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<br />ORIGINAL <br /> <br />\" .. <br /> <br />PRODUCT TESTING AGREEMENT <br /> <br />~ <br />THIS PRODUCT TESTING AGREEMENT ("Agreement"), dated this 1l.fÍt\ day of <br />July, 2006, by and between PAX Water Technologies, Inc. ("PAX"), a Delaware corporation, <br />having offices at 1615 5th Avenue, San Rafael, California, and The City of Redwood City <br />("CRC"), a public entity, located at 1 0 17 Middlefield Rd Redwood City, 94063, is effective as <br />of the date first above written. <br /> <br />ARTICLE 1 <br />SCOPE <br /> <br />1.1 PAX has agreed to provide its product( s) and associated documentation (the "Product <br />Documentation") known as PAX Water Technologies Potable Water Mixer, but excluding all power <br />and power delivery items appurtenant to such product (together with the Product Documentation, the <br />"Product"), as the same is further described below and in Exhibit "A", attached hereto and made a part <br />hereof, to the CRC's facilities or facility located at Cambridge Rd Water Station (the "Tank(s)") for a <br />One Hundred Twenty (120) day testing period, commencing upon delivery and installation of the Product, <br />unless extended by mutual written agreement of the parties. <br /> <br />1.2 CRC and PAX understand and agree that all Products supplied hereunder are for <br />the dual purposes of (i) CRC's evaluation for possible future implementation in its facilities and <br />(ii) collection of data during testing by both PAX and CRC (including without limitation profile <br />data of chlorine residuals and temperature) for use by both PAX and CRC as set forth herein. <br /> <br />1.3 <br /> <br />The scope of the testing is set forth in the said Exhibit" A" . <br /> <br />ARTICLE 2 <br />CARE OF INFORMATION: LIMITED LICENSE: <br />INDEMNIFICATION <br /> <br />2.1 CRC acknowledges and agrees that the Product as a whole and in each of its <br />individual parts is confidential, proprietary to, and a trade secret of PAX, that CRC will protect <br />the Product with the same due care that it protects its own real and personal property but in no <br />event less than reasonable care, and that CRC will not copy, disclose to third parties or reproduce <br />said Product, reference materials, case studies, literature, or any portion thereof, or use the <br />Products, reference materials, literature or any portion thereof for any purpose other than the <br />purposes set forth in Section 2.3 below without PAX's prior written consent. Notwithstanding <br />the foregoing, the parties recognize that the CRC is a public agency and is subject to the <br />California Public Records Act (Government Code Sections 6250, et. seq.). CRC will not be held <br />liable in connection with CRC's reasonable acts taken to deliver any of the Product <br />Documentation to comply with the Public Records Act, subpoena or valid court order; provided <br />that CRC immediately gives PAX notice of such required disclosure and provides PAX with <br />reasonable assistance to obtain injunctive relief or regulatory exception (if any). <br /> <br />2.2 CRC shall restrict access to the Product to the minimum number of its employees <br />necessary to conduct testing. <br /> <br />1 <br />