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Exhibit 10.9  

 
 

LICENSE AGREEMENT    
    

        This License Agreement ("Agreement") is by and between Osmotics Corporation, a Colorado Corporation ("Osmotics"), and Osmotics Pharma, Inc., a Colorado
Corporation ("OPI") and as of the date of this Agreement a 98% owned subsidiary of Osmotics. 

RECITALS 

        WHEREAS,
on January 24, 2005, Osmotics and OPI entered into a Technology Transfer Agreement (the "Transfer Agreement"); and 

        WHEREAS,
Osmotics has obtained the exclusive worldwide rights to a barrier repair technology (the "Barrier Repair Technology") under a license agreement with the Regents of the
University of California (the "UCSF Agreement) protected under U.S. Patent No. 5,643,899; and 

        WHEREAS,
pursuant to the Transfer Agreement, for fair and reasonable consideration, Osmotics has agreed to work with the Regents of the University of California (the "Regents") to assign
certain rights under the UCSF Agreement to OPI on a best efforts basis; and 

        WHEREAS,
both parties acknowledge that the consent of the Regents is required to assign any rights under the UCSF Agreement; and 

        WHEREAS,
pursuant to the Transfer Agreement, Osmotics has represented that it has the ability under the UCSF Agreement to sub license its rights without the written consent of the
Regents; and 

        WHEREAS,
pursuant to the Transfer Agreement, Osmotics has agreed to license certain rights under the UCSF Agreement to OPI until such time that the Regents consent to the assignment. 

AGREEMENT 

        1.    Grant of Rights    

Subject
to the terms and conditions of this Agreement, Osmotics hereby grants OPI an exclusive license under the UCSF Agreement for the remaining life of the patent to make, have made, use, market,
sell, have sold, offer for sale, import, export and otherwise commercialize all licensed applications on a worldwide basis. Licensed applications shall include only prescription products using the
Barrier Repair Technology sold in pharmacies, doctors' offices, hospitals or any other similar dispensing facility. 

        2.    Term    

This
Agreement shall expire on the earlier of the remaining life of the patent underlying the UCSF Agreement or such time that Osmotics secures the assignment of the rights under the UCSF Agreement to
OPI as contemplated in the Technology Transfer Agreement. 

        3.    Non-Compete    

Osmotics
agrees not to develop, manufacture, test, market, sell or otherwise commercialize any prescription product using the Barrier Repair Technology. Osmotics shall retain the right to develop,
manufacture, test, market, sell or otherwise commercialize any cosmeceutical product using the Barrier Repair Technology. In the event of a sale of the majority of Osmotics' assets, or merger of
Osmotics with a third party with Osmotics not being the surviving company, such third party shall be prohibited from selling any Barrier Repair product in hospital pharmacies in the United States
without the express written approval of OPI. This covenant not to compete shall survive the term of this Agreement and last until such time that OPI has no rights whatsoever to the Barrier Repair
Technology. 

        4.    Commercialization    

OPI
shall be responsible for developing, manufacturing, marketing and selling all licensed products. Osmotics shall bear no responsibility to assist OPI in any commercialization process. OPI agrees to
be bound to all the terms and conditions of the License Agreement with the Regents of the University of California as though it were the direct licensee for all pharmaceutical applications. 

        5.    Payments    

OPI
shall be obligated to reimburse Osmotics for 1/2 of all annual maintenance fees, minimum royalty fees and patent costs called for under the UCSF Agreement incurred during the term
of this Agreement. Both parties agree that the compensation called for under the Technology Transfer Agreement is sufficient consideration for entering into this Agreement. Osmotics agrees to send
copies of any and all statements or notices received by it from the Regents of the University of California regarding its License Agreement and OPI shall have the right, but not the obligation, to
make any payment or perform any act that may be required to maintain the License Agreement in full force and effect. To the extent that such payments exceed its obligation to reimburse Osmotics for
one-half of all annual maintenance fees, minimum royalty fees (if applicable) and patents costs, OPI shall be entitled to reimburse from Osmotics. To the extent that any such reimbursable
amounts remain unpaid for over thirty (30) days, OPI shall be entitled to interest on such amounts at 15% per annum compounded monthly. 

        6.    Representations and Warranties    

	(a)
	As
of the date of this Agreement, both Osmotics and OPI represent and warrant to the other that (1) it has the corporate power and authority and the legal right to enter into
this Agreement and perform its obligations hereunder; (2) it has taken all necessary corporate action on its part required to authorize the execution and delivery of this Agreement and the
performance of its obligations hereunder; (3) this Agreement has been duly executed and delivered on behalf of such party, and constitutes a legal, valid, and binding obligation of such party
and is enforceable against it in accordance with its terms; and (4) this Agreement and its obligations hereunder do not conflict with, violate or breach or constitute a default or require any
consent under, any contractual obligation or court or administrative order by which such party is bound.

	(b)
	Osmotics
represents and warrants that: (1) the UCSF Agreement and the underlying patent are valid and enforceable; (2) the UCSF Agreement, the underlying patent, and the
licensed applications under this Agreement do not infringe or misappropriate any third party's intellectual property rights; and (3) as of the date of this Agreement, Osmotics is not aware of
any pending or threatened litigation which alleges that the UCSF Agreement, the underlying patent or the licensed applications under this Agreement infringes or misappropriates any third party's
intellectual property rights. 

        7.    Patent Rights    

If
OPI learns of the substantial infringement of any patent licensed under this Agreement, then OPI shall call to Osmotics' attention thereto in writing and provide Osmotics with reasonable evidence
of the infringement. Neither party shall notify a third party of the infringement of any of the patents without first obtaining consent of the other party, which consent will not be unreasonably
denied. Both parties shall use their best efforts in cooperation with each other to terminate infringement without litigation. 

OPI
may request that Osmotics take legal action against the infringement of the licensed patent. Such request must be in writing and must include reasonable evidence of infringement and damages to
OPI. If the infringing activity has not abated within sixty (60) days following the effective date of the request, then Osmotics has the right to commence suit on its own account or refuse to
participate in the suit. 

In
the event that the Regents and/or Osmotics elect not to commence suit on its own account and provides notice of its election within ninety (90) days after receiving notice, OPI may
thereafter bring suit for patent infringement, at its own expense. If, however, OPI elects to bring suit, then the Regents and Osmotics may thereafter join that suit at their own expense. Each party
shall cooperate with the other in litigation proceedings instituted hereunder, but at the expense of the party bringing suit. Litigation will be controlled by the party bringing suit. 

If
during the term of this Agreement Osmotics receives a notice of default from the Regents, Osmotics will be required to notify OPI within three (3) business days of receiving the default
notification. OPI, at its option, may elect to take all reasonable efforts in assisting Osmotics with curing the default. 

        8.    Idemnification    

Each
party shall indemnify, defend, and hold harmless the other party, its affiliates, and their respective employees, officers, directors and agents from and against any and all liability, loss,
damages, cost and expense (including reasonable attorney fees) resulting from or in connection with the breach by such party of any representation or warranty or any of its obligations under this
Agreement. 

        9.    Bankruptcy    

Each
of the parties hereto acknowledges and agrees that this Agreement (a) constitutes a license of Intellectual Property as such term is defined in the United States Bankruptcy Code, as
amended (the "Code"), and (b) is an executory contract with significant obligations to be performed by each party hereto. The parties agree that OPI may fully exercise all of its rights and
elections under the Code, including, without limitation, those set forth in Section 365(n) of the Code. The parties further agree that, in the event that OPI elects to retain its rights as a
licensee under the Code, OPI shall be entitled to complete access to the licensed patent and UCSF Agreement. 

        10.    Applicable Law    

This
Agreement shall be governed by the laws of the State of Colorado. The state and federal courts situated in Denver, Colorado shall have exclusive jurisdiction and venue over any disputes or
controversies relating to or arising out of this Agreement, its performance or breach, and any other aspect of the parties' relationship. 

        IN
WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives as of the date below. 

	

OSMOTICS CORPORATION	
 	

OSMOTICS PHARMA, INC.
	

By:	
 	

/s/  FRANCINE PORTER      
 Francine Porter, Porter	
 	

By:	
 	

/s/  STEVE PORTER      
 Steve Porter, President
	

January 24, 2005	
 	

January 24, 2005

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Exhibit 10.10  

 
 

TECHNOLOGY TRANSFER AGREEMENT    
    

        This Technology Transfer Agreement (the "Agreement") is made this 24th day of January, 2005 by and between Osmotics Corporation (the "Company"), a Colorado
corporation and Osmotics Pharma, Inc. ("OPI"), a Colorado corporation and a 98% owned subsidiary of the Company. 

RECITALS 

        WHEREAS,
the Company formed OPI on or about February 20, 2002 for the purpose of pursuing commercialization of prescription pharmaceutical applications of current and future
technology; and 

        WHEREAS,
the Company is the licensee under an exclusive worldwide license agreement with the Regents of the University of California (the "UCSF Agreement") for all cosmetic and
prescription applications of the barrier repair technology covered by U.S. patent # 5,643,899("Barrier Repair Technology"); and 

        WHEREAS,
the Company is also the co licensee (along with OPI) under an exclusive worldwide license agreement with Brigham Young University (the "BYU Agreement") to utilize the
intellectual property rights to certain cationic steroid molecule technology (the "CSM Technology") covered by U.S. patents # 6,350,738 and 6,486,148; and 

        WHEREAS,
the Company is contemplating certain financing transactions involving the merger of OPI and/or the sale of OPI preferred and/or common stock; and 

        WHEREAS,
in consultation with the potential financing parties, the Company's management has determined that in order to consummate the potential financing transactions, OPI will require
exclusive use and rights to the prescription applications of the Barrier Repair Technology and the sole and exclusive rights to the CSM Technology; and 

        WHEREAS,
both the Company and OPI desire to enter into a transaction whereby OPI will acquire the exclusive use and rights to only the prescription applications of the Barrier Repair
Technology and the CSM Technology currently licensed by the Company; 

AGREEMENT 

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

        1.    Assignment of the UCSF Agreement    

The
Company hereby agrees to make all reasonable efforts to work with the Regents of the University of California (the "Regents") to assign its rights under the UCSF Agreement for prescription
applications to OPI. OPI acknowledges that the ultimate decision to assign such rights rests with the Regents. Notwithstanding the aforesaid, the Company agrees to grant OPI the exclusive rights to
the prescription applications of the UCSF Agreement under a sublicense agreement. The sublicense agreement will remain in effect until such time that the Company is successful in executing an
assignment of the rights. OPI acknowledges that the Company will retain all rights to cosmetic applications under the UCSF Agreement. 

        2.    Removal of the Company from the BYU Agreement    

The
Company also agrees to make all reasonable efforts to have the Company removed as a co licensee under the BYU Agreement. OPI acknowledges that the final decision to remove the Company from the
agreement rests with Brigham Young University. Notwithstanding the aforesaid, the Company agrees to enter into a non compete agreement with OPI related to the CSM Technology. Such non compete
agreement will remain in effect until such time that the Company is removed as a co licensee under the BYU Agreement. 

        3.    Compensation to be Given by OPI    

In
consideration for the actions to be taken by the Company as further described in Sections 1. and 2. above, OPI agrees to provide the following compensation to the Company: 

	(a)
	Issue
a non interest bearing promissory note payable to the Company in the face amount $1.2 million. Such note will be unsecured, and will be payable in amounts ranging from $120,000
per month to $150,000 per month, to be determined by the management of OPI. The promissory note is also in satisfaction of the intercompany payable balance owed by OPI to the Company of approximately
$590,000.

	(b)
	Issue
One Million shares of OPI Class A Preferred Stock, with a stated value of $4.00 per share, convertible into one million shares of OPI common stock at the election of the holder.
The Class A Preferred Stock will accrue dividends at a rate of 6% payable in either cash or common stock of OPI with the exception that the first year's dividend due as a prepayment on April 30, 2005
is only payable in cash. The Class A Preferred Stock will be subordinate to all other classes of Preferred Stock that OPI may offer and will not have any voting rights. The Class A Preferred Stock
will be subject to certain lock up and other restrictions as determined by the Company and OPI. 

        4.    Representations and Warranties    

The
Company hereby represents and warrants to, and covenants with, OPI as follows: 

	(a)
	The
Company has the ability to sublicense the therapeutic applications of the UCSF Agreement to third parties;

	(b)
	The
Company is currently not in default under the UCSF Agreement;

	(c)
	The
Company understands that (i) the Class A Preferred Stock, nor the underlying common shares, have not been registered under the Securities Act of 1933, as amended (the "Act") or
the securities laws of any state, based upon an exemption from such registration requirements for exchange offerings under Section 3(a)(9) of the Act and/or non-public offerings pursuant to Section
4(2) of the Act and Rule 506 of Regulation D under the Act and exemptions contained in applicable state laws; (ii) the Class A Preferred Stock, nor the underlying common shares, may not be sold or
transferred unless registered under the Act and all applicable state securities laws, or unless exemptions from such registration provisions are available with respect to such resale or transfer;
(iii) the Company must bear the economic risk of an investment in the Class A Preferred Stock for an indefinite period of time; and (iv) the Class A Preferred Stock, and any common stock issued upon
conversion, will bear in effect the following legend: 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE OFFERED FOR SALE, SOLD OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OF 1933 (THE "ACT"), OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE ACT, THE AVAILABILITY OF WHICH IS TO BE ESTABLISHED UNDER THE ACT AND TO THE SATISFACTION OF THE
COMPANY.

	(d)
	The
Company is acquiring the Class A Preferred Stock solely for the account of the Company, for investment purposes only.

	(e)
	The
Company has full power and authority to execute and deliver this agreement and to perform the obligations of the Company hereunder; and this Agreement is a legally binding
obligation of the Company in accordance with its terms 

        5.    Idemnification    

The
Company hereby agrees to indemnify and hold harmless OPI, and each officer and director of OPI, against any and all loss, liability, claim, damage and expense whatsoever (including, but not 

limited
to, any and all expenses whatsoever reasonably incurred in investigating, preparing or defending against any litigation commenced or threatened, or any claim whatsoever) arising out of or
based upon any false representation or warranty or breach or failure by the Company to comply with any covenant or agreement made by the Company herein. 

OPI
hereby agrees to indemnify and hold harmless the Company, and each officer and director of the Company, against any and all loss, liability, claim, damage and expense whatsoever (including, but
not limited to, any and all expenses whatsoever reasonably incurred in investigating, preparing or defending against any litigation commenced or threatened, or any claim whatsoever) arising out of or
based upon any false representation or warranty or breach or failure by the Company to comply with any covenant or agreement made by the Company herein. 

        6.    Applicable Law, Jurisdiction and Venue    

This
Agreement shall be governed by Colorado law, without regard to conflicts of law principles. The parties agree that jurisdiction and venue for lawsuit or arbitration arising out of or relating to
the Agreement shall be exclusively with the State and Federal courts or other tribunals located in Denver, Colorado, and the parties hereby waive any objection to such jurisdiction and venue. 

        7.    Assignment    

Neither
party shall assign this Agreement in part or in whole without the written consent of the other party. 

IN
WITNESS WHEREOF, the parties hereto have signed this Agreement as of the date first written above. 

	

OSMOTICS CORPORATION	
 	

OSMOTICS PHARMA, INC.
	

By:	
 	

/s/  FRANCINE PORTER      
 Francine Porter, President	
 	

By:	
 	

/s/  STEVE PORTER      
 Steve Porter, CEO

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TECHNOLOGY TRANSFER AGREEMENT

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