<PAGE>

                                                                    EXHIBIT 10.2

Confidential Treatment Requested.  *** indicates material has been omitted
pursuant to a Confidential Treatment Request filed with the Securities and
Exchange Commission. A complete copy of this agreement has been filed separately
with the Securities and Exchange Commission.

                     PATENT AND TECHNOLOGY LICENSE AGREEMENT

      This twenty-two (22) page AGREEMENT ("AGREEMENT") is made on this 1st day
of August, 2004, by and between THE BOARD OF REGENTS ("BOARD") of THE UNIVERSITY
OF TEXAS SYSTEM ("SYSTEM"), an agency of the State of Texas, whose address is
201 West 7th Street, Austin, Texas 78701, on behalf of THE UNIVERSITY OF TEXAS
M. D. ANDERSON CANCER CENTER ("UTMDACC"), a component institution of SYSTEM, and
Power3 Medical Products, Inc., a corporation organized under the laws of Nevada
and having a principal place of business at 3400 Research Forest Drive, The
Woodlands, Texas 77381 ("LICENSEE").

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                 <C>
RECITALS.......................................................................      2

I.     EFFECTIVE DATE..........................................................      2

II.    DEFINITIONS.............................................................      2

III.   LICENSE.................................................................      4

IV.   CONSIDERATION, PAYMENTS AND REPORTS......................................      6

V.     SPONSORED RESEARCH......................................................     10

VI.   PATENTS AND INVENTIONS...................................................     10

VII.  INFRINGEMENT BY THIRD PARTIES............................................     10

VIII.  PATENT MARKING..........................................................     12

IX.    INDEMNIFICATION.........................................................     12

X.     USE OF BOARD AND UTMDACC'S NAME.........................................     12

XI.   CONFIDENTIAL INFORMATION AND PUBLICATION.................................     13

XII.  ASSIGNMENT...............................................................     14

XIII.  TERM AND TERMINATION....................................................     14

XIV.  WARRANTY: SUPERIOR-RIGHTS................................................     17

XV.  GENERAL...................................................................     18

SIGNATURES.....................................................................     21
</TABLE>

                                       1
<PAGE>

                                    RECITALS

A.    BOARD owns certain PATENT RIGHTS and TECHNOLOGY RIGHTS related to LICENSED
      SUBJECT MATTER developed at UTMDACC.

B.    BOARD, through UTMDACC, desires to have the LICENSED SUBJECT MATTER and
      any DERIVED PRODUCTS developed in the LICENSED FIELD and used for the
      benefit of LICENSEE, BOARD, SYSTEM, UTMDACC, the inventor(s), and the
      public as outlined in BOARD's Intellectual Property Policy.

C.    LICENSEE wishes to obtain a license from BOARD to practice LICENSED
      SUBJECT MATTER.

      NOW, THEREFORE, in consideration of the mutual covenants and promises
      herein contained, the parties agree as follows:

                               I. EFFECTIVE DATE

1.1   This AGREEMENT is effective as of the date written above ("EFFECTIVE
      DATE").

                                II. DEFINITIONS

      As used in this AGREEMENT, the following terms have the meanings
      indicated:

2.1   AFFILIATE means any business entity more than fifty percent (50%) owned by
      LICENSEE, any business entity which owns more than fifty percent (50%) of
      LICENSEE, or any business entity that is more than fifty percent (50%)
      owned by a business entity that owns more than fifty percent (50%) of
      LICENSEE.

2.2   DERIVED PRODUCT means any service or product, whether or not a LICENSED
      PRODUCT, that utilizes or is based on biological markers, proteins or
      other proteomic information (including, but not limited to, protein
      fractions, protein patterns and protein profiles) identified, discovered,
      analyzed, developed or otherwise derived or made

                                       2
<PAGE>

      possible using LICENSED SUBJECT MATTER, PATENT RIGHTS and/or TECHNOLOGY
      RIGHTS.

2.3   LICENSED FIELD means all fields of use.

2.4   LICENSED PRODUCTS means any product or service sold by LICENSEE comprising
      LICENSED SUBJECT MATTER pursuant to this AGREEMENT.

2.5   LICENSED SUBJECT MATTER means inventions and discoveries covered by PATENT
      RIGHTS or TECHNOLOGY RIGHTS within LICENSED FIELD.

2.6   LICENSED TERRITORY means the entire world.

2.7   NET SALES means the gross revenues received by LICENSEE or its
      sublicensee, as appropriate, from a SALE less sales discounts actually
      granted, sales and/or use taxes actually paid, import and/or export duties
      actually paid, outbound transportation actually prepaid or allowed, and
      amounts actually allowed or credited due to returns (not exceeding the
      original billing or invoice amount)("DEDUCTIONS"). NET SALES shall also
      include the gross revenues less DEDUCTIONS received by LICENSEE or any
      sublicensee, as appropriate, for any DERIVED PRODUCTS. All gross revenues
      and DEDUCTIONS shall be recorded by LICENSEE or sublicensee, as
      appropriate, in their respective official books and records in accordance
      with generally accepted accounting practices and consistent with
      LICENSEE's or sublicensee's, as appropriate, published financial
      statements and/or regulatory filings with the United States Securities and
      Exchange Commission.

2.8   PATENT RIGHTS means BOARD's rights in information or discoveries claimed
      in the patents, and/or patent applications and any letters patent that
      issue thereon, whether domestic or foreign, listed on Exhibit I attached
      hereto.

                                       3
<PAGE>

2.9   SALE OR SOLD means the transfer or disposition of a LICENSED PRODUCT or
      DERIVED PRODUCT for value to a party other than LICENSEE or AFFILIATE.

2.10  TECHNOLOGY RIGHTS means BOARD's rights in any technical information,
      know-how, processes, procedures, compositions, devices, methods, formulae,
      protocols, techniques, software, designs, drawings or data created by the
      inventor(s) listed in Exhibit I at UTMDACC before the EFFECTIVE DATE,
      which are not claimed in PATENT RIGHTS but that are necessary for
      practicing PATENT RIGHTS.

                                  III. LICENSE

3.1   BOARD, through UTMDACC, hereby grants to LICENSEE a royalty-bearing,
      exclusive license under LICENSED SUBJECT MATTER to manufacture, have
      manufactured, use, import, offer to sell and/or sell LICENSED PRODUCTS
      within LICENSED TERRITORY for use within LICENSED FIELD. The foregoing
      grants are subject to Sections 14.2 and 14.3 hereinbelow, the payment by
      LICENSEE to UTMDACC of all consideration as provided herein, the timely
      payment of all amounts due under any related sponsored research agreement
      between UTMDACC and LICENSEE in effect during this AGREEMENT, and is
      further subject to the following rights retained by BOARD and UTMDACC to:

      (a)   Publish the general scientific findings from research related to
            LICENSED SUBJECT MATTER, subject to the terms of Article XI -
            Confidential Information and Publication; and

      (b)   use LICENSED SUBJECT MATTER for research, teaching, patient care,
            and other educationally related purposes.

                                       4
<PAGE>

3.2   LICENSEE may extend the license granted herein to any AFFILIATE provided
      that the AFFILIATE consents in writing to be bound by this AGREEMENT to
      the same extent as LICENSEE. LICENSEE agrees to deliver such contract to
      UTMDACC within thirty (30) calendar days following execution thereof.

3.3   LICENSEE may grant sublicenses under LICENSED SUBJECT MATTER for any
      lawful purpose. Sublicenses may be granted consistent with the terms of
      this AGREEMENT provided that LICENSEE is responsible for its sublicensees
      relevant to this AGREEMENT, and for diligently collecting all amounts due
      LICENSEE or UTMDACC from sublicensees. If a sublicensee pursuant hereto
      becomes bankrupt, insolvent or is placed in the hands of a receiver or
      trustee, LICENSEE, to the extent allowed under applicable law and in a
      timely manner, agrees to use its best reasonable efforts to collect all
      consideration owed to LICENSEE and to have the sublicense agreement
      confirmed or rejected by a court of proper jurisdiction.

3.4   LICENSEE must deliver to UTMDACC a true and correct copy of each
      sublicense granted by LICENSEE, and any modification or termination
      thereof, within thirty (30) calendar days after execution, modification,
      or termination.

3.5   If this AGREEMENT is terminated pursuant to Article XIII - Term and
      Termination, BOARD and UTMDACC agree to accept as successors to LICENSEE,
      existing sublicensees in good standing at the date of termination provided
      that each such sublicensee consents in writing to be bound by all of the
      terms and conditions of this AGREEMENT.

                                       5
<PAGE>

                    IV. CONSIDERATION, PAYMENTS AND REPORTS

4.1   In consideration of rights granted by BOARD to LICENSEE under this
      AGREEMENT, LICENSEE agrees to pay UTMDACC each of the following:

      (a)   All out-of-pocket expenses incurred by UTMDACC in filing,
            prosecuting, enforcing and maintaining the PATENT RIGHTS, and all
            such future expenses incurred by UTMDACC, for so long as, and in
            such countries as this AGREEMENT remains in effect. UTMDACC will
            invoice LICENSEE within thirty (30) calendar days of the EFFECTIVE
            DATE for expenses billed as of that time and on a quarterly basis
            thereafter. The billed amount for expenses incurred prior to the
            EFFECTIVE DATE will be due and payable by LICENSEE within ninety
            (90) calendar days of invoice. The invoiced amounts for expenses
            billed after the EFFECTIVE DATE will be due within thirty (30)
            calendar days of invoice; and

      (b)   A nonrefundable license documentation fee in the amount of ***,
            payable in two payments of $***. This fee will not reduce the amount
            of any other payments provided for in this ARTICLE IV. UTMDACC will
            invoice LICENSEE for the first payment of $*** after the AGREEMENT
            is fully executed by all parties. Said first payment shall be due
            and payable within thirty (30) days of invoice. The second payment
            of $*** shall be due and payable to UTMDACC on ***; and

      (c)   A nonrefundable annual license maintenance fee of $***. This
            maintenance fee is due to UTMDACC beginning on the first anniversary
            of the EFFECTIVE DATE and annually thereafter until ***. This fee
            will not reduce any other payment provided for in this ARTICLE IV;
            and

                                       6
<PAGE>

      (d)   A running royalty equal to ***. LICENSEE shall be responsible for
            diligently collecting and paying UTMDACC any royalties due for any
            sublicensee's NET SALES; and

      (e)   After ***, minimum annual royalties of $***. Any royalties payable
            under Section 4.1(d) will be credited toward this amount for each
            Sales Year. For purposed of this AGREEMENT, Sales Year means a year
            measured from the first SALE or anniversary of such first SALE to
            the subsequent anniversary of first SALE. If royalties payable under
            Section 4.1(d) exceed *** nothing shall be owed under this Section
            4.1(e); and

      (f)   A $*** milestone payment, payable in two installments, which shall
            become payable upon ***. The first installment of $*** shall be due
            ***, and a second installment of $*** shall be due ***; and

      (g)   *** (***%) of all consideration, other than research and development
            money and NET SALES, received by LICENSEE, from either (i) any
            sublicensee pursuant to Sections 3.3 and 3.4, or (ii) any assignee
            pursuant to Section 12.1, including, but not limited to, minimum
            royalties, up-front payments, bonuses, milestones, marketing fees,
            distribution fees, franchise fees, option fees, license fees,
            documentation fees, and equity securities.

4.2   Unless otherwise provided, all such payments are payable within thirty
      (30) calendar days after March 31, June 30, September 30, and December 31
      of each year during the term of this AGREEMENT, at which time LICENSEE
      will also deliver to UTMDACC a true and accurate report, giving such
      particulars of the business conducted by LICENSEE and its sublicensees, if
      any exist, during the preceding three (3) calendar months under

                                       7
<PAGE>

      this AGREEMENT as necessary for UTMDACC to account for LICENSEE's payments
      hereunder. This report will include pertinent data, including, but not
      limited to:

      (a)   the accounting methodologies used to account for and calculate the
            items included in the report and any differences in such accounting
            methodologies used by LICENSEE since the previous report; and

      (b)   a list of LICENSED PRODUCTS and DERIVED PRODUCTS produced for the
            three (3) preceding calendar months; and

      (c)   the total quantities of LICENSED PRODUCTS and DERIVED PRODUCTS
            produced; and

      (d)   the total SALES; and

      (e)   the calculation of NET SALES; and

      (f)   the royalties so computed and due UTMDACC and/or minimum royalties;
            and

      (g)   all consideration received by each sublicensee or assignee and
            payments due UTMDACC; and

      (h)   all other amounts due UTMDACC herein.

      Simultaneously with the delivery of each such report, LICENSEE agrees to
      pay UTMDACC the amount due, if any, for the period of such report. These
      reports are required even if no payments are due.

4.3   During the term of this AGREEMENT and for one (1) year thereafter,
      LICENSEE agrees to keep complete and accurate records of its and its
      sublicensees' SALES and NET SALES in sufficient detail to enable the
      royalties and other payments due hereunder to be determined. LICENSEE
      agrees to permit UTMDACC or its representatives, at UTMDACC's expense, to
      periodically examine LICENSEE's books, ledgers, and records

                                       8
<PAGE>

      during regular business hours for the purpose of and to the extent
      necessary to verify any report required under this AGREEMENT. If any
      amounts due UTMDACC are determined to have been underpaid in an amount
      equal to or greater than five percent (5%) of the total amount due during
      the period so examined, then LICENSEE will pay the cost of the examination
      plus accrued interest at the highest allowable rate.

4.4   Within thirty (30) calendar days following each anniversary of the
      EFFECTIVE DATE, LICENSEE will deliver to UTMDACC a written progress report
      as to LICENSEE's (and any sublicensee's) efforts and accomplishments
      during the preceding year in diligently commercializing LICENSED SUBJECT
      MATTER and DERIVED PRODUCTS in the LICENSED TERRITORY and LICENSEE's (and
      sublicensees') commercialization plans for the upcoming year.

4.5   All amounts payable hereunder by LICENSEE will be paid in United States
      funds without deductions for taxes, assessments, fees, or charges of any
      kind. Checks are to be made payable to The University of Texas M. D.
      Anderson Cancer Center, and sent by United States mail to Box 297402,
      Houston, Texas 77297, Attention Manager, Sponsored Programs or by wire
      transfer to:

      BANK ONE TEXAS
      910 TRAVIS
      HOUSTON, TEXAS 77002
      SWIFT: BONEUS44HOU

      ABA ROUTING NO: 11000614
      ACCOUNT NAME:   UNIV. OF TEXAS M. D. ANDERSON CANCER CENTER
      ACCOUNT NO:     1586838979
      REFERENCE:      include title and EFFECTIVE DATE of AGREEMENT and type
of payment (e.g., license documentation fee, milestone payment, royalty
[including applicable patent/application identified by UTMDACC reference number
and patent number or application serial number], or maintenance fee, etc.).

                                       9
<PAGE>

4.6   No payments due or royalty rates owed under this AGREEMENT will be reduced
      as the result of co-ownership of LICENSED SUBJECT MATTER and DERIVED
      PRODUCTS by BOARD and another party, including, but not limited to,
      LICENSEE.

                             V. SPONSORED RESEARCH

5.1   If LICENSEE desires to sponsor research for or related to the LICENSED
      SUBJECT MATTER or DERIVED PRODUCTS, and particularly where LICENSEE
      receives payments for sponsored research pursuant to a sublicense under
      this AGREEMENT, LICENSEE (a) will notify UTMDACC in writing of all
      opportunities to conduct this sponsored research (including clinical
      trials, if applicable), (b) solicit research and/or clinical proposals
      from UTMDACC for this purpose, and (c) will give good faith consideration
      to funding the proposals at UTMDACC.

                           VI. PATENTS AND INVENTIONS

6.1   All decisions regarding prosecution, maintenance and enforcement of PATENT
      RIGHTS shall be within the sole discretion of UTMDACC.

                       VII. INFRINGEMENT BY THIRD PARTIES

7.1   LICENSEE, at its expense, must enforce any patent exclusively licensed
      hereunder against infringement by third parties and is entitled to retain
      recovery from such enforcement. After reimbursement of LICENSEE's
      reasonable legal costs and expenses related to such recovery, LICENSEE
      agrees to pay UTMDACC either: (a) if any award or damages awarded to
      LICENSEE constitutes lost profits on sales of LICENSED PRODUCTS or DERIVED
      PRODUCTS, such award or damages shall be considered as NET SALES for
      purposes of calculating royalties due UTMDACC; and (b) if any award or
      damages awarded to LICENSEE constitute "reasonable royalties" pursuant to
      35 USC

                                       10
<PAGE>

      Section 284 or punitive damages, LICENSEE agrees to pay UTMDACC ***.
      LICENSEE must notify UTMDACC in writing of any potential infringement
      within thirty (30) calendar days of knowledge thereof. If LICENSEE does
      not file suit against a substantial infringer within six (6) months of
      knowledge thereof, then BOARD or UTMDACC may, at its sole discretion,
      enforce any patent licensed hereunder on behalf of itself and LICENSEE,
      with UTMDACC retaining all recoveries from such enforcement, and/or reduce
      the license granted hereunder to non-exclusive.

7.2   In any suit or dispute involving an infringer of any PATENT RIGHTS, the
      parties agree to cooperate fully with each other. At the request and
      expense of the party bringing suit, the other party will permit access
      during regular business hours, to all relevant personnel, records, papers,
      information, samples, specimens, and the like in its possession.

                                       11
<PAGE>

                              VIII. PATENT MARKING

8.1   LICENSEE agrees that all packaging containing individual LICENSED
      PRODUCT(S), documentation therefor, and when possible for actual LICENSED
      PRODUCT(S) SOLD by LICENSEE, AFFILIATES, and/or sublicensees of LICENSEE
      will be permanently and legibly marked with the number of any applicable
      patent(s) licensed hereunder in accordance with each country's patent
      laws, including Title 35, United States Code.

                              IX. INDEMNIFICATION

9.1   LICENSEE agrees to hold harmless and indemnify BOARD, SYSTEM, UTMDACC, its
      Regents, officers, employees, students, and agents from and against any
      claims, demands, or causes of action whatsoever, costs of suit and
      reasonable attorney's fees, including without limitation, those costs
      arising on account of any injury or death of persons or damage to property
      caused by, or arising out of, or resulting from, the exercise or practice
      of the rights granted hereunder by LICENSEE, its officers, its AFFILIATES
      or their officers, employees, agents or representatives.

                       X. USE OF BOARD AND UTMDACC'S NAME

10.1  LICENSEE will not use the name of (or the name of any employee of)
      UTMDACC, SYSTEM or BOARD in any advertising, promotional or sales
      literature, on its Web site, or for the purpose of raising capital without
      the advance express written consent of BOARD secured through:

      M. D. Anderson Services Corporation
      7505 S. Main, Suite 500, Unit 0525
      Houston, TX 77030
      ATTENTION: Natalie Wright
      Email: nwright@mdanderson.org

                                       12
<PAGE>

      Notwithstanding the above, LICENSEE may use the name of (or name of
      employee of) UTMDACC, SYSTEM or BOARD in routine business correspondence,
      or as needed in appropriate regulatory submissions without express written
      consent.

                  XI. CONFIDENTIAL INFORMATION AND PUBLICATION

11.1  UTMDACC and LICENSEE each agree that all information contained in
      documents marked "confidential" and forwarded to one by the other (i) are
      to be received in strict confidence, (ii) used only for the purposes of
      this AGREEMENT, and (iii) not disclosed by the recipient party (except as
      required by law or court order), its agents or employees without the prior
      written consent of the other party, except to the extent that the
      recipient party can establish competent written proof that such
      information:

      (a)   was in the public domain at the time of disclosure; or

      (b)   later became part of the public domain through no act or omission of
            the recipient party, its employees, agents, successors or assigns;
            or

      (c)   was lawfully disclosed to the recipient party by a third party
            having the right to disclose it; or

      (d)   was already known by the recipient party at the time of disclosure;
            or

      (e)   was independently developed by the recipient without use of the
            other party's confidential information; or

      (f)   is required by law or regulation to be disclosed.

11.2  Each party's obligation of confidence hereunder will be fulfilled by using
      at least the same degree of care with the other party's confidential
      information as it uses to protect its own confidential information, but
      always at least a reasonable degree of care. This

                                       13
<PAGE>

      obligation will exist while this AGREEMENT is in force and for a period of
      three (3) years thereafter.

11.3  UTMDACC reserves the right to publish the general scientific findings from
      research related to LICENSED SUBJECT MATTER or DERIVED PRODUCTS, with due
      regard to the protection of LICENSEE's confidential information. UTMDACC
      will submit the manuscript of any proposed publication to LICENSEE at
      least thirty (30) calendar days before publication, and LICENSEE shall
      have the right to review and comment upon the publication in order to
      protect LICENSEE's confidential information. Upon LICENSEE's request,
      publication may be delayed up to sixty (60) additional calendar days to
      enable LICENSEE to secure adequate intellectual property protection of
      LICENSEE's confidential information that would otherwise be affected by
      the publication.

                                XII. ASSIGNMENT

12.1  Except in connection with the sale of all of LICENSEE's assets to a third
      party, this AGREEMENT may not be assigned by LICENSEE without the prior
      written consent of UTMDACC, which will not be unreasonably withheld.

                           XIII. TERM AND TERMINATION

13.1  Subject to Sections 13.3, 13.4 hereinbelow, the term of this AGREEMENT is
      from the EFFECTIVE DATE to the full end of the term or terms for which
      PATENT RIGHTS have not expired, or if only TECHNOLOGY RIGHTS are licensed
      and no PATENT RIGHTS are applicable, for a term of fifteen (15) years.

13.2  Any time after one (1) year from the EFFECTIVE DATE, BOARD or UTMDACC have
      the right to terminate this license in any national political jurisdiction
      within the

                                       14
<PAGE>

      LICENSED TERRITORY if LICENSEE, within ninety (90) calendar days after
      receiving written notice from UTMDACC of the intended termination, fails
      to provide written evidence satisfactory to UTMDACC that LICENSEE or its
      sublicensee(s) has commercialized or is actively and effectively
      attempting to commercialize a licensed invention in such jurisdiction(s).
      The following definitions apply to Section 13.2: (a) "commercialize" means
      having SALES in such jurisdiction; (b) "active attempts to commercialize"
      means having an effective, ongoing and active research, development,
      manufacturing, marketing or sales program as appropriate, directed toward
      obtaining regulatory approval, and/or production and/or SALES in any
      jurisdiction, and has provided plans acceptable to UTMDACC, in its sole
      discretion, to commercialize licensed inventions in the jurisdiction(s)
      that UTMDACC intends to terminate.

13.3  Subject to any rights herein which survive termination, this AGREEMENT
      will earlier terminate in its entirety:

      (a)   automatically, if LICENSEE becomes bankrupt or insolvent and/or if
            the business of LICENSEE shall be placed in the hands of a receiver,
            assignee, or trustee, whether by voluntary act of LICENSEE or
            otherwise; or

      (b)   upon thirty (30) calendar days written notice from UTMDACC, if
            LICENSEE breaches or defaults on the payment or report obligations
            of ARTICLE IV, or use of name obligations of ARTICLE X, unless,
            before the end of the such thirty (30)-calendar day notice period,
            LICENSEE has cured the default or breach to UTMDACC's satisfaction,
            and so notifies UTMDACC, stating the manner of the cure; or

                                       15
<PAGE>

      (c)   upon ninety (90) calendar days written notice from UTMDACC if
            LICENSEE breaches or defaults on any other obligation under this
            AGREEMENT, unless, before the end of the such ninety (90)
            calendar-day notice period, LICENSEE has cured the default or breach
            to UTMDACC's satisfaction and so notifies UTMDACC, stating the
            manner of the cure; or

      (d)   at any time by mutual written agreement between LICENSEE, UTMDACC or
            BOARD, upon one hundred eighty (180) calendar days written notice to
            all parties and subject to any terms herein which survive
            termination; or

      (e)   if Section 13.2 is invoked; or

      (f)   if LICENSEE has defaulted or been late on its payment obligations
            pursuant to the terms of this AGREEMENT on any two (2) occasions in
            a twelve (12) month period.

13.4  Upon termination of this AGREEMENT:

      (a)   nothing herein will be construed to release either party of any
            obligation maturing prior to the effective date of the termination;
            and

      (b)   LICENSEE covenants and agrees to be bound by the provisions of
            Articles IX (Indemnification), X (Use of Board and UTMDACC's Name)
            and XI (Confidential Information and Publication) of this AGREEMENT;
            and

      (c)   LICENSEE may, after the effective date of the termination, sell all
            LICENSED PRODUCTS and DERIVED PRODUCTS and parts therefor that it
            has on hand at the date of termination, if LICENSEE pays the earned
            royalty thereon and any other amounts due pursuant to Article N of
            this AGREEMENT; and

                                       16
<PAGE>

      (d)   LICENSEE grants to BOARD and UTMDACC a nonexclusive royalty bearing
            license with the right to sublicense others with respect to
            improvements made by LICENSEE in the LICENSED SUBJECT MATTER and
            DERIVED PRODUCTS. LICENSEE and UTMDACC agree to negotiate in good
            faith the royalty rate for the nonexclusive license. BOARD's and
            UTMDACC's right to sublicense others hereunder is solely for the
            purpose of permitting others to develop and commercialize the entire
            technology package; and

      (e)   if this AGREEMENT is terminated by UTMDACC, LICENSEE agrees to cease
            and desist all use and sale of LICENSED SUBJECT MATTER and DERIVED
            PRODUCTS immediately upon termination.

                         XIV. WARRANTY: SUPERIOR-RIGHTS

14.1  Except for the rights, if any, of the Government of the United States of
      America as set forth below, BOARD represents and warrants its belief that
      (a) it is the owner of the entire right, title, and interest in and to
      LICENSED SUBJECT MATTER, (b) it has the sole right to grant licenses
      thereunder, and (c) it has not knowingly granted licenses thereunder to
      any other entity that would restrict rights granted hereunder except as
      stated herein.

14.2  LICENSEE understands that the LICENSED SUBJECT MATTER may have been
      developed under a funding agreement with the Government of the United
      States of America and, if so, that the Government may have certain rights
      relative thereto. This AGREEMENT is explicitly made subject to the
      Government's rights under any such agreement and any applicable law or
      regulation, including P.L. 96-517 as amended by P.L. 98-620. To the extent
      that there is a conflict between any such agreement,

                                       17
<PAGE>

      applicable law or regulation and this AGREEMENT, the terms of such
      Government agreement, applicable law or regulation shall prevail.

14.3  LICENSEE understands and agrees that BOARD and UTMDCC, by this AGREEMENT,
      make no representation as to the operability or fitness for any use,
      safety, efficacy, approvability by regulatory authorities, time and cost
      of development, patentability, and/or breadth of the LICENSED SUBJECT
      MATTER or DERIVED PRODUCTS. BOARD and UTMDACC, by this AGREEMENT, also
      make no representation as to whether any patent covered by PATENT RIGHTS
      is valid or as to whether there are any patents now held, or which will be
      held, by others or by BOARD or UTMDACC in the LICENSED FIELD, nor does
      BOARD and UTMDACC make any representation that the inventions contained in
      PATENT RIGHTS do not infringe any other patents now held or that will be
      held by others or by BOARD.

14.4  LICENSEE, by execution hereof, acknowledges, covenants and agrees that
      LICENSEE has not been induced in any way by BOARD, SYSTEM, UTMDACC or
      employees thereof to enter into this AGREEMENT, and further warrants and
      represents that (a) LICENSESE has conducted sufficient due diligence with
      respect to all items and issues pertaining to this AGREEMENT; and (b)
      LICENSEE has adequate knowledge and expertise, or has used knowledgeable
      and expert consultants, to adequately conduct such due diligence, and
      agrees to accept all risks inherent herein.

                                  XV. GENERAL

15.1  This AGREEMENT constitutes the entire and only agreement between the
      parties for LICENSED SUBJECT MATTER and all other prior negotiations,
      representations, agreements, and understandings are superseded hereby. No
      agreements altering or

                                       18
<PAGE>

      supplementing the terms hereof will be made except by a written document
      signed by both parties.

15.2  Any notice required by this AGREEMENT must be given by prepaid, first
      class, certified mail, return receipt requested, and addressed in the case
      of UTMDACC to:

      The University of Texas M. D. Anderson Cancer Center
      Office of Technology Commercialization
      7515 S. Main, Suite 490, Unit 0510
      Houston, Texas 77030
      ATTENTION: William J. Doty

      with copy to BOARD:

      BOARD OF REGENTS
      The University of Texas System
      201 West Seventh Street
      Austin, Texas 78701
      ATTENTION: Office of General Counsel

      or in the case of LICENSEE to:
      Power3 Medical Products, Inc.
      3400 Research Forest Drive
      The Woodlands, Texas 77381
      ATTENTION: Steven Rash

      or other addresses as may be given from time to time under the terms of
      this notice provision.

15.3  LICENSEE must comply with all applicable federal, state and local laws and
      regulations in connection with its activities pursuant to this AGREEMENT.

15.4  LICENSEE covenants and agrees that it will not file any patent
      applications which claim priority, directly or indirectly, to any patent
      or patent application included in PATENT RIGHTS, without the advance
      express written consent of UTMDACC.

15.5  This AGREEMENT will be construed and enforced in accordance with the laws
      of the United States of America and of the State of Texas, without regard
      to its conflict of law

                                       19
<PAGE>

      provisions. The Texas State Courts of Harris County, Texas (or, if there
      is exclusive federal jurisdiction, the United States District Court for
      the Southern District of Texas) shall have exclusive jurisdiction and
      venue over any dispute arising out of this AGREEMENT, and LICENSEE
      consents to the jurisdiction of such courts; however, nothing herein shall
      be deemed as a waiver by BOARD, SYSTEM or UTMDACC of its sovereign
      immunity.

15.6  Failure of BOARD or UTMDACC to enforce a right under this AGREEMENT will
      not act as a waiver of right or the ability to later assert that right
      relative to the particular situation involved.

15.7  Headings included herein are for convenience only and will not be used to
      construe this AGREEMENT.

15.8  If any part of this AGREEMENT is for any reason found to be unenforceable,
      all other parts nevertheless will remain enforceable.

                                       20
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused their duly authorized
representatives to execute this AGREEMENT.

BOARD OF REGENTS OF THE                       POWER3 MEDICAL PRODUCTS, INC.
UNIVERSITY OF TEXAS SYSTEM
By:/s/ John Mendelsohn, M.D.                  By: /s/ Steven Rash
   ----------------------------------             -----------------------------
        John Mendelsohn, M.D.                          Steven Rash
        President                                      Chief Executive Officer
        The University of Texas
        M.D. Anderson Cancer Center
Date: 7/27/04                                 Date: 6/30/04

THE UNIVERSITY OF TEXAS
M.D. ANDERSON CANCER CENTER
By:/s/ Leon Leach
   ----------------------------------
        Leon Leach
        Executive Vice President
        The University of Texas
        M.D. Anderson Cancer Center
Date: 7/23/04

Approved as to Content:

By:/s/ William J. Doty
   ----------------------------------
        William J. Doty
        Managing Director, Technology
        Commercialization
        M.D. Anderson Cancer Center
Date: 7/19/04

                                       21
<PAGE>

                                    EXHIBIT I

MDA03-127 (UTSC:874) entitled "Using Plasma Proteomic Pattern for Diagnosis,
Prediction of Response to Therapy and Clinical Behavior, and Monitoring Disease
in Hematologic Malignancies," invented by: Albitar, Maher, Ph.D.; Estey, Elihu
H., M.D.; Kantarjian, Hagop, M., M.D.; Giles, Francis J., M.D.; Keating, Michael
J., M.D.; and Goldknopf, Ira.

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