<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 $40,000,
          payable in two payments of $20,000. 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 $20,000 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 $20,000 shall be due and payable to UTMDACC on the first
          anniversary of the EFFECTIVE DATE; and

     (c)  A nonrefundable annual license maintenance fee of $3,000. This
          maintenance fee is due to UTMDACC beginning on the first anniversary
          of the EFFECTIVE


                                        6
<PAGE>
          DATE and annually thereafter until the first SALE. This fee will not
          reduce any other payment provided for in this ARTICLE IV; and

     (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 first SALE, minimum annual royalties of $5,000. 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 $5,000 for any Sales Year nothing shall be owed
          under this Section 4.1(e); and

     (f)  A $50,000 milestone payment, payable in two installments, which shall
          become payable upon the first SALE of an FDA approved product by
          LICENSEE or any sublicensee. The first installment of $25,000 shall be
          due within thirty (30) days of LICENSEE's receiving an FDA approval
          notification for the product, and a second installment of $25,000
          shall be due one (1) year after LICENSEE receives such FDA approval
          notification; 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.


                                        7
<PAGE>
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 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.


                                        8
<PAGE>
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 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


                                        9
<PAGE>
     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.).

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


                                       10
<PAGE>
     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 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.


                                       22