Document:

<PAGE>

                                                                    EXHIBIT 10.1

                              EMPLOYMENT AGREEMENT

         EMPLOYMENT AGREEMENT (the "Agreement") dated this November 8, 2002,
between CHIRAL QUEST, LLC, a Minnesota limited liability corporation (together
with its successors and assigns referred to herein as the "Company"), with
principal executive offices located at 787 Seventh Avenue, New York, NY 10019
and ALAN ROTH, residing at 2 Aubrey House, Maida Avenue, London W2 1TQ, UK (the
"Executive").

                               W I T N E S S E T H

         WHEREAS, the Company desires to continue to employ Executive to engage
in such activities and to render such services under the terms and conditions
hereof and has authorized and approved the execution of this Agreement; and

         WHEREAS, Executive desires to continue to be employed by the Company
under the terms and conditions hereinafter provided;

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

         1.       EMPLOYMENT, DUTIES AND ACCEPTANCE.

                  1.1      SERVICES. You will be employed by the Company as its
President and Chief Executive Officer. You will report to the Board of Directors
of the Company (the "Board") and shall perform such duties as are consistent
with your position as President and Chief Executive Officer (the "Services").
You agree to perform such duties faithfully, to devote all your working time,
attention and energies to the business of the Company, and while you remain
employed, not to engage in any other business activity that is in conflict with
your duties and obligations to the Company. Upon approving this Agreement, the
Board of Directors shall elect you to serve as a Director on the Board of
Directors. The principal place of performance of your services hereunder shall
be at the principal offices of the Company or such other place as the Board may
reasonably designate.

                  1.2      ACCEPTANCE. Executive hereby accepts such employment
and agrees to render the Services.

         2.       TERM OF EMPLOYMENT.

                  2.1      TERM. The Executive's employment under this Agreement
(the "Term") shall commence as of the Effective Date (as hereinafter defined)
and shall continue for a term of three (3) years, unless sooner terminated
pursuant to Section 7 of this Agreement. Notwithstanding anything to the
contrary contained herein, the provisions of this Agreement governing Protection
of Confidential Information shall continue in effect as specified in Section 9
hereof and survive the expiration or termination hereof. Prior to the expiration
of the Term, but no less than ninety (90) days prior to the expiration of the
Term, the Term may be extended for additional one (1) year periods upon mutual
written consent of the Executive and the Board.

                  2.2      SALARY EFFECTIVE DATE. The Salary Effective Date of
this Agreement is the date on which the Company (i) consummates a sale, merger,
consolidation, tender offer, business combination or similar transaction
involving a majority of the business assets or stock of the Company or (ii)
acquires

<PAGE>

all or substantially all of the business assets or stock of another entity in
which the Company is the surviving entity.

                  2.3      EFFECTIVE DATE. The effective date of this Agreement
is the date as first written above.

         3.       COMPENSATION.

                  3.1      BASE SALARY. The Company shall pay Executive a salary
(the "Base Salary") equal to Two Hundred Five Thousand Dollars ($205,000.00) per
year for the first year of employment under this Agreement. Following the first
year of the Term, Executive shall receive a base salary of $240,000 per year.
Payment shall be made monthly, on the last day of each calendar month. This
Section 3.1 shall not become effective and binding on the Company and the
Company shall have no obligations pursuant to this Section 3.1 until the Salary
Effective Date. The Company agrees to pay Executive an amount equal to $5,000
per month, which amount will accrue and become due and payable in a limp sum
payment within 10 days of the Salary Effective Date.

                  3.2      EXPENSE REIMBURSEMENT. All travel and other expenses
reasonably incurred by Executive incidental to the rendering of Services to the
Company hereunder shall be paid by the Company or reimbursed to Executive upon
receipt and approval of expense reports on Company forms supported by
appropriate documentation. From time to time, Executive shall submit, and obtain
approval for, proposed expense budgets. All unbudgeted expenses in excess of
$1,000.00 (individually, or collectively if in connection with a single, related
subject or project within a given month) shall require advance approval. The
Company will reimburse Executive for reasonable itemized travel and other
expenses incurred incidental to rendering services to the Company prior to the
Effective Date.

                  3.3      BONUSES. Executive shall be entitled to (a) a bonus
in the amount of Thirty Five Thousand Dollars ($35,000) within 10 days of the
Effective Date and (b) an annual bonus equal to Thirty Five Thousand Dollars
($35,000), payable within 10 business days of each anniversary of the Salary
Effective Date. In addition, the board of directors of the Company (the "Board")
may, at its sole discretion, issue an additional bonus to the Executive in an
amount to be determined by the Board in its sole discretion. This Section 3.3
shall not become effective and binding on the Company and the Company shall have
no obligations pursuant to this Section 3.3 until the Salary Effective Date.

                  3.4      OPTIONS. Executive shall be entitled to receive
options to purchase a number of interests of the Company equal to 1,150,000
interests (determined by taking 10% of the issued and outstanding interests of
the Company as of the Effective Date) at a price per share equal to $1.12 (the
"Options") (subject to adjustment for splits and/or other capital
restructuring), which shall vest as follows:

                  (a)      383,333 of the Options will vest on the date that is
         one year from the Salary Effective Date;

                  (b)      383,333 of the Options will vest on the date that is
         two years from the Salary Effective Date; and

                  (c)      383,334 of the Options will vest on the date that is
         three years from the Salary Effective Date;

No Options will vest until the first anniversary of the Salary Effective Date.
With the exception of the foregoing terms described in this Section 3.4, all
terms of the Options will be consistent with Company's employee stock option
plan to be implemented by the Company following the Salary Effective Date. In
the event Executive is terminated without Cause, or terminates his employment
for a Good Reason,

                                        2

<PAGE>

all Options shall immediately vest and shall expire unless exercised prior to
the date that is 90 days from the date of termination.

         4.1      WORK PRODUCT AND INVENTIONS. Executive agrees that all
information that has been created, discovered or developed by the Company, its
subsidiaries, affiliates, licensors other than the Executive, licensees,
successors or assigns (collectively, the "Affiliates"), including, without
limitation, information relating to the development of technologies in chiral
chemistry that are created, discovered, developed or made known to the Company
or any of the Affiliates by Executive during the Term and information relating
to the Company's customers, suppliers, Executives, and licensees, and/or in
which property rights have been assigned or otherwise conveyed to the Company or
the Affiliates, shall be the sole property of the Company or the Affiliates, as
applicable, and the Company or the Affiliates, as the case may be, shall be the
sole owner of all patents, copyrights and other rights in connection therewith,
including without limitation the right to make application for statutory
protection. All of the aforementioned information is hereinafter called
"Proprietary Information." By way of illustration, but not limitation,
Proprietary Information includes trade secrets, processes, discoveries,
structures, inventions, designs, ideas, works of authorship, copyrightable
works, trademarks, copyrights, formulas, data, know-how, show-how, improvements,
inventions, product concepts, techniques, information or statistics contained
in, or relating to, marketing plans, strategies, forecasts, blueprints,
sketches, records, notes, devices, drawings, customer lists, patent
applications, continuation applications, continuation-in-part applications, file
wrapper continuation applications and divisional applications and information
about the Company's or the Affiliates' employees and/or Executives (including,
without limitation, the compensation, job responsibility and job performance of
such employees and/or Executives).

         4.2      EXECUTIVE DISCLOSURE. Executive agrees that he will promptly
disclose to the Company, or any persons designated by the Company, all
improvements, inventions, designs, ideas, works of authorship, copyrightable
works, discoveries, trademarks, copyrights, trade secrets, formulas, processes,
structures, product concepts, marketing plans, strategies, customer lists,
techniques, blueprints, sketches, records, notes, devices, drawings, know-how,
data, whether or not patentable, patent applications, continuation applications,
continuation-in-part applications, file wrapper continuation applications and
divisional applications that relate to the business of the Company (collectively
hereinafter referred to as the "Inventions"), made or conceived or reduced to
practice or learned by him, either alone or jointly with others, during the
Term.

         4.3      PROPRIETARY RIGHTS AND EXECUTIVE COOPERATION. Executive agrees
that the Company shall have exclusive, worldwide, royalty-free rights to all
Inventions related to the business of the Company. Such Inventions, if any,
shall be owned exclusively by the Company. The Executive further agrees to
assist the Company in every proper way (but at the Company's expense) to obtain
and from time to time enforce patents, copyrights or other rights on any such
Inventions in any and all countries, and to that end Executive will execute all
documents necessary:

                  (i)      to apply for, obtain and vest in the name of the
Company (unless the Company otherwise directs) letters patent, copyrights or
other analogous protection in any country throughout the world and when so
obtained or vested to renew and restore the same; and

                  (ii)     to defend any opposition proceedings in respect of
such applications and any opposition proceedings or petitions or applications
for revocation of such letters patent, copyright or other analogous protection.

         4.4      CONTINUING INTELLECTUAL PROPERTY OBLIGATIONS. Executive's
obligation to assist the Company in obtaining and enforcing patents and
copyrights for the Inventions in the scope of work as a Executive in any and all
countries shall continue beyond the Term.

                                       3

<PAGE>

         5.       ADDITIONAL BENEFITS.

         During Executive's employment, the Company shall cause Executive to be
covered by all the Company's employee benefit plans, in effect from time to
time, for which Executive is eligible, including without limitation, any
retirement plan or group insurance.

         6.       VACATION.

         Executive shall be entitled to such holidays as are in effect for all
of the Company's employees, and to personal leave in accordance with Company
policy as in effect from time to time. In addition, Executive shall be entitled
twenty (20) business days per year. The timing of such vacation is left to the
discretion of Executive, provided the same is not inconsistent with the
reasonable business requirements of the Company. Vacation days not used by
Executive during a given year may not be accumulated and carried forward to the
subsequent year.

         7.       TERMINATION.

                  7.1      DEATH. If Executive dies during the Term of this
Agreement, Executive's employment hereunder shall terminate upon his death and
all obligations of the Company hereunder shall terminate on such date, except
that Executive's estate or his designated beneficiary shall be entitled to
payment of any unpaid accrued Base Salary through the date of his death.

                  7.2      DISABILITY. If Executive shall be unable to perform a
significant part of his duties and responsibilities in connection with the
conduct of the business and affairs of the Company and such inability lasts for
a period of at least 180 consecutive days by reason of Executive's physical or
mental disability, whether by reason of injury, illness or similar cause,
Executive shall be deemed disabled, and the Company any time thereafter may
terminate Executive's employment hereunder by reason of the disability. During
such 180 day period, the Base Salary and other benefits payable to Executive
hereunder shall not be suspended or diminished. Upon delivery to Executive of
notice to terminate, all obligations of the Company hereunder shall terminate,
except that Executive shall be entitled to payment of any unpaid accrued Base
Salary through the date of termination. The obligations of Executive under
Section 8 hereof shall continue notwithstanding termination of Executive's
employment pursuant to this Section 7.2.

                  7.3      TERMINATION FOR CAUSE. The Company may at any time
during the Term, with fifteen (15) days prior written notice, terminate this
Agreement and discharge Executive for Cause, whereupon the Company's obligation
to pay compensation or other amounts payable hereunder to or for the benefit of
Executive shall terminate on the date of such discharge. As used herein the term
"Cause" shall be deemed to mean and include: (i) a material breach by Executive
of this Agreement including without limitation a breach by Executive of the
obligations set forth in Section 8 hereof; (ii) excessive absenteeism,
alcoholism or drug abuse; (iii) substantial neglect or inattention by Executive
of or to his duties hereunder; (iv) willful violation of specific and lawful
written or oral direction from the Board of Directors of the Company; or (v)
fraud, criminal conduct or embezzlement. The following shall be deemed a
material breach for the purposes of Subsection (i) hereof: (a) the Executive's
conviction for, or a plea of nolo contendere to, a felony or a crime involving
moral turpitude; (b) willful misconduct as an employee of the Company, which is
detrimental to the business of the Company; or (c) willful or reckless disregard
of his responsibilities under this Agreement. The obligations of the Executive
under Section 8 shall continue notwithstanding termination of the Executive's
employment pursuant to this Section 7.3.

                                        4

<PAGE>

                  7.4      (a)      Other than with respect to a Change of
Control occurring on the Salary Effective Date, the Executive's employment
hereunder may be terminated by the Board of Directors of the Company (or its
successor) upon the occurrence of a Change of Control. For purposes of this
Agreement, "CHANGE OF CONTROL" means (i) the acquisition, directly or
indirectly, following the date hereof by any person (as such term is defined in
Section 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended),
in one transaction or a series of related transactions, of securities of the
Company representing in excess of fifty percent (50%) or more of the combined
voting power of the Company's then outstanding securities if such person or his
or its affiliate(s) do not own in excess of 50% of such voting power on the date
of this Agreement, or (ii) the future disposition by the Company (whether direct
or indirect, by sale of assets or stock, merger, consolidation or otherwise) of
all or substantially all of its business and/or assets in one transaction or
series of related transactions (other than a merger effected exclusively for the
purpose of changing the domicile of the Company).

                           (b)      In that the Executive's employment is
terminated as a result of a Change of Control resulting in the Company or its
stockholders receiving at least $50,000,000 in value, then the Company shall (i)
pay the Executive the Base Salary for up to one (1) year and (ii) cause any
unvested options then owned by the Executive to vest immediately and remain
exercisable for 180 days. In addition, at the request of the Executive, the
Board of Directors will reasonably consider releasing the Executive from the
Non-Competition obligations described in section 8.2 below.

                  7.5      The Executive's employment hereunder may be
terminated by the Executive for Good Reason. For purposes of this Agreement,
"GOOD REASON" shall mean any of the following: (i) the assignment to the
Executive of duties inconsistent with the Executive's position, duties,
responsibilities, titles or offices as described herein; (ii) any material
reduction by the Corporation of the Executive's duties and responsibilities; or
(iii) any reduction by the Corporation of the Executive's compensation or
benefits payable hereunder (it being understood that a reduction of benefits
applicable to all employees of the Corporation, including the Executive, shall
not be deemed a reduction of the Executive's compensation package for purposes
of this definition).

         8.       CONFIDENTIALITY; NON-COMPETITION.

                  8.1      CONFIDENTIALITY. The Company and Executive
acknowledge that the services to be performed by Executive under this Agreement
are unique and extraordinary, and, as a result of Executive's employment
hereunder, Executive will be in possession of confidential information and trade
secrets relating to the business and affairs of both the Company and its
clients. Executive agrees that Executive will not, other than in the ordinary
course of business and subject to receipt of an appropriate Confidentiality
Agreement, during or after any term of employment, directly or indirectly use or
disclose to any person, firm or corporation any confidential information
regarding the clients, customers, business practices, products, research
programs of the Company, third parties with whom the Company has confidentiality
obligations, or its clients acquired by Executive during Executive's employment,
unless Executive has obtained the Company's advance written consent specifically
authorizing Executive's disclosure or use thereof.

                  8.2      NON-COMPETITION. Executive agrees that, for a period
beginning with the Effective Date of this Agreement and ending eighteen months
after the date of termination of employment by the Company, Executive will not,
either individually or in conjunction with any person, firm, association,
syndicate, company or corporation, directly or indirectly (as principal, agent,
employee, director, officer, shareholder, partner, independent contractor,
individual proprietor, or as an investor who has made advances, loans or
contributions to capital, or in any other manner whatsoever) compete with
company in the business then conducted by Company. Executive also agrees that,
during such period, Executive will not solicit or encourage any persons who,
during such period, were employees of

                                        5

<PAGE>

Company to (i) terminate such persons' employment with Company; or (ii) become
affiliated with any person, firm, association, syndicate, company or corporation
which is in a business similar to that of the Company and in which Executive,
either directly or indirectly, has an interest.

                  8.3      ANTI-RAIDING. Executive agrees that during the term
of his employment hereunder, and, thereafter for a period of eighteen months,
Executive will not, as principal, agent, employee, employer, consultant,
director or partner of any person, firm, corporation or business entity other
that the Company, or in any individual or representative capacity whatsoever,
directly or indirectly, without the prior express written consent of the Company
approach, counsel or attempt to induce any person who is then in the employ of
the Company to leave the employ of the Company or employ or attempt to employ
any such person or persons who at any time during the preceding twelve months
was in the employ of the Company.

                  8.4      INJUNCTION. Executive acknowledges and agrees that,
because of the unique and extraordinary nature of his services, any breach or
threatened breach of any of the above provisions of this Section 8 hereof will
cause the Company irreparable injury and incalculable harm and, therefore, the
Company will have "no adequate remedies at law". Executive, therefore, agrees in
advance that Company shall be entitled to injunctive and other equitable relief
for such breach or threatened breach and that resort by the Company to such
injunctive or other equitable relief shall not be deemed to waive or to limit in
any respect any right or remedy which the Company may have with respect to such
breach or threatened breach. The Executive agrees that in such action, if the
Company makes a prima facie showing that Executive has violated or apparently
intends to violate any of the provisions of this Section 8, the Company need not
prove either damage or irreparable injury in order to obtain injunctive relief.
The Company and Executive agree that any such action for injunctive or equitable
relief shall be heard in a state or federal court situated in the State of New
York and each of the parties hereto agrees to accept service of process by
registered mail and to otherwise consent to the jurisdiction of such courts.

                  8.5      SEVERABILITY. If any provision contained within this
Section 8 is found to be unenforceable by reason of the extent, duration or
scope thereof, or otherwise, then such restriction shall be enforced to the
maximum extent permitted by law, and Executive agrees that such extent, duration
or scope may be modified in any proceeding brought to enforce such restriction.

         9.       NO MITIGATION. You will not be required to mitigate the amount
of any payment or benefit provided for in this agreement by seeking other
employment or otherwise, and there will be no offsets against amounts due you
under this Agreement on account of any remuneration attributable to any
subsequent employment that you may obtain.

         10.      ARBITRATION.

         Except with respect to any proceeding brought under Section 8 hereof,
any controversy, claim, or dispute between the parties, directly or indirectly,
concerning this Employment Agreement or the breach hereof, or the subject matter
hereof, including questions concerning the scope and applicability of this
arbitration clause, shall be finally settled by arbitration in the State of New
York pursuant to the rules then applying of the American Arbitration
Association, JAMS or such other association as may be mutually agreed upon by
the parties. The arbitrators shall consist of one representative selected by the
Company, one representative selected by the Executive and one representative
selected by the first two arbitrators. The parties agree to expedite the
arbitration proceeding in every way, so that the arbitration proceeding shall be
commenced within thirty (30) days after request therefore is made, and shall
continue thereafter, without interruption, and that the decision of the
arbitrators shall be handed down within thirty (30) days after the hearings in
the arbitration proceedings are closed. The arbitrators shall have the right and
authority to assess the cost of the arbitration proceedings and to determine how
their decision or

                                        6

<PAGE>

determination as to each issue or matter in dispute may be implemented or
enforced. The decision in writing of any two of the arbitrators shall be binding
and conclusive on all of the parties to this Agreement. Should either the
Company or the Executive fail to appoint an arbitrator as required by this
Section 10 within thirty (30) days after receiving written notice from the other
party to do so, the arbitrator appointed by the other party shall act for all of
the parties and his decision in writing shall be binding and conclusive on all
of the parties to this Agreement. Any decision or award of the arbitrators shall
be final and conclusive on the parties to this Agreement; judgment upon such
decision or award may be entered in any competent Federal or state court located
in the United States of America; and the application may be made to such court
for confirmation of such decision or award for any order of enforcement and for
any other legal remedies that may be necessary to effectuate such decision or
award.

         11.      NOTICES.

         All notices, requests, consents and other communications required or
permitted to be given hereunder, shall be in writing and shall be deemed to have
been duly given if delivered personally or sent by facsimile or mailed
first-class, postage prepaid, by registered or certified mail (notices sent by
mail shall be deemed to have been given on the date sent), to the parties at
their respective addresses hereinabove set forth or to such other address as
either party shall designate by notice in writing to the other in accordance
herewith. Copies of all notices shall be sent to each party at the address first
set forth above; provided, however, that the Company shall provide notice to the
Executive by delivering notice to:

Steven Eckhaus
Eckhaus & Olson
230 Park Avenue
New York, NY 10169-2525
(212) 986-6200 tel
(212) 661-2153 fax
sge@eckhausolson.com

         12.      GENERAL.

                  12.1     GOVERNING LAW. This Agreement shall be governed by
and construed and enforced in accordance with the local laws of the State of New
York applicable to agreements made and to be performed entirely in New York.

                  12.2     CAPTIONS. The section headings contained herein are
for reference purposes only and shall not in any way affect the meaning or
interpretation of this Agreement.

                  12.3     ENTIRE AGREEMENT. This Agreement sets forth the
entire agreement and understanding of the parties relating to the subject matter
hereof, and supersedes all prior agreements, arrangements and understandings,
written or oral, relating to the subject matter hereof. No representation,
promise or inducement has been made by either party that is not embodied in this
Agreement, and neither party shall be bound by or liable for any alleged
representation, promise or inducement not so set forth.

                  12.4     SEVERABILITY. If any of the provisions of this
Agreement shall be unlawful, void, or for any reason, unenforceable, such
provision shall be deemed severable from, and shall in no way affect the
validity or enforceability of, the remaining portions of this Agreement.

                  12.5     WAIVER. The waiver by any party hereto of a breach of
any provision of this Agreement by any other party shall not operate or be
construed as a waiver of any subsequent breach of the same provision or any
other provision hereof.

                                        7

<PAGE>

                  12.6     COUNTERPARTS. This Agreement may be executed in one
or more counterparts, each of which shall be deemed an original, but all of
which taken together shall constitute one and the same Agreement.

                  12.7     ASSIGNABILITY. This Agreement, and Executive's rights
and obligations hereunder, may not be assigned by Executive. The Company may
assign its rights, together with its obligations, hereunder in connection with
any sale, transfer or other disposition of all or substantially all of its
business or assets; in any event the rights and obligations of the Company
hereunder shall be binding on its successors or assigns, whether by merger,
consolidation or acquisition of all or substantially all of its business or
assets.

                  12.8     AMENDMENT. This Agreement may be amended, modified,
superseded, canceled, renewed or extended and the terms or covenants hereof may
be waived, only by a written instrument executed by both of the parties hereto,
or in the case of a waiver, by the party waiving compliance. No superseding
instrument, amendment, modification, cancellation, renewal or extension hereof
shall require the consent or approval of any person other than the parties
hereto. The failure of either party at any time or times to require performance
of any provision hereof shall in no matter affect the right at a later time to
enforce the same. No waiver by either party of the breach of any term or
covenant contained in this Agreement, whether by conduct or otherwise, in any
one or more instances, shall be deemed to be, or construed as, a further or
continuing waiver of any such breach, or a waiver of the breach of any other
term or covenant contained in this Agreement.

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

CHIRAL QUEST, LLC                           ALAN ROTH

By: /s/ Michael Weiser                      By: /s/ Alan Roth
    ------------------------                    -------------------------------
Name:  Michael Weiser, M.D.                 Name: Alan Roth
Title: President

                                        8<PAGE>

                                                                    EXHIBIT 10.2

                                LICENSE AGREEMENT
                      (as amended through December 3, 2002)

         This Agreement, effective upon the EFFECTIVE DATE (as defined herein
below), by and between The Penn State Research Foundation (hereinafter referred
to as "PSRF"), a non-profit corporation duly organized and existing under the
laws of the Commonwealth of Pennsylvania and having an office at 304 Old Main,
University Park, PA 16802, and Chiral Quest, LLC (hereinafter referred to as
"LICENSEE"), having its principal office at 149 West Fairmount Avenue, State
College, PA 16801.

                                   WITNESSETH

         WHEREAS, Dr. Xumu Zhang, et al. (the "INVENTORS"), employees of The
Pennsylvania State University (the "UNIVERSITY"), have made a series of
inventions related to asymmetric catalysis technology (collectively referred to
as the "INVENTIONS" and defined in Appendix A);

         WHEREAS, PSRF is dedicated to fostering and advancing scientific
research within the Commonwealth of Pennsylvania and, in particular, within the
UNIVERSITY and is responsible for developing inventions, made by employees of
the UNIVERSITY by evaluating invention disclosures, pursuing patents and
licensing patents which are obtained thereon;

         WHEREAS, PSRF desires to have the INVENTIONS, together with any patents
that may issue thereon, utilized in the public interest;

         WHEREAS, PSRF is the owner of and has the right to license certain
patents and patent applications and technical information relating to the
INVENTIONS;

         WHEREAS, LICENSEE is a for profit, private corporation established to
develop the commercial potential of the INVENTIONS;

         WHEREAS, Xumu Zhang, a current employee of the UNIVERSITY, and also an
inventor of the LICENSED PATENTS (as defined hereinbelow), now holds or shall
shortly acquire an equity position in LICENSEE and has executed a Conflict
Avoidance Statement, which is attached hereto as Appendix B, and a Waiver of
participation in the UNIVERSITY's institutional equity share, which is attached
hereto as Appendix C;

         WHEREAS, PSRF is accepting equity in lieu of royalties and the
UNIVERSITY 's Vice President for Research has granted approval.

         NOW, THEREFORE, the parties hereto, in consideration of the mutual
covenants and promises set forth in this License Agreement, and with intent to
be legally bound, agree as follows:

                             ARTICLE 1 -DEFINITIONS

         For purposes of this License Agreement, the following words and phrases
shall have the following meanings:

                                        1

<PAGE>

         1.1.     "LICENSEE" shall mean Chiral Quest, LLC.

         1.2.     "LICENSED PATENTS" shall mean all of the following PSRF
                  Property:

                  1.2.1.      The following United States patent and/or patent
                              applications covering INVENTIONS, including:

                              1.2.1.1. U.S. Patent Application No. 09/377,065,
                                       filed on August 19, 1999;

                              1.2.1.2. U.S. Provisional Patent Application No.
                                       60/141,795, filed on June 30, 1999;

                              1.2.1.3. U.S. Provisional Patent Application No
                                       60/150,375, filed on August 23, 1999;

                              1.2.1.4. U.S. Provisional Patent Application No
                                       60/154,845, filed on September 20, 1999;

                              1.2.1.5. U.S. Provisional Patent Application No
                                       60/164,508, filed on November 10, 1999;

                              1.2.1.6. U.S. Provisional Patent Application No
                                       60/165,649, filed on November 15, 1999;

                              1.2.1.7. Intentionally omitted;

                              1.2.1.8. U.S. Provisional Patent Application No
                                       60/181,448, filed on February 10, 2000;

                              1.2.1.9. Intentionally omitted;

                              1.2.1.10. U.S. Provisional Patent Application No
                                      60/187,851, filed on March 8, 2000;

                              1.2.1.11. U.S. Provisional Patent Application No
                                      60/214,167, filed on June 23, 2000.

                              1.2.1.12 U.S. Provisional Patent Application No.
                                      60/249,537, filed on November 17, 2000.

                  1.2.2.      Any conversions, reissues, extensions, divisional
                              applications, continuations, continuations-in-part
                              of the patent applications described in 1.2.1
                              above, and any patents issuing thereon;

                  1.2.3.      Claims of all foreign counterpart applications
                              described in 1.2.1 and 1.2.2 above, and the
                              resulting patents thereon, in those foreign
                              countries from which LICENSEE has elected
                              exclusive license rights, and for which it has
                              directly reimbursed PSRF for all reasonable costs
                              incurred in obtaining, maintaining, and defending
                              said rights pursuant to Article VI of this
                              Agreement. Exclusive foreign

                                       2

<PAGE>

                              license rights in any particular country or
                              territory shall be subject to termination pursuant
                              to Article XII in the event LICENSEE notifies PSRF
                              that it no longer wishes to pay for the costs of
                              prosecuting applications or maintaining patents in
                              particular countries.

         1.3. "LICENSED PROCESSES" shall mean any process activities utilized
which are covered in whole or in part by a claim of LICENSED PATENTS or involves
TECHNICAL INFORMATION.

         1.4. "LICENSED PRODUCTS" shall mean any product or part thereof which
(i) is covered in whole or in part by an issued, unexpired claim or a pending
claim contained in the LICENSED PATENTS in the country in which any such product
or part thereof is made, used or sold, (ii)is manufactured by using a process or
is employed to practice a process which is covered in whole or in part by an
issued, unexpired claim or a pending claim contained in the LICENSED PATENTS in
the country in which any LICENSED PROCESSES are used or in which such product or
part thereof is used or sold, or (iii) is covered by TECHNICAL INFORMATION.

         1.5. "TECHNICAL INFORMATION" shall mean all technical information,
know-how, compositions, formulations, specifications, processes, techniques and
data which are not readily available to others through public means and which
are not the subject of an issued or pending patent claim in a country in which
LICENSED PRODUCTS or LICENSED PROCESSES are manufactured, sold or employed
relative to the practice of the INVENTION.

         1.6. "TERRITORY" shall mean the entire world.

         1.7. "GROSS REVENUES" shall mean the following revenues received by
LICENSEE:

              1.7.1. Revenue received for performing commercial research and
              development activities related to LICENSED PRODUCTS and/or
              LICENSED PROCESSES.

              1.7.2. Revenue received for the commercial sale, lease, or
              transfer of LICENSED PRODUCTS and LICENSED PROCESSES produced
              hereunder. LICENSED PRODUCTS shall be considered "sold" when
              invoiced.

              1.7.3.Revenue received by LICENSEE as payment under sublicensing
              agreements, including, but not limited to, sublicensing fees,
              milestone payments, or royalties in consideration of license
              rights granted to sublicensees for LICENSED PRODUCT and/or
              LICENSED PRODUCTS.

         1.8.     "IMPROVEMENTS" shall mean new technology, patentable or
unpatentable, which is: (a) conceived and reduced to practice by LICENSEE or by
the UNIVERSITY as a result of LICENSEE having access to the LICENSED PATENTS and
TECHNICAL INFORMATION and (b) directly related to the LICENSED PATENTS and/or
TECHNICAL INFORMATION (including patentable and unpatentable inventions of the
UNIVERSITY) in the sense that practice of the IMPROVEMENTS would be dominated by
the LICENSED PATENTS and/or the TECHNICAL INFORMATION.

         1.9.     "INTELLECTUAL PROPERTY " shall mean inventions and/or
discoveries made in the field of Asymmetric Catalysis Technology and resulting
in invention disclosures, patents, patent

                                       3

<PAGE>

applications, divisions, continuations, or substitutions of such applications
and all reissues thereof upon which Xumu Zhang is named as an inventor.

         1.10.    "EFFECTIVE DATE" shall mean the date upon which the LLC
Buy-Sell Agreement, which is attached hereto as Appendix D, is executed by both
parties.

                             ARTICLE II -THE LICENSE

         2.1.     PSRF hereby grants to LICENSEE the exclusive right and license
in the TERRITORY, with the right to sublicense, to LICENSED PATENTS and
TECHNICAL INFORMATION and to make, have made, use, lease, and sell LICENSED
PRODUCTS and to practice the LICENSED PROCESSES and TECHNICAL INFORMATION for
the term set forth herein, unless this License Agreement shall be earlier
terminated according to the terms and conditions contained herein.

         2.2.     The license granted hereunder shall not be construed to confer
any rights upon LICENSEE by implication, estoppel, or otherwise as to any
technology not specifically set forth herein.

         2.3.     PSRF reserves the rights for itself and the UNIVERSITY to
practice under the LICENSED PATENTS, LICENSED PRODUCTS, LICENSED PROCESSES,
TECHNICAL INFORMATION, and IMPROVEMENTS for their own noncommercial research
purposes. This right does not include the material transfer of LICENSED PRODUCTS
from PSRF to third parties which may without the prior written consent of
LICENSEE.

         2.4.     In the event UNIVERSITY makes any IMPROVEMENTS during the this
License Agreement, PSRF warrants that the license granted to LICENSEE herein
shall extend to such IMPROVEMENTS. In the event LICENSEE during the term of this
License Agreement develops IMPROVEMENTS, LICENSEE shall make a full disclosure
thereof to PSRF. All IMPROVEMENTS All made by LICENSEE shall be licensed to PSRF
on a royalty free basis. Such license to PSRF shall be non-exclusive and only
for non-commercial research purposes no rights to sublicense.

                   ARTICLE III -FUTURE INTELLECTUAL I PROPERTY

         3.1.     PSRF also grants to LICENSEE the right of first refusal to add
to the license granted herein to LICENSED PATENTS TECHNICAL INFORMATION any
INTELLECTUAL PROPERTY developed within two (2) years of the Effective Date of
this Agreement. It is understood that this right of first refusal is superceded
by rights, if any, that may be granted by UNIVERSITY discretion to any
INTELLECTUAL PROPERTY arising from sponsored research. PSRF also grants to
LICENSEE the right of first refusal add to the license granted herein to
LICENSED PATENTS and TECHNICAL INFORMATION any INTELLECTUAL PROPERTY that
becomes licensing by PSRF during the term of this License Agreement due to
termination of any License Agreement in effect as of the Effective Date of this
Agreement with any third party. LICENSEE may exercise this right without any
additional consideration other than that provided for herein.

         3.2.     PSRF will promptly disclose to LICENSEE in writing any
INTELLECTUAL PROPERTY subject to LICENSEE's right of first refusal in Paragraph
3.1 in sufficient detail for LICENSEE to assess its interest in licensing the
technology. In the event LICENSEE exercises this

                                        4

<PAGE>

right, Paragraph 1.2.1 and Appendix A shall be amended to include such
INTELLECTUAL PROPERTY. LICENSEE shall advise PSRF as to its election of
additional LICENSED PATENTS and TECHNICAL INFORMATION available for licensing
within sixty (60) days of notice from PSRF. The period during which PSRF grants
to LICENSEE the right of first refusal to add INTELLECTUAL PROPERTY to LICENSED
PATENTS and TECHNICAL INFORMATION may be extended beyond two (2) years from the
Effective Date of this Agreement by mutual written agreement.

                  3.2.1.   In the event that INTELLECTUAL PROPERTY elected by
                  LICENSEE has not been the subject of a U.S. patent or patent
                  application:

                           3.2.1.1. PSRF shall promptly file and prosecute
                           patent applications, using counsel of PSRF's choice
                           after due consultation with LICENSEE. PSRF shall keep
                           LICENSEE advised as to all developments with respect
                           to application(s) and shall promptly supply copies of
                           all patent application documentation produced,
                           received or filed in connection with the prosecution
                           in sufficient time for LICENSEE to comment.
                           LICENSEE's comments shall be taken into
                           consideration. LICENSEE shall reimburse PSRF for all
                           out-of-pocket costs incurred in connection with such
                           preparation, filing, and prosecution of patent(s).

                           3.2.1.2. Within nine (9) months of the filing date of
                           a U. S. patent application, LICENSEE shall provide to
                           PSRF a written list of foreign countries in which
                           applications should be filed. If LICENSEE elects to
                           discontinue financial support of any patent
                           prosecution, in any country, PSRF shall be free to
                           continue prosecution at PSRF's expense. In such
                           event, PSRF shall have no further obligation to
                           LICENSEE in regard to such patent applications or
                           patents.

                  3.2.2. In the event that INTELLECTUAL PROPERTY elected by
                  LICENSEE is the subject of a U.S. patent or patent
                  application, including any reissues, extensions, divisionals,
                  continuations, continuations-in-part, and foreign
                  counterparts, PSRF shall continue the prosecution and
                  maintenance of said patents and/or patent applications.
                  LICENSEE shall reimburse PSRF for all out-of-pocket costs
                  incurred in connection with such prosecution and maintenance
                  from the date of election by LICENSEE.

         3.3.     In the event that LICENSEE does not exercise its option to
license INTELLECTUAL PROPERTY under the conditions contained in this Article,
PSRF shall have the right to negotiate in good faith with one or more third
parties a license to such INTELLECTUAL PROPERTY.

                               ARTICLE IV -PAYMENT

         4.1      In partial consideration for the rights granted by this
License Agreement, LICENSEE shall issue to UNIVERSITY non-voting member units of
LICENSEE equivalent to a ten percent (10%) economic interest in LICENSEE upon
the EFFECTIVE DATE of this License Agreement, pursuant to the LLC Buy-Sell
Agreement and LLC Operating Agreement for LICENSEE, which are attached as
Appendix D and Appendix E respectively. Said economic interest shall be
protected against dilution through the acquisition of unrestricted capital
pursuant to paragraph 5.3.1 and until such point as LICENSEE must acquire more
capital.

                                        5

<PAGE>

                            ARTICLE V -DUE DILIGENCE

         5.1      LICENSEE shall use reasonable efforts to bring one or more
LICENSED PRODUCTS and/or LICENSED PROCESSES to market through a thorough and
diligent program for exploitation of the LICENSED PATENTS. The scope of said
efforts shall be set forth in the executive summary of a business plan referred
to in Paragraph 5.2.

         5.2.     LICENSEE shall deliver to PSRF within ninety (90) days from
the Effective of this License Agreement an executive summary of a business plan
setting forth the amount of money, number and qualifications of personnel, and
time, and planned for each phase of the development of the LICENSED PATENTS and
the LICENSED PRODUCTS, and a final business plan ninety (90) days thereafter,
said final business plan summary to be revised and updated as determined by
LICENSEE. Upon request from PSRF, LICENSEE shall provide a brief executive
summary of LICENSEE's efforts hereunder. LICENSEE agrees to consider, but is not
obligated to accept, any comments or suggestions provided by PSRF.

         5.3.     In addition to the obligations of Paragraphs 5.1 and 5.2,
LICENSEE shall best efforts to achieve to the following milestones:

                  5.3.1. In calendar year 2004, LICENSEE shall have annual GROSS
                  REVENUE of at least two hundred fifty thousand dollars
                  ($250,000);

                  5.3.2. In calendar year 2005, LICENSEE shall have annual GROSS
                  REVENUE of at least three hundred fifty thousand dollars
                  ($350,000); and

                  5.3.3. In calendar year 2006, LICENSEE shall have annual GROSS
                  REVENUE of at least five hundred thousand dollars ($500,000).

         5.4.     LICENSEE's failure to perform in accordance with Paragraph 5.3
above shall be grounds for PSRF to terminate pursuant to Article X II hereof.

         5.5.     In the event LICENSEE in its sole discretion decides to market
a LICENSED PRODUCTS in any country, then LICENSEE shall exert reasonable efforts
to have such LICENSED PRODUCTS cleared for marketing by the responsible
government agencies of that country requiring such clearance. Should LICENSEE
terminate this License Agreement, LICENSEE agrees to assign its full right,
title, and interest in and to such market clearance application, including all
data relating thereto, to PSRF at no cost to PSRF.

                               ARTICLE VI -PATENTS

         6.1.     PSRF shall apply for, seek prompt issuance of, and maintain
the LICENSED PATENTS during the term of this Agreement. The prosecution, filing
and maintenance of U.S. patent applications and patents which issue therefrom
shall be the primary responsibility of PSRF, or its designee, but wherever
LICENSEE shall be given the opportunity to review and comment upon the breadth
and coverage of said patent applications. LICENSEE shall be to reimburse PSRF
for all reasonable and ordinary fees and external costs relating to the filing,
prosecution, maintenance and defense of said LICENSED PATENTS pursuant to the
conditions set forth herein. PSRF shall promptly provide copies of invoices for
all such expenses and LICENSEE shall make payment

                                        6

<PAGE>

thereof within thirty (30) days of its receipt, provided LICENSEE is kept
reasonably informed and given advance estimates where practical. PSRF shall make
all reasonable efforts to ensure that said patent application(s) adequately
addresses the commercial and business needs of LICENSEE, as communicated by
LICENSEE hereunder. After appropriate consultation with LICENSEE, PSRF shall
choose appropriately qualified patent counsel.

         6.2.     LICENSEE understands and agrees that the primary
responsibility for the costs of all foreign patent filings shall be LICENSEE's,
and that LICENSEE's failure to timely communicate its decision regarding foreign
filing and payment will result in a loss or rights to LICENSEE. LICENSEE shall
notify PSRF later than three (3) months before applicable bar dates, as to the
foreign countries in which it wishes PSRF to continue to seek patent protection.
Payment of all fees and costs relating to the filing, prosecution, maintenance
and defense of said foreign patent rights shall be the direct responsibility of
LICENSEE, LICENSEE is kept reasonably informed and given advance estimates
practical. If LICENSEE does not within thirty (30) days of receipt of estimated
costs related to the filing and prosecution of said foreign patent rights
provide advanced payment thereof, LICENSEE agrees therein that said non-payment
shall constitute a binding waiver of any right to obtain said foreign protection
and LICENSEE holds PSRF harmless from any claim based thereon.

LICENSEE and PSRF agree that any discrepancy between the payments made by
LICENSEE and the actual out-of-pocket expenses incurred by PSRF will be
addressed as follows:

         i.)      In the event that the advanced payment made by LICENSEE is
                  than the total actual out-of-pocket expenses incurred by PSRF,
                  PSRF will, within thirty (30) days of receipt of actual
                  expenses, provide LICENSEE with an accounting of said actual
                  expenses and will reimburse LICENSEE in the amount of the
                  discrepancy;

         ii)      In the event that the advanced payment made by LICENSEE is
                  less than the total actual out-of-pocket expenses incurred by
                  PSRF, PSRF will provide LICENSEE with an accounting of said
                  actual expenses and LICENSEE shall make payment in the amount
                  of the discrepancy within thirty (30) days of receipt of said
                  actual expenses.

         6.3.     In the event LICENSEE elects not to pursue patent protection
in any specific country or region of the world, PSRF may seek such protection
on its own behalf and cost in that specific country and/or region of the world.
At such time, agrees to notify LICENSEE in writing of those countries, which
PSRF seeks to protect. LICENSEE shall have thirty (30) days to respond in
writing whether it wishes to license said patent rights under the terms and
conditions contained herein. If LICENSEE declines, PSRF lines, shall be free and
clear to license said patent rights to third parties.

         6.4.     LICENSEE's failure to make payments in accordance with
Paragraph 6.1 and 6.2 shall constitute a material breach or default and shall be
grounds for termination of this License Agreement pursuant to Article XII
hereof.

                          ARTICLE VII -EXPORT CONTROLS

         7.1.     It is understood that PSRF is subject to United States laws
and regulations controlling the export of technical data, computer software,
laboratory prototypes and other commodities, and that its obligations hereunder
are contingent on compliance with applicable United States export and laws
regulations. The transfer of certain technical data and commodities may require
a license from

                                        7

<PAGE>

the cognizant agency of the United States Government and written assurances by
LICENSEE that LICENSEE shall not export data or commodities to certain foreign
countries without prior approval of such agency. PSRF neither represents that a
license shall not be required nor that, if required, it shall be issued.
LICENSEE shall be responsible for payment of all reasonable cost attendant to
securing said licenses.

                        ARTICLE VIII -REPORTS AND RECORDS

         8.1.     LICENSEE shall keep and preserve complete and accurate books,
records and accounts relating to the manufacture, use and sale of LICENSED
PRODUCTS accordance with generally accepted accounting principles and
procedures. PSRF including, its designated accountants, attorneys, agents and
other representatives, shall have the right to examine, inspect and audit the
books, and records and accounts kept and preserved by LICENSEE, for a period of
five (5) years following the end of the calendar year to which they pertain, to
verify the business activity with respect to the due diligence requirements of
Paragraph 5.3 hereof. All such examinations, inspections and audits shall be
made by PSRF, or its designated accountants, attorneys, agents or other
representatives at reasonable times and places during business hours.

         8.2.     LICENSEE, within sixty (60) days after December 31, of each
year, shall deliver to PSRF true and accurate reports, giving such particulars
of the business conducted under LICENSEE during the preceding twelve (12) month
period under this License Agreement. These shall include a detailed accounting
of GROSS REVENUES received by LICENSEE for all LICENSED PRODUCTS and LICENSED
PROCESSES.

                              ARTICLE IX -WARRANTY

         9.1.     PSRF warrants and represents that it has the full right and
power to grant the License set forth in Article II hereof, and shall take no
action to negate such right and power, and further warrants and represents that
there are no outstanding agreements, assignments, or encumbrances inconsistent
with the provisions of this License Agreement. EXCEPT AS OTHERWISE EXPRESSLY SET
FORTH IN THIS AGREEMENT, PSRF MAKES NO REPRESENTATIONS AND EXTENDS NO WARRANTIES
OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES
OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND VALIDITY OR
NON-INFRINGEMENT OF PATENT RIGHT CLAIMS WHICH ARE ISSUED OR PENDING RELATIVE TO
LICENSE D PATENTS/INVENTION.

         9.2.     PSRF further represents that, as of the Effective Date of this
License Agreement, it has no knowledge that the LICENSED PRODUCTS and TECHNICAL
INFORMATION would infringe upon any issued patent.

                             ARTICLE X -INFRINGEMENT

         10.1.    LICENSEE and PSRF shall promptly provide written notice, to
the other party, of any alleged infringement by a third party of any patent
licensed hereunder under LICENSED PATENTS and provide such other party with any
available evidence of such infringement.

         10.2.    During the term of the License Agreement, PSRF shall have the
initial right, but not the obligation, to prosecute and/or defend, at its own
expense and utilizing counsel of its choice, any

                                        8

<PAGE>

infringement of, and/or challenge to, the LICENSED PATENTS. In furtherance of
such right, LICENSEE hereby agrees that PSRF may join LICENSEE as a party in any
such suit, without expense to LICENSEE. The total cost of any such action,
commenced or defended solely by PSRF, shall be borne by PSRF. Any recovery or
damages derived therefrom shall be divided equally between PSRF and LICENSEE
after subtracting PSRF's expenses and legal fees relating to such action.

         10.3.    If within three (3)months after having been notified of any
alleged infringement, PSRF shall have been unsuccessful in persuading the
alleged infringer to desist and shall not have brought and shall not be
diligently prosecuting an infringement action, or if PSRF shall notify LICENSEE
at any time prior thereto of its intention not to bring suit against any alleged
infringer in the TERRITORY, and in those events only, LICENSEE shall have the
right, but not the obligation, at its own expense and utilizing counsel of its
choice, to prosecute any infringement of, and/or defend any challenge to, the
LICENSED PATENTS, and LICENSEE may, for such purposes, join PSRF as a party
plaintiff; provided, however, that such right to bring such an infringement
action shall remain in effect only for so long as the license granted herein
remains exclusive. No settlement, consent judgment or other voluntary, final
disposition of the suit may be entered into without the, consent of PSRF, which
consent shall be timely and not unreasonably withheld. LICENSEE agrees to keep
PSRF reasonably informed as to the status of any such action and to provide
copies to PSRF, upon request by PSRF, of any papers or information relevant to
the prosecution of any such action. LICENSEE shall timely inform PSRF of any
offer for settlement presented by a third party for any such action and LICENSEE
shall consider PSRF's input in deciding whether or not to accept any such
settlement offer. The total cost of any such action commenced or defended solely
by LICENSEE shall be borne by LICENSEE.

         10.4.    In the event that LICENSEE shall undertake the enforcement
and/or defense of the LICENSED PATENTS, as provided in Paragraph 10.2 and 10.3,
any recovery of damages by LICENSEE for each such suit shall be applied first in
satisfaction of any unreimbursed expenses and legal fees of LICENSEE relating to
such suit. The balance remaining from any such recovery shall be divided equally
between LICENSEE and PSRF.

         10.5.    In the event that a declaratory judgment action alleging
invalidity or noninfringement of any of the LICENSED PATENTS shall be brought
against LICENSEE, PSRF, at its option, shall have the right, within (30) days
after commencement of such action, to intervene and take over the sole defense
of the action at its own expense.

         10.6.    In any infringement suit as either party may institute to
enforce the LICENSED PATENTS pursuant to this License Agreement, the other party
hereto shall, at the request and expense of the party initiating such suit,
cooperate in all respects and, to the extent possible, have its employees
testify when requested and make available relevant records, papers, information,
samples, specimens, and the like.

         10.7.    LICENSEE, during the exclusive period of this License Agree
shall have the sole rights in accordance with the terms and conditions
sublicense herein to any alleged infringer in the TERRITORY for future use of
the LICENSED PATENTS. Any upfront fees as part of such sublicense shall be
shared equally between LICENSEE and PSRF.

                                       9

<PAGE>

                           ARTICLE XI -INDEMNIFICATION

         11.1.    LICENSEE shall indemnify and hold harmless PSRF and
UNIVERSITY, its officers and employees from and against any liability or cost
which may arise be asserted, based directly or indirectly, upon death or injury
or damage of kind to any person or property, including product liability claims,
arising out the sale of the LICENSED PRODUCTS by LICENSEE, its sub-licensees or
other assigns, including reasonable attorneys' fees and other costs of defense,
except that this indemnification shall not apply to claims, losses and
liabilities arising out of what is determined by a court of competent
jurisdiction to be gross negligence or willful misconduct of PSRF or UNIVERSITY,
its officers or employees. As a condition of any obligation hereunder, PSRF and
UNIVERSITY shall give prompt written notice to LICENSEE of any claim of which it
is or shall become aware that may be subject to indemnification hereunder, and
LICENSEE shall assume the defense thereof, including the employment of counsel
reasonably satisfactory to PSRF and UNIVERSITY. PSRF and UNIVERSITY shall have
the right to employ separate counsel in any such action and to participate in
the defense thereof, but the fees and expenses thereof shall be at PSRF 's
and/or UNIVERSITY 's expense.

                        ARTICLE XII -TERM AND TERMINATION

         12.1.    The License Agreement shall commence on the Effective Date and
shall continue until the end of the life of the last of LICENSED PATENTS. In the
case of TECHNICAL INFORMATION, the term of this License Agreement shall be for
a period of fifteen (15) years from the Effective Date.

         12.2.    If LICENSEE shall cease to carry on its business, this License
Agreement terminate upon notice by PSRF.

         12.3.    Should LICENSEE fail to make any payment due and payable to
PSRF hereunder, PSRF shall have the right to terminate the License Agreement on
a three (3) month written notice, unless LICENSEE shall pay PSRF within said
three (3) month period all such payments together in with any interest due. Upon
the expiration of the three (3) month period, if LICENSEE shall not have paid
all such payments to PSRF, the rights, privileges and license granted hereunder
shall automatically terminate.

         12.4.    Upon any material breach or default of this License Agreement
by LICENSEE, PSRF shall have the right to terminate this License Agreement and
the rights, privileges and license granted hereunder by a three (3) months
written notice to LICENSEE. Such termination shall become immediately effective
upon the expiration of said three (3) month notice unless LICENSEE shall have
cured, to the satisfaction of PSRF, any such breach or default prior thereto, or
has demanded resolution under Article XV prior thereto.

         12.5.    LICENSEE shall have the right to terminate the License
Agreement at any time by three (3) month notice to PSRF, and upon payment of all
amounts due PSRF through the effective date of the termination.

         12.6.    Upon termination of the License Agreement for any reason,
nothing herein shall be construed to release LICENSEE from any obligation that
matured prior to the effective date of such termination; and the respective
articles I, __, VII, this clause, XIV, XVI, XVIII shall survive any such
termination. LICENSEE and any sublicensees thereof may, however, after the
effective date of such termination, sell all LICENSED PRODUCTS, and complete
LICENSED PRODUCTS in the process of manufacture at the time of such termination
and sell the same.

                                       10

<PAGE>

             ARTICLE XIII -PAYMENT, NOTICES AND OTHER COMMUNICATIONS

         13.1     Any payment, notice, or other communication required or
permitted to be made or given to either party hereto pursuant to this License
Agreement shall be sufficiently made or given on the date of mailing if sent to
such party by certified or registered first class mail, postage prepaid,
addressed to it at its address set forth below, or to such other address as it
shall designate by written notice to the other party as follows:

                  If to LICENSEE: President
                           Chiral Quest, LLC
                           149 West Fairmount Avenue
                           State College, PA 16801

                  If to PSRF: President
                           The Penn State Research Foundation
                           c/o Intellectual Property Office
                           113 Technology Center
                           University Park, PA 16802

                             ARTICLE XIV -INSURANCE

         14.1.    Prior to first Commercial Sale, LICENSEE shall obtain and
maintain products liability insurance covering the risk of claims, liabilities,
expenses and judgments for which it has agreed in Article XI of this Agreement
to indemnify PSRF and UNIVERSITY. Coverage shall be in an amount which is not
less than $1,000,000 (One Million Dollars) per occurrence. Both parties agree
that adequate evidence of the required coverage has or will be provided by
LICENSEE to Penn State's Intellectual Property Office, 113 Technology Center,
University Park, PA 16802-7000, and LICENSEE agrees to keep said office informed
of any changes in coverage or carriers.

                         ARTICLE XV -DISPUTE RESOLUTION

         15.1.    Except for the right of either party to apply to a court of
competent jurisdiction for a temporary restraining order, a preliminary
injunction, or other equitable relief to preserve the status quo or prevent
irreparable harm, any and all claims, disputes or controversies arising under,
out of, or in connection with this License Agreement, including any dispute
relating to patent validity or infringement, which the parties shall be unable
to resolve within sixty (60) days, shall be mediated in good faith. The party
raising such dispute shall promptly advise the other party of such claim,
dispute or controversy in a writing which describes in reasonable detail the
nature of such dispute. By not later than five (5) business days after the
recipient has received such notice of dispute, each party shall have selected
for itself a representative who shall have the authority to bind such party, and
shall additionally have advised the other party in writing of the name and title
of such representative. By not later than ten (10) business days after the date
of such notice of dispute, the party against whom the dispute shall be raised
shall select a mediation firm in Pennsylvania and such representatives shall
schedule a date with such firm for a mediation hearing. The parties shall enter
into good faith mediation and shall share the costs equally. If the
representatives of the parties have not been able to resolve the dispute within
thirty (30) business days after such mediation hearing, the parties shall have
the right to pursue any other remedies legally available to resolve such dispute
in either the Court of Common Pleas of Centre County or in the United States
District Court for the

                                       11

<PAGE>

Middle District of Pennsylvania, to whose jurisdiction for such purposes PSRF
and LICENSEE each hereby irrevocably consents and submits.

         15.2.    Notwithstanding the foregoing, nothing in this Article shall
be construed to waive any rights or timely performance of any obligations
existing under this License Agreement.

                          ARTICLE XVI -NON-USE OF NAMES

         16.l.    LICENSEE shall not use the names of Penn State or PSRF nor of
any of their employees nor of any adaptation thereof, in any advertising,
promotional or sales literature without prior written consent obtained from Penn
State and/or PSRF in each case, except that LICENSEE may state that it is
licensed by PSRF under one or more of the patents and/or applications comprising
the LICENSED PATENTS and/or TECHNICAL INFORMATION and that said LICENSED PATENTS
and TECHNICAL INFORMATION were "Developed by Penn State".

         16.2.    PSRF shall not use the names of LICENSEE nor of any of their
employees nor of any adaptation thereof, in any advertising, promotional or
sales literature without prior written consent obtained from LICENSEE.

                            ARTICLE XVII -ASSIGNMENT

         17.1.    The rights and obligations of the Parties under this License
Agreement shall not be assignable by either Party without the prior written
consent of the other Party except that LICENSEE may assign upon written notice
to PSRF to any purchaser, transferee, or successor in interest to all of
LICENSEE's business assets to which this License Agreement relates.

                     ARTICLE XVIII -MISCELLANEOUS PROVISIONS

         18.1.    Entire Agreement. This License Agreement embodies the entire
understanding of the parties and shall supersede all previous communications,
representations, or undertakings, either verbal or written, between the parties
relating to the subject matter hereof.

         18.2.    Amendment. This License Agreement may be amended only by a
written agreement embodying the full terms of the amendment signed by authorized
representatives of both parties.

         18.3.    Severability. Should any provision of this License Agreement
be held to be illegal, invalid or unenforceable, by any court of competent
jurisdiction, such provision shall be modified by such court in compliance with
the law and, as modified, enforced. The remaining provisions of this License
Agreement shall be construed in accordance with the modified provision and as if
such illegal, invalid or unenforceable provision had not been contained herein.

         18.4.    No Strict Construction. The language used in this License
Agreement shall be deemed to be the language chosen by both parties hereto to
express their mutual intent and no rule of strict construction against either
party shall apply to any term or condition of this License Agreement.

         18.5.    Relationship of Parties. Nothing contained in this License
Agreement shall be construed as creating a partnership, joint venture, agency or
an association of any kind with the

                                       12

<PAGE>

exception that PSRF will receive non-voting member units of LICENSEE, equal to
ten percent (10%) of the total equity at the time of organization in accordance
with Article IV.

         18.6.    No Waiver. The failure of one party hereto to enforce at any
time any of the provisions of this License Agreement, or any rights in respect
thereto, or to exercise any election herein provided, shall in no way be
considered to be a waiver of such provision, rights or elections or in any way
to affect the validity of this License Agreement. Any waiver must be in writing.

         18.7.    Interpretation. The headings of several sections contained
herein are inserted for convenience of reference only, and are not intended to
be a part of or to affect the meaning or interpretation of this License
Agreement.

         18.8.    Governing Law. This License Agreement shall be governed by and
construed in accordance with the laws of the Commonwealth of Pennsylvania
without giving effect to any choice of law or conflict of law provision or rule
that would cause the application of the laws of any jurisdiction other than the
Commonwealth of Pennsylvania.

         18.9.    Counterparts. This License Agreement may be executed in one or
more counterparts, each of which shall be deemed an original, but all of which
together will constitute one and the same instrument.

                                       13

<PAGE>

         IN WITNESS WHEREOF, the parties have each caused their duly authorized
representative to execute this License Agreement as of the Effective Date.

LICENSEE

By:    /s/ Timothy B. Hurley
       ------------------------
Name:  Timothy B. Hurley
Title: President
Date:  October 4, 2000

THE PENN STATE RESEARCH FOUNDATION

By:    /s/ David E. Branigan
       ------------------------
Name:  David E. Branigan
Title: Treasurer
Date:  October 27, 2000

                                       14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]