices or further documentation,
                this
                Agreement shall govern and prevail, and the conflicting terms and
                conditions of any such documents shall be deemed deleted and shall
                not be
                binding upon either Party.

            

    

     

     

    
      	14.13  	
              Limitation
                of Rights. Except as expressly provided in this Agreement, nothing
                contained herein shall be construed as conferring any license or
                other
                rights under any intellectual property rights of either
                Party.

            

    

     

     

    
      	14.14  	
              Publicity.
                Nothing contained in this Agreement shall be construed as conferring
                any
                right to use any name, trade name, trademark or other designation
                (including any contraction or simulation of the foregoing) of the
                other
                Party in any manner without prior, express written approval of such
                other
                Party. Neither Party will make or issue any press release, announcement
                or
                any other public disclosure regarding this Agreement (including the
                existence hereof) or the transactions or activities contemplated
                hereby
                without the prior written consent of the other Party, which consent
                shall
                not be unreasonably withheld or delayed; provided,
                however,
                that either Party may make such disclosure (A) if it is advised by
                counsel
                that such disclosure is legally required under applicable law or
                the rules
                of any securities exchange on which such Party is listed and (B)
                such
                Party provides as much advance notice as possible to the other Party
                of
                such disclosure and, in any event, an opportunity to review and comment
                on
                such proposed disclosure prior to disclosure thereof. Joint press
                releases
                are anticipated to be publicly communicated upon the completion of
                the
                Statement of Work. 

            

    

     

     

    
      	14.15  	
              Amendments.
                No addition to, deletion from or modification of any of the provisions
                of
                this Agreement shall be binding upon the Parties unless made in writing,
                referencing this Agreement and the provisions to be modified therein,
                and
                signed by a duly authorized representative of each
                Party.

            

    

     

     

    
      	14.16  	
              Choice
                of Law, Settlement of Disputes

            

    

     

     

    (a) This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York, without regard to its conflicts of law
      principles.

     

    (b) Any
      controversy, claim or dispute (a “Dispute”)
      arising out of or in connection with, or relating to, this Agreement, its
      validity, interpretation, performance, or termination shall be finally settled
      by arbitration by a panel of three (3) arbitrators conducted in accordance
      with
      the Arbitration Rules of the American Arbitration Association in effect at
      the
      time of arbitration except as modified or by mutual agreement of the Parties.
      Each Party shall designate one arbitrator; the third arbitrator shall be
      designated by the two arbitrators designated by the Parties. At least one of
      the
      three designated arbitrators shall have expertise in the scientific aspects
      of
      the subject matter of this Agreement, and at least another designated arbitrator
      shall have expertise in the field of intellectual property licensing. Any such
      arbitration shall take place in New York, United States of America. Such
      arbitration shall be conducted in the English language. For purposes only of
      enforcing the agreement to arbitrate set forth in this Section, enforcing any
      arbitration Award, obtaining interim relief necessary to protect the parties
      pending arbitration, or resolving claims, if any, found not to be legally
      arbitrable, each party irrevocably and unconditionally submits to the exclusive
      jurisdiction of any state or federal court located in New York. 

     

     

    

     

     

    

     

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

     

    IN
      WITNESS WHEREOF,
      the
      Parties have caused this Joint Development Agreement to be executed by their
      duly authorized representatives.

     

    

     

    

     

    MILLENNIUM
      CELL INC.

     

    

     

    By:
      /s/Adam Briggs     

     

    Title:
      Adam Briggs, President

     

    

     

    

     

    GECKO
      ENERGY TECHNOLOGIES, INC.

     

    

     

    By:
      /s/Ronald J. Kelley     

     

    Title:
      Ronald J. Kelley, President     

     

    

     

    

    

    For
      purposes of Section 14.07 only:

    

    /s/Ronald
      J. Kelley

    Ronald
      J.
      Kelley

    

    /s/Steven
      D. Pratt

    Steven
      D.
      Pratt

    

    

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    APPENDIX
      A

    

    Statement
      of Work

    [***]

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    

       

       

       

       

       

      Information
        marked by [***]
        has been
        omitted pursuant to a request for confidential treatment. The omitted portion
        has been separately filed with the Securities and Exchange
        Commission.

       

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      3.02(b)

    

    List
      of Acceptable Banks

    

    

    Canaccord
      Adams

    SG
      Cowen
& Co., LLC

    C.E.
      Unterberg

    First
      Albany Corporation

    Simmons
      First National Bank

    Merriman
      Curhan Ford & Co.

    Thomas
      Weisel

    H.C.
      Wainwright & Company

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