Document:

ex10-1.htm

    Exhibit
10.1 – Non exclusive license agreement between Materials and NASA

    

    LICENSE
AGREEMENT

    

    

    

    

    

    NATIONAL
AERONAUTICS AND SPACE ADMINISTRATION

    

    

    

    

    

    AND

    

    

    

    

    

     

    NANOTAILOR,
INC.

     

    

    

    

    

    

    

    

     

    NONEXCLUSIVE
LICENSE AGREEMENT DN-

    

    

    

    

    

    

    

     

    LICENSE
COMMENCEMENT DATE:

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    TABLE
OF CONTENTS

    
      	 
      	 
      	 
      
	
              ARTICLE

            	
              PAGE
      NO.

            
	 
      	 
      	 
      
	 	

              Preamble

            	 
      
	 
      	 
      	 
      
	
              I

            	
              Definitions

            	
              5

            
	 
      	 
      	 
      
	
              II

            	
              License
      Grant

            	
              7

            
	 
      	 
      	 
      
	
              III

            	
              Sublicenses

            	 
      
	 
      	 
      	 
      
	
              IV

            	
              Term
      of License

            	
              8

            
	 
      	 
      	 
      
	
              V

            	
              Practical
      Application

            	
              9

            
	 
      	 
      	 
      
	
              VI

            	
              United
      States Manufacture

            	
              9

            
	 
      	 
      	 
      
	
              VII

            	
              Royalty
      and Payment

            	
              9

            
	 
      	 
      	 
      
	
              VIII

            	
              Reports

            	
              11

            
	 
      	 
      	 
      
	
              IX

            	
              Audit
      Rights

            	
              13

            
	 
      	 
      	 
      
	
              X

            	
              Marking

            	
              14

            
	 
      	 
      	 
      
	
              XI

            	
              Use
      of the NASA Name

            	
              14

            
	 
      	 
      	 
      
	
              XII

            	
              Disclaimer
      of Warranties

            	
              15

            
	 
      	 
      	 
      
	
              XIII

            	
              Risk
      Allocation and Indemnification

            	
              16

            
	 
      	 
      	 
      
	
              XIV

            	
              Patent
      Validity

            	
              17

            
	 
      	 
      	 
      
	
              XV

            	
              Points
      of Contact

            	
              18

            
	 
      	 
      	 
      
	
              XVI

            	
              Notices

            	
              18

            
	 
      	 
      	 
      
	
              XVII

            	
              Dispute
      or Breach

            	
              19

            
	 	 	 
	XVIIIT	Termination
      or Modification	20
	 
      	 
      	 
      
	
              XIX

            	
              Assignment

            	
              22

            
	 
      	 
      	 
      
	
              XX

            	
              Governing
      Law

            	
              22

            

    

     

     

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    
      	
              XXI

            	
              Independent
      Entities

            	
              23

            
	 
      	 
      	 
      
	
              XXII

            	
              Effect
      of Partial Invalidity

            	
              23

            
	 
      	 
      	 
      
	
              XXIII

            	
              Nonwaiver

            	
              24

            
	 
      	 
      	 
      
	
              XXIV

            	
              Entire
      Agreement

            	
              24

            
	 
      	 
      	 
      
	
              XXV

            	
              Article
      Headings

            	
              24

            
	 
      	 
      	 
      
	
              XXVI

            	
              Counterparts

            	
              24

            
	 
      	 
      	 
      
	
              XXVII

            	
              Acceptance

            	
              25

            
	 
      	 
      	 
      
	 
      	
              Appendix

            	
              25

            

    

    

    

    
      
        
        

      

      
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    LICENSE
AGREEMENT

    

     

    PREAMBLE

    

    

    This
License Agreement (“AGREEMENT”) is entered into between the National Aeronautics
and Space Administration (NASA), an agency of the United States, hereinafter
referred to as LICENSOR, having its headquarters in Washington, D.C., and Nanotailor, Inc., a
corporation of the State of Texas, having its principal place of business at
701 Brazos, Suite 500, Austin,
TX 78701 hereinafter referred to as LICENSEE, as of the date of execution
of the last PARTY hereto.

    

    WITNESSETH:

    

    WHEREAS, under the authority
of 35 U.S.C. § 200 et seq., the U.S.
Department of Commerce has issued Patent Licensing Regulations (37 CFR Part 404)
specifying the terms and conditions upon which licenses may be granted for
inventions assigned to LICENSOR; and

    

    WHEREAS, LICENSOR is the
assignee of
two United States patents: U.S.
Patent No. 6,740,224 for an invention entitled “METHOD OF MANUFACTURING CARBON
NANOTUBES” which issued on MAY 25, 2004; and

    U.S. Patent No. 7,008,605 for
an invention entitled “METHOD
OF MANUFACTURING HIGH QUALITY CARBON NANOTUBES” which issued on MARCH 7, 2006
and,

    

    WHEREAS, LICENSEE, in
consideration of the grant of a license under U.S. Patent Nos. 6,740,224 and
7,008,605, will pay royalties, make all necessary capital investments, and
achieve PRACTICAL APPLICATION of the invention; and,

    

    WHEREAS, LICENSOR has
determined that the granting of a license to LICENSEE under U.S. Patent Nos.
6,740,224 and 7,008,605 will provide the necessary incentive for LICENSEE to
achieve the desired early PRACTICAL APPLICATION of the invention and the
granting of such license to LICENSEE will therefore be in the public
interest;

    

    NOW, THEREFORE, in accordance
with said Patent Licensing Regulations, and in consideration of the foregoing
and of the terms hereinafter contained in this AGREEMENT, the LICENSOR and
LICENSEE agree as set forth below:

     

    
      
        
        

      

      
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    ARTICLE
I

    

     

    Definitions

    

    “ACCOUNTING
PERIOD” shall mean the period for which royalties are calculated.  For
this AGREEMENT, the period is every 12 months starting January 1 of each year,
except for the first ACCOUNTING PERIOD, which shall begin on the LICENSE
COMMENCEMENT DATE and end December 31, 2007.

    

    “BREACH”
shall mean (a) a violation or nonperformance by a PARTY of a MATERIAL term,
condition, covenant, or warranty herein, or (b) a misrepresentation made
hereunder or (c) a misrepresentation by LICENSEE to induce LICENSOR to enter
into this AGREEMENT (also see “MATERIAL”).

    

    “BREACHING
PARTY” shall mean the PARTY in BREACH, as used in Section 17.2.

    

    “GROSS
SALES” shall mean either the total amount invoiced by or for LICENSEE, and, in
the event that some or all of the amount invoiced by LICENSEE is in the form of
non-monetary remuneration, then the equivalent dollar value sum of such
remuneration, for all disposals i.e., (sales, uses, including uses by LICENSEE,
leases, transfers, etc.) of ROYALTY-BASE PRODUCTS for consideration determined
in, or as if in, an arm’s length transaction.

    

    “INSOLVENT”
shall mean that LICENSEE has either ceased to pay its debts (which may include
failure to pay royalty payments under this AGREEMENT) in the ordinary course of
business or cannot pay its debts as they fall due or is insolvent within the
meaning of the Federal Bankruptcy Code (11 U.S.C. § 101 (31)).

    

    “LICENSE
COMMENCEMENT DATE” shall mean the date that the last PARTY has executed this
AGREEMENT.

    

    “LICENSE
EXPIRATION DATE” shall mean the last day that this AGREEMENT is in
effect.

    

    “LICENSE
TERM” shall mean the period of time starting with the LICENSE COMMENCEMENT DATE
and ending with the LICENSE EXPIRATION DATE.

    

    “LICENSED
AREA” shall mean the United States.

    

    “LICENSED FIELD OR
EMBODIMENT(S)” shall mean Carbon Nanotube Production.

    

    
      
        
        

      

      
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    “LICENSED
INVENTION” shall mean the invention defined by the claims of the LICENSED
PATENTS and as may be further limited by ARTICLE II.

    

    “LICENSED
PATENTS” shall mean United States Patent Nos. 6,740,224 and 7,008,605 and
shall include any corresponding reissue patents and modifications of said
LICENSED PATENTS by means of certificates of correction or reexamination
certificates.

    

    “MATERIAL,”
with respect to a particular matter (e.g., a BREACH), shall mean that the matter
is shown to effect adversely (a) the rights and benefits of the other PARTY
under this AGREEMENT; or (b) the ability of the other PARTY to perform its
obligations hereunder; and, in either case, to such a degree that a reasonable
person in the management of his or her own affairs would be more likely than not
to decline to enter into this AGREEMENT in view of the matter in
question.

    

    “NET
SALES” shall mean GROSS SALES, less allowances for returns and less (to the
extent separately stated, and not charged to the customer or others, on the
invoices):  (a) regular trade and quantity discounts; (b) insurance
and shipping charges from the point of origin; (c) duties, tariffs, and other
customs charges; and (d) sales, use, value added, and similar
taxes.  In the case of a sale or other disposition of ROYALTY-BASE
PRODUCTS which are transferred to a purchaser who does not deal at arm’s length,
or transferred or otherwise disposed of for other than monetary consideration
(including allocations to LICENSEE’s own beneficial use), NET SALES shall be
calculated in accordance with Section 7.5 of this AGREEMENT.

    

    “NONBREACHING
PARTY” shall mean the PARTY not in BREACH, as used in Section 17.2.

    

    “PARTY”
shall mean a party to this AGREEMENT.

    

    “PERSON”
shall mean a natural person; a corporation (for profit or not-for-profit); an
association; a partnership (general or limited); a joint venture; a trust; a
government or political department, subdivision, or agency; or any other
entity.

    

    “PRACTICAL
APPLICATION” shall mean, with respect to the LICENSED INVENTION, to reduce it to
practice and to commercialize it, i.e., to manufacture it in the case of a
composition or product, to
practice it in the case of a process or method, or to operate it in the case of
a machine or system; and, in each case, under such conditions as to
establish:  (a) that a market for the LICENSED INVENTION has been
created, and to the extent practicable, that a market has been created in the
United States; (b) that it is being utilized; (c) that its benefits are, to the
extent permitted by law or Government regulations, available to the public on
reasonable terms; and (d) that market demand, at least in the United States,
shall be reasonably met.

    

    
      
        
        

      

      
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    “ROYALTY-BASE
PRODUCTS” shall include the components of an item sold, used, leased,
transferred, or otherwise disposed of by LICENSEE or its SUBLICENSEES that is
covered by, included within or made by the LICENSED INVENTION.  For
purposes of this license, ROYALTY-BASE PRODUCTS include Carbon
Nanotubes.

    

    “SUBLICENSEE”
shall mean any PERSON who has the right, granted by LICENSEE, to make, use, or
sell the LICENSED INVENTION.

    

    “THIRD
PARTY” shall mean any PERSON other than the LICENSOR and the
LICENSEE.

    

     

    ARTICLE
II

    

    License
Grant

    

    2.1  LICENSOR hereby
grants to LICENSEE a terminable, royalty-bearing, nonexclusive license to
practice, i.e., to make, have made, use, offer to sell, sell, transfer, or
dispose of, the LICENSED INVENTION as limited to the LICENSED AREA and as may be
limited to a LICENSED FIELD OR EMBODIMENT(S), as defined in ARTICLE
I.

    

    2.2  LICENSOR, upon
request, will use reasonable efforts to grant LICENSEE, in accordance with 37
CFR Part 404, a license to practice any inventions assigned to LICENSOR, without
which license or licenses, the practice of the LICENSED INVENTION would result
in infringement.  The grant of said license or licenses shall be
limited, however, to the extent necessary to practice the LICENSED
INVENTION.  There will be no such grant where said inventions are
licensed exclusively.

    

    2.3  Notwithstanding
anything to the contrary in this AGREEMENT, LICENSEE shall take the license
granted in this ARTICLE II subject to any outstanding licenses or other rights
in THIRD PARTIES under agreements executed by LICENSOR before the LICENSE
COMMENCEMENT
DATE.

    

    
      
        
        

      

      
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    2.4  LICENSOR
reserves an irrevocable, royalty-free right to practice and have practiced the
LICENSED INVENTION, and any other inventions as provided in Section 2.2,
throughout the world by or on behalf of the Government of the United States and
on behalf of any foreign government pursuant to any existing or future treaty or
agreement with the United States.

    

     

    ARTICLE
III

    

    Sublicenses

    

    3.1  LICENSEE may
not grant any sublicenses under this AGREEMENT.

    

    ARTICLE
IV

    

    Term of
License

    

    4.1  Unless either
PARTY terminates this AGREEMENT in accordance with ARTICLE XVIII at an earlier
date, the license granted in ARTICLE II will be in effect for a LICENSE TERM
that is equal to the unexpired term of the last patent to be in effect of the
patent(s) encompassed under the definition of LICENSED
PATENTS.  Except as may be expressly provided otherwise herein or
agreed to in writing by LICENSOR, the license shall expire automatically at the
end of the LICENSE TERM without notice to LICENSEE.

    

     

    ARTICLE
V

    

     

    Practical
Application

    

    5.1  LICENSEE shall
achieve PRACTICAL APPLICATION of the LICENSED INVENTION within twelve (12) months of the
LICENSE COMMENCEMENT DATE and in accordance with the schedule set forth in the
APPENDIX to this AGREEMENT and incorporated into this
AGREEMENT.  LICENSEE shall notify LICENSOR within thirty (30) days of
achieving PRACTICAL APPLICATION that PRACTICAL APPLICATION has been achieved.
LICENSEE shall also provide evidence to verify the achievement.

    

    5.2  LICENSEE, once
PRACTICAL APPLICATION of the LICENSED INVENTION is achieved, shall thereafter
maintain it throughout the
LICENSE TERM.

    

    
      
        
        

      

      
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    ARTICLE
VI

    

    United States
Manufacture

    

    6.1  In achieving
and maintaining PRACTICAL APPLICATION of the LICENSED INVENTION, LICENSEE agrees
that any products embodying the LICENSED INVENTION or produced through the use
of the LICENSED INVENTION shall be reduced to practice and manufactured
substantially in the United States, in accordance with 35 U.S.C.
209(b).

    

    6.2  LICENSEE shall
make a bona fide attempt to use or sell the LICENSED INVENTION in the United
States.

    

    6.3  LICENSEE shall
promptly report to LICENSOR its discontinuance of making the benefits of the
LICENSED INVENTION available to the public.

    

     

    ARTICLE
VII

    

     

    Royalty and
Payment

    

    7.1  In
consideration of the license granted in ARTICLE II, LICENSEE shall remit to
LICENSOR a nonrefundable license fee in the amount of Twenty Thousand Dollars
($20,000.00), which shall be paid upon the execution of this AGREEMENT by
LICENSEE.

    

    7.2  LICENSEE agrees to
pay LICENSOR a running royalty of seven percent (7%) of the NET SALES of
ROYALTY-BASE PRODUCTS for each ACCOUNTING PERIOD.

    

    7.3  LICENSEE agrees
to pay LICENSOR a minimum royalty of Fifty
Thousand Dollars($50,000.00) for the ACCOUNTING PERIOD ending on December 31, 2008.  LICENSEE
agrees to pay LICENSOR a minimum royalty payment in the amount of Seventy Five
Thousand Dollars ($75,000.00) for the ACCOUNTING PERIOD ending on December 31, 2009. LICENSEE
agrees to pay LICENSOR a minimum royalty payment in the amount of One Hundred
and Twenty Five Thousand Dollars ($125,000.00) for the ACCOUNTING PERIOD ending
on December 31, 2010.
LICENSEE agrees to pay LICENSOR a minimum royalty payment in the amount of One
Hundred and Seventy Five Thousand Dollars ($175,000.00) for the ACCOUNTING
PERIOD ending on December 31,
2011 and for each ACCOUNTING PERIOD thereafter.

    

    
      
        
        

      

      
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    7.4  The running
royalties specified in Sections 7.2 shall be credited against the minimum
royalty specified in Section 7.3.

    

    7.5  LICENSEE agrees
that in the event any ROYALTY-BASE PRODUCTS shall be sold, transferred, or
disposed of to a THIRD PARTY in a transaction that does not represent an arm’s
length transaction for purposes of resale by any THIRD PARTY, then the royalties
to be paid under this AGREEMENT for the ROYALTY-BASE PRODUCTS shall be based
upon the NET SALES of the ROYALTY-BASE PRODUCTS by such THIRD PARTY, rather than
upon the NET SALES of the LICENSEE.  Examples of transactions that do
not represent an arm’s length transaction includes sales, transfers or disposals
(a) to any type of organization or individual who owns a controlling interest in
LICENSEE by stock ownership or otherwise; (b) to any type of organization in
which LICENSEE shall own, directly or indirectly, a controlling interest by
stock ownership or otherwise; or (c) to any type of organization with which, or
individual with whom, LICENSEE, its stockholders, or associated companies shall
have any agreement, understanding, or arrangement (such as, among other things,
an option to purchase stock, an arrangement involving a division of profits, or
special rebates or allowances) without which agreement, understanding, or
arrangement, prices paid by such organization or individual for the ROYALTY-BASE
PRODUCTS would be higher than the NET SALES reported by LICENSEE, or if such
agreement, understanding, or arrangement results in extending to such
organization or individual lower prices for ROYALTY-BASE PRODUCTS than those
charged to outside concerns buying similar merchandise in similar amounts and
under similar conditions.

    

    7.6  Under this
AGREEMENT, ROYALTY-BASE PRODUCTS will be considered sold when invoiced, when
shipped, or upon receipt of payment, whichever occurs first.

    

    7.7  Royalties shall
be paid within thirty (30) days of the end of each ACCOUNTING
PERIOD.  Royalties shall be paid by check, denominated in United
States dollars, and made payable to the National Aeronautics and Space
Administration.  The check shall be mailed to LICENSOR at the address
set forth in ARTICLE XV of this AGREEMENT concurrently with the report required
in ARTICLE VIII of this AGREEMENT.  LICENSOR’s acceptance of any
royalty payment does not eliminate LICENSOR’s right to contest the accuracy of
such payment in the future.

    

    7.8  LICENSOR shall
assess interest, penalties, and administrative costs in accordance with the
Federal Claims Collections
Standards, 31 C.F.R. §§ 900-904, on all payments due LICENSOR which are not
timely paid by LICENSEE.  In addition to these charges, LICENSOR is
authorized to charge to LICENSEE the costs of collection and any associated
reasonable attorney fees.

    

    
      
        
        

      

      
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    ARTICLE
VIII

    

     

    Reports

    

    8.1  LICENSEE shall
submit to LICENSOR written reports within thirty (30) days of the end of each
ACCOUNTING PERIOD whether or not royalties are due.  Each report shall
be submitted concurrently with the royalties required by ARTICLE
VII.  To ensure that any proprietary information submitted by LICENSEE
is protected to the fullest extent of the law, LICENSEE should mark with a
proprietary notice any portions of the report that are considered proprietary to
LICENSEE.

    

    8.2  Each report
shall include the following information:

    

    
      	
               
      

            	
              (a)

            	
              With
      reference to the schedule set forth in the APPENDIX to this AGREEMENT, a
      narrative description of the steps being taken to reduce the LICENSED
      INVENTION to practice.

            

    

    

    
      	
               
      

            	
              (b)

            	
              With
      reference to the schedule set forth in the APPENDIX to this AGREEMENT, a
      narrative description of the steps being taken to create a market demand
      for the LICENSED INVENTION, to commercialize the LICENSED INVENTION, and
      to meet market demand for the LICENSED
  INVENTION.

            

    

    

    
      	
               
      

            	
              (c)

            	
              A
      narrative description of the ROYALTY-BASE PRODUCTS currently being offered
      for sale by LICENSEE and its SUBLICENSEES.  Copies of current
      sales brochures, promotional materials, and price lists shall be included
      with this description.

            

    

    

    
      	
               
      

            	
              (d)

            	
              A
      list of the geographic locations at which the LICENSED INVENTION is being
      manufactured.

            

    

    

    
      	
               
      

            	
              (e)

            	
              The
      number and type of ROYALTY-BASE PRODUCTS sold or disposed of by
      LICENSEE.

            

    

    

    
      	
               
      

            	
              (f)

            	
              The
      number and type of ROYALTY-BASE PRODUCTS sold or disposed
      of by each SUBLICENSEE (if
any).

            

    

    
    

    

    
      
        
        

      

      
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    (g)           The
number and type of ROYALTY-BASE PRODUCTS sold or
disposed of by each reseller of ROYALTY-BASE PRODUCTS under Section
7.5.

    

    
      	
               
      

            	
              (h)

            	
              LICENSEE’s
      GROSS SALES.

            

    

    

    
      	
               
      

            	
              (i)

            	
              GROSS
      SALES for each SUBLICENSEE (if
any).

            

    

    

    
      	
               
      

            	
              (j)

            	
              GROSS
      SALES for each reseller of ROYALTY-BASE PRODUCTS under Section
      7.5.

            

    

    

    
      	
               
      

            	
              (k)

            	
              LICENSEE’s
      NET SALES.

            

    

    

    
      	
               
      

            	
              (l)

            	
              NET
      SALES for each SUBLICENSEE (if
any).

            

    

    

    
      	
               
      

            	
              (m)

            	
              NET
      SALES for each reseller of ROYALTY-BASE PRODUCTS under Section
      7.5.

            

    

    

    
      	
               
      

            	
              (n)

            	
              The
      amount of royalties due LICENSOR.

            

    

    

    8.3  Each report
shall include a certification by an officer of LICENSEE that the LICENSEE is
complying with the terms and conditions of this AGREEMENT and that the responses
to each part of Section 8.2 are accurate and complete.

    

    8.4  LICENSEE shall,
on an annual basis, submit to LICENSOR an audited balance sheet and an audited
income statement.  Internal audits are permissible, but LICENSOR
reserves the right to require an independent audit and additionally reserves the
right to approve of the auditor.

    

    8.5  A final report
shall be submitted to LICENSOR by LICENSEE within thirty (30) days after the
termination of this AGREEMENT.

    

     

    ARTICLE
IX

    

     

    Audit
Rights

    

    9.1  LICENSEE shall
keep full, true, and accurate records for the purpose of LICENSOR verifying
LICENSEE’s reports to LICENSOR under ARTICLE VIII, verifying LICENSEE’s royalty
payments to LICENSOR under ARTICLE VII, and for determining LICENSEE’s
activities in general under the AGREEMENT.  These records shall
include, but are not limited to, ledgers and journals of account,
customer orders, invoices, shipping documents, inventory records, computer
records, purchase orders, and tax records.  These records, as a whole,
shall include information which will allow, at a minimum, identification of
suppliers, customers, items sold or otherwise transferred, and/or services
rendered, as well as whether the LICENSEE is operating within the scope of its
license.

    

    
      
        
        

      

      
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    9.2  The records
described in Section 9.1 shall be available for audit by LICENSOR, or by an
authorized representative of LICENSOR, at all reasonable times for the LICENSE
TERM and for three (3) calendar years thereafter.  In addition,
LICENSEE shall permit inspection by LICENSOR, or by an authorized representative
of LICENSOR, of LICENSEE’s assembly facilities and of LICENSEE’s inventory of
ROYALTY-BASE PRODUCTS, including parts, works-in-progress, and finished goods,
during any audit by LICENSOR.

    

    9.3  If LICENSOR, as
a result of an audit, discovers an underpayment of royalties that exceeds Two
Thousand Five Hundred Dollars ($2,500), then LICENSEE shall reimburse LICENSOR
for the cost of the audit, including all related costs of performing the audit
(e.g., travel, food, lodging, cost of professional services, etc.), in addition
to any penalties assessed pursuant to Section 7.8.

     

    

     

    ARTICLE
X

    

     

    Marking

    

    10.1  LICENSEE and
all SUBLICENSEES shall mark all ROYALTY-BASE PRODUCTS, or products incorporating
ROYALTY-BASE PRODUCTS, in accordance with the statutes of the United States
relating to the marking of patented articles (see 35 U.S.C. §
287).  Such marking shall be accomplished by fixing on the article or
when, from the character of the article, this cannot be done, by fixing to it,
or to the package wherein one or more of the articles is contained, a label
including the notation “Licensed from the National Aeronautics and Space
Administration under (insert patent number).”  Such marking shall also
be included in all literature and/or advertising materials describing the
LICENSED INVENTION.

     

    
      
        
        

      

      
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    ARTICLE
XI

    

     

    Use of the NASA
Name

    

    11.1  Except as
required by ARTICLE X, LICENSEE may use the name of LICENSOR, or the acronym
“NASA,” only in truthful statements concerning its relationship with
LICENSOR.  The letters ‘NASA’ may be used in such truthful statements
only if they are:

    

    
      	
               
      

            	
              (a)

            	
              used
      in their normal typed or printed
form;

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      same size, color, and intensity as the rest of the words in a
      sentence;

            

    

    

    
      	
               
      

            	
              (c)

            	
              not
      used in their stylized version as they appear in the NASA logotype or NASA
      insignia; and

            

    

    

    
      	
               
      

            	
              (d)

            	
              not
      used to indicate that NASA endorses the LICENSEE's products, processes,
      etc.

            

    

    

    11.2  Uses of the
letters ‘NASA’, other than those required by ARTICLE X or specified in Section
11.1, shall require the express written approval of
LICENSOR.  Approval by LICENSOR shall be based on applicable law
(i.e., 42 U.S.C. §§ 2459b, 2472(a), and 2473(c)(1); and 14 CFR § 1221.100 et seq.) and NASA policy
governing the use of the letters ‘NASA’ and the words ‘National Aeronautics and
Space Administration’ and shall not be unreasonably withheld.

    

    11.3 LICENSEE agrees to make
copies of its marketing literature available to LICENSOR so that LICENSOR can
determine that such use is in accordance with the terms of this
ARTICLE.

    

     

    ARTICLE
XII

    

     

    Disclaimer of
Warranties

    

    12.1  LICENSOR MAKES NO REPRESENTATIONS OR
WARRANTIES, EXPRESS, IMPLIED, OR STATUTORY, AS TO ANY MATTER
WHATSOEVER.

    

    12.2  ALL
REPRESENTATIONS AND WARRANTIES, EXPRESS, IMPLIED, OR STATUTORY, INCLUDING BUT
NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE ARE EXCLUDED HEREUNDER.

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

     

    12.3  In particular,
nothing in this AGREEMENT shall be construed as:

    

    
      	
               
      

            	
              (a)

            	
              A
      warranty or representation by LICENSOR as to the validity or scope of any
      LICENSED PATENT; or

            

    

    

    
      	
               
      

            	
              (b)

            	
              A
      warranty or representation that anything made, used, sold, or otherwise
      disposed of under any license granted in this AGREEMENT is or will be free
      from infringement of any type, including patent infringement, copyright
      infringement, and trademark infringement;
or

            

    

    

    
      	
               
      

            	
              (c)

            	
              A
      requirement that LICENSOR shall file any patent application, secure any
      patent, or maintain any patent in force, other than the LICENSED PATENT;
      or

            

    

    

    
      	
               
      

            	
              (d)

            	
              An
      obligation to bring or prosecute actions or suits against THIRD PARTIES
      for infringement; or

            

    

    

    
      	
               
      

            	
              (e)

            	
              An
      obligation to furnish any manufacturing or technical information; or, if
      any such information is supplied, a warranty or representation that such
      information is accurate; or

            

    

    

    
      	
               
      

            	
              (f)

            	
              Conferring
      a right to use in advertising, publicity or otherwise the name of any
      inventor of the LICENSED INVENTION or the NASA name, seal, insignia,
      logotype or any other adaptation without the prior written consent of
      LICENSOR (except as otherwise provided in ARTICLE XI);
  or

            

    

    

    
      	
               
      

            	
              (g)

            	
              Precluding
      the export from the United States of ROYALTY-BASE PRODUCTS on which
      royalties shall have been paid as provided in ARTICLE VII, provided that
      the item can be exported under the export control laws of the United
      States; or

            

    

    

    
      	
               
      

            	
              (h)

            	
              Granting
      by implication or estoppel, any licenses or other rights under any patent
      of LICENSOR or any other PERSON in the United States or any foreign
      country; or

            

    

    

    
      	
               
      

            	
              (i)

            	
              Granting
      by implication, estoppel, or otherwise, any licenses or rights under
      patents or patent applications of LICENSOR other than the LICENSED
      INVENTION, regardless of whether such other patents or patent applications
      are dominant, subordinate, or an improvement
      to the invention or inventions as claimed, of the LICENSED PATENT or
      LICENSED PATENT APPLICATION, nor to other applications that did not claim
      the invention.

            

    

    
    

    

    
      
        
        

      

      
        -15-

        
          

        

      

       

      
        
        

      

    

    
      	
               
      

            	
              (j)

            	
              Conferring
      upon any PERSON (1) any immunity from or defenses under the antitrust
      laws, (2) any immunity from a charge of patent misuse, or (3) any immunity
      from the operation of Federal, State, or other
  law.

            

    

    

     

    ARTICLE
XIII

    

    Risk Allocation and
Indemnification

    

    13.1  LICENSOR makes
no representation, extends no warranties of any kind, either express or implied,
and assumes no responsibility whatsoever with respect to use, sales, or other
disposition by LICENSEE or its vendees or other transferees of products
incorporating or made by the use of (a) the LICENSED INVENTION or (b)
information, if any, furnished under this AGREEMENT.

    

    13.2  LICENSEE shall
indemnify LICENSOR, its officers and employees, and hold them harmless against
all liabilities, demands, damages, expenses, or losses including, but not
limited to, attorney’s fees, court costs, and the like, arising (a) out of the
use by LICENSEE or its transferees of the LICENSED INVENTION or information
furnished under this AGREEMENT, or (b) out of any sale, use, or other
disposition by LICENSEE or its transferees of products, processes, or
compositions, made by use of such inventions or information.

    

    13.3  It shall be
the sole responsibility of the LICENSEE to ensure that any and all embodiments
of the LICENSED INVENTION are safe under all circumstances.

    

    13.4  Independent
of, severable from, and to be enforced independently of any other enforceable or
unenforceable provision of this AGREEMENT, other than as provided in Sections
13.1 and 13.2, or other than for infringement of one PARTY’s intellectual
property rights by another PARTY, (including any engagement in licensable
activities by licenses beyond the scope of the license provided by this
AGREEMENT), neither PARTY will be liable to the other PARTY (nor to any THIRD
PARTY claiming rights derived from the other PARTY’s rights) for incidental,
consequential, special, punitive, or exemplary damages of any kind,
including lost profits, loss of business, or other economic damage, and further
including injury to property, as a result of breach of any warranty or other
term of this AGREEMENT, regardless of whether the PARTY liable or allegedly
liable was advised, had reason to know, or in fact knew of the possibility
thereof.

    

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

     

    ARTICLE
XIV

    

     

    Patent
Validity

    

    14.1  If, in any
proceeding in which the validity, infringement, or priority of invention of any
claim of the LICENSED PATENT to LICENSEE is in issue, a judgement or decree is
entered which becomes final (below referred to as an “final judgement”), the
construction placed upon any such claim by such final judgement shall thereafter
be followed, not only as to such claim but as to all claims to which such
construction applies, with respect to subsequently occurring acts.  If
such final judgement holds any claim invalid, LICENSEE shall be relieved
prospectively (a) from including in its reports ROYALTY-BASE PRODUCTS sold or
otherwise disposed of covered only by such claim or any broader claim to which
such final judgement is applicable, and (b) from the performance of those other
acts which may be required by this AGREEMENT only because of any such
claim.  However, if there are two or more conflicting final judgements
with respect to the same claim based on the same grounds or where the same
issues were raised, the decision of the higher tribunal shall be followed, but
if the tribunals be of equal dignity, then the decision more favorable to the
claim shall be followed.

    

    14.2  In the event
evidentiary material comes to the attention of the LICENSEE that, in the
judgement of the LICENSEE, bears on the validity or scope of any LICENSED
PATENT, the LICENSOR will in good faith discuss with the LICENSEE whether such
evidentiary material so affects the validity or scope of the LICENSED PATENT to
which it is asserted to apply that the terms of the license in respect to such
LICENSED PATENT should be modified.

    

    14.3  The LICENSEE,
after the LICENSE COMMENCEMENT DATE, may assert the invalidity of any claim in
any LICENSED PATENT, if coupled with or followed by:

    

    
      	
               
      

            	
              (a)

            	
              Withholding,
      or notice of intention to withhold, or denial of obligation to pay,
      royalties otherwise payable under this AGREEMENT in respect to the LICENSEE’s
      operations under such claim;
or

            

    

    
    

     

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

       

    

    
      	
               
      

            	
              (b)

            	
              Initiation
      or participation in a suit challenging or denying the validity of such
      claim in reference to LICENSEE’s operations under this AGREEMENT, that
      may, at the option of the LICENSOR, be conclusively presumed to constitute
      LICENSEE’s termination, as of the earliest provable date of such
      withholding, notice, denial, initiation, or participation, of its
      AGREEMENT including its obligation for payment of royalties due from the
      date of the termination.

            

    

    

    ARTICLE
XV

    

     

    Points of
Contact

    

    15.1  The following
PERSONS are designated as the points of contact for their respective PARTY and
are responsible for keeping this information current by providing updated
information as warranted.  These points of contact are the principal
representatives of the PARTIES involved in the performance of this
AGREEMENT.

     

    
      
        	 
      	 
      	 
      	 
      
	
                LICENSOR

              	 	

                LICENSEE

              	 
      
	 
      	 
      	 
      	 
      
	
                Name:

              	
                David Walker

              	
                Name:

              	 
      
	 
      	 
      	 
      	 
      
	
                Title:

              	
                Chief Patent Counsel

              	
                Title:

              	 
      
	 
      	 
      	 
      	 
      
	
                Address:

              	
                NASA Goddard Space

              	

                Address:

              	
                Address:

              
	 
      	 
      	 	

                Flight Center, Mail Code
    140.1

              
	 
      	 
      	 	

                Greenbelt, Maryland
20771

              
	 
      	 
      	 
      	 
      
	
                Telephone
      No.

              	
                301-286-7351

              	
                Telephone
      No.:

              	 
      
	 
      	 
      	 
      	 
      
	
                Facsimile
      No.:

              	
                301-286-9502

              	
                Facsimile
      No.:

              	 
      

      

     

    

     

    ARTICLE
XVI

    

     

    Notices

    

    16.1  All notices
hereunder will be in writing and will be delivered and effective as
follows:

     

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

     

    
      	 	(a)	Every
      notice required or contemplated by this AGREEMENT to be given either PARTY
      may be delivered in person or may be sent by commercial courier or U.S.
      mail, addressed to
      the PARTY for whom it is intended, at the address specified in ARTICLE
      XV.
	 	 	 
	
               
      

            	
              (b)

            	
              Any
      notice will be effective on the date that it is hand delivered or on the
      fifth business day after it was deposited with the commercial courier or
      the U.S. mail.

            

    

    

    
      	
               
      

            	
              (c)

            	
              As
      used in this ARTICLE, a reference to a particular date means the date
      itself, if a business day, otherwise the first business day after the
      date.

            

    

    

     

    ARTICLE
XVII

    

     

    Dispute or
Breach

    

    17.1  All disputes
concerning the interpretation or application of this AGREEMENT shall be
discussed mutually between the PARTIES.  Any disputes that are not
disposed of by mutual agreement shall be decided by the NASA Lead Counsel
Intellectual Property, or designee, who shall reduce the decision to writing and
mail or otherwise deliver a copy thereof to LICENSEE.  LICENSEE may
respond to such notice of a decision in accordance with the procedures set forth
in Section 18.8.

    

    17.2  In the event
of a BREACH of any provision of this AGREEMENT, the NONBREACHING PARTY shall
give the BREACHING PARTY notice describing the BREACH and stating that the
BREACHING PARTY has thirty (30) days after notice of the BREACH to cure the
BREACH or show cause why the AGREEMENT should not be terminated.

    

    17.3  If a provision
of this AGREEMENT sets forth a cure period for the BREACH in question other than
thirty (30) days, then that provision shall take precedence over the cure period
set forth in Section 17.2.

    

    17.4  No cure period
is required, except as may be otherwise provided in this AGREEMENT,
if:

    

    
      	
               
      

            	
              (a)

            	
              this
      AGREEMENT sets forth specific deadline dates for the obligation allegedly
      breached; or

            

    

    

    
      
        
        

      

      
        -19-

        
          

        

      

      
        
        

      

       

    

    
      	
               
      

            	
              (b)

            	
              this
      AGREEMENT otherwise states that no cure period is required
      in connection with the termination in
  question.

            

    

    
    

    

    17.5  The BREACHING
PARTY will be deemed to have cured such BREACH if within the cure period it
takes steps reasonably adequate to alleviate any damage to the NONBREACHING
PARTY resulting from the BREACH and to prevent a similar future
BREACH.

     

    

     

    ARTICLE
XVIII

    

     

    Termination or
Modification

    

    18.1  The PARTIES
may terminate or modify this AGREEMENT by mutual consent upon such terms as they
may agree in writing.

    

    18.2  Either PARTY
may terminate this AGREEMENT by failing to extend the LICENSE TERM, if an
extension is provided for in ARTICLE IV.

    

    18.3  Either PARTY
may terminate this AGREEMENT upon the discovery by one PARTY of any intentional
MATERIAL false statement or misrepresentation made or submitted by the other
PARTY which BREACHES any obligation under the terms of this AGREEMENT or upon
the discovery by one PARTY that the other PARTY has committed a MATERIAL breach
of a provision of the AGREEMENT.

    

    18.4  LICENSEE may
prospectively terminate this AGREEMENT upon ninety (90) days written notice to
LICENSOR.

    

    18.5  This AGREEMENT
may be terminated by LICENSOR if:

    

    
      	
               
      

            	
              (a)

            	
              LICENSOR
      determines that LICENSEE has failed or will fail to achieve or maintain
      PRACTICAL APPLICATION of the LICENSED INVENTION as provided by ARTICLE
      V.

            

    

    

    
      	
               
      

            	
              (b)

            	
              LICENSOR
      determines that LICENSEE has failed or will fail to reduce to practice or
      substantially manufacture the LICENSED INVENTION in the United States as
      provided by Section 6.1.

            

    

    

    
      	
               
      

            	
              (c)

            	
              LICENSOR
      determines that LICENSEE has failed or will fail to meet market demand for
      the LICENSED INVENTION.

            

    

    

    
      
        
        

      

      
        -20-

        
          

        

      

      
        
        

      

       

    

    
      	
               
      

            	
              (d)

            	
              LICENSEE
      fails to pay royalties or submit reports as provided
      by ARTICLES VII and VIII.

            

    

    
    

    

    
      	
               
      

            	
              (e)

            	
              LICENSOR
      determines that such action is necessary to meet the requirements for
      public use specified by Federal regulations issued after the date of the
      license and such requirements are not reasonably satisfied by
      LICENSEE.

            

    

    

    
      	
               
      

            	
              (f)

            	
              LICENSEE
      commits a BREACH of a covenant contained in this
  AGREEMENT.

            

    

    

    18.6  LICENSOR may
terminate this AGREEMENT if LICENSEE becomes INSOLVENT.  LICENSEE must
notify LICENSOR within thirty (30) days after becoming
INSOLVENT.  LICENSEE’s failure to conform to this requirement shall be
deemed a MATERIAL, incurable BREACH.

    

    18.7  LICENSEE must
promptly inform LICENSOR of its intention to file a voluntary petition in
bankruptcy or of another’s communicated intention to file an involuntary
petition in bankruptcy.  LICENSOR may terminate this AGREEMENT upon
receiving notice of intention to file.  LICENSEE’s filing without
conforming to this requirement shall be deemed a MATERIAL, pre-petition
incurable BREACH.

    

    18.8  Before
LICENSOR unilaterally modifies or terminates this AGREEMENT for any cause,
LICENSOR will deliver to LICENSEE and all SUBLICENSEES of record a written
notice stating LICENSOR’s intention to modify or terminate the AGREEMENT and the
reasons therefor.  LICENSEE and SUBLICENSEES of record will be allowed
thirty (30) days after: (a) such notice to remedy any BREACH of the AGREEMENT or
show cause why the AGREEMENT should not be unilaterally modified or terminated;
or, (b) such notice of a decision regarding a dispute, rendered in accordance
with Section 17.1, to rebut such decision.  A response to a notice of
modification or termination or to a notice of a dispute decision should be
addressed to the General Counsel, National Aeronautics and Space Administration,
Washington, DC  20546.  The General Counsel will render a
determination based on the LICENSEE’s response within a reasonable
time.  Absent any response from LICENSEE to the notice regarding the
modification, termination, and/or dispute decision, the decision by the Lead
Counsel Intellectual Property will be final and/or the AGREEMENT will be
unilaterally modified or will terminate, effective thirty-one (31) days from the
notice of modification, termination, or dispute decision, with no right to
appeal under Section 18.9.

    

    
      
        
        

      

      
        -21-

        
          

        

      

      
        
        

      

    

     

    18.9  LICENSEE may
appeal in writing to the NASA Administrator, any
determination rendered by the General Counsel in accordance with Section 18.8,
within thirty (30) days of notice of such determination.  The notice
of appeal and all supporting documentation should be addressed to the
Administrator, National Aeronautics and Space Administration, Washington,
DC  20546.  LICENSEE shall be afforded an opportunity to be
heard and to offer evidence in support of its appeal.  The decision on
the appeal shall be made by the NASA Administrator or designee, which shall be
the final agency decision from which there will be no further right of
administrative appeal.  Nothing in this Article shall be interpreted
as precluding actions at law.

    

    18.10  If no action
is taken under Section 18.9, then the determination rendered by the General
Counsel shall become final within thirty-one (31) days after delivery of the
notice of such determination.

    

    18.11  All royalties
and reports due up to and including the date of termination of this AGREEMENT
are due within thirty (30) days of the date of termination.

    

    

    ARTICLE
XIX

    

    Assignment

    

    19.1  Upon written
approval by LICENSOR, LICENSEE may assign this AGREEMENT provided that LICENSEE
submits to LICENSOR, in advance, a written request for permission to grant the
assignment, information that NASA considers necessary to evaluate the proposed
assignment, and a copy of the proposed assignment.  If LICENSOR
approves the assignment as being consistent with the Government’s interests, the
PARTIES and the assignee will be required to execute a novation
agreement.  At a minimum, the novation agreement will provide that
LICENSEE waives all rights under the license, the assignee assumes all
obligations under the AGREEMENT, and that LICENSOR recognizes the assignee as
the successor in interest to the AGREEMENT.

    

     

    ARTICLE
XX

    

     

    Governing
Law

    

    20.1  This AGREEMENT
will be interpreted and enforced in accordance with United States federal
law.

    

    
      
        
        

      

      
        -22-

        
          

        

      

      
        
        

      

    

     

    ARTICLE
XXI

    

     

    Independent
Entities

    

    21.1  The Parties
are separate and independent entities.  Except as may be expressly and
unambiguously provided in this AGREEMENT, no partnership or joint venture is
intended to be created by this AGREEMENT, nor any principal-agent or
employer-employee relationship.

    

    21.2  Except to the
extent expressly provided in this AGREEMENT, neither PARTY has, and neither
PARTY shall attempt to assert, the authority to make commitments for or to bind
the other PARTY to any obligation.

     

    

     

    ARTICLE
XXII

    

     

    Effect of Partial
Invalidity

    

    22.1  If any one or
more of the provisions of this AGREEMENT should be ruled wholly or partly
invalid or unenforceable by a court or other government body of competent
jurisdiction, and as long as the fundamental objectives of the AGREEMENT can be
carried out, then:

    

    
      	
               
      

            	
              (a)

            	
              the
      validity and enforceability of all provisions of this AGREEMENT not ruled
      to be invalid or unenforceable will be
  unaffected;

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      provision(s) held wholly or partly invalid or unenforceable will be deemed
      to be amended, and the court or other government body is authorized to
      reform the provision(s), to the minimum extent necessary to render them
      valid and enforceable in conformity with the PARTIES’ intent as manifested
      herein; and

            

    

    

    
      	
               
      

            	
              (c)

            	
              if
      the ruling, and/or the controlling principle of law or equity leading to
      the ruling, is subsequently overruled, modified, or amended by
      legislative, judicial, or administrative action, then the provision(s) in
      question, as originally set forth in this AGREEMENT, will be deemed to be
      valid and enforceable
      to the maximum extent permitted by the new controlling principle of law or
      equity.

            

    

    
    

     

     

    
      
        
        

      

      
        -23-

        
          

        

      

      
        
        

      

    

    

    ARTICLE
XXIII

    

     

    Nonwaiver

    

    23.1  The failure of
either PARTY at any time to require performance by the other PARTY of any
provisions of this AGREEMENT shall in no way affect the right of such PARTY to
require future performance of that provision.  Any waiver by either
PARTY of any BREACH of any provision of this AGREEMENT shall not be construed as
a waiver of any continuing or succeeding BREACH of such provision, a waiver of
the provision itself, or a waiver of any right under this
AGREEMENT.

    

     

    ARTICLE
XXIV

    

     

    Entire
Agreement

    

    24.1  Except as may
be expressly provided otherwise herein, this AGREEMENT constitutes the entire
agreement between the PARTIES concerning the subject matter
thereof.  No prior or contemporaneous representations, inducements,
promises, or agreements, oral or otherwise, between the PARTIES with reference
thereto will be of any force or effect.  This AGREEMENT may only be
modified by written agreement of the PARTIES.

    

     

    ARTICLE
XXV

    

     

    Article
Headings

    

    25.1  The Article
Headings contained in this AGREEMENT are for reference purposes only and shall
not in any way control the meaning or interpretation of this
AGREEMENT.

    

     

    
      
        
        

      

      
        -24-

        
          

        

      

      
        
        

      

    

     

    ARTICLE
XXVI

    Counterparts

    

    26.1  This AGREEMENT
may be executed in separate counterparts, each of which so executed and
delivered shall constitute an original, but all such counterparts shall together
constitute one and the same instrument.  Any such counterpart may
comprise one or more duplicates or duplicate signature pages, any of which may
be executed by less than all of the PARTIES, provided that each PARTY executes
at least one such duplicate or duplicate signature page.  The PARTIES
stipulate that a photostatic copy of an executed original will be admissible in
evidence for all purposes in any proceeding as between the PARTIES.

    

    

     

    ARTICLE
XXVII

    

     

    Acceptance

    

    27.1  In witness
whereof, each PARTY has caused this AGREEMENT to be executed by its duly
authorized representatives:

    

    
      
        	 
      	 
      
	
                LICENSOR:

              	
                LICENSEE:

              
	 
      	 
      
	
                National
      Aeronautics and

              	
                Nanotailor,
      Inc..

              
	
                Space
      Administration

              	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	/s/
      Michael C. Wholley	/s/
      Bryan
      A. Scott
	
                By:Michael C.
      Wholley

              	
                By:
      Bryan A.
    Scott

              
	
                NASA
      General Counsel

              	
                CEO

              
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
                Date:
      April 27, 2007

              	
                Date:
      April 19, 2007

              

      

    

    
      
        
        

      

      
        -25-Unassociated Document

    Exhibit
10.2 – Employment Agreement between Materials and Jeannette
Benavides

    

    
       

    

    EMPLOYMENT
AGREEMENT FOR

    Jeannette
Benavides

    

    

    

    This
Employment Agreement (the "Agreement") is made and effective this NOVEMBER
1ST,
2007,

    

    

    
      	
              BETWEEN:

            	
              Jeannette Benavides.
      (the "Employee"), an individual with her main address
  at:

            
	 
      	 
      
	 
      	
              4660
      West Braddock Rd

            
	 
      	
              Alexandria,
      VA 22311

            
	 
      	 
      
	 
      	 
      
	
              AND:

            	
              Nanotailor, Inc. (the
      "Company"), an entity organized and existing under the laws of the
      Delaware, with its head office located at:

            
	 
      	 
      
	 
      	
              701
      Brazos, Suite 500

            
	 
      	
              Austin,
      Texas, 78701

            

    

    

    RECITALS

    

    In
consideration of the covenants and agreements contained herein and the moneys to
be paid hereunder, the Company hereby employs the Employee and the Employee
hereby agrees to perform services as requested by the Company, upon the
following terms and conditions:

    

    

    
      	
              1.

            	
              TERM

            

    

    

    The
Company hereby employs the Employee to serve as the Director of Nanotechnology
Research and to serve in such additional or different position or positions as
the Company may determine in its sole discretion. This Agreement shall commence
effective as of November 1st, 2007
and shall continue [Redacted] ("Employment
Period"); unless terminated earlier, by Company or Employee, upon prior written
notice.  Further, if a change of control (as defined herein) of the Company
shall have occurred during the Employment Period, this Agreement shall continue
in effect.

    

    The
effective date of this Agreement shall be the date first set forth above, and it
shall continue in effect until the earlier of:

    

    
      	
               
      

            	
              A.

            	
              The
      effective date of any subsequent employment agreement between the Company
      and the Employee; or

            

    

    

    
      	
               
      

            	
              B.

            	
              The
      effective date of any termination of employment as provided elsewhere
      herein.

            

    

    

    

    
      	
              2.

            	
              DUTIES
      AND RESPONSIBILITIES

            

    

    

    Employee
shall report directly to the Chief Executive Officer (CEO) or other officers
from time to time as requested by the CEO.

    

    The
Employee shall serve as the Director of Nanotechnology Research.  The
primary role of the Employee
shall be to identify and develop grants for funding innovative nanotechnology
research projects in disciplines that 1) provide improvement to or development
of new types of Single-Walled carbon nanotubes; 2) provide improvement to or
development of applications that Nanotailor can incorporate its products within;
or 3) areas of research that are of interest of the Employee that are approved
in writing by the CEO. The Employee shall use at least 80% of her time to
complete this primary role.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    The
Employee shall also provide assistance with the commercialization and scale-up
of the Single-Walled carbon nanotube production process Nanotailor has licensed
from NASA.  The secondary role shall encompass 20% of the Employee’s
time, unless otherwise requested by the CEO.

    

    The
Employee shall also be required to perform other duties as assigned from time to
time by the CEO or other officers from time-to-time as requested by the
CEO.  The amount of time the Employee shall allocated to this is
variable and on an as-needed and as-requested basis.

     

    
      	
              3.

            	
              LOCATION

            

    

    

    The
initial principal location at which Executive shall perform services for the
Company shall be in Washington, D.C.  Relocation to Austin, TX is not
necessary at this time, however the Company may periodically ask Employee to
visit corporate offices in Austin, Texas for several days if
needed.

    

    

    
      	
              4.

            	
              ACCEPTANCE
      OF EMPLOYMENT

            

    

    

    Employee
accepts employment with the Company upon the terms set forth above and agrees to
devote all Employee ‘s time, energy and ability to the interests of the Company,
and to perform Employee ‘s duties in an efficient, trustworthy and business-like
manner.

    

    

    
      	
              5.

            	
              DEVOTION
      OF TIME TO EMPLOYMENT

            

    

    

    The
Employee shall devote the Employee's best efforts and substantially all of the
Employee's working time to performing the duties on behalf of the Company. The
Employee shall provide services during the normal business hours of the Company
as determined by the Company. Reasonable amounts of time may be allotted to
personal or outside business, charitable and professional activities and shall
not constitute a violation of this Agreement provided such activities do not
materially interfere with the services required to be rendered hereunder and are
not related to the production of or the integration of carbon nanotubes or
carbon nanotube substitutes.

    

    
      	
              6.

            	
              QUALIFICATIONS

            

    

    

    OMITTED

    

    COMPENSATION
– [REDACTED]

    

    

    
      	
              7.

            	
              OTHER
      EMPLOYMENT BENEFITS – [REDACTED]

            

    

    

    
      	
              8.

            	
              PROFESSIONAL
      FEES

            

    

    

    The
Company shall have exclusive authority to determine the fees, or a procedure for
establishing the fees, to be charged by the Company. All sums paid to the
Employee or the Company in the way of fees or otherwise for services of the
Employee, shall, except as otherwise specifically agreed by the Company, be and
remain the property of the Company and shall be included in the Company's name
in such checking account or accounts as the Company may from time to time
designate.

    

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    

    
      	
              9.

            	
              CLIENTS
      AND CLIENT RECORDS

            

    

     

    The
Company shall have the authority to determine who will be accepted as clients of
the Company, and the Employee recognizes that such clients accepted are clients
of the Company and not the Employee. The Company shall have the authority to
designate, or to establish a procedure for designating which professional
Employee of the Company will handle each such client. All client records and
files of any type concerning clients of the Company shall belong to and remain
the property of the Company, notwithstanding the subsequent termination of this
Agreement.

    

    

    
      	
              10.

            	
              POLICIES
      AND PROCEDURES

            

    

    

    The
Company shall have the authority to establish from time to time the policies and
procedures to be followed by the Employee in performing services for the
Company. Employee shall abide by the provisions of any contract entered into by
the Company under which the Employee provides services. Employee shall comply
with the terms and conditions of any and all contracts entered by the
Company.

    

    

    
      	
              11.

            	
              TERMINATION
      OF EMPLOYMENT

            

    

    

    12.1  For
Cause

    Notwithstanding
anything herein to the contrary, the Company may terminate Employee’s employment
hereunder for cause for any one of the following reasons: 1) conviction of
a felony, any act involving moral turpitude, or a misdemeanor where imprisonment
is imposed, 2) commission of any act of theft, fraud, dishonesty, or
falsification of any employment or Company records, 3) improper disclosure
of the Company’s confidential or proprietary information, 4) any action by
the Employee which has a detrimental effect on the Company’s reputation or
business, 5) Employee ‘s failure or inability to perform any reasonable
assigned duties after written notice from the Company of, and a reasonable
opportunity to cure, such failure or inability, 6) any breach of this
Agreement, which breach is not cured within Sixty days following written notice
of such breach, 7) a course of conduct amounting to gross incompetence,
8) chronic and unexcused absenteeism, 9) unlawful appropriation of a
corporate opportunity, or 10) misconduct in connection with the performance
of any of Employee’s duties, including, without limitation, misappropriation of
funds or property of the Company, securing or attempting to secure personally
any profit in connection with any transaction entered into on behalf of the
Company, misrepresentation to the Company, or any violation of law or
regulations on Company premises or to which the Company is subject. Upon
termination of Employee ‘s employment with the Company for cause, the Company
shall be under no further obligation to Employee, except to pay all accrued but
unpaid base salary and accrued vacation to the date of termination
thereof.

    

    12.2  Without
Cause

    The
Company may terminate Employee ‘s employment hereunder at any time without
cause, provided, however, that Employee shall be entitled to severance pay in
the amount of 2 weeks of Base Salary in addition to accrued but unpaid Base
Salary and accrued vacation, less deductions required by law, but if, and only
if, Employee executes a valid and comprehensive release of any and all claims
that the Employee may have against the Company in a form provided by the Company
and Employee executes such form within 30 days of tender.

    

    12.3  Resignation

    Upon
termination of employment, Employee shall be deemed to have resigned from the
Company.

    

    12.4  Cooperation

    After
notice of termination, Employee shall cooperate with the Company, as reasonably
requested by the Company, to effect a transition of Employee’s responsibilities
and to ensure that the Company is aware of
all matters being handled by Employee.

    

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

     

    12.5  Compensation
After Notice of Termination

    After
notice of termination has been given by either Company or Employee, as provided
in this Article, Employee shall be entitled to receive the compensation provided
for in this Agreement until the notice period has expired. It is understood that
after the written notice is given by either Company or Employee, Employee shall
continue to devote substantially all of the Employee's time to the Employee's
normal services for the Company during the notice period, with sufficient time
allowed, in the sole discretion of the Company, for Employee to seek new
employment.

    

    
      	
              12.

            	
              DISABILITY
      OF EMPLOYEE

            

    

    

    The
Company may terminate this Agreement without liability if Employee shall be
permanently prevented from properly performing his essential duties hereunder
with reasonable accommodation by reason of illness or other physical or mental
incapacity for a period of more than 120 consecutive days. Upon such
termination, Employee shall be entitled to all accrued but unpaid Base Salary
and vacation.

    

    

    13.1  Definitions

    For
purposes of this Agreement, whenever used in this Article 14:

    

    "Total disability" shall mean
that the Employee is unable, mentally or physically, whether it be due to
sickness, accident, age or other infirmity, to engage in any aspect of the
Employee's normal duties as set forth in this Agreement.

    

    "Partial disability" shall
mean that the Employee is able to perform, to some extent, on behalf of the
Company, the particular services in which the Company specializes, and which the
Employee previously performed for the Company, but that the Employee is unable,
mentally or physically, to devote the same amount of time to such services as
was devoted prior to the occurrence of such sickness or accident.

    

    "Normal monthly salary" shall
mean the salary which the Employee is being paid by the Company per month as of
the commencement date of the period of disability, as specified hereinabove or
as determined by the Board of Directors pursuant to the terms
hereof.

    

    13.2  Total
Disability

    During a
single period of total disability of the Employee, the Employee shall be
entitled to receive from the Company, the Employee's normal monthly salary for
the shorter of first three (3) months of disability or until any disability
insurance policy available through the Employee’s employment begins to pay
benefits. If the single period of disability should continue beyond three (3)
months, the Employee shall receive only such amount as the Employee shall be
entitled to receive under disability insurance coverage on the Employee, if
any.

    

    13.3  Partial
Disability

    During a
period of partial disability of the Employee, the Employee shall receive an
amount of compensation computed as follows:

    

    That
portion of the Employee's normal monthly basic compensation which bears the same
ratio to the Employee's normal monthly basic compensation as the amount of time
which the Employee is able to devote to the usual performance of services on
behalf of the Company during such period bears to the total time the Employee
devoted to performing such services prior to the commencement date of the single
period of disability, and

    

    Such
amount shall be calculated by multiplying the Employee’s basic compensation by a
fraction, the numerator of which shall be the percentage of normal services that
the Employee is able to perform and the denominator which shall be the total
services that the Employee is able to perform absent the
partial disability.

    

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

     

    13.4  Combination
of Total and Partial Disability

    If a
single period of disability of the Employee consists of a combination of total
disability and partial disability, the maximum total disability compensation to
which the Employee shall be entitled from the Company under this disability
provision shall not exceed an amount equal to one (1) times the Employee's
normal monthly basic compensation.

    

    13.5  Broken
Periods of Disability

    A period
of disability may be continuous or broken. If broken into partial periods of
disability which are separated by intervening periods of work, there shall be
aggregated together all of such successive partial periods of disability except
any period prior to the time when any single period of work extends for six
months or longer; and such aggregated periods of disability shall be treated as
a single period in determining the amount of disability compensation to which an
Employee shall be entitled under any provision of this Section.

    

    13.6  Termination
Due to Disability

    If and
when the period of total or partial disability of the Employee totals 12 months,
the Employee's employment with the Company shall automatically terminate.
Notwithstanding the foregoing, if the disabled Employee and the Company agree,
the disabled Employee may thereafter be employed by the Company upon such terms
as may be mutually agreeable.

    

    13.7  Commencement
Date of Disability

    The
commencement date of a period of disability, whether it be a continuous period
or the aggregate of successive partial periods, shall be the first day on which
the Employee is disabled.

    

    13.8  Dispute
Regarding Existence of Disability

    Any
dispute regarding the existence, extent or continuance of the disability shall
be resolved by the determination of a majority of three (3) competent
physicians, one (1) of whom shall be selected by the Company, one (1) of whom
shall be selected by the Employee and the third (3rd) of whom shall be selected
by the other two (2) physicians so selected.

    

    13.9  Death
of Employee

    In the
event the Employee shall die during the term hereof, the Company shall pay to
the Employee's surviving spouse, or if the Employee shall leave no surviving
spouse, then to the Employee's estate, 6 weeks of Base Salary in addition to
accrued but unpaid Base Salary and accrued vacation, less deductions required by
law.

    

    

    
      	
              13.

            	
              CONFIDENTIAL
      INFORMATION AND INVENTION
ASSIGNMENTS

            

    

    

    Employee
recognizes and acknowledges that all records with respect to clients, business
associates, customer or referral lists, contracting parties and referral sources
of the Company, and all personal, financial and business and proprietary
information of the Company, its Executives, officers, directors and shareholders
obtained by the Employee during the term of this Agreement and not generally
known in the public (the "Confidential Information") are valuable, special and
unique and proprietary assets of the Company's business. The Employee hereby
agrees that during the term of this Agreement and 2 years following the
termination of this Agreement, whether the termination shall be voluntary or
involuntary, or with or without cause, or whether the termination is solely due
to the expiration of the term of this Agreement, the Employee will not at any
time, directly or indirectly, disclose any Confidential Information, in full or
in part, in written or other form, to any person, firm, Company, association or
other entity, or utilize the same for any reason or purpose whatsoever other
than for the benefit of and pursuant to authorization granted by the Company.
"Confidential Information" shall also include any information (including, but
not limited to, technical or non-technical data, a formula, a pattern, a
compilation, a program, a device, a method, a technique, a drawing, a process,
financial data, financial plans, product plans, or a list of actual or potential
customers) that: (i) derives economic value, actual or potential, from
not
being generally known to, and not being readily ascertainable by proper means
by, other persons who can obtain economic value from its disclosure or use; and
(ii) is the subject of efforts that are reasonable under the circumstances to
maintain its secrecy. In the case of Company's business, Company's Trade Secrets
include (without limitation) information regarding names and addresses of any
customers, sales personnel, account invoices, training and educational manuals,
administrative manuals, prospective customer leads, in whatever form, whether or
not computer or electronically accessible "on-line."

    

    
      
         

      

      
        -5-

        
          

        

      

       

      
         

      

    

    
      	
              14.

            	
              EXCLUSIVE
      EMPLOYMENT

            

    

    

    During
employment with the Company, Employee will not do anything to compete with the
Company’s present or contemplated business. Employee will not enter into any
agreement which conflicts with his duties or obligations to the Company.
Employee will not during his employment or within 12 months after it ends,
without the Company’s express written consent, directly or indirectly, solicit
or encourage any Employee, agent, independent contractor, supplier, customer,
consultant or any other person or company to terminate or alter a relationship
with the Company.

    

    Furthermore,
The Employee covenants and agrees that, except as specifically approved by a
resolution of the Board of Directors of the Employer, she shall devote all of
her working time and give her best endeavors, energies and skills to the
discharge of her duties pursuant to this Employment Agreement, and she shall
not, as long as she is in the employ of the Employer, perform services for any
business, or engage in any other business activity, including but not limited
to, as an employee, agent, partner, associate, joint venturer, consultant,
independent contractor or investor.  Notwithstanding the foregoing
provision of this Article 15 of this Employment Agreement the Employee may
engage in the following if such engagement does not interfere with the
performance of her duties pursuant to this Employment Agreement: (i) make and
supervise passive investments in businesses which do not in any manner compete
with the Employer and which investments are equal to no more than a one (1%)
percent interest in any such business, (ii) own shares of any publicly held
corporation which does not in any manner compete with the Employer and which
shares are equal to no more than five (5%) percent of the issued and outstanding
shares of such corporation, or (iii) own shares of any publicly-held
corporations which in any manner competes with the Employer, which shares (a)
are equal to no more than three (3%) percent of the issued and outstanding
shares of such corporation, and (b) have a value equal to no more than five (5%)
percent of the Employee’s net worth.

    

    

    
      	
              15.

            	
              GRANT
      OF COMMON STOCK.

            

    

    

    IN
ADDITION TO THE COMPENSATION SET FORTH IN ARTICLE 7 OF THIS EMPLOYMENT
AGREEMENT, THE EMPLOYEE SHALL BE ISSUED FIVE HUNDRED THOUSAND (500,000) SHARES
OF COMMON STOCK IN THE PUBLIC COMPANY WITH WHICH THE EMPLOYER INTENDS TO EFFECT
A REVERSE ACQUISITION (THE “SHARES”).  THE SHARES SHALL BE ISSUED IN
THE NAME OF EMPLOYEE ON THE FIRST DAY AFTER THE REVERSE ACQUISITION BECOMES
EFFECTIVE.  IF, ONE YEAR AFTER THE DATE THE SHARES ARE ISSUED TO
EMPLOYEE (I) EMPLOYEE IS THEN CURRENTLY EMPLOYED BY EMPLOYER AND (II) EMPLOYEE
HAS NOT BREACHED ANY OF THE EMPLOYEE COVENANTS PURSUANT TO ARTICLE 15 AND
ARTICLE 12.1 OF THIS EMPLOYMENT AGREEMENT, THEN EMPLOYEE SHALL BE ENTITLED TO
RETAIN THE SHARES. HOWEVER, IF EITHER (I) EMPLOYEE IS NO LONGER EMPLOYED BY
EMPLOYER FOR ANY REASON WHATSOEVER OR (II) EMPLOYEE HAS BREACHED ANY EMPLOYEE
COVENANT PURSUANT TO ARTICLE 15 OR ARTICLE 12.1 OF THIS EMPLOYMENT AGREEMENT,
THEN THE SHARES SHALL BE CANCELLED.  IF THE SHARES ARE CANCELLED
PURSUANT TO THIS ARTICLE 16 OF THIS EMPLOYMENT AGREEMENT, EMPLOYEE SHALL RECEIVE
NO COMPENSATION FOR THE VALUE OF THE CANCELLED SHARES.  THE
CERTIFICATE EVIDENCING THE SHARES ISSUED TO THE EMPLOYEE WILL BEAR A LEGEND
EVIDENCING THE RESTRICTIONS SET FORTH IN THIS ARTICLE 16 OF THIS EMPLOYMENT
AGREEMENT.

    

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    

    16.  
HIRING

    

    The
Employee agrees that during the Employee's employment with the Company and for a
period of twelve months following the termination of this Agreement, whether the
termination shall be voluntary or involuntary, or with or without cause, or
whether the termination is solely due to the expiration of the term of this
Agreement, the Employee will not attempt to hire any other Executive or
independent contractor of the Company or otherwise encourage or attempt to
encourage any other Executive or independent contractor of the Company to leave
the Company's employ with out first gaining consent.

    

    

    
      	
              17.

            	
              CHANGE
      OF CONTROL

            

    

    

    The term
"Change of Control of the Company" shall mean a change in control of a nature
that would be required to be reported in response to Item 5(f) of Schedule 14A
of Regulation 14A promulgated under the Securities Exchange Act of 1934 ("1934
Act) as in effect on the date of this Agreement or, if Item 5(f) is no longer in
effect, any regulations issued by the Securities and Exchange Commission ("SEC")
pursuant to the 1934 Act which serve similar purposes; provided that, without
limitation, such change in control shall be deemed to have occurred if and when
(a) any "person" (as such term is used in Sections 13(d) and 14(d)(2) of the
1934 Act) is or becomes a beneficial owner, directly or indirectly, of
securities of the company representing twenty-five percent (25%) or more of the
combined voting power of the Company's then outstanding securities or (b)
individuals who were members of the Board of Directors of the Company
immediately prior to a meeting of the shareholders of the Company involving a
contest for the election of directors shall not constitute a majority of the
Board of Directors following such election.

    

    

    
      	
              18.

            	
              NO
      INCONSISTENT OBLIGATIONS

            

    

    

    Employee
is aware of no obligations, legal or otherwise, inconsistent with the terms of
this Agreement or with his undertaking employment with the Company. Employee
will not disclose to the Company, or use, or induce the Company to use, any
proprietary information or trade secrets of others. Employee represents and
warrants that he or she has returned all property and confidential information
belonging to all prior employers.

    

    

    
      	
              19.

            	
              ATTORNEYS’
      FEES

            

    

    

    The
parties hereto agree that, in the event of breach or threatened breach of any
covenants of Employee, the damage or imminent damage to the value and the
goodwill of the Company’s business shall be inestimable, and that therefore any
remedy at law or in damages shall be inadequate. Accordingly, the parties hereto
agree that the Company shall be entitled to injunctive relief against Employee
in the event of any breach or threatened breach of any of such provisions by
Employee, in addition to any other relief (including damages) available to the
Company under this Agreement or under law. The prevailing party in any action
instituted pursuant to this Agreement shall be entitled to recover from the
other party its reasonable attorneys’ fees and other expenses incurred in such
action.

    

    In the
event that either party is required to engage the services of legal counsel to
enforce the terms and conditions of this Agreement against the other party,
regardless of whether such action results in litigation, the prevailing party
shall be entitled to reasonable attorneys' fees, costs of legal assistants, and
other costs from the other party, which shall include any fees or costs incurred
at trial or in any appellate proceeding, and expenses and other costs, including
any accounting expenses incurred.

    

    

    
      	
              20.

            	
              GOVERNING
      LAW

            

    

    

    This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York without regard to conflict of law principles.

    

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

    

    
      	
              21.

            	
              AMENDMENT

            

    

    

    This
Agreement may be amended only by a writing signed by the Employee and by a duly
authorized representative of the Company.

    

    

    
      	
              22.

            	
              SEVERABILITY

            

    

    

    If any
term, provision, covenant or condition of this Agreement, or the application
thereof to any person, place or circumstance, shall be held to be invalid,
unenforceable or void, the remainder of this Agreement and such term, provision,
covenant or condition as applied to other persons, places and circumstances
shall remain in full force and effect.

    

    

    
      	
              23.

            	
              CONSTRUCTION

            

    

    

    The
headings and captions of this Agreement are provided for convenience only and
are intended to have no effect in construing or interpreting this Agreement. The
language in all parts of this Agreement shall be in all cases construed
according to its fair meaning and not strictly for or against the Company or
Employee.

    

    

    
      	
              24.

            	
              RIGHTS
      CUMULATIVE

            

    

    

    The
rights and remedies provided by this Agreement are cumulative, and the exercise
of any right or remedy by either party hereto (or by its successor), whether
pursuant to this Agreement, to any other agreement, or to law, shall not
preclude or waive its right to exercise any or all other rights and
remedies.

    

    
      	
              25.

            	
              NONWAIVER

            

    

    

    No
failure or neglect of either party hereto in any instance to exercise any right,
power or privilege hereunder or under law shall constitute a waiver of any other
right, power or privilege or of the same right, power or privilege in any other
instance. All waivers by either party hereto must be contained in a written
instrument signed by the party to be charged and, in the case of the Company, by
an officer of the Company (other than Employee) or other person duly authorized
by the Company.

    

    

    
      	
              26.

            	
              NOTICES

            

    

    

    Any and
all notices or other communication provided for herein, shall be given by
registered or certified mail, return receipt requested, in case of the Company
to its principal office, and in the case of the Employee to the Employee's
residence address set forth on the first page of this Agreement or to such other
address as may be designated by the Employee.

    

    

    
      	
              27.

            	
              ASSISTANCE
      IN LITIGATION

            

    

    

    Employee
shall, during and after termination of employment, upon reasonable notice,
furnish such information and proper assistance to the Company as may reasonably
be required by the Company in connection with any litigation in which it or any
of its subsidiaries or affiliates is, or may become a party; provided, however,
that such assistance following termination shall be furnished at mutually
agreeable times and for mutually agreeable compensation.

    

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

     

    Arbitration

    

    Any
controversy, claim or dispute arising out of or relating to this Agreement or
the employment relationship, either during the existence of the employment
relationship or afterwards, between the parties hereto, their assignees, their
affiliates, their attorneys, or agents, shall be settled by arbitration in
AUSTIN, TX. Such arbitration shall be conducted in accordance with the then
prevailing commercial arbitration rules of the ASSOCIATION (but the arbitration
shall be in front of an arbitrator, with the following exceptions if in
conflict: (a) one arbitrator shall be chosen by the Employee; (b) each
party to the arbitration will pay its pro rata share of the expenses and fees of
the arbitrator(s), together with other expenses of the arbitration incurred or
approved by the arbitrator(s); and (c) arbitration may proceed in the
absence of any party if written notice of the proceedings has been given to such
party. The parties agree to abide by all decisions and awards rendered in such
proceedings. Such decisions and awards rendered by the arbitrator shall be final
and conclusive and may be entered in any court having jurisdiction thereof as a
basis of judgment and of the issuance of execution for its collection. All such
controversies, claims or disputes shall be settled in this manner in lieu of any
action at law or equity; provided however, that nothing in this subsection shall
be construed as precluding the Company from bringing an action for injunctive
relief or other equitable relief or relief under the Confidential Information
and Invention Assignment Agreement. The arbitrator shall not have the right to
award punitive damages, consequential damages, lost profits or speculative
damages to either party. The parties shall keep confidential the existence of
the claim, controversy or disputes from third parties (other than the
arbitrator), and the determination thereof, unless otherwise required by law or
necessary for the business of the Company. The arbitrator(s) shall be required
to follow applicable law.

    

    IF FOR
ANY REASON THIS ARBITRATION CLAUSE BECOMES NOT APPLICABLE, THEN EACH PARTY, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY IRREVOCABLY WAIVES ALL
RIGHT TO TRIAL BY JURY AS TO ANY ISSUE RELATING HERETO IN ANY ACTION,
PROCEEDING, OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY
OTHER MATTER INVOLVING THE PARTIES HERETO.

    

    

    
      	
              28.

            	
              SOLICITATION

            

    

    

    The
Employee further agrees that during the term of this Agreement and following the
termination of this Agreement, whether the termination shall be voluntary or
involuntary, or with or without cause, or whether the termination is solely due
to the expiration of the term of this Agreement, the Employee will not, in any
manner or at any time, solicit or encourage any person, firm, Company or other
business entity who are clients, business associates or referral sources of the
Company to cease doing business with the Company or to do business with the
Employee.

    

    

    
      	
              29.

            	
              COVENANTS
      INDEPENDENT

            

    

    

    Each
restrictive covenant on the part of the Employee set forth in this Agreement
shall be construed as a covenant independent of any other covenant or provisions
of this Agreement or any other agreement which the Company and the Employee may
have, fully performed and not executory, and the existence of any claim or cause
of action by the Employee against the Company whether predicated upon another
covenant or provision of this Agreement or otherwise, shall not constitute a
defense to the enforcement by the Company of any other covenant.

    

    
      	
              30.

            	
              INJUNCTIVE
      AND EQUITABLE RELIEF

            

    

    

    Employee
and Company recognize and expressly agree that the extent of damages to Company
in the event of a breach by Employee of any restrictive covenant set forth
herein would be impossible to ascertain, that the irreparable harm arising out
of any breach shall be irrefutably presumed, and that the remedy at law for any
breach will be inadequate to compensate the Company. Consequently, the Employee
agrees that in the event of a breach of any such covenant, in addition to any
other relief to which Company may be entitled, Company shall be entitled to
enforce the covenant by injunctive or other equitable
relief ordered by a court of competent jurisdiction.

    

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

    

    
      	
              31.

            	
              INDEMNIFICATION

            

    

    

    The
Employee hereby agrees to indemnify and hold the Company and its officers,
directors, shareholders and Executives harmless from and against any loss,
claim, damage or expense, and/or all costs of prosecution or defense of their
rights hereunder, whether in judicial proceedings, including appellate
proceedings, or whether out of court, including without limiting the generality
of the foregoing, attorneys' fees, and all costs and expenses of litigation,
arising from or growing out of the Employee's breach or threatened breach of any
covenant contained herein.

    

    

    
      	
              32.

            	
              ACKNOWLEDGMENT

            

    

    

    The
Employee acknowledges that when this Agreement is concluded, the Employee will
be able to earn a living without violating the foregoing restrictions and that
the Employee's recognition and representation of this fact is a material
inducement to the execution of this Agreement and to Employee's continued
relationship with the Company.

    

    

    
      	
              33.

            	
              SURVIVAL
      OF COVENANTS

            

    

    

    All
restrictive covenants contained in this Agreement shall survive the termination
of this Agreement.

    

    

    
      	
              34.

            	
              LIMITATIONS
      ON AUTHORITY

            

    

    

    Without
the express written consent from the Company, the Employee shall have no
apparent or implied authority to: (i) Pledge the credit of the Company or any of
its other Executives; (ii) Bind the Company under any contract, agreement, note,
mortgage or otherwise; (iii) Release or discharge any debt due the Company
unless the Company has received the full amount thereof; or (iv) sell, mortgage,
transfer or otherwise dispose of any assets of the Company.

    

    

    
      	
              35.

            	
              REPRESENTATION
      AND WARRANTY OF EMPLOYEE

            

    

    

    The
Employee acknowledges and understands that the Company has extended employment
opportunities to Employee based upon Employee's representation and warranty that
Employee is in good health and able to perform the work contemplated by this
Agreement for the term hereof.

    

    

    
      	
              36.

            	
              INVALID
      PROVISION; SEVERABILITY

            

    

    

    The
invalidity or unenforceability of a particular provision of this Agreement shall
not affect the other provisions hereof, and the Agreement shall be construed in
all respects as if such invalid or unenforceable provisions were
omitted.

    

    
      	
              37.

            	
              MODIFICATION

            

    

    

    No change
or modification of this Agreement shall be valid unless the same be in writing
and signed by the parties hereto.

    

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

    

    
      	
              38.

            	
              ENTIRE
      AGREEMENT

            

    

     

    This
Agreement contains the entire agreement and supersedes all prior agreements and
understandings, oral or written, with respect to the subject matter hereof. This
Agreement may be changed only by an agreement in writing signed by the party
against whom any waiver, change, amendment, modification, or discharge is
sought.

    

    

    
      	
              39.

            	
              DISPUTES

            

    

    

    Any
controversy, claim or dispute arising out of or relating to this Agreement or
the employment relationship, either during the existence of the employment
relationship or afterwards, between the parties hereto, their assignees, their
affiliates, their attorneys, or agents, shall be litigated solely in state or
federal court in Austin, TX. Each party (1) submits to the jurisdiction of
such court, (2) waives the defense of an inconvenient forum, (3) agrees
that valid consent to service may be made by mailing or delivery of such service
to the Secretary of State (the “Agent”) or to the party at the party’s last
known address, if personal service delivery can not be easily effected, and
(4) authorizes and directs the Agent to accept such service in the event
that personal service delivery can not easily be effected.

    

    EACH
PARTY, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY IRREVOCABLY
WAIVES ALL RIGHT TO TRIAL BY JURY AS TO ANY ISSUE RELATING HERETO IN ANY ACTION,
PROCEEDING, OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY
OTHER MATTER INVOLVING THE PARTIES HERETO.

    

    

    

    

    

    

    

    

    IN
WITNESS HEREOF, each party to this Agreement has caused it to be executed on the
date indicated below.

     

    
      
        	
                EMPLOYEE

              	
                COMPANY

              
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
                Authorized
      Signature

              	
                Authorized
      Signature

              
	 
      	 
      
	
                /s/
      Jeannette
      Benavides

              	
                /s/
      Ramon
    Perales

              
	
                Jeannette
      Benavides

              	
                On
      behalf of Nanotailor

              

      

    

    
      

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

     

    APPENDIX
I

    

    Amendments
to Jeannette Benavides Employee Agreement

    

    
      	
              v

            	
              [Redacted}

            

    

    

    

    

    
      	
              Employee

            	
              Nanotailor,
      Inc

            
	 
      	 
      
	
              /s/
      Jeannette Benavidea

            	
              /s/
      Ramon Perales

            
	
              __________________________

            	
              _____________________________

            
	
              Signature

            	
              Signature

            
	 
      	 
      
	
              Jeannette
      Benavides

            	
              Ramon
      Perales

            
	
              __________________________

            	
              ______________________________

            
	
              Name

            	
              Name

            
	 
      	 
      
	
              2/19/08

            	
              2/19/08

            
	
              __________________________

            	
              ______________________________

            
	
              Date

            	
              Date

            

    

     

     

    
      
         

      

      
        -12-

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