Document:

EXHIBIT 10.85

                                     WARRANT

THE SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL IN A FORM REASONABLY
SATISFACTORY TO THE ISSUER THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR
APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID
ACT. NOTWITHSTANDING THE FOREGOING, THIS WARRANT MAY BE PLEDGED IN CONNECTION
WITH A BONA FIDE MARGIN ACCOUNT.

                           U.S. HELICOPTER CORPORATION

                        WARRANT TO PURCHASE COMMON STOCK

Warrant No.: USHP-2-8                                  Number of Shares: 125,000

Date of Issuance:   November 10, 2006

U.S. Helicopter Corporation, a Delaware corporation (the "COMPANY"), hereby
certifies that, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, CORNELL CAPITAL PARTNERS, LP (the "HOLDER"),
the registered holder hereof or its permitted assigns, is entitled, subject to
the terms set forth below, to purchase from the Company upon surrender of this
Warrant, at any time or times on or after the date hereof, but not after 11:59
P.M. Eastern Time on the Expiration Date (as defined herein) One Hundred Twenty
Five Thousand (125,000) fully paid and nonassessable shares of Common Stock (as
defined herein) of the Company (the "WARRANT SHARES") at the exercise price per
share provided in Section 1(b) below or as subsequently adjusted; provided,
however, that in no event shall the holder be entitled to exercise this Warrant
for a number of Warrant Shares in excess of that number of Warrant Shares which,
upon giving effect to such exercise, would cause the aggregate number of shares
of Common Stock beneficially owned by the holder and its affiliates to exceed
4.99% of the outstanding shares of the Common Stock following such exercise,
except within sixty (60) days of the Expiration Date (however, such restriction
may be waived by Holder (but only as to itself and not to any other holder) upon
not less than 65 days prior notice to the Company). For purposes of the
foregoing proviso, the aggregate number of shares of Common Stock beneficially
owned by the holder and its affiliates shall include the number of shares of
Common Stock issuable upon exercise of this Warrant with respect to which the
determination of such proviso is being made, but shall exclude shares of Common
Stock which would be issuable upon (i) exercise of the remaining, unexercised
Warrants beneficially owned by the holder and its affiliates and (ii) exercise
or conversion of the unexercised or unconverted portion of any other securities
of the Company beneficially owned by the holder and its affiliates (including,
without limitation, any convertible notes or preferred stock) subject to a

                                      -1-
<PAGE>

limitation on conversion or exercise analogous to the limitation contained
herein. Except as set forth in the preceding sentence, for purposes of this
paragraph, beneficial ownership shall be calculated in accordance with Section
13(d) of the Securities Exchange Act of 1934, as amended. For purposes of this
Warrant, in determining the number of outstanding shares of Common Stock a
holder may rely on the number of outstanding shares of Common Stock as reflected
in (1) the Company's most recent Form 10-QSB or Form 10-KSB, as the case may be,
(2) a more recent public announcement by the Company or (3) any other notice by
the Company or its transfer agent setting forth the number of shares of Common
Stock outstanding. Upon the written request of any holder, the Company shall
promptly, but in no event later than one (1) Business Day following the receipt
of such notice, confirm in writing to any such holder the number of shares of
Common Stock then outstanding. In any case, the number of outstanding shares of
Common Stock shall be determined after giving effect to the exercise of Warrants
(as defined below) by such holder and its affiliates since the date as of which
such number of outstanding shares of Common Stock was reported.

Section 1.

     (a) This Warrant is the common stock purchase warrant (the "WARRANT")
issued pursuant to the Letter Agreement dated October 20, 2006 between the
Company and the Holder.

     (b) DEFINITIONS. The following words and terms as used in this Warrant
shall have the following meanings:

     (i) "BUSINESS DAY" means any day other than Saturday, Sunday or other day
on which commercial banks in the City of New York are authorized or required by
law to remain closed.

     (ii) "CLOSING BID PRICE" means the closing bid price of Common Stock as
quoted on the Principal Market (as reported by Bloomberg Financial Markets
("BLOOMBERG") through its "Volume at Price" function).

     (iii) "COMMON STOCK" means (i) the Company's common stock, par value $0.001
per share, and (ii) any capital stock into which such Common Stock shall have
been changed or any capital stock resulting from a reclassification of such
Common Stock.

     (iv) "EVENT OF DEFAULT" means an event of default under the Convertible
Debentures issued to the Holder in connection with the Securities Purchase
Agreement dated March 31, 2006.

     (v) "EXCLUDED SECURITIES" means, (a) shares of Common Stock issued in
connection with any employee benefit plan which has been approved by the Board
of Directors of the Company, pursuant to which the Company's securities may be
issued to any employee, officer or director for services provided to the
Company, (b) provided such security is issued at a price which is greater than
or equal to the arithmetic average of the Closing Bid Prices of the Common Stock
for the ten (10) consecutive trading days immediately preceding the date of
issuance, any of the following: (i) any issuance by the Company of securities in
connection with a strategic partnership or a joint venture (the primary purpose

                                      -2-
<PAGE>

of which is not to raise equity capital), or (ii) any issuance by the Company of
securities as consideration for a merger or consolidation or the acquisition of
a business, product, license, or other assets of another person or entity, (c)
those options and warrants of the Company issued prior to, and outstanding on,
the Issuance Date of this Warrant, (d) the shares of Common Stock issuable on
exercise of such options and warrants, provided such options and warrants are
not amended after the Issuance Date of this Warrant and (e) the shares of Common
Stock issuable upon exercise of this Warrant or the Convertible Debenture.

     (vi) "EXPIRATION DATE" means the date five (5) years from the Issuance Date
of this Warrant or, if such date falls on a Saturday, Sunday or other day on
which banks are required or authorized to be closed in the City of New York or
the State of New York or on which trading does not take place on the Principal
Exchange or automated quotation system on which the Common Stock is traded (a
"HOLIDAY"), the next date that is not a Holiday.

     (vii) "ISSUANCE DATE" means the date hereof.

     (viii) "OPTIONS" means any rights, warrants or options to subscribe for or
purchase Common Stock or Convertible Securities.

     (ix) "PERSON" means an individual, a limited liability company, a
partnership, a joint venture, a corporation, a trust, an unincorporated
organization and a government or any department or agency thereof.

     (x) "PRINCIPAL MARKET" means the New York Stock Exchange, the American
Stock Exchange, the Nasdaq National Market, the Nasdaq SmallCap Market,
whichever is at the time the principal trading exchange or market for such
security, or the over-the-counter market on the electronic bulletin board for
such security as reported by Bloomberg or, if no bid or sale information is
reported for such security by Bloomberg, then the average of the bid prices of
each of the market makers for such security as reported in the "pink sheets" by
the National Quotation Bureau, Inc.

     (xi) "SECURITIES ACT" means the Securities Act of 1933, as amended.

     (xii) "WARRANT" means this Warrant and all Warrants issued in exchange,
transfer or replacement thereof.

     (xiii) "WARRANT EXERCISE PRICE" shall be $1.65 or as subsequently adjusted
as provided in Section 8 hereof.

     (xiv) "WARRANT SHARES" means the shares of Common Stock issuable at any
time upon exercise of this Warrant.

     (c) Other Definitional Provisions.

     (i) Except as otherwise specified herein, all references herein (A) to the
Company shall be deemed to include the Company's successors and (B) to any
applicable law defined or referred to herein shall be deemed references to such
applicable law as the same may have been or may be amended or supplemented from
time to time.

                                      -3-
<PAGE>

     (ii) When used in this Warrant, the words "HEREIN", "HEREOF", and
"HEREUNDER" and words of similar import, shall refer to this Warrant as a whole
and not to any provision of this Warrant, and the words "SECTION", "SCHEDULE",
and "EXHIBIT" shall refer to Sections of, and Schedules and Exhibits to, this
Warrant unless otherwise specified.

     (iii) Whenever the context so requires, the neuter gender includes the
masculine or feminine, and the singular number includes the plural, and vice
versa.

Section 2.                 EXERCISE OF WARRANT.

     (a) Subject to the terms and conditions hereof, this Warrant may be
exercised by the holder hereof then registered on the books of the Company, pro
rata as hereinafter provided, at any time on any Business Day on or after the
opening of business on such Business Day, commencing with the first day after
the date hereof, and prior to 11:59 P.M. Eastern Time on the Expiration Date (i)
by delivery of a written notice, in the form of the subscription notice attached
as EXHIBIT A hereto (the "EXERCISE NOTICE"), of such holder's election to
exercise this Warrant, which notice shall specify the number of Warrant Shares
to be purchased, payment to the Company of an amount equal to the Warrant
Exercise Price(s) applicable to the Warrant Shares being purchased, multiplied
by the number of Warrant Shares (at the applicable Warrant Exercise Price) as to
which this Warrant is being exercised (plus any applicable issue or transfer
taxes) (the "AGGREGATE EXERCISE PRICE") in cash or wire transfer of immediately
available funds and the surrender of this Warrant (or an indemnification
undertaking with respect to this Warrant in the case of its loss, theft or
destruction) to a common carrier for overnight delivery to the Company as soon
as practicable following such date ("CASH BASIS") or (ii) if at the time of
exercise, the Warrant Shares are not subject to an effective registration
statement or if an Event of Default has occurred, by delivering an Exercise
Notice and in lieu of making payment of the Aggregate Exercise Price in cash or
wire transfer, elect instead to receive upon such exercise the "Net Number" of
shares of Common Stock determined according to the following formula (the
"CASHLESS EXERCISE"):

         Net Number = (A X B) - (A X C)
                      -----------------
                              B

                  For purposes of the foregoing formula:

                  A = the total number of Warrant Shares with respect to which
                  this Warrant is then being exercised.

                  B = the Closing Bid Price of the Common Stock on the date of
                  exercise of the Warrant.

                  C = the Warrant Exercise Price then in effect for the
                  applicable Warrant Shares at the time of such exercise.

                                      -4-
<PAGE>

          In the event of any exercise of the rights represented by this Warrant
in compliance with this Section 2, the Company shall on or before the fifth
(5th) Business Day following the date of receipt of the Exercise Notice, the
Aggregate Exercise Price and this Warrant (or an indemnification undertaking
with respect to this Warrant in the case of its loss, theft or destruction) and
the receipt of the representations of the holder specified in Section 6 hereof,
if requested by the Company (the "EXERCISE DELIVERY DOCUMENTS"), and if the
Common Stock is DTC eligible, credit such aggregate number of shares of Common
Stock to which the holder shall be entitled to the holder's or its designee's
balance account with The Depository Trust Company; provided, however, if the
holder who submitted the Exercise Notice requested physical delivery of any or
all of the Warrant Shares, or, if the Common Stock is not DTC eligible then the
Company shall, on or before the fifth (5th) Business Day following receipt of
the Exercise Delivery Documents, issue and surrender to a common carrier for
overnight delivery to the address specified in the Exercise Notice, a
certificate, registered in the name of the holder, for the number of shares of
Common Stock to which the holder shall be entitled pursuant to such request.
Upon delivery of the Exercise Notice and Aggregate Exercise Price referred to in
clause (i) or (ii) above the holder of this Warrant shall be deemed for all
corporate purposes to have become the holder of record of the Warrant Shares
with respect to which this Warrant has been exercised. In the case of a dispute
as to the determination of the Warrant Exercise Price, the Closing Bid Price or
the arithmetic calculation of the Warrant Shares, the Company shall promptly
issue to the holder the number of Warrant Shares that is not disputed and shall
submit the disputed determinations or arithmetic calculations to the holder via
facsimile within one (1) Business Day of receipt of the holder's Exercise
Notice.

(b) If the holder and the Company are unable to agree upon the determination of
the Warrant Exercise Price or arithmetic calculation of the Warrant Shares
within one (1) day of such disputed determination or arithmetic calculation
being submitted to the holder, then the Company shall immediately submit via
facsimile (i) the disputed determination of the Warrant Exercise Price or the
Closing Bid Price to an independent, reputable investment banking firm or (ii)
the disputed arithmetic calculation of the Warrant Shares to its independent,
outside accountant. The Company shall cause the investment banking firm or the
accountant, as the case may be, to perform the determinations or calculations
and notify the Company and the holder of the results no later than forty-eight
(48) hours from the time it receives the disputed determinations or
calculations. Such investment banking firm's or accountant's determination or
calculation, as the case may be, shall be deemed conclusive absent manifest
error.

(c) Unless the rights represented by this Warrant shall have expired or shall
have been fully exercised, the Company shall, as soon as practicable and in no
event later than five (5) Business Days after any exercise and at its own
expense, issue a new Warrant identical in all respects to this Warrant exercised
except it shall represent rights to purchase the number of Warrant Shares
purchasable immediately prior to such exercise under this Warrant exercised,
less the number of Warrant Shares with respect to which such Warrant is
exercised.

(d) No fractional Warrant Shares are to be issued upon any pro rata exercise of
this Warrant, but rather the number of Warrant Shares issued upon such exercise
of this Warrant shall be rounded up or down to the nearest whole number.

(e) If the Company or its Transfer Agent shall fail for any reason or for no
reason to issue to the holder within ten (10) days of receipt of the Exercise
Delivery Documents, a certificate for the number of Warrant Shares to which the
holder is entitled or to credit the holder's balance account with The Depository

                                      -5-
<PAGE>

Trust Company for such number of Warrant Shares to which the holder is entitled
upon the holder's exercise of this Warrant, the Company shall, in addition to
any other remedies under this Warrant or the Placement Agent Agreement or
otherwise available to such holder, pay as additional damages in cash to such
holder on each day the issuance of such certificate for Warrant Shares is not
timely effected an amount equal to 0.025% of the product of (A) the sum of the
number of Warrant Shares not issued to the holder on a timely basis and to which
the holder is entitled, and (B) the Closing Bid Price of the Common Stock for
the trading day immediately preceding the last possible date which the Company
could have issued such Common Stock to the holder without violating this Section
2.

(f) If within ten (10) days after the Company's receipt of the Exercise Delivery
Documents, the Company fails to deliver a new Warrant to the holder for the
number of Warrant Shares to which such holder is entitled pursuant to Section 2
hereof, then, in addition to any other available remedies under this Warrant, or
otherwise available to such holder, the Company shall pay as additional damages
in cash to such holder on each day after such tenth (10th) day that such
delivery of such new Warrant is not timely effected in an amount equal to 0.25%
of the product of (A) the number of Warrant Shares represented by the portion of
this Warrant which is not being exercised and (B) the Closing Bid Price of the
Common Stock for the trading day immediately preceding the last possible date
which the Company could have issued such Warrant to the holder without violating
this Section 2.

Section 3.                 COVENANTS AS TO COMMON STOCK.  The Company hereby
covenants and agrees as follows:

     (a) This Warrant is, and any Warrants issued in substitution for or
replacement of this Warrant will upon issuance be, duly authorized and validly
issued.

     (b) All Warrant Shares which may be issued upon the exercise of the rights
represented by this Warrant will, upon issuance, be validly issued, fully paid
and nonassessable and free from all taxes, liens and charges with respect to the
issue thereof.

     (c) During the period within which the rights represented by this Warrant
may be exercised, the Company will at all times have authorized and reserved at
least one hundred percent (100%) of the number of shares of Common Stock needed
to provide for the exercise of the rights then represented by this Warrant and
the par value of said shares will at all times be less than or equal to the
applicable Warrant Exercise Price. If at any time the Company does not have a
sufficient number of shares of Common Stock authorized and available, then the
Company shall call and hold a special meeting of its stockholders within sixty
(60) days of that time for the sole purpose of increasing the number of
authorized shares of Common Stock.

     (d) If at any time after the date hereof the Company shall file a
registration statement, the Company shall include the Warrant Shares issuable to
the holder, pursuant to the terms of this Warrant and shall maintain, so long as
any other shares of Common Stock shall be so listed, such listing of all Warrant
Shares from time to time issuable upon the exercise of this Warrant; and the
Company shall so list on each national securities exchange or automated
quotation system, as the case may be, and shall maintain such listing of, any
other shares of capital stock of the Company issuable upon the exercise of this
Warrant if and so long as any shares of the same class shall be listed on such
national securities exchange or automated quotation system.

                                      -6-
<PAGE>

     (e) The Company will not, by amendment of its Articles of Incorporation or
through any reorganization, transfer of assets, consolidation, merger,
dissolution, issue or sale of securities, or any other voluntary action, avoid
or seek to avoid the observance or performance of any of the terms to be
observed or performed by it hereunder, but will at all times in good faith
assist in the carrying out of all the provisions of this Warrant and in the
taking of all such action as may reasonably be requested by the holder of this
Warrant in order to protect the exercise privilege of the holder of this Warrant
against dilution or other impairment, consistent with the tenor and purpose of
this Warrant. The Company will not increase the par value of any shares of
Common Stock receivable upon the exercise of this Warrant above the Warrant
Exercise Price then in effect, and (ii) will take all such actions as may be
necessary or appropriate in order that the Company may validly and legally issue
fully paid and nonassessable shares of Common Stock upon the exercise of this
Warrant.

     (f) This Warrant will be binding upon any entity succeeding to the Company
by merger, consolidation or acquisition of all or substantially all of the
Company's assets.

     Section 4. TAXES. The Company shall pay any and all taxes, except any
applicable withholding, which may be payable with respect to the issuance and
delivery of Warrant Shares upon exercise of this Warrant.

     Section 5. WARRANT HOLDER NOT DEEMED A STOCKHOLDER. Except as otherwise
specifically provided herein, no holder, as such, of this Warrant shall be
entitled to vote or receive dividends or be deemed the holder of shares of
capital stock of the Company for any purpose, nor shall anything contained in
this Warrant be construed to confer upon the holder hereof, as such, any of the
rights of a stockholder of the Company or any right to vote, give or withhold
consent to any corporate action (whether any reorganization, issue of stock,
reclassification of stock, consolidation, merger, conveyance or otherwise),
receive notice of meetings, receive dividends or subscription rights, or
otherwise, prior to the issuance to the holder of this Warrant of the Warrant
Shares which he or she is then entitled to receive upon the due exercise of this
Warrant. In addition, nothing contained in this Warrant shall be construed as
imposing any liabilities on such holder to purchase any securities (upon
exercise of this Warrant or otherwise) or as a stockholder of the Company,
whether such liabilities are asserted by the Company or by creditors of the
Company. Notwithstanding this Section 5, the Company will provide the holder of
this Warrant with copies of the same notices and other information given to the
stockholders of the Company generally, contemporaneously with the giving thereof
to the stockholders.

     Section 6. REPRESENTATIONS OF HOLDER. The holder of this Warrant, by the
acceptance hereof, represents that it is acquiring this Warrant and the Warrant
Shares for its own account for investment only and not with a view towards, or
for resale in connection with, the public sale or distribution of this Warrant
or the Warrant Shares, except pursuant to sales registered or exempted under the

                                      -7-
<PAGE>

Securities Act; provided, however, that by making the representations herein,
the holder does not agree to hold this Warrant or any of the Warrant Shares for
any minimum or other specific term and reserves the right to dispose of this
Warrant and the Warrant Shares at any time in accordance with or pursuant to a
registration statement or an exemption under the Securities Act. The holder of
this Warrant further represents, by acceptance hereof, that, as of this date,
such holder is an "accredited investor" as such term is defined in Rule
501(a)(1) of Regulation D promulgated by the Securities and Exchange Commission
under the Securities Act (an "ACCREDITED INVESTOR"). Upon exercise of this
Warrant the holder shall, if requested by the Company, confirm in writing, in a
form satisfactory to the Company, that the Warrant Shares so purchased are being
acquired solely for the holder's own account and not as a nominee for any other
party, for investment, and not with a view toward distribution or resale and
that such holder is an Accredited Investor. If such holder cannot make such
representations because they would be factually incorrect, it shall be a
condition to such holder's exercise of this Warrant that the Company receive
such other representations as the Company considers reasonably necessary to
assure the Company that the issuance of its securities upon exercise of this
Warrant shall not violate any United States or state securities laws.

     Section 7. OWNERSHIP AND TRANSFER.

     (a) The Company shall maintain at its principal executive offices (or such
other office or agency of the Company as it may designate by notice to the
holder hereof), a register for this Warrant, in which the Company shall record
the name and address of the person in whose name this Warrant has been issued,
as well as the name and address of each transferee. The Company may treat the
person in whose name any Warrant is registered on the register as the owner and
holder thereof for all purposes, notwithstanding any notice to the contrary, but
in all events recognizing any transfers made in accordance with the terms of
this Warrant.

     Section 8. ADJUSTMENT OF WARRANT EXERCISE PRICE AND NUMBER OF SHARES. The
Warrant Exercise Price and the number of shares of Common Stock issuable upon
exercise of this Warrant shall be adjusted from time to time as follows:

     (a) ADJUSTMENT OF WARRANT EXERCISE PRICE AND NUMBER OF SHARES UPON ISSUANCE
OF COMMON STOCK. If and whenever on or after the Issuance Date of this Warrant,
the Company issues or sells, or is deemed to have issued or sold, any shares of
Common Stock (other than Excluded Securities) for a consideration per share less
than a price (the "APPLICABLE PRICE") equal to the Warrant Exercise Price in
effect immediately prior to such issuance or sale, then immediately after such
issue or sale the Warrant Exercise Price then in effect shall be reduced to an
amount equal to such consideration per share. Upon each such adjustment of the
Warrant Exercise Price hereunder, the number of Warrant Shares issuable upon
exercise of this Warrant shall be adjusted to the number of shares determined by
multiplying the Warrant Exercise Price in effect immediately prior to such
adjustment by the number of Warrant Shares issuable upon exercise of this
Warrant immediately prior to such adjustment and dividing the product thereof by
the Warrant Exercise Price resulting from such adjustment.

     (b) EFFECT ON WARRANT EXERCISE PRICE OF CERTAIN EVENTS. For purposes of
determining the adjusted Warrant Exercise Price under Section 8(a) above, the
following shall be applicable:

                                      -8-
<PAGE>

     (i) ISSUANCE OF OPTIONS. If after the date hereof, the Company in any
manner grants any Options and the lowest price per share for which one share of
Common Stock is issuable upon the exercise of any such Option or upon conversion
or exchange of any convertible securities issuable upon exercise of any such
Option is less than the Applicable Price, then such share of Common Stock shall
be deemed to be outstanding and to have been issued and sold by the Company at
the time of the granting or sale of such Option for such price per share. For
purposes of this Section 8(b)(i), the lowest price per share for which one share
of Common Stock is issuable upon exercise of such Options or upon conversion or
exchange of such Convertible Securities shall be equal to the sum of the lowest
amounts of consideration (if any) received or receivable by the Company with
respect to any one share of Common Stock upon the granting or sale of the
Option, upon exercise of the Option or upon conversion or exchange of any
convertible security issuable upon exercise of such Option. No further
adjustment of the Warrant Exercise Price shall be made upon the actual issuance
of such Common Stock or of such convertible securities upon the exercise of such
Options or upon the actual issuance of such Common Stock upon conversion or
exchange of such convertible securities.

     (ii) ISSUANCE OF CONVERTIBLE SECURITIES. If the Company in any manner
issues or sells any convertible securities and the lowest price per share for
which one share of Common Stock is issuable upon the conversion or exchange
thereof is less than the Applicable Price, then such share of Common Stock shall
be deemed to be outstanding and to have been issued and sold by the Company at
the time of the issuance or sale of such convertible securities for such price
per share. For the purposes of this Section 8(b)(ii), the lowest price per share
for which one share of Common Stock is issuable upon such conversion or exchange
shall be equal to the sum of the lowest amounts of consideration (if any)
received or receivable by the Company with respect to one share of Common Stock
upon the issuance or sale of the convertible security and upon conversion or
exchange of such convertible security. No further adjustment of the Warrant
Exercise Price shall be made upon the actual issuance of such Common Stock upon
conversion or exchange of such convertible securities, and if any such issue or
sale of such convertible securities is made upon exercise of any Options for
which adjustment of the Warrant Exercise Price had been or are to be made
pursuant to other provisions of this Section 8(b), no further adjustment of the
Warrant Exercise Price shall be made by reason of such issue or sale.

     (iii) CHANGE IN OPTION PRICE OR RATE OF CONVERSION. If the purchase price
provided for in any Options, the additional consideration, if any, payable upon
the issue, conversion or exchange of any convertible securities, or the rate at
which any convertible securities are convertible into or exchangeable for Common
Stock changes at any time, the Warrant Exercise Price in effect at the time of
such change shall be adjusted to the Warrant Exercise Price which would have
been in effect at such time had such Options or convertible securities provided
for such changed purchase price, additional consideration or changed conversion
rate, as the case may be, at the time initially granted, issued or sold and the
number of Warrant Shares issuable upon exercise of this Warrant shall be
correspondingly readjusted. For purposes of this Section 8(b)(iii), if the terms
of any Option or convertible security that was outstanding as of the Issuance
Date of this Warrant are changed in the manner described in the immediately
preceding sentence, then such Option or convertible security and the Common
Stock deemed issuable upon exercise, conversion or exchange thereof shall be
deemed to have been issued as of the date of such change. No adjustment pursuant
to this Section 8(b) shall be made if such adjustment would result in an
increase of the Warrant Exercise Price then in effect.

                                      -9-
<PAGE>

     (iv) CALCULATION OF CONSIDERATION RECEIVED. If any Common Stock, Options or
convertible securities are issued or sold or deemed to have been issued or sold
for cash, the consideration received therefore will be deemed to be the net
amount received by the Company therefore. If any Common Stock, Options or
convertible securities are issued or sold for a consideration other than cash,
the amount of such consideration received by the Company will be the fair value
of such consideration, except where such consideration consists of marketable
securities, in which case the amount of consideration received by the Company
will be the market price of such securities on the date of receipt of such
securities. If any Common Stock, Options or convertible securities are issued to
the owners of the non-surviving entity in connection with any merger in which
the Company is the surviving entity, the amount of consideration therefore will
be deemed to be the fair value of such portion of the net assets and business of
the non-surviving entity as is attributable to such Common Stock, Options or
convertible securities, as the case may be. The fair value of any consideration
other than cash or securities will be determined jointly by the Company and the
holders of Warrants representing at least two-thirds (b) of the Warrant Shares
issuable upon exercise of the Warrants then outstanding. If such parties are
unable to reach agreement within ten (10) days after the occurrence of an event
requiring valuation (the "VALUATION EVENT"), the fair value of such
consideration will be determined within five (5) Business Days after the tenth
(10th) day following the Valuation Event by an independent, reputable appraiser
jointly selected by the Company and the holders of Warrants representing at
least two-thirds (b) of the Warrant Shares issuable upon exercise of the
Warrants then outstanding. The determination of such appraiser shall be final
and binding upon all parties and the fees and expenses of such appraiser shall
be borne jointly by the Company and the holders of Warrants.

     (v) INTEGRATED TRANSACTIONS. In case any Option is issued in connection
with the issue or sale of other securities of the Company, together comprising
one integrated transaction in which no specific consideration is allocated to
such Options by the parties thereto, the Options will be deemed to have been
issued for a consideration of $.01.

     (vi) TREASURY SHARES. The number of shares of Common Stock outstanding at
any given time does not include shares owned or held by or for the account of
the Company, and the disposition of any shares so owned or held will be
considered an issue or sale of Common Stock.

     (vii) RECORD DATE. If the Company takes a record of the holders of Common
Stock for the purpose of entitling them (1) to receive a dividend or other
distribution payable in Common Stock, Options or in convertible securities or
(2) to subscribe for or purchase Common Stock, Options or convertible
securities, then such record date will be deemed to be the date of the issue or
sale of the shares of Common Stock deemed to have been issued or sold upon the
declaration of such dividend or the making of such other distribution or the
date of the granting of such right of subscription or purchase, as the case may
be.

     (c) ADJUSTMENT OF WARRANT EXERCISE PRICE UPON SUBDIVISION OR COMBINATION OF
COMMON STOCK. If the Company at any time after the date of issuance of this
Warrant subdivides (by any stock split, stock dividend, recapitalization or
otherwise) one or more classes of its outstanding shares of Common Stock into a
greater number of shares, any Warrant Exercise Price in effect immediately prior
to such subdivision will be proportionately reduced and the number of shares of
Common Stock obtainable upon exercise of this Warrant will be proportionately

                                      -10-
<PAGE>

increased. If the Company at any time after the date of issuance of this Warrant
combines (by combination, reverse stock split or otherwise) one or more classes
of its outstanding shares of Common Stock into a smaller number of shares, any
Warrant Exercise Price in effect immediately prior to such combination will be
proportionately increased and the number of Warrant Shares issuable upon
exercise of this Warrant will be proportionately decreased. Any adjustment under
this Section 8(c) shall become effective at the close of business on the date
the subdivision or combination becomes effective.

     (d) DISTRIBUTION OF ASSETS. If the Company shall declare or make any
dividend or other distribution of its assets (or rights to acquire its assets)
to holders of Common Stock, by way of return of capital or otherwise (including,
without limitation, any distribution of cash, stock or other securities,
property or options by way of a dividend, spin off, reclassification, corporate
rearrangement or other similar transaction) (a "Distribution"), at any time
after the issuance of this Warrant, then, in each such case:

     (i) any Warrant Exercise Price in effect immediately prior to the close of
business on the record date fixed for the determination of holders of Common
Stock entitled to receive the Distribution shall be reduced, effective as of the
close of business on such record date, to a price determined by multiplying such
Warrant Exercise Price by a fraction of which (A) the numerator shall be the
Closing Sale Price of the Common Stock on the trading day immediately preceding
such record date minus the value of the Distribution (as determined in good
faith by the Company's Board of Directors) applicable to one share of Common
Stock, and (B) the denominator shall be the Closing Sale Price of the Common
Stock on the trading day immediately preceding such record date; and

     (ii) either (A) the number of Warrant Shares obtainable upon exercise of
this Warrant shall be increased to a number of shares equal to the number of
shares of Common Stock obtainable immediately prior to the close of business on
the record date fixed for the determination of holders of Common Stock entitled
to receive the Distribution multiplied by the reciprocal of the fraction set
forth in the immediately preceding clause (i), or (B) in the event that the
Distribution is of common stock of a company whose common stock is traded on a
national securities exchange or a national automated quotation system, then the
holder of this Warrant shall receive an additional warrant to purchase Common
Stock, the terms of which shall be identical to those of this Warrant, except
that such warrant shall be exercisable into the amount of the assets that would
have been payable to the holder of this Warrant pursuant to the Distribution had
the holder exercised this Warrant immediately prior to such record date and with
an exercise price equal to the amount by which the exercise price of this
Warrant was decreased with respect to the Distribution pursuant to the terms of
the immediately preceding clause (i).

     (e) CERTAIN EVENTS. If any event occurs of the type contemplated by the
provisions of this Section 8 but not expressly provided for by such provisions
(including, without limitation, the granting of stock appreciation rights,
phantom stock rights or other rights with equity features), then the Company's
Board of Directors will make an appropriate adjustment in the Warrant Exercise
Price and the number of shares of Common Stock obtainable upon exercise of this
Warrant so as to protect the rights of the holders of the Warrants; provided,
except as set forth in section 8(c),that no such adjustment pursuant to this
Section 8(e) will increase the Warrant Exercise Price or decrease the number of
shares of Common Stock obtainable as otherwise determined pursuant to this
Section 8.

                                      -11-
<PAGE>

     (f) NOTICES.

     (i) Immediately upon any adjustment of the Warrant Exercise Price, the
Company will give written notice thereof to the holder of this Warrant, setting
forth in reasonable detail, and certifying, the calculation of such adjustment.

     (ii) The Company will give written notice to the holder of this Warrant at
least ten (10) days prior to the date on which the Company closes its books or
takes a record (A) with respect to any dividend or distribution upon the Common
Stock, (B) with respect to any pro rata subscription offer to holders of Common
Stock or (C) for determining rights to vote with respect to any Organic Change
(as defined below), dissolution or liquidation, provided that such information
shall be made known to the public prior to or in conjunction with such notice
being provided to such holder.

     (iii) The Company will also give written notice to the holder of this
Warrant at least ten (10) days prior to the date on which any Organic Change,
dissolution or liquidation will take place, provided that such information shall
be made known to the public prior to or in conjunction with such notice being
provided to such holder.

     Section 9. PURCHASE RIGHTS; REORGANIZATION, RECLASSIFICATION,
CONSOLIDATION, MERGER OR SALE.

     (a) In addition to any adjustments pursuant to Section 8 above, if at any
time the Company grants, issues or sells any Options, Convertible Securities or
rights to purchase stock, warrants, securities or other property pro rata to the
record holders of any class of Common Stock (the "PURCHASE RIGHTS"), then the
holder of this Warrant will be entitled to acquire, upon the terms applicable to
such Purchase Rights, the aggregate Purchase Rights which such holder could have
acquired if such holder had held the number of shares of Common Stock acquirable
upon complete exercise of this Warrant immediately before the date on which a
record is taken for the grant, issuance or sale of such Purchase Rights, or, if
no such record is taken, the date as of which the record holders of Common Stock
are to be determined for the grant, issue or sale of such Purchase Rights.

     (b) Any recapitalization, reorganization, reclassification, consolidation,
merger, sale of all or substantially all of the Company's assets to another
Person or other transaction in each case which is effected in such a way that
holders of Common Stock are entitled to receive (either directly or upon
subsequent liquidation) stock, securities or assets with respect to or in
exchange for Common Stock is referred to herein as an "ORGANIC CHANGE." Prior to
the consummation of any (i) sale of all or substantially all of the Company's
assets to an acquiring Person or (ii) other Organic Change following which the
Company is not a surviving entity, the Company will secure from the Person
purchasing such assets or the successor resulting from such Organic Change (in
each case, the "ACQUIRING ENTITY") a written agreement (in form and substance
satisfactory to the holders of Warrants representing at least two-thirds (iii)
of the Warrant Shares issuable upon exercise of the Warrants then outstanding)

                                      -12-
<PAGE>

to deliver to each holder of Warrants in exchange for such Warrants, a security
of the Acquiring Entity evidenced by a written instrument substantially similar
in form and substance to this Warrant and satisfactory to the holders of the
Warrants (including an adjusted warrant exercise price equal to the value for
the Common Stock reflected by the terms of such consolidation, merger or sale,
and exercisable for a corresponding number of shares of Common Stock acquirable
and receivable upon exercise of the Warrants without regard to any limitations
on exercise, if the value so reflected is less than any Applicable Warrant
Exercise Price immediately prior to such consolidation, merger or sale). Prior
to the consummation of any other Organic Change, the Company shall make
appropriate provision (in form and substance satisfactory to the holders of
Warrants representing a majority of the Warrant Shares issuable upon exercise of
the Warrants then outstanding) to insure that each of the holders of the
Warrants will thereafter have the right to acquire and receive in lieu of or in
addition to (as the case may be) the Warrant Shares immediately theretofore
issuable and receivable upon the exercise of such holder's Warrants (without
regard to any limitations on exercise), such shares of stock, securities or
assets that would have been issued or payable in such Organic Change with
respect to or in exchange for the number of Warrant Shares which would have been
issuable and receivable upon the exercise of such holder's Warrant as of the
date of such Organic Change (without taking into account any limitations or
restrictions on the exercisability of this Warrant).

     Section 10. LOST, STOLEN, MUTILATED OR DESTROYED WARRANT. If this Warrant
is lost, stolen, mutilated or destroyed, the Company shall promptly, on receipt
of an indemnification undertaking (or, in the case of a mutilated Warrant, the
Warrant), issue a new Warrant of like denomination and tenor as this Warrant so
lost, stolen, mutilated or destroyed.

     Section 11. NOTICE. Any notices, consents, waivers or other communications
required or permitted to be given under the terms of this Warrant must be in
writing and will be deemed to have been delivered: (i) upon receipt, when
delivered personally; (ii) upon receipt, when sent by facsimile (provided
confirmation of receipt is received by the sending party transmission is
mechanically or electronically generated and kept on file by the sending party);
or (iii) one Business Day after deposit with a nationally recognized overnight
delivery service, in each case properly addressed to the party to receive the
same. The addresses and facsimile numbers for such communications shall be:

If to Holder:                       Cornell Capital Partners, LP
                                    101 Hudson Street - Suite 3700
                                    Jersey City, NJ  07302
                                    Attention:        Mark A. Angelo
                                    Telephone:        (201) 985-8300
                                    Facsimile:        (201) 985-8266

With Copy to:                       Troy Rillo, Esq.
                                    101 Hudson Street - Suite 3700
                                    Jersey City, NJ 07302
                                    Telephone:        (201) 985-8300
                                    Facsimile:        (201) 985-8266

                                      -13-
<PAGE>

If to the Company, to:              U.S. Helicopter Corporation
                                    6 East River Piers
                                    Downtown Manhattan Heliport
                                    New York, NY 10004
                                    Attention:        Chief Executive Officer
                                    Telephone:        (212) 248-2002
                                    Facsimile:        (212) 248-0940

With a copy to:                     Gallagher, Briody, and Butler
                                    Princeton Forrestal Village
                                    155 Village Boulevard
                                    Princeton, NJ 08540
                                    Attention:  Thomas P. Gallagher, Esq.
                                    Telephone:        (609) 452-6000
                                    Facsimile:        (609) 452-0090

If to a holder of this Warrant, to it at the address and facsimile number set
forth on EXHIBIT C hereto, with copies to such holder's representatives as set
forth on EXHIBIT C, or at such other address and facsimile as shall be delivered
to the Company upon the issuance or transfer of this Warrant. Each party shall
provide five days' prior written notice to the other party of any change in
address or facsimile number. Written confirmation of receipt (A) given by the
recipient of such notice, consent, facsimile, waiver or other communication, (or
(B) provided by a nationally recognized overnight delivery service shall be
rebuttable evidence of personal service, receipt by facsimile or receipt from a
nationally recognized overnight delivery service in accordance with clause (i),
(ii) or (iii) above, respectively.

     Section 12. DATE. The date of this Warrant is set forth on page 1 hereof.
This Warrant, in all events, shall be wholly void and of no effect after the
close of business on the Expiration Date, except that notwithstanding any other
provisions hereof, the provisions of Section 8(b) shall continue in full force
and effect after such date as to any Warrant Shares or other securities issued
upon the exercise of this Warrant.

     Section 13. AMENDMENT AND WAIVER. Except as otherwise provided herein, the
provisions of the Warrants may be amended and the Company may take any action
herein prohibited, or omit to perform any act herein required to be performed by
it, only if the Company has obtained the written consent of the holders of
Warrants representing at least two-thirds of the Warrant Shares issuable upon
exercise of the Warrants then outstanding; provided that, except for Section
8(d), no such action may increase the Warrant Exercise Price or decrease the
number of shares or class of stock obtainable upon exercise of any Warrant
without the written consent of the holder of such Warrant.

     Section 14. DESCRIPTIVE HEADINGS; GOVERNING LAW. The descriptive headings
of the several sections and paragraphs of this Warrant are inserted for
convenience only and do not constitute a part of this Warrant. The corporate
laws of the State of Delaware shall govern all issues concerning the relative
rights of the Company and its stockholders. All other questions concerning the
construction, validity, enforcement and interpretation of this Agreement shall
be governed by the internal laws of the State of New Jersey, without giving
effect to any choice of law or conflict of law provision or rule (whether of the

                                      -14-
<PAGE>

State of New Jersey or any other jurisdictions) that would cause the application
of the laws of any jurisdictions other than the State of New Jersey. Each party
hereby irrevocably submits to the exclusive jurisdiction of the state and
federal courts sitting in Hudson County and the United States District Court for
the District of New Jersey, for the adjudication of any dispute hereunder or in
connection herewith or therewith, or with any transaction contemplated hereby or
discussed herein, and hereby irrevocably waives, and agrees not to assert in any
suit, action or proceeding, any claim that it is not personally subject to the
jurisdiction of any such court, that such suit, action or proceeding is brought
in an inconvenient forum or that the venue of such suit, action or proceeding is
improper. Each party hereby irrevocably waives personal service of process and
consents to process being served in any such suit, action or proceeding by
mailing a copy thereof to such party at the address for such notices to it under
this Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any manner permitted by law.

     Section 15. WAIVER OF JURY TRIAL. AS A MATERIAL INDUCEMENT FOR EACH PARTY
HERETO TO ENTER INTO THIS WARRANT, THE PARTIES HERETO HEREBY WAIVE ANY RIGHT TO
TRIAL BY JURY IN ANY LEGAL PROCEEDING RELATED IN ANY WAY TO THIS WARRANT AND/OR
ANY AND ALL OF THE OTHER DOCUMENTS ASSOCIATED WITH THIS TRANSACTION.

                   REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

                                      -15-
<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Warrant to be signed as
of the date first set forth above.

                                     U.S. HELICOPTER CORPORATION

                                     By:
                                             ----------------------------
                                     Name:    John G. Murphy
                                     Title:   Chief Executive Officer

                                      -16-
<PAGE>

                              EXHIBIT A TO WARRANT

                                 EXERCISE NOTICE

                                 TO BE EXECUTED
                BY THE REGISTERED HOLDER TO EXERCISE THIS WARRANT

                           U.S. HELICOPTER CORPORATION

         The undersigned holder hereby exercises the right to purchase
______________ of the shares of Common Stock ("WARRANT SHARES") of U.S.
Helicopter Corporation (the "COMPANY"), evidenced by the attached Warrant (the
"WARRANT"). Capitalized terms used herein and not otherwise defined shall have
the respective meanings set forth in the Warrant.

Specify Method of exercise by check mark:

         1.  ___  Cash Exercise

                (a) PAYMENT OF WARRANT EXERCISE PRICE. The holder shall pay the
                Aggregate Exercise Price of $______________ to the Company in
                accordance with the terms of the Warrant.

                (b) DELIVERY OF WARRANT SHARES. The Company shall deliver to the
                holder _________ Warrant Shares in accordance with the terms of
                the Warrant.

         2.  ___  Cashless Exercise

                (a) PAYMENT OF WARRANT EXERCISE PRICE. In lieu of making payment
                of the Aggregate Exercise Price, the holder elects to receive
                upon such exercise the Net Number of shares of Common Stock
                determined in accordance with the terms of the Warrant.

                (b) DELIVERY OF WARRANT SHARES. The Company shall deliver to the
                holder _________ Warrant Shares in accordance with the terms of
                the Warrant.

Date: _______________ __, ______

Name of Registered Holder

By:
   -----------------------------------------
Name:
     ---------------------------------------
Title:
      --------------------------------------

                                      -17-
<PAGE>

                              EXHIBIT B TO WARRANT

                              FORM OF WARRANT POWER

         FOR VALUE RECEIVED, the undersigned does hereby assign and transfer to
________________, Federal Identification No. __________, a warrant to purchase
____________ shares of the capital stock of U.S. Helicopter Corporation
represented by warrant certificate no. _____, standing in the name of the
undersigned on the books of said corporation. The undersigned does hereby
irrevocably constitute and appoint ______________, attorney to transfer the
warrants of said corporation, with full power of substitution in the premises.

Dated:
      ------------------------------      ----------------------------------

                                 By:
                                          ----------------------------------
                                 Name:
                                          ----------------------------------
                                 Title:
                                          ----------------------------------

                                      B-1EXHIBIT 10.1

                             DISTRIBUTION AGREEMENT

         This Distribution Agreement between QuantRx Biomedical Corporation, a
Nevada corporation ("Supplier"), with offices at 321 Norristown Rd., Suite 230,
Ambler, PA 19002 and SYNOVA HEALTHCARE, INC., a Delaware corporation,
("Distributor" or "DISTRIBUTOR"), with its offices at 1400 North Providence
Road, Suite 6010, Media, Pennsylvania, 19063, (the "Parties") is effective as of
July 7, 2006 ("Effective Date").

                                   BACKGROUND

         Supplier manufactures and/or supplies products and seeks to establish
or enhance distribution in certain territories. Distributor distributes products
and seeks to distribute additional products to its customers. Supplier desires
to appoint Distributor as an exclusive distributor in certain territories of
certain products, accessories and related goods to be supplied by Supplier and
Distributor desires to accept such appointment.

         THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is acknowledged hereby, and intending to be legally bound
hereby, Distributor agrees to purchase and Supplier agrees to sell products upon
the following terms and subject to the following conditions:

1.       DEFINITIONS

         The following terms have the meaning indicated here when used in this
Agreement:

         1.1 "Affiliate": With respect to either Party, means any person, firm,
corporation, other legal entity which controls or is controlled by or under
common control with such Party.

         1.2 "Products": Means all products, supplies, accessories, parts and
needed goods listed in Exhibit 1 as well as any and all updates, enhancement
sets, or follow-on products relating to the Products, and any other products
that the Parties mutually agree to add to Exhibit 1.

         1.3      "Territory":  Territory  means the United States of America,
which  territory may be expanded  pursuant to Section 3 below.

<PAGE>

                                        2
2.       APPOINTMENT

         Supplier hereby appoints Distributor as the exclusive distributor of
the Products in the Territory. Distributor agrees to use commercially reasonable
efforts to promote, sell and support the Products to customers of the Products.
Subject to Section 4 below, Supplier may not, directly or indirectly, appoint,
license or otherwise grant to any third person the right to sell, promote,
license or distribute the Products in the Territory. Distributor may not
sublicense or appoint sub-distributors without the prior written approval of
Supplier, and Distributor shall purchase all Products from Supplier.
Notwithstanding anything to the contrary set forth in this Agreement,
Distributor may not, directly or indirectly, sell or distribute, or take any
actions to sell or distribute, the Products outside the Territory.

3. EXPANSION OF TERRITORY

         The term Territory shall be amended to include Canada and Mexico if
Distributor meets the Minimum Sales Milestones for Year 1 as more fully
described in Section 4 below. For the purpose of preserving DISTRIBUTOR'S rights
in such an expanded Territory, Supplier shall not take any action that would
frustrate or limit those rights, including, without limitation, directly or
indirectly granting any distribution, licensing or similar rights to any third
party for the Products in Canada or Mexico prior to the conclusion of Year 1
(and any applicable cure period).

4. EXCLUSIVITY MILESTONES AND TERMINATION

         The Distributor's exclusivity granted in Section 2 above is conditional
upon its achieving the annual Exclusivity Milestones set forth below. In the
event that the Distributor fails to achieve any one of the annual Exclusivity
Milestones, unless such failure shall be as a direct result of Supplier's
failure to deliver saleable Product in a timely manner or other action or
failure to act, Supplier shall be entitled to cancel (a) the Distributor's
exclusivity under this Agreement or (b) this Agreement, each upon thirty (30)
days prior written notice; provided, however, if within such thirty (30) day
period the Distributor cures or otherwise achieves the Exclusivity Target, the
Distributor's exclusivity, or this Agreement as applicable, shall continue to be
in effect; provided, further, however, if Supplier fails to prosecute or
otherwise abase any actual or potential infringement, interference, or
misappropriation of any right, title, or interest in or to the Products in the
Territory of which it has actual knowledge, Supplier shall not have the right to
cancel or terminate Distributor's exclusivity and/or this Agreement.

                                       3

<PAGE>

For purposes of the following, a "Unit" shall mean a box of 24 Product pads
individually folded and wrapped in plastic with one package insert containing
patient instructions. The pads shall be wrapped in plastic and folded
substantially similar to the packaging samples provided to Distributor. "Net
Unit Sales" shall mean Units sold to Distributor by Supplier.

                                      EXCLUSIVITY MILESTONES
                        YEAR              NET UNIT SALES
                                       (QUARTERLY/ANNUALLY)
                         1                     [*]
                         2                     [*]
                         3                     [*]
                         4                     [*]
                         5                     [*]

         Year one shall begin on the first day of the month immediately
following the first shipment of Products by Distributor to its initial
customer(s) ("Day 1") and such first shipment will occur on or before November
1, 2006. Each successive year shall be for the 12 month period immediately
following the conclusion of the prior year.

5. FUTURE PRODUCTS

         Supplier shall offer to DISTRIBUTOR the right to be the exclusive
distributor in the Territory of any and all future lines extensions and products
or components intended to be used with the Products or its components for
alternative hemorrhoid treatment or feminine healthcare treatment ("Future
Products"). At such time when Supplier wishes to distribute any Future Products
in the Territory, it will offer the opportunity to DISTRIBUTOR and the Parties
shall engage in good faith negotiations regarding the terms and conditions,
including but not limited to pricing, pursuant to which the Distributor will
have the right to distribute Future Products in the Territory. If after thirty
(30) days the parties have been unable to reach an agreement and have acted in
good faith, Supplier may enter into negotiations with third parties. If Supplier
intends to enter into an agreement with a third party with respect to
distribution of the Future Products in the Territory, it shall first offer to
DISTRIBUTOR a right of first refusal with respect to such agreement. DISTRIBUTOR
must exercise such right of first refusal within ten (10) business days after
Supplier conveys the terms and conditions of such agreement. Notwithstanding
anything to the contrary set forth in this Agreement, Distributor may not,
directly or indirectly, sell or distribute, or take any actions to sell or
distribute, Future Products outside of the Territory and does not have any right
of first refusal with respect to the sale or distribution of Future Products
outside the Territory.

[*] The redacted information (indicated by "[*]") is confidential information
that has been filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.

                                       4

<PAGE>

6. TERM OF AGREEMENT

         The initial term of this Agreement shall commence on The Effective Date
and, unless sooner terminated as provided in the Agreement, shall continue in
effect for a period of five (5) years after Day 1. This Agreement shall
automatically renew thereafter for successive one (1) year periods unless either
Party gives notice of termination no later than sixty (60) days prior to
expiration of the then-current term.

7. ENGAGEMENT FEE AND SHARED REVENUE

         7.1 Upon execution of this Agreement, DISTRIBUTOR shall pay to Supplier
an engagement fee equal to $500,000. The Engagement Fee shall be non-refundable
unless Supplier is in material breach of any of the representations and
warranties set forth in Section 16 hereof, including, without limitation,
Section 16.1.3 relating to ownership of intellectual property. In consideration
of the Engagement Fee, Supplier may not sell or offer an alternative or
competing product that is competitive with the Products in the Territory, such
as the QuantRX/A-Fem Pad, for use in the treatment of hemorrhoids.
Notwithstanding the foregoing, Supplier may make limited internet sales of such
competing products (not to exceed $250,000 in the aggregate) until such time as
DISTRIBUTION'S gross sales exceed $2 million in the aggregate.

         7.2 In addition, consideration of Supplier's supply chain and other
services hereunder, DISTRIBUTOR shall pay an amount equal to [*] percent of
its net sales of Products to Supplier. Net sales shall be calculated for the
period ending September 30, 2006 and thereafter for successive three month
periods. The fee shall be due and payable within thirty (30) days after the end
of each three months period. Upon request by Supplier, DISTRIBUTOR shall provide
Supplier with reasonably detailed information supporting its calculation of net
sales. The Supplier will have the right to reasonably audit the sales records of
the Distributor once annually at the Distributor's location and the Supplier's
expense.

8. PRICES AND PAYMENTS

         8.1 The Prices for the Products shall be as set forth in Exhibit 1.
Prices include the Product, freight, duties and insurance to the F.O.B.
destination of Portland, Oregon. Supplier shall provide written notice to
DISTRIBUTOR of any price increase no later than ninety (90) days prior to the
effective date of the price increase and may not increase prices prior to
January 1, 2008. Any price increases shall be commercially reasonable.
DISTRIBUTOR shall pay any and all sales taxes or other amounts levied upon the
sale, transportation, delivery use or consumption of the Products.

[*] The redacted information (indicated by "[*]") is confidential information
that has been filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.

                                       5

<PAGE>

         8.2 All purchase orders shall be deemed to incorporate the pricing,
delivery and other terms of this Agreement and no terms or conditions set forth
in any purchase order shall modify the provisions of this Agreement unless
mutually agreed in a writing signed by authorized officers of each Party.

         8.3      Distributor's payment for all orders shall be net thirty (30)
days after receipt of invoice by DISTRIBUTOR.

         8.4 Interest shall accrue on any delinquent amounts of the lesser of
ten (10%) percent per year and the maximum rate permitted by applicable law.

9.       TERMINATION

         9.1 If either Party materially breaches or fails to perform any of the
obligations imposed upon it under the terms of this Agreement, the other Party
may terminate the Agreement if the breaching Party fails to cure such breach
within thirty (30) days after receiving written notice of such breach from the
non-breaching party.

         9.2 To the extent permitted by law, if either Party becomes insolvent,
is unable to pay its debts when due, files for bankruptcy, is subject of
involuntary bankruptcy, has a receiver appointed, or has its assets assigned for
the benefit of creditors, the other Party may terminate this Agreement
immediately upon notice to the other Party and may cancel any unfulfilled
obligations.

         9.3      Upon the termination of this Agreement by either Party for
any reason whatsoever.

                  9.3.1 DISTRIBUTOR shall immediately remit all sums due and
owing to Supplier or to become due and owing to Supplier whether for Products
purchased prior to the effective date of termination or otherwise;

                  9.3.2 DISTRIBUTOR shall immediately cease to represent itself
as an authorized distributor of the Products and shall otherwise desist from all
conduct or activity which might lead Distributor's customers or potential
customers or the public to believe that DISTRIBUTOR is authorized by Supplier to
sell Products;

                  9.3.3 DISTRIBUTOR shall immediately return to Supplier all
brochures, materials and other information which DISTRIBUTOR may have in its
possession concerning the Products;

                  9.3.4 DISTRIBUTOR shall immediately advise Supplier in writing
as to the quantity of Products it currently possesses as of the termination of
this Agreement and shall follow any reasonable instructions from Supplier
regarding the disposal of any remaining Products; provided, however, Supplier
may, at its sole option, repurchase from DISTRIBUTOR any or all remaining
Products, including demonstration equipment, then constituting the stock and
inventory of DISTRIBUTOR at a price equal to the price paid by DISTRIBUTOR for
such Products.

                                       6

<PAGE>

10. THE DISTRIBUTOR'S UNDERTAKINGS.

         During the term of this Agreement the Distributor shall faithfully and
diligently perform its obligations as a distributor of the Products in the
Territory, and use its commercially reasonable efforts to promote and increase
the sale of the Products, including without limitation:

         10.1 Refrain from exporting the Products outside the Territory, and
refrain from selling the Products, directly or indirectly, to any customer that
the Distributor has reason to believe intends to export the Products outside the
Territory;

         10.2     Refrain from acting outside the Territory in any way
whatsoever with respect to the Products;

         10.3     Maintain adequate levels of inventory of the Products to meet
 its anticipated  requirements for the Products from the
customers in the Territory;

         10.4     Refrain from having any other person or company  distribute
 the Products  for it without  Supplier's  prior  written approval;

         10.5 Appoint and maintain appropriate professional personnel to direct
and handle its activities as a distributor for the Products and provide its
personnel with adequate facilities with respect to the performance of its
obligations hereunder;

         10.6     Appoint a product manager who will also be the contact person
with Supplier.

11. SUPPLY CHAIN SERVICE AND PERFORMANCE REQUIREMENTS

         11.1 On the first day of each calendar quarter, commencing January 1,
2007, Distributor shall provide Supplier with a rolling good faith forecast
showing anticipated requirements for the subsequent 180 day period (the
"Forecast").

         11.2 DISTRIBUTOR will submit fax or electronic purchase orders to
Supplier. Supplier will provide fax or electronic order acknowledgment within
three (3) business days from the receipt of purchase orders. Order
acknowledgement will include: (a) verification at the item level of shipment
date, ship-from location, and shipment mode/carrier, and (b) order confirmation
number.

         11.3 DISTRIBUTOR shall be responsible for boxing and packaging the
Products into Units as specified in Section 4. Distributor shall be responsible
for all packaging design and costs.

                  Supplier agrees to use commercially reasonable efforts to ship
all orders within ten (10) business days following order acknowledgement, unless
directed otherwise by or agreed to by DISTRIBUTOR, but in all events will ship
order within 30 days following order acknowledgement; provided, however, that to
the extent DISTRIBUTOR places an order that is not reasonably related to the
requirements set

                                       7

<PAGE>

forth in the Forecast, Supplier shall only be obligated to use commercially
reasonable efforts to fulfill any excess requirements and it shall not be
considered a breach of this Agreement if Supplier fails to ship any such excess
requirements.

         11.4 Supplier shall provide a first-pass line fill rate of at least
ninety-five percent (95%), measured monthly. This is defined as total purchase
order lines received one hundred percent (100%) complete on the first-pass
(initial receipt) during the month, divided by the total number of lines
received during the same month. Supplier shall be entitled to partial credit for
partially filled lines.

         11.5 Supplier agrees to provide an average lead time of less than or
equal to twenty (20) business days. The average lead time is defined as order
date subtracted from receipt date for each purchase order line received during
the month, divided by the total number of lines received during the same month.
The last receipt date will be used whenever multiple receipts occur for a line.

         11.6 Supplier shall provide DISTRIBUTOR with annual calendars
indicating holiday or other closures of shipping and customer service
operations, and will provide at least thirty (30) days advance notice, in
writing, of any changes to this calendar.

         11.7 Supplier shall provide a packing list with Distributor's purchase
order number, Supplier's item number, quantity shipped and date shipped with
each shipment. If applicable, the packing list should also provide serial
number, lot of each number, NDC and/or UPC number, and expiration date. There
should be no more than one DISTRIBUTOR purchase order number per Supplier
packing list, and all packing lists should b be printed in Supplier part number
sequence indicating split shipments and backorders, as applicable.

         11.8 Supplier shall preserve, package, handle, and pack Products so as
to protect the Products from loss or damage, in conformance with good commercial
practice, government Regulations, and other applicable requirements. Supplier
shall mark the exterior of the boxes with the associated Supplier item number
and serial number, lot or batch number; NDC and/or UPC number as applicable, of
the contents. Supplier shall also provide this information on the exterior of
the boxes in bar-code format. Supplier shall be responsible for any loss or
damage due to its failure to properly preserve, package, handle, or pack
Products. DISTRIBUTOR shall not be required to assert any claims for such loss
or damage against the common carrier involved. Supplier will ship Products in
the final packaging as intended to be received by the end user as ordered.

         11.9 Supplier will not apply any miscellaneous, transportation,
handling, HAZMAT, accessorial, minimum order or pallet charges, subcharges or
fees to any DISTRIBUTOR purchase orders or deliveries unless: (a) specifically
approved in this agreement, and (b) otherwise agreed by the parties.

         11.10 Title to Products and risk of loss or damage will pass to
DISTRIBUTOR when Products are accepted and received by the DISTRIBUTOR location
in Portland,

                                      8

<PAGE>

Oregon. Items lost or damaged in transit, including concealed losses and damage,
will be promptly replaced and shipped at no charge to DISTRIBUTOR, or credit for
those items will be immediately issued to DISTRIBUTOR, at DISTRIBUTOR's
discretion.

         11.11 Supplier shall comply with all laws, regulations and orders
relating to its performance under this Agreement, including without limitation
all anti-fraud and anti-kickback laws, regulations and orders. DISTRIBUTOR and
Supplier each agree, warrant and certify that in performance of this Agreement
it will fully comply with the provisions of the Social Security Act, Section
1128B(b) (42 U.S.C. Section 1320a-7b(b)) which prohibit the knowing or willful
offer, solicitation or receipt of any remuneration, including discounts and/or
rebates, directly or indirectly, in return for purchasing, leasing or ordering
or arranging for or recommending the purchase, lease or order, or any services
or items, including any Products, for which payment may be made in whole or in
part under a federal health care program. This provision shall survive
termination or expiration of this Agreement for any reason.

12. ADVERTISING, PROMOTIONS, TRADEMARK; AND COPYRIGHTED MATERIAL

         12.1 Supplier shall provide sample quantities of current or new sales
literature, artwork, advertising materials, promotional plans and (other
information or programs reasonably related to this Agreement and the Products
("Advertising Materials").

         12.2 DISTRIBUTOR will evaluate requirements and define promotional
plans that DISTRIBUTOR will utilize in connection with marketing and promoting
the Products.

         12.3 DISTRIBUTOR will have the right in is sole discretion to develop
trademarks, trade dress, sales literature, artwork, advertising materials,
promotional plans and other information and intellectual property relating to
the Products ("Distributor Mark and Materials). DISTRIBUTOR will be the
exclusive owner of the Distributor Mark and Materials. Nothing in this Agreement
shall be deemed to grant or convey to Supplier any right, title or interest to
the Distributor Mark and Materials either during the Term or after Termination
of this Agreement and Supplier shall not use the Distributor Mark or Materials
in any manner.

13. SALES, MARKETING AND SUPPORT OBLIGATIONS

         13.1 DISTRIBUTOR shall use commercially reasonable efforts to handle
and resolve feedback from its customers. [Supplier shall have ultimate
responsibility for resolution of Product related issues. Supplier shall provide
complete technical support to customers for all Products.] Any questions or
issues related to packaging or Distributor Mark and Materials will be the
responsibility of the Distributor.

         13.2 Supplier shall provide marketing, demonstration and sales support
for DISBTRIBUTOR's sales and distribution efforts under this Agreement.

                                       9

<PAGE>

14. QUALITY ASSURANCE

         14.1 Supplier agrees to maintain appropriate certification status and
compliance with the Food and Drug Administration's ("FDA") Quality System
Regulations, the Medical Device Directive and/or all other applicable
regulations. As manufacturer, Supplier will comply in all material respects with
all applicable regulations and standards that pertain to it as a manufacturer of
the Products.

15. MODIFICATION OF PRODUCTS

         15.1 DISTRIBUTOR shall have the right to add notations or markings to
the Product packaging with respect to meeting requirements of DISTRIBUTOR
warehouse automation and operating systems. Neither DISTRIBUTOR nor its
customers shall have the right to make any other modifications to the Products
or Product packaging.

         15.2 Supplier may consult with DISTRIBUTOR with respect to new Products
and any design changes or modifications to Products; however, Supplier shall not
be required to use the input, suggestions or advice provided by DISTRIBUTOR.

         15.3 Supplier shall provided DISTRIBUTOR with written notice of all
material Product modifications or Product packaging modifications not less than
thirty (30) days prior to the last order date for the unmodified Product,
including shipping case dimensions and weight.

16. REPRESENTATIONS AND WARRANTIES

         16.1     Supplier, represents, warrants and covenants to DISTRIBUTOR
                  that:

                           16.1.1 Supplier is and will continue to be a duly
                  formed and validly existing entity in good standing under the
                  laws of the state of its organization.

                           16.1.2 Supplier has the full right, power and
                  authority, corporate and/or otherwise, to execute and deliver
                  this Agreement and to otherwise consummate the transactions
                  contemplated by this Agreement.

                           16.1.3 Supplier has sufficient legal and/or
                  beneficial title and ownership under its intellectual property
                  rights necessary for it to fulfill its obligations under this
                  Agreement, and neither the Products nor Distributor's exercise
                  of any rights to the Products granted under this Agreement
                  will violate, infringe upon, or misappropriate any
                  intellectual property rights of any person or entity. There is
                  no material unauthorized use, infringement or misappropriation
                  of any its intellectual property rights by third parties
                  relevant to the Product or other rights granted under this
                  Agreement. As used herein, "intellectual property rights"
                  shall mean all intellectual property rights, including, but
                  not limited to patent rights,

                                       10

<PAGE>

                  copyrights, and rights in trademarks, trade secrets, and
                  confidential and/or proprietary chemical substances, technical
                  information, data and assays necessary or useful to make, use
                  or sell the Product. To the best of Supplier's knowledge,
                  there is no patent issued to a third party that would be
                  infringed by the manufacture, use or sale of Product.

                           16.1.4 The execution, delivery and performance by
                  Supplier under this Agreement, and the transactions and
                  actions contemplated hereunder, have been duly authorized by
                  all necessary actions by Supplier. This agreement, when duly
                  executed and delivered, constitutes a valid, legal and binding
                  obligation of Supplier enforceable in accordance with its
                  terms.

                           16.1.5 The execution, consummation of the
                  transactions contemplated by, and/or compliance with the terms
                  and provisions of this Agreement, will not materially conflict
                  with, result in a material breach of, or constitute a material
                  default under any of the terms, conditions or provisions of
                  Supplier's constituent documents or any agreement, lease,
                  indenture, mortgage, deed of trust, land contract, license or
                  other instrument to which Supplier is a party of by which
                  Supplier may be bound or affected or to which Supplier is
                  subject, or any law, regulation, order, writ, injunction or
                  decree of any court or agency or regulatory body.

                           16.1.6 Supplier is in compliance in all material
                  respects with all applicable laws and regulations relating to
                  the sale, distribution or use of the Products in the
                  Territory. Supplier has completed the general FDA
                  certification activities and received any and all necessary
                  FDA clearance for the Products.

         16.2     DISTRIBUTOR, represents, warrants and covenants to Supplier
                  that:

                           16.2.1 DISTRIBUTOR is and will continue to be a duly
                  formed and validly existing entity in good standing under the
                  laws of the state of its organization.

                           16.2.2 DISTRIBUTOR has the full right, power and
                  authority, corporate and/or otherwise, to execute and deliver
                  this Agreement and to otherwise consummate the transactions
                  contemplated by this Agreement.

                           16.2.3 The execution, delivery and performance by
                  DISTRIBUTOR under this Agreement, and the transactions and
                  actions contemplated hereunder, have been duly authorized by
                  all necessary actions by DISTRIBUTION. This Agreement, when
                  duly executed and delivered, constitutes a valid, legal and
                  binding obligations of DISTRIBUTOR enforceable in accordance
                  with its terms.

                                       11

<PAGE>

                           16.2.4 The execution, consummation of the
                  transactions contemplated by, and/or compliance with the terms
                  and provisions of this Agreement, will not materially conflict
                  with, result in a material breach of, or constitute a material
                  default under any of the terms, conditions or provisions of
                  DISTRIBUTOR'S constituent documents or any agreement, lease,
                  indenture, mortgage, deed of trust, land contract, license or
                  other instrument to which DISTRIBUTOR is a party or by which
                  DISTRIBUTOR may be bound or affected or to which DISTRIBUTOR
                  is subject, or any law, regulation, order, writ, injunction or
                  decree of any court or agency or regulatory body.

                           16.2.5 DISTRIBUTOR is in compliance in all material
                  respects with all applicable laws and regulations relating to
                  the sale, distribution or use of the Products in the
                  Territory. DISTRIBUTOR has completed the general FDA
                  certification activities and received any and all necessary
                  FDA clearance for the Products. DISTRIBUTOR is duly registered
                  as a medical device distributor under applicable FDA rules and
                  regulations.

17.      WARRANTIES

                  The Products listed on the attached Exhibits are covered by a
written warranty (the "User Warranty"), which is the sole warranty relating to
the customer's use of the Products. Supplier shall provide written User
Warranties with all Products sold to DISTRIBUTOR hereunder and DISTRIBUTOR shall
include the User Warranty in all contracts, sales agreements, or other
documents, with and to end users of the Products. To the extent that the
Distributor provides a warranty to its customers and/or end-users other than the
aforesaid warranty (or the translated version thereof) (the "DISTRIBUTOR
WARRANTY"), Supplier shall not be liable to the Distributor or any other person
for any damage or loss of whatsoever nature resulted from such Distributor
Warranty and the Distributor will assume full liability and indemnify and save
Supplier harmless against any and all loss, damage or expense of any kind
arising out of any claim made against Supplier by any person for breach of the
DISTRIBUTOR WARRANTY, which is in excess of the warranties contained in this
section 16. EXCEPT AS AFORESAID, THE WARRANTIES STATED IN SECTIONS 16 AND 17 ALL
ARE THE SOLE WARRANTIES EXPRESSED OR IMPLIED, INCLUDING, WITHOUT LIMITATION,
IMPLIED WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE OR WARRANTY OF
MERCHANTABILITY.

18. COMPLAINTS, QUALITY RECORDS AND RECALLS

         18.1 DISTRIBUTOR will promptly notify, in writing, Supplier's quality
assurance department of all Product complaints and regulatory/conformance issues
that may affect the marketability of Products. Supplier shall notify the
appropriate regulatory agent(s) if required and shall conduct any safety
investigations or other necessary follow-up activities. DISTRIBUTOR will provide
any information essential to such activities. Supplier will promptly notify
DISTRIBUTOR if corrective action is necessary in the Territory.

                                       12

<PAGE>

         18.2 In the event of any recall of a Product required by a governmental
agency for safety or efficacy reasons, or requested by Supplier at its sole
discretion, Supplier agrees to repair or replace at its own cost and expense all
Products subject to the recall and previously delivered to DISTRIBUTOR or
DISTRIBUTOR customers. Supplier also agrees to consult with DISTRIBUTOR to
establish a reasonable process for managing the recall. Supplier shall be
responsible for all reasonable expenditures incurred by DISTRIBUTOR (including,
but not limited to shipping, labor and travel costs) consistent with the recall
process agreed to by the Parties and consistent with HIDA and HDMA industry
guidelines. In the event the recall is not required by a governmental agency for
safety or efficiency reasons, but is instead requested by Supplier at its sole
discretion, Supplier will be responsible for determining the scope of the
recall, including the number of units, timeframe for the recall, and criteria
for completion, at no cost or expense to DISTRIBUTOR.

19. FORCE MAJEURE

         No Party to this Agreement shall be liable for failure or delay of
performance of any of its obligations hereunder if such failure or delay is due
to causes beyond its reasonable control including, without limitation, natural
disasters, fires, earthquake or storm, strikes, material shortages, failures of
public utilities or common carriers, acts of war, terrorism or intervention,
acts, restraints or regulations of any governmental authority, including
compliance with any order of any governmental considerations, or other causes
beyond Supplier's or Distributor's reasonable control; provided that such delay
or failure shall be remedied by such Party as soon as possible after removal of
the cause of such failure. A Party suffering such delay or which expects to
suffer such delay shall promptly notify the other Party in writing of the cause
and expected duration of such delay. In the event a delay lasts or is expected
to last more than thirty (30) days, the other Party shall have the option to
immediately terminate this Agreement upon written notice.

20.      CONFIDENTIALITY

         20.1 Return of Confidential Information. Each Party shall return to the
other all Confidential Information (as defined below) received from that other
Party, along with all copies thereof, immediately upon the termination of this
Agreement.

         20.2 Remedies. Each Party shall be liable to the other for damages
caused by any breach of this Section 19 or by any unauthorized disclosure or use
of the other's Confidential Information by such Party or third parties to whom
unauthorized disclosure was made. In addition to any other rights or remedies
which may be available to it, each Party shall be entitled to seek appropriate
injunctive relief or specific performances to prevent unauthorized use or
disclosure of Confidential Information. Each Party acknowledges and agrees that
the unauthorized use or disclosure of the other Party's Confidential Information
will cause irreparable injury to the other Party and that money damages will not
provide adequate remedy to the other Party.

                                       13

<PAGE>

         20.3 Confidential Information. The business and technical information
developed or acquired by, or entrusted by a third party to, each Party,
including, but not limited to, customer lists, names, contact information,
addresses, telephone numbers, email addresses, Product designs, manufacturing
processes, Product pricing and pricing strategies, business plans, and all
related trade secrets (collectively, "Confidential Information") are the
exclusive property of such Party, are among such Party's valuable assets, and
their value to that Party may be lost by their unauthorized use or disclosure to
persons or entities not related to such Party. Neither Party shall, directly or
indirectly, use the other Party's Confidential Information received hereunder
(other than directly in connection with its obligations hereunder) or disclose
or disseminate it to any party or entity during the term of this Agreement or at
any time thereafter (subject to the exceptions below), regardless of the reason
for such expiration, without the express written consent of the other Party.
This obligation of confidentiality shall not apply to any Confidential
Information which (i) was properly and lawfully known to the receiving Party at
the time of receipt without any misconduct on the receiving Party's part; (ii)
was in the public domain at the time of receipt; (iii) becomes public through no
wrongful act of the Party from a third party who did not thereby violate any
confidentiality obligations to the disclosing Party; or (iv) is required by
applicable law to be divulged.

21.      INDEMNIFICATION

         Supplier shall, except as otherwise provided below, indemnify, and hold
DISTRIBUTOR harmless from, and defend or settle DISTRIBUTOR against any claim
made or any suit, hearing or proceeding, including, but not limited to, all
losses, costs, damages, and expenses (including, without limitation, reasonable
attorneys fees) incurred by DISTRIBUTOR in connection therewith, brought against
DISTRIBUTOR and its Affiliates, subsidiaries, assigns, subcontractors, and
customers, arising out of or relating to an allegation that any Product
infringes, violates, or misappropriates a patent, copyright, trademark, trade
secret, or other intellectual property right of any third party or that any
Product causes or caused death, personal injury, or illness. DISTRIBUTOR shall
(a) promptly notify Supplier in writing of any such claim, (b) reasonably
cooperate with Supplier in connection with the defense of such claim, and (c)
give Supplier the sole authority to defend or settle the claim (at Supplier's
expense) (but Supplier will not settle any claim without DISTRIBUTOR's advance
written consent, which not be withheld unreasonably). In the event the Product
is held to infringe, violate and/or misappropriate and the use or sale of said
Product is enjoined, or it is reasonably believed that such could be the case,
Supplier shall have the option, at its own expense, to procure for DISTRIBUTOR
the right to continue using or selling said Product, or replace same with a
non-infringing Product, or modify same so it becomes non-infringing. In the
event Supplier is unable to accomplish either of the foregoing remedies after
using commercially reasonable efforts to do so, Supplier shall grant a refund to
DISTRIBUTOR of the price paid by DISTRIBUTOR for any of such Products returned
to Supplier by DISTRIBUTOR. Notwithstanding anything to the contrary above, in
no event shall Supplier have any liability under this Section for any such
claims resulting from (a) modifications to the Products by anyone other than
Supplier where the unmodified Products do not infringe and Supplier did not
authorize the modification; or

                                       14

<PAGE>

(b) the combination of the Products with other products not provided or
authorized by Supplier.

22. LIMITATION OF LIABILITY

         WITHOUT IN ANY WAY LIMITING THE FOREGOING, EXCLUDING CLAIMS FOR
INDEMNIFICATION UNDER SECTION 20 ABOVE, IN NO EVENT SHALL EITHER PARTY BE LIABLE
TO THE OTHER PARTY (INCLUDING BUT NOT LIMITED TO SUCH PARTY'S AFFILIATES AND
CUSTOMERS) FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE
DAMAGES OF ANY KIND WHATSOEVER INCLUDING BUT NOT LIMITED TO LOST PROFITS, IN
CONJUNCTION WITH OR ARISING OUT OF THE PERFORMANCE UNDER THIS AGREEMENT OR THE
USE OR PERFORMANCE OF PRODUCTS AND SUPPORT SERVICES EVEN IF THE OTHER PARTY HAS
BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

23. CONFLICT RESOLUTION

         23.1 Each Party shall designate (in writing, if required by the other
Party) a relationship manager responsible for the day to day management and
coordination of the Party's performance under this Agreement, and the Parties'
communications, transactions and relationship with each other. The relationship
managers shall address conflicts that arise relative to this Agreement. If these
relationship managers cannot resolve such conflicts, then Supplier and
DISTRIBUTOR shall promptly establish a review board compromised of appropriate
members of management from Supplier and DISTRIBUTOR to resolve the conflict.

         23.2 In the event that the review board of the Parties does not resolve
a dispute within thirty (30) days from the date the review board is established,
then the Parties agree to submit the dispute to non-binding mediation in
Philadelphia, PA. If the Parties do not resolve the dispute through mediation
within thirty (30) days thereafter, then either of the Parties may elect to
pursue any remedies available at law.

24.      GENERAL

         24.1 Entire Agreement. This Agreement constitutes the entire Agreement
between the parties concerning the subject matter hereof and supersedes any
prior written or verbal agreements or understandings in connection herewith. No
amendment, waiver or modification hereto or hereunder shall be valid unless
specifically made in writing and signed by an authorized signatory of each of
the Parties hereto. No form, invoice, bill of lading, shipping document, order,
receipt or other document shall operate to supersede, modify or amend any
provisions of this Agreement, even if DISTRIBUTOR has initiated, signed or
otherwise acknowledged such document, unless the document expressly states that
it modifies or amends this Agreement and is signed by an authorized
representative of DISTRIBUTOR and Supplier. Neither Party's failure to exercise
any of its rights under this Agreement will constitute or be deemed a waiver or
forfeiture of those rights. All Exhibits attached to the Agreement shall be
deemed a part of this Agreement and

                                       15

<PAGE>

incorporated herein. Terms that are defined in this Agreement, and used in any
Exhibit, have the same meaning in the Exhibit as in this Agreement.

         24.2 Notices. All notices and other communications required or
permitted hereunder shall be in writing and shall be mailed by registered or
certified mail or delivered either by hand or messenger, or sent via fax,
addressed to the address set forth in the introduction paragraph of this
Agreement. Any notice or other communication so addressed and mailed by
registered or certified mail (in each case, with return receipt requested) shall
be deemed to be delivered and given when so mailed. Any notice or other
communication so addressed and delivered by hand, by messenger or by fax shall
be deemed to be given when actually received by the addressee.

         24.3 Assignment. Neither Party may assign nor delegate the performance
of its duties hereunder without the other Party's prior written consent, which
shall not be unreasonably withheld. Notwithstanding the foregoing, either party
may assign this Agreement to a wholly owned subsidiary or to a purchaser or
transferee of all or substantially all of the business assets dedicated to the
Products.

         24.4 Venue and Jurisdiction. The laws of the Commonwealth of
Pennsylvania will govern any disputes arising in connection with this Agreement
(without regard for its conflicts of laws rules). Subject to Section 22 above,
Supplier and DISTRIBUTOR hereby consent to the exclusive jurisdiction and venue
of the courts located in New York County, New York.

         24.5 Attorneys' Fees. In any action relating to this Agreement, the
prevailing Party shall be entitled to recover reasonable attorneys' fees and
other costs incurred therein, in addition to any other appropriate relief.

         24.6 Severability. If for any reason any provision of this Agreement
shall be deemed by a court of competent jurisdiction to be legally invalid or
unenforceable, the validity of the remainder of the Agreement shall not be
affected and the offending provision shall be deemed modified to the minimum
extent necessary to make it consistent with applicable law, and, in its modified
form, the provision shall then be enforceable and enforced.

         24.7 Captions. The section headings and captions of this Agreement are
for convenience and reference only and in no way define, limit or describe the
scope or intent of this Agreement nor substantively affect it in any way.

         24.8 Relationship. The relationship of the Parties shall be that of
independent contractors and nothing in this Agreement shall be deemed to create
a partnership or joint venture between the Parties. Neither Party shall hold
itself out as the agent of the other, nor shall either Party incur any
indebtedness or obligations in the name of, or which shall be binding on the
other, without the prior written consent of the other. Each Party assumes full
responsibility for its own personnel under laws and regulations of the
governmental authorities of the applicable jurisdiction.

                                       16

<PAGE>

         24.9 Counterparts. This Agreement may be executed and delivered
(including by facsimile transmission) in one or more counterparts, and by the
different parties hereto in separate counterparts, each of which, when executed
and delivered, shall be deemed to be an original but all of which taken together
shall constitute one and the same agreement.

         24.10 Enforcement. Supplier promptly shall notify Distributor, in
reasonable detail, of any known infringement or potential infringement or
intellectual property rights related to the Products. If Supplier fails to take
commercially reasonable steps to abate such infringement or potential
infringement, or, upon inquiry, indicates that it does not intend to do so,
Distributor shall have the right to do so independently upon notice to Supplier.
The total cost of any infringement action commenced or taken by a party related
to the Products shall be borne by the party taking the action, and such party
shall have the right to attain any recovery or damages for infringement derived
therefrom. The party not taking the action shall reasonably cooperate with and
assist the other party with its efforts in taking the action.

         24.11 Supplier shall notify Distributor in writing within three (3)
business days after each of the following events: (a) Supplier receives or
delivers a notice of termination of any agreement pursuant to which it is
granted a right to use, distribute, market, sell, offer for sale, make, or
manufacture the Products ("Senior Agreement"); (b) Supplier receives, or
delivers, a notice that it, or, as the case may be, another party, is in breach
of any Senior Agreement; and, (c) Supplier receives or delivers a notice
threatening a termination of a Senior Agreement.

                                       17

<PAGE>

         IN WITNESS WHEREOF, the Parties have executed this Agreement to be
exercised by their duly authorized representatives.

SYNOVA HEALTHCARE, INC.                           QUANTRX BIOMEDICAL CORPORATION
a Delaware Corporation

By:       /s/ Stephen King, CEO                   By:    /s/ Walton Witshkin
          ---------------------                   --------------------------

Printed:  Stephen King, CEO                       Printed:  Walton Witshkin

                                                  Its: President and CEO
                                                  --------------------------

                   [Signature Page to Distribution Agreement]

                                       18

<PAGE>

EXHIBIT 1

                                    PRODUCTS

         THE PRODUCT COMMONLY REFERRED TO BY SUPPLIER AS HEMORRHOID PADS

         1. For the purpose of this Agreement, the Products shall mean emollient
coated and uncoated shaped hemorrhoid pads.

         2. Hemorrhoid PADs are for use in humans for hemorrhoid treatment and
anal hygiene.

         3. Hemorrhoid PADs and emollient are US FDA Class I OTC products, and
described in monographs published by the US FDA, which lists ingredients, use,
and waived claims.

                               PRICING INFORMATION

$US [*] PER UNIT (24 per Unit) (plus costs of packaging if Distributor engages
Supplier to do packaging).

[*] The redacted information (indicated by "[*]") is confidential information
that has been filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]