Common use of PROGRESS AND ROYALTY REPORTS Clause in Contracts

PROGRESS AND ROYALTY REPORTS. 6.1 Until the first commercial sale of a Licensed Product, LICENSEE will submit to THE REGENTS a semi-annual progress report covering LICENSEE activities in meeting the performance obligations set forth in Article 5 and Exhibit B of this Agreement. The report will include at a minimum the following information: License Number Name of Licensee Date of Report Reporting period Description of Licensed Products or Licensed Methods Status of Commercialization Milestones The report will be due to THE REGENTS on August 31 of each calendar year for the period January through June of that year and on February 28 of each calendar year for the period July through December of the preceding calendar year. The first report will be due August 31, 1997 for commercialization activities during the period January 1, 1997 through June 30, 1997. 6.2 LICENSEE will report to THE REGENTS the first commercial sale of each type of Licensed Product, and the first commercial use of Licensed Methods, in the U.S. and in each country outside the U.S. Such report will include at a minimum, the following information. License Number Name of Licensee Date of Report Date of First Commercial Sale/Lease/Use Place of First Commercial Sale/Lease/Use Description of Licensed Product(s)/Method(s) sold/leased/used 6.3 After the first commercial sale of a Licensed Product anywhere in the world, LICENSEE will submit semi-annual written royalty reports to THE REGENTS on August 31 of each calendar year for the period January through June of that year and on February 28 of each calendar year for the period July through December of the preceding calendar year. The royalty report will include at a minimum the following information: License Number Name of Licensee Date of Report Reporting period Company's fiscal year Earned royalties or minimum royalties Domestic sales: Description of Licensed Product(s)/Method(s) Unit price of Licensed Product(s)/Method(s) (sale, lease, and/or use) Units of Licensed Product(s)/Method(s) sold in US Units of Licensed Product(s)/Method(s) leased in US Gross sales in US Net Sales in US Royalties due THE REGENTS in $US Foreign sales: Country of sales Description of Licensed Product(s)/Method(s) Unit price of Licensed Product(s)/Method(s) (sale, lease, and/or use) Units of Licensed Product(s)/Method(s) sold in each country Units of Licensed Product(s)/Method(s) leased in each country Gross sales in each country Net Sales in each country Monetary exchange rate Royalties due THE REGENTS in $US US Government Sales: Description of Licensed Product(s)/Method(s) Unit price of Licensed Product(s)/Method(s) (sale, lease, and/or use) Units of Licensed Product(s)/Method(s) sold Units of Licensed Product(s)/Method(s) leased Gross sales Net Sales LICENSEE will also report the name and business address of each purchaser of a capacitive deionization unit. 6.4 If LICENSEE has not sold any Licensed Products or used Licensed Methods during any reporting period, LICENSEE will so state in the royalty report filed for such period. 6.5 LICENSEE will provide THE REGENTS with an annual statement of royalty accounts, either audited or certified by LICENSEE's Chief Financial Officer, for each calendar year during the term of this Agreement. All such statements will be due to THE REGENTS on February 28 of the calendar year after the year to which such statement relates. 6.6 LICENSEE will file all reports in accordance with the provisions of Article 19 (NOTICES).

PROGRESS AND ROYALTY REPORTS. 6.1 Until A. Beginning at six (6) months after the Effective Date of this Agreement, and semiannually thereafter, the Licensee will submit to The Regents a progress report as described in Paragraph 7.B covering activities by the Licensee and its Sublicensees related to the commercialization of Licensed Products ("Progress Report") during the previous calendar year. This reporting requirement will remain in force until the commencement of Sale of each Licensed Product. If the Licensee fails to submit a timely Progress Report to The Regents, The Regents will be entitled to terminate this Agreement in accordance with Article 10. If either party terminates this Agreement before any Licensed Products are Sold or before this Agreement's expiration, a final Progress Report covering the period prior to termination must be submitted within thirty (30) days of termination. UC2009-334 1/27/2010 Final B. The Progress Reports will summarize the Licensee's activities related to the testing and development of Licensed Products, the anticipated date at which diligence milestones will be met, and the activities of any Sublicensees, if any. The Progress Report will contain sufficient detail for The Regents to determine whether or not the Licensee has met its diligence obligations set forth in Article 6 (Due Diligence). Licensee will continue to provide Progress Reports to The Regents so long as Licensed Products are in development. C. After the first commercial sale Sale of a Licensed Product, LICENSEE the Licensee will submit provide quarterly royalty reports to THE REGENTS a semi-annual progress report covering LICENSEE activities in meeting the performance obligations set forth in Article 5 The Regents on or before each February 28, May 31, August 31, and Exhibit B November 30 of this Agreementeach year. The Each such royalty report will include at a minimum cover the following information: License Number Name of Licensee Date of Report Reporting period Description most recently completed calendar quarter (January through March, April through June, July through September, and October through December) and will show: i. the quantity of Licensed Products or Licensed Methods Status of Commercialization Milestones The report will be due to THE REGENTS on August 31 of each calendar year for Sold by the period January through June of that year Licensee and on February 28 of each calendar year for the period July through December of the preceding calendar year. The first report will be due August 31, 1997 for commercialization activities its Sublicensees during the period January 1, 1997 through June 30, 1997.most recently completed calendar quarter; 6.2 LICENSEE will report to THE REGENTS ii. the first commercial sale of each type of Licensed Product, and the first commercial use of Licensed MethodsEarned Royalties, in United States dollars, payable hereunder; and iii. the U.S. and in each country outside method used to calculate the U.S. Such report will include at a minimum, the following informationEarned Royalty. License Number Name of Licensee Date of Report Date of First Commercial Sale/Lease/Use Place of First Commercial Sale/Lease/Use Description of Licensed Product(s)/Method(s) sold/leased/used 6.3 After the first commercial sale royalty report, if no Sales of Licensed Products have been made during any calendar quarter, then a Licensed Product anywhere statement to this effect must be provided by the Licensee in the world, LICENSEE will submit semi-annual written applicable quarter's royalty reports to THE REGENTS on August 31 of each calendar year for the period January through June of that year and on February 28 of each calendar year for the period July through December of the preceding calendar year. The royalty report will include at a minimum the following information: License Number Name of Licensee Date of Report Reporting period Company's fiscal year Earned royalties or minimum royalties Domestic sales: Description of Licensed Product(s)/Method(s) Unit price of Licensed Product(s)/Method(s) (sale, lease, and/or use) Units of Licensed Product(s)/Method(s) sold in US Units of Licensed Product(s)/Method(s) leased in US Gross sales in US Net Sales in US Royalties due THE REGENTS in $US Foreign sales: Country of sales Description of Licensed Product(s)/Method(s) Unit price of Licensed Product(s)/Method(s) (sale, lease, and/or use) Units of Licensed Product(s)/Method(s) sold in each country Units of Licensed Product(s)/Method(s) leased in each country Gross sales in each country Net Sales in each country Monetary exchange rate Royalties due THE REGENTS in $US US Government Sales: Description of Licensed Product(s)/Method(s) Unit price of Licensed Product(s)/Method(s) (sale, lease, and/or use) Units of Licensed Product(s)/Method(s) sold Units of Licensed Product(s)/Method(s) leased Gross sales Net Sales LICENSEE will also report the name and business address of each purchaser of a capacitive deionization unitreport. 6.4 If LICENSEE has not sold any Licensed Products or used Licensed Methods during any reporting period, LICENSEE will so state in the royalty report filed for such period. 6.5 LICENSEE will provide THE REGENTS with an annual statement of royalty accounts, either audited or certified by LICENSEE's Chief Financial Officer, for each calendar year during the term of this Agreement. All such statements will be due to THE REGENTS on February 28 of the calendar year after the year to which such statement relates. 6.6 LICENSEE will file all reports in accordance with the provisions of Article 19 (NOTICES).

PROGRESS AND ROYALTY REPORTS. 6.1 Until 9.1 Beginning August 31, 2000 and semi-annually thereafter, file Licensee shall submit to The Regents a progress report covering the Licensee’s (and any Affiliate’s or sublicensee’s) activities related to the development and testing of all Licensed Products and the obtaining of the governmental approvals necessary for marketing. Progress reports are required for each Licensed Product until the first commercial sale of that Licensed Product occurs in the United States and shall be again required if commercial sales of such Licensed Product are suspended or discontinued. 9.2 Progress Reports are Licensee’s confidential information. The Regents shall not disclose to third parties any such information or use such information for any reason other than to determine Licensee’s compliance with this Article 9, unless such information is already in the public domain through no fault of the Regents. 9.3 Progress Reports submitted under Paragraph 9.1 shall include, but are not limited to, the following topics with respect to Licensed Products: • summary of work completed • summary of work in progress • current schedule of anticipated events or milestones, • anticipated commercial launch dates for introduction of Licensed Products, and 9.4 The Licensee has a continuing responsibility to keep The Regents informed of the large/small business entity status (as defined by the United States Patent and Trademark Office) of itself and its sublicensees and Affiliates. 9.5 The Licensee shall report to The Regents the date of first commercial sale of a Licensed Product, LICENSEE will submit to THE REGENTS a semi-annual progress report covering LICENSEE activities in meeting the performance obligations set forth in Article 5 and Exhibit B of this Agreement. The report will include at a minimum the following information: License Number Name of Licensee Date of Report Reporting period Description of Licensed Products or Licensed Methods Status of Commercialization Milestones The report will be due to THE REGENTS on August 31 of each calendar year for the period January through June of that year and on February 28 of each calendar year for the period July through December of the preceding calendar year. The first report will be due August 31, 1997 for commercialization activities during the period January 1, 1997 through June 30, 1997. 6.2 LICENSEE will report to THE REGENTS the first commercial sale of each type of Licensed Product, and the first commercial use of Licensed Methods, in the U.S. and Product in each country outside the U.S. Such report will include at a minimum, the following information. License Number Name of Licensee Date of Report Date of First Commercial Sale/Lease/Use Place of First Commercial Sale/Lease/Use Description of Licensed Product(s)/Method(s) sold/leased/usedin its immediately subsequent progress and royalty report. 6.3 9.6 After the first commercial sale of a Licensed Product anywhere in the world, LICENSEE will submit semi-annual written the Licensee shall make quarterly royalty reports to THE REGENTS The Regents on or before each February 28, May 31, August 31 and November 30 of each calendar year for the period January through June of that year and on February 28 of each calendar year for the period July through December of the preceding calendar year. The Each royalty report will include at a minimum cover the following information: License Number Name of Licensee Date of Report Reporting period Company's fiscal year Earned royalties or minimum royalties Domestic sales: Description Licensee’s most recently completed calendar quarter and will show (a) the gross sales and Net Sales of Licensed Product(s)/Method(sProducts sold during the most recently completed calendar quarter; (b) Unit price the number of each type of Licensed Product(s)/Method(sProduct sold; (c) (salethe royalties, leasein U.S. dollars, and/or use) Units payable with respect to sales of Licensed Product(s)/Method(sProducts; (d) sold in US Units the method used to calculate the royalty; and (e) the exchange rates used. 9.7 If no sales of Licensed Product(s)/Method(s) leased in US Gross sales in US Net Sales in US Royalties due THE REGENTS in $US Foreign sales: Country of sales Description of Licensed Product(s)/Method(s) Unit price of Licensed Product(s)/Method(s) (sale, lease, and/or use) Units of Licensed Product(s)/Method(s) sold in each country Units of Licensed Product(s)/Method(s) leased in each country Gross sales in each country Net Sales in each country Monetary exchange rate Royalties due THE REGENTS in $US US Government Sales: Description of Licensed Product(s)/Method(s) Unit price of Licensed Product(s)/Method(s) (sale, lease, and/or use) Units of Licensed Product(s)/Method(s) sold Units of Licensed Product(s)/Method(s) leased Gross sales Net Sales LICENSEE will also report the name and business address of each purchaser of a capacitive deionization unit. 6.4 If LICENSEE has not sold any Licensed Products or used Licensed Methods have been made during any reporting periodperiod following commercial launch of a Licensed Product, LICENSEE will so state in the royalty report filed for such perioda statement to this effect is required. 6.5 LICENSEE will provide THE REGENTS with an annual statement of royalty accounts, either audited or certified by LICENSEE's Chief Financial Officer, for each calendar year during the term of this Agreement. All such statements will be due to THE REGENTS on February 28 of the calendar year after the year to which such statement relates. 6.6 LICENSEE will file all reports in accordance with the provisions of Article 19 (NOTICES).