Document:

ASSIGNMENT
      AND SALE AGREEMENT

    

    This
      Agreement is made this 4th
      day of
      November, 2003 by and between Drexel University, a Pennsylvania nonprofit
      corporation, with offices located at 3201 Arch Street, Suite 100, Philadelphia,
      Pennsylvania 19104, and its predecessors, successors, related parties and
      affiliated entities (collectively “Drexel”), and Noninvasive Medical
      Technologies, LLC, a Michigan Limited Liability Company, with its principal
      offices at 3201 University Drive, Suite 360, Auburn Hills, MI 48326 and its
      predecessors, successors, related parties and affiliated entities (collectively
      “NMT”).

    

    BACKGROUND

     

    
      A.  Drexel
        owns certain intellectual property developed by Drs. Xiang Wang and Hun H.
        Sun,
        relating to a cardiac monitoring system, as described more fully in the patents
        listed in Exhibit A to this Agreement, the intellectual property including
        not
        only said patents, but also drawings, plans, computer source code, and other
        unpatented confidential information, data, and/or know-how (collectively
        the
“Intellectual Property”);

    

     

    
      B.  NMT
        desires to purchase the Intellectual Property from Drexel;
        and

    

     

    
      C.  Drexel
        desires to sell the Intellectual Property to NMT.

    

     

    NOW
      THEREFORE, in consideration of the promises and covenants contained in this
      Agreement, the sufficiency of which is acknowledged by the parties, the parties
      agree as follows:

    

    ARTICLE
      1
      - Definition

    

    “Affiliate”
      means any legal entity directly or indirectly controlling, controlled by or
      under common control with NMT that has executed (a) this Agreement or (b) a
      written joinder agreement in a form satisfactory to Drexel, agreeing to be
      bound
      by all of the terms and conditions of this Agreement as if such Affiliate were
      an original party to this Agreement.

     

    
      
        	Drexel/NMT Assignment and Sale
                Agreement	
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    For
      purposes of this Agreement, “control” means the direct or indirect ownership or
      more than fifty percent (50%) of the outstanding voting securities of a legal
      entity, or the right to receive more than fifty percent (50%) of the profits
      or
      earnings of a legal entity, or the right to control the policy decisions of
      a
      legal entity.

    

    “Covered
      Product(s)” means products that are made, made for, used or sold by NMT or any
      of its sublicensees and that: (a) in the absence of this Agreement would
      infringe at least one claim of Patent Rights; (b) use a process or machine
      covered by a claim of Patent Rights; or (c) use, at least in part, any Technical
      Information.

    

    “Patent
      Rights” means all patent rights represented by or issuing from the United States
      or foreign patents listed in Appendix A of this Agreement or the patents issuing
      from the United States or foreign patent applications listed in Appendix A
      thereof, and their foreign counterparts and extensions, including continuation,
      divisional and re-issue applications and continuation-in-part
      applications.

    

    “Net
      Sales” means the consideration attributable to the Sale of any Covered
      Product(s), less qualifying costs directly attributable to such Sale and
      actually identified on the invoice and borne by NMT or its sublicensees. Such
      qualifying costs shall be limited to the following:

    

    
      	(i)  	
              Discounts,
                in amounts customary in the trade, for quantity purchases, for prompt
                payments and for wholesalers and
                distributors;

            

    

    
      	(ii)  	
              Credits
                or refunds, not exceeding the original invoice amount, for claims
                or
                returns;

            

    

    
      	(iii)  	
              Prepaid
                outbound transportation expenses and transportation insurance premiums;
                and

            

    

    
      	(iv)  	
              Sales
                and use taxes and other fees imposed by a governmental
                agency.

            

    

    

    “Sale”
      means any bona fide transaction for which consideration is received for the
      sale, use, lease, transfer or other disposition of Covered Product(s). A Sale
      of
      Covered Product(s) shall be deemed completed at the time NMT or its sublicensee
      receives payment for such Covered Product(s).

    

    “Technical
      Information” means all the information contained in the patents and the patent
      applications listed in Appendix A of this Agreement and any other technical
      information disclosed or referenced in Appendix A.

     

    
       

      
        
          	Drexel/NMT Assignment and Sale
                  Agreement	
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    ARTICLE
      2
      -

    

    Assignment,
      Sale and Transfer of Intellectual Property

    

    For
      and
      in consideration of the payments of the fees and royalties provided in Article
      3
      of this Agreement, Drexel hereby sells, assigns and transfers to NMT, its entire
      right, title and interest, in the Intellectual Property, for the United States
      of America, its territories and possessions, and for all foreign countries.
      This
      sale includes all patents identified in Exhibit A, and all divisions,
      continuations, continuations-in-part, reissues, reexaminations, and/or
      extensions pertaining to any of such patents. This sale also includes all
      unpatented know how and confidential information, developed by Drs. Wang and/or
      Sun for Drexel, including, but not limited to, the drawings, plans, and computer
      source code mentioned above. As a result of this sale, NMT shall own the
      Intellectual Property and be entitled to exercise all rights of ownership,
      including, without limitation, the right to develop further and different
      applications and products which shall be beyond the scope of this Agreement,
      including combining the Intellectual Property with other technologies which
      may
      be patented in such combinations which shall be free of any interest or claim
      of
      Drexel.

     

    ARTICLE
      3
      - Fees and Royalties

     

    The
      parties agree that NMT’s obligations to made payments due under this Agreement
      shall cease when it has paid to Drexel a cumulative total of four million
      dollars ($4,000,000.00) in royalty payments, sublicense initiation fees and
      any
      other such consideration due to Drexel under the terms of this Agreement (the
      “Total Payment”). Upon payment of the Total Payment as provided herein, all
      residual and security interests of Drexel in the Intellectual Property shall
      cease and terminate.

     

    
      a)  In
        partial consideration for the sale of the assignment of the Intellectual
        Property, NMT shall
        pay, to Drexel, the sum of Eighty-six Thousand Five Hundred Sixty-five
        ($86,565.00) Dollars
        as an advance against royalties due Drexel. This sum shall be paid concurrent
        with  the
        execution of this Agreement.

    

     

    
       

      
        
          	Drexel/NMT Assignment and Sale
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      b)  In
        further consideration for the sale of the Intellectual Property, NMT shall
        pay
        to Drexel:

    

    
    

     

    
      	 	 

    

    
      	a)  	
              A
                non-refundable minimum quarterly royalty of twelve thousand five
                hundred
                dollars ($12,500) beginning on January 1, 2004 and continuing on
                the first
                day of each calendar quarter thereafter (April 1, July 1, October
                1,
                January 1). The minimum quarterly royalty payment paid hereunder
                shall
                serve as an advance payment against the Total
                Payment.

            

    

    
      	b)  	
              In
                further consideration for this Agreement to be applied to the Total
                Payment, NMT shall pay to Drexel a royalty of two and one-half percent
                (2.5%) of the Net Sales of Covered Products made, made for, used
                or sold
                by NMT, its affiliates and/or sublicensees. Payments are due to Drexel
                during the calendar quarter in which NMT receives payment from its
                customer, affiliate and/or
                sublicensees.

            

    

    
      	c)  	
              In
                addition, NMT shall pay to Drexel ten percent (10.0%) of any Sublicense
                initiation fee paid by each Sublicensee of the Assignment Agreement
                to be
                credited towards the Total Payment. Payments are due to Drexel during
                the
                calendar quarter in which NMT receives payment from its sublicensee.
                If
                any of the sublicense fee paid by the sublicensee shall be in the
                form of
                non-publicly traded equity, the parties agree that they shall place
                Drexel’s portion of the sublicense initiation fee into escrow. All
                dividends and sale proceeds relating to the holdings of the escrow
                agreement shall be paid to Drexel as they are converted to cash or
                a
                readily marketable security.

            

    

    
      	 	 

    

    
    

     

    
      c)  No
        Covered Product shall be subject to more than one assessment of the royalty
        set
        forth above.

    

     

    
      d)  Royalty
        Reports and Records. NMT shall deliver to Drexel, within forty-five (45)
        days
        after the end of each calendar quarter, a written report, setting forth the
        number of Covered Products sold in the applicable quarter, and accompanied
        by
        payment of the royalty due. The obligation to provide such reports shall
        continue until NMT shall have paid the Total Payment.

    

     

    
      
         

        
          
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        e)  
NMT
          shall
          maintain complete and accurate books and records that enable the royalties
          payable under this Agreement to be verified. Upon reasonable prior notice
          to
          NMT, NMT shall provide Drexel with access to all books and records relating
          to
          the sales of Covered Products by NMT, to conduct a review or audit of those
          books and records. Access to NMT’s books and records shall be made available not
          more than once each calendar year, during normal business hours. If it
          is
          determined that NMT has underpaid any royalty due by ten percent (10%)
          or more,
          then NMT shall pay to Drexel promptly the costs and expenses of Drexel
          and its
          accountants in connection with their review or audit, in addition to such
          underpayment. The obligation to provide access to books and records shall
          expire
          at the time NMT shall have paid the Total Payment.

         

        g)   
All
          dollar amounts referred to in this Agreement are expressed in United States
          dollars. All payments to Drexel under this Agreement shall be made in United
          States dollars by check or wire transfer payable to Drexel
          University.

         

        h)  
Amounts
          that are not paid when due shall accrue interest from the due date until
          paid,
          at a rate equal to one and one-half percent (1.5%) per month or part thereof
          (or
          the maximum allowed by law, if less).

         

      

    

    ARTICLE
      4
      - Limited Warranties and Representations

     

    Except
      as
      otherwise provided in this Agreement, Drexel is selling and NMT is buying the
      Intellectual Property on an “as is” basis, without warranty of any kind, express
      or implied. Drexel shall not be liable for any direct, consequential, punitive
      or other damage suffered by NMT resulting from the Intellectual
      Property.

    
      
         

        
          
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    Notwithstanding
      the foregoing, and as an inducement to NMT to enter into this Agreement, Drexel
      warrants and represents that it is the sole owner of the Intellectual Property
      and that it has not encumbered, pledged, assigned or sold the Intellectual
      Property to any other party such that no party other than Drexel has any
      interest in the Intellectual Property. Drexel further represents and warrants
      that it has the right to enter into this Agreement and that all necessary
      approvals and actions have been given, taken and obtained such that full
      unencumbered title to the Intellectual Property is hereby conveyed to NMT.
      Drexel agrees to indemnify, defend and hold NMT harmless from and against any
      claims of any nature, including attorney fees and costs, arising from any breach
      of the foregoing warranties and representations. These representations and
      warranties do not apply to any transactions or occurrences involving Wantagh,
      Inc., Renaissance Technologies, Inc., New Renaissance Technologies, Inc, or
      Renaissance SET, LLC.

     

    NMT
      agrees to obtain product liability insurance, relating to the sale of Covered
      Products, and to maintain such insurance in force as long as such products
      are
      sold. NMT agrees that it will obtain a product liability policy having a limit
      of $2,000,000 per occurrence, and that it will name Drexel as an additional
      insured party on its product liability insurance policy. NMT shall not be liable
      to Drexel beyond the coverage of such product liability insurance
      policy.

     

    ARTICLE
      5
      - Use of Technology for Research Purposes

     

    NMT
      hereby grants a nonexclusive limited license to Drexel to use the Intellectual
      Property for educational and research purposes only. Drexel hereby grants NMT
      a
      first right of refusal for the purchase of any additional technologies, patents
      or other intellectual properties that are developed as a result of this
      license.

    
      
         

        
          
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    ARTICLE
      6
      - Recordable Version of Assignment

     

    Drexel
      agrees to contemporaneously execute an assignment and sale document in a form
      acceptable to NMT which refers to this Agreement but which does not repeat
      all
      of its contents, which document shall be suitable for recording in the U.S.
      Patent & Trademark Office or in any foreign patent office.

     

    ARTICLE
      7
      - Termination

     

    
      	a)  	
              Drexel
                may terminate this Agreement if any of the following events of default
                (“Default”) occur:

            

    

     

    
      	1)  	
              NMT
                is more than thirty (30) days late in paying to Drexel royalties
                as
                defined in Article 3, NMT does not pay Drexel undisputed amounts
                in full
                within Thirty (30) days after receipt of a written demand for payment
                from
                Drexel;

            

    

    
      	 	 

    

    
      	2)  	
              NMT
                breaches this Agreement and does not cure the breach within sixty
                (60)
                days after written notice of the breach, providing the breach has
                not been
                stayed by a court of competent
                jurisdiction.

            

    

     

    

      b)  Effect
        of Termination.
        In the
        event of a termination under Article 7.a hereof, all duties
        of
        Drexel and all rights (but not duties) of NMT under this Agreement shall
        immediately terminate without the necessity of any action being taken by
        Drexel.
        Upon and after any termination of this Agreement, NMT shall immediately convey
        its entire right, title and interests 

    

    
      
         

        
          
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      c)  Security
        Interest in the Intellectual Property.
        To
        secure the complete and timely payment
        and satisfaction of all royalty obligations of NMT under this Agreement,
        NMT
        hereby grants to Drexel a security interest, effective immediately, in NMT’s
        entire right, title and interest in and to the Intellectual Property. In
        addition to any rights or remedies provided for under this Agreement, Drexel
        shall have all of the rights and remedies of a secured party under the Uniform
        Commercial Code. NMT shall execute and deliver to Drexel such UCC-1 and UCC-3
        or
        other documents as may be reasonably necessary to perfect Drexel’s security
        interest in such. Upon the payment of the Total Payment as specified in Article
        3, Drexel’s security interest (and all other interests of any kind, if any) in
        the Intellectual Property shall terminate and cease and Drexel shall execute
        any
        documents deemed necessary by NMT to effectuate a release and termination
        of any
        such security or other interest. Drexel hereby grants to NMT its irrevocable
        power of attorney to execute in Drexel’s name all such documents as NMT deems
        reasonably necessary to so terminate and such security or other interest
        in any
        jurisdiction.

       

    

    ARTICLE
      8
      - Assignments and Sales

     

    NMT
      shall
      have the right without the approval of Drexel to sublicense the Intellectual
      Property as it deems fit. However, NMT shall not pledge, mortgage, grant a
      security interest in or otherwise encumber its titles, rights and interests
      in
      the patents or under this Agreement to any third party while the Total Payments
      remain unpaid without Drexel’s prior written approval which cannot be withheld
      providing that Drexel remains in the first lien position, and will not be
      unreasonably withheld under circumstances wherein Drexel does not remain in
      the
      first lien position. Once the Total Payment has been paid, Drexel’s right to
      approve any sale or transfer of the Intellectual Property shall
      terminate.

     

    
      
         

        
          
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    ARTICLE
      9
      - General Provisions

     

    
      a)  No
        waiver
        of any breach or condition of this Agreement shall be deemed to be a waiver
        of
        any other subsequent breach or condition, whether of like or different
        nature.

    

     

    
      b)  All
        communications between the parties shall be delivered in person or
        sentovernight
        delivery by overnight courier or by certified or registered mail, return
        receipt
        requested, and shall be deemed to have been given when hand-delivered one
        (1)
        day after mailing when mailed by overnight courier, or five (5) days after
        mailing by registered or certified mail, as follows (provided that notice
        of
        change of address shall be deemed given only when received):

    

     

    If
      to
      Drexel:

    Office
      of
      Technology Development

    Drexel
      University

    3201
      Arch
      Street, Suite 100

    Philadelphia,
      Pennsylvania 19104

    Attention:
      Vice President for Research

    

    

    With
      a
      required copy to:

    

    Office
      of
      the General Counsel

    3141
      Chestnut Street

    Philadelphia,
      Pennsylvania 19104

    Attention:
      General Counsel

    

    

    If
      to
      NMT:

    

    Mark
      McAlpine, Esq.

    Vice
      President and General Counsel

    Noninvasive
      Medical Technologies, LLC

    In
      care
      of:

    McAlpine
      & McAlpine, PC

    3201
      University Drive

    Suite
      100

    Auburn
      Hills, MI 48326

    

    or
      to
      such other names or addresses as NMT or Drexel, as the case may be, shall
      designate.

     

    
      
         

        
          
            	Drexel/NMT Assignment and Sale
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      c)  This
        Agreement shall be construed and governed in accordance with the laws of
        the
        Commonwealth of Pennsylvania, without giving effect to conflict of law
        provisions of any jurisdiction.

    

     

    
      d)  Any
        dispute arising out of or in connection with this Agreement shall be resolved
        by
        binding arbitration in accordance with the then current commercial arbitration
        rules of the American Arbitration Association (“AAA”), the arbitration to be
        held in Philadelphia, Pennsylvania. The parties agree to first mediate their
        dispute under the AAA’s then current mediation rules as a precondition to
        proceeding into arbitration. The cost of arbitration, as well as any attorney
        fees incurred by the parties, shall be borne as determined by the arbitrators
        to
        be just and reasonable. The decision of the arbitrators shall be final and
        binding and enforceable by any court of competent
        jurisdiction.

    

     

    
      e)  This
        Agreement shall be binding upon and inure to the benefit of the
        parties

    

    hereto
      and their respective heirs, personal representatives, successors and
      assigns.

     

    
      f)  This
        Agreement may be executed in two or more counterparts, each of which
shall
        be
        deemed an original, but all of which together shall constitute one and the
        same
        instrument. The headings used in this Agreement are for convenience only
        and are
        not to be considered in construing or interpreting any term or provision
        of this
        Agreement. The attached Exhibit A is hereby incorporated in this Agreement
        and
        made a part hereof.

    

     

    
      g)  This
        Agreement embodies the entire agreement and understanding among the parties
        hereto and thereto and supersedes all prior agreements and understandings
        relating to the subject matter hereof. This Agreement may not be changed,
        modified, extended or terminated except by written amendment executed by
        an
        authorized representative of each party. 

    

     

    
      h)  If
        any
        provision of this Agreement shall be held to be illegal, invalid
        or unenforceable,
        then such illegality, invalidity or unenforceability shall attach only to
        such
        provision and shall not in any manner affect or render illegal, invalid or
        unenforceable any other provision of this Agreement, and this Agreement shall
        be
        carried out as if any such illegal, invalid or unenforceable provision were
        not
        contained herein.

    

    
      
         

        
          
            	Drexel/NMT Assignment and Sale
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      i)  In
        computing the number of days for purposes of this Agreement, all days shall
        be counted,
        including Saturdays, Sundays and holidays; provided that if the final day
        of any
        time period falls on a Saturday, Sunday or holiday on which Federal banks
        are or
        may elect to be closed, then the final day shall be deemed to be the next
        day
        which is not a Saturday, Sunday or such holiday.

    

     

     

    IN
      WITNESS WHEREOF, the parties, intending to be legally bound, have caused this
      Agreement to be executed by their duly authorized representatives.

     

    
      	 	 	 
	 	Drexel
              University
	 
 	 
 	 
 
	 	By:  	/s/
              Dr.
              Aneal Rastogi 
	 	
              

            

    

     

    
      	 	 	 
	 	Noninvasive
              Medical Technologies, LLC
	 
 	 
 	 
 
	 	By:  	/s/ Ronald
              McCaughan
	 	
              
Ronald
              McCaughan, Chief Executive
              Officer

    

    
      
         

        
          
            	Drexel/NMT Assignment and Sale
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    Exhibit
      A

    

    Patents:

    

    5443073
      issued 8/22/95

    

    5423326
      issued 6/13/95

    

    5309917
      issued 5/10/94

     

     

    
      
         

        
          
            	Drexel/NMT Assignment and Sale
                    Agreement	
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                      12PROMISSORY
      NOTE

     

    
      	$400,000.00	
              Date:
                October 12,
                2004

            

    

     

    For
      value
      received, the undersigned Noninvasive Medical Technologies, L.L.C., a Michigan
      limited liability company, (“the Promisor”), at 3201 University Drive, Auburn
      Hills, MI 48326, promises to pay to the order of Conrad Kalitta (“the Payee”),
      at 48001 Denton Road, Belleville, Michigan 48111, (or at such place as the
      Payee
      may designate in writing) the sum of $400,000.00 with interest commencing on
      October 12, 2004, on the unpaid principal. The interest rate will be six percent
      (6%) per annum.

    

    The
      principal and interest shall be paid on or before July 12, 2005.

    

    All
      payments on this Note shall be applied first in payment of accrued interest
      and
      any remainder in payment of principal.

    

    If
      any
      payment obligation under this Note is not paid when due, the Promisor promises
      to pay all costs of collection, including reasonable attorney fees, whether
      or
      not a lawsuit is commenced as part of the collection process.

    

    If
      any of
      the following events of default occur, this Note shall become due immediately,
      without demand or notice:

    

    	1)  
              	
            the
              failure of the Promisor to pay the principal and any accrued interest
              in
              full on or before the Due Date;

          

    	 	 

    	2)  
              	
            the
              filing of bankruptcy proceedings involving the Promisor as a
              Debtor;

          

    	 	 

    	3)  
              	
            the
              application for appointment of a receiver of the
              Promisor;

          

    	 	 

    	4)  
              	
            the
              making of a general assignment for the benefit of the Promisor’s
              creditors; or

          

    	 	 

    	5)  
              	
            the
              insolvency of the Promisor.

          

     

    If
      any
      one or more of the provisions of this Note are determined to be unenforceable,
      in whole or in part, for any reason, the remaining provisions shall remain
      fully
      operative.

    

    All
      payments of principal and interest on this Note shall be paid in the legal
      currency of the United States. Promisor waives presentment for payment, protest,
      and notice of protest and nonpayment of this Note.

    

    No
      renewal or extension of this Note, delay in enforcing any right of the Payee
      under this Note, or assignment by Payee of this Note shall affect the liability
      of the Promisor. All rights of the Payee under this Note are cumulative and
      may
      be exercised concurrently or consecutively at the Payee’s option.

    

    This
      Note
      shall be construed in accordance with the laws of the State of
      Michigan.

    

    Signed
      this 12th day of October, 2004, at Ann Arbor, Michigan.

     

    PROMISOR:

    

    Noninvasive
      Medical Technologies, L.L.C.

     

    
      	 	 	 	 
	
              By:
                /s/
                Ronald McCaughan 

            	 	 	
            
	
              
                

              

              Ronald
                McCaughan

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