Document:

EXHIBIT 10.3
                              EMPLOYMENT AGREEMENT

         This Employment Agreement ("Agreement"), dated February 28, 2001, is
entered into by and between Edward S. Adams, a Minnesota resident (the
"Executive") and Realco, Inc., a New Mexico corporation (the "Company").

                                 R E C I T A L S

         A. This Agreement is being executed and delivered contemporaneously
with that certain Agreement and Plan of Merger, dated February 28, 2001 (the
"Merger Agreement") among the Company, Equity Securities Investments, Inc.
("Equity") and ESI Acquisition Sub, Inc., a wholly owned subsidiary of the
Company ("Acquisition Sub"). Pursuant to the Merger Agreement, Acquisition Sub
will be merged into Equity, and Equity shall be the surviving corporation (the
"Merger"). As of the Effective Time (as defined in the Merger Agreement) of the
Merger, Equity shall be a wholly-owned subsidiary of the Company.

         B. The Company wishes to procure the services of the Executive for the
Company following the Merger, and the Executive is willing to provide his
services to the Company on the terms and conditions hereinafter set forth.

         C. The Company further wishes to restrict the Executive's business
activities and protect the confidential information and trade secrets of the
Company and its affiliated entities during the term of and upon expiration of
this Agreement.

         NOW THEREFORE, in consideration of the premises recited above and the
mutual promises and agreements herein, the parties to this Agreement hereby
agree as follows:

         1. Employment.

                  1.01. Employment; Title. The Company hereby employs the
Executive as an executive officer, with an initial title of Executive Vice
President, and the Executive hereby accepts such employment on the terms and
conditions set forth in this Agreement. The Executive shall have such authority
and responsibility, and shall serve in such capacities consistent with that
status, as may from time to time be assigned to him by the Board of Directors of
the Company. The Executive shall render such other services and perform such
other duties as may be requested of him from time to time by the Board.

                  1.02. Performance of Duties. The Executive shall serve the
Company and its subsidiaries faithfully and to the best of his ability, and
devote such time as may reasonably be required to the business and affairs of
the Company and its subsidiaries during normal business hours (and outside
normal business hours as reasonably required) during the term of this Agreement.

                  1.03. No Other Agreements. The Executive hereby confirms that
he is under no contractual commitments inconsistent with his obligations set
forth in this Agreement.

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         2. Term.

                  2.01. Term. The term of this Agreement shall begin on the
Closing Date (as such term is defined in the Merger Agreement) and expire on the
date that is three (3) years after the Closing Date, unless terminated earlier
in accordance with Section 5.01 hereof or extended as provided in Section 2.02
(the "Term"). Except as otherwise specified herein, all rights, duties and
obligations of the Executive, including without limitation the compensation and
benefits provided in Section 4 of this Agreement, shall commence as of the
Closing Date. In the event the Merger Agreement is terminated and the Merger is
not consummated, this Agreement shall not become effective and shall be deemed
for all purposes null and void.

                  2.02. Extension. On the first anniversary of the Closing Date
and on each subsequent anniversary thereof (each, a "Renewal Date"), the
then-existing Term shall be automatically extended so that it shall expire on
the date that is three (3) years after such Renewal Date, unless on or before
such Renewal Date the Company shall have delivered to the Executive or the
Executive shall have delivered to the Company written notice that the Term will
not be so extended. If such notice is given, the Term will end at the expiration
of the then-existing Term (including any previous extension(s)), and shall not
be further extended except by agreement of the Company and the Executive.

         3. Location. The Executive shall be based in, and shall perform his
duties in, the Minneapolis, Minnesota metropolitan area, or at such other
location as may be mutually agreed upon by the Company and the Executive. The
Executive shall, however, travel to other locations as may be reasonably
required for the performance of his duties under this Agreement.

         4. Compensation and Benefits.

                  4.01. Base Salary. During the Term of this Agreement, the
Company shall pay to the Executive a base salary at the rate of not less than
$150,000 per annum. Such base salary shall be paid in equal installments on the
Company's regular payroll dates during the term of this Agreement. The
Executive's base salary shall be reviewed annually and may be increased (but not
decreased).

                  4.02. Stock Option. Executive shall be eligible to participate
in any stock option plan or similar incentive plan of the Company subject to the
terms and conditions contained therein.

                  4.03. Bonuses and Incentive Compensation. In addition to the
base salary and the stock options described in Sections 4.01 and 4.02, the
Executive shall be eligible to participate in any bonus or performance based
incentive compensation plans which are established by the Board of Directors of
the Company for its executives.

                  4.04. Vacation. The Executive shall be entitled to paid
vacation time of not less than four (4) weeks annually.

                  4.05. 401(k) Plan. The Executive shall be entitled to
participate in any 401(k) plan offered by the Company from time to time to the
extent he is eligible to participate under

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the terms of such plan. The Executive's participation in such plan shall be
subject to the provisions, rules and regulations applicable thereto.

                  4.06. Participation in Other Benefit Plans. The Executive
shall be entitled to participate in all employee benefit plans or programs
established by the Company's Board of Directors from time to time to the extent
that his position, title, tenure, salary, age, health and other qualifications
make him eligible to participate. The Executive's participation in any such plan
or program shall be subject to the provisions, rules and regulations applicable
thereto. Without limiting the generality of the foregoing, the Executive shall
be provided with medical, disability, and life insurance coverage to the extent
it is available at a reasonable cost from reputable insurers.

                  4.07. Expenses. The Company shall pay or reimburse the
Executive for all reasonable and necessary out-of-pocket expenses incurred by
him in the performance of his duties under this Agreement, subject to the
presentment of appropriate vouchers in accordance with the Company's normal
policies for expense verification.

         5. Termination.

                  5.01. Termination. The Executive's employment under this
Agreement may be terminated prior to the expiration of the Term set forth in
Section 2 or any extension thereof, as follows, in which case the Company will
be obligated to compensate the Executive as provided in Section 5.02:

                           (a) Termination upon Death. The Executive's
                  employment under this Agreement shall terminate upon his
                  death.

                           (b) Termination upon Disability. The Company may
                  terminate the Executive's employment in the event the
                  Executive is determined to be disabled, as defined in Section
                  5.03.

                           (c) Termination by the Company without Cause. The
                  Company may terminate the Executive's employment under this
                  Agreement for any reason or for no reason upon ninety (90)
                  days' written notice to the Executive.

                           (d) Termination by the Company for Cause. The Company
                  may terminate the Executive's employment under this Agreement
                  for Cause, as defined in Section 5.03, effective immediately
                  upon delivery to the Executive of written notice of such
                  termination; provided, however, that the Executive shall not
                  be terminated for Cause unless and until the Company shall
                  have delivered to the Executive a copy of a resolution duly
                  adopted by the affirmative vote of not less than a majority of
                  the entire membership of the Company's Board of Directors
                  (excluding the Executive, if the Executive is a member of the
                  Board of Directors) at a meeting called and held for such
                  purpose (after reasonable notice to the Executive and an
                  opportunity for the Executive, together with the Executive's
                  counsel, to be heard by said Board), finding that, in the good
                  faith opinion of said Board, the Executive's conduct
                  constitutes Cause for termination and specifying the
                  particulars thereof in detail.

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                           (e) Termination by the Executive. The Executive may
                  terminate his employment with the Company hereunder at any
                  time (i) for Good Reason, as defined in Section 5.03,
                  effective immediately upon delivery to the Company of written
                  notice of such termination, or (ii) for any reason or for no
                  reason upon ninety (90) days' written notice to the Company.

                           (f) Termination by Mutual Consent. The parties may
                  terminate the Executive's employment under this Agreement at
                  any time by mutual consent.

                  5.02. Compensation Upon Termination.

                           (a) Death or Disability. In the event this Agreement
                  is terminated by reason of the Executive's death or
                  disability, the Executive shall be entitled to payment of
                  salary earned through the date of termination; payment of any
                  bonus or other incentive compensation for the year in which
                  such death or disability occurs, pro rated for the portion of
                  the year preceding the date of termination; payment for
                  accrued vacations to the date of termination; and
                  reimbursement of expenses incurred through the date of
                  termination. The Executive shall not be entitled to receive
                  any salary, bonus or other payments or benefits under this
                  Agreement with respect to any periods after the date of
                  termination by reason of death or disability.

                           (b) Termination by Company without Cause or by
                  Executive for Good Reason. If the Executive's employment under
                  this Agreement is terminated by the Company without Cause
                  pursuant to Section 5.01(c) or by the Executive for Good
                  Reason pursuant to Section 5.01(e)(i), the Executive shall be
                  entitled to payment of salary earned through the date of
                  termination; payment of any bonus or other incentive
                  compensation for the year in which such termination occurs,
                  pro rated for the portion of the year preceding the date of
                  termination; payment for accrued vacations to the date of
                  termination; and reimbursement of expenses incurred through
                  the date of termination. In addition, the Executive shall be
                  entitled to continue to receive, as a severance benefit,
                  payment of his base salary (at the highest annual rate in
                  effect during the Term of this Agreement) for the remainder of
                  the Term of this Agreement and continuation of medical
                  insurance coverage for the Executive and his family at the
                  Company's expense for the remainder of the Term of this
                  Agreement.

                           (c) Termination by Company for Cause or by Executive
                  without Good Reason. If the Executive's employment under this
                  Agreement is terminated by the Company for Cause pursuant to
                  Section 5.01(d), or by the Executive without Good Reason
                  pursuant to Section 5.01(e)(ii), the Executive shall be
                  entitled to payment of salary earned through the date of
                  termination; payment of any bonus or other incentive
                  compensation for the year in which such termination occurs,
                  pro rated for the portion of the year preceding the date of
                  termination; payment for accrued vacations to the date of
                  termination; and reimbursement of expenses incurred through
                  the date of termination. The Executive shall not be entitled
                  to receive any salary, bonus or other payments or benefits
                  under this Agreement with respect to any periods after the
                  date of termination by the Company for Cause or by the
                  Executive without Good Reason.

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                  5.03. Definitions.

                           (a) Disability. The Executive shall be deemed to be
                  "disabled" if the Board of Directors of the Company (excluding
                  the Executive, if the Executive is a member of the Board of
                  Directors) determines in good faith that the Executive is
                  physically or mentally incapacitated and has been unable for
                  ninety (90) days in any 360-day period to perform his duties
                  under this Agreement. In order to assist the Board of
                  Directors in making that determination, the Executive shall,
                  as reasonably requested by the Board, (i) make himself
                  available for medical examinations by a physician chosen by
                  the Board, and (ii) grant the Board and such physician access
                  to all relevant medical information concerning him, arrange to
                  furnish copies of medical records to them and use his best
                  efforts to cause his own physicians to be available to discuss
                  his health with the Board and the physician appointed by the
                  Board. If the Executive disagrees with the findings of the
                  Board-appointed physician, he may appoint his own physician to
                  make the relevant determinations as to disability. In the
                  event that the physician appointed by the Executive disagrees
                  with the findings of the Board-appointed physician, the two
                  physicians shall select a third physician whose determination
                  shall be binding.

                           (b) Cause. "Cause" shall mean:

                                    (i) the willful and continued failure by the
                           Executive to perform substantially the duties and
                           responsibilities of the Executive's position with the
                           Company, which failure is not remedied within thirty
                           (30) days after a written demand for substantial
                           performance, signed by a majority of the Company's
                           Board of Directors, is delivered to the Executive,
                           which demand specifically identifies the manner in
                           which the directors believe that the Executive has
                           not substantially performed his duties or
                           responsibilities (except that (A) any such failure
                           resulting from the Executive's incapacity due to
                           physical or mental illness or death, (B) any such
                           actual or anticipated failure after the issuance of a
                           notice of termination by the Executive for Good
                           Reason, or (C) any such failure resulting from the
                           Company's active or passive obstruction of the
                           performance of the Executive's duties and
                           responsibilities shall not constitute "Cause");

                                    (ii) the conviction of the Executive by a
                           court of competent jurisdiction for felony criminal
                           conduct; or

                                    (iii) the willful engaging by the Executive
                           in fraud or dishonesty which is demonstrably and
                           materially injurious to the Company or its
                           reputation, monetarily or otherwise.

         No act, or failure to act, on the Executive's part shall be deemed
         "willful" unless committed or omitted by the Executive in bad faith and
         without a reasonable belief that his act or failure to act was in the
         best interest of the Company.

                           (c) Good Reason. "Good Reason" shall mean the
                  occurrence, without the Executive's express written consent,
                  any of the following:

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                                    (i) the assignment to the Executive of any
                           duties inconsistent with the Executive's status or
                           position with the Company, or a substantial
                           alteration or diminution in the nature or status of
                           the Executive's responsibilities from those performed
                           by the Executive for Equity prior to the Merger;

                                    (ii) a reduction by the Company in the
                           Executive's annual base salary;

                                    (iii) the Company requiring the Executive to
                           be based anywhere other than the Minneapolis,
                           Minnesota metropolitan area except for required
                           travel on the Company's business to the extent
                           reasonably consistent with the Company's strategic
                           business plan, and to the extent required in
                           connection with the Executive's management reporting,
                           planning and training responsibilities to the
                           Company;

                                    (iv) the taking of any action by the Company
                           which would directly or indirectly materially reduce
                           any of the other benefits described in Sections 4.03
                           through 4.06 and which remains uncured after thirty
                           (30) days following the delivery of the Executive's
                           written notice of such breach to the Company; or

                                    (v) any material violation of this Agreement
                           by the Company which remains uncured after thirty
                           (30) days following the delivery of the Executive's
                           written notice of such breach to the Company.

         6. Miscellaneous

                  6.01. Assignment. Neither party may transfer or assign any
rights or delegate any obligations hereunder, in whole or in part, whether
voluntarily or by operation of law, without the prior written consent of the
other party. Any purported transfer, assignment or delegation by either party
without compliance with this Section 6.01 will be null and void and of no force
or effect. This Agreement shall be binding upon and inure to the benefit of the
parties' successors and lawful assigns.

                  6.02. Severability. Whenever possible, each provision of this
Agreement will be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be prohibited
by or unenforceable or invalid under applicable law, such provision will be
ineffective only to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this
Agreement.

                  6.03. Withholding. The Company may withhold and deduct from
any benefits payable under this Agreement such amounts as are required under
federal, state and local law to be withheld for income tax, Social Security or
other employment tax withholding purposes.

                  6.04 Complete Agreement. This Agreement and the agreements
referenced herein and therein, contain the complete agreement between the
parties with respect to the subject matter hereof and thereof, and supersede any
prior understandings, agreements or

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representations by or between the parties, written or oral, which may have
related to the subject matter hereof or thereof in any way.

                  6.05. Counterparts. This Agreement may be executed in one or
more counterparts, any one of which need not contain the signatures of more than
one party, but all such counterparts taken together, when delivered, will
constitute one and the same instrument.

                  6.06. Governing Law; Choice of Forum. The internal law,
without regard to conflicts of laws principles, of the State of Minnesota will
govern all questions concerning the construction, validity and interpretation of
this Agreement and the performance of the obligations imposed by this Agreement.
Any and every legal proceeding arising out of or in connection with this
Agreement shall be brought in the appropriate courts of the State of Minnesota,
and each of the parties hereto consents to the exclusive jurisdiction of such
courts.

                  6.07. No Waiver. No term or condition of this Agreement shall
be deemed to have been waived, nor shall there by any estoppel to enforce any
provisions of this Agreement, except by a statement in writing signed by the
party against whom enforcement of the waiver or estoppel is sought. Any written
waiver shall not be deemed a continuing waiver unless specifically stated, shall
operate only as to the specific term or condition waived and shall not
constitute a waiver of such term or condition for the future or as to any act
other than that specifically waived.

                                  * * * * * * *

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<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the day and year first above written.

                                   EXECUTIVE:

                                          /s/ Edward S. Adams
                                   Edward S. Adams

                                   COMPANY:

                                   REALCO, INC., a New Mexico corporation

                                   By:      /s/ James A. Arias
                                    Its:    President

                                       8<Page>

                                                                  10.1 (REFILED)

                     PATENT AND TECHNOLOGY LICENSE AGREEMENT

THIS thirteen (13) page AGREEMENT ("AGREEMENT") is made on this 14th day of
June, 1996 by and between the BOARD OF REGENTS ("BOARD") of THE UNIVERSITY OF
TEXAS SYSTEM ("SYSTEM"), an agency of the State of Texas, whose address is 201
West 7th Street, Austin, Texas 78701, THE UNIVERSITY OF TEXAS M. D. ANDERSON
CANCER CENTER ("MDA"), a component Institution of the SYSTEM and BioQuest, Inc.,
a Houston, Texas corporation having a principal place of business located at 333
N. Sam Houston Pkwy, Suite 1150, Houston, Texas 77060 ("LICENSEE").

                                TABLE OF CONTENTS
         RECITALS                                             Page 2

I.       EFFECTIVE DATE                                       Page 2

II.      DEFINITIONS                                          Page 2

III.     LICENSE                                              Page 3

IV.      CONSIDERATION, PAYMENTS AND REPORTS                  Page 4

V.       SPONSORED RESEARCH                                   Page 6

VI.      PATENTS AND INVENTIONS                               Page 6

VII.     INFRINGEMENT BY THIRD PARTIES                        Page 7

VIII.    PATENT MARKING                                       Page 7

IX.      INDEMNIFICATION                                      Page 7

X.       USE OF BOARD AND COMPONENT'S NAME                    Page 8

XI.      CONFIDENTIAL INFORMATION                             Page 8

XII.     ASSIGNMENT                                           Page 8

XIII.    TERMS AND TERMINATION                                Page 9

XIV.     WARRANTY:  SUPERIOR-RIGHTS                           Page 10

XV.      GENERAL                                              Page 11

         SIGNATURES                                           Page 12

         EXHIBIT I                                            Page 13

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                                    RECITALS

A. BOARD owns certain PATENT RIGHTS and TECHNOLOGY RIGHTS related to LICENSED
SUBJECT MATTER, which were developed at MDA, a component institution of SYSTEM.

B. BOARD desires to have the LICENSED SUBJECT MATTER developed in the LICENSED
FIELD and used for the benefit of LICENSEE, the inventor, BOARD, and the public
as outlined in the Intellectual Property Policy promulgated by the BOARD.

C. LICENSEE wishes to obtain a license from BOARD to practice LICENSED SUBJECT
MATTER.

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

                                I. EFFECTIVE DATE

1.1 Subject to approval by BOARD, this AGREEMENT shall be effective as of the
date written herein above ("EFFECTIVE DATE").

                                 II. DEFINITIONS

As used in this AGREEMENT, the following terms shall have the meanings
indicated:

2.1 AFFILIATE shall mean any business entity more than 50% owned by LICENSEE,
any business entity which owns more than 50% of LICENSEE, or any business entity
that is more than 50% owned by a business entity that owns more than 50% of
LICENSEE.

2.2 LICENSED FIELD shall mean all fields of use within the LICENSED SUBJECT
MATTER.

2.3 LICENSED PRODUCTS shall mean any product or service SOLD by LICENSEE
comprising LICENSED SUBJECT MATTER pursuant to this AGREEMENT.

2.4 LICENSED SUBJECT MATTER shall mean inventions and discoveries defined herein
as PATENT RIGHTS or as TECHNOLOGY RIGHTS.

2.5 LICENSED TERRITORY shall mean all national and international political
jurisdiction in which LICENSED PRODUCTS are sold.

2.6 NET SALES shall mean the gross revenues received by LICENSEE from the SALE
of LICENSED PRODUCTS less sales and/or use taxes actually paid, import and/or
export duties actually paid, outbound transportation prepaid or allowed, and
amounts allowed or credited due to returns (not to exceed the original billing
or invoice amount).

2.7 PATENT RIGHTS shall only mean any and all of BOARD'S rights in information
or

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discoveries claimed in invention disclosures, patents, and/or patent
applications, whether domestic or foreign, and all divisionals, continuations,
continuations-in-part, reissues, reexaminations or extensions thereof, and any
letters patent that issue thereon as defined in Exhibit I hereto subject to the
limitations, if any, set forth therein.

2.8 SALE or SOLD shall mean the transfer or disposition of a LICENSED PRODUCT
for value to a party other than LICENSEE or an AFFILIATE.

2.9 Subject to the limitations, if any, set forth in Exhibit I hereto,
TECHNOLOGY RIGHTS shall mean BOARD'S rights in any technical information,
know-how, process, procedure, composition, device, method, formula, protocol,
technique, software, design, drawing or data created by the inventors listed in
Exhibit I hereto and relating to LICENSED SUBJECT MATTER which is not claimed in
PATENT RIGHTS but which is necessary for practicing PATENT RIGHTS regardless of
whether any patent is actually issued during the term of this AGREEMENT.

                                  III. LICENSE

3.1 BOARD hereby grants to LICENSEE a royalty-bearing, exclusive license under
LICENSED SUBJECT MATTER to manufacture, have manufactured, use and/or sell
LICENSED PRODUCTS within LICENSED TERRITORY for use within LICENSED FIELD and,
subject to Paragraph 4.5 herein, shall extend to BOARD's undivided interest in
any LICENSED SUBJECT MATTER developed during the term of this AGREEMENT and
jointly owned by BOARD and LICENSEE. This grant shall be subject to Paragraph
14.2 and 14.3, hereinbelow, the payment by LICENSEE to BOARD of all
consideration as provided in Paragraph 4.1 of this AGREEMENT, (as well as the
timely payment of all amounts due under any Sponsored Research Agreement between
MDA and LICENSEE in effect during the term of this AGREEMENT) and shall be
further subject to rights retained by BOARD and MDA to:

(a) Publish the general scientific findings from research related to LICENSED
SUBJECT MATTER; AND

(b) Subject to the provisions of ARTICLE XI herein below, use any information
contained in LICENSED SUBJECT MATTER for research, teaching, patient care, and
other educationally-related purposes.

3.2 LICENSEE shall have the right to extend the license granted herein to any
AFFILIATE provided that such AFFILIATE consents to be bound by all of the terms
and conditions of this AGREEMENT.

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3.3 Subject to the Paragraph 3.4 herein below, LICENSEE shall have the right to
grant sublicenses under LICENSED SUBJECT MATTER consistent with the terms of
this AGREEMENT provided that LICENSEE shall be responsible for its sublicensees
relevant to this AGREEMENT, and for diligently collecting all amounts due
LICENSEE from subicensees. In the event a sublicensee pursuant hereto becomes
bankrupt, insolvent or is placed in the hands of a receiver or trustee,
LICENSEE, to the extent allowed under applicable law and in a timely manner,
agrees to use its best reasonable efforts to collect any and all consideration
owed to LICENSEE and to have the sublicense agreement confirmed or rejected by a
court of proper jurisdiction.

3.4 LICENSEE agrees to deliver to BOARD a true and correct copy of each
sublicense granted by LICENSEE, and any modification or termination thereof,
within thirty (30) days after execution, modification, or termination.

3.5 Upon termination of this AGREEMENT, BOARD agrees to accept as successors to
LICENSEE, existing sublicensees in good standing at the date of termination
provided that such sublicensees consent to be bound by all of the terms and
conditions of this AGREEMENT.

                     IV. CONSIDERATION, PAYMENTS AND REPORTS

4.1 In consideration of rights granted by BOARD to LICENSEE under this
AGREEMENT, LICENSEE agrees to pay MDA the following:

(a) Reimbursement for all out-of-pocket expenses paid by MDA through May 31,
1996 in filing, prosecuting, enforcing and maintaining PATENT RIGHTS licensed
hereunder as follows: (i) $53,125.00 due September 1, 1996, (ii) $53,125.00 due
April 1, 1997, and (iii) $53,125.00 due January 1, 1998; and all future expenses
paid by MDA, for so long as, and in such countries as, this AGREEMENT remains in
effect. MDA will invoice LICENSEE in accordance with the schedule herein, and
upon a quarterly basis thereafter beginning March 1, 1998 for expenses paid by
MDA after May 31, 1996 and the amounts invoiced will be due and payable by
LICENSEE within thirty (30) days thereafter; AND

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(b) A running royalty equal to six percent (6%) of LICENSEE's NET SALES of
LICENSED PRODUCTS in national political jurisdictions in the LICENSED TERRITORY
where LICENSED SUBJECT MATTER is covered by one (1) or more issued patents or
pending patent applications and three percent (3%) of LICENSEE'S NET SALES of
LICENSED PRODUCTS in national political jurisdictions in the LICENSED TERRITORY
where LICENSED SUBJECT MATTER is NOT covered by one (1) or more issued patents
or pending patent applications, and fifty percent (50%) (or forty percent (40%)
when LICENSEE has expended or committed to expend and is current in its
obligations to expend Two Million Dollars ($2,000,000.00) on research and
development of the LICENSED SUBJECT MATTER) of all consideration other than
Research and Development ("R&D") money received by LICENSEE from (i) any
sublicensee pursuant to Paragraphs 3.3 and 3.4 herein above, and (ii) any
assignee pursuant to Paragraph 12.1 hereinbelow including but not limited to
royalties, up-front payments, marketing, distribution, franchise, option,
license, or documentation fees, bonus and milestone payments and equity
securities, all payable within thirty (30) days after March 31, June 30,
September 30, and December 31 of each year during the term of this AGREEMENT, at
which time LICENSEE shall also deliver to BOARD and MDA a true and accurate
report, giving such particulars of the business conducted by LICENSEE and its
sublicensees, if any exist, during the preceding three (3) calendar months under
this AGREEMENT as necessary for BOARD are to account for LICENSEE's payments
hereunder. Such report shall include all pertinent data, including, but not
limited to: (a) the total quantities of LICENSED PRODUCTS produced; (b) the
total SALES, (c) the calculation of royalties thereon; (d) the total royalties
(or minimum royalties) so computed and due MDA; and (e) all other amounts
covered and due herein. Simultaneously with the delivery of each such report,
LICENSEE shall pay to MDA the amount, if any, due for the period of such report.
If no payments are due, it shall be so reported. Should LICENSEE be obligated to
pay running royalties to third parties to avoid infringing such third parties'
patent rights which dominate BOARD'S PATENT RIGHTS, LICENSEE may reduce the
running royalty due MDA by such running royalties to such third parties,
provided, however, the running royalty due MDA shall in no case be less than
one-half the rates stated herein.

4.2 During the Term of this AGREEMENT and for one (1) year thereafter, LICENSEE
shall keep complete and accurate records of its and its sublicensees' SALES and
NET SALES of LICENSED PRODUCTS to enable the royalties payable hereunder to be
determined. LICENSEE shall permit MDA or its representatives, at MDA's expense,
to periodically examine its books, ledgers, and records during regular business
hours for the purpose of and to the extent necessary to verify any report
required under this AGREEMENT. In the event that the amounts due to MDA are
determined to have been underpaid in an amount equal to or greater than five
percent (5%) of the total amount due during the period of time so examined,
LICENSEE shall pay the cost of such examination, and accrued interest at the
highest allowable rate.

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4.3 Upon the request of BOARD or MDA but not more often than once per calendar
year, LICENSEE shall deliver to BOARD and MDA a written report as to LICENSEE'S
(and sublicensees') efforts and accomplishments during the preceding year in
diligently commercializing LICENSED SUBJECT MATTER in the LICENSED TERRITORY and
LICENSEE'S (and sublicensees') commercialization plans for the upcoming year.

4.4 All amounts payable hereunder by LICENSEE shall be payable in United States
funds without deductions for taxes, assessments, fees, or charges of any kind.
Checks shall be made payable to The University of Texas M. D. Anderson Cancer
Center and mailed by U.S. Mail to Box 297402, Houston, Texas 77297 Attention:
Manager, Sponsored Programs.

4.5 No payments due or royalty rates under this AGREEMENT shall be reduced as
the result of co-ownership of LICENSED SUBJECT MATTER by BOARD and another
party, including LICENSEE.

                              V. SPONSORED RESEARCH

5.1 If LICENSEE desires to fund sponsored research within the LICENSED SUBJECT
MATTER, and particularly where LICENSEE receives money for sponsored research
payments pursuant to a sublicense under this AGREEMENT, LICENSEE shall notify
MDA in writing of all opportunities to conduct such sponsored research
(including clinical trials, if applicable), shall solicit research and/or
clinical proposals from MDA for such purpose, and shall give good faith
consideration to funding such proposals at MDA.

                           VI. PATENTS AND INVENTIONS

6.1 If after consultation with LICENSEE it is agreed by BOARD and LICENSEE that
a new patent application should be filed for LICENSED SUBJECT MATTER, BOARD will
prepare and file appropriate patent applications, and LICENSEE will pay the cost
of searching, preparing, filing, prosecuting and maintaining same. If LICENSEE
notifies BOARD that it does not intend to pay the cost of an application, or if
LICENSEE does not respond or make an effort to agree with BOARD on the
disposition of rights of the subject invention, then BOARD may file such
application at its own expense and LICENSEE shall have no rights to such
invention. BOARD shall provide LICENSEE with a copy of the application for which
LICENSEE has paid the cost of filing, as well as copies of any documents
received or filed during prosecution thereof.

                                       6
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                       VII. INFRINGEMENT BY THIRD PARTIES

7.1 LICENSEE shall have the obligation of enforcing at its expense any patent
exclusively licensed hereunder against infringement by third parties and shall
be entitled to retain recovery from such enforcement. LICENSEE shall pay MDA a
royalty on any monetary recovery to the extent that such monetary recovery by
LICENSEE is held to be damages or a reasonable royalty in lieu thereof. In the
event that LICENSEE does not file suit against a substantial infringer of such
patents within six (6) months of knowledge thereof, then BOARD shall have the
right to enforce any patent licensed hereunder on behalf of itself and LICENSEE
(MDA retaining all recoveries from such enforcement) and/or reduce the license
granted hereunder to non-exclusive.

7.2 In any suit or dispute involving an infringer, the parties shall cooperate
fully, and upon the request and at the expense of the party bringing suit, the
other party shall make available to the party bringing suit at reasonable times
and under appropriate conditions all relevant personnel, records, papers,
information, samples, specimens, and the like which are in its possession.

                              VIII. PATENT MARKING

8.1 LICENSEE agrees that all packaging containing individual LICENSED
PRODUCT(S), and documentation therefor, sold by LICENSEE, SUBSIDIARIES, and
sublicensees of LICENSEE will be marked permanently and legibly with the number
of the applicable patent(s) licensed hereunder in accordance with each country's
patent laws, including Title 35, United States Code.

                               IX. INDEMNIFICATION

9.1 LICENSEE shall hold harmless and indemnify BOARD, SYSTEM, MDA, its Regents,
officers, employees, students, and agents from and against any claims, demand,
or causes of action whatsoever, costs of suit and reasonable attorney's fees
including without limitation those costs arising on account of any injury or
death of persons or damage to property caused by, or arising out of, or
resulting from, the exercise or practice of the license granted hereunder by
LICENSEE or its officers, employees, agents or representatives.

                                       7
<Page>

                      X. USE OF BOARD AND COMPONENT'S NAME

10.1 LICENSEE shall not use the name of (or the name of any employee of) MDA,
SYSTEM or BOARD without the advance, express written consent of BOARD secured
through:

                           The University of Texas
                           M. D. Anderson Cancer Center
                           Office of Public Affairs
                           1515 Holcombe Boulevard
                           Box 229
                           Houston, Texas 77030
                           ATTENTION:  Stephen C. Stuyck

                          XI. CONFIDENTIAL INFORMATION

11.1 BOARD and LICENSEE each agree that all information contained in documents
marked "confidential" which are forwarded to one by the other shall be received
in strict confidence, used only for the purposes of this AGREEMENT, and not
disclosed by the recipient party (except as required by law or court order), its
agents or employees without the prior written consent of the other party, unless
such information (a) was in the public domain at the time of disclosure, (b)
later became part of the public domain through no act or omission of the
recipient party, its employees, agents, successors or assigns, (c) was lawfully
disclosed to the recipient party by a third party having the right to disclose
it, (d) was already known by the recipient party at the time of disclosure, (e)
was independently developed or (f) is required to be submitted to a government
agency pursuant to any preexisting obligation.

11.2 Each party's obligation of confidence hereunder shall be fulfilled by using
at least the same degree of care with the other party's confidential information
as it uses to protect its own confidential information. This obligation shall
exist while this AGREEMENT is in force and for a period of three (3) years
thereafter.

                                 XII. ASSIGNMENT

12.1 Except in connection with the sale of substantially all of the assets of
LICENSEE to a third party, this AGREEMENT may not be assigned by LICENSEE
without the prior written consent of BOARD.

                                       8
<Page>

                           XII. TERMS AND TERMINATION

13.1 Subject to Articles 13.2, 13.3, 13.4, and 13.5 hereinbelow, the term of
this AGREEMENT shall extend from the Effective Date set forth hereinabove to the
full end of the term or terms for which PATENT RIGHTS have not expired, and if
only TECHNOLOGY RIGHTS are licensed and no PATENT RIGHTS are applicable, for a
term of fifteen (15) years.

13.2 BOARD shall have the right at any time after one (1) year from the
EFFECTIVE DATE of this AGREEMENT to terminate the license granted herein in any
national political jurisdiction within the LICENSED TERRITORY if LICENSEE,
within ninety days after written notice from BOARD of such intended termination,
fails to provide written evidence satisfactory to BOARD that LICENSEE has
commercialized or is actively and effectively attempting to commercialize an
invention licensed hereunder within such jurisdiction(s). Accurate, written
evidence provided by LICENSEE to BOARD within said ninety (90) day period that
LICENSEE has an effective, ongoing and active research, development,
manufacturing, marketing, or sales program, as appropriate, directed toward
obtaining regulatory approval and/or production and/or sale of LICENSED PRODUCTS
incorporating PATENT RIGHTS or incorporating TECHNOLOGY RIGHTS within such
jurisdiction shall be deemed satisfactory evidence.

13.3 Subject to any rights herein which survive termination, this AGREEMENT will
earlier terminate in its entirety:

(a) automatically if LICENSEE shall become bankrupt or insolvent and/or if the
business of LICENSEE shall be placed in the hands of a receiver or trustee,
whether by voluntary act of LICENSEE or otherwise; or

(b) (i) upon thirty (30) days written notice by BOARD if LICENSEE shall breach
or default on the payment obligations of ARTICLE IV, or use of name obligations
of ARTICLE X; or (ii) upon ninety (90) days written notice by BOARD if LICENSEE
shall breach or default on any other obligation under this AGREEMENT; provided,
however, LICENSEE may avoid such termination if before the end of such thirty
(30) or ninety (90) day period if LICENSEE provides notice and accurate, written
evidence satisfactory to BOARD that such breach has been cured and the manner of
such cure; or.

(c) at any time by mutual written agreement between LICENSEE and BOARD, or
without cause upon one hundred eighty (180) days written notice by LICENSEE to
BOARD, subject to any terms herein which survive termination.

                                       9
<Page>

13.4 Upon termination of this AGREEMENT for any cause:

(a) nothing herein shall be construed to release either party of any obligation
matured prior to the effective date of such termination.

(b) LICENSEE covenants and agrees to be bound by the provisions of ARTICLES IX,
X AND XI of this AGREEMENT.

(c) LICENSEE may, after the effective date of such termination, sell all
LICENSED PRODUCTS and parts therefore that it may have on hand at the date of
termination, provided that LICENSEE pays the earned royalty thereon and any
other amounts due pursuant to ARTICLE IV of this AGREEMENT.

(d) LICENSEE grants to BOARD a non-exclusive royalty bearing license with the
right to sublicense others with respect to improvements made by LICENSEE
(including improvements licensed by LICENSEE from third parties) in the LICENSED
SUBJECT MATTER. LICENSEE and BOARD agree to negotiate in good faith the royalty
rate for said non-exclusive license. BOARD's right to sublicense others
hereunder shall be solely for purposes of permitting others to develop and
commercialize the entire technology package.

13.5 This AGREEMENT shall automatically terminate if LICENSEE fails to deliver
to MDA by September 1, 1996 (i) payment of $53,125.00 pursuant to 4.1(a)
hereinabove and (ii) notice that LICENSEE has legally binding funding
commitments from its investors totaling Two Million Dollars ($2,000,000.00) or
more.

                         XIV. WARRANTY: SUPERIOR-RIGHTS

14.1 Except for the rights, if any, of the Government of the United States as
set forth hereinbelow, BOARD represents and warrants its belief that it is the
owner of the entire right, title, and interest in and to LICENSED SUBJECT
MATTER, and that it has the sole right to grant licenses thereunder, and that it
has not knowingly granted licenses thereunder to any other entity that would
restrict rights granted hereunder except as stated herein.

14.2 LICENSEE understands that the LICENSED SUBJECT MATTER may have been
developed under a funding agreement with the Government of the United States of
America and, if so, that the Government may have certain rights relative
thereto. This AGREEMENT is explicitly made subject to the Government's rights
under any such agreement and any applicable law or regulation, including P.L.
96-517 as amended by P.L. 98-620. To the extent that there is a conflict between
any such agreement, applicable law or regulation and this AGREEMENT, the terms
of such Government agreement, applicable law or regulation shall prevail.

                                       10
<Page>

14.3 LICENSEE understands and agrees that BOARD, by this AGREEMENT, makes no
representation as to the operability or fitness for any use, safety, efficacy,
approvability by regulatory authorities, time and cost of development,
patentability, and/or breadth of the LICENSED SUBJECT MATTER. BOARD, by this
AGREEMENT, makes no representation as to whether there are any patents now held,
or which will be held, by others or by BOARD in the LICENSED FIELD, nor does
BOARD make any representation that the inventions contained in PATENT RIGHTS do
not infringe any other patents now held or that will be held by others or by
BOARD.

14.4 LICENSEE, by execution hereof, acknowledges, covenants and agrees that
LICENSEE has not been induced in anyway by BOARD, SYSTEM, MDA or employees
thereof to enter into this Agreement, and further agrees that LICENSEE has
conducted sufficient due diligence with respect to all items and issues
pertaining to Article XIV herein and all other matters pertaining to this
Agreement and agrees to accept all risks inherent herein.

                                   XV. GENERAL

15.1 This AGREEMENT constitutes the entire and only AGREEMENT between the
parties for LICENSED SUBJECT MATTER and all other prior negotiations,
representations, agreements and understandings are superseded hereby. No
agreements altering or supplementing the terms hereof may be made except by
means of a written document signed by the duly authorized representatives of the
parties.

15.2 Any notice required by this AGREEMENT shall be given by prepaid, first
class, certified mail, return receipt requested, and addressed in the case of
BOARD to:

                                          BOARD OF REGENTS
                                          The University of Texas System
                                          201 West Seventh Street
                                          Austin, Texas 78701
                                          ATTENTION:  System Intellectual
                                          Property Office

         with copy to:                    The University of Texas
                                          M.D. Anderson Cancer Center
                                          Office of Technology Development
                                          1020 Holcombe Boulevard, Suite 1405
                                          Houston, Texas 77030
                                          ATTENTION:  William J. Doty

         or in the case of LICENSEE to:   BioQuest, Inc.
                                          333 N. Sam Houston Pkwy, Suite 1150
                                          Houston, Texas 77060
                                          ATTENTION: Warren C. Lau

         or such other address as may be given from time to time under the terms
         of this

                                       11
<Page>

         notice provision.

15.3 LICENSEE covenants and agrees to comply with all applicable federal, state
and local laws and regulations in connection with its activities pursuant to
this AGREEMENT.

15.4 This AGREEMENT shall be construed and enforced in accordance with the laws
of the United States of America and of the State of Texas.

15.5 Failure of BOARD to enforce a right under this AGREEMENT shall not act as a
waiver of that right or the ability to later assert that right relative to the
particular situation involved.

15.6 Headings included herein are for convenience only and shall not be used to
construe this AGREEMENT.

15.7 If any provision of this AGREEMENT shall be found by a court to be void,
invalid or unenforceable, the same shall be reformed to comply with applicable
law or stricken if not so conformable, so as not to affect the validity or
enforceability of this AGREEMENT.

IN WITNESS WHEREOF, parties hereto have caused their duly authorized
representatives to execute this AGREEMENT.

THE UNIVERSITY OF TEXAS                        BOARD OF REGENTS OF THE
M.D. ANDERSON CANCER CENTER                    UNIVERSITY OF TEXAS SYSTEM

By  /s/ DAVID J. BACHRACH                      By /s/ RAY FARABEE
    --------------------------------------        ------------------------------
         David J. Bachrach                             Ray Farabee
         Executive Vice President                      Vice Chancellor and
         for Administration and Finance                General Counsel

APPROVED AS TO CONTENT:                        APPROVED AS TO FORM:

By   /s/ WILLIAM J. DOTY                       By /s/ DUDLEY R. DOBIE. JR
    --------------------------------------        ------------------------------
         William J. Doty                               Dudley R. Dobie, Jr.
         Director, Technology Development              Manager, Intellectual
                                                       Property

BIOTEX,INC.

By   /s/ WARREN C. LAU
   ---------------------------------------
         Warren C. Lau
         President

                                       12
<Page>

                                    EXHIBIT I

Ralph Arlinghaus, Ph.D., et al, Principal Investigator

       o      (MDA REF: UTSC:060-1) (CIP of UTSC:060) entitled "Prophylaxis and
              Therapy of Acquired Immunodeficiency Syndrome"

       o      U.S. Patent No. 5,128,319 entitled "Prophylaxis and Therapy of
              Acquired Immunodeficiency Syndrome", (MDA REF: UTSC:234)

       o      MDA REF: UTSC:242 entitled "Methods and Compositions for the
              Priming of Specific Cytotoxic T-Lymphocyte Response"

       o      MDA REF: UTSC:267 (Divisional of UTSC:234) "Prophylaxis and
              Therapy of Acquired Immunodeficiency Syndrome"

       o      MDA REF: UTSC:305 entitled "Compositions and Methods for Eliciting
              Immune or Anti-Infective Responses"

       o      MDA REF: UTSC:331 entitled "CD4 Peptides for Binding to Viral
              Envelope Proteins"

       o      MDA REF: UTSC:381 entitled "Peptides for Inhibitiing the Infection
              of Target Cells by Lentiviruses"

                                       13

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