Document:

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                                                                    EXHIBIT 10.4

                                    AGREEMENT

     This Agreement (this "Agreement"), is made as of May 28, 2002, by and
between Frank Alaghband, an individual ("Executive"), and Procom Technology,
Inc., a California corporation (the "Company").

                                    RECITALS

         WHEREAS, the Company and Executive are parties to that certain Amended
and Restated Employment Agreement dated October 28, 1996 (the "Employment
Agreement");

         WHEREAS, the Company and Executive desire that the Employment Agreement
and Executive's employment with the Company terminate effective as of the date
of this Agreement; and

         WHEREAS, the Company and Executive desire to set forth certain
agreements and understandings concerning the termination of Executive's
employment, all as provided in this Agreement.

                                    AGREEMENT

     In consideration of the covenants undertaken and the releases contained in
this Agreement, the Company and Executive agree as follows:

     1.  Termination of Employment and Employment Agreement. Effective as of the
date of this Agreement, (a) Executive's employment with the Company is
terminated and (b) the Employment Agreement is terminated, of no further force
or effect and superseded in its entirety by this Agreement, it being understood
and agreed that Executive shall not be entitled to any payments or benefits
whatsoever from the Company under the Employment Agreement or otherwise, except
as expressly provided in this Agreement. Without limiting the foregoing,
Executive shall not be entitled to receive compensation in respect of
Executive's status as a director of the Company at any point on or after the
date of this Agreement.

     2.  Term. The term of this Agreement shall begin on the date of this
Agreement and end on May 29, 2005 (the "Term").

     3.  Cash Payment. Not later than 5 p.m. Pacific Standard Time on May 31,
2002, Executive shall notify the Company in writing of its election to receive
either the monthly payments in accordance with Section 3(a) below or the
one-time, lump sum payment in accordance with Section 3(b) below. Executive's
election shall be irrevocable once received by the Company.

         (a) Monthly Payments. If elected by Executive pursuant to this Section
     3, the Company shall pay Executive the monthly sum of $18,750, less any
     legally required withholding and any other deductions required under
     applicable law. The first such payment shall be made to Executive on June
     28, 2002, with each additional payment

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     made on the 28th day of each succeeding month during the Term (or if such
     day is a national holiday, Saturday or Sunday, then on the first business
     day thereafter), such that the last monthly payment payable to Executive
     under this Section 3(a) shall be made to Executive on May 28, 2005 for a
     total of 36 payments, provided, however, that the unpaid amount of such
     monthly payments shall become immediately due and payable: (i) upon a
     Change of Control (as hereinafter defined); or (ii) in the event the
     Company improperly and unjustifiably fails to make a required payment under
     this Agreement within sixty days following the Company's receipt from
     Executive of written notice of such failure. A Change of Control shall mean
     a merger or consolidation involving the Company, or sale or transfer of all
     or substantially all of the Company's assets or stock, in each case
     following which the shareholders of the Company immediately prior to such
     transaction no longer own, directly or indirectly, a majority economic
     interest in the Company.

          (b) Lump-Sum Payment. If elected by Executive pursuant to this Section
     3, the Company shall make a one-time, lump sum payment to Executive in the
     amount of $225,000, less standard withholding and any other deductions
     required under applicable law. Such payment shall be made to Executive on
     or before May 31, 2002.

          (c) Offsets. Notwithstanding any contrary provision of this Agreement,
     the Company shall not have any right to offset against any payment due
     hereunder any claims of Company against Executive not released pursuant to
     this Agreement, other than claims or other amounts that are the subject of
     a final judgment of a court of competent jurisdiction.

     4. Benefits.

          (a) Except as provided in this Agreement, for the duration of the Term
     of this Agreement, Executive shall be entitled to participate in the
     Company's medical, dental and life insurance plans on the same basis (i.e.
     at the same cost, if any, to Executive) on which Executive participated in
     such plans as of immediately prior to the date of this Agreement.

          (b) Executive expressly acknowledges and agrees that he shall not be
     entitled to any other benefits or perquisites from the Company whatsoever,
     including, without limitation, any automobile allowances, use of a Company
     credit card and/or cellular phone. Upon Executive's execution of this
     Agreement, Executive shall deliver to the Company all Company credit cards,
     cellular telephones, computer equipment or other items owned by the Company
     that are in the possession or control of Executive.

     5. Confidentiality of Trade Secrets.

          (a) Executive shall not, at any time on or after the date of this
     Agreement, disclose, directly or indirectly, to any person or entity or use
     for Executive's own benefit any trade secrets or confidential information
     relating to the Company's business, operations, marketing data, business
     plans, strategies, employees, negotiations

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     and contracts with other companies, or any other subject matter pertaining
     to the business of the Company or any of its clients, customers,
     consultants or licensees, known, learned or acquired by Executive during
     the period of Executive's employment by the Company (collectively,
     "Confidential Information").

          (b) Executive shall promptly deliver to the Company upon execution of
     this Agreement or at any time the Company may so request, all memoranda,
     notes, records, reports, manuals, drawings, blueprints, Confidential
     Information and any other documents of a confidential nature belonging to
     the Company, including all copies of such material which Executive may then
     possess or have under Executive's control,. Upon termination of Executive's
     employment by the Company pursuant to this Agreement, Executive shall not
     take any document, data or other material of any nature containing or
     pertaining to the proprietary information of the Company.

     6. Non-Solicitation.

          (a) Non-Solicitation of Employees. For a period of two years from the
     date of this Agreement, Executive will not solicit any of the employees,
     agents or independent contractors of the Company to leave the employ of the
     Company for a competitive company or business. However, Executive may
     solicit any employee, agent or independent contractor who voluntarily
     terminates his or her employment with the Company after a period of 120
     days have elapsed since the termination date of such employee, agent or
     independent contractor. None of the foregoing shall be deemed a waiver of
     any and all rights and remedies the Company may have under applicable law.

          (b) Non-Solicitation of Customers. For a period of two years from the
     date of this Agreement, Executive shall not directly or indirectly, either
     for Executive or for any other person or entity, solicit any person or
     entity to terminate such person's or entity's contractual and/or business
     relationship with the Company, nor shall Executive interfere with or
     disrupt or attempt to interfere with or disrupt any such relationship. None
     of the foregoing shall be deemed a waiver of any and all rights and
     remedies the Company may have under applicable law.

     7. Release. Except for (i) those obligations created by or arising out of
this Agreement, (ii) any rights under any indemnification agreement between the
Executive and the Company, (iii) any rights arising out of the certificate of
incorporation or bylaws of the Company, (iv) any indemnification rights arising
by statute, or (iv) any rights arising out of any stock option agreement between
the Company and Executive (each as in effect on the date of this Agreement),
Executive, on behalf of himself, his descendants, dependents, heirs, executors,
administrators, assigns, and successors, and each of them, hereby covenants not
to sue and fully releases and discharges Company and its parents, subsidiaries
and affiliates, past and present, and each of them, as well as their trustees,
directors, officers, agents, attorneys, insurers, executives, stockholders,
representatives, assigns, and successors, past and present, and each of them,
hereinafter together and collectively referred to as "Releasees," with respect
to and from any and all claims, wages, demands, rights, liens, agreements,
contracts, covenants, actions, suits, causes of action, obligations, debts,
costs, expenses, attorneys' fees, damages, judgments,

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orders and liabilities of whatever kind or nature in law, equity or otherwise,
whether now known or unknown, suspected or unsuspected, and whether or not
concealed or hidden, which he now owns or holds or he has at any time heretofore
owned or held as against said Releasees, arising out of or in any way connected
with the Employment Agreement and/or Executive's employment with the Company,
his termination from employment with the Company, or any other transactions,
occurrences, acts or omissions or any loss, damage or injury whatever, known or
unknown, suspected or unsuspected, resulting from any act or omission by or on
the part of said Releasees, or any of them, committed or omitted prior to the
date of this Agreement including, without limiting the generality of the
foregoing, any claim under Title VII of the Civil Rights Act of 1964, the
Americans with Disabilities Act, the Family and Medical Leave Act of 1993, the
California Fair Employment and Housing Act, the California Family Rights Act, or
any claim for severance pay, bonus, sick leave, holiday pay, vacation pay, life
insurance, health or medical insurance or any other fringe benefit, workers'
compensation or disability.

         Except for (i) those obligations created by or arising out of this
Agreement, (ii) any rights under any indemnification agreement between the
Executive and the Company, (iii) any rights arising out of the certificate of
incorporation or bylaws of the Company, (iv) any indemnification rights arising
by statute, or (iv) any rights arising out of any stock option agreement between
the Company and Executive (each as in effect on the date of this Agreement), the
Company hereby covenants not to sue and fully releases and discharges Executive
with respect to and from any and all claims, demands, rights, liens, agreements,
contracts, covenants, actions, suits, causes of action, obligations, debts,
costs, expenses, attorneys' fees, damages, judgments, orders and liabilities of
whatever kind or nature in law, equity or otherwise, whether now known or
unknown, suspected or unsuspected, and whether or not concealed or hidden, which
it now owns or holds or has at any time heretofore owned or held as against
Executive, arising out of or in any way connected with the Employment Agreement
and/or Executive's employment with the Company, his termination from employment
with the Company, or any other transactions, occurrences, acts or omissions or
any loss, damage or injury whatever, known or unknown, suspected or unsuspected,
resulting from any act or omission by or on the part of Executive committed or
omitted prior to the date of this Agreement. Notwithstanding the foregoing or
any contrary provision of this Agreement, the foregoing release of Executive by
the Company shall not extend to any claims that arise out of facts that are
finally adjudged by a court of competent jurisdiction to constitute a willful
breach of fiduciary duty or a crime under any federal, state or local law.

         It is the intention of Executive and the Company in executing this
instrument that the same shall be effective as a bar to each and every claim,
demand and cause of action hereinabove specified. In furtherance of this
intention, each of the Company and Executive hereby expressly waives any and all
rights and benefits conferred upon it or him by the provisions of SECTION 1542
OF THE CALIFORNIA CIVIL CODE and expressly consents that this Agreement shall be
given full force and effect according to each and all of its express terms and
provisions, including those related to unknown and unsuspected claims, demands
and causes of action, if any, as well as those relating to any other claims,
demands and causes of action hereinabove specified. SECTION 1542 provides:

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                  "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE
                  CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE
                  TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE
                  MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR."

Executive and Company each acknowledges that he or it understands the
significance and consequence of such release and such specific waiver of SECTION
1542.

     8.  Severability. If any provision of this Agreement or the application
thereof is held invalid, the invalidity shall not affect other provisions or
applications of the Agreement which can be given effect without the invalid
provisions or applications and to this end the provisions of this Agreement are
declared to be severable.

     9.  Entire Agreement. This instrument constitutes and contains the entire
agreement and understanding of the parties with respect to the matters addressed
in this Agreement between the parties, and supersedes and replaces all prior
negotiations and all agreements proposed or otherwise, whether written or oral,
concerning the subject matters of this Agreement (including, without limitation,
the Employment Agreement). This is an integrated document.

     10. Counterparts. This Agreement may be executed in counterparts, and each
counterpart, when executed, shall have the efficacy of a signed original.
Photographic copies of such signed counterparts may be used in lieu of the
originals for any purpose.

     11. Arbitration. Any dispute or controversy between Executive, on the one
hand, and the Company on the other hand, in any way arising out of, related to,
or connected with this Agreement or the subject matter of this Agreement, or
otherwise in any way arising out of, related to, or connected with Executive's
employment with the Company or the termination of Executive's employment with
the Company, shall be resolved through final and binding arbitration in Orange
County, California, pursuant to California Civil Procedure Code ss.ss.
1282-1284.2, with the exception of Sections 1283 and 1283.05. In the event of
such arbitration, the prevailing party shall be entitled to recover all
reasonable costs and expenses incurred by such party in connection with such
arbitration, including attorneys' fees. The nonprevailing party shall also be
solely responsible for all costs of the arbitration, including, but not limited
to, the arbitrator's fees, court reporter fees, and any and all other
administrative costs of the arbitration, and promptly shall reimburse the
prevailing party for any portion of such costs previously paid by the prevailing
party. Any dispute as to the reasonableness of costs and expenses shall be
determined by the arbitrator.

         Except as may be necessary to enter judgment upon the award or to the
extent required by applicable law, all claims, defenses and proceedings
(including, without limiting the generality of the foregoing, the existence of
the controversy and the fact that there is an arbitration proceeding) shall be
treated in a confidential manner by the arbitrator, the parties and their
counsel, and each of their agents, and employees and all others acting on behalf
of or in concert with them. Without limiting the generality of the foregoing, no
one shall divulge to any

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third party or person not directly involved in the arbitration the contents of
the pleadings, papers, orders, hearings, trials, or awards in the arbitration,
except as may be necessary to enter judgment upon an award as required by
applicable law. Any court proceedings relating to the arbitration hereunder,
including, without limiting the generality of the foregoing, to prevent or
compel arbitration or to confirm, correct, vacate or otherwise enforce an
arbitration award, shall be filed under seal with the court, to the extent
permitted by law. Notwithstanding the foregoing, either party may seek
provisional injunctive relief in court pending final resolution or the
arbitration proceeding.

     12. Headings. The section headings contained in this Agreement are inserted
for convenience only and shall not affect in any way the meaning or
interpretation of this Agreement.

     13. Notices. All notices, requests, demands, claims and other
communications made in connection with this Agreement will be in writing. Any
notice, request, demand, claim or other communication in connection with this
Agreement shall be deemed duly given if it is sent by registered or certified
mail, return receipt requested, postage prepaid and addressed to the intended
recipient as set forth below:

                  If to the Company:

                  Procom Technology, Inc.
                  58 Discovery
                  Irvine, CA 92618
                  Attention:  Alex Razmjoo, Chief Executive Officer

                  If to the Executive:

                  Frank Alaghband
                  6 Scenic Bluff
                  Newport Coast, CA 92657

Any party may send any notice, request, demand, claim or other communication in
connection with this Agreement to the intended recipient at the address set
forth above using any other means (including personal delivery, expedited
courier, messenger service, telecopy, telex, ordinary mail or electronic mail),
but no such notice, request, demand, claim or other communication sent using
such other means shall be deemed to have been duly given unless and until it
actually is received by the intended recipient. Any party may change the address
to which notices, requests, demands, claims and other communications in
connection with this Agreement are to be delivered by giving the other parties
notice in the manner set forth in this Agreement.

     14. Governing Law. This Agreement shall be governed by and construed in
accordance with the domestic laws of the State of California without giving
effect to any choice

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or conflict of law provision or rule (whether of the State of California or any
other jurisdiction) that would cause the application of the laws of any
jurisdiction other than the State of California.

     15. Amendments and Waivers. No amendment of any provision of this Agreement
shall be valid unless the same shall be in writing and signed by Buyer and the
Sellers. No waiver by any party of any default, misrepresentation or breach of
warranty or covenant hereunder, whether intentional or not, shall be deemed to
extend to any prior or subsequent default, misrepresentation or breach of
warranty or covenant hereunder or affect in any way any rights arising by virtue
of any prior or subsequent such occurrence.

     16. Construction; Access to counsel. The parties have participated jointly
in the negotiation and drafting of this Agreement. In the event an ambiguity or
question of intent or interpretation arises, this Agreement shall be construed
as if drafted jointly by the parties and no presumption or burden of proof shall
arise favoring or disfavoring any party by virtue of the authorship of any of
the provisions of this Agreement. Executive has been advised by his own counsel
in connection with the negotiation and Executive's execution of this Agreement.

     17. Right to Injunctive and Equitable Relief. Executive's obligations not
to disclose or use Confidential Information and to refrain from the
solicitations described in Section 6 are of a special and unique character which
gives them a particular value. The Company cannon be reasonably or adequately
compensated for damages in an action at law in the event Executive braches such
obligations. Therefore, Executive expressly agrees that the Company shall be
entitled to injunctive and other equitable relief without bond or other security
in the event of such breach in addition to any other rights or remedies which
the Company may possess or be entitled to pursue. Furthermore, the obligations
of Executive under Sections 5 and 6 and the rights and remedies of the Company
under this Section 17 are cumulative and in addition to, and not in lieu of, any
obligations, rights or remedies created by applicable law relating to
misappropriation or theft of trade secrets or Confidential Information.

     18. Assignment. Executive shall have the right to assign all or any portion
of the payments required to be made to Executive hereunder; provided, that the
Company shall not be obligated to make any payment due hereunder to Executive to
any party other than Executive unless the Company shall have received from
Executive a written notice of such assignment not less than ten days prior to
the date payment is required to be made hereunder and such notice includes
reasonably specific payment instructions for the assignee; and provided further,
the Company assumes no obligation or liability for any inaccuracy of such
payment instructions. Notwithstanding the foregoing, no assignment by Executive
of all or any payments due Executive hereunder shall relieve Executive from any
covenant or obligation of Executive hereunder.

     19. Public Statements. Executive agrees that, without the prior written
consent of the Company, he shall not directly or indirectly make any public
disclosure, or any statements to or otherwise communicate with any reporter or
representative of the media, including, without limitation, any trade, technical
or financial publication, television or cable station, newspaper, magazine,
internet or other medium, or any member of the financial community, including,

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without limitation, any financial analyst in each case with respect to any
matter pertaining to the Company or the termination of Executive's employment
pursuant to this Agreement.

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     I have read the foregoing Agreement and I accept and agree to the
provisions it contains and hereby execute it voluntarily with full understanding
of its consequences.

     EXECUTED on this __ day of May, 2002.

                                         "EXECUTIVE"

                                            /s/ Frank Alaghband
                                         ---------------------------------------
                                         Name: Frank Alaghband

                                         "COMPANY"

                                         Procom Technology, Inc.
                                         a California corporation

                                         By:   /s/ Alex Razmjoo
                                             -----------------------------------
                                             ___________________________________
                                             Its:  CHIEF EXECUTIVE OFFICER
                                                   -----------------------------

                                       9<PAGE>

                                                  Exhibit 10E- License Agreement

                                Agreement License

         This License Agreement (the "Agreement") is entered into by and between
Gary Hess 27681 Alarcon Mission Viejo, Ca 92691 ("Licensor") and Seychelle
Environmental Technologies 32921 Calle Prefecto, San Juan Capistrano, Ca 92675
("Licensee") (Licensor and Licensee are collectively referred to herein as "the
parties"), with reference to the following facts:

         A. Licensor is the owner of certain proprietary rights to an invention
referred to as "hand held Pump technology".

         B. Licensee desires to license certain rights in the invention.

         NOW, THEREFORE, for good and valuable consideration, the receipt of
which is hereby acknowledged, the parties agree as follows:

1.0      THE PROPERTY.

     The "Property" refers to the invention(s) described in U.S. Patent No.
     6,136,188, a true and correct copy of which is attached hereto as Exhibit
     "A".

         1.1      PATENTS & IMPROVEMENTS.

     The Property is defined as the invention(s) described in U.S. Patent No.
     6,136,188 and any improvements, reissues or extensions, as well as any
     continuations, divisions, or substitute U.S. patent applications that shall
     be based on the patent(s); and any patent applications corresponding to the
     above-described patent(s) and patent applications that are issued, filed or
     to be filed in any and all foreign countries.

         1.2      PATENTS AND COPYRIGHT, TRADE SECRETS AND TRADEMARKS.

     The "Property" refers to all inventions described in U.S. Patent No.
     6,136,188 and to all other proprietary rights, including but not limited to
     copyrights, trade secrets, formulas, research data, know-how and
     specifications related to the invention or derived from the license
     property commonly known as "hand held Pump technology" as well as the
     AquaGear trademark rights and associated good will.

2.0      LICENSED PRODUCTS.

     "Licensed Products" are defined as any products sold by the Licensee that
     incorporates the Property.

3.0      GRANT OF RIGHTS.

     Licensor grants to Licensee the exclusive right to make, use and sell the
     Property solely in association with the manufacture, sale, use, promotion
     or distribution of the Licensed Products.

4.0      SUBLICENSE.

     Licensee may sublicense the rights granted pursuant to this agreement
     provided: Licensee obtains Licensor's prior written consent to such
     sublicense and Licensor receives such revenue or royalty payment as
     provided in the Payment section below. Any sublicense granted in violation
     of this provision shall be void.

5.0      RESERVATION OF RIGHTS.

     Licensor expressly reserves all rights other than those being conveyed or
     granted in this Agreement.

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6.0      TERRITORY.        [STATEMENT OF TERRITORY]

     The rights granted to Licensee are world-wide (the "Territory").

7.0      TERM.

         This Agreement shall commence upon the latest signature date, (the
"Effective Date") and shall extend for a period of five (5) years (the "Initial
Term"). Following the Initial Term, this agreement shall automatically renew
under the same terms and conditions for five (5) consecutive five year periods.
(the "Renewal Terms") unless Licensee provides written notice of its intention
not to renew this agreement within thirty days before the expiration of the then
current term. In no event shall the Agreement extend longer than the date of
expiration of the longest living patent or last remaining patent application
listed in the definition of the Property.

8.0      ROYALTIES.

     All royalties ("Royalties") provided for under this Agreement shall accrue
     when the items giving rise to the Royalties are sold, shipped, distributed,
     billed or paid for, whichever occurs first.

9.0      NET SALES.

     "Net Sales" are defined as Licensee's gross sales of Licensed Products
     (i.e., the gross invoice amount billed customers) less quantity discounts
     and returns actually credited. A quantity discount is a discount made at
     the time of shipment. No deductions shall be made for cash or other
     discounts, for commissions, for uncollectible accounts, or for fees or
     expenses of any kind which may be incurred by the Licensee in connection
     with the sale of Licensed Products.

10.      LICENSED PRODUCT ROYALTY.

     Licensee agrees to pay a Royalty of two (2%) percent of all Net Sales of
     Licensed Products ("Licensed Product Royalty").

         10.1     LICENSE OF TRADE SECRETS.

     Licensee agrees to pay a Royalty of one (1%) percent of all Net Sales
     revenue of all product sold or marketed under the AquaGear trade name.

         10.2     ROYALTIES ON SPIN OFFS.

     Licensee agrees to pay a Royalty in an amount to be mutually determined and
     agreed ("Spin Off Product Royalty") for all Net Sales of "Spin Off
     Products."A"Spin-Off Product" is any product that is directly derived from,
     based on, or adapted from a Licensed Product that does not meet the
     definition of a Licensed Product.

         10.3     ADJUSTMENT OF ROYALTIES FOR THIRD PARTY LICENSES.

     In the event that any Licensed Product (or other items for which Licensee
     pays Royalties to Licensor) incorporates third party character licenses,
     endorsements, or other proprietary licenses, Licensor agrees to adjust the
     Royalty rate to bear a pro rata percent of such third party licenses. A
     Licensee shall notify Licensor of any such third party licenses prior to
     manufacture. Third party licenses shall not include licenses accruing to an
     affiliate, associate or subsidiary of Licensee.

11.0     PAYMENTS AND STATEMENTS TO LICENSOR.

     Within thirty days after the end of each calendar quarter (the "Royalty
     Period"), an accurate statement of Net Sales of Licensed Products along
     with any royalty payments or sublicensing revenues due to Licensor shall be
     provided to Licensor, regardless of whether any Licensed

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     Products were sold during the Royalty Period. All payments shall be paid in
     United States currency drawn on a United States bank. The acceptance by
     Licensor of any of the statements furnished or royalties paid shall not
     preclude Licensor from questioning the correctness of any payments or
     statements in accordance with paragraph 12.0 below.

12.0     AUDIT.

     Licensee shall keep accurate books of account and records covering all
     transactions relating to the license granted in this Agreement for a period
     of three years. Licensor shall have the right to audit such records at any
     time within such three year period.

13.0     LATE PAYMENT.

     Time is of the essence with respect to all payments to be made by Licensee
     under this Agreement. If Licensee is late in any payment provided for in
     this Agreement, Licensee shall pay interest on the payment from the date
     due until paid at the rate of 1.0% per month.

14.0     LICENSOR WARRANTIES.

     Licensor warrants that it has the power and authority to enter into this
     Agreement and has no knowledge as to any third party claims regarding the
     proprietary rights in the Property which would interfere with the rights
     granted under this Agreement.

15.0     INDEMNIFICATION BY LICENSOR.

     Licensor shall indemnify Licensee and hold Licensee harmless from any
     damages and liabilities (including reasonable attorneys' fees and costs),
     arising from any breach of Licensor's warranties as defined in Licensor's
     Warranties, above, provided: (a) such claim, if sustained, would prevent
     Licensee from marketing the Licensed Products or the Property; (b) such
     claim arises out of the Property as disclosed to the Licensee, and not out
     of any change in the Property made by Licensee or a vendor; (c) Licensee
     gives Licensor prompt written notice of any such claim; and (d) such
     indemnity shall only be applicable in the event of a final decision by
     final settlement or by a court of competent jurisdiction from which no
     right to appeal exists.

16.0     INDEMNIFICATION BY LICENSEE.

     Licensee shall indemnify Licensor and hold Licensor harmless from any
     damages and liabilities (including reasonable attorneys' fees and costs),
     (a) arising out of any alleged defects or failures to perform of the
     Licensed Products or any product liability claims or use of the Licensed
     Products; and (b), any claims arising out of advertising, distribution or
     marketing of the Licensed Products, excluding in each case any claims for
     which Licensor is liable under Paragraph 15.0 above.

         16.1     LIMITATION OF LICENSOR LIABILITY.

     Licensor's maximum liability to Licensee under this Agreement, regardless
     on what basis liability is asserted, shall in no event exceed the total
     amount paid to Licensor under this Agreement. Licensor shall not be liable
     to Licensee for any incidental, consequential, punitive or special damages.

17.0     INFRINGEMENT AGAINST THIRD PARTIES.

     In the event that either party learns of imitations or infringements of the
     Property or Licensed Products, that party shall notify the other in writing
     of the infringements or imitations. Licensor shall have the right to
     commence lawsuits against third persons arising from infringement of the
     Property or Licensed Products. In the event that Licensor does not commence
     a lawsuit against an alleged infringer within sixty days after notification
     by Licensee, Licensee may commence a lawsuit against the third party.
     Before the filing suit, Licensee shall obtain the written consent of
     Licensor to do so and such consent shall not be unreasonably withheld.
     Licensor will cooperate fully and in good faith with Licensee for the
     purpose of securing and preserving Licensee's rights to the Property. Any
     recovery (including, but not limited to a judgment, settlement or licensing

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     agreement included as resolution of an infringement dispute) shall be
     divided equally between the parties after deduction and payment of all
     costs, expenses and attorneys' fees incurred by the party bringing the
     lawsuit.

18.0     EXPLOITATION.

     Licensee agrees to use commercially reasonable efforts to manufacture,
     distribute and sell Licensed Products in commercially reasonable quantities
     during the term of this Agreement and to commence such manufacture,
     distribution and sale on or before September 2002. This is a material
     provision of this Agreement.

19.0     INSURANCE.

     Licensee shall, throughout the Term, obtain and maintain, at its own
     expense, standard product liability insurance coverage, naming Licensor as
     additional named insured. Such policy shall provide protection against any
     claims, demands and causes of action arising out of any alleged defects or
     failure to perform of the Licensed Products or any use of the Licensed
     Products. The amount of coverage shall be a minimum of 3 million dollars.
     The provisions of this section shall survive termination for three years.

20.0     CONFIDENTIALITY.

     The parties acknowledge that each may be furnished or have access to
     confidential information that relates to each other's business (the
     "Confidential Information"). In the event that Information is in written
     form, the disclosing party shall label or stamp the materials with the word
     "Confidential" or some similar warning. In the event that Confidential
     Information is transmitted orally, the disclosing party shall promptly
     provide a writing indicating that such oral communication constitutes
     Confidential Information. The parties agree to maintain the Confidential
     Information in strictest confidence for the sole and exclusive benefit of
     the other party and to restrict access to such Confidential Information to
     persons bound by this Agreement, only on a need-to-know basis. Neither
     party, without prior written approval of the other, shall use or otherwise
     disclose to others, or permit the use by others of the Confidential
     Information.

21.0     TERMINATION.

     This Agreement terminates at the end of five (5) years (the "Initial Term")
     unless renewed pursuant to Paragraph 7.0 above. In no event shall the
     Agreement extend longer than the date of expiration of the longest-living
     patent (or patents) or last-remaining patent application listed in the
     definition of the Property.

22.0     LICENSOR'S RIGHT TO TERMINATE.

     Licensor shall have the right to terminate this Agreement for the following
     reasons:

     (a) Licensee fails to pay Royalties when due or fails to accurately report
     Net Sales, as defined in the Payment Section of this Agreement, and such
     failure is not cured within thirty days after written notice from the
     Licensor;

     (b) Licensee fails to introduce the product to market by September 2002 or
     to offer Licensed Products in commercially reasonable quantities during any
     subsequent year;

     (c) Licensee fails to maintain confidentiality regarding Licensor's trade
     secrets and other Information;

                                       4
<PAGE>

     (d) Licensee assigns or sublicenses in violation of the Agreement; or

     (e) Licensee fails to maintain or obtain product liability insurance as
     required by the provisions of this Agreement.

23.      EFFECT OF TERMINATION.

     Upon termination of this Agreement, all Royalty obligations accrued through
     the date of termination as established in the Payments Section shall
     immediately become due. After the termination of this license, all rights
     granted to Licensee under this Agreement shall terminate and revert to
     Licensor, and Licensee will refrain from further manufacturing, copying,
     marketing, distribution, or use of any Licensed Product or other product
     which incorporates the Property. Within thirty days after termination,
     Licensee shall deliver to Licensor a statement indicating the number and
     description of the Licensed Products which it had on hand or is in the
     process of manufacturing as of the termination date. Licensee, may dispose
     of the Licensed Products covered by this Agreement for a period of six
     months after termination or expiration except that Licensee shall have no
     such right in the event this Agreement is terminated according to the
     Licensor's Right to Terminate, above. At the end of the post-termination
     sale period, Licensee shall furnish a royalty payment and statement as
     required under the Payment Section.

24.0     DISPUTE RESOLUTION.

         24.1     MEDIATION & ARBITRATION.

     The parties agree that every dispute or difference between them, arising
     under this Agreement, shall be settled first by a meeting of the parties
     attempting to confer and resolve the dispute in a good faith manner. If the
     parties cannot resolve their dispute after conferring, any party may
     require the other parties to submit the matter to non-binding mediation,
     utilizing the services of an impartial professional mediator approved by
     all parties. If the parties cannot come to an agreement following
     mediation, the parties agree to submit the matter to binding arbitration at
     a location mutually agreeable to the parties. The arbitration shall be
     conducted on a confidential basis pursuant to the Commercial Arbitration
     Rules of the American Arbitration Association. Any decision or award as a
     result of any such arbitration proceeding shall include the assessment of
     costs, expenses and reasonable attorney's fees and shall include a written
     record of the proceedings and a written determination of the arbitrators.
     Absent an agreement to the contrary, any such arbitration shall be
     conducted by an arbitrator experienced in intellectual property law. The
     parties reserve the right to object to any individual who shall be employed
     by or affiliated with a competing organization or entity. In the event of
     any such dispute or difference, either party may give to the other notice
     requiring that the matter be settled by arbitration. An award of
     arbitration shall be final and binding on the parties and may be confirmed
     in a court of competent jurisdiction.

25.0     GOVERNING LAW.

     This Agreement shall be governed in accordance with the laws of the State
     of California.

26.0     JURISDICTION.

     The parties consent to the exclusive jurisdiction and venue of the federal
     and state courts located in Orange County, California in any action arising
     out of or relating to this Agreement. The parties waive any other venue to
     which either party might be entitled by domicile or otherwise.

27.0     WAIVER.

     The failure to exercise any right provided in this Agreement shall not be a
     waiver of prior or subsequent rights

                                       5
<PAGE>

28.0     INVALIDITY.

     If any provision of this Agreement is invalid under any applicable statute
     or rule of law, it is to be considered omitted and the remaining provisions
     of this Agreement shall in no way be affected.

29.0     ENTIRE UNDERSTANDING.

     This Agreement expresses the complete understanding of the parties and
     supersedes all prior representations, agreements and understandings,
     whether written or oral. This Agreement may not be altered except by a
     written document signed by both parties.

30.0     ATTACHMENTS & EXHIBITS.

     The parties agree and acknowledge that all attachments, exhibits and
     schedules referred to in this Agreement are incorporated in this Agreement
     by reference.

31.0     NOTICES.

     Any notice or communication required or permitted to be given under this
     Agreement shall be sufficiently given when received by certified mail,
     facsimile transmission or overnight courier.

32.0     NO JOINT VENTURE.

     Nothing contained in this Agreement shall be construed to place the parties
     in the relationship of agent, employee, franchisee, officer, partners or
     joint ventures. Neither party may create or assume any obligation on behalf
     of the other.

33.0     ASSIGNABILITY.

     Licensee may not assign or transfer its rights or obligations pursuant to
     this Agreement without the prior written consent of Licensor. Any
     assignment or transfer in violation of this section shall be void.

Each party has signed this Agreement through its authorized representative. The
parties, having read this Agreement, indicate their consent to the terms and
conditions by their signature below.

                                            "LICENSOR":

Date:                                       By: /s/
     --------------------------------          ---------------------------------

                                               Its:
                                                   -----------------------------

Date:                                       By:
     --------------------------------          ---------------------------------

                                               Its:
                                                   -----------------------------

                                            "LICENSEE":

Date:                                       By: /s/
     --------------------------------          ---------------------------------
                                                Carl Palmer, President

Date:                                       By:
     --------------------------------          ---------------------------------
                                                Paul H. Lusby, Secretary

                                       6

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