Document:

Filed by Bowne Pure Compliance

 

Exhibit 10.19

NONEXCLUSICE

SOFTWARE LICENSE AGREEMENT

This license agreement (“Agreement”) is effective as of the 28th day of September,
2004 (“Effective Date”) between Arroyo Sciences, Inc. a Delaware corporation located at 2400
Lincoln Avenue, Altadena, CA 91001 (hereinafter called “Licensee”) and the California Institute of
Technology, a not-for-profit California corporation, located at 1200 E. California Blvd., Pasadena,
CA 91125 (“Caltech’’) and its operating division, the Jet Propulsion Laboratory (“JPL”). All rights
not specifically granted in this Agreement are reserved to Caltech.

ARTICLE 1

DEFINITIONS

The following words, phrases, or terms in this Agreement shall have the following meanings:

1.1 “SHINE” means Executable Code and Source Code pertaining to Spacecraft Health Inference Engine
(SHINE) and associated programs and tools including: SHINE Development Environment software, SHINE
Delivery Environment (including, inter alia, SHINE cross-compiler) software.

1.2 “Executable Code” means computer software programs, not readily perceivable by humans, and
suitable for machine execution without the intervening steps of interpretation or compilation.

1.3 “Source Code” means computer software programs not in machine-readable format and Not suitable
for machine execution without the intervening steps of interpretation or compilation.

1.4 “Software” means copyright rights, as defined by United States copyright laws and applicable
international treaties and/or conventions, as well as any other legally recognized intellectual
property rights to the suite of programs, scripts, and manuals received from Caltech that
constitute SHINE.

1.5. “Derivative Works” means any work consisting of revisions, annotations, elaborations, or other
modifications to Software which, as a whole, represent an original work of authorship. Derivative
Works includes any updates and new releases developed during the term of this license, inclusive of
backups, updates, or merged copies permitted hereunder including the file structures, programming
instructions, user interfaces and screen formats and sequences.

1.6 “Licensed Product” means any product, device, service, which comprises, incorporates, is made
by, is enabled by, is designed by, or uses the Software.

1.7 “Sublicense” shall mean, with respect to a particular Licensed Product, an agreement with a
third party to whom Licensee has granted a right under this Agreement to make, have made, import,
have imported, use, have used, sell, have sold, offer for sale, have offered for sale, import, have
imported and otherwise exploit Licensed Products. Sublicenses shall not include Source Code, and
may be for Executable Code only. Sublicenses shall not permit the sublicensee to redistribute code
to additional parties.

1.8 “Net Revenue” shall mean gross revenue from the use of the Software including, but not limited
to, any sale, license, sublicense, lease, service, maintenance, upgrade or support activities, or
distribution less Deductible Expenses.

 

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1.9 “Deductible Expenses” means the following items incurred in connection with sales of Licensed
Products to the extent paid or allowed by Licensee and included in accordance with recognized
principles of accounting in the gross sales price billed: (i) sales, use or turnover taxes; (ii)
excise value added or other taxes, custom duties or consular fees; (iii) transportation, freight,
and handling charges, and insurance on shipments to customers; (iv) trade, cash or quantity
discounts or rebates to the extent actually granted; (v) agent fees or commissions; (vi) rebates,
refunds, and credits for any rejected or returned Software or because of retroactive price
reductions, rebates or chargebacks; and (vii) uncollected accounts receivable attributable to sales
of Software.

1.10 “Related Company” means any corporation, Limited Liability Company or other legal entity
directly or indirectly controlled by Licensee or its successors or assigns, or any successor or
..assign of such an entity. For the purpose of this Agreement, “control” shall mean the direct or
indirect ownership of at least fifty percent (50%) of the outstanding shares or other voting rights
of the subject entity to elect directors, or if not meeting the preceding, any entity owned or
controlled by or owning or controlling at the maximum control or ownership right permitted in the
country where such entity exists.

ARTICLE 2

CONFIDENTIALITY

2.1 Except as expressly provided herein, each party agrees not to disclose any terms of this
Agreement to any third party without the consent of the other party; provided, however, that
disclosures may be made as required by securities laws or other applicable laws, or to actual or
prospective investors or corporate partners, or to a party’s accountants, attorneys, and or other
professional advisors.

ARTICLE 3

COPYRIGHT MARKING

3.1 Licensee will mark, in at least one conspicuous location, a notice that the Software and
Related Materials are owned by Caltech. All marking should include: © [2004] California
Institute of Technology, Pasadena, California. ALL RIGHTS RESERVED. Based on Government Sponsored
Research NAS7-03001.

ARTICLE 4

GRANT OF LICENSE

4.1 Caltech hereby grants to Licensee a nonexclusive nontransferable license to Software, with
the right to sublicense (in the form of a Sublicense), to make, have made, import, have imported,
use, have used, sell, have sold, offer for sale, have offered for sale, import, have imported and
otherwise exploit Licensed Products throughout the world. Caltech also hereby grants to Licensee a
nonexclusive license throughout the world, with the right to sublicense, to Related Materials to
make, have made, import, have imported, use, have used, sell, have sold, offer for sale, have
offered for sale, import, have imported and otherwise exploit Licensed Products,

4.2 Caltech retains ownership of any copyright rights to the Software (as defined above),
licensed under this Agreement.

4.3 Licensee agrees to grant Caltech a fully paid-up, royalty-free nonexclusive license for
educational and research purposes to any Derivative Works of Software that are owned in whole or in
part by Licensee and that are made available to the general public.

 

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4.4 This Agreement is not assignable by Licensee to any party without the express written consent
of
Caltech, provided, however, that Licensee may assign this Agreement to a third party that acquires
substantially all of Licensee’s assets relating to this Agreement.

ARTICLE 5

USES NOT PERMITTED

5.1 Licensee may not remove or obscure any copyright or trademark notices.

5.2 The Software shall not become subject to application for patent or copyright by Licensee.

5.3 Licensee may install a reasonable number of copies of Software and shall use best efforts to
minimize the number of copies installed in order to prevent the unauthorized access or transfer of
Software. Licensee may not install any copies of Software on computers that are not owned or leased
by Licensee, its customers, sublicensees, or its Affiliates.

ARTICLE 6

ROYALTIES

6.1 Licensee agrees to pay to Caltech, on a quarterly basis, two and a half percent (2.5%) of
the Net Revenues received from the sale or licensing of Software or Licensed Products.

6.2 Licensee agrees to pay to Caltech, on a quarterly basis and in lieu of the royalties payable
under
Paragraph 6.1 hereunder, a reach through royalty of two and a half percent (2.5%) of the Net
Revenues received by sublicensees (pursuant to a Sublicense) for their sale or sublicensing of
Software or Licensed Products.

6.3 Licensee also agrees to pay minimum annual royalties, upon invoice by Caltech, and credited
against royalties payable under Paragraphs 6.1 and 6.2 for the next subsequent year, beginning on
the second anniversary of the Effective Date of this Agreement as follows:

(a) Ten thousand dollars ($10,000.00) due on the second anniversary of the Effective Date

(b) Ten thousand dollars ($10,000.00) due on the third anniversary of the Effective Date

(c) Twelve and a half thousand dollars ($12,500.00) due on the fourth anniversary of the Effective Date

(d) Fifteen thousand dollars ($15,000.00) due on the fifth anniversary of the Effective Date

(e) Seventeen and a half thousand dollars ($17,500.00) due on the sixth anniversary of the Effective Date

(I) Twenty thousand dollars ($20,000.00) due on the seventh anniversary of the Effective
Date and each anniversary thereafter prior to the end of the Term defined in Article 8 of this
Agreement.

ARTICLE 7

DUE DILIGENCE

7.1 Licensee shall have discretion over the commercialization of Licensed Products. However,

Licensee agrees to use commercially reasonable efforts to introduce commercial Licensed Product(s)
in the United States as soon as practical, consistent with sound and reasonable business practices
and judgments. Licensee shall be deemed to have satisfied its obligations under this
Paragraph if Licensee has an ongoing and active research program or marketing program, as
appropriate, directed toward production and use of one or more Licensed Products. Any efforts of
Licensee’s sublicensees (pursuant to a Sublicense) shall be considered efforts of Licensee for the
sole purpose of determining Licensee’s compliance with its obligation under this Paragraph.

 

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7.2 After the First Year from the Effective Date, Caltech shall have the right, no more often than
twice each year, to require Licensee to report to Caltech in writing on its progress in introducing
commercial Licensed Product(s) throughout the world.

ARTICLE 8

TERM

8.1 This Agreement shall commence on the Effective Date and continue for a period of ten
(10)years (“Term”), unless otherwise extended by the mutual agreement of the parties in
writing, terminated by Licensee with thirty (30) days advanced written notice to
Caltech. Notwithstanding the preceding sentence, Licensee shall be entitled to extend
the term of this Agreement for an additional ten (10) year period and subject to the
terms and conditions herein, provided, however, that Licensee provides Caltech with
ninety (90) days advanced written notice prior to the expiration of the first ten (10) year period.
At the end of the Term, Licensee shall return all copies of Software or certify their destruction.

ARTICLE 9

TERMINATION

9.1 If either party materially breaches this Agreement, the other party may elect to give the
breaching party written notice describing the alleged breach. If the breaching party has not cured
such breach within sixty (60) days after receipt of such notice, the notifying party will be
entitled, in addition to any other rights it may have under this Agreement, to terminate this
Agreement effective immediately; provided, however, that if either party receives notification from
the other of a material breach and if the party alleged to be in default notifies the other party
in writing within thirty (30) days of receipt of such default notice.

9.2 Licensee shall have the right to terminate this Agreement either in its entirety or as to any
jurisdiction or any part of the Software upon sixty (60) days written notice.

9.3 Termination of this Agreement for any reason shall not release any party hereto from any
liability which, at the time of such termination, has already accrued to the other party or which
is attributable to a period prior to such termination, nor preclude either party from pursing any
rights and remedies it may have hereunder or at law or in equity which accrued or are based upon
any event occurring prior to such termination

9.4 Articles I, 11-22 of this Agreement shall survive termination of this Agreement for any reason.

ARTICLE 10

RELATIONSHIP OF THE PARTIES

10.1 Caltech and Licensee are independent parties in this Agreement. Accordingly, there is no
agency, joint venture or partnership relationship between Caltech and Licensee under this
Agreement.

 

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ARTICLE 11

PRODUCT LIABILITY

11.1 Indemnification: Licensee agrees that Caltech (including its trustees, officers,
faculty and employees) shall have no liability to Licensee its affiliates, their customers or any
third party, for claims, demands, losses, costs, or other damages, which may result from personal
injury, death, or property damage related to the Licensed Products (“Product Liability Claims”).
Licensee agrees to defend,
indemnify, and hold harmless Caltech, its trustees, officers, agents, faculty and employees from
any such Product Liability Claims, provided that: (a) Licensee is notified promptly of any Product
Liability Claims, (b) Licensee has the sole right to control and defend or settle any
litigation within the scope of this indemnity, and (c) all indemnified parties cooperate to the
extent necessary in the defense of any Product Liability Claims.

11.2 Insurance: Prior to such time as Licensee begins to exploit Licensed Products as
provided by Paragraph 4. I hereunder, Licensee shall at its sole expense, procure and maintain
policies of comprehensive general liability insurance in amounts not less than $1,000,000 per
incident and $3,000,000 in annual aggregate and naming those indemnified under Paragraph 11.1 as
additional insureds. Such comprehensive general liability insurance shall provide (a) product
liability coverage and (b) broad form contractual liability coverage for Licensee’s
indemnification under Paragraph ILL In the event the aforesaid product liability coverage
does not provide for occurrence liability, Licensee shall maintain such comprehensive general
liability insurance for a reasonable period of not less than five (5) years after it has ceased
commercial distribution or use of any Licensed Product. Licensee shall provide Caltech with written
evidence of such insurance upon request of Caltech.

11.3 Loss of Coverage: Licensee shall provide Caltech with notice at least fifteen (15)
days prior to any cancellation, non-renewal or material change in such insurance, to the extent
Licensee receives advance notice of such matters from its insurer. If Licensee does not obtain
replacement insurance providing comparable coverage within sixty (60) days following the date of
such cancellation, non renewal or material change, Caltech shall have the right to terminate this
Agreement effective at the end of such sixty (60) day period without any additional waiting period;
provided that if Licensee credible written evidence that it has used reasonable efforts, but is
unable to obtain the required insurance, Caltech shall not have the right to terminate this
Agreement, and Caltech instead shall cooperate with Licensee to either (at Caltech’s discretion)
grant a limited waiver of Licensee’s obligations under this Article or assist Licensee in
identifying a carrier to provide such insurance or in developing a program for self-insurance or
other alternative measures.

 

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ARTICLE 12

DISCLAIMER

12.1 THE SOFTWARE IS EXPERIMENTAL IN NATURE AND IS BEING LICENSED “AS IS.” THE LICENSE OF THE
SOFTWARE DOES NOT INCLUDE ANY TECHNICAL SUPPORT. CALTECH MAKES NO WARRANTIES, REPRESENTATION OR
UNDERTAKING WITH RESPECT TO THE UTILITY, EFFICACY, SAFETY, OR APPROPRIATENESS OF USING THE
SOFTWARE. CALTECH REPRESENTS AND WARRANTS THAT IT HAS THE RIGHT TO LICENSE THE SOFTWARE TO LICENSEE
AND THAT SOFTWARE IS PROTECTED BY UNITED STATES COPYRIGHT LAWS AND APPLICABLE INTERNATIONAL
TREATIES AND/OR CONVENTIONS.

THE SOFTWARE ARE PROVIDED “AS-IS” WITHOUT WARRANTY OF ANY KIND INCLUDING ANY WARRANTIES OF
PERFORMANCE OR MERCHANTABILITY OR FITNESS FOR A PARTICULAR USE OR PURPOSE (as set forth in UCC
§§23212-2313) OR FOR ANY PURPOSE WHATSOEVER, FOR THE LICENSED PRODUCT, HOWEVER USED.

IN NO EVENT SHALL CALTECH BE LIABLE FOR ANY DAMAGES AND/OR COSTS, INCLUDING BUT NOT LIMITED TO
INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND, INCLUDING ECONOMIC DAMAGE OR INJURY TO PROPERTY
AND LOST PROFITS, REGARDLESS OF WHETHER CALTECH SHALL BE ADVISED, HAVE REASON TO KNOW, OR IN FACT
SHALL KNOW OF THE POSSIBILITY.

LICENSEE BEARS ALL RISK RELATING TO QUALITY AND PERFORMANCE OF THE SOFTWARE.

CALTECH SHALL NOT BE LIABLE FOR ANY USE OF THE SOFTWARE OR RELATED KNOWHOW,
AND LICENSEE HEREBY AGREES TO DEFEND, INDEMNIFY AND HOLD CALTECH AND ITS EMPLOYES HARMLESS FROM ANY
LOSS, CLAIM, DAMAGE OR LIABILITY, OR WHATEVER KIND OF NATURE, WHICH MAY ARISE FROM THE AGREEMENT,
OR THE USE BY LICENSEE OF THE SOFTWARE OR RELATED KNOW-HOW HEREUNDER.

ARTICLE 13

MISCELLANEOUS

13.1 Licensee agrees that it shall not use the name of Caltech, California Institute of Technology,
Jet Propulsion Laboratory, or JPL in any advertising or publicity material, or make any form of
representation or statement which would constitute an express or implied endorsement by Caltech of
any Licensed Product, and that it shall not authorize others to do so, without first having
obtained written approval from Caltech, except as may be required by governmental law, rule or
regulation.

13.2 This Agreement shall be binding upon and inure to the benefit of any successor or assignee of
Caltech and Licensee.

13.3 Any notice or communication required or made under this Agreement shall be addressed as
follows:

	 	 	 	 	 
	 

	 	CALTECH:
	 	Director, Office of Technology Transfer
	 

	 	 	 	California Institute of Technology
	 

	 	 	 	1200 East California Boulevard (MC 210-85)
	 

	 	 	 	Pasadena, CA 91125 
	 

	 	 	 	Fax No.: (626) 356-2486 
	 
	 	 	 	 
	 

	 	LICENSEE:
	 	Arroyo Sciences, Inc.
	 

	 	 	 	Attn: CEO
	 

	 	 	 	2400 Lincoln Avenue
	 

	 	 	 	Altadena, CA 9100 I
	 

	 	 	 	Fax No.: (626) 296-6311 

 

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Either party may notify the other in writing of a change of address or fax number, in which event
any subsequent communication relative to this Agreement shall be sent to the last said notified
address or number, provided, however, that the parties shall deliver all material notices under
this Agreement by registered mail or overnight delivery service. All notices and communications
relating to this Agreement shall be deemed to have been given when received.

13.5 In the event that any provisions of this Agreement are determined to be invalid or
unenforceable by a court of competent jurisdiction, the remainder of the Agreement shall remain in
full force and effect without said provision. The parties shall in good faith negotiate a
substitute clause for any provision declared invalid or unenforceable, which shall most nearly
approximate the intent of the parties in entering this Agreement.

13.6 This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument.

13.7 The headings of the several Paragraphs are inserted for convenience of reference only and are
not intended to be a part of or to affect the meaning or interpretation of this Agreement.

13.8 Whenever provision is made in this Agreement for either party to secure the consent Or
approval of the other, that consent or approval shall not unreasonably be withheld or delayed, and
whenever in this
Agreement provisions are made for one party to object to or disapprove a matter, such objection or
disapproval shall not unreasonably be exercised.

ARTICLE 14

FORCE MAJEURE

14. Neither party shall lose any rights hereunder or be liable to the other party for damages or
losses (except for payment obligations) on account of failure of performance by the defaulting
party if the failure is occasioned by war, strike, fire, Act of God, earthquake, flood, lockout,
embargo, governmental acts or orders or restrictions, failure of suppliers, or any other reason
where failure to perform is beyond the reasonable control and not caused by the negligence or
intentional conduct or misconduct of the nonperforming party, and such party has exerted all
reasonable efforts to avoid or remedy such force majeure; provided, however, that in no event shall
a party be required to settle any labor dispute or disturbance.

 

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ARTICLE 15

EXPORT REGULATION

15.1 If at any time after Licensee  has received the Software and has reason to transfer the
Software or Licensed Product incorporating the Software to its subsidiary, associated or related company,
either within or outside of the United States, Licensee shall immediately notify Caltech of such
fact before executing the delivery. When exporting Caltech Software or Licensed Product
incorporating such Software to a foreign entity, Licensee shall comply with all federal export laws
and statutes. In the event an export license is required to execute the transfer,
Licensee shall apply and obtain approval for such license through the appropriate U.S. government
agency. Warning: An unsecured internet transfer (ftp) is an export for purposes of this
Agreement, even if the destination address is a domestic site.

ARTICLE 16

SUPPORT, MAINTENANCE AND UPGRADES

16.1 No upgrades or support are provided under this Agreement.

ARTICLE 17

MISCELLANEOUS

17.1 If any provision(s) of this Agreement shall be held to be invalid, illegal, or
unenforceable by a court or other tribunal of competent jurisdiction, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

17.2 No failure or delay by Caltech in enforcing any right or remedy under this Agreement shall be
construed as a waiver of any future or other exercise of such right or remedy by Caltech.

17.3 Licensee agrees to pay any and all taxes (if applicable) on any amounts of royalties and/or
fees paid by Licensee to Caltech hereunder.

 

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17.4 This Agreement, entered into in the County of Los Angeles, shall be construed and enforced in
accordance with and be governed by the laws of the State of California without reference to
conflict of laws principles, The parties hereby consent to the exclusive personal jurisdiction and
venue of the courts within the State of California,

17.5 This Agreement constitutes the sole and entire agreement of the parties as to the matter set
forth herein and supersedes any previous agreements, understandings, and arrangements, whether oral
or written, between the parties relating hereto. No waiver of or change in any of the terms hereof
subsequent to the execution hereof claimed to have been made by any representative of either party
shall have any force or effect unless in writing, signed by duly authorized representatives of the
parties.

SIGNATURES

IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be effective, valid, and
binding upon the parties as of the date below as executed by their
duly authorized representatives.

	 	 	 	 	 	 	 
	Arroyo Science, Inc.	 	California Institute of Technology
	(Licensee)	 	(Caltech)
	 
	 	 	 	 	 	 
	By:

	 	/s/ Carl Kukkonen
	 	By:
	 	/s/ Richmond Wolf
	 

	 	 
	 	 	 	 
	Authorized Signature	 	Authorized Signature
	 
	 	 	 	 	 	 
	Printed Name: Carl Kukkonen	 	Printed Name: Richmond Wolf
	Title: CEO	 	Title: Director
	Date: 9/28/04	 	Date: 9/10/04

 

9Filed by Bowne Pure Compliance

 

Exhibit 10.20

SOFTWARE LICENSE AGREEMENT

This software license agreement (“Agreement”) is effective as of the 15th day of March, 2006
(“Effective Date”) between VIASPACE Inc. a Nevada corporation located at 2400 Lincoln Avenue,
Altadena, CA 91001 (hereinafter called “Licensee”) and the California Institute of Technology, a
not-for-profit California corporation, located at 1200 E. California Blvd., Pasadena, CA 91125
(“Caltech”) through its operating division, the Jet Propulsion Laboratory (“JPL”). All rights not
specifically granted in this Agreement are reserved to Caltech.

ARTICLE 1

DEFINITIONS

The following words, phrases, or terms in this Agreement shall have the following meanings:

1.1 “SHINE” means Executable Code and Source Code pertaining to Spacecraft Health Inference Engine
(SHINE) and associated programs and tools including: SHINE Development Environment software, SHINE
Delivery Environment (including, inter alia, SHINE cross-compiler) software.

1.2 “Executable Code” means computer software programs, not readily perceivable by humans, and
suitable for machine execution without the intervening steps of interpretation or compilation.

1.3 “Source Code” means computer software programs not in machine-readable format and not suitable
for machine execution without the intervening steps of interpretation or compilation.

1.4 “Software” means copyright rights, as defined by United States copyright laws and applicable
international treaties and/or conventions, as well as any other legally recognized intellectual
property rights to the suite of programs, scripts, and manuals owned Caltech that constitute SHINE.

1.5. “Derivative Works” means any work consisting of revisions, annotations, elaborations, or other
modifications to Software made by Licensee which, as a whole, represent an original work of
authorship. Derivative Works includes any updates and new releases developed by Licensee during the
term of this license, inclusive of backups, updates, or merged copies permitted hereunder including
the file structures, programming instructions, user interfaces and screen formats and sequences.

1.6 “Licensed Product” means any product, device, service, which comprises, incorporates, is made
by, is enabled by, is designed by, or uses the Software.

1.7 “Sublicense” shall mean, with respect to a particular Licensed Product, an agreement with a
third party to whom Licensee has granted a right under this Agreement to make, have made, import,
have imported, use, have used, sell, have sold, offer for sale, have offered for sale, sublicense,
import, have imported and otherwise exploit Licensed Products.

1.8 “Net Revenue” shall mean revenue attributable to the use of the Software including, but not
limited to, any sale, license, lease, service, maintenance, upgrade or support activities
(including the provision of technical assistance to a sublicense directly related to and
attributable to the Software), or distribution less Deductible Expenses. For a Licensed Product
that incorporates Software with substantially no modifications or other components, the
attributable revenue shall comprise the gross revenue. For a Licensed Product that is a component
of a larger more complex system, the attributable revenue shall comprise a pro rata portion of
the gross revenue based on the relative contribution provided by the Licensed Product as
compared to the other components and shall specifically exclude revenue attributable to the other
components.

 

 

 

1.9 “Deductible Expenses” means the following items incurred in connection with sales of Licensed
Products to the extent actually paid by Licensee and included in accordance with recognized
principles of accounting in the gross sales price billed: (i) sales, use or turnover taxes; (ii)
excise value added or other taxes, custom duties or consular fees; (iii) transportation, freight,
and handling charges, and insurance on shipments to customers; (iv) trade, cash or quantity
discounts or rebates to the extent actually granted; (v) agent fees or commissions; (vi) rebates,
refunds, and credits for any rejected or returned Software or because of retroactive price
reductions, rebates or chargebacks; and (vii) uncollected accounts receivable attributable to sales
of Software.

1.10 “Related Company” means any corporation, Limited Liability Company or other legal entity
directly or indirectly controlled by Licensee or its successors or assigns, or any successor or
assign of such an entity. For the purpose of this Agreement, “control” shall mean the direct or
indirect ownership of at least fifty percent (50%) of the outstanding shares or other voting rights
of the subject entity to elect directors, or if not meeting the preceding, any entity owned or
controlled by or owning or controlling at the maximum control or ownership right permitted in the
country where such entity exists.

1.11 “Field” means applications relating to, explosives detection, detection of weapons of mass
destruction, environmental monitoring and control, automotive and transportation, power and gas
management, water management, asset and personnel tracking, financial, business intelligence,
supply chain management, gaming, interactive radio and television, video and audio processing,
maritime security, building and structure security and management (including security access, HVAC,
control systems), inference and sensor data fusion products for emergency response applications,
and Artificial Intelligence software development environments.

1.12 “Related Materials” means any materials owned by Caltech useful for understanding and
implementing the Software.

ARTICLE 2

CONFIDENTIALITY

2.1 Except as expressly provided herein, each party agrees not to disclose any terms of this
Agreement to any third party without the consent of the other party; provided, however, that
disclosures may be made as required by securities laws or other applicable laws, or to actual or
prospective investors or corporate partners, or to a party’s accountants, attorneys, and or other
professional advisors, and additionally to any potential Sublicensees.

ARTICLE 3

COPYRIGHT MARKING

3.1 Licensee will mark, in at least one conspicuous location in a Licensed Product, a notice that
the Software and Related Materials are owned by Caltech. All marking should include: © [2004]
California Institute of Technology, Pasadena, California. ALL RIGHTS RESERVED. Based on Government
Sponsored Research NAS7-03001.

 

 

 

ARTICLE 4

GRANT OF LICENSE

4.1 Caltech hereby grants to Licensee and Related Companies (i) an exclusive license to Software,
with the right to sublicense (in the form of a Sublicense), to make, have made, import, have
imported, use, have used, sell, have sold, offer for sale, have offered for sale, import, have
imported and otherwise exploit Licensed Products throughout the world in the Field; and (ii) a
non-exclusive
nontransferable license to Software, with the right to sublicense (in the form of a Sublicense), to
make, have made, import, have imported, use, have used, sell, have sold, offer for sale, have
offered for sale, import, have imported and otherwise exploit Licensed Products throughout the
world in all areas other than the Field. Caltech also hereby grants to Licensee and Related
Companies a nonexclusive throughout the world, with the right to sublicense (in the form of a
Sublicense), to Related Materials to make, have made, import, have imported, use, have used, sell,
have sold, offer for sale, have offered for sale, import, have imported and otherwise exploit
Licensed Products. For the avoidance of doubt, the rights granted under this Section 4.1 are
subject to existing nonexclusive licenses previously granted to Arroyo Sciences, Inc.,
ViaChange.com, Inc., ViaLogy Corp., and Smiths Detection.

4.2 Caltech retains ownership of any copyright rights to the Software (as defined above), licensed
under this Agreement.

4.3 Licensee agrees to grant Caltech a fully paid-up, royalty-free nonexclusive, license for
educational and research purposes to any Derivative Works of Software in executable form that are
owned in whole or in part by Licensee and that are made available to customers of Licensee.

4.4 This Agreement is not assignable by Licensee to any party without the express written consent
of Caltech, provided, however, that Licensee may assign this Agreement to a third party that
acquires substantially all of Licensee’s assets relating to this Agreement. In addition, Licensee
may assign this Agreement to a third party by (i) providing Caltech thirty (30) days prior written
notice of the assignment, including the new assignee’s contact information; (ii) the new assignee
agreeing in writing to Caltech to be bound by this Agreement; and (iii) providing Caltech with the
lesser of one hundred thousand dollars ($100,000) or thirty-percent (30%) of the consideration
received by Licensee for such assignment. Upon a permitted assignment of this Agreement pursuant to
this Section, Licensee will be released of liability under this Agreement and the term “Licensee”
in this Agreement will mean the assignee.

4.5 Upon request of Licensee, Caltech shall provide a written statement to Licensee to furnish to
potential sublicensees describing the rights granted to Licensee hereunder.

ARTICLES

USES NOT PERMITTED

5.1 Licensee may not remove or obscure any copyright or trademark notices.

5.2 The Software shall not become subject to application for patent or copyright by Licensee. For
the avoidance of doubt, any Derivative Works shall be owned by Licensee and/or its Sublicenses and
such entities may obtain patent or copyright protection for any Derivate Works.

5.3 Licensee and its sublicensees may each install a reasonable number of copies of Software and
shall use best efforts to minimize the number of copies installed in order to prevent the
unauthorized access or transfer of Software. Licensee may not install any copies of Software on
computers that are not owned or leased by Licensee, its customers, sublicensees, or Related
Companies.

ARTICLE 6

ROYALTIES

6.1 Licensee agrees to pay to Caltech, on a quarterly basis, two percent (2.0%) of the Net Revenues
(including any equity consideration received by Licensee).

 

 

 

6.2 Licensee shall pay Caltech thirty percent (30%) of the Net Revenues that Licensee receives from
Sublicenses (including any equity consideration received by Licensee). Such Net Revenues
specifically shall not include payments made by a sublicensee in consideration of: (a) equity or
debt securities of Licensee; (b) to support research or development activities to be undertaken by
Licensee; (c) upon the achievement by Licensee of specified milestones or benchmarks relating to
the development of Licensed Products; (d) pilot studies;; (e) the license or sublicense of any
intellectual property other than the Software; (I) products other than Licensed
Products; or (g) reimbursement for patent or other expenses. Any non-cash consideration that is
received by Licensee for the sublicensing or use of the Software will be converted to a cash value
based on fair market value or a value mutually agreed upon. Only in the case of non-cash
consideration received by Licensee for sublicensing or use of the Software, Licensee may pay the
royalties provided in Article 6 with equity interests.

6.3 A minimum annual royalty of twenty five thousand dollars ($25,000.00) is due Caltech on
February I, 2008 and every year thereafter upon written invoice by Caltech. Any royalties paid
under Sections 6.1 and 6.2 for the one-year period preceding the date of payment of the minimum
annual royalty shall be creditable against the annual minimum.

6.4 If Licensee or a Related Company is required to make any payment (including, but not limited
to, royalties or other license fees) to one or more third parties to obtain a patent license in the
absence of which it could not legally make, import, use, sell, or offer for sale
Licensed Products in any country, and Licensee provides Caltech with reasonably satisfactory
evidence of such third-party payments, such third party payments shall be fully creditable against
royalties owed to Caltech hereunder, provided that in no one year shall the aggregate of all such
expenses be credited against more than twenty-five percent (25%) of royalty payments to Caltech.
Any greater amount of such expenses may be carried over and credited against royalties owed in
future years, subject in every case to the 25% annual cap for that year.

6.5 For the purpose of determining royalties payable under this Agreement, any royalties or other
revenues Licensee receives from sublicensees in currencies other than U.S. dollars and any Net
Revenues denominated in currencies other than U.S. dollars shall be converted into U.S. dollars
according to the noon buying rate of the Federal Reserve Bank of New York on the last business day
of the quarterly period for which such royalties are calculated.

6.6 Licensee shall keep complete and accurate production and accounting records relating to
commercialization (including via sublicensing) of Licensed Products. Caltech shall be entitled to
have an independent CPA periodically audit such records, during Licensee’s normal business hours,
to determine Licensee’s compliance with the provisions of this Article 5. Licensee shall reimburse
Caltech 100% of any unpaid royalties resulting from any noncompliance discovered as a result of any
such audit; and Licensee shall also pay Caltech an additional 25% of the entire amount of any
underpayment exceeding 10% of the corresponding amount previously paid. Such audits shall be at
Caltech’s expense, and shall occur no more than once annually, except that in the case of any
underpayment exceeding 10% of the amount actually paid: (a) Licensee shall reimburse Caltech for
the cost of such audit; and (b) Caltech shall be entitled to conduct additional quarterly audits,
at Licensee’s expense, until any such audit demonstrates that Licensee is in compliance with its
obligations.

6.7 For so long as royalties are payable under this Agreement, Licensee shall, at the written
request of Caltech, report in writing to Caltech on or before April 30th, July 31st, October 31st,
and January 31st, Net Revenues and the number of units of Licensed Products sold during the
preceding calendar quarter by Licensee, and the royalties or other revenues Licensee received from
sublicensees during the preceding calendar quarter for the sale of Licensed Products. Each such
report shall also set forth an explanation of the calculation of the royalties payable hereunder
and be accompanied by payment of the royalties shown by said report to be due Caltech.

 

 

 

ARTICLE 7

DUE DILIGENCE

7.1 Licensee shall have discretion over the commercialization of Licensed Products. However,
Licensee agrees to use commercially reasonable efforts to introduce commercial Licensed Product(s)
in the United States as soon as practical, consistent with sound and reasonable business practices
and judgments. Licensee shall be deemed to have satisfied its obligations under this Paragraph if
Licensee has an ongoing and active research program or marketing program, as appropriate, directed
toward production and use of one or more Licensed Products. Any efforts of Licensee’s sublicensees
(pursuant to a Sublicense) shall be considered efforts of Licensee for the sole purpose of
determining Licensee’s compliance with its obligation under this Paragraph.

7.2 After the First Year from the Effective Date, Caltech shall have the right, no
more often than twice each year, to require Licensee to report to Caltech in writing on its
progress in introducing commercial Licensed Product(s) throughout the world.

ARTICLE 8

TERM

8.1 This Agreement shall commence on the Effective Date and continue for a period often
(10) years (“Term”), unless otherwise extended by the mutual agreement of the parties in writing,
or unless earlier terminated by Licensee with thirty (30) days advanced written notice to Caltech.
Upon any such termination, (i) Licensee and its affiliates shall have six (6) months to complete
any pending licensing or sublicensing negotiations and/or to complete the manufacture of any
Licensed Products that are work in progress and to sell their inventory, provided Licensee pays the
applicable royalties in accordance with paragraph 6.1; and (ii) Caltech shall accept an assignment
by Licensee of any Sublicenses granted by Licensee, and any Sublicense so assigned shall remain in
full force and effect. Notwithstanding the preceding sentence, Licensee shall be entitled to extend
the term of this Agreement for an additional five (5) year period and subject to the terms and
conditions herein, provided, however, that Licensee provides Caltech with ninety (90) days advanced
written notice prior to the expiration of the first ten (10) year period. At the end of the Term,
Licensee shall return all copies of Software or certify their destruction.

ARTICLE 9

TERMINATION

9.1 If either party materially breaches this Agreement, the other party may elect to
give the breaching party written notice describing the alleged breach. If the breaching
party has not cured such breach within sixty (60) days after receipt of such notice, the notifying
party will be entitled, in addition to any other rights it may have under this Agreement, to
terminate this Agreement effective immediately.

9.2 Licensee shall have the right to terminate this Agreement either in its entirety or
as to any jurisdiction or any part of the Software upon sixty (60) days written notice.

9.3 Termination of this Agreement for any reason shall not release any party hereto from any
liability which, at the time of such termination, has already accrued to the other party or which
is attributable to a period prior to such termination, nor preclude either party from pursing any
rights and remedies it may have hereunder or at law or in equity which accrued or are based upon
any event occurring prior to such termination.

 

 

 

ARTICLE 10

EQUITY GRANT; RELATIONSHIP OF THE PARTIES

10.1 Licensee agrees to irrevocably issue to Caltech, in partial consideration of Licensee’s
receipt of the licenses granted under this Agreement, one hundred thousand (100,000) shares of
common stock of Licensee pursuant to a mutually acceptable stock purchase agreement between
Licensee and Caltech.

10.2 Caltech and Licensee are independent parties in this Agreement. Accordingly, there is no
agency, joint venture or partnership relationship between Caltech and Licensee under this
Agreement.

ARTICLE 11

PRODUCT LIABILITY

11.1 Indemnification: Licensee agrees that Caltech (including its trustees, officers, faculty and
employees) shall have no liability to Licensee its affiliates, their customers or any third party,
for claims, demands, losses, costs, or other damages, which may result from personal injury, death,
or property damage related to the Licensed Products (“Product Liability Claims”). Licensee agrees
to defend, indemnify, and hold harmless Caltech, its trustees, officers, agents, faculty and
employees from any such Product Liability Claims, provided that: (a) Licensee is notified promptly
of any Product Liability Claims, (b) Licensee has the sole right to control and defend or settle
any litigation within the scope of this indemnity, and (c) all indemnified parties cooperate to the
extent necessary in the defense of any Product Liability Claims.

ARTICLE 12

DISCLAIMER

12.1 THE SOFTWARE IS EXPERIMENTAL IN NATURE AND IS BEING LICENSED “AS IS.“THE LICENSE OF THE
SOFTWARE DOES NOT INCLUDE ANY TECHNICAL SUPPORT. CALTECH MAKES NO WARRANTIES, REPRESENTATION OR
UNDERTAKING WITH RESPECTTO THE UTILITY, EFFICACY, SAFETY, OR APPROPRIATENESS OF USING THE SOFTWARE.
CALTECH REPRESENTS AND WARRANTS THAT IT HAS THE RIGHT TO LICENSE THE SOFTWARE TO LICENSEE AND THAT
SOFTWARE IS PROTECTED BY UNITED STATES COPYRIGHT LAWS AND APPLICABLE INTERNATIONAL TREATIES AND/OR
CONVENTIONS.

THE SOFTWARE ARE PROVIDED “AS-IS” WITHOUT WARRANTY OF ANY KIND INCLUDING ANY WARRANTIES OF
PERFORMANCE OR MERCHANTABILITY OR FITNESS FOR A PARTICULAR USE OR PURPOSE (as set forth in UCC
§§232l2-2313) OR FOR ANY PURPOSE WHATSOEVER, FOR THE LICENSED PRODUCT, HOWEVER USED.

IN NO EVENT SHALL CALTECH BE LIABLE FOR ANY DAMAGES AND/OR COSTS, INCLUDING BUT NOT LIMITED TO
INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND, INCLUDING ECONOMIC DAMAGE OR INJURY TO PROPERTY
AND LOST PROFITS, REGARDLESS OF WHETHER CALTECH SHALL BE ADVISED, HAVE REASON TO KNOW, OR IN FACT
SHALL KNOW OF THE POSSIBILITY.

LICENSEE BEARS ALL RISK RELATING TO QUALITY AND PERFORMANCE OF THE SOFTWARE.

CALTECH SHALL NOT BE LIABLE FOR ANY USE OF THE SOFTWARE OR RELATED KNOWHOW, AND LICENSEE HEREBY
AGREES TO DEFEND, INDEMNIFY AND HOLD CALTECH AND ITS EMPLOYES HARMLESS FROM ANY LOSS, CLAIM, DAMAGE
OR LIABILITY, OR WHATEVER KIND OF NATURE, WHICH MAY ARISE FROM THE AGREEMENT, OR THE USE BY
LICENSEE OF THE SOFTWARE OR RELATED KNOW-HOW HEREUNDER.

 

 

 

ARTICLE 13

MISCELLANEOUS

13.1 Licensee agrees that it shall not use the name of Caltech, California Institute of Technology,
Jet Propulsion Laboratory, or JPL in any advertising or publicity material, or make any form of
representation or statement which would constitute an express or implied endorsement by Caltech of
any Licensed Product, and that it shall not authorize others to do so, without first having
obtained written approval from Caltech, except as may be required by governmental law, rule or
regulation. Notwithstanding the foregoing, Licensee shall be entitled to announce or otherwise
release factually accurate information describing this Agreement with the prior written approval of
Caltech, such approval not to be unreasonably withheld.

13.2 This Agreement shall be binding upon and inure to the benefit of any successor or assignee of
Caltech and Licensee.

13.3 Any notice or communication required or made under this Agreement shall be addressed as
follows:

	 	 	 	 	 
	 

	 	CALTECH:
	 	Director, Office of Technology Transfer
	 

	 	 	 	California Institute of Technology
	 

	 	 	 	1200 East California Boulevard (MC 210-85)
	 

	 	 	 	Pasadena, CA 91125
	 

	 	 	 	Fax No.: (626) 356-2486 
	 
	 	 	 	 
	 

	 	LICENSEE:
	 	VIASPACE Inc.
	 

	 	 	 	Attn: CEO
	 

	 	 	 	2400 Lincoln Avenue
	 

	 	 	 	Altadena, CA 91001 
	 

	 	 	 	Fax No.: (626) 296-6311

Either party may notify the other in writing of a change of address or fax number, in which event
any subsequent communication relative to this Agreement shall be sent to the last said notified
address or number, provided, however, that the parties shall deliver all material notices under
this Agreement by registered mail or overnight delivery service. All notices and communications
relating to this Agreement shall be deemed to have been given when received.

13.4 In the event that any provisions of this Agreement are determined to be invalid or
unenforceable by a court of competent jurisdiction, the remainder of the Agreement shall remain in
full force and effect without said provision. The parties shall in good faith negotiate a
substitute clause for any provision declared invalid or unenforceable, which shall most nearly
approximate the intent of the parties in entering this Agreement.

13.5 This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument.

13.6 The headings of the several Paragraphs are inserted for convenience of reference only and are
not intended to be a part of or to affect the meaning or interpretation ofthis Agreement.

13.7 Whenever provision is made in this Agreement for either party to secure the consent or
approval of the other, that consent or approval shall not unreasonably be withheld or delayed, and
whenever in this Agreement provisions are made for one party to object to or disapprove a matter,
such objection or disapproval shall not unreasonably be exercised.

 

 

 

ARTICLE 14

FORCE MAJEURE

14. Neither party shall lose any rights hereunder or be liable to the other party for damages or
losses (except for payment obligations) on account of failure of performance by the defaulting
party if the failure is occasioned by war, strike, fire, Act of God, earthquake, flood, lockout,
embargo, governmental acts or orders or restrictions, failure of suppliers, or any other reason
where failure to perform is beyond the reasonable control and not caused by the negligence or
intentional conduct or misconduct of the nonperfornring party, and such party has exerted all
reasonable efforts to avoid or remedy such force majeure; provided, however, that in no event shall
a party be required to settle any labor dispute or disturbance.

ARTICLE 15

EXPORT REGULATION

15.1 If at any time after Licensee has received the Software and has reason to transfer the
Software or Licensed Product incorporating the Software to its subsidiary, associated or related
company, either within or outside of the United States, Licensee shall immediately notify Caltech
of such fact before executing the delivery. When exporting Caltech Software or Licensed Product
incorporating such Software to a foreign entity, Licensee shall comply with all federal export laws
and statutes. In the event an export license is required to execute the transfer,
Licensee shall apply and obtain approval for such license through the appropriate U.S. government
agency. Warning: An unsecured internet transfer (ftp) is an export for purposes of this Agreement,
even if the destination address is a domestic site.

ARTICLE 16

SUPPORT, MAINTENANCE AND UPGRADES

16.1 Caltech shall use best efforts to transfer the Software and Related Materials to Licensee
after the Effective Date. In addition, Caltech shall provide updated versions ofthe
Software as they become available or after any significant modifications or enhancements have been
made for a period no less than two (2) years after the Effective Date.

ARTICLE 17

MISCELLANEOUS

17.1 If any provision(s) of this Agreement shall be held to be invalid, illegal, or unenforceable
by a court or other tribunal of competent jurisdiction, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or impaired thereby.

17.2 No failure or delay by Caltech in enforcing any right or remedy under this Agreement shall
beconstrued as a waiver of any future or other exercise of such right or remedy by Caltech.

17.3 Licensee agrees to pay any and all taxes (if applicable) on any amounts of royalties and/or
fees paid by Licensee to Caltech hereunder.

17.4 This Agreement, entered into in the County of Los Angeles, shall be construed and enforced in
accordance with and be governed by the laws of the State of California without reference to
conflict of laws principles. The parties hereby consent to the exclusive personal jurisdiction and
venue of the courts within the State of California.

17.5 This Agreement constitutes the sole and entire agreement of the parties as to the matter set
forth herein and supersedes any previous agreements, understandings, and arrangements, whether oral
or written, between the parties relating hereto. No waiver of or change in any of the terms hereof
subsequent to the execution hereof claimed to have been made by any representative of either party
shall have any force or effect unless in writing, signed by duly authorized representatives of the
parties.

 

 

 

SIGNATURES

IN WITNESS WHEREOF, the parties hereto have executed this Agreement to he effective,
valid, and binding upon the parties as of the date below as executed by their duly authorized
representatives.

	 	 	 	 	 	 	 	 	 
	VIASPACE Inc.	 	 	 	California Institute of Technology
	(Licensee)	 	 	 	(CALTECH)
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 	 	 
	Authorized Signature	 	 	 	Authorized Signature
	Printed Name: Carl Kukkonen	 	 	 	Printed Name: Lawrence Gillbert
	Title: CEO	 	 	 	Title: SR DR Tech Transfer
	Date: 3/16/06	 	 	 	Date: 3/14/06

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