Document:

REGISTRATION
      RIGHTS AGREEMENT

     

    This
      Registration Rights Agreement (this “Agreement”),
      is
      entered into as of May 1, 2006 by and between Electric Aquagenics Unlimited,
      Inc., a Delaware corporation (the “Company”),
      and
      Water Science, LLC, a Florida limited liability company (the “Investor”).

     

    RECITALS

     

    WHEREAS,
      on the
      date hereof, the Investor is being issued 1,600,000 shares of the Company’s
      common stock, par value $.0001 per share (the “Common
      Stock”)
      and a
      Warrant to purchase 6,400,000 shares of the Company’s Common Stock, expiring on
      May 1, 2009 (the “Warrant”)

     

    WHEREAS,
      the
      Company and the Investor deem it to be in their respective best interests to
      set
      forth the rights of the Investor in connection with the sale of shares of Common
      Stock and upon exercise of the Warrant (the “Registrable
      Shares”)
      and
      are by entering into this Agreement as a condition to and in connection with
      the
      Subscription Agreement entered into by and between the Investor and the Company
      on the date hereof (the “Subscription
      Agreement”).

     

    NOW,
      THEREFORE, in
      consideration of the premises and other good and valuable consideration, the
      receipt and sufficiency of which are hereby acknowledged, each of the parties
      hereto hereby agrees as follows:

     

    AGREEMENT

     

    1.  Registration
      Rights.

     

    (a)  Beginning
      on the first anniversary of the date hereof but no later than the second
      anniversary of the date hereof (the “Registration
      Period”),
      the
      Company shall prepare and file with the Securities and Exchange Commission
      (the
“SEC”),
      a
      registration statement and such other documents as may be necessary, and use
      its
      best efforts to have such registration statement declared effective as soon
      as
      reasonably practicable after such filing, so as to permit the registered resale
      of the Registrable Shares, for a period of two (2) years following the issuance
      of the last Registrable Share. The Company will include in such registration
      statement the information required under the Securities Act of 1933, as amended
      (the “Securities
      Act”)
      to be
      so included concerning the Investor, as provided by the Investor pursuant to
      this Agreement and any other agreements between the parties, including any
      changes in such information that may be provided by the Investor in writing
      to
      the Company from time to time.

     

    (b)  In
      the
      event that the Company does not file a registration statement to register the
      Registrable Shares with the SEC within the Registration Period, or within such
      period as extended by such additional number of days as are solely and directly
      attributable to any delay caused by any act or failure to act by the Investor
      or
      its counsel, the Company will be required to pay a penalty to the Investor
      equal
      to one percent (1%) of the purchase price for the Investor’s Registrable Shares,
      and an additional one percent (1%) for each subsequent 30-day period during
      which such registration statement is not filed.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (c)  Notwithstanding
      the foregoing provisions of this Section 1, the Company may voluntarily suspend
      the effectiveness of any such registration statement for a limited time, which
      in no event shall be longer than 60 days in any three-month period and no longer
      than 120 days in any twelve month period, if the Company has been advised in
      writing by counsel or underwriters to the Company that the offering of any
      Registrable Shares pursuant to the registration statement would materially
      adversely affect, or would be improper in view of (or improper without
      disclosure in a prospectus), a proposed financing, reorganization,
      recapitalization, merger, consolidation, or similar transaction involving the
      Company, in which case the Company shall keep such registration statement
      effective for an additional period of time beyond two (2) years following the
      last issuance of a Registrable Share equal to the number of days the
      effectiveness thereof is suspended pursuant to this provision. The Company
      shall
      notify the Investor to such effect, and, upon receipt of such notice, the
      Investor shall immediately discontinue any sales of Registrable Shares pursuant
      to such registration statement until the Investor has received copies of a
      supplemented or amended prospectus or until the Investor is advised in writing
      by the Company that the then current prospectus may be used and has received
      copies of any additional or supplemental filings that are incorporated or deemed
      incorporated by reference in such prospectus.

     

    (d)  If
      any
      event occurs that would cause any such registration statement to contain a
      material misstatement or omission or not to be effective and usable during
      the
      period that such registration statement is required to be effective and usable,
      the Company shall promptly notify the Investor of such event and, if requested,
      the Investor shall immediately cease making offers of Registrable Shares and
      return all prospectuses to the Company. The Company shall promptly file an
      amendment to the registration statement to correct such misstatement or omission
      and use its commercially reasonable efforts to cause such amendment to be
      declared effective as soon as practicable thereafter. The Company shall promptly
      provide the Investor with revised prospectuses and, following receipt of the
      revised prospectuses, the Investor shall be free to resume making offers of
      the
      Registrable Shares. In the event of such an occurrence, the Company shall keep
      such registration statement effective for an additional period of time beyond
      two (2) years following the last issuance of a Registrable Share equal to the
      number of days the effectiveness thereof is suspended pursuant to this
      provision.

     

    (e)  Notwithstanding
      any provision contained herein to the contrary, the Company’s obligation to
      include, or continue to include, Registrable Shares in any such registration
      statement under this Section 1 shall terminate to the extent such shares are
      eligible for resale under Rule 144(k) promulgated under the Securities
      Act.

     

    (f)  If
      and
      whenever the Company is required by the provisions of this Agreement to use
      its
      commercially reasonable efforts to effect the registration of the Registrable
      Shares under the Securities Act for the account of the Investor, the Company
      will, as promptly as possible:

     

    (i)  prepare
      and file with the SEC a registration statement complying with applicable
      requirements under the Securities Act with respect to such securities and use
      its commercially reasonable efforts to cause such registration statement to
      become and remain effective;

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (ii)    
      prepare
      and file with the SEC such amendments and supplements to such registration
      statement and the prospectus used in connection therewith as may be necessary
      to
      keep such registration statement effective and to comply with the requirements
      of the Securities Act and the rules and regulations promulgated by the SEC
      thereunder relating to the sale or other disposition of the securities covered
      by such registration statement; and

     

    (iii)   
      furnish
      to the Investor such numbers of copies of a prospectus complying with the
      requirements of the Securities Act, and such other documents as the Investor
      may
      reasonably request in order to facilitate the public sale or other disposition
      of the Registrable Shares owned by the Investor, but the Investor shall not
      be
      entitled to use any selling materials other than a prospectus and such other
      materials as may be approved by the Company, which approval will not be
      unreasonably withheld.

     

    (g)  The
      expenses incurred by the Company in connection with action taken by the Company
      to comply with this Section 1, including, without limitation, all registration
      and filing fees, printing and delivery expenses, accounting fees, fees and
      disbursements of counsel to the Company, consultant and expert fees, and
      premiums for liability insurance, if the Company chooses to obtain such
      insurance, obtained in connection with a registration statement filed to effect
      such compliance and all expenses, including counsel fees, of complying with
      any
      state securities laws, shall be paid by the Company. All fees and disbursements
      of any counsel, experts, or consultants employed by the Investor shall be borne
      by the Investor. The Company shall not be obligated in any way in connection
      with any registration pursuant to this Section 1 for any selling commissions
      or
      discounts payable by the Investor to any underwriter or broker of securities
      to
      be sold by the Investor. The Investor agrees that any such selling commissions
      or discounts shall be borne by the Investor.

     

    (h)  The
      Company will indemnify and hold harmless the Investor, its officers, directors
      and each underwriter of such securities, and any person who controls the
      Investor or underwriter within the meaning of Section 15 of the Securities
      Act
      (each an “Investor
      Indemnified Party”),
      against all claims, actions, losses, damages, liabilities and expenses, joint
      or
      several, to which any of such persons may become subject under the Securities
      Act or otherwise, insofar as such losses, claims, damages, liabilities or
      actions arise out of or are based upon any untrue statement of any material
      fact
      contained in any registration statement under which such securities were
      registered under the Securities Act, any preliminary prospectus or final
      prospectus contained therein, or any amendment or supplement thereof, or arise
      out of or are based upon the omission to state therein a material fact required
      to be stated therein or necessary to make the statements therein, in light
      of
      the circumstances under which they were made, not misleading, and will reimburse
      such Investor Indemnified Party for any legal and any other expenses reasonably
      incurred by such Investor Indemnified Party in connection with investigating
      or
      defending any such loss, claim, damage, liability, or action; provided,
      however,
      that
      the Company will not be liable in any such case to the extent that any such
      loss, claim, damage, liability or action arises directly out of or is based
      primarily upon an untrue statement or omission made in said registration
      statement, said preliminary prospectus or said prospectus, or said amendment
      or
      supplement in reliance upon and in conformity with written information furnished
      to the Company by the Investor or such underwriter specifically for use in
      the
      preparation thereof.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (i)  At
      any
      time when a prospectus relating to the Registrable Shares is required to be
      delivered under the Securities Act, the Company will notify the Investor of
      the
      happening of any event, upon the notification or awareness of such event by
      an
      executive officer of the Company, as a result of which the prospectus included
      in such registration statement, as then in effect, includes an untrue statement
      of material fact or omits to state a material fact required to be stated therein
      or necessary to make the statements therein not misleading in light of the
      circumstances then existing.

     

    (j)  In
      the
      event of any registration of any securities under the Securities Act pursuant
      to
      this Section 1, the Investor agrees to indemnify and hold harmless the Company,
      its officers, directors and any person who controls the Company within the
      meaning of Section 15 of the Securities Act (each a “Company
      Indemnified Party”),
      against any losses, claims, damages, liabilities, or actions, joint or several,
      to which a Company Indemnified Party may become subject under the Securities
      Act
      or otherwise, insofar as such losses, claims, damages, liabilities, or actions
      arise out of or are based upon any untrue statement of any material fact
      contained in any registration statement under which such securities were
      registered under the Securities Act, any preliminary prospectus or final
      prospectus contained therein, or any amendment or supplement thereto, or arise
      out of or are based upon the omission to state therein a material fact required
      to be stated therein or necessary to make the statements therein not misleading,
      in each case to the extent that any such loss, claim, damage, liability, or
      action arises out of or is based upon an untrue statement or omission made
      in
      said registration statement, preliminary prospectus or prospectus or amendment
      or supplement in reliance upon and in conformity with written information
      furnished to the Company by the Investor or any affiliate (as defined in the
      Securities Act) of the Investor specifically for use in the preparation
      thereof.

     

    (k)  Any
      party
      entitled to indemnification hereunder will (i) give prompt written notice to
      the
      indemnifying party of any claim with respect to which it seeks indemnification,
      and (ii) unless in such indemnified party’s reasonable judgment, based upon
      advise of counsel, a conflict of interest between such indemnified and
      indemnifying parties may exist with respect to such claim, permit such
      indemnifying party to assume the defense of such claim with counsel reasonably
      satisfactory to the indemnified party. If such defense is assumed, the
      indemnified party will not be subject to any liability for any settlement made
      by the indemnifying party without its consent (which consent may not be
      unreasonably withheld). An indemnifying party who is not entitled to, or elects
      not to, assume the defense of a claim will not be obligated to pay the fees
      and
      expenses of more than one counsel for all parties indemnified by such
      indemnifying party, based upon advise of counsel, with respect to such claim,
      unless in the reasonable judgment of any indemnified party a conflict of
      interest may exist between such indemnified party and any other of such
      indemnified parties with respect to such claim.

     

    (l)  With
      a
      view to making available to the Investor the benefits of Rule 144 promulgated
      under the Securities Act, the Company agrees that it will use its commercially
      reasonable efforts to maintain registration of its Common Stock under Section
      12
      or 15 of the Securities Exchange Act of 1934, as amended (the “Exchange
      Act”),
      and
      to file with the SEC in a timely manner all reports and other documents required
      to be filed by an issuer of securities registered under the Exchange Act so
      as
      to maintain the availability of Rule 144. Upon the request of any record owner,
      the Company will deliver to such owner a written statement as to whether it
      has
      complied with the reporting requirements of Rule 144.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2.  Representations
      and Warranties of the Investor.
      The Investor hereby represents and warrants to the Company as
      follows:

     

    (a)  The
      Investor is acquiring the Registrable Shares for its own account, for investment
      and not with a view to, or for resale in connection with, any distribution
      or
      public offering thereof within the meaning of the Securities Act, and applicable
      state securities laws.

     

    (b)  The
      Investor acknowledges that the certificate(s) representing the Registrable
      Shares acquired by the Investor shall bear a restrictive legend substantially
      as
      follows:

     

    THIS
      SECURITY HAS NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933
      (THE “ACT”) OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE OFFERED OR SOLD
      UNLESS REGISTERED AND QUALIFIED PURSUANT TO THE APPLICABLE PROVISIONS OF FEDERAL
      AND STATE SECURITIES LAWS OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION OR
      QUALIFICATION APPLIES. THEREFORE, NO SALE OR TRANSFER OF THIS SECURITY SHALL
      BE
      MADE, NO ATTEMPTED SALE OR TRANSFER SHALL BE VALID, AND THE ISSUER SHALL NOT
      BE
      REQUIRED TO GIVE ANY EFFECT TO ANY SUCH TRANSACTION UNLESS (A) SUCH TRANSACTION
      HAS BEEN DULY REGISTERED UNDER THE ACT AND QUALIFIED OR APPROVED UNDER
      APPROPRIATE STATE SECURITIES LAWS, OR (B) THE ISSUER HAS FIRST RECEIVED AN
      OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH REGISTRATION,
      QUALIFICATION OR APPROVAL IS NOT REQUIRED.

     

    (c)  The
      Investor acknowledges that the Registrable Shares will be “restricted
      securities” within the meaning of Rule 144 under the Securities Act, are subject
      to restrictions on transferability and resale and may not be transferred or
      resold except as permitted under the Securities Act and applicable state
      securities laws, pursuant to registration or exemption therefrom. The Investor
      is aware that the Investor may be required to bear the financial risks of this
      investment for an indefinite period of time.

     

    (d)  The
      Investor further represents and warrants that the Investor is an “accredited
      investor” within the meaning of Rule 501(a) of Regulation D under the Securities
      Act, and the Investor has executed the Certificate of Accredited Investor
      Status, attached hereto as Exhibit
      A.

     

    (e)  The
      Investor has full power and authority to execute and deliver this Agreement,
      (ii) the execution and delivery by the Investor of this Agreement and the
      performance by it of its obligations hereunder have been authorized by all
      necessary action of the Investor, (iii) this Subscription Agreement has been
      duly and validly executed and delivered by the Investor and constitutes the
      legal, valid and binding obligation of the Investor, and (iv) this Agreement
      is
      enforceable against the Investor in accordance with its terms.

     

    3.  Representations
      and Warranties of the Company.
      The
      Company hereby represents and warrants to the Investor as follows:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (a)  The
      Company is duly incorporated, validly existing and in good standing under the
      laws of its state of incorporation, and is duly qualified to do business as
      a
      foreign corporation in all jurisdictions in which the failure to be so qualified
      would materially and adversely affect the business or financial condition,
      properties or operations of the Company.

     

    (b)  The
      Company has duly authorized the issuance and sale of the Registrable Shares
      in
      accordance with the terms of this Agreement (as described herein) by all
      requisite corporate action, including the authorization of the Company’s Board
      of Directors of the issuance and sale of the Registrable Shares in accordance
      herewith, and the execution, delivery and performance of any other agreements
      and instruments executed in connection herewith. This Agreement constitutes
      a
      valid and legally binding obligation of the Company, enforceable in accordance
      with its terms, except (i) as limited by applicable bankruptcy, insolvency,
      reorganization, moratorium, and other laws of general application affecting
      enforcement of creditors’ rights generally, (ii) as limited by laws relating to
      the availability of specific performance, injunctive relief, or other equitable
      remedies, and (iii) to the extent the indemnification provisions contained
      herein may be limited by applicable federal or state securities
      laws.

     

    4.  Survival;
      Indemnification.
      All
      representations, warranties, covenants and the indemnification obligations
      contained in this Agreement shall survive (i) the acceptance of this Agreement
      by the Company, (ii) changes in the transactions, documents and instruments
      described herein which are not material or which are to the benefit of the
      Investor, and (iii) the death or disability of the Investor. The Investor
      understands the meaning and legal consequences of the representations,
      warranties and covenants in Section 2 hereof and that the Company has relied
      upon such representations, warranties and covenants in determining the
      Investor’s qualification and suitability to purchase Registrable Shares. The
      Investor hereby agrees to indemnify, defend and hold harmless the Company and
      its respective officers, directors, employees, agents and controlling persons,
      from and against any and all losses, claims, damages, liabilities, expenses
      (including attorneys’ fees and disbursements), judgments or amounts paid in
      settlement of actions arising out of or resulting from the untruth of any
      representation of the Investor herein or the breach of any warranty or covenant
      of the Investor made herein. Notwithstanding the foregoing, no representation,
      warranty, covenant or acknowledgment made herein by the Investor shall in any
      manner be deemed to constitute a waiver of any rights granted to it under the
      Securities Act or state securities laws or otherwise.

     

    5.  Additional
      Rights and Obligations.
      The
      registration rights hereunder are in addition to, and not in lieu of, the
      registration rights granted to the Investor pursuant to the Registration Rights
      Agreement, dated as of September 16, 2005 (the “Initial Registration Rights
      Agreement”), and nothing herein stated shall in any way modify or effect the
      obligations of the Company, or the rights of the Investor, under the Initial
      Registration Rights Agreement.

     

    6.  Notices.
      All notices and other communications provided for under this Note shall be
      in
      writing (including by facsimile) and addressed, delivered or transmitted in
      accordance with Section 6.7 of the Subscription Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    7.  Assignability.
      This
      Agreement is not assignable by the Investor, and may not be modified, waived
      or
      terminated except by an instrument in writing signed by the party against whom
      enforcement of such modification, waiver or termination is sought.

     

    8.  Binding
      Effect.
      Except
      as otherwise provided herein, this Agreement shall be binding upon and inure
      to
      the benefit of the parties and their respective heirs, executors,
      administrators, successors, legal representatives and permitted assigns, and
      the
      agreements, representations, warranties and acknowledgments contained herein
      shall be deemed to be made by and be binding upon such heirs, executors,
      administrators, successors, legal representatives and permitted
      assigns.

     

    9.  Obligations
      Irrevocable.
      The
      obligations of the Investor shall be irrevocable, except with the consent of
      the
      Company, until the issuance of the Registrable Shares; provided,
      however,
      that
      the Investor may revoke the subscription hereunder at any time prior to the
      Company’s acceptance of same.

     

    10.  Entire
      Agreement.
      This
      Agreement constitutes the entire agreement of the Investor and the Company
      relating to the matters contained herein, superseding all prior contracts or
      agreements, whether oral or written.

     

    11.  Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Delaware, without regard to the principles of conflicts of law thereof
      that would require the application of the laws of any jurisdiction other than
      Delaware.

     

    12.  Severability.
      If any
      provision of this Agreement or the application thereof to the Investor or any
      circumstance shall be held invalid or unenforceable to any extent, the remainder
      of this Agreement and the application of such provision to other subscriptions
      or circumstances shall not be affected thereby and shall be enforced to the
      greatest extent permitted by law.

     

    13.  Headings.
      The
      headings in this Agreement are inserted for convenience and identification
      only
      and are not intended to describe, interpret, define, or limit the scope, extent
      or intent of this Agreement or any provision hereof.

     

    14.  Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed and delivered shall be deemed to be an original and all of which
      together shall be deemed to be one and the same agreement.

     

     

    (Remainder
      of Page Intentionally Left Blank)

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the parties have caused the execution of this Agreement by
      their duly authorized representatives as of the day and the year first above
      written.

     

    

    
      	 	 	 
	 	ELECTRIC
              AQUAGENICS, INC. 
	 
 	 
 	 
 
	 	By:  	/s/ Gaylord
              M. Karren
	 	
              
Name:
              Gaylord M. Karren 
	 	Title:  
              Chief Executive Officer

    

    
      	 	 	 
	 	 
	 	WATER
              SCIENCE, LLC
	 
 	 
 	 
 
	 	By:  	/s/ Peter
              Ullrich
	 	
              
Name:
              Peter Ullrich
	 	Title:  
              Sole MemberAMENDED
      AND RESTATED EXCLUSIVE
      LICENSE AND DISTRIBUTION AGREEMENT

     

    THIS
      AMENDED AND RESTATED EXCLUSIVE LICENSE AND DISTRIBUTION AGREEMENT (the
“Agreement”) is entered into as of the 1st
      day of
      May, 2006 (the “Effective Date”) by and between Electric Aquagenics Unlimited,
      Inc., a Delaware corporation having its principal offices located at 1464 West
      40 South, Lindon, UT 84042 (“Licensor”), and Water Science, LLC, a limited
      liability company having its principal offices located at 1800 N.W.
      89th
      Place,
      Miami, Florida 33172 (the “Licensee”).

     

    RECITALS

     

    Licensor
      and Licensee have entered into that certain Exclusive License and Distribution
      Agreement, dated September 16, 2005 (the “Initial License Agreement”);

     

    Licensor
      is the owner and will be the owner or exclusive licensee of all intellectual
      property and other rights, title and interest in and to certain technology
      that
      changes the molecular composition of tap water to produce low-cost, non-toxic
      electrolyzed oxidative fluids used for cleaning, disinfection, remediation
      and
      hydration previously developed and developed in the future (collectively, the
      “Technology”), including, but not limited to, patents, service marks (the
“Servicemarks”),
      trade
      secrets and products utilizing or embodying the Technology listed on
Schedule
      A
      and any
      other products previously developed or developed in the future by the Company,
      whether or not utilizing or embodying the Technology (collectively, the
“Products”), and is the owner of all rights, title and interest in and to the
      trademarks and Servicemarks as used in connection with the Products including
      those listed on Schedule B
      (collectively, the “Trademarks”).

     

    Licensee
      has obtained an exclusive license from Licensor to exploit the Technology,
      to
      make, use, distribute and sell the Products and to use the Trademarks in
      connection therewith and Licensor desires to grant such license to Licensee
      on
      the terms and conditions set forth herein.

     

    Licensor
      and Licensee desire to amend and restate the Initial License Agreement to update
      the list of Products and Technology covered by this License and to specify
      the
      pricing in connection therewith. 

     

    NOW,
      THEREFORE, in consideration for the mutual covenants and promises contained
      in
      this Agreement and other good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, the parties agree as
      follows:

     

    
      
        	1.	
                GRANT
                  OF EXCLUSIVE RIGHTS;
                  CONSIDERATION

              

      

    

     

    (a)  Exclusive
      Technology
      and Product License.
      Subject
      to the other terms and conditions set forth in this Agreement, Licensor hereby
      grants to Licensee the exclusive right and license to commercialize and exploit
      the Technology which includes any and all future modifications, enhancements,
      improvements or other developments with respect thereto developed, licensed
      or
      otherwise acquired by Licensor as Licensee deems appropriate and to manufacture
      or have manufactured, use, distribute, license and sell the Products and to
      offer related services, as well as sublicense others to do the same, including
      under the claims of any patents owned or licensed by Licensor, in the
      territories listed on Schedule
      C
      (collectively, the “Territories” or the “Territory”).

     

    (b)  Exclusive
      Trademark License.
      Subject
      to the other terms and conditions set forth in this Agreement, Licensor hereby
      grants to Licensee the exclusive right and license to use the Trademarks and
      Servicemarks in connection with the promotion, marketing and sale of the
      Products in the Territories.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (c)  Exclusive
      Product
      Distribution Rights.
      Subject
      to the other terms and conditions set forth in this Agreement, Licensor hereby
      appoints Licensee, and Licensee accepts such appointment, as Licensor’s
      exclusive distributor in the Territories with respect to the Products that
      are
      manufactured or caused to be manufactured by Licensor or any third party
      manufacturer. Licensor agrees that it shall only manufacture or cause to be
      manufactured the Products for sale and further distribution by Licensee in
      the
      Territories. Licensee shall have the right to manufacture or engage
      subcontractors to manufacture and/or distribute part or all of the Products,
      provided that such subcontractors comply with all applicable terms under this
      Agreement with respect to activities they may undertake relating to the Products
      in the Territories. Licensee shall be responsible for all warehousing,
      distribution, order processing and fulfillment, billing and collection
      activities with respect to sales of the Products by Licensee in the Territories.
      

     

    (d) Product
      Orders.
      All
      purchase orders submitted by Licensee and accepted by Licensor for the Products
      are and shall be subject to this Agreement and shall be deemed to incorporate
      the terms and conditions of this Agreement, whether or not so specified in
      such
      purchase orders. Licensor’s acceptances of orders shall be evidenced by Licensor
      signing and returning the acknowledgment copy of the order within three (3)
      days
      after receipt of the order, together with a pro-forma invoice for the Products
      covered by that order. All orders shall contain the information necessary for
      Licensor to fulfill the order, which information shall include the
      following:

     

    
      	 	(i)	A reference to this Agreement and Licensee’s purchase
              order number;

      	 	 	 

      	 	(ii)	A description and quantity of each of the Products
              required;

      	 	 	 

      	 	
              (iii)

            	
              The
                address to which Products are to be directed and the address to which
                Licensor’s invoice is to be sent; and

            

      	 	 	 

      	 	(iv)	The requested delivery
              date.

    

     

    (c) Product
      Returns.
      Licensor shall accept any returns of or replace any of the Products under the
      following conditions:

     

    
      	 	(i)	Licensee shall inspect all of the Products as soon
              as it
              is practicable after shipment thereof and shall notify Licensor in
              writing, within thirty (30) days of inspection thereof, if any such
              Products do not conform to the applicable specifications. Licensee
              shall
              give written notice to Licensor of hidden non-conformities, which cannot
              be ascertained upon an initial examination, within twenty (20) days
              from
              the discovery of such hidden non-conformities;
              and

      	 	 	 

      	 	
              (ii)

            	
              Any
                defect in any of the Products to be returned shall have resulted
                from the
                manufacture or packaging of the Products prior to shipment
                thereof.

            

    

     

    Licensor
      shall issue a credit to Licensee for the purchase price paid by Licensee for
      the
      Products found to be defective or replace any Products found to be defective
      with the same quantity of products in good and salable condition, shipping
      such
      replacement Products to Licensee’s designated shipping destination at Licensor’s
      expense; provided that Licensor reserves the right to require Licensee, at
      Licensor’s expense, to return to Licensor all or part of the Products found to
      be defective or sell it for salvage, destroy it, or otherwise dispose of it
      pursuant to Licensor’s instructions.

     

    (d) Product
      Training and Promotional Assistance.
      Licensor shall provide Licensee with all necessary information concerning
      Product function and use and will conduct training sessions as well as provide
      promotional and advertising material to be used in the Territory for use by
      Licensee. Licensor shall keep Licensee informed of marketing and promotional
      efforts regarding the Products undertaken by Licensor, and shall collaborate
      with Licensee in the marketing of the Products within the
      Territory.

     

    
      
         

      

      
        D-2

        
          

        

      

      
         

      

    

    (e) Manufacturing
      Option; Escrow of Manufacturing Specifications and Related
      Information.
      In the
      event that Licensee desires to manufacture the Products or cause the Products
      to
      be manufactured by third parties for distribution within the Territory, Licensor
      shall cooperate with Licensee in doing so. Within thirty (30) days after the
      Effective Date, Licensor shall, deposit with an independent third party escrow
      agent mutually acceptable to Licensor and Licensee, a complete set of the
      specifications, processes, formulas, recipes, parameters, instructions and
      requirements, including all know-how, trade secrets and other information
      necessary to manufacture the Products currently manufactured by Licensor,
      (collectively, the “Deposit Materials”) and will supplement the Deposit
      Materials to include all such information with respect to Products developed
      and
      manufactured by Licensor in the future. The Deposit Materials shall be released
      to Licensee upon Licensee’s request in the event that Licensee decides to
      manufacture the Products or cause the Products to be manufactured by a third
      party. Licensor shall bear all expenses incurred in connection with establishing
      and maintaining such escrow while this Agreement is in effect.

     

    (f) Order
      of Precedence.
      The
      terms and conditions of this Agreement shall take precedence over and govern
      in
      the event of conflict between the terms and conditions of this Agreement the
      terms and conditions of any other documents and forms of the parties, including,
      without limitation, Licensee’s quotation request and purchase order forms,
      Licensor’s quotation form, and any confirmation, acknowledgment or other similar
      document. Any provision or data in any order, any subordinate document such
      as
      shipping releases, or any other document originated by either party, or
      contained in any documents or forms attached to or referenced in any of the
      above documents, which modifies, supplements or conflicts with the terms of
      this
      Agreement shall not be binding unless agreed to in writing by the
      parties.

     

    (g) Purchase
      Prices.
      Licensee shall be charged and agrees to pay the rates set forth on Schedule
      D
      hereto,
      for its purchase of the Products. Such prices shall remain in effect for not
      less than twelve (12) months from the Effective Date. Thereafter, Licensor
      shall
      present any proposed changes to the rates no less than one hundred eighty (180)
      days prior to such rates becoming effective, unless the modification of such
      pricing is commercially mandated based upon a significant increase in the
      Products’ materials, parts and/or manufacturing labor costs, and Licensor
      provides Licensee ninety (90) days prior written notice of such modification,
      and the reasons therefor. Licensee may request, at its election, that Licensor
      provide satisfactory evidence supporting the justifications for any price
      modification. Licensee, or Licensee’s advisors, legal representatives or
      accountants may, at Licensee’s expense, upon 5 days’ notice, during regular
      business hours, audit the books and records of the Licensor with respect to
      information relating to costs, prices and other information relating to the
      Products. If the parties are not able to reach an agreement within such period,
      Licensor shall be able to set such rates as it deems appropriate, with such
      rates taking effect thirty (30) days thereafter, in which event Licensee shall
      have the right to manufacture the Products itself or through others and/or
      terminate this Agreement immediately by providing written notice thereof to
      Licensor. The purchase prices shall be expressed in U.S. Dollars.
      Notwithstanding any of the foregoing, the Parties agree that the rates set
      forth
      on Schedule
      D
      shall
      never exceed the products’ materials, parts and/or manufacturing labor costs
      (excluding any allocation or costs for general and administrative costs or
      expenses) plus twenty-five percent (25%). 

     

    (h) Obligation
      to Update. From
      time
      to time, but in any event on or before each June 30 and December 31 of each
      calendar year and within three months after a Product has been commercialized
      by
      the Licensor, Licensor shall update the schedules of Products and Technology
      to
      incorporate new developments or new intellectual property of the Company which
      in each and every respect will be covered by the License granted to the Licensee
      hereunder. No update of the Schedules attached to this Agreement as a result
      of
      the development of new Technology or Products shall in any event give rise
      to a
      change or modification of the prices of the existing Products or Technology,
      which shall only be modified in accordance with Section 1(g) above.

     

    
      
         

      

      
        D-3

        
          

        

      

      
         

      

    

    (i) Taxes
      and Other Charges.
      In
      addition to the applicable purchase prices, Licensor shall separately invoice
      for, and Licensee shall pay, all sales, use, excise, value added, gross
      receipts, turnover and other taxes and charges imposed by law or required by
      any
      government to be paid or collected by Licensor in connection with the purchase,
      delivery, sale or use of the Products pursuant to this Agreement (other than
      taxes imposed on Licensor’s income). 

     

    (j) Payment
      Terms.
      All
      payments due to Licensor from Licensee under this Agreement shall be paid to
      the
      applicable Licensor by check or wire transfer. Invoices may be rendered by
      the
      Licensor at any time after the date of Delivery, as defined below. Payment
      shall
      be made in U.S. Dollars, no later than ninety (90) days following the date
      of
      Delivery. Each shipment shall constitute an independent transaction and Licensee
      shall pay the invoice for each such transaction strictly in accordance with
      these payment terms.

     

    (k) Delivery.
      Products will be considered delivered by Licensor for purposes of this Agreement
      when delivered to Licensee’s designated location or designated carrier FOB.
      Licensor shall: (a) contract for carriage of the Products to such destination
      and pay the freight, and (b) pay any loading costs to the extent they are not
      included in the freight. Licensee shall pay all other costs incurred in
      connection with shipment of the Products to the ultimate destination and
      unloading. 

     

    (l) Risk
      of Loss and Passage of Title.
      Risk of
      loss and title shall pass to Licensee at the time of delivery of the Products
      to
      Licensee’s designated location or carrier. 

     

    (m) Technical
      Information and Training Regarding the Technology and the Products.
      Within
      twenty (20) business days after the Effective Date of this Agreement, Licensor
      shall disclose to Licensee any and all technical information and know-how then
      within the knowledge or possession of Licensor which was not already disclosed
      to Licensee and which would be helpful to Licensee regarding the Technology
      and
      the manufacture, use or sale of the Products, and the parties shall formulate
      a
      training program and schedule for Licensor to provide training to Licensee’s
      personnel. Training, know-how and information transfer shall take place either
      at Licensee’s offices or telephonically. Licensor shall, throughout the term of
      this Agreement, cause its employees and any third parties who are employed
      or
      engaged to do research, development or other inventive work to disclose to
      Licensor all improvements, refinements and modifications to the Technology,
      Products or new Products developed by them utilizing or embodying the Technology
      and Licensor shall disclose same to Licensee and inform Licensee promptly of
      any
      new developments, all of which shall be covered by the licensed rights granted
      to Licensee hereunder.

     

    (n) Consideration.
      In
      consideration of the rights granted to Licensee hereunder and Licensor’s
      performance of its obligations hereunder, Licensee has paid to Licensor a
      license fee of One Million Dollars (US$1,000,000) on the date of the execution
      and delivery of the Initial License Agreement. 

     

    (o) Royalty
      Payments.
      In
      addition to the License Fee payable pursuant to Section 1(n) hereof, Licensee
      shall pay to Licensor a royalty fee (the “Royalty Fee”) for every “net” Product
      sold in accordance with the following royalty fee payment schedule: a four
      percent (4%) Royalty Fee on all annual net sales up to $5,000,000; three percent
      (3%) Royalty Fee on all net sales from $5,000,001 to $10,000,000; and a two
      percent (2%) Royalty Fee on all net sales in excess of $10,000,0000. For
      purposes of this Agreement, “net” is defined as gross units of the Products
      sold, less returns, charge backs and any units associated with uncollectible
      monies. Licensor, or Licensor’s advisors, legal representatives or accountants
      may, at Licensor’s expenses, upon five (5) days’ notice, during regular business
      hours, audit the books and records of the Licensee with respect to information
      relating to net sales and the calculation of the Royalty Fee
      hereunder.

     

    
      
         

      

      
        D-4

        
          

        

      

      
         

      

    

     

    
      	2.	
              MUTUAL
                OBLIGATIONS

            

    

     

    (a)  Quality
      Control.
      Each
      party agrees that it shall maintain a high standard of quality with respect
      to
      the use of the Trademark and with respect to the Products and packaging for
      the
      Products, as well as in all depictions, marketing and advertising of Products.
      

     

    (b)  Regulatory
      Compliance.
      Licensee acknowledges that certain licenses and label and packaging approvals
      not previously obtained by Licensor may be required to be obtained with respect
      to the Products from appropriate government authorities in the Territory from
      time to time during the term of the Agreement. Licensor will obtain and maintain
      all such licenses and approvals at its own expense and will provide assistance
      to Licensee in obtaining whatever licenses and approvals Licensee may be
      required to obtain in order for Licensee to manufacture the Products or cause
      the Products to be manufactured by third parties. Licensor and Licensee will
      make available to each other information and assistance necessary to complete
      all applications and requests for approval.

     

    (c)  Reporting
      of Negative Events.
      Each
      party has the overriding interest in protecting the reputation of the Products
      and the Trademark. Accordingly, if either party, at any time, has a reasonable
      basis to believe that any act or occurrence related to the Products or the
      Trademark presents or has presented any threat to public health or safety or
      otherwise are likely to draw negative attention from any governmental agency,
      consumer or environmental group, media or other organization or any individual
      (any of such occurrences being an “Event”), such party will immediately notify
      the other party of the facts giving rise to such belief or suspicion. In all
      such cases, the parties will closely coordinate with each other with respect
      to
      any actions they might take or permit and in respect to all public statements
      either party might make regarding the Event, and shall, after consultation
      with
      each other, follow all agreed plans with respect thereto.

     

    (d)  Maintenance
      of Product Complaint Records.
      Each
      party agrees to maintain all records relating to consumer complaints and
      litigation relating to the Products and shall make such records available to
      the
      other party for inspection upon the other party’s reasonable request. Such
      records (other than records relating to consumer complaints) shall be maintained
      for at least two (2) years after the matter to which they pertain is closed
      or
      for the period required by the retaining party’s document retention policy
      therefor, whichever is longer. Records relating to consumer complaints shall
      be
      maintained for at least one (1) year after the complaint is received or for
      the
      period required by the retaining party’s document retention policy therefor,
      whichever is longer. All records provided under this Section shall be considered
      to be confidential information subject to the provisions of Section 13(k)
      of this Agreement.

     

    
      	3.	
              REPRESENTATIONS,
                WARRANTIES AND COVENANTS OF
                LICENSOR

            

    

     

    (a)  Representations
      and Warranties.
      Licensor represents and warrants to Licensee that: (i) it is the sole owner
      of
      all rights, title and interest, including all intellectual property rights
      in
      and to the Technology and the Products except for the portions thereof licensed
      from third parties as specified in Schedule
      E
      attached
      hereto; (ii) its entering into this Agreement does not require any third party
      consent or approval that has not already been obtained; (iii) it has sufficient
      right, power and authority to grant the rights and licenses to Licensee as
      set
      forth in this Agreement, (iv) that neither the Technology nor the Products
      infringe any third party intellectual property or other rights; (v) that the
      Products sold by or through Licensor to Licensee shall be merchantable and
      fit
      for their intended purposes; and (vi) Licensee has no intellectual property
      rights or other license rights to any technology or products, except those
      granted to Licensee hereunder. Licensor has not made and will not make any
      commitments to others inconsistent with or in derogation of Licensee’s rights.

     

    
      
         

      

      
        D-5

        
          

        

      

      
         

      

    

    (b)  Maintenance
      of Exclusivity.
      Licensor represents and warrants to Licensee that it has not, and covenants
      to
      Licensee that during the term of this Agreement, it will not, grant any other
      license with respect to the Technology or for sale, use or manufacturing of
      the
      Products or for use of the Trademark in the Territories. 

     

    (c)  Provision
      of Information,
      Know-How and Training.
      Licensor shall provide to Licensee all pertinent and necessary information
      in
      order for Licensee to apply for and obtain any required safety or other
      regulatory approvals to commercially market and sell the Products, as well
      as
      all know-how and training reasonably required for Licensee to use and market
      the
      Technology and the Products.

     

    (d)  Maintenance
      of Product
      Approvals and Intellectual Property Rights.
      Licensor shall pursue, undertake its best efforts to obtain and maintain all
      required approvals, license, permits and other regulatory registrations for
      the
      Products in the Territories as well as all patent and other intellectual
      property rights in and to the Products and all trademark rights in and to the
      Trademark and all of its registrations therefor, and Licensor will not abandon
      or permit the expiration of any registration, unless so directed by a court
      of
      law. Should Licensor determine that it is no longer desirable in the conduct
      of
      its business, or otherwise determines that it is unable to maintain said rights,
      Licensor shall notify Licensee in writing of such determination prior to
      abandoning same. Licensor agrees to take all reasonably necessary steps,
      including, without limitation, making of all necessary filings in the U.S.
      Patent and Trademark Office and in the trademark office of any country or in
      any
      court to maintain such rights. Licensor agrees to take corresponding steps
      with
      respect to each new application for patent protection of the Technology and/or
      the Products and/or application for registration of the Trademark. Any and
      all
      expenses incurred in connection with such activities shall be borne by
      Licensor.

     

    (e) Marketing
      and Promotional Efforts; References to Licensee or Use of Licensee
      Name.
      Licensor shall coordinate its press, marketing and promotional efforts with
      respect to the Technology and the Products with Licensee and shall provide
      to
      Licensee a copy of all proposed press releases, advertisements and promotional
      materials for approval prior to publication or use. Licensor shall not use
      any
      disapproved materials. Licensor shall not refer to Licensee or use Licensee’s
      name or trademarks in any press release, product endorsement, marketing or
      other
      written materials, public filing or any other publication or statement without
      the prior written approval by Licensee.

     

    
      
        	4.	
                INFRINGEMENT
                  BY THIRD PARTIES
                  AND GRAY MARKET
                  GOODS

              

      

    

     

    (a)  Notification
      of Infringements.
      Should
      Licensor or Licensee become aware of any infringement or alleged infringement
      of
      any patents covering any portion of the Technology or the Products, or any
      other
      infringement or violation of the intellectual property rights (including moral
      rights) or trade secrets relating to the Technology or the Products, that party
      shall immediately notify the other party in writing of the name and address
      of
      alleged infringer, the alleged acts of infringement, and any available evidence
      of infringement.

     

    (b)  Enforcement
      of Rights.
      Licensor shall have primary responsibility for enforcing any patent rights
      or
      other intellectual property rights (including moral rights), or trade secret
      rights relating to the Technology or the Products against any third parties
      and
      shall bring legal action against such third parties to enforce such rights.
      If
      Licensor fails to take action against any such third parties within thirty
      (30)
      days of such notification, Licensee may, at its option, bring legal action
      against such third parties in the name of Licensee and/or Licensor to enforce
      such rights. In the event that such litigation results in a damage award
      favoring the party bringing action to enforce any such rights, such a damage
      award shall be the property of the party that pursued such
      litigation.

     

    
      
         

      

      
        D-6

        
          

        

      

      
         

      

    

    (c)  Gray
      Market Goods.
      Licensor
      agrees to take whatever commercially reasonable actions necessary to eliminate
      and remove all Products sold, offered for sale, manufactured or imported into
      any of the Territories through distribution channels other than those authorized
      or intended by Licensor (the “Gray Market Products”). 

     

    
      	5.	
              INDEMNIFICATION

            

    

     

    (a)  Indemnification
      by Licensee.
      Licensee shall, at its expense, indemnify, defend and hold harmless Licensor,
      its employees, officers and agents (each, a "Licensor Indemnified Party" and
      collectively, the "Licensor Indemnified Parties") from and against any and
      all
      claims and causes of action of any nature made or lawsuits or other proceedings
      filed or otherwise instituted against any of the Licensor Indemnified Parties
      arising from or relating to any breach by Licensee of any of its
      representations, warranties or obligations hereunder. Licensee shall be
      responsible for and shall pay all costs and expenses related to such claims
      and
      lawsuits for which it shall indemnify the Licensor Indemnified Parties,
      including, but not limited to, the payment of all attorneys' fees and costs
      of
      litigation, defense and/or settlement of same.

     

    (b)  Indemnification
      by Licensor.
      Licensor shall, at its expense, indemnify, defend and hold harmless Licensee,
      its employees, officers and agents (each, a “Licensee Indemnified Party” and
      collectively, the “Licensee Indemnified Parties”) from and against any and all
      claims and causes of action of any nature made or lawsuits or other proceedings
      filed or otherwise instituted against any of the Licensee Indemnified Parties
      arising from or relating to any breach by Licensor of any of its
      representations, warranties or obligations hereunder. Licensor shall be
      responsible for and shall pay all costs and expenses related to such claims
      and
      lawsuits for which it shall indemnify the Licensee Indemnified Parties,
      including, but not limited to, the payment of all attorney’s fees and costs of
      litigation, defense and/or settlement of same.

     

    (c)  Indemnification
      Procedures.
      In
      claiming any indemnification hereunder, the indemnified party shall promptly
      provide the indemnifying party with written notice of any claim that the
      indemnified party believes falls within the scope of the foregoing paragraph.
      The indemnified party may, at its own expense, assist in the defense if it
      so
      chooses, provided that the indemnifying party shall control such defense and
      all
      negotiations relative to the settlement of any such claim and further provided
      that any settlement intended to bind the indemnified party shall not be final
      without the indemnified party’s written consent, which shall not be unreasonably
      withheld. 

     

    
      	6.	
              TERM
                AND TERMINATION

            

    

     

    (a)  Term.
      The
      term of this Agreement shall commence on the Effective Date and continue in
      effect perpetually unless sooner terminated as provided below (the “Term”).

     

    (b)  Termination
      by Licensor.
      Licensor shall have the right to terminate this Agreement if Licensee materially
      defaults in performing any of its other obligations under this Agreement or
      if
      Licensee becomes insolvent or if a proceeding is commenced by or against
      Licensee seeking liquidation, rehabilitation, reorganization, conservatorship
      or
      other relief with respect to Licensee or its assets under any bankruptcy,
      insolvency or other similar law, or seeking the appointment of a trustee,
      receiver or other similar official with respect to Licensee and/or a substantial
      portion of its assets, and such material breach is not cured, or such proceeding
      is not dismissed, within sixty (60) days after Licensor has delivered to
      Licensee written notice of its intent to terminate the Agreement and specifying
      the reason for termination. 

     

    
      
         

      

      
        D-7

        
          

        

      

      
         

      

    

    (c)  Termination
      by Licensee.
      Licensee shall have the right to terminate this Agreement if Licensor materially
      defaults in performing any of its obligations hereunder, or if Licensor becomes
      insolvent or if a proceeding is commenced by or against Licensor seeking
      liquidation, rehabilitation, reorganization, conservatorship or other relief
      with respect to Licensor or its assets under any bankruptcy, insolvency or
      other
      similar law, or seeking the appointment of a trustee, receiver or other similar
      official with respect to Licensor and/or a substantial portion of its assets,
      and such material breach is not cured, or such proceeding is not dismissed,
      within sixty (60) days after Licensee has delivered written notice to Licensor
      of its intent to terminate this Agreement. Additionally, Licensee shall have
      the
      right to terminate this Agreement at any time for convenience by providing
      written notice thereof to Licensor not less than thirty (30) days prior to
      the
      effective date of such termination and specifying the reason for
      termination.

     

    (d)  Post-Termination
      Obligations; Phase-out Period.
      Subsequent to the termination of this Agreement for any reason, Licensee may,
      for up to one hundred eighty (180) days after the effective date of such
      termination, continue to sell its inventory of the Products and continue using
      the Technology and the Trademarks in connection therewith.

     

    (e)  Effect
      of Termination;
      Licensee’s Continued Rights in the Event of Licensor Default or Bankruptcy;
      Refund of License Fee.
      Nothing
      herein shall be construed to release either party of any obligation which
      matured prior to the effective date of such termination or which may continue
      beyond such termination. Licensor acknowledges and agrees that this Agreement
      and all rights and licenses granted under or pursuant to this Agreement by
      Licensor to Licensee are, and shall otherwise be deemed to be licenses to rights
      to intellectual property. Licensor agrees that Licensee, as a licensee of such
      rights under this Agreement, shall retain and may fully exercise all of its
      rights and elections under applicable bankruptcy, insolvency or other similar
      law, including specifically but without limitation, Section 362(n) of the U.S.
      Bankruptcy Code, as amended. Licensor further agrees that, in the event of
      a
      Licensor default, or a dissolution or other discontinuance of Licensor’s
      business operations or existence, or the commencement of a voluntary or
      involuntary proceeding against Licensor seeking liquidation, rehabilitation,
      reorganization, conservatorship or other relief with respect to it or its assets
      under any bankruptcy, insolvency or other similar law, Licensee, in addition
      to
      its right to terminate this Agreement, shall also have the right, at its
      election, to retain all of its rights under this Agreement. In such event,
      Licensee shall further have the right to either require Licensor to assign
      to
      Licensee any or all manufacturing, supply, license or other agreements with
      third parties to which Licensor is a party relating to the Technology and/or
      the
      Products (as well as all related product regulatory approvals, permits and
      licenses to the extent legally transferable or to enter into its own agreements
      with such third parties and obtain its own regulatory approvals, permits and
      licenses). Licensee shall also be entitled to release of the Deposit Materials
      from escrow in such event. Additionally, in the event that this Agreement is
      terminated by Licensee other than for convenience at any time within five (5)
      years after the Effective Date, Licensee shall be entitled to a refund of the
      license fee paid by Licensee to Licensor pursuant to this Agreement, pro-rated
      based on the ratio that the time elapsed as of such termination since the
      Effective Date bears to five (5) years.

     

    
      	7.	
              TAXES,
                GOVERNMENTAL APPROVALS AND
                LIABILITY

            

    

     

    (a)  Taxes.
      Licensee shall be solely responsible for the payment and discharge of any taxes,
      duties, or withholdings relating to any transaction of Licensee in connection
      with the manufacture, use, sale, licensing or other commercialization or
      exploitation of the Products. Licensor is solely responsible for any and all
      taxes, fees relating to its ownership of intellectual property rights in and
      to
      the Products, including but not limited to taxes on all amounts paid to Licensor
      hereunder.

     

    
      
         

      

      
        D-8

        
          

        

      

      
         

      

    

    (b)  Government
      Approvals.
      Licensee shall, at its own expense, be responsible for applying for and
      obtaining any approvals, authorizations, or validations relative to the
      manufacture and sale of the Products not previously obtained by Licensor under
      the appropriate Territory laws or otherwise, including authorization for the
      remittances hereunder from the appropriate governmental
      authorities.

     

    
      	8.	
              INDEPENDENCE
                OF THE PARTIES

            

    

     

    This
      Agreement creates no relationship of partnership, joint venture, employment,
      franchise, or agency between the parties. This Agreement shall not constitute
      the designation of either party as the representative or agent of the other,
      nor
      shall either party to this Agreement have the right or authority to make any
      promise, guarantee, warranty, or representation, or to assume, create, or incur
      any liability or other obligation of any kind, express or implied, against
      or in
      the name of, or on behalf of, the other party, without the other party’s prior
      written consent and approval. 

     

    
      	9.	
              SUBLICENSE
                AND ASSIGNMENT

            

    

     

    (a)  Sublicensing.
      Licensor authorizes Licensee to grant sublicenses of the rights granted to
      it
      hereunder to its subdistributors, contractors and other third parties as
      reasonably necessary for Licensee to perform its obligations hereunder, upon
      Licensor’s prior written consent, which consent shall not be unreasonably
      withheld. 

     

    (b) Assignment.
      Any
      assignment of this Agreement by either party to a third party (except by
      Licensee to an affiliated entity or to a person or entity acquiring
      substantially all of Licensee’s assets or a controlling equity ownership
      interest in Licensee, which shall be permitted without the consent or approval
      of Licensor) shall
      be
      null and void unless consented to in advance in writing by the other party
      hereto, which consent shall not be withheld unreasonably.

     

    
      	10.	
              NOTICES

            

    

     

    Any
      notice or communication permitted or required under this Agreement shall be
      in
      writing and shall be delivered in person or by courier, or mailed by certified
      or registered mail, postage prepaid, return receipt requested, and addressed
      as
      set forth for the intended recipient in the first paragraph of this Agreement,
      attention: President, or to such other address as shall be given in accordance
      with this Section. If notice is given in person, by courier or facsimile, it
      shall be effective upon receipt; and if notice is given by mail, it shall be
      effective five (5) business days after deposit in the mail.

     

    
      	11.	
              ARBITRATION;
                LITIGATION; GOVERNING LAW; JURISDICTION AND
                VENUE

            

    

     

    Except
      with respect to any claim by either party against the other party relating
      to
      this Agreement and seeking injunctive relief or specific performance, any
      dispute, controversy or claim arising out of or relating to this Agreement
      or
      the breach, termination or validity thereof, shall be finally settled in
      accordance with the commercial arbitration rules of the American Arbitration
      Association (the “AAA”)
      then
      in effect, by a panel of three (3) arbitrators. Each party shall have the right
      to appoint one (1) arbitrator from the list of arbitrators supplied to the
      parties by the AAA, and the two arbitrators so appointed shall appoint the
      third. The parties may alternately agree to a single arbitrator in lieu of
      a
      panel of three (3) arbitrators. The place of arbitration shall be Miami,
      Florida, U.S.A. and the parties agree to submit to personal jurisdiction
      exclusively in such venue for such arbitration and exclusively in the state
      courts located in such venue for any proceeding brought by either party seeking
      injunctive relief or specific performance. The internal procedural and
      substantive laws of Florida shall govern this Agreement and all questions of
      arbitral procedure, arbitral review, scope of arbitral authority, and arbitral
      enforcement as well as in any other legal proceedings brought by either party
      involving this Agreement. The parties agree that the award of the arbitrators
      shall be the sole and exclusive remedy between them regarding any claims,
      counterclaims, issues or accountings presented or pled to the arbitrators,
      that
      the award shall be made and shall be promptly payable in U.S. dollars without
      deduction or offset, and that any costs, fees or taxes incurred to enforcing
      the
      award shall, to the maximum extent permitted by law, be charged against the
      party resisting such enforcement. The award shall include interest accruing
      from
      the date of damages incurred for breach or other violation of this Agreement,
      and from the date of the award until paid in full, at a rate to be fixed by
      the
      arbitrators. The prevailing party in any proceeding relating to this Agreement
      shall be entitled to payment of its attorney’s fees and costs by the
      nonprevailing party.

     

    
      
         

      

      
        D-9

        
          

        

      

      
         

      

    

     

    
      	12.	
              IDENTIFICATION
                OF TECHNOLOGY AND PRODUCTS

            

    

     

    (a)  Marking.
      Licensee agrees to mark, as appropriate, the following with appropriate
      copyright notices, trademark notices, patent pending notices and/or patent
      numbers in conformity with applicable law: 

     

    	1.  	
            all
              units of the Products made or sold by or for Licensee and/or its
              sublicensees;

          

     

    	2.  	
            all
              packaging of the Products, and

          

     

    	3.  	
            all
              brochures, manuals, and documents describing the
              Products.

          

     

    (b)  License
      Disclosure.
      Unless
      otherwise directed by Licensor, Licensee shall state in a manner acceptable
      to
      Licensor and approved by Licensor, in a prominent position on all materials
      and
      things specified in sub-Section 12(a)
      above,
      that
      the Products are manufactured and/or distributed by Licensee under license
      from
      Licensor.

     

    
      	13.	
              GENERAL
                PROVISIONS

            

    

     

    (a)  Entire
      Agreement.
      The
      parties hereto have read this Agreement and agree to be bound by all its terms.
      The parties further agree that this Agreement constitutes the full, complete
      and
      exclusive statement of the Agreement between them and supersedes all proposals,
      oral or written, and all other communications between them relating to the
      subject matter of this Agreement.

     

    (b)  Modifications.
      No
      agreement changing, modifying, amending, extending, superseding, discharging,
      or
      terminating this Agreement or any provisions hereof shall be valid unless it
      is
      in writing and is dated and signed by duly authorized representatives of each
      party.

     

    (c)  Severability.
      Should
      any term or provision of this Agreement be finally determined by an arbitration
      panel to be void, invalid, unenforceable or contrary to law or equity, the
      offending term or provision shall be modified and limited (or if strictly
      necessary, deleted) only to the extent required to conform to the requirements
      of law and the remainder of this Agreement (or, as the case may be, the
      application of such provisions to other circumstances) shall not be affected
      thereby but rather shall be enforced to the greatest extent permitted by
      law.

     

    (d)  Waiver.
      Failure
      of any of the parties hereto to enforce any of the provisions of this Agreement
      or any rights with respect thereto or to exercise any election provided for
      therein, shall in no way be considered a waiver of such provisions, rights,
      or
      election or in any way to affect the validity of this Agreement. No term or
      provision hereof shall be deemed waived and no breach excused, unless such
      waiver or consent shall be in writing and signed by the party claimed to have
      waived or consented. Any consent by any party to, or waiver of, a breach by
      the
      other, whether express or implied, shall not constitute a consent or waiver
      of,
      or excuse for any other, different or subsequent breach. All remedies herein
      conferred upon any party shall be cumulative and no one shall be exclusive
      of
      any other remedy conferred herein by law or equity.

     

    
      
         

      

      
        D-10

        
          

        

      

      
         

      

    

    (e)  Time
      is of the Essence.
      Time is
      of the essence in the performance of each and every obligation and covenant
      imposed by this Agreement.

     

    (f)  Binding
      Agreement.
      This
      Agreement shall be binding not only upon the parties hereto, but also upon
      and
      without limitations thereto, their assignees, successors, divisions,
      subsidiaries, officers, directors, employees, and sublicensees.

     

    (g)  Force
      Majeure.
      Neither
      Licensor nor Licensee shall be responsible for any failure to fulfill its
      obligations due to causes beyond its reasonable control, including without
      limitation, acts or omissions of government or military authority, acts of
      God,
      acts of terrorism, materials shortages, transportation delays, fires, floods,
      labor disturbances, riots, wars, or inability to obtain any export or import
      license or other approval of authorization of any government
      authority.

     

    (h)  Expenses.
      Except
      as provided elsewhere in this Agreement, all of the legal, accounting, and
      other
      miscellaneous expenses incurred in connection with this Agreement and the
      performance of the various provisions of this Agreement shall be paid by the
      party who incurred the expense.

     

    (i)  Survival.
      All
      covenants, agreements, representations, warranties and provisions of this
      Agreement which by their nature survive the termination of this Agreement shall
      so survive after the effective date of termination of this
      Agreement.

     

    (j)  Disclaimer
      of Warranties; Limitation of Liability.
      EXCEPT
      FOR THE WARRANTIES EXPRESSLY PROVIDED HEREIN, NEITHER PARTY HERETO MAKES ANY
      WARRANTIES AND DISCLAIMS ANY IMPLIED WARRANTIES OF ANY KIND, INCLUDING, BUT
      NOT
      LIMITED TO, ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
      PURPOSE OR AGAINST INFRINGEMENT WITH REGARD TO THE PRODUCTS OR THE PERFORMANCE
      OF ITS OBLIGATIONS HEREUNDER. NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY
      WITH RESPECT TO ANY PUNITIVE, SPECIAL, CONSEQUENTIAL, INCIDENTAL OR INDIRECT
      DAMAGES, INCLUDING WITHOUT LIMITATION, LOST PROFITS ARISING OUT OF THE
      PERFORMANCE OF NONPERFORMANCE OF THIS AGREEMENT, EVEN IF THE PARTY HAS BEEN
      ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 

     

    (k)  Confidentiality.
      The
      terms of this Agreement as well as any information disclosed by either party
      to
      the other pursuant to this Agreement, except as set forth below, shall be
      considered confidential to the disclosing party and shall not be disclosed
      or
      used by the receiving party other than as expressly authorized herein without
      the prior written consent of the disclosing party, which consent may be withheld
      by the disclosing party in its sole and absolute discretion. The foregoing
      obligation of confidentiality shall not apply to information which (a) was
      publicly available at the time of the disclosure to the receiving party;
      (b) subsequently becomes publicly available through no fault of the
      receiving party; (c) is rightfully acquired by the receiving party, subsequent
      to disclosure by the other party from a third party who is not in breach of
      a
      confidential relationship with regard to such information; (d) is independently
      developed by the receiving party solely through the efforts of individuals
      who
      did not have access to the confidential information, as evidenced by the
      receiving party’s written records; or (e) is required to be made public by court
      order, law or regulation, provided that the disclosing party is notified as
      soon
      as practicable prior to such compelled disclosure in order to contest
      same.

     

    
      
         

      

      
        D-11

        
          

        

      

      
         

      

    

    (l)  Construction;
      Counterparts.
      The
      headings used in this Agreement are for reference purposes only and shall not
      be
      considered a part of this Agreement. This Agreement may be executed in
      counterparts, each of which shall be deemed to be an original and all of which
      shall constitute one and the same agreement.

     

    

     

    [THE
      REMAINDER OF THIS PAGE IS LEFT BLANK INTENTIONALLY.

     

    SIGNATURE
      PAGE FOLLOWS.]

     

    
      
         

      

      
        D-12

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF,
      the
      parties hereto, by and through their respective undersigned duly authorized
      representatives, have caused this Agreement to be executed as of the Effective
      Date.

    
      	 	 	 
	 	LICENSOR:
	 	 
	 	Electric Aquagenics Unlimited, Inc.,
              a Delaware
              corporation
	 
 	 
 	 
 
	 	By:  	/s/ Gaylord
              M. Karren
	 	
              
Name:
              Gaylord M. Karren
	 	Title:  
              Chief Executive Officer 

    

    
      
        	 	 	 
	 	 
	 	LICENSEE:
	 	 
	 	Water Science, LLC
	 
 	 
 	 
 
	 	By:  	/s/ Peter
                Ullrich
	 	
                
Name:
                Peter Ullrich
	 	Title:  
                Sole Member 

      

       

    

     

    
      
         

      

      
        D-13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}]]