Document:

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                                                                    EXHIBIT 10.1

FORM 906-C

               DEPARTMENT OF THE TREASURY-INTERNAL REVENUE SERVICE

                     AGREEMENT AS TO FINAL DETERMINATION OF
                       TAX LIABILITY AND SPECIFIC MATTERS

        Under Section 7121 of the Internal Revenue Code (hereinafter the
"Code"), Corrections Corporation of America and Subsidiaries ("CCA"), 10 Burton
Hills Boulevard, Nashville, Tennessee 37215 (EIN: 62-1763875), successor to
Corrections Corporation of America and Subsidiaries (EIN: 62-1156308), on behalf
of itself, as agent for the CCA consolidated group, and as the Tax Matters
Partner for Mineral Wells, R.E.L.P. (EIN: 62-1734023) ("Mineral Wells") and
United Concept Limited Partnership (EIN: 74-2688571) ("United"), and the
Commissioner of Internal Revenue (hereinafter the "Commissioner") make the
following closing agreement:

        WHEREAS, CCA was issued a Revenue Agent's Report related to the December
31, 1997 taxable year of CCA, by letter dated May 8, 2000 (the "CCA RAR");
Mineral Wells was issued a Revenue Agent's Report related to the December 31,
1997 taxable year by letter dated November 27, 2000 (the "Mineral Wells RAR");
and United Concepts was issued a Revenue Agent's Report related to the December
31, 1997 taxable year by letter dated November 20, 2000 (the "United RAR")
(collectively referred to as the "RARs");

        WHEREAS, CCA filed a protest with the Internal Revenue Service Appeals
Division on August 31, 2000, protesting certain of the proposed adjustments set
forth in the CCA RAR; Mineral Wells filed a protest with the Internal Revenue
Service Appeals Division on February 20, 2001, protesting certain of the
proposed adjustments set forth in the Mineral Wells RAR; and United filed a
protest with the Internal Revenue Service Appeals Division on February 20, 2001,
protesting certain of the proposed adjustments set forth in the United RAR;

        WHEREAS, the parties have agreed to resolve all of the issues raised in
the RARs by this Agreement.

        NOW IT IS HEREBY DETERMINED AND AGREED that, for federal tax purposes:

        (1) Those of the RARs' proposed adjustments that were not protested by
CCA (CCA RAR issues A(1), A(2), B(2), D, E(1), F, G, H, I, and K; Mineral Wells
RAR issue 1; and United issue 1) shall be made as reflected in the RARs;

        (2) A consulting fee paid by CCA to CMA Capital Management, Inc. in the
amount of $6,989,000 and amortized over three years shall instead be amortized
over five years beginning July 1, 1997.

        (3) Fifty percent (50%) of $78,515 in state filing fees paid by CCA were
properly deducted by CCA in 1997, and the remainder shall be capitalized and
amortized over five years beginning July 1, 1997.

                                  Page 1 of 3

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CLOSING AGREEMENT WITH CORRECTIONS CORPORATION OF AMERICA AND SUBSIDIARIES,
MINERAL WELLS, R.E.L.P., AND UNITED CONCEPT LIMITED PARTNERSHIP

        (4) Fifty percent (50%) of $33,947 in legal fees paid by CCA were
properly deducted in 1997, and the remainder shall be capitalized and amortized
over five years beginning July 1, 1997.

        (5) Fifty percent (50%) of $49,825 in accounting fees paid by CCA were
properly deducted in 1997, and the remainder shall be capitalized and amortized
over eleven years beginning July 1, 1997.

        (6) Fifty percent (50%) of $2,135,732 in selling expenses incurred by
CCA were properly deducted in 1997, and the remainder shall be capitalized and
amortized over eleven years beginning July 1, 1997.

        (7) Twenty-five percent (25%) of the $109,065,571 capital loss claimed
by CCA in connection with the sale by Corrections Partners, Inc. of its
interests in CLI Equipment Leasing Trust VI and CLI Equipment Leasing Trust VIII
shall be allowed in 1997, and the remainder shall be disallowed.

        (8) Fifty percent (50%) of the selling expenses incurred by Mineral
Wells and United in the amounts of $124,383 and $247,394, respectively, were
properly deducted in 1997, and the remainder shall be capitalized and amortized
over eleven years beginning July 1, 1997.

        (9) CCA shall not be liable for the substantial understatement penalty
in the amount of $7,715,847 proposed in the RAR for the 1997 taxable year.

        (10) As a result of the above adjustments, CCA's accumulated earnings
and profits shall be increased as of the date of execution of this Agreement,
and the above adjustments shall not increase CCA's earnings and profits at any
time prior to the execution of this Agreement.

        This Agreement is final and conclusive except:

        (1) the matters it relates to may be reopened in the event of fraud,
malfeasance, or misrepresentation of material fact;

        (2) it is subject to the Internal Revenue Code sections that expressly
provide that effect be given to their provisions (including any stated exception
for Code section 7122) notwithstanding any other law or rule of law; and

        (3) if it relates to a tax period ending after the date of this
agreement, it is subject to any law, enacted after the agreement date, that
applies to that tax period.

                                  Page 2 of 3

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CLOSING AGREEMENT WITH CORRECTIONS CORPORATION OF AMERICA AND SUBSIDIARIES,
MINERAL WELLS, R.E.L.P., AND UNITED CONCEPT LIMITED PARTNERSHIP

        BY SIGNING, THE PARTIES CERTIFY THAT THEY HAVE READ AND AGREE TO THE
TERMS OF THIS DOCUMENTS.

CORRECTIONS CORPORATION OF AMERICA AND SUBSIDIARIES

         By: /s/ John D. Ferguson           Date Signed: 10/21/02
             --------------------                        --------

         Title: CEO
               -----

MINERAL WELLS, R.E.L.P.

         By: /s/ John D. Ferguson           Date Signed: 10/21/02
             --------------------                        --------

         Title: CEO of CCA and subsidiaries
                ---------------------------

UNITED CONCEPTS LIMITED PARTNERSHIP

         By: /s/ John D. Ferguson           Date Signed: 10/21/02
             --------------------                        --------

         Title: CEO of CCA and subsidiaries
                ---------------------------

COMMISSIONER OF INTERNAL REVENUE

         By: /s/ Michael S. Wagner          Date Signed: 10/24/02
             ---------------------                       --------

         Title: Team Case Leader
                ----------------

                                  Page 3 of 3Exhibit 10.1
Exhibit A to the Exclusive Licensing Agreement

                         EXCLUSIVE LICENSING AGREEMENT

This Exclusive Licensing  Agreement  ("Agreement") is made as of Oct. 8, 2002 by
and between Biowell  Technology Inc., a company duly  incorporated and organized
under the laws of Taiwan, Republic of China, ("ROC), having its principal office
at 18F, No. 959, Chung-Cheng Rd., Chung-Ho City, Taipei County, Taiwan, 235 ROC,
(hereinafter  referred  to as  "Biowell")  and  Applied DNA  Sciences,  Inc.,  a
corporation  duly  incorporated  under the laws of the State of  Nevada,  United
States of America with principal office at 9255 West Sunset Blvd. Suite 805, Los
Angeles, California 90069, USA ("Licensee"), either or both of which is referred
to as a "party" or the "parties.

                                    RECITALS

A.       Biowell has  developed  various  technologies  and know-how  including,
         without limitation, various DNA based anti-counterfeiting  technologies
         ("Technology"),  and owns the rights to patents and patent applications
         covering  several  aspects  of this  Technology.  In  addition  Biowell
         possesses proprietary  knowledge of the Technology.  Biowell desires to
         license the right to  manufacture  Licensed  Products  for  Licensee to
         manufacture  Licensed Products in the Territory as defined in Exhibit 1
         attached  hereto using materials  purchased from Biowell.  Biowell also
         desires to sell various parts and components related to the Products to
         Licensee for Licensee to  manufacture  the Licensed  Products.  Biowell
         also desires to sell finished Biowell Products to Licensee.

B.       Licensee desires to: (a) purchase materials to manufacture the Licensed
         Products  itself for sale in the  Territory;  or (b) purchase  finished
         Biowell Products from Biowell for resale in the Territory.

                                  DEFINITIONS

Unless the context  requires  otherwise,  whenever  used in this  Agreement  the
following terms and expressions shall have the following meaning:

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"Agreement"  shall mean this  agreement  including  its  Exhibits,  as it may be
amended from time to time by written agreement of both parties.

"Average  Biowell Share Price" means the average closing price of Biowell common
shares as reported on the  relevant  national  market  exchange  for each of the
[fifteen  (15)] trading days  immediately  preceding the date of exercising  the
Biowell Option.

"Average  Licensee  Share  Price"  means the average  closing  price of Licensee
common shares as reported on the relevant  national  market exchange for each of
the [fifteen (15)] trading days immediately preceding the date of exercising the
Licensee Option.

"Biowell   Option"   means  the  option   issued  to   Licensee  or  its  lawful
successor-in-interest by Biowell as further described in Section 4.

"Biowell  Option  Shares"  means the number of shares of common stock in Biowell
deliverable upon exercise of the Biowell Option, as adjusted from time to time.

"Biowell Products" means Products manufactured by Biowell.

"Business  Day"  means any day except a  Saturday,  Sunday or other day on which
commercial  banks in the city of Taipei  and New York are  authorized  by law to
close.

"Business Methods" mean business methods developed, licensed to, and/or owned by
Biowell relating to the Technology and Products.

"Company" shall mean either Licensee or Biowell where relevant.

"Confidential Information" includes all information, whether written or oral, in
whatever form disclosed,  concerning any technologies,  products,  developments,
business methods, business plans, marketing,  investment,  management, financial
and other business affairs in connection with all matters relating to or arising
out of this Agreement, including without limitation the Technology, the Business
Methods and Know How.

"Customers" means any natural or legal person(s) or entities primarily solicited
by Licensee under this Agreement in the Territory.

"Delivery Date" shall mean the date specified by Licensee in a Purchase Order on
which a Product or Product  Material is required to be  delivered  by Biowell to
Licensee.

"Exercise  Period"  means the three  calendar  years  immediately  following the
Effective Date of this Agreement.

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"Holder" means Licensee where Licensee is the holder of the Biowell Option or is
offering to exercise the Biowell Option;  and means Biowell where Biowell is the
holder of the Licensee Option or is offering to exercise the Licensee Option.

"Intellectual Property Rights" shall mean:

         (a)      patents,  designs, utility models, design rights,  copyrights,
                  database  rights,  topography  rights,  trade or service marks
                  (whether or not registered) or any similar rights in brands;

         (b)      applications  for any of the  foregoing and the right to apply
                  therefor in any jurisdiction;

         (c)      Know-How,  trade secrets and other  Confidential  Information;
                  and

         (d)      domain name registrations;

         (e)      and  all  or any  similar  or  equivalent  rights  arising  or
                  subsisting in any jurisdiction.

"Know-How"  means  all  technical,   operational  and  commercial   Confidential
Information  (including but not limited to Confidential  Information relating to
product  development,  business plans,  business  models,  marketing,  and other
business  affairs of the  disclosing  party)  required for the  exploitation  of
Technology  or  related  to  the  Products,   and  including  such  Confidential
Information as may relate to any Intellectual Property therein.

"Maximum  Licensee Shares" means 500,000 common shares in Licensee or Licensee's
successor-in-interest.

"Maximum Biowell Shares" means 500,000 common shares in Biowell.

"Minimum  Guarantee"  shall mean the minimum  quantity of business  volume to be
generated by Licensee on behalf of Biowell as further  described in the attached
Exhibit 2.

"Product"  means  either  Licensed  Product  or Biowell  Product as the  context
requires, as specified in Exhibit 3 attached hereto.

"Product  Materials" means any and all raw materials required to manufacture the
Licensed Products for resale in the Territory.

"Purchase  Order" shall mean an order for Biowell Products that Licensee submits
and Biowell accepts.  All Purchase Orders will be gathered and controlled by the
terms of this Agreement  unless  otherwise  agreed to in writing by Licensee and
Biowell.

"Licensee  Option"  means the option  issued to Biowell by  Licensee  as further
described in Section 4.

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"Licensee Option Shares" means the number of shares of common shares in Licensee
or Licensee's  successor-in-interest  deliverable  upon exercise of the Licensee
Option, as adjusted from time to time.

"Licensed  Products"  means Products as described in Exhibit 3  manufactured  by
Licensee incorporating Product Materials.

"Territory" means the territories specified in Exhibit 1.

                          1. Grant of Exclusive Right

1.1      Subject to the terms and  conditions of this  Agreement and for so long
         as Licensee is in  compliance  with all of its  obligations  hereunder,
         Biowell  hereby  grants  an  exclusive   right  for  Licensee  to:  (a)
         manufacture  the Products using only Product  Materials  purchased from
         Biowell or its authorized  designees for resale in the  Territory;  and
         (b) resell the  Products,  either  purchased  from Biowell  directly or
         manufactured  by  Licensee  using  Product  Materials   purchased  from
         Biowell, in the Territory (collectively, "Exclusive License"). Licensee
         shall  purchase  Product  Materials only from Biowell or its authorized
         designees.   The  parties   understand  that  the  exclusivity  of  the
         manufacturing  arrangement  requires  that  Licensee  give an undivided
         priority  of the  highest  loyalty  to  the  Products  in all  business
         endeavours.  No  express  or  implied  licenses  of any  type  for  the
         Technology shall be granted to Licensee.

1.2      Licensee may also purchase  finished  completed  Biowell  Products from
         Biowell for resell in the Territory  under the  procedures set forth in
         this Agreement.

1.3      Upon the terms specified in this section, Biowell shall license any new
         improvements,  modifications or alterations  related to the Products in
         this Agreement to Licensee ("New Improvement License").  Subject to the
         terms of this Agreement,  Biowell shall also grant an exclusive license
         to market every new anti-fraud products developed by Biowell while this
         Agreement remains in effect ("New Product  License"),  Such New Product
         License  shall remain  exclusive  for 365 calendar  days after the date
         Licensee can actually sell the New Products in the Territory.  In order
         to maintain the  exclusivity of such New Product  License in Licensee's
         Territory for the second  calendar year,  Licensee must provide Biowell
         with  received  gross order for such every New  Products  amounting  to
         US$100,000.00  ("Minimum  Guarantee for New Products") during the first
         calendar year. Licensee will need to increase its sales by 20% annually
         in years 2, 3, 4, and 5 in order to keep its exclusive  license for any
         new  products  at which point t hese  products  will fall into the same
         category and conditions placed on the original licensed product line.

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1.4      Support.  Biowell shall provide  reasonable  telephonic  and electronic
         mail  ("e-mail")  support to  Licensee  on an as needed  basis,  during
         Biowell's  regular  business hours.  Biowell shall appoint a liaison to
         communicate  with  Licensee,  and Licensee  shall funnel its  inquiries
         through such appointed  liaison so as to minimize any disruption to the
         staff of  Biowell.  Licensee  agrees to  provide  Biowell  with  timely
         written notification  containing specific details of problems to enable
         Biowell to diagnose such problems.

1.5      Professional Guidance Licensee wishes to build lab(s) in its Territory,
         at  its  own  cost,  for  the  purpose  of  analyzing,  testing  and/or
         manufacturing   Licensed  products,  and  Biowell  agrees  at  its  own
         discretion  and at  Licensee's  cost,  to assist  Licensee by providing
         Licensee with reasonable  professional guidance,  technical support and
         training;  the terms and  conditions  of which  guidance,  support  and
         training will be subject to the written agreement of the parties.

                                    2. Term

2.1      Unless terminated in accordance with the terms of this Agreement,  this
         Agreement  shall  be  effective  as of the  date of  execution  of this
         Agreement, and shall remain in effect for five calendar years following
         the execution of this  Agreement  ("Initial  Term").  In the event that
         Licensee  complies with all of the Minimum  Guarantee targets described
         in Exhibit 2, this Agreement  shall be  automatically  renewed for five
         calendar years  following the Initial Term ("Second  Term").  If during
         the  Second  Term,  Licensee  fails to fully  comply  with the  Minimum
         Guarantee  target  set  forth  on  paragraph  (e) of  Exhibit  2 in any
         calendar year during such Second Term,  then Licensee shall forfeit its
         Exclusive  License and Biowell  reserves  the right to  terminate  this
         Agreement with  immediate  effect by giving written notice to Licensee.
         Licensee  reserves  the right to remain as the  non-exclusive  Licensee
         with the term and conditions to be determined by both parties.

2.2      Biowell can not sell  Products to  Customers  of the  Licensee  without
         Licensee's  prior  consent  and  without  paying  licensee  its fee and
         without  written consent by the licensee for the term of this agreement
         and for 1 (one) year  following the  expiration or  termination of this
         Agreement,  on condition  that  non-exclusive  License  Agreement is in
         effect.  Introducing  any new Products to these  Customers  may only be
         done with  written  consent by the  Licensee  and shall be done on such
         terms as are mutually agreed by both Licensee and Biowell.

<PAGE>

2.3      NON  CIRCUMVENTION.  In the event of circumvention of this agreement by
         either party directly or indirectly;  the  circumvented  party shall be
         entitled to a legal  monetary  penalty equal to the maximum  benefit it
         should realize from such a transaction affected by such breach plus any
         and all  expenses  including  but not  limited  to all legal  costs and
         expenses incurred to recover the lost revenue.

2.4      In the event of termination not  attributable to Licensee  Biowell will
         have the  responsibility  to  continue  to honor  this  Agreement  with
         Licensee in respect of  assisting  Licensee to fulfill any  outstanding
         agreements with Customers of the Licensee. In the event of termination,
         Biowell  will  have  the   responsibility  to  continue  to  honor  any
         outstanding  agreements  with  customers  of the  Licensee and must pay
         Licensee or designee  it's fees for the life of the  relationship  with
         this  customer as the  non-exclusive  Licensee  unless the parties have
         mutually agreed to end this relationship at which time Biowell will not
         be required to pay  Licensee a fee to service  the  customers.  Biowell
         only has a right to work  with  customers  of  Licensee  that are under
         contract all others on the contact list provided by Licensee may not be
         contacted for a period of one year  following any  termination  of this
         agreement.

                              3. Price and Payment

3.1      In  consideration  for receiving the Exclusive  License for the Initial
         Term, Licensee shall issue or cause to be issued to Biowell one million
         five hundred  thousand  shares  (1,500,000  shares) of the new publicly
         listed  company   following  the  proposed  merger  with  ADNAS.   This
         consideration  will  satisfy the  royalty  for the Initial  Term of the
         Exclusive  License and will be rendered to Biowell within 60 days after
         the  closing of the  proposed  merger  with a public  company  and such
         shares shall be non-refundable by Biowell under any  circumstances.  If
         for any reason,  such as inability to obtain  necessary  government  or
         third party  approvals for the issuance  contemplated  in this Section,
         Biowell  is unable to obtain  such  share  issuance  or is only able to
         obtain a portion of such share issuance within six (6) months following
         the execution of this Agreement,  Biowell may terminate this Agreement.
         Full and timely  fulfillment  of its  obligation  concerning  the above
         mentioned consideration shall entitle Licensee to receive such training
         sessions  and  written   materials  from  Biowell  related  to  Biowell
         Products,  as Biowell in its sole  discretion  shall decide to provide.
         Biowell  reserves all  Intellectual  Property  Rights in any  materials
         provided in such training.

3.2      Biowell  agrees  to  negotiate  the  terms  and to  abide by a leak out
         agreement and conditions of a standstill agreement with Licensee.  Upon
         acceptance of such terms and conditions by both Parties,  Biowell shall
         execute  such  standstill  agreement  and  shall  agree not to sell its

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         shares  obtained under this agreement for a period of one calendar year
         after the expiration of the standstill  period.  Biowell agrees that if
         it decides to sell such  shares,  then each such  transaction  shall be
         subject to Rule 144 until Biowell's position is outside of Rule 144 and
         Biowell has decreased  it's  ownership in ADNAS below 10% at which time
         Biowell agrees to abide by a leak out not to exceed gross selling of 5%
         of the  previous  months  trading  volume.  This stand  still /leak out
         agreement  will apply to any designee,  assignee or successor  that may
         gain  ownership  of said shares  secured by Biowell  under the terms or
         conditions of this Agreement.

3.3      The prices  charged by Biowell  for the  Biowell  Products  and Product
         Materials  shall be those set forth as  Exhibit  4. All  prices are FOB
         (Taiwan,  ROC) and payment to Biowell from Licensee shall be due thirty
         calendar  days after  delivery of the  relevant  Biowell  Products  and
         Product  Material to the carrier for shipment to  Licensee.  Prices are
         exclusive  of  costs  of  transportation,  insurance,  taxes,  customs,
         duties,  landing,  storage  and  handling  fees,  and/or  documents  or
         certificates  required for  exportation or  importation,  which will be
         separately  itemized  and billed to  Licensee in  accordance  with this
         Section 3.3. Both Parties agree to negotiate a fee for Biowell  Product
         and Product  Materials that will make the Licensee very  competitive in
         the Territory with any other potential  competition that may arise over
         the period. This competitive rate should not be increased more than the
         previous  calendar years published  inflation rate in the United States
         or 10  percent,  whichever  is  higher  without  the  consent  b by the
         Licensee.

3.4      No amounts payable to Biowell  pursuant to the Agreement may be reduced
         due to counterclaim,  set-off, adjustment or other right which Licensee
         may have against  Biowell  unless the  Licensee has received  defective
         product  at which  time  Biowell  will be  obligated  to  rectify  this
         situation in accordance with the relevant terms of this Agreement.  Any
         payment  not  made  within  the due  date  specified  in each  relevant
         Purchase  Order  shall  bear  interest  at a rate  equal  to  the  rate
         specified in the relevant Purchase Order affected by the late payment.

3.5      Security.  Biowell  reserves  the right to request  from the Licensee a
         cash  deposit or letter of credit in a form to be  approved  by Biowell
         and issued by a bank  acceptable  to it in an amount not  exceeding the
         total credit extended by Biowell for each Purchase Order, provided that
         Biowell  reserves  the right to obtain an increase in the amount of the
         letter of credit  in its sole  discretion  (the  "Letter  of  Credit").
         Licensee agrees to continuously  renew or replace the Letter of Credit,
         as  necessary,  to keep  it in  effect  during  the  term of  Biowell's
         extension  of credit to  Licensee  under any  Purchase  Order and shall
         within ten (10)  Business Days of any draw down on the Letter of Credit

<PAGE>

         by Biowell,  replenish any amounts drawn down so that the amount of the
         Letter  of  Credit  never  falls  below  the  amount  set forth in this
         Section, as the same may be increased pursuant to this Section. Nothing
         contained  herein  shall  limit or be  interpreted  to limit  Biowell's
         right.

                      4 Option and Subscription of Shares

4.1      Subject  to  obtaining  the  necessary   corporate,   third  party  and
         government approvals, including without limitation, the approval by the
         Securities and Futures Commission and the Investment  Commission of the
         ROC,  Licensee may  subscribe  for new shares of common stock issued by
         Biowell in an amount up to the Maximum Biowell Shares under the Biowell
         Option granted to Licensee under this Section 4. Biowell agrees to make
         such shares available to Licensee by any lawful means possible.

4.2      Grant of Licensee Option.  For value received in the form of the mutual
         grant of warrants  between the  parties,  Licensee  hereby  irrevocably
         grants to Biowell the Licensee  Option as of the Effective Date of this
         Agreement  (the  "Option  Issue  Date").   Subject  to  the  terms  and
         conditions hereinafter set forth, Biowell is entitled, upon delivery of
         the  Licensee  Option at the  principal  office of Licensee (or at such
         other place as Licensee  shall notify the Holder  hereof in writing) in
         accordance  with this Section 4, to purchase  from Licensee such number
         of  Licensee  Option  Shares up to the Maximum  Licensee  Shares at the
         strike price of US$ 2 per share or 20% below the Average Licensee Share
         Price,  which ever is lower.  The number of shares of  Licensee  Option
         Shares  issuable  pursuant  to this  Section  4.2 shall be  subject  to
         adjustment pursuant to this Agreement.

4.3      Grant of Biowell  Option.  For value received in the form of the mutual
         grant of  warrants  between the  parties,  Biowell  hereby  irrevocably
         grants to  Licensee  or its lawful  successor-in-interest  the  Biowell
         Option as of the Effective  Date of this  Agreement  (the "Option Issue
         Date").  Subject  to the terms and  conditions  hereinafter  set forth,
         Licensee  is  entitled,  upon  delivery  of the  Biowell  Option at the
         principal  office of Biowell (or at such other  place as Biowell  shall
         notify the Holder hereof in writing) in accordance with this Section 4,
         to purchase from Biowell such number of Biowell Option Shares up to the
         Maximum  Biowell  Shares at the strike  price of US$ 3 per share or 20%
         below the Average Biowell Share Price,  which ever is lower. The number
         of shares of Biowell  Option Shares  issuable  pursuant to this Section
         4.2 shall be subject to adjustment pursuant to this Agreement.

4.4      Both  Biowell  and  Licensee  shall use good faith and fair  dealing to
         negotiate the standard  industry  terms and  conditions  for piggy back
         registration  rights relating to their respective Option shares and the
         underlying shares, where permitted under the local laws.

<PAGE>

4.5      Exercise Period of Option. The Licensee Option and Biowell Option shall
         be exercisable, in whole or in part, from their respective Option Issue
         Date and shall  terminate at 5:00 p.m.  Taipei time on the Business Day
         immediately following the end of the Exercise Period.

4.6      Method of Exercise of Option. While the option of either Parties remain
         outstanding  and  exercisable  in  accordance  with this Section 4, the
         respective Holder of such Option may exercise, in whole or in part, the
         purchase rights evidenced hereby. Such exercise shall be effected by:

         (a)      the surrender of the respective  Option,  together with a duly
                  executed  copy of the  form of  Notice  of  Election  attached
                  hereto as Exhibit 5, to the secretary of the relevant  company
                  at its  principal  office  ("Exercise  Notice") at the address
                  listed in this Agreement; and

         (b)      the payment to the relevant  company of an amount equal to the
                  relevant   exercise  price  for  the  relevant   shares  being
                  purchased.

4.6      Upon such  delivery and  payment,  the Holder shall be deemed to be the
         Holder of record of the  relevant  Licensee  Option  Shares or  Biowell
         Option  Shares,  as the case  may be,  notwithstanding  that the  stock
         transfer  books of the  relevant  company  shall then be closed or that
         certificates  representing  such  shares  shall  not  then be  actually
         delivered  to the Holder or that,  to the extent  permitted by law, the
         covenants undertaken in Exhibit 6 have not all been performed.

4.7      Covenants of Both  Parties.  Each Party  hereby  covenants to the other
         Party to undertake  the  activities  listed in Exhibit 6,  attached and
         made a part of this Agreement.

4.8      Representations  &  Warranties  of  Both  Parties.  Each  Party  hereby
         warrants and  represents to the other Party that the matters  stated in
         Exhibit 7 are  substantially  true and  correct  as of the date of this
         Agreement.  In addition,  Licensee  represents  and warrants to Biowell
         that it has the  necessary  ability  and  experience  to carry  out the
         obligations  assumed  by it  under  this  Agreement  with  the  highest
         standards of the industry.  Licensee  further warrants that by entering
         into this Agreement, it is not and will not be in breach of any express
         or implied obligation to any third party.

4.9      Adjustment of Shares. The number of and kind of shares purchasable upon
         exercise of the relevant  option and the relevant option exercise price
         shall be subject to adjustment from time to time as follows:

         (a)      Subdivisions, Combinations and Other Issuances. If the Company
                  shall at any  time  prior to the  expiration  of the  Exercise
                  Period subdivide its common shares,  by split-up or otherwise,

<PAGE>

                  or combine its common shares,  or issue  additional  shares of
                  its common shares as a dividend, the number of Shares issuable
                  on the  exercise of the  relevant  option  shall  forthwith be
                  proportionately  increased  in the  case of a  subdivision  or
                  stock dividend, or proportionately  decreased in the case of a
                  combination. Appropriate adjustments shall also be made to the
                  purchase price payable per share,  but the aggregate  purchase
                  price  payable  for the total  number of the  relevant  option
                  shares  purchasable  under the relevant  option (as  adjusted)
                  shall  remain the same.  Any  adjustment  under  this  Section
                  4.9(a) shall become  effective at the close of business on the
                  date the subdivision or combination  becomes effective,  or as
                  of the record date of such  dividend,  or in the event that no
                  record date is fixed, upon the making of such dividend.

         (b)      Reclassification, Reorganization and Consolidation. In case of
                  any reclassification, capital reorganization, or change in the
                  common shares of the relevant  Company (other than as a result
                  of a subdivision,  combination, or stock dividend provided for
                  in  Section  4.9(a)  above),  then,  as a  condition  of  such
                  reclassification,  reorganization, or change, lawful provision
                  shall be made, and duly executed documents evidencing the same
                  from the Company or its  successor  shall be  delivered to the
                  Holder,  so that the  Holder  shall have the right at any time
                  prior to the expiration of the relevant option to purchase, at
                  a total price equal to that  payable  upon the exercise of the
                  relevant  option,  the kind and  amount of shares of stock and
                  other  securities and property  receivable in connection  with
                  such reclassification,  reorganization,  or change by a Holder
                  of  the  same  number  of  shares  of  common  stock  as  were
                  purchasable   by  the   Holder   immediately   prior  to  such
                  reclassification, reorganization, or change. In any such c ase
                  appropriate  provisions  shall  be made  with  respect  to the
                  rights  and  interest  of the  Holder  so that the  provisions
                  hereof  shall  thereafter  be  applicable  with respect to any
                  shares of stock or other  securities and property  deliverable
                  upon exercise  hereof,  and appropriate  adjustments  shall be
                  made  to the  purchase  price  per  share  payable  hereunder,
                  provided the aggregate  relevant  exercise  price shall remain
                  the same.

         (c)      Notice of  Adjustment.  When any  adjustment is required to be
                  made in the number or kind of shares purchasable upon exercise
                  of the relevant  option,  or in the relevant  option  exercise
                  price,  the Company shall  promptly  notify the Holder of such
                  event  and of the  number of  shares  of the  relevant  option
                  shares or other securities or property thereafter  purchasable
                  upon exercise of the relevant option.
<PAGE>

         (d)      No Impairment.  The Company and the relevant  Holder will not,
                  by any voluntary action, avoid or seek to avoid the observance
                  or performance of any of the terms to be observed or performed
                  hereunder by the Company or the Holder, respectively, but will
                  at all times in good faith  assist in the  carrying out of all
                  the  provisions  of this  Section 4.9 and in the taking of all
                  such action as may be  necessary  or  appropriate  in order to
                  protect  the  rights of the  Company  and the  Holder  against
                  impairment.

4.10     Issuance of Shares.  The Company shall ensure that the relevant shares,
         when issued  pursuant to the exercise of the relevant  option,  will be
         duly and validly issued, fully paid and nonassessable and free from all
         taxes,  liens, and charges with respect to the issuance  thereof.  4.11
         Transfer of Option.  Subject to compliance with  applicable  securities
         laws, the options  granted  hereunder and all rights (but only with all
         related obligations)  hereunder are transferable in whole or in part by
         the Holder upon the prior written consent of the Company.  The transfer
         shall be recorded on the books of the Company upon (i) the surrender of
         the relevant option, properly endorsed, to the Company at its principal
         offices,  (ii) the  payment to the  Company of all  transfer  taxes and
         other  governmental  charges  imposed on such  transfer  and (iii) such
         transferee's  agreement  in writing  to be bound by and  subject to the
         terms and conditions of the relevant option.  In the event of a partial
         transfer,   the  Company  shall  issue  to  the  holders  one  or  more
         appropriate new options.

                       5. Board of Advisor and Consultant

5.1      Dr. Sheu or his  authorized  nominee or Biowell  will have the right to
         serve as Board of Advisor in  Licensee,  who will have right to receive
         notice of and  participate  in the meetings of the board of director of
         Licensee without voting powers.

5.2      Biowell  will  invite  a  nominee  of  Licensee  as  a  consultant   to
         participate  meetings  of the board of  directors  of  Biowell  without
         voting powers.
<PAGE>

                            6. Licensee Obligations

6.1      Licensee will source,  solicit,  and attract potential customers in the
         Territory for purchasing Products either made by Licensee using Product
         Materials  or  purchased  directly  from  Biowell  and  Licensee  shall
         promote,  market,  and extend the sale of the Products in the Territory
         to  potential  customers  in the  Territory.  Licensee  shall  not bind
         Biowell  to any  express  or implied  legal  obligation  with any third
         parties,  including Licensee's  customers,  while Licensee is executing
         this Agreement. Licensee shall market, promote, and resell the Products
         on its own behalf and not as an agent or representative of Biowell.

6.2      Licensee will perform any and all  post-sale  servicing of any type for
         customers. Biowell shall not perform any support services to Licensee's
         customers unless both parties agree otherwise in writing.

6.3      If any dispute  arises in the  Territory  involving  Biowell under this
         Agreement,  Licensee will use its best endeavors to limit the potential
         damages  to  Biowell  that  could be  caused by the  dispute.  Further,
         Licensee will inform  Biowell  without undue delay of the nature of the
         dispute  and  comply  with all  reasonable  directions  of  Biowell  in
         relation thereto.

6.4      Licensee  shall  have the  right to  sub-license  in its  Territory  in
         accordance with this Section 6.4. Specifically, Licensee shall have the
         right to  authorize  any third  party to receive or utilize any benefit
         derived by Licensee under this Agreement.  Each, such  authorization or
         sub-licensing  must be approved by Biowell and any resulting  agreement
         must be co-signed by Biowell. Biowell shall be reasonable with any such
         request.  Any new sub licensee  shall  comply in all respects  with the
         same  restrictions  placed  on  Licensee  by  Biowell  in the  original
         license.

                                  7. Indemnity

7.1      Indemnity  against any Third Party  Claims.  Each Party  ("Indemnifying
         Party") will indemnify, defend, and hold the other Party, its officers,
         directors,  agents,  employees,  and affiliates,  ("Indemnity Parties")
         harmless  from and against any and all  liabilities,  damages,  losses,
         expenses,  claims,  demands,  suits,  fines  or  judgments,   including
         reasonable attorney fees, costs and expenses incidental thereto,  which
         may be suffered by, accrued against, charged to or recoverable from the
         Indemnity Parties, arising out of any third party claim. Promptly after
         receipt by the Indemnity Parties of a threat of any action, or a notice
         of the commencement or filing of any action against which the Indemnity
         Party may be  indemnified  hereunder,  the  Indemnity  Party shall give
         written notice thereof to Indemnifying Party.  Indemnifying Party shall
         have sole control of the defense and of all negotiations for settlement
         of such action.  The indemnity  provided  herein shall not apply if the
         alleged claim arises from any action or inaction  however  attributable
         to Indemnity Parties.

<PAGE>

          8. Product & Product Materials Ordering Procedure, Forecasts,
                         Change Orders, & Cancellation

8.1      Biowell, within the limitations contained in this Agreement,  agrees to
         use best efforts to sell to Licensee,  respectively, such quantities of
         Product  and Product  Materials  as  Licensee  may order in  accordance
         herewith.

8.2      Purchase  of  Products.  Subject  to the terms and  conditions  of this
         Agreement,  Biowell  hereby  agrees  to sell  and  Licensee  agrees  to
         purchase  the Products  and Product  Materials  during the term of this
         Agreement.

8.3      Licensee agrees to meet the relevant Minimum  Guarantee as set forth in
         Exhibit 2 attached to this  Agreement  for each  relevant  sales period
         described  in Exhibit 2.  Failure to meet the Minimum  Guarantee on any
         single  occasion  constitutes  a  material  breach  of  this  Agreement
         permitting Biowell to terminate this Agreement after written notice has
         been given to the  Licensee  and the Licensee has been given 60 days to
         comply  with the  relevant  Minimum  Guarantee  not met by  Licensee by
         either  making up the  shortfall  in cash  payable  to  Biowell  or new
         Purchase  Orders  in order to  rectify  any  potential  breach  of this
         agreement.

8.4      Forecast.  Approximately  thirty (30)  Business Days prior to the first
         calendar day of each calendar month during the term of this  Agreement,
         Licensee   will  provide   Biowell  with  a  [six  (6)]  month  binding
         forward-looking  rolling  forecast for internal  planning  requirements
         (the  "Forecast").  Licensee  shall  provide the first of such Forecast
         three (3) months after the signing date of this Agreement.

8.5      Purchase Orders.  Purchases shall be initiated by Licensee's written or
         electronically dispatched Purchase Orders referencing the quantity, the
         Product, applicable price, shipping instructions and requested Delivery
         Dates. All Purchase Orders for Products and Product Materials placed by
         Licensee  hereunder  shall be governed by the terms and  conditions  of
         this  Agreement.  In the event of a conflict  between the provisions of
         this  Agreement and the terms and  conditions  of  Licensee's  Purchase
         Order  or   Biowell's   acknowledgement   or  other   written  or  oral
         communications,  the provisions of this Agreement shall prevail and any
         such  conflicting  terms and  conditions are hereby  rejected.  Biowell
         shall use reasonable efforts to fill orders promptly,  but shall not be
         liable for any damage to  Licensee  or any third  party for  failure to
         fill any  orders,  or for any delay in delivery or error in filling any
         orders. Biowell will use its best efforts to accept each Purchase Order

<PAGE>

         issued by Licensee.  Biowell will ship all Product within the Lead Time
         unless  Licensee's   Purchase  Order  specifically  states  a  delivery
         schedule for Product  different  from such lead time and such  delivery
         schedule is accepted in writing by Biowell.

8.6      Purchase Order  Information.  Purchase Orders issued by Licensee shall,
         to the extent  necessary  for  Biowell to  fulfill  the terms  thereof,
         include:  (i)  description  of  Products  and Product  Materials,  (ii)
         quantity of Products and/or Product Materials,  (iii) price per unit of
         Products and Product  Materials  (iv) total order  price,  (v) Delivery
         Date,  and (vi)  delivery  location.  Except  as  otherwise  explicitly
         provided  in this  Agreement,  any  changes  to or  rescheduling  of an
         accepted Purchase Order must be mutually agreed and incorporated into a
         written Change Order referencing the original Purchase Order.

8.7      Confirmation.  Within five calendar days of its receipt of the Purchase
         Order,  Licensor must send written notice to LICENSEE for acceptance of
         the order ("Confirmation");

8.8      Delivery  Terms.  All  Products  delivered  to  Licensee  shall  be FOB
         (Taipei,  Taiwan,  ROC) or other  place of  shipment  as  specified  in
         writing by Licensee and agreed to by Biowell.  Biowell may ship partial
         orders provided Biowell notifies  Licensee and Licensee agrees prior to
         shipment.  Licensee's Purchase Order shall specify the carrier or means
         of transportation  or routing,  and Biowell will comply with Licensee's
         instructions.  If  Licensee  fails to  provide  shipping  instructions,
         Biowell  shall select the best  available  carrier,  on a  commercially
         reasonable basis.

8.9      Change Orders and  Rescheduling.  Any  modification to a Purchase Order
         shall be made in writing by an  authorized  representative  of Licensee
         ("Change  Order") and sent to Biowell,  and such Change  Order shall be
         subject to  acceptance  in writing by Biowell  and shall not be binding
         until such acceptance.

                     9. Non-competition & Non-solicitation

9.1      During the term of this Agreement,  Biowell shall not solicit Customers
         solely  developed by Licensee.  Upon any termination of this Agreement,
         the  above  restriction  shall  apply for a period of one year with the
         exception of customers  under contract to receive Product from Biowell.
         Biowell  shall be entitled  to a detailed  and  exhaustive  list of all
         contact information for any and all Customers under contract to receive
         Biowell  Products.  This is due to Biowell within five Business Days of
         the date of termination of this Agreement and will follow provisions as
         described in section 2 (2.4).

<PAGE>

9.2      Customers of the Licensee are the sole property of the licensee and are
         not under any restraints or conditions  implied by Biowell and will not
         be contacted or solicited by Biowell for a period of one year following
         any  termination or dissolution of this agreement with the exception of
         2 (2.4).

9.3      Licensee and Biowell shall not,  without the prior written consent from
         the other party directly or indirectly  (including without  limitation,
         through  any  Affiliate  of either  party),  (i) solicit or request any
         person who is at the time an employee of or a  consultant  of the other
         party  to  leave  the   employment   of  or  terminate   such  person's
         relationship  with  that  party  or (ii)  employ,  hire,  engage  or be
         associated  with, or endeavor to entice away from the  respected  party
         any such person.

9.4      Licensee  or  Biowell  shall not,  directly  or  indirectly  (including
         without limitation,  through any Affiliate of either party) (i) solicit
         any  existing  customer  of either  party or any entity that shall have
         been a customer of that party at any time within  twelve (12) months of
         terminating  this agreement to cease doing business in whole or in part
         with that party  (ii)?intentionally  attempt to limit or interfere with
         any business  agreement or relationship  existing  between either party
         and/or its  Affiliates  with any third party;  or (iii)  disparage  the
         business  reputation of the party (or its management  team) or take any
         actions that are harmful to the parties  goodwill  with its  customers,
         providers, vendors, employees, the media or the public.

                              10. Confidentiality

10.1     Licensee  shall not use or divulge or  communicate to any person (other
         than those  whose  province it is to know the same or as  permitted  or
         contemplated  by this  Agreement  or with the  written  approval of the
         other  party  or as may be  required  by  law):  (i)  any  Confidential
         Information ; or (ii) any of the terms of this Agreement

10.2     Licensee  shall prevent the  unauthorised  publication or disclosure of
         any such  information,  materials  or  documents  and  ensure  that any
         person,  subject  to the  written  approval  of  Biowell,  to whom  the
         information,  materials  or documents  are  disclosed is aware that the
         same is  confidential  and is  covered  by a similar  duty to  maintain
         confidentiality.
<PAGE>

10.3     Licensee  shall ensure that its  employees are aware of and comply with
         the  confidentiality  and non-disclosure  provisions  contained in this
         Section and shall  indemnify  Biowell  against any loss or damage which
         Biowell may sustain or incur as a result of any breach of confidence by
         Licensee's employees.

10.4     The provisions of this section 10 shall survive the termination of this
         Agreement with 10 years.

                           11. Reservation of Rights

11.1     Biowell reserves the right at any time:

         (i) to make  modifications  or  additions  to the  Technology,  Product
         Materials, and Products in respect to any designs as Biowell may in its
         discretion  determine;  and such  modifications  or  additions  will be
         automatically  granted  to the  licensee  and  will  be  considered  an
         improvement to the licensed product line;

         (ii) to  discontinue  selling  Product  Materials and Products if those
         products or parts  therefor  are  discontinued  or replaced  except for
         those Products and Product  Materials  accepted to be delivered under a
         confirmed purchase order; and

         (iii)  to  require  Licensee  either  not to use or to cease to use any
         advertising or promotional material in respect to the Product Materials
         and  Products  which  Biowell  considers  not to be in  Biowell's  best
         interests, upon 30 days written notice to licensee.

                             12. Legal Relationship

12.1     Nothing  herein shall  contain any facts as to suggest that Biowell and
         Licensee are engaging in a joint venture or partnership. Licensee shall
         have no  authority to bind  Biowell in any legal  obligation.  Licensee
         shall only contract with customers on its own behalf.

                                13. Termination

         Notwithstanding  anything else contained herein,  this Agreement may be
         terminated.

13.1     Biowell  may  terminate  this  agreement  if the  Licensee:  (a) sells,
         assigns,  attempts  to sell or assign,  or ceases to carry on, its main
         business  or the  business  related to this  Agreement  unless  parties
         mutually  agree  otherwise;  (b)  fails to meet any  Minimum  Guarantee
         target (not including the relevant  Minimum  Guarantee for New Products
         under  Section 1.3,  which shall be subject to Section 13.6) during the
         then current term of the Agreement;  or (c) fails to comply with any of
         its obligations under this Agreement;
<PAGE>

13.2     Immediately by Biowell if the control of Licensee has been  transferred
         without the prior written  approval of Biowell which approval shall not
         be unreasonably denied;

13.3     Immediately  by either if the other party  becomes  insolvent or starts
         negotiations about  re-composition  with its creditors or a petition in
         bankruptcy is filed by or against it or it makes an assignment  for the
         benefit of its creditors;

13.4     by either  party  after  having  given 60 days notice in writing to the
         other party if the other party breach any of its  material  obligations
         under  this   Agreement  and  such  breach  is  not  cured  within  the
         above-mentioned period;

13.5     Licensee shall not be entitled to any compensation (whether for loss of
         distribution  rights,  goodwill  or  otherwise)  as  a  result  of  the
         termination of this Agreement in accordance with its terms.

13.6     Except as otherwise  stated  herein,  in case Biowell has  ground(s) to
         terminate  this  Agreement  because  Licensee  had  failed  to meet any
         Minimum  Guarantee target (not including the relevant Minimum Guarantee
         for New Products under Section 1.3) during the then current term of the
         Agreement, Biowell (in addition to asserting any legal right and remedy
         at law or in equity)  shall have the right to terminate  the  Exclusive
         License  granted in this Agreement in which case such  Agreement  shall
         remain  effective  to  the  extent  that  Licensee  shall  remain  as a
         non-exclusive Licensee, with the same shipping terms and conditions and
         the same price for Products  for  existing  Customers as of the date of
         termination,  but price for the  Products may be increased by up to 10%
         for new Customer  orders only. All other terms and conditions  shall be
         subjected to the Parties'  agreement.  For the  avoidance of any doubt,
         such right to remain as a non-exclusive Licensee shall not be available
         to Licensee in case  Biowell  terminates  this Agr eement for any other
         reason  specified  in  this  agreement.

<PAGE>

13.7.    Remedy of Breach and Alternative to Termination: Licensee shall have 60
         days to remedy/cure any potential  breach or violation of terms in this
         agreement from the date it receives written  notification by courier or
         US mail. Biowell hereby grants to Licensee a special termination-option
         to  convert  its  Licensee  designation  to  that  of  a  non-exclusive
         manufacturer in the event of a non-curable breach. As an alternative to
         forced termination,  Licensee may, at its own discretion, exercise this
         option prior to the initiation of termination. Licensee shall have this
         option available, in lieu of termination for any reason and at its sole
         discretion, to become a non-exclusive  manufacturer of Biowell and/or a
         Licensee for the Products and Technology in the Territory on such terms
         and conditions to be determined by the parties.

                           14. Effect of Termination

         On the termination of this Agreement:

14.1     All rights and obligations of the parties hereunder shall automatically
         terminate  except for such rights of action as shall have accrued prior
         to  such   termination  and  any  obligation   which  expressly  or  by
         implication  are intended to come into or continue in force on or after
         such termination;

14.2     Licensee  shall,  at its own  expense,  return to Biowell or  otherwise
         dispose of as Biowell  may  instruct,  all  technical  and  promotional
         materials and other  documents and papers  whatsoever  sent to Licensee
         and relating to the Technology,  Product  Materials and Products or the
         business of Biowell (other than correspondence between the parties) and
         all property of Biowell in Licensee's possession or under its control.

                           15. Exclusion of Liability

15.1     Except as set out in this Agreement or to the extent prohibited by law,
         all conditions, warranties and representations, expressed or implied by
         (i)  statute,  (ii) civil code or (iii)  otherwise,  in relation to any
         Technology, Product Materials and Products, are excluded by Biowell.

15.2     Except as otherwise  provided in this  Agreement,  Biowell shall not be
         liable  to  Licensee,  whether  for  negligence,  breach  of  contract,
         misrepresentation  or  otherwise,  for:

         (a) loss or damage  incurred  by  Licensee  as a result of third  party
         claims  (whether  in  relation  to  Intellectual   Property  Rights  or
         otherwise); or
<PAGE>

         (b) indirect or consequential  damage suffered by Licensee,  including,
         without limitation,  loss of profits, goodwill, business opportunity or
         anticipated saving.

15.3     Biowell  shall  not be  liable  for  any  loss,  damages,  expenses  or
         liabilities  arising from an  infringement  or claim of infringement of
         third party rights in the  Intellectual  Property Rights  subsisting in
         the Technology,  Product  Materials and Products  howsoever  arising in
         connection with this Agreement.

15.4     Limited Warranty.

         Biowell  warrants  that all  Products  and  Product  Materials  sold by
         Biowell  to  Licensee  under  the  terms  of  this  Agreement  will  be
         materially   free  from  defects  in  workmanship   and  materials  and
         substantially  conform to the relevant  Specifications under normal use
         and service for a period of [ twelve 12 ] months after  delivery to the
         carrier  for  shipment  to  Licensee.  Within  five  Business  Days  of
         Licensee's  receipt of the relevant  Product  Materials  and  Products,
         Licensee  shall  notify  Biowell if any Product  Materials  or Products
         contains a material  defect in materials or  workmanship,  or otherwise
         fails to materially conform to the  Specifications  during the warranty
         period.  Biowell  shall  at its  expense  correct  any such  defect  by
         repairing  such  defective   Product  Materials  and  Products  or,  at
         Biowell's  option,  by  delivering  to Licensee an  equivalent  Product
         Materials and Products  replacing such defective  Product Materials and
         Products.  Biowell may inspect  and verify such  alleged  defect in the
         Territory  and  Licens ee will not need to ship the  alleged  defective
         items to Taiwan.  Such remedies for any breach of warranty as listed in
         this Section 15.4 shall be the sole and exclusive remedies available to
         Licensee at law or in equity.

15.5     WARRANTY EXCLUSIONS.  BIOWELL SHALL NOT BE LIABLE UNDER ANY WARRANTY IF
         ITS TESTING AND  EXAMINATION  DISCLOSES  THAT THE ALLEGED DEFECT IN THE
         PRODUCT OR PRODUCT  MATERIAL DOES NOT EXIST OR WAS CAUSED BY LICENSEE'S
         OR ITS END USER'S MISUSE,  NEGLECT,  IMPROPER  INSTALLATION OR TESTING,
         UNAUTHORIZED  ATTEMPTS TO REPAIR,  OR BY ACCIDENT,  FIRE,  LIGHTNING OR
         OTHER HAZARD.

15.6     Biowell will be liable for the product manufactured by Biowell. Biowell
         will cause such action to take place as  necessary  that will grant the
         representative  the rights to handle  product  liability for clients in
         the territory.  Licensee's customers are not required to go to licensor
         directly  to file a claim  against  product  liability.  Licensee  will
         handle the  liability on behalf of the  licensor.  All expenses in this
         matter shall be paid by licensor or licensor's insure.
<PAGE>

15.7     EXCEPT FOR THE EXPRESS  WARRANTIES  CREATED  UNDER THIS  AGREEMENT  AND
         EXCEPT AS SET FORTH  OTHERWISE  IN THIS  AGREEMENT,  IN NO EVENT  SHALL
         EITHER PARTY BE LIABLE TO THE OTHER FOR ANY INCIDENTAL,  CONSEQUENTIAL,
         SPECIAL OR PUNITIVE  DAMAGES OF ANY KIND OR NATURE  ARISING OUT OF THIS
         AGREEMENT OR THE SALE OF PRODUCTS,  WHETHER SUCH  LIABILITY IS ASSERTED
         ON THE BASIS OF CONTRACT, TORT (INCLUDING THE POSSIBILITY OF NEGLIGENCE
         OR STRICT LIABILITY),  OR OTHERWISE,  EVEN IF THE PARTY HAS BEEN WARNED
         OF THE  POSSIBILITY OF ANY SUCH LOSS OR DAMAGE,  AND EVEN IF ANY OF THE
         LIMITED REMEDIES IN THIS AGREEMENT FAIL OF THEIR ESSENTIAL PURPOSE.

         In no event shall the aggregate liability of Biowell in connection with
         this Agreement,  or any other materials or services provided under this
         Agreement,  whether arising in contract,  tort or under any other legal
         theory (including, without limitation, negligence or strict liability),
         exceed the total value of the relevant Purchase Order.

15.7     Licensee  will not pass  through to its  retailers  or customers or any
         other third party any  warranties  made by Biowell  hereunder  and will
         expressly  indicate to its  retailers or customers  that they must look
         solely to Licensee in connection with any problems,  warranty claims or
         other matters concerning the Product.

                        16. Intellectual Property Rights

16.1     All Intellectual Property Rights, including without limitation patents,
         designs,  utility models,  copyrights trade or service marks, Know-How,
         trade secrets and other proprietary information,  in or relating to the
         Technology,  Product  Materials and Products and any other products and
         services  related  thereto are and shall remain the sole and  exclusive
         property  of Biowell.  Licensee  shall have no right to obtain or grant
         any  licenses  with  respect  to  the  Technology,   Products,  Product
         Materials,  or any other  related  products  or  services or any of the
         Intellectual Property Rights therein or relating thereto.

16.2     Licensee  shall notify  Biowell as soon as it receives any knowledge of
         any illegal or  unauthorized  use of any of the Technology and Products
         or any of the Intellectual  Property Rights therein or relating thereto
         and will  assist  Biowell  (at  Biowell's  expense) in taking all steps
         necessary to defend Biowell's rights therein.

16.3     Licensee shall not in any way: (a) modify,  disassemble,  decompile, or
         reverse engineer the Technology,  Product  Materials,  and Products and
         any related products supplied hereunder; (b) transfer possession of any

<PAGE>

         Technology,  Product  Materials,  and Products and any related products
         supplied  hereunder to another  party,  except as  expressly  permitted
         herein; or (c) use the Technology,  Product Materials, and Products and
         any  related  products  supplied  hereunder  in any way  not  expressly
         provided for this Agreement.  There will be no implied  licenses.

16.4     Subject to the express prior written approval of Biowell,  Licensee may
         use the  trademarks  and  logos  of  Biowell  for the sole  purpose  of
         marketing, reselling and promoting the Products in the Territory under,
         and during the term of, this Agreement.

16.5     The provisions of this section 16 will survive the  termination of this
         Agreement.

                                  17. General

17.1     Governing Law and Dispute Resolution.  This Agreement shall be governed
         by, construed and take effect in accordance with ROC law without regard
         to the choice of law principles thereof. Any dispute,  controversy,  or
         claims  arising out of or relating to this  Agreement  which  cannot be
         resolved within sixty (60) business days shall be exclusively submitted
         to final  resolution by arbitration  pursuant to the Arbitration Law in
         Hong Kong.

17.2     Counterparts and Facsimile Execution. This Agreement may be executed in
         any number of  counterparts,  each of which will be an original but all
         of which together will form one agreement. Delivery of an executed copy
         of this Agreement by facsimile  transmission  will have the same effect
         as delivery of an original signed counterpart.

17.3     Waiver.  The failure of either  party  hereto to insist upon the strict
         adherence to any term of this  Agreement  on any occasion  shall not be
         considered as a waiver of any right hereunder nor shall it deprive that
         party of the right to insist upon the strict  adherence to that term or
         any other term of this Agreement at some other time.

17.4     Taxes & Fees.  Licensee,  and not Biowell,  will be responsible for all
         taxes  and  expenses   incurred  in  Licensee's   business,   including
         Licensee's  business  with  Biowell.  If Licensee is required by law to
         make any  deduction or  withholding  from any payment due  hereunder to
         Biowell,  then,  notwithstanding  anything  in  this  agreement  to the
         contrary,  the gross  amount  payable by Licensee  to Biowell,  will be
         increased so that,  after any such deduction or withholding  for taxes,
         the net amount  received  by  Biowell  will not be less than the amount
         that would have  received had such  deduction or  withholding  not been
         required.

<PAGE>

IN WITNESS  WHEREOF,  the parties  hereto have  executed  this  Agreement in two
copies of which each has received one. Biowell Technology Inc.

Applied DNA Sciences, Inc.

By: /s/ Jun-Jei Sheu                     By: /s/ Larry Lee
----------------------                   -------------------
Name: Jun-Jei Sheu                       Name: Larry Lee
Title: Chairman & CEO                    Title:  President
Date: 24 October 2002                    Date:  07 Oct. 2002

<PAGE>

                                   Exhibit 1
                                   ---------

                                   Territory
                                   ---------
Canada
United States of America
European Union countries

Note:

If a company's  primary  product  outlets are in the  Licensee's  territory  and
represents  more than 50% of its business than the company shall be deemed to be
located in that territory  regardless of the domicile of the companies parent or
corporate  office.  Licensee  shall be  responsible  to provide  Biowell  with a
written notice of such case within 60 days of initiating this relationship.

                                   Exhibit 2
                                   ---------

                               Minimum Guarantee
                               -----------------

To  maintain  the  Exclusive  License  granted in this  Agreement  by Biowell to
Licensee,  Licensee  agrees  to  meet  all of the  following  Minimum  Guarantee
targets:

a)       During the first anniversary of this Agreement, Biowell must receive at
         least US$50,000.00 (net of any taxes or fees of any kind) from Purchase
         Orders   placed  for   Products  or  Product   Materials  by  Licensee.
         Alternatively,  Licensee may meet this Minimum  Guarantee for the first
         year by paying US$25,000 to Biowell.

b)       During the second  anniversary of this Agreement.  Biowell must receive
         at least  US$300,000.00  (net of any  taxes or fees of any  kind)  from
         Purchase  Orders placed for Products or Product  Materials by Licensee.
         Alternatively,  Licensee may meet this Minimum Guarantee for the second
         year by paying US$100,000 to Biowell.

c)       During the third anniversary of this Agreement, Licensee shall increase
         the Minimum Guarantee  amounting to [US$300,000] by at least twenty per
         cent ("Third Year MG Target").

d)       During  the  fourth  anniversary  of  this  Agreement,  Licensee  shall
         increase the Third Year MG Target by at least twenty per cent  ("Fourth
         Year MG Target")

e)       During the fifth anniversary of this Agreement, Licensee shall increase
         the Fourth Year MG Target by at least twenty per cent.

f.)In    the event that  Licensee  complies  with all of the  Minimum  Guarantee
         targets  described in Exhibit 2, this Agreement shall be  automatically
         renewed for five  calendar  years  following  the Initial Term ("Second
         Term"). If the Licensee  continues to maintain its markets and to abide
         by the terms and  conditions of this  agreement  then the Licensee will
         remain at a minimum the non- exclusive Licensee for Biowell 's products
         and both  parties  agree to make all  reasonable  efforts  to allow the
         Licensee to remain as the Exclusive Licensee in its territories .

<PAGE>

                                   Exhibit 3
                                   ---------

                                    Products
                                    --------

(1)      BWACI-C001 Covert AC-Ink-I;

(2)      BWACI-I001 Instant AC-Ink-I;

(3)      BWACL-I001 Instant detection DNA Label

(4)      BWACI-K001 Instant Ink Detection Kit

(5)      BWACC-C001-I AC-DNA Chip (128 bites)

(6)      BWACC-C003-I AC-DNA Chip (64k bytes) (7) BWACC-R001-I AC-Chip Reader

<PAGE>
<TABLE>
<CAPTION>

                                   Exhibit 4
                                   ---------

                    Price for Products and Product Materials
                    ----------------------------------------

Products
numbers                    Items               Weight  Price (USD)  Authentication
------------- -------------------------------  ------  -----------  -----------------
<S>           <C>                              <C>     <C>          <C>
BWACI-I001    Overt ink - Instant detection     1kg        2500     Instant detection
------------- -------------------------------  ------  -----------  -----------------
BWACI-C001    Covert ink                        10g        1000      Send to the lab
------------- -------------------------------  ------  -----------  -----------------
BWACL-I001    Overt label - Instant detection  Piece       0.155    Instant detection
------------- -------------------------------  ------  -----------  -----------------
BWACI-K001    Instant ink detection kit         Kit        0.125            ---
------------- -------------------------------  ------  -----------  -----------------
BWACC-C001-   AC-DNA Chip (128 bites)           ---        3.00     Instant detection
I
------------- -------------------------------  ------  -----------  -----------------
BWACC-C003-   AC-DNA Chip (64k bytes)           ---        5.00     Instant detection
I
------------- -------------------------------  ------  -----------  -----------------
BWACC-R001-
I              AC-DNA Chip Reader               ---       330.00            ---
------------- -------------------------------  ------  -----------  -----------------
</TABLE>

<PAGE>

                                   Exhibit 5
                                   ---------

                               Notice Of Exercise
                               ------------------
To:  Company

The undersigned hereby elects to [check applicable subsection]:

________ (a)      Purchase  _________________  shares of Company  Common  Shares
                  pursuant to the terms of the  Agreement  executed  between the
                  parties  on  [*],  2002  ("Agreement"),  and  payment  of  the
                  Exercise   Price  per  share  required  under  such  Agreement
                  accompanies this notice; OR

________          (b) Exercise  its option for [all of the shares]  [________ of
                  the shares] [cross out inapplicable  phrase] purchasable under
                  the Option pursuant to the Agreement.

The undersigned hereby represents and warrants that the undersigned is acquiring
such shares for its own account for investment purposes only, and not for resale
or with a view to distribution of such shares or any part thereof.

Name in which shares should be registered:______________________

HOLDER:

By:______________________________________
Name:____________________________________
Date:_______________

<PAGE>

                                   Exhibit 6
                                   ---------

                                   Covenants
                                   ---------

(a)      The board of directors of the relevant Company shall duly adopt as soon
         as practicable  after receipt of the Exercise  Notice,  resolutions (i)
         setting forth  amendments  (the  "Amendments")  to the  certificate  of
         incorporation  of the relevant  Company to authorize an increase in the
         authorized  number of shares of common  stock of the  relevant  Company
         equivalent to the Licensee  Option Shares or Biowell Option Shares,  as
         the  case  may be,  (ii)  declare  the  advisability  of such  proposed
         Amendments,  and (iii) direct that the proposed Amendments be submitted
         to the  stockholder(s) of the Company for approval at a special meeting
         of stockholders of the Company called for such purpose.

(b)      the  Company  shall  obtain the  approval  of the  stockholders  of the
         Company with respect to the terms of this Agreement;

(c)      the Company  shall  cause its the  stockholders  to adopt the  proposed
         Amendments;

(d)      Company  shall  prepare,  execute,   acknowledge,  file  and  record  a
         certificate amending the certificate of incorporation of the Company in
         conformity with the proposed Amendments,  and cause such certificate to
         become effective, in accordance with the applicable corporations law;

(e)      the board of directors of the Company shall reserve a sufficient number
         of shares of common stock of the Company for issuance  upon  conversion
         of the relevant option;

(f)      the  Company  shall  secure and obtain from its  creditors  and related
         third parties any and all consents permitting Company to perform all of
         its obligations under this Agreement, including, without limitation the
         issuance of the common  stock of the Company to Holder  pursuant to the
         terms hereof;

(g)      as promptly as reasonably  practicable,  the Company shall instruct its
         transfer agent to issue and deliver to the Holder at the address of the
         Holder set forth on the  Company's  records,  without any charge to the
         Holder,  a  certificate  or  certificates  (issued  in the  name of the
         Holder) for the number of full shares of the Licensee  Option Shares or
         Biowell Option Shares,  as the case may be,  issuable  pursuant to this
         Agreement; and

(h)      Company shall  complete the above  covenants (a) through (g) as soon as
         reasonably practicable, and in any event within thirty (30) days of the
         delivery of the relevant Exercise Notice.

<PAGE>

(i)      Following the exercise of the relevant  option pursuant to Section 4 of
         the   Agreement,   above,   Holder  and  Company  shall  enter  into  a
         shareholders'  agreement  setting  forth  such  materials  terms as the
         holding  period  of the  relevant  shares,  rights  of  first  refusal,
         anti-dilution protections, and other shareholder protection terms.
<PAGE>

                                   Exhibit 7
                                   ---------

                          Representations & Warranties
                          ----------------------------

(a)      Authorization.  Licensee or Biowell (as the case may be), individually,
         has full power and  authority  to enter into this  Agreement,  and this
         Agreement   constitutes  its  valid  and  legally  binding  obligation,
         enforceable  in  accordance  with its terms  except  (i) as  limited by
         applicable  bankruptcy,  insolvency,  reorganization,  moratorium,  and
         other laws of general application  affecting  enforcement of creditors'
         rights   generally  and  (ii)  as  limited  by  laws  relating  to  the
         availability  of  specific  performance,  injunctive  relief,  or other
         equitable remedies.

(b)      Purchase Entirely for Own Account.  The Licensee Option is being issued
         to  Biowell  and the  Biowell  Option is being  issued to  Licensee  in
         reliance  upon the  relevant  Holder's  representation  to the relevant
         Company, which by such Holder's execution of this Agreement such Holder
         hereby  confirms,  that the relevant  option,  and the relevant  option
         shares to be received by such  Holder upon  exercise of the  respective
         option ("Securities") will be acquired for investment for such Holder's
         own  account,  not as a nominee  or  agent,  and not with a view to the
         resale or distribution of any part thereof, and that such Holder has no
         present  intention  of  selling,  granting  any  participation  in,  or
         otherwise  distributing  the same. By executing  this  Agreement,  such
         Holder further  represents that such Holder does not have any contract,
         undertaking, agreement or arrangement with any person to sell, transfer
         or grant  participations  to such person or to any third  person,  with
         respect to any of the Securities.

(c)      Disclosure of Information.  Licensee and Biowell individually,  further
         represents to the other respective party that it has had an opportunity
         to ask  questions  and receive  answers from the Company  regarding the
         terms  and  conditions  of the  offering  of  the  Securities  and  the
         business, properties, prospects and financial condition of the Company.

(d)      Investment  Experience.  Licensee  and Biowell,  individually,  further
         represents  to the other  respective  party that it is an  investor  in
         securities of companies in the development  stage and acknowledges that
         it is able to fend  for  itself,  can  bear  the  economic  risk of its
         investment,  and has such  knowledge  and  experience  in  financial or
         business  matters that it is capable of evaluating the merits and risks
         of the investment in the Securities.

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