UTEK CORP
LICENSE AGREEMENT
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>3
<FILENAME>g82946exv10w1.htm
<DESCRIPTION>LICENSE AGREEMENT
<TEXT>
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<TITLE>UTEK Form 10-Q</TITLE>
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<P align="right"><FONT size="2">EXHIBIT 10.1</FONT>
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<P align="center"><FONT size="2">LICENSE AGREEMENT</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement is effective as of the latest date of signing below and is
by and between Brookhaven Science Associates LLC, (&#147;Licensor&#148;), operator of
Brookhaven National Laboratory, Upton, New York 11973, under contract with the
U.S. Department of Energy, and UTEK Corporation, (&#147;Licensee&#148;) having a
principal place of business at 202 South Wheeler Street, Plant City, Florida.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Licensor represents that it is the owner by assignment of all rights,
title and interest in the patent properties covering Mini-Lidar Stand-Off
Sensor Device.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Licensor represents that it has the right to grant licenses under said
patent properties, subject to a non-exclusive, non-transferable, irrevocable,
paid-up license heretofore granted to the U.S. Government to practice or have
practiced the invention(s) covered by said patent properties for or on behalf
of the United States Government.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Licensor desires to have said patent properties utilized in the public
interest and is willing to grant a license thereunder on the terms and
conditions set forth herein.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Licensee desires to secure an exclusive license under said patent
properties on the terms and conditions set forth herein.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Licensee intends to assign, in writing, all rights granted to it under
this License Agreement to Circle Group Holdings, Inc., immediately upon
execution of this Agreement.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accordingly, in consideration of the premises and the mutual covenants of
this Agreement, the parties hereto agree as follows:
</FONT>
<P align="left"><FONT size="2">I &#151; DEFINITIONS</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term &#147;Patent Rights&#148; shall mean:
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Patent Application serial No.&nbsp;09/659,202 filed in the names of
Mark Ray, et al., entitled &#147;Mini-Lidar Sensor for the Remote Stand-Off Sensing
of Chemical/Biological Substances and Method of Sensing Same&#148;, and any
continuations, continuations-in-part, or divisionals of said
application, and any patents or reissue of patents that issue thereon.
</FONT>
<P align="center"><FONT size="2">Page 1 of 12</FONT>
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<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term &#147;Valid Claim&#148; means and includes a claim contained in the
Patent Rights which has not expired, which has not been held invalid or
unenforceable by final decision of a court or other governmental agency of
competent jurisdiction, unappealable or unappealed within the time allowed for
appeal, and which has not been admitted to be invalid or unenforceable through
reissue, disclaimer or otherwise.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term &#147;Licensed Products&#148; shall mean any products covered by a
Valid Claim in the Patent Rights, and any product the manufacture, use or sale
of which is covered by a Valid Claim in the Patent Rights.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term &#147;Net Sales Proceeds&#148; shall mean the actual price at which
each Licensed Product is sold by Licensee, f.o.b. Licensee&#146;s place of business,
less the following sums actually paid or credited by Licensee:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="6%"></TD>
        <TD width="94%"></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;sales or other excise taxes directly imposed with reference to
particular sales;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;outbound transportation charges prepaid or allowed;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;insurance coverage for such outbound transportation;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;amounts allowed or credited on returns;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;amounts allowed as customary trade discounts.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">II &#151; GRANT</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the rights of the U.S. Government, defined in Public Law 98-620
and the related implementing regulations at 37 CFR Part 401, Licensor hereby
grants to Licensee an exclusive license under the Patent Rights to make, have
made, use, and/or sell Licensed Products.
</FONT>
<P align="left"><FONT size="2">III &#150; LICENSE CONSIDERATION</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As partial consideration for the granting of this license, Licensee agrees
to issue to Licensor unregistered shares of Circle Group Holdings, Inc., 1011
Campus Dr., Mundelein, IL, (OTCBB symbol CRGQ) stock with a total valuation of
seventy five thousand U.S. Dollars (U.S. $75,000.00). The actual number of
shares to be issued to Licensor will be based on the closing price of CRGQ
stock on the day
prior to the effective date of this Agreement. Said shares shall be delivered
by Licensee to Licensor within thirty (30)&nbsp;days of the effective date of this
Agreement.
</FONT>
<P align="center"><FONT size="2">Page 2 of 12</FONT>
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<P align="left"><FONT size="2">IV &#151; REIMBURSEMENT OF LICENSOR&#146;S PATENT COSTS</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As partial consideration for the granting of this license,
Licensee will pay to Licensor
seventy five hundred U.S. dollars (U.S. $7,500.00) as reimbursement for
Licensor&#146;s existing patent costs for said Patent Rights. This payment will be
made by Licensee to Licensor within thirty (30)&nbsp;days of the effective date of
this Agreement.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Licensee will reimburse Licensor for all costs incurred after 3/26/03
in connection with the filing, prosecution, and maintenance of all patents and
patent applications included in the Patent Rights. Licensor will submit
periodic invoices to Licensee covering such expenses and Licensee will
reimburse Licensor for these expenses within thirty (30)&nbsp;days of receipt of an
invoice.
</FONT>
<P align="left"><FONT size="2">V &#151; REPORTS AND ROYALTIES</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commencing in the calendar year 2004, Licensee agrees to make written
reports to Licensor biannually, within sixty (60)&nbsp;days after the first day of
each January and July during the life of this Agreement, and, as of such dates,
stating in each such report the total Net Sales Proceeds during the preceding
six calendar months. The first such report shall include all Net Sales
Proceeds from the effective date of this Agreement to the date of said report.
Such bi-annual reports shall provide the particulars of the business conducted
by Licensee during the preceding six (6)&nbsp;month period under this license
Agreement as are pertinent to a royalty accounting. These shall include at
least the following:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">1.</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="90%"><FONT size="2">all Licensed Products manufactured, used, sold or otherwise
disposed of;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">2.</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="90%"><FONT size="2">total billings for Licensed Products sold, used or otherwise
disposed of;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">3.</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="90%"><FONT size="2">deductions applicable, if any; and</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">4.</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="90%"><FONT size="2">total royalties due.</FONT></TD>
</TR>
</TABLE>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Concurrently with the making of each such report required by
paragraph (a)&nbsp;of this Article
V, Licensee will pay to Licensor royalties at the rate of 3% percent of Net
Sales Proceeds.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning in the calendar year 2004 Licensee agrees to pay
annual minimum royalties
(&#147;Minimum Royalties&#148;) as follows:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="92%"><FONT size="2">Calendar year 2004: ten thousand United States Dollars (U.S.
$10,000).</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">Page 3 of 12</FONT>
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<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="92%"><FONT size="2">Calendar year 2005 and for each year thereafter
until the termination or expiration of
this Agreement: fifteen thousand United States Dollars (U.S. $15,000).</FONT></TD>
</TR>
</TABLE>
<P><FONT size="2">In the event that the Running Royalties paid under paragraph (b)&nbsp;of this
Article (V)&nbsp;with respect to a calendar year exceed the applicable Minimum
Royalty for that year, it is understood that no separate Minimum Royalty is to
be paid for that year. In the event that the actual Running Royalties paid
with respect to a calendar year are less than the applicable Minimum Royalty
for that year, Licensee shall be obligated to pay within sixty (60)&nbsp;days after
the end of each such year the difference between the actual royalties it paid
with respect to said year and the Minimum Royalty for that year to satisfy this
Minimum Royalty payment provision.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Licensee agrees to make a written report to Licensor within sixty (60)
days after the date of any termination of this Agreement, which shall identify
all Net Sales Proceeds and sublicensing share realized prior to termination of
this Agreement. Concurrently with the making of this report, Licensee will pay
to Licensor all royalties due on the basis of this report at the rates defined
in paragraphs (b)&nbsp;and (c)&nbsp;of this Article and all sublicensing income due.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All monies payable hereunder shall be paid in United States Dollars.
</FONT>
<P align="left"><FONT size="2">VI &#151; SUBLICENSES</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The grant under Article&nbsp;II above includes the right to grant
sublicenses. Any sublicense granted by Licensee shall be subject to the terms
and conditions of this Agreement, including the insurance requirement in
Article&nbsp;VIII hereof, and shall contain an express provision to that effect. No
sublicense shall relieve Licensee of any of its obligations under this
Agreement. Licensee agrees to forward to Licensor a fully executed copy of
each sublicense agreement it enters into within thirty (30)&nbsp;days after
execution thereof.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Licensee agrees to include in its reports required in Article&nbsp;V above
an accounting of all consideration received by Licensee from its sublicensees.
Licensee agrees to pay Licensor, in addition to
all of the amounts provided for in Article&nbsp;V above, fifty percent (50%) of
all consideration of any nature, including, for example, license fees, earned
royalties, and minimum royalties, received by Licensee from its sublicensees.
</FONT>

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<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon the termination of this Agreement for any cause, any and all
existing sublicenses hereunder shall thereupon automatically terminate. This
shall be made a condition of any sublicense that may be granted by Licensee.
</FONT>
<P align="left"><FONT size="2">VII &#151; AUDITING</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Licensee agrees to keep for a period of three years the records used
to prepare the reports required by Article&nbsp;V hereof. Such records shall be in
sufficient detail to enable the royalties and licensing fees payable hereunder
by Licensee to be clearly and fully determined. Licensee further agrees to
permit such records to be examined from time to time to the extent necessary to
verify the reports provided for in Article&nbsp;VI hereof, such examination to be
made at the expense of Licensor by an auditor appointed by Licensor, or at the
option and expense of Licensee, by an independent Certified Public Accountant
who shall be appointed by Licensee and who shall be acceptable to Licensor.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Licensor agrees to use its best efforts to maintain in confidence the
information reported to it in Licensee&#146;s biannual sales reports and any
confidential information it obtains through its audit rights. Licensor will
use its best efforts to neither disclose this information outside of its
organization nor use this information for any purpose other than collection of
royalties from Licensee under this Agreement.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Licensee agrees that the confidentiality and use provisions of this
Article shall not apply to the following:
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any information which appears in printed publications or which
otherwise is or becomes generally known in the trade other than through the
fault of Licensor;
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any information which Licensor can show by written records was in its
possession prior to the disclosure hereunder; or
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any information which comes into the possession of Licensor without
covenants of secrecy from another party who is under no obligation to Licensee
to maintain the confidentiality of the
information.
</FONT>
<P align="left"><FONT size="2">VIII &#151; DISCLAIMER, INDEMNIFICATION, HOLD HARMLESS AND INSURANCE</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Licensor makes no representation or warranty, either expressed or
implied, and no
</FONT>
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<P><FONT size="2">representation or warranty shall be implied, with respect to
the License herein granted other than that Licensor has the right to grant said
license.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nothing in this Agreement shall be construed as:
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a warranty or representation by Licensor as to the validity or
scope of any Patent Rights;
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a warranty or representation that any product made, used, sold
or otherwise disposed of or any method practiced under any license
granted under this Agreement is or will be free from infringement or
claims of infringement of patents, copyrights or any other property right
of third parties; or
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;granting by implication, estoppel or otherwise any licenses or
rights under patents or other property rights of Licensor other than said
Patent Rights, regardless of whether such patents are dominant or
subordinate to any Patent Rights.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Licensor shall not be liable for any injury, losses or damages,
including special or consequential damages or losses incurred by Licensee, nor
for claims for such damages, losses or other injuries asserted or levied
against Licensee, arising out of Licensee&#146;s practice of the Grant set forth in
Article&nbsp;II of this Agreement. Licensee shall indemnify and hold harmless
Licensor and the U.S. government from any claims, actions, judgements or awards
arising out of Licensee&#146;s practice of the Grant set forth in Article&nbsp;II, or out
of Licensee&#146;s manufacture, use, sale or disposition of Licensed Products.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Licensee shall, at the time of signing of this Agreement, deliver to
Licensor: a certificate of liability insurance showing Licensor as a named
insured and evidencing that Licensee maintains insurance, in an amount of at
least one million dollars ($1,000,000.00), for all liabilities, obligations or
claims arising out of the manufacture, use, sale or disposition of Licensed
Products and the indemnification, hold harmless and other obligations
undertaken by Licensee under this Agreement.&nbsp;Licensee agrees that it will provide such certification of insurance at no
expense to Licensor. Licensee further agrees to periodically provide evidence
of its continuing to maintain substantively and fiscally equivalent liability
insurance for the term of this Agreement and for twenty (20)&nbsp;years thereafter.
The specified minimum amount of insurance coverage shall not be construed to
create a limitation on the obligation of Licensee.
</FONT>
<P align="center"><FONT size="2">Page 6 of 12</FONT>
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<P align="left"><FONT size="2">IX &#151; INFRINGEMENT OF LICENSOR&#146;S PATENT RIGHTS BY THIRD PARTIES</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Should Licensor or Licensee become aware of any infringement or
alleged infringement in the United States, its territories and possessions, of
any of the Patent Rights, that party shall promptly notify the other party in
writing of the name and address of the alleged infringer and of the alleged
acts of infringement, and provide any available evidence of the alleged acts of
infringement.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither Licensor nor Licensee shall be obligated to institute suit
against any alleged infringer of any of the Patent Rights.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Licensee shall have the right to bring legal action against an alleged
infringer of any of the Patent Rights in its own name or in the joint name of
the Licensee and Licensor. In the event that Licensee elects to initiate an
infringement action in its own name, or in the joint name of Licensee and
Licensor, any and all expenses, judgments or sanctions incurred in connection
with such legal action shall be borne solely by Licensee, who shall retain for
itself, any and all monies or other benefits derived from such legal action,
except for monies due to Licensor under this License Agreement.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Licensor and Licensee hereby agree to cooperate with each other in the
prosecution of any legal infringement action or settlement discussions and each
agrees to provide the other with all pertinent data and evidence which may be
helpful in the prosecution of such action of which it may have knowledge or
which may be readily available to it without incurring substantial expense.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Should Licensee commence a suit under the provisions of this Article
and thereafter elect to abandon this suit, it shall give timely notice to the
Licensor who may, if it so desires, continue prosecution of such suit, provided
however that the sharing of expenses and any recovery in such continued suit
shall be as agreed upon between Licensor and Licensee.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If, at any time during this Agreement, Licensor or Licensee shall be
unable to uphold the validity of any of the Patent Rights against any alleged
infringer, Licensee shall not have or assert any damage claim or a claim for
refund or reimbursement against Licensor.
</FONT>
<P align="left"><FONT size="2">X &#151; SUCCESSOR RIGHTS</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The obligations of Licensee hereunder, including the obligations to
make reports and pay
</FONT>
<P align="center"><FONT size="2">Page 7 of 12</FONT>
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<P><FONT size="2">royalties, shall run in favor of the successors, assigns
or other legal representatives of Licensor.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Licensee&#146;s rights under this Agreement and the license herein granted
shall not be assigned for the benefit of creditors of Licensee or otherwise,
nor shall such rights or license pass to any receiver of Licensee&#146;s assets,
except for a person or corporation succeeding to the entire business and good
will of Licensee in the manufacture and sale of Licensed Products as the result
of a sale, consolidation, reorganization or otherwise, provided such person or
corporation shall, without delay, accept in writing the provisions of this
Agreement and agree to become in all respects bound thereby in the place and
stead of Licensee. Licensee&#146;s rights under this Agreement and the license
herein granted shall not be otherwise transferred without the written consent
of Licensor.
</FONT>
<P align="left"><FONT size="2">XI &#151; UNITED STATES GOVERNMENT EXPORT CONTROL REGULATIONS</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Export Control Regulations of the U.S. Department of Commerce
prohibit, except under a special validated license, the exportation from the
United States of technical data relating to certain commodities listed in the
Regulations, unless the exporter has received certain written assurance from
the foreign importer. In order to facilitate the exchange of technical
information under this Agreement, Licensee therefor hereby gives its assurance
to Licensor that it will comply with all of the requirements of the U.S. Export
Control Regulations.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Violation of the U.S. Export Control laws or regulations by Licensee
shall constitute grounds for Licensor, in its sole discretion, to terminate
this license agreement. Failure to obtain any needed export control license
may result in criminal liability under the United States law.
</FONT>
<P align="left"><FONT size="2">XII &#151; TERM AND TERMINATION</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless previously terminated in accordance with the following
provisions of this Article
XII, this Agreement shall become effective as of the date set forth at the
outset of this Agreement and shall run to the end of the term of the last to
expire patent in the Patent Rights licensed hereunder, and shall thereupon
expire.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If Licensee shall at any time default in the payment of any license
fee or royalty or in the making of any report hereunder, or shall commit any
breach of any covenant herein contained, and shall fail
</FONT>
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<P><FONT size="2">to remedy any such
default or breach within thirty (30)&nbsp;days after written notice thereof by
Licensor, then Licensor may, at its option, terminate the license and all other
rights herein granted, by giving notice to Licensee in writing to such effect.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After two years from the effective date of this Agreement, Licensee
shall have the right to terminate the prospective effect of the license
hereunder at any time by written notice given to the Licensor at least six (6)
months prior to the date when such termination is to become effective.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any termination or expiration of this Agreement shall not relieve
Licensee from its obligations under Article&nbsp;V hereof to make a terminal report
and maintain records, or from its liability for payment of royalties on
Licensed Products sold or otherwise disposed of hereunder prior to the date of
such termination or expiration, or for payment of annual minimum royalties due,
and shall not prejudice the right of Licensor to recover any royalty or other
sums or consideration due or accrued at the time of such termination or
expiration and shall not prejudice any cause of action or claim of Licensor
accrued on account of any breach or default by Licensee.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any termination or expiration of this Agreement shall not prejudice
the right of Licensor to conduct a final audit of the records of Licensee in
accordance with the provisions of Article&nbsp;VII hereof.
</FONT>
<P align="left"><FONT size="2">XIII &#151; ADVERTISING</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither the granting of the license herein granted by Licensor nor the
acceptance of the license fee or royalties hereunder by Licensor shall
constitute Licensor&#146;s approval of, or acquiescence in, advertising or other
business practices of Licensee or Licensee&#146;s sublicensees, nor an approval of
or acquiescence in any use of the corporate name of Licensor, or any use of the
name Brookhaven National Laboratory, or any use of the name(s) of the inventors
of the Patent Rights licensed, or of the names of any agencies of the
U.S. Government, in connection with the manufacture, advertising, use,
sale or sublicensing of Licensed Products, and Licensor hereby expressly
reserves all rights of actions with respect thereto.
</FONT>
<P align="left"><FONT size="2">XIV &#151; NOTICES</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any notice pursuant to this Agreement shall be sufficiently made or
given on the date of
</FONT>
<P align="center"><FONT size="2">Page 9 of 12</FONT>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<P><FONT size="2">mailing if sent to a party by certified mail, postage
prepaid, addressed to it at its address below:
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For Licensor:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="15%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="85%"><FONT size="2">Margaret C. Bogosian<BR>
Manager<BR>
Office of Industrial Partnerships and Intellectual Property<BR>
Brookhaven National Laboratory<BR>
Building No.&nbsp;475D<BR>
P.O. Box 5000<BR>
Upton, New York 11973-5000<BR>
Tel 631-344-7338<BR>
Fax 631-344-3729</FONT></TD>
</TR>
</TABLE>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For Licensee:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="15%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="85%"><FONT size="2">Sam Reiber<BR>
UTEK Corporation<BR>
202 South Wheeler Street<BR>
Plant City, Florida 33563<BR>
Tel 813-754-4330<BR>
Fax 813-754-2383<BR>
<BR>
&nbsp;</FONT></TD>
</TR>
</TABLE>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="15%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="85%"><FONT size="2">Cc:<BR>
<BR>
&nbsp;</FONT></TD>
</TR>
</TABLE>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="15%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="85%"><FONT size="2">Greg Halpern<BR>
Circle Group Holdings, Inc.<BR>
1011 Campus Drive<BR>
Mundelein, Illinois 60060<BR>
Tel: 847-549-6002</FONT></TD>
</TR>
</TABLE>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alternatively, such notices may be delivered to such other address or
addresses as either Licensor or Licensee, respectively, may later establish by
written notice to the other.
</FONT>
<P align="center"><FONT size="2">Page 10 of 12</FONT>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any payments due from Licensee to Licensor hereunder shall be made as
follows:
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="75%">
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><FONT size="2">CHECK PAYABLE TO:</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
Brookhaven Science Associates, LLC
</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">CHECK MAILED TO:</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
Margaret C. Bogosian<BR>
Manager<BR>
Office of Industrial Partnerships and Intellectual Property<BR>
Brookhaven National Laboratory<BR>
Bldg. 475D, P.O. Box 5000<BR>
Upton, NY 11973-5000<BR></FONT></TD>
</TR>




</TABLE>
</CENTER>
<P align="left"><FONT size="2">XV &#151; APPLICABLE LAW</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall be construed, interpreted and applied in accordance
with the laws of the United States and of the State of New York.
</FONT>

<P align="left"><FONT size="2">XVI &#150; LICENSEE&#146;S DILIGENCE
</FONT>

<P><FONT size="2">Licensee agrees to use commercially reasonable efforts to promote the
development and marketing of Licensed Products.
</FONT>
<P align="left"><FONT size="2">XVII &#151; PREFERENCE FOR UNITED STATES INDUSTRY</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consistent with the provisions of 35 USC 204, Licensee agrees that any
products embodying technology covered by the Patent Rights or produced through
the use of technology covered by the Patent Rights that are sold in the United
States, will be substantially manufactured in the United States.
</FONT>
<P align="left"><FONT size="2">XVIII &#151; ENTIRE UNDERSTANDING</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement constitutes the entire understanding between the parties
hereto with respect to the subject matter hereof, and any modification of this
Agreement shall be in writing and shall be signed by a duly authorized
representative of each party. There are no understandings, representations or
warranties with respect to the subject matter hereof, except as herein
expressly set forth, and no rights are granted hereunder except as expressly
set forth herein.
</FONT>
<P align="center"><FONT size="2">Page 11 of 12</FONT>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The parties hereto have duly executed this Agreement.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">LICENSOR:</FONT>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BROOKHAVEN SCIENCE ASSOCIATES, LLC</FONT></TD>
</TR>
</TABLE>
<P><FONT size="2">By: <U>/s/ Margaret Bogosian</U>
</FONT>
<P><FONT size="2">Name: Margaret Bogosian
</FONT>
<P><FONT size="2">Title: Patent Council
</FONT>
<P><FONT size="2">Date: March&nbsp;26, 2003
</FONT>
<P><FONT size="2">LICENSEE:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;UTEK Corporation</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">By: <U>/s/ Sam Reiber</U></FONT>

<P align="left"><FONT size="2">Name: Sam Reiber</FONT>

<P align="left"><FONT size="2">Title: Vice President</FONT>

<P align="left"><FONT size="2">Date: March&nbsp;26, 2003</FONT>


<P align="center"><FONT size="2">Page 12 of 12</FONT>



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