NOTE 4. SPONSORED RESEARCH AGREEMENT
University of California, Santa Barbara
On December 9, 2010, the Company entered into the sponsored
Research Agreement with the University of California, Santa Barbara
(“UCSB”) providing for the continuing development of
the UCSB Nanoparticles. The research agreement was effective for
the period January 1, 2011 through December 31, 2014. The terms of
the agreement were on a “cost reimbursement” basis. The
agreement could be terminated by either party, without cause, with
a 60-day written notice. Pursuant to SEC Rule 24b-2, certain
portions of this agreement have been granted confidential treatment
and therefore have not been disclosed.
On October 24, 2011, the Company provided a 60-day written
termination notice to UCSB as management believes it can further
the research and development of the technology on a more cost
effective manner than UCSB.
Applied Power Concepts, Inc.
On July 7, 2011, the Company entered into a services agreement (the
“Services Agreement”) with Applied Power Concepts, Inc.
(“APC”) and additional ancillary agreements pursuant to
which APC assists the Company in the development of the patent
pending BluFlow™ Treatment System, which incorporates the
BluFlow™ Nanoparticles and BluFlow™ AUT, as well as
research and development to determine additional applications for
the BluFlow™ Nanoparticles. Pursuant to the terms of the
Services Agreement any technologies developed by APC for the
Company, including any patents arising therefrom, belong to the
Company. Pursuant to SEC Rule 24b-2, certain portions of this
agreement have been granted confidential treatment and therefore
have not been disclosed.
Payment under the Services Agreement is based upon time and
materials and includes a bonus of stock options to purchase the
Company’s common stock with vesting based on performance
milestones. The Services Agreement can be terminated at any time by