Document:

<PAGE>

                                                                    EXHIBIT 10.1

      Confidential Treatment Requested.  *** indicates material has been omitted
      pursuant to a Confidential Treatment Request filed with the Securities and
      Exchange Commission. A complete copy of this agreement has been filed
      separately with the Securities and Exchange Commission.

                          EXCLUSIVE LICENSE AGREEMENT

  Re: Baylor OTA # 04-107 Entitled "Serum Proteomic Methods and Biomarkers for
      Diagnosis of Neurodegenerative Disease and Differential Diagnosis of
      Alzheimer's, Parkinson's Lou Gehrig's (ALS) Diseases, and other Motor
      Neuron and Neurological Disorders"

      This Exclusive License Agreement (hereinafter called "Agreement"), to be
effective as of the 28th day of June, 2004 (hereinafter called "Agreement
Date"), is by and between Baylor College of Medicine (hereinafter called
"BAYLOR"), a Texas nonprofit corporation having its principal place of business
at One Baylor Plaza, Houston, Texas 77030, and Power3 Medical Products, Inc., a
corporation organized under the laws of New York and having a principal place of
business at 3400 Research Forest Drive, Suite B2-3, The Woodlands, Texas 77381,
and its Affiliates (hereinafter, collectively referred to as "LICENSEE").

      WITNESSETH:

      WHEREAS, BAYLOR and LICENSEE each own an undivided interest in and to the
Patent Rights as defined below; and

      WHEREAS, BAYLOR is willing to grant a royalty bearing, worldwide,
exclusive license to the Patent Rights to LICENSEE on the terms set forth
herein; and

      WHEREAS, LICENSEE desires to obtain said exclusive license under the
Patent Rights.

      NOW, THEREFORE, for and in consideration of the premises and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties hereto expressly agree as follows:

1.    DEFINITIONS AS USED HEREIN

      1.1 The term "Affiliates" shall mean any corporation, partnership, joint
venture or other entity of which the common stock or other equity ownership
thereof is twenty five percent (25%) or more owned by LICENSEE.

      1.2 The term "Confidential Information" shall mean all information
relating to the business of a Party that is not available to the general public,
including but not limited to its technical and business information, products,
assets, inventions, know-how, research programs, biological materials, software,
trade secrets, designs, personnel, financial condition, business plans or
prospects, protocols, clinical parameters or markers and other information
associated with this Agreement, whether or not patentable or copyrightable,
delivered or communicated to the other Party.

      Confidential Information includes not only written information, but
information transferred orally, visually, electronically or by any other means,
that is designated as being confidential. Confidential Information also includes
any copies, notes or summaries prepared from the Confidential Information
provided by either Party.

      1.3 The term "Field" shall mean all fields.

                                      -1-
<PAGE>

                                                                    EXHIBIT 10.1

      1.4 The term "Inventors" shall mean Stanley Appel, Ericka Simpson and
Albert Yen, employees of BAYLOR, and Ira Goldknopf and Essam Sheta, employees of
LICENSEE.

      1.5 The term "Legal Costs" shall mean all legal fees and expenses, filing
or maintenance fees, assessments and all other costs and expenses related to
prosecuting, obtaining and maintaining patent protection on the Patent Rights in
the United States and foreign countries.

      1.6 The term "Licensed Product(s)" shall mean any product, process or
service that incorporates, utilizes or is made with the use of the Patent
Rights.

      1.7 The term "Net Sales" shall mean the gross amount of monies or cash
equivalent or other consideration which is paid by unrelated third parties to
LICENSEE or sublicensees for the Licensed Products by sale or other mode of
transfer, less all trade, quantity and cash discounts actually allowed, credits,
and allowances actually granted on account of rejections, returns or billing
errors, duties, transportation and insurance, taxes and other governmental
charges actually paid. The term "Net Sales" in the case of non-cash sales, shall
mean the fair market value of all equivalent or other consideration received by
LICENSEE for the Licensed Products.

      1.8 The term "Party" shall mean either LICENSEE or BAYLOR, and "Parties"
shall mean LICENSEE and BAYLOR.

      1.9 The term "Patent Rights" shall mean United States Patent Application
Serial No. TBA, entitled "Biomarkers for Neurodegenerative Disease," filed TBA,
which was developed by the Inventors, the inventions described and claimed
therein, and all other pending United States patent applications or parts
thereof and any United States patent which issues from any such pending
applications and any and all divisions, reissues, re-examinations, renewals,
continuations, continuations-in-part to the extent the claims are directed to
subject matter specifically described in the aforementioned patent application
and are dominated by the claims of the existing Patent Rights, and extensions
thereof, and all other counterpart, pending or issued patents in all other
countries.

      1.10 The term "Sublicensing Revenue" shall mean all (i) cash, (ii)
sublicensing fees and (iii) all other payments and the cash equivalent thereof,
which are paid to LICENSEE by the sublicensees of its rights hereunder, other
than research and development money paid to LICENSEE to conduct research.

2.    GRANT OF LICENSE

      2.1 Subject to the reservations of rights set forth in Paragraph 2.2,
BAYLOR hereby grants to LICENSEE an exclusive, worldwide, sublicensable license
under the Patent Rights to make, have made, use, market, sell, offer to sell,
lease and import Licensed Products in the Field.

      2.2 The grant in Section 2.1 shall be further subject to, restricted by
and non-exclusive with respect to:

(i) the making or use of the Patent Rights by BAYLOR for non-commercial
research, patient care, teaching and other educationally related purposes;

(ii) the making or use of the Patent Rights by the BAYLOR Inventors for
non-commercial research purposes at academic or research institutions;

(iii) any non-exclusive license of the Patent Rights that BAYLOR grants to other
academic or research institutions for non-commercial research purposes; and

                                      -2-
<PAGE>

                                                                    EXHIBIT 10.1

(iv) any non exclusive license of the Patent Rights that BAYLOR is required by
law or regulation to grant to the United States of America or to a foreign state
pursuant to an existing or future treaty with the United States of America.

      2.3 Government Reservation. Rights under this Agreement are subject to
rights required to be granted to the Government of the United States of America
pursuant to 35 USC Section 200-212, including a nonexclusive, nontransferable,
irrevocable, paid-up license to practice or have practiced for or on behalf of
the United States the subject inventions throughout the world.

3.    MARKETING EFFORTS

      LICENSEE shall use reasonable efforts, as defined herein, to effect
assiduously the introduction of Licensed Products into the commercial market as
soon as practicable. Such efforts shall include, but not be limited to: (i)
diligence in the patent filings and prosecution as described in Section 8 and
(ii) working with Dr. Stan Appel to increase the clinical data and relevance of
the diagnostic processes.

4.    PAYMENTS

      4.1 As partial consideration for the rights conveyed by BAYLOR under this
Agreement, LICENSEE shall pay BAYLOR a license fee of *** upon execution of this
Agreement.

      4.2 In addition to the foregoing, LICENSEE shall pay BAYLOR a royalty of
***. Such royalties shall be payable as provided in Section 5.

      4.3 After the first commercial sale, if the royalties paid in any calendar
year do not reach the minimum amount of ***, LICENSEE shall pay an additional
amount with the payment due for the period ending December 31 of such year, so
that the total amount paid for such year shall reach such minimum amount.

      4.4 LICENSEE shall also pay BAYLOR the following milestone payment set
forth below:

(i) ***

LICENSEE shall notify BAYLOR in writing within thirty (30) days upon the
achievement of the milestone, such notice to be accompanied by payment of the
appropriate milestone payment. Milestones are to be paid regardless of whether
LICENSEE or LICENSEE's sublicensee attains such milestone.

      4.5 In addition to the foregoing fees and royalties, LICENSEE agrees to
pay to BAYLOR ***.

      4.6 LICENSEE will be responsible for all Legal Costs incurred after the
Agreement Date.

      4.7 Should LICENSEE fail to make any payment whatsoever due and payable to
BAYLOR hereunder, BAYLOR may, at its sole option, terminate this Agreement as
provided in Section 10.

                                      -3-
<PAGE>

                                                                    EXHIBIT 10.1

5.    REPORTING

      5.1 No later than sixty (60) days after December 31 of each calendar year,
LICENSEE shall provide to BAYLOR a written annual Progress Report describing
progress on research and development, regulatory approvals, manufacturing,
sublicensing, marketing and sales during the most recent twelve (12) month
period ending December 31 and plans for the forthcoming year. If multiple
technologies are covered by the license granted hereunder, the Progress Report
shall provide the information set forth above for each technology. LICENSEE
shall also provide any reasonable additional data BAYLOR requires to evaluate
LICENSEE's performance.

      5.2 LICENSEE shall report to BAYLOR the date of first sale of Licensed
Products in each country within thirty (30) days of occurrence.

      5.3 LICENSEE shall submit to BAYLOR within thirty (30) days after March
31, June 30, September 30 and December 31, a Royalty Report setting forth for
such calendar quarter at least the following information:

(i) the number of Licensed Products sold by LICENSEE and sublicensees in each
country;

(ii) total billings for such Licensed Products;

(iii) deductions applicable to determine the Net Sales thereof;

(iv) the amount of Sublicensing Revenue received by LICENSEE;

(v) the amount of royalty due thereon, or, if no royalties are due to BAYLOR for
any reporting period, the statement that no royalties are due; and

(vi) the amount of other payments due BAYLOR, including but not limited to,
milestone payments and minimum royalty payments.

      Such report shall be certified as correct by an officer of LICENSEE and
shall include a detailed listing of all deductions from royalties and other
payments. After termination or expiration of this Agreement, a final payment
shall be made by LICENSEE covering the whole or partial calendar quarter.

      5.4 LICENSEE shall pay to BAYLOR with each such Royalty Report the amount
of royalties and other payments due with respect to such calendar quarter. If
multiple technologies are covered by the license granted hereunder, LICENSEE
shall specify which Patent Rights are utilized for each Licensed Product
included in the Royalty Report by citing the applicable OTA NUMBER listed on the
front page of the Agreement.

      5.5 All payments due hereunder shall be deemed received when funds are
credited to BAYLOR's bank account and shall be payable by check or wire transfer
in United States dollars. For sales of Licensed Products in currencies other
than the United States, LICENSEE shall use exchange rates published in The Wall
Street Journal on the last business day of the calendar quarter that such
payment is due. No transfer, exchange, collection or other charges, INCLUDING
ANY WIRE TRANSFER FEES, shall be deducted from such payments.

      5.6 Late payments shall be subject to a charge of one and one-half percent
(1.5%) per month, the interest being compounded annually, or two hundred fifty
dollars ($250.00), whichever is greater. LICENSEE shall calculate the correct
late payment charge, and shall add it to each such late payment.

                                      -4-
<PAGE>

                                                                    EXHIBIT 10.1

Said late payment charge and the payment and acceptance thereof shall not negate
or waive the right of BAYLOR to seek any other remedy, legal or equitable, to
which it may be entitled because of the delinquency of any payment.

      5.7 If payments are sent by check, they shall be sent to the address
listed in Paragraph 14.1. If payments are sent by wire transfer, they shall be
sent using the wiring instructions sent by BAYLOR.

      5.8 In the event of acquisition, merger, change of corporate name, or
change of make-up, organization, or identity, LICENSEE shall notify BAYLOR in
writing within thirty (30) days of such event.

      5.9 If LICENSEE or sublicensee (or optionee) does not qualify as a "small
entity" as provided by the United States Patent and Trademark Office, LICENSEE
must notify BAYLOR immediately.

6.    RECORDS AND INSPECTION

      LICENSEE shall maintain or cause to be maintained a true and correct set
of records pertaining to the Net Sales of Licensed Products by LICENSEE under
this Agreement. During the term of this Agreement and for a period of two (2)
years thereafter, LICENSEE agrees to permit an accountant selected and paid by
BAYLOR and reasonably acceptable to LICENSEE to have access during ordinary
business hours to such records as are maintained by LICENSEE as may be
necessary, in the opinion of such accountant, to determine the correctness of
any report and/or payment made under this Agreement. In the event that the audit
reveals an underpayment of royalty by more than five percent (5%), the cost of
the audit shall be paid by LICENSEE. If the underpayment is less than five
percent (5%) but more than two percent (2%), LICENSEE and BAYLOR shall each pay
fifty percent (50%) of the cost of the independent audit. Such accountant shall
maintain in confidence, and shall not disclose to BAYLOR, any information
concerning LICENSEE or its operations or properties other than information
directly relating to the correctness of such reports and payments. BAYLOR will
be entitled to no more than one examination per year without LICENSEE's written
consent.

7.    SUBLICENSES

      All sublicensee granted by LICENSEE of its rights hereunder shall be
subject to the terms of this Agreement. LICENSEE shall be responsible for its
sublicensees and shall not grant any rights which are inconsistent with the
rights granted to and obligations of LICENSEE hereunder. Any act or omission of
a sublicensee which would be a breach of this Agreement if performed by LICENSEE
shall be deemed to be a breach by LICENSEE of this Agreement. Each sublicense
agreement granted by LICENSEE shall include an audit right by BAYLOR of the same
scope as provided in Section 6 hereof with respect to LICENSEE. No such
sublicense agreement shall contain any provision which would cause it to extend
beyond the term of this Agreement. LICENSEE shall give BAYLOR prompt
notification of the identity and address of each sublicensee with whom it
concludes a sublicense agreement and shall supply BAYLOR with a copy of each
such sublicense agreement.

8.    PATENTS AND INFRINGEMENT

      8.1 From the Agreement Date and for the term of this Agreement, LICENSEE
shall have primary responsibility using patent counsel of its choice reasonably
acceptable to BAYLOR for filing, prosecuting and maintaining all patent
applications and patents included in the Patent Rights licensed hereunder,
except that BAYLOR may assume responsibility at its sole expense for pursuing
any protection which LICENSEE declines to prosecute pursuant to Paragraph 8.2 of
this Agreement.

                                      -5-
<PAGE>

                                                                    EXHIBIT 10.1

      8.2 During the term of this Agreement, if LICENSEE decides not to file any
or all United States and foreign applications or to continue prosecution of a
patent application to issuance or maintain any United States or foreign patent
application or patent, LICENSEE shall timely notify BAYLOR in writing in order
that BAYLOR may file the United States and foreign applications and continue the
prosecution or maintenance of such patent applications at its own expense. If
LICENSEE fails to notify BAYLOR in sufficient time for BAYLOR to assume the
cost, LICENSEE shall be considered in default of this Agreement.

      8.3 During the term of this Agreement, LICENSEE agrees to prosecute with
good faith and due diligence all such patent applications and to take all
actions reasonably necessary to maintain and enforce the patents and proprietary
rights in and to the Patent Rights.

      8.4 During the term of this Agreement LICENSEE shall instruct counsel for
LICENSEE to keep BAYLOR reasonably informed, at LICENSEE's expense, of
prosecutions pursuant to this Section 8 including submitting to BAYLOR copies of
all official actions and responses thereto.

      8.5 BAYLOR agrees to cooperate with LICENSEE to whatever extent is
necessary to procure patent protection of any rights, including fully agreeing
to execute any and all documents to give LICENSEE the full benefit of the
licenses granted herein.

      8.6 During the term of this Agreement, each Party shall promptly inform
the other of any suspected infringement of any claims in the Patent Rights or
the misuse, misappropriation, theft or breach of confidence of other proprietary
rights in the Patent Rights by a third party, and with respect to such
activities as are suspected. Any action or proceeding against such third party
shall be instituted as following:

(i) BAYLOR and LICENSEE may agree to jointly institute an action for
infringement, misuse, misappropriation, theft or breach of confidence of the
proprietary rights against such third party. Such joint action shall be brought
in the names of both BAYLOR and LICENSEE. If BAYLOR or LICENSEE decide to
jointly prosecute an action or proceeding after it has been instituted by one
Party, the action shall be continued in the name or names they both agree is
expedient for efficient prosecution of such action. LICENSEE and BAYLOR shall
agree to the manner in which they shall exercise control over any joint action
or proceeding, providing however that if they cannot agree BAYLOR shall have the
right to unilaterally decide on control. In such joint action or proceeding, the
out-of-pocket costs shall be borne equally, and any recovery or settlement shall
be shared equally.

(ii) If LICENSEE does not agree to participate in a joint action or proceeding
then BAYLOR shall have the right, but not the obligation, to institute an action
for infringement, misuse, misappropriation, theft or breach of confidence of the
proprietary rights against such third party. If BAYLOR elects to institute
action, it does so at its own cost. If BAYLOR fails to bring such an action or
proceeding within a period of three (3) months after receiving notice or
otherwise having knowledge of such infringement, then LICENSEE shall have the
right, but not the obligation, to prosecute the same at its own expense. Should
either BAYLOR or LICENSEE commence suit under the provisions of this Paragraph
8.6 and thereafter elect to abandon the same, it shall give timely notice to the
other Party who may, if it so desires, continue prosecution of such action or
proceeding. All recoveries, whether by judgment, award, decree or settlement,
from infringement or misuse of Patent Rights shall be apportioned as follows:
(a) the Party bringing the action or proceeding shall first recover an amount
equal the costs and expenses incurred by such Party directly related to the
prosecution of such action or proceeding, (b) the Party cooperating in such
action or proceeding shall then recover costs and expenses incurred by such
Party directly related to its cooperation in the prosecution of such action or
proceeding and (c) the remainder shall be divided equally between LICENSEE and
BAYLOR.

                                      -6-
<PAGE>

                                                                    EXHIBIT 10.1

      8.7 Neither BAYLOR nor LICENSEE shall settle any action covered by
Paragraph 8.6 without first obtaining the consent of the other Party, which
consent will not be unreasonably withheld.

      8.8 BAYLOR shall not be liable for any losses incurred as the result of an
action for infringement brought against LICENSEE as the result of LICENSEE's
exercise of any right granted under this Agreement. The decision to defend or
not defend shall be in LICENSEE's sole discretion.

9.    TERM AND EXPIRATION

      Unless sooner terminated as otherwise provided in Section 10, the license
to employ Patent Rights granted herein as part of Section 2 shall expire on a
country-by-country basis, on the later of (i) the date of expiration of the last
of the Patent Rights to expire or (ii) in the event no patents included within
the Patent Rights issue in such country, the first date following the tenth
(10th) anniversary of the first commercial sale of Licensed Products by LICENSEE
in such country. After such expiration, LICENSEE shall have a perpetual,
paid-in-full (i.e., royalty free) license in such country.

10.   TERMINATION

      10.1 In the event of default or failure by LICENSEE to perform any of the
terms, covenants or provisions of this Agreement, LICENSEE shall have thirty
(30) days after the giving of written notice of such default by BAYLOR to
correct such default. If such default is not corrected within the said thirty
(30) day period, BAYLOR shall have the right, at its option, to cancel and
terminate this Agreement. The failure of BAYLOR to exercise such right of
termination, for non-payment of royalties/fees or otherwise, shall not be deemed
to be a waiver of any right BAYLOR might have, nor shall such failure preclude
BAYLOR from exercising or enforcing said right upon any subsequent failure by
LICENSEE.

      10.2 BAYLOR shall have the right, at its option, to cancel and terminate
this Agreement in the event that LICENSEE shall (i) become involved in
insolvency, dissolution, bankruptcy or receivership proceedings affecting the
operation of its business or (ii) make an assignment of all or substantially all
of its assets for the benefit of creditors, or in the event that (iii) a
receiver or trustee is appointed for LICENSEE and LICENSEE shall, after the
expiration of thirty (30) days following any of the events enumerated above,
have been unable to secure a dismissal, stay or other suspension of such
proceedings.

      10.3 LICENSEE shall have the right in its sole discretion to terminate
this Agreement upon sixty (60) days' written notice to BAYLOR.

      10.4 In the event of termination of this Agreement, all rights in the
Patent Rights conveyed by BAYLOR to LICENSEE shall automatically revert to
BAYLOR, and BAYLOR shall be free to license such rights to third parties.

      10.5 LICENSEE shall provide, in all sublicenses granted by it under this
Agreement, that LICENSEE's interest in such sublicenses shall, at BAYLOR's
option, terminate or be assigned to BAYLOR upon termination of this Agreement.

      10.6 In the event this Agreement is terminated pursuant to this Section
10, or expires as provided for in Section 9, BAYLOR is under no obligation to
refund any payments made by LICENSEE to BAYLOR, as set forth in Section 4, prior
to the effective date of such termination or expiration.

                                      -7-
<PAGE>

                                                                    EXHIBIT 10.1

      10.7 No termination of this Agreement shall constitute a termination or a
waiver of any rights of either Party against the other Party accruing at or
prior to the time of such termination. The obligations of Sections 6, 7, 13, 15
and 16 shall survive termination of this Agreement.

11.   ASSIGNABILITY

      LICENSEE may assign this Agreement as part of:

(i) A sale or other transfer of LICENSEE's entire business; or

(ii) A sale or other transfer of that part of LICENSEE's business to which the
license granted hereby relates;

and upon payment by LICENSEE to BAYLOR of an assignment fee of ***. LICENSEE
shall give BAYLOR thirty (30) days prior written notice of such assignment,
including the new contact information of assignee. BAYLOR, however, shall not be
deemed to have approved such assignment and transfer unless and until such
assignee has agreed in writing to BAYLOR to be bound by all the terms and
provisions of this Agreement and BAYLOR has received the assignment fee as
specified above, in which event LICENSEE shall be released of liability
hereunder. Upon such assignment of this Agreement by such assignee, the term "
LICENSEE" as used herein shall include such assignee.

12.   GOVERNMENTAL COMPLIANCE

      12.1 LICENSEE shall at all times during the term of this Agreement and for
so long as it shall use the Patent Rights, or sell Licensed Products, comply and
cause its sublicensees to comply with all laws that may control the import,
export, manufacture, use, sale, marketing, distribution and other commercial
exploitation of the Patent Rights, Licensed Products or any other activity
undertaken pursuant to this Agreement.

      12.2 LICENSEE agrees that Licensed Products leased or sold in the United
States shall be manufactured substantially in the United States.

13.   ARBITRATION

      13.1 Amicable Resolution. The Parties shall attempt to settle any
controversy between them amicably. To this end, a senior executive from each
Party shall consult and negotiate to reach a solution. The Parties agree that
the period of amicable resolution shall toll any otherwise applicable statute of
limitations. However, nothing in this clause shall preclude any Party from
commencing mediation if said negotiations do not result in a signed written
settlement agreement within thirty (30) days after written notice that these
amicable resolution negotiations have commenced.

      13.2 Mediation. If a controversy arises out of or relates to this
agreement, or the breach thereof, and if the controversy cannot be settled
through amicable resolution, the Parties agree to try in good faith to settle
the controversy by mediation before resorting to final and binding arbitration.
The Party seeking mediation shall propose five mediators, each of whom shall be
a lawyer licensed to practice by the state of Texas, having practiced actively
in the field of commercial law for at least fifteen (15) years, to the other
Party who shall select the mediator from the list. The Parties shall split the
cost of the mediator equally. The Parties agree that the period of mediation
shall toll any otherwise applicable statute of limitations. However, nothing in
this clause shall preclude any Party from commencing arbitration if said
negotiations do not result in a signed written settlement agreement within sixty
(60) days after written notice that amicable resolution negotiations have
commenced.

                                      -8-
<PAGE>

                                                                    EXHIBIT 10.1

      13.3 Arbitration. Any dispute, controversy, or claim arising out of or
relating to this Agreement, or the breach, termination or invalidity thereof,
including claims for tortious interference or other tortious or statutory claims
arising before, during or after termination, providing only that such claim
touches upon matters covered by this Agreement shall be finally settled by
arbitration administered by the American Arbitration Association pursuant to the
Commercial Arbitration Rules in force at the time of the commencement of the
arbitration, except as modified by the specific provisions of this Agreement. It
is the specific intent of the Parties that this arbitration provision is
intended to be the broadest form allowed by law.

      13.4 Parties to Arbitration. This agreement to arbitrate is intended to be
binding upon the signatories hereto, their principals, successors, assigns,
subsidiaries and affiliates. This agreement to arbitrate is also intended to
include any disputes, controversy or claims against any Party's employees,
agents, representatives, or outside legal counsel arising out of or relating to
matters covered by this Agreement or any agreement in which this Agreement is
incorporated.

      13.5 Consolidation Permitted. The Parties expressly agree that any court
with jurisdiction may order the consolidation of any arbitrable controversy
under this Agreement with any related arbitrable controversy not arising under
this Agreement, as the court may deem necessary in the interests of justice or
efficiency or on such other grounds as the court may deem appropriate.

      13.6 Entry of Judgment. The Parties agree that a final judgment on the
arbitration award may be entered by any court having jurisdiction thereof.

      13.7 Appointing Arbitrators. The American Arbitration Association shall
appoint the arbitrator(s) from its Large, Complex Claims Panel. If such
appointment cannot be made from the Large, Complex Claims Panel, then from its
Commercial Panel. The Parties hereby agree to and acquiesce in any appointment
of an arbitrator or arbitrators that may be made by such appointing authority.

      13.8 Qualifications of the Arbitrator(s). The arbitrator(s) must be a
lawyer, having practiced actively in the field of commercial law for at least
fifteen (15) years.

      13.9 Governing Substantive Law. The arbitrator(s) shall determine the
rights and obligations of the Parties according to the substantive laws of the
State of Texas (excluding conflicts of law principles) as though acting as a
court of the State of Texas.

      13.10 Governing Arbitration Law. The law applicable to the validity of the
arbitration clause, the conduct of the arbitration, including any resort to a
court for provisional remedies, the enforcement of any award and any other
question of arbitration law or procedure shall be the Federal Arbitration Act.

      13.11 Governing Convention. The Parties elect to have the New York
Convention on the Recognition and Enforcement of Foreign Arbitral Awards of June
10, 1958 (instead of the Inter-American New York Convention on International
Commercial Arbitration of August 15, 1990) govern any and all disputes that may
be the subject of arbitration pursuant to this Agreement.

      13.12 Preliminary Issues of Law. The arbitrator(s) shall hear and
determine any preliminary issue of law asserted by a Party to be dispositive of
any claim, in whole or part, in the manner of a court hearing a motion to
dismiss for failure to state a claim or for summary judgment, pursuant to such
terms and procedures as the arbitrator(s) deems appropriate.

      13.13 Confidentiality. The Parties and the arbitrator(s) shall treat all
aspects of the arbitration proceedings, including without limitation discovery,
testimony and other evidence, briefs and the award,

                                      -9-
<PAGE>

                                                                    EXHIBIT 10.1

as strictly confidential. Further, except as may be required by law, neither
Party nor the arbitrator(s) may disclose the existence, content, or results of
any arbitration hereunder without the prior written consent of both Parties.

      13.14 Place of Arbitration. The seat of arbitration shall be Houston,
Texas, USA.

      13.15 Language. The arbitration shall be conducted in the English
language. All submissions shall be made in English or with an English
translation. Witnesses may provide testimony in a language other than English,
provided that a simultaneous English translation is provided. Each Party shall
bear its own translation costs.

      13.16 Punitive Damages Prohibited. The Parties hereby waive any claim to
any damages in the nature of punitive, exemplary, or statutory damages in excess
of compensatory damages, or any form of damages in excess of compensatory
damages, and the arbitrator(s) is/are specially divested of any power to award
any damages in the nature of punitive, exemplary, or statutory damages in excess
of compensatory damages, or any form of damages in excess of compensatory
damages.

      13.17 Costs. The Party prevailing on substantially all of its claims shall
be entitled to recover its costs, including attorneys' fees, for the arbitration
proceedings, as well as for any ancillary proceeding, including a proceeding to
compel or enjoin arbitration, to request interim measures or to confirm or set
aside an award.

      13.18 Survival. The provisions of this Section 13 shall survive expiration
or termination of this Agreement.

14.   ADDRESSES

      14.1 All payments shall be made payable to "Baylor College of Medicine"
and shall be sent to the address below, and shall reference OTA # 04-107.

      BAYLOR Tax ID #: 74-1613878
      Director, Baylor Licensing Group
      Baylor College of Medicine
      One Baylor Plaza, BCM210-600D
      Houston, TX 77030

      14.2 All notices, reports or other communication pursuant to this
Agreement shall be sent to such Party via (i) United States Postal Service
postage prepaid, (ii) overnight courier, or (iii) facsimile transmission,
addressed to it at its address set forth below or as it shall designate by
written notice given to the other Party. Notice shall be sufficiently made, or
given and received (a) on the date of mailing or (b) when a facsimile printer
reflects transmission.

                                      -10-
<PAGE>

                                                                    EXHIBIT 10.1

      In the case of BAYLOR:
      Patrick Turley
      Associate General Counsel
      Baylor College of Medicine
      One Baylor Plaza, BCM210-600D
      Houston, TX 77030

      Facsimile No. 713-798-1252

      In the case of LICENSEE:
      Power3 Medical Products, Inc.
      3400 Research Forest Drive, Suite B2-3
      The Woodlands, TX 77381

      Facsimile No. 281-395-0881

      14.3 Each such report, notice or other communication shall reference OTA #
04-107.

15.   INDEMNITY, INSURANCE & WARRANTIES

      15.1 INDEMNITY. EACH PARTY SHALL NOTIFY THE OTHER OF ANY CLAIM, LAWSUIT OR
OTHER PROCEEDING RELATED TO THE PATENT RIGHTS. LICENSEE AGREES THAT IT WILL
DEFEND, INDEMNIFY AND HOLD HARMLESS BAYLOR, ITS FACULTY MEMBERS, SCIENTISTS,
RESEARCHERS, EMPLOYEES, OFFICERS, TRUSTEES AND AGENTS AND EACH OF THEM (THE
"INDEMNIFIED PARTIES"), FROM AND AGAINST ANY AND ALL CLAIMS, CAUSES OF ACTION,
LAWSUITS OR OTHER PROCEEDINGS (THE "BAYLOR CLAIMS") FILED OR OTHERWISE
INSTITUTED AGAINST ANY OF THE INDEMNIFIED PARTIES RELATED DIRECTLY OR INDIRECTLY
TO OR ARISING OUT OF THE DESIGN, PROCESS, MANUFACTURE OR USE BY ANY PERSON OR
PARTY OF THE PATENT RIGHTS, LICENSED PRODUCTS OR ANY OTHER EMBODIMENT OF THE
PATENT RIGHTS EVEN THOUGH SUCH BAYLOR CLAIMS AND THE COSTS (INCLUDING, BUT NOT
LIMITED TO, THE PAYMENT OF ALL REASONABLE ATTORNEYS' FEES AND COSTS OF
LITIGATION OR OTHER DEFENSE) RELATED THERETO RESULT IN WHOLE OR IN PART FROM THE
NEGLIGENCE OF ANY OF THE INDEMNIFIED PARTIES OR ARE BASED UPON DOCTRINES OF
STRICT LIABILITY OR PRODUCT LIABILITY; PROVIDED, HOWEVER, THAT SUCH INDEMNITY
SHALL NOT APPLY TO ANY BAYLOR CLAIMS ARISING FROM THE GROSS NEGLIGENCE OR
INTENTIONAL MISCONDUCT OF ANY INDEMNIFIED PARTY. LICENSEE WILL ALSO ASSUME
RESPONSIBILITY FOR ALL COSTS AND EXPENSES RELATED TO SUCH BAYLOR CLAIMS FOR
WHICH IT IS OBLIGATED TO INDEMNIFY THE INDEMNIFIED PARTIES PURSUANT TO THIS
PARAGRAPH 15.1, INCLUDING, BUT NOT LIMITED TO, THE PAYMENT OF ALL REASONABLE
ATTORNEYS' FEES AND COSTS OF LITIGATION OR OTHER DEFENSE.

                                      -11-
<PAGE>

                                                                    EXHIBIT 10.1

      15.2 Insurance.

(i) LICENSEE shall, for so long as LICENSEE manufactures, uses or sells any
Licensed Product(s) for research applications, maintain in full force and effect
policies of (a) worker's compensation insurance within statutory limits, (b)
employers' liability insurance with limits of not less than one million dollars
($1,000,000) per occurrence and (c) general liability insurance with limits of
not less than two million dollars ($2,000,000) per occurrence with an annual
aggregate of two million dollars ($2,000,000).

(ii) During any period in which LICENSEE manufactures, uses or sells any
Licensed Product(s) for clinical applications, LICENSEE shall immediately notify
BAYLOR in writing, and LICENSEE shall maintain in full force and effect policies
of (i) worker's compensation insurance within statutory limits, (b) employers'
liability insurance with limits of not less than one million dollars
($1,000,000) per occurrence, (c) general liability insurance (with Broad Form
General Liability endorsement) with limits of not less than five million dollars
($5,000,000) per occurrence with an annual aggregate of ten million dollars
($10,000,000) and (d) products liability insurance, with limits of not less than
ten million dollars ($10,000,000) per occurrence with an annual aggregate of
twenty million dollars ($20,000000).

(iii) During any period in which LICENSEE manufactures or uses any Licensed
Product(s) in clinical trials, LICENSEE shall immediately notify BAYLOR in
writing, and LICENSEE shall maintain in full force and effect a clinical trial
insurance policy with limits of not less than five million dollars ($5,000,000)
per occurrence with an annual aggregate of ten million dollars ($10,000,000).

(iv) Such coverage(s) shall be purchased from a carrier or carriers having an A.
M. Best rating of at least A- (A minus) and shall name BAYLOR as an additional
insured. LICENSEE shall provide to BAYLOR copies of certificates of insurance
within thirty (30) days after execution of this Agreement. Upon request by
BAYLOR, LICENSEE shall provide to BAYLOR copies of said policies of insurance.
It is the intention of the Parties hereto that LICENSEE shall, throughout the
term of this Agreement, continuously and without interruption, maintain in force
the required insurance coverages set forth in this Paragraph 15.2. Failure of
LICENSEE to comply with this requirement shall constitute a default of LICENSEE
allowing BAYLOR, at its option, to immediately terminate this Agreement.

(v) BAYLOR reserves the right to request additional policies of insurance where
appropriate and reasonable in light of LICENSEE's business operations and
availability of coverage.

      15.3 DISCLAIMER OF WARRANTY. BAYLOR AND LICENSEE MAKE NO WARRANTIES OR
REPRESENTATIONS, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, WARRANTIES
OF FITNESS OR MERCHANTABILITY, REGARDING OR WITH RESPECT TO THE PATENT RIGHTS OR
LICENSED PRODUCTS AND BAYLOR AND LICENSEE MAKE NO WARRANTIES OR REPRESENTATIONS,
EXPRESS OR IMPLIED, OF THE PATENTABILITY OF THE PATENT RIGHTS OR LICENSED
PRODUCTS OR OF THE ENFORCEABILITY OF ANY PATENTS ISSUING THEREUPON, IF ANY, OR
THAT THE PATENT RIGHTS OR LICENSED PRODUCTS ARE OR SHALL BE FREE FROM
INFRINGEMENT OF ANY PATENT OR OTHER RIGHTS OF THIRD PARTIES. NOTHING IN THIS
AGREEMENT SHALL BE CONSTRUED AS CONFERRING BY IMPLICATION, ESTOPPEL OR OTHERWISE
ANY LICENSE OR RIGHTS UNDER ANY PATENTS OF BAYLOR OTHER THAN THE PATENT RIGHTS,
REGARDLESS OF WHETHER SUCH PATENTS ARE DOMINANT OR SUBORDINATE TO THE PATENT
RIGHTS.

                                      -12-
<PAGE>

                                                                    EXHIBIT 10.1

16.   ADDITIONAL PROVISIONS

      16.1 Use of BAYLOR Name. LICENSEE agrees that it shall not use in any way
the name of "Baylor College of Medicine" or any logotypes or symbols associated
with BAYLOR or the names of any of the scientists or other researchers at BAYLOR
without the prior written consent of BAYLOR.

      16.2 Confidentiality.

      (i) Because BAYLOR and LICENSEE will be cooperating with each other, and
because each may reveal to the other certain Confidential Information, BAYLOR
and LICENSEE agree to hold any Confidential Information that is obtained in
connection with this Agreement as confidential.

      (ii) A Party receiving Confidential Information shall use its best efforts
to ensure that all Confidential Information of the disclosing Party is kept
confidential. Thus, for example, neither Party will disclose Confidential
Information to any third party without the express written consent of the
disclosing Party and no receiving Party will use such Confidential Information
except pursuant to this Agreement. A receiving Party also agrees to notify the
disclosing Party immediately upon discovery of any unauthorized use or
disclosure of Confidential Information and, in every reasonable way, to
cooperate and to assist the disclosing Party to regain possession of the
Confidential Information and to prevent its further unauthorized use.

      (iii) Each Party's confidentiality obligations and the limitations upon
the right to use the Confidential Information shall not apply to the extent that
the receiving Party can demonstrate that the same: (a) was already known by the
receiving Party prior to the disclosure by the disclosing Party; (b) becomes
patented, published or otherwise part of the public domain through no fault or
omission of the receiving Party; (c) is disclosed to the receiving Party by a
third party that has the right to make such disclosure; (d) is independently
developed by the receiving Party without any use of the Confidential Information
and otherwise in a manner not inconsistent with this Agreement; (e) is
authorized to be disclosed by the disclosing Party in writing; or (f) is
required to be disclosed by applicable law, rule or regulation, by order of
governmental or judicial authority; provided that the receiving Party shall use
reasonable efforts to obtain confidential treatment of such information and
notifies the disclosing Party prior to making such disclosure.

      16.3 BAYLOR's Disclaimers. Neither BAYLOR, nor any of its faculty members,
scientists, researchers, employees, officers, trustees or agents assume any
responsibility for the manufacture, product specifications, sale or use of the
Patent Rights or Licensed Products which are manufactured by or sold by
LICENSEE.

      16.4 Independent Contractors. The Parties hereby acknowledge and agree
that each is an independent contractor and that neither Party shall be
considered to be the agent, representative, master or servant of the other Party
for any purpose whatsoever, and that neither Party has any authority to enter
into a contract, to assume any obligation or to give warranties or
representations on behalf of the other Party. Nothing in this relationship shall
be construed to create a relationship of joint venture, partnership, fiduciary
or other similar relationship between the Parties.

      16.5 Non-Waiver. The Parties covenant and agree that if a Party fails or
neglects for any reason to take advantage of any of the terms provided for the
termination of this Agreement or if a Party, having the right to declare this
Agreement terminated, shall fail to do so, any such failure or neglect by such
Party shall not be a waiver or be deemed or be construed to be a waiver of any
cause for the termination of this Agreement subsequently arising, or as a waiver
of any of the terms, covenants or

                                      -13-
<PAGE>

                                                                    EXHIBIT 10.1

conditions of this Agreement or of the performance thereof. None of the terms,
covenants and conditions of this Agreement may be waived by a Party except by
its written consent.

      16.6 Reformation. The Parties hereby agree that neither Party intends to
violate any public policy, statutory or common law, rule, regulation, treaty or
decision of any government agency or executive body thereof of any country or
community or association of countries, and that if any word, sentence, paragraph
or clause or combination thereof of this Agreement is found, by a court or
executive body with judicial powers having jurisdiction over this Agreement or
any of the Parties hereto, in a final, unappealable order to be in violation of
any such provision in any country or community or association of countries, such
words, sentences, paragraphs or clauses or combination shall be inoperative in
such country or community or association of countries, and the remainder of this
Agreement shall remain binding upon the Parties hereto.

      16.7 Force Majeure. No liability hereunder shall result to a Party by
reason of delay in performance caused by force majeure, that is circumstances
beyond the reasonable control of the Party, including, without limitation, acts
of God, fire, flood, war, terrorism, civil unrest, labor unrest, or shortage of
or inability to obtain material or equipment.

      16.8 Entire Agreement. The terms and conditions herein constitute the
entire agreement between the Parties and shall supersede all previous
agreements, either oral or written, between the Parties hereto with respect to
the subject matter hereof. No agreement of understanding bearing on this
Agreement shall be binding upon either Party hereto unless it shall be in
writing and signed by the duly authorized officer or representative of each of
the Parties and shall expressly refer to this Agreement.

      IN WITNESS WHEREOF, the Parties hereto have executed and delivered this
Agreement in multiple originals by their duly authorized officers and
representatives on the respective dates shown below, but effective as of the
Agreement Date.

POWER3 MEDICAL PRODUCTS, INC.            BAYLOR COLLEGE OF MEDICINE

Name:   /s/ Steven B. Rash               Name:   /s/ W. Dalton Tomlin
        ------------------------------           -----------------------------
                                                 W. Dalton Tomlin

Title:  Chairman/CEO                     Title:  Senior Vice President &
                                                 General Counsel

Date:   6-28-04                          Date:   6/21/04

6/11/04 LICENSEE     OTA # 04-107

                                      -14-<PAGE>

                                                                    EXHIBIT 10.2

Confidential Treatment Requested.  *** indicates material has been omitted
pursuant to a Confidential Treatment Request filed with the Securities and
Exchange Commission. A complete copy of this agreement has been filed separately
with the Securities and Exchange Commission.

                     PATENT AND TECHNOLOGY LICENSE AGREEMENT

      This twenty-two (22) page AGREEMENT ("AGREEMENT") is made on this 1st day
of August, 2004, 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, on behalf of THE UNIVERSITY OF TEXAS
M. D. ANDERSON CANCER CENTER ("UTMDACC"), a component institution of SYSTEM, and
Power3 Medical Products, Inc., a corporation organized under the laws of Nevada
and having a principal place of business at 3400 Research Forest Drive, The
Woodlands, Texas 77381 ("LICENSEE").

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                 <C>
RECITALS.......................................................................      2

I.     EFFECTIVE DATE..........................................................      2

II.    DEFINITIONS.............................................................      2

III.   LICENSE.................................................................      4

IV.   CONSIDERATION, PAYMENTS AND REPORTS......................................      6

V.     SPONSORED RESEARCH......................................................     10

VI.   PATENTS AND INVENTIONS...................................................     10

VII.  INFRINGEMENT BY THIRD PARTIES............................................     10

VIII.  PATENT MARKING..........................................................     12

IX.    INDEMNIFICATION.........................................................     12

X.     USE OF BOARD AND UTMDACC'S NAME.........................................     12

XI.   CONFIDENTIAL INFORMATION AND PUBLICATION.................................     13

XII.  ASSIGNMENT...............................................................     14

XIII.  TERM AND TERMINATION....................................................     14

XIV.  WARRANTY: SUPERIOR-RIGHTS................................................     17

XV.  GENERAL...................................................................     18

SIGNATURES.....................................................................     21
</TABLE>

                                       1
<PAGE>

                                    RECITALS

A.    BOARD owns certain PATENT RIGHTS and TECHNOLOGY RIGHTS related to LICENSED
      SUBJECT MATTER developed at UTMDACC.

B.    BOARD, through UTMDACC, desires to have the LICENSED SUBJECT MATTER and
      any DERIVED PRODUCTS developed in the LICENSED FIELD and used for the
      benefit of LICENSEE, BOARD, SYSTEM, UTMDACC, the inventor(s), and the
      public as outlined in BOARD's Intellectual Property Policy.

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

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

                               I. EFFECTIVE DATE

1.1   This AGREEMENT is effective as of the date written above ("EFFECTIVE
      DATE").

                                II. DEFINITIONS

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

2.1   AFFILIATE means any business entity more than fifty percent (50%) owned by
      LICENSEE, any business entity which owns more than fifty percent (50%) of
      LICENSEE, or any business entity that is more than fifty percent (50%)
      owned by a business entity that owns more than fifty percent (50%) of
      LICENSEE.

2.2   DERIVED PRODUCT means any service or product, whether or not a LICENSED
      PRODUCT, that utilizes or is based on biological markers, proteins or
      other proteomic information (including, but not limited to, protein
      fractions, protein patterns and protein profiles) identified, discovered,
      analyzed, developed or otherwise derived or made

                                       2
<PAGE>

      possible using LICENSED SUBJECT MATTER, PATENT RIGHTS and/or TECHNOLOGY
      RIGHTS.

2.3   LICENSED FIELD means all fields of use.

2.4   LICENSED PRODUCTS means any product or service sold by LICENSEE comprising
      LICENSED SUBJECT MATTER pursuant to this AGREEMENT.

2.5   LICENSED SUBJECT MATTER means inventions and discoveries covered by PATENT
      RIGHTS or TECHNOLOGY RIGHTS within LICENSED FIELD.

2.6   LICENSED TERRITORY means the entire world.

2.7   NET SALES means the gross revenues received by LICENSEE or its
      sublicensee, as appropriate, from a SALE less sales discounts actually
      granted, sales and/or use taxes actually paid, import and/or export duties
      actually paid, outbound transportation actually prepaid or allowed, and
      amounts actually allowed or credited due to returns (not exceeding the
      original billing or invoice amount)("DEDUCTIONS"). NET SALES shall also
      include the gross revenues less DEDUCTIONS received by LICENSEE or any
      sublicensee, as appropriate, for any DERIVED PRODUCTS. All gross revenues
      and DEDUCTIONS shall be recorded by LICENSEE or sublicensee, as
      appropriate, in their respective official books and records in accordance
      with generally accepted accounting practices and consistent with
      LICENSEE's or sublicensee's, as appropriate, published financial
      statements and/or regulatory filings with the United States Securities and
      Exchange Commission.

2.8   PATENT RIGHTS means BOARD's rights in information or discoveries claimed
      in the patents, and/or patent applications and any letters patent that
      issue thereon, whether domestic or foreign, listed on Exhibit I attached
      hereto.

                                       3
<PAGE>

2.9   SALE OR SOLD means the transfer or disposition of a LICENSED PRODUCT or
      DERIVED PRODUCT for value to a party other than LICENSEE or AFFILIATE.

2.10  TECHNOLOGY RIGHTS means BOARD's rights in any technical information,
      know-how, processes, procedures, compositions, devices, methods, formulae,
      protocols, techniques, software, designs, drawings or data created by the
      inventor(s) listed in Exhibit I at UTMDACC before the EFFECTIVE DATE,
      which are not claimed in PATENT RIGHTS but that are necessary for
      practicing PATENT RIGHTS.

                                  III. LICENSE

3.1   BOARD, through UTMDACC, hereby grants to LICENSEE a royalty-bearing,
      exclusive license under LICENSED SUBJECT MATTER to manufacture, have
      manufactured, use, import, offer to sell and/or sell LICENSED PRODUCTS
      within LICENSED TERRITORY for use within LICENSED FIELD. The foregoing
      grants are subject to Sections 14.2 and 14.3 hereinbelow, the payment by
      LICENSEE to UTMDACC of all consideration as provided herein, the timely
      payment of all amounts due under any related sponsored research agreement
      between UTMDACC and LICENSEE in effect during this AGREEMENT, and is
      further subject to the following rights retained by BOARD and UTMDACC to:

      (a)   Publish the general scientific findings from research related to
            LICENSED SUBJECT MATTER, subject to the terms of Article XI -
            Confidential Information and Publication; and

      (b)   use LICENSED SUBJECT MATTER for research, teaching, patient care,
            and other educationally related purposes.

                                       4
<PAGE>

3.2   LICENSEE may extend the license granted herein to any AFFILIATE provided
      that the AFFILIATE consents in writing to be bound by this AGREEMENT to
      the same extent as LICENSEE. LICENSEE agrees to deliver such contract to
      UTMDACC within thirty (30) calendar days following execution thereof.

3.3   LICENSEE may grant sublicenses under LICENSED SUBJECT MATTER for any
      lawful purpose. Sublicenses may be granted consistent with the terms of
      this AGREEMENT provided that LICENSEE is responsible for its sublicensees
      relevant to this AGREEMENT, and for diligently collecting all amounts due
      LICENSEE or UTMDACC from sublicensees. If 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 all
      consideration owed to LICENSEE and to have the sublicense agreement
      confirmed or rejected by a court of proper jurisdiction.

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

3.5   If this AGREEMENT is terminated pursuant to Article XIII - Term and
      Termination, BOARD and UTMDACC agree to accept as successors to LICENSEE,
      existing sublicensees in good standing at the date of termination provided
      that each such sublicensee consents in writing to be bound by all of the
      terms and conditions of this AGREEMENT.

                                       5
<PAGE>

                    IV. CONSIDERATION, PAYMENTS AND REPORTS

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

      (a)   All out-of-pocket expenses incurred by UTMDACC in filing,
            prosecuting, enforcing and maintaining the PATENT RIGHTS, and all
            such future expenses incurred by UTMDACC, for so long as, and in
            such countries as this AGREEMENT remains in effect. UTMDACC will
            invoice LICENSEE within thirty (30) calendar days of the EFFECTIVE
            DATE for expenses billed as of that time and on a quarterly basis
            thereafter. The billed amount for expenses incurred prior to the
            EFFECTIVE DATE will be due and payable by LICENSEE within ninety
            (90) calendar days of invoice. The invoiced amounts for expenses
            billed after the EFFECTIVE DATE will be due within thirty (30)
            calendar days of invoice; and

      (b)   A nonrefundable license documentation fee in the amount of ***,
            payable in two payments of $***. This fee will not reduce the amount
            of any other payments provided for in this ARTICLE IV. UTMDACC will
            invoice LICENSEE for the first payment of $*** after the AGREEMENT
            is fully executed by all parties. Said first payment shall be due
            and payable within thirty (30) days of invoice. The second payment
            of $*** shall be due and payable to UTMDACC on ***; and

      (c)   A nonrefundable annual license maintenance fee of $***. This
            maintenance fee is due to UTMDACC beginning on the first anniversary
            of the EFFECTIVE DATE and annually thereafter until ***. This fee
            will not reduce any other payment provided for in this ARTICLE IV;
            and

                                       6
<PAGE>

      (d)   A running royalty equal to ***. LICENSEE shall be responsible for
            diligently collecting and paying UTMDACC any royalties due for any
            sublicensee's NET SALES; and

      (e)   After ***, minimum annual royalties of $***. Any royalties payable
            under Section 4.1(d) will be credited toward this amount for each
            Sales Year. For purposed of this AGREEMENT, Sales Year means a year
            measured from the first SALE or anniversary of such first SALE to
            the subsequent anniversary of first SALE. If royalties payable under
            Section 4.1(d) exceed *** nothing shall be owed under this Section
            4.1(e); and

      (f)   A $*** milestone payment, payable in two installments, which shall
            become payable upon ***. The first installment of $*** shall be due
            ***, and a second installment of $*** shall be due ***; and

      (g)   *** (***%) of all consideration, other than research and development
            money and NET SALES, received by LICENSEE, from either (i) any
            sublicensee pursuant to Sections 3.3 and 3.4, or (ii) any assignee
            pursuant to Section 12.1, including, but not limited to, minimum
            royalties, up-front payments, bonuses, milestones, marketing fees,
            distribution fees, franchise fees, option fees, license fees,
            documentation fees, and equity securities.

4.2   Unless otherwise provided, all such payments are payable within thirty
      (30) calendar days after March 31, June 30, September 30, and December 31
      of each year during the term of this AGREEMENT, at which time LICENSEE
      will also deliver to UTMDACC 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

                                       7
<PAGE>

      this AGREEMENT as necessary for UTMDACC to account for LICENSEE's payments
      hereunder. This report will include pertinent data, including, but not
      limited to:

      (a)   the accounting methodologies used to account for and calculate the
            items included in the report and any differences in such accounting
            methodologies used by LICENSEE since the previous report; and

      (b)   a list of LICENSED PRODUCTS and DERIVED PRODUCTS produced for the
            three (3) preceding calendar months; and

      (c)   the total quantities of LICENSED PRODUCTS and DERIVED PRODUCTS
            produced; and

      (d)   the total SALES; and

      (e)   the calculation of NET SALES; and

      (f)   the royalties so computed and due UTMDACC and/or minimum royalties;
            and

      (g)   all consideration received by each sublicensee or assignee and
            payments due UTMDACC; and

      (h)   all other amounts due UTMDACC herein.

      Simultaneously with the delivery of each such report, LICENSEE agrees to
      pay UTMDACC the amount due, if any, for the period of such report. These
      reports are required even if no payments are due.

4.3   During the term of this AGREEMENT and for one (1) year thereafter,
      LICENSEE agrees to keep complete and accurate records of its and its
      sublicensees' SALES and NET SALES in sufficient detail to enable the
      royalties and other payments due hereunder to be determined. LICENSEE
      agrees to permit UTMDACC or its representatives, at UTMDACC's expense, to
      periodically examine LICENSEE's books, ledgers, and records

                                       8
<PAGE>

      during regular business hours for the purpose of and to the extent
      necessary to verify any report required under this AGREEMENT. If any
      amounts due UTMDACC 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 so examined, then LICENSEE will pay the cost of the examination
      plus accrued interest at the highest allowable rate.

4.4   Within thirty (30) calendar days following each anniversary of the
      EFFECTIVE DATE, LICENSEE will deliver to UTMDACC a written progress report
      as to LICENSEE's (and any sublicensee's) efforts and accomplishments
      during the preceding year in diligently commercializing LICENSED SUBJECT
      MATTER and DERIVED PRODUCTS in the LICENSED TERRITORY and LICENSEE's (and
      sublicensees') commercialization plans for the upcoming year.

4.5   All amounts payable hereunder by LICENSEE will be paid in United States
      funds without deductions for taxes, assessments, fees, or charges of any
      kind. Checks are to be made payable to The University of Texas M. D.
      Anderson Cancer Center, and sent by United States mail to Box 297402,
      Houston, Texas 77297, Attention Manager, Sponsored Programs or by wire
      transfer to:

      BANK ONE TEXAS
      910 TRAVIS
      HOUSTON, TEXAS 77002
      SWIFT: BONEUS44HOU

      ABA ROUTING NO: 11000614
      ACCOUNT NAME:   UNIV. OF TEXAS M. D. ANDERSON CANCER CENTER
      ACCOUNT NO:     1586838979
      REFERENCE:      include title and EFFECTIVE DATE of AGREEMENT and type
of payment (e.g., license documentation fee, milestone payment, royalty
[including applicable patent/application identified by UTMDACC reference number
and patent number or application serial number], or maintenance fee, etc.).

                                       9
<PAGE>

4.6   No payments due or royalty rates owed under this AGREEMENT will be reduced
      as the result of co-ownership of LICENSED SUBJECT MATTER and DERIVED
      PRODUCTS by BOARD and another party, including, but not limited to,
      LICENSEE.

                             V. SPONSORED RESEARCH

5.1   If LICENSEE desires to sponsor research for or related to the LICENSED
      SUBJECT MATTER or DERIVED PRODUCTS, and particularly where LICENSEE
      receives payments for sponsored research pursuant to a sublicense under
      this AGREEMENT, LICENSEE (a) will notify UTMDACC in writing of all
      opportunities to conduct this sponsored research (including clinical
      trials, if applicable), (b) solicit research and/or clinical proposals
      from UTMDACC for this purpose, and (c) will give good faith consideration
      to funding the proposals at UTMDACC.

                           VI. PATENTS AND INVENTIONS

6.1   All decisions regarding prosecution, maintenance and enforcement of PATENT
      RIGHTS shall be within the sole discretion of UTMDACC.

                       VII. INFRINGEMENT BY THIRD PARTIES

7.1   LICENSEE, at its expense, must enforce any patent exclusively licensed
      hereunder against infringement by third parties and is entitled to retain
      recovery from such enforcement. After reimbursement of LICENSEE's
      reasonable legal costs and expenses related to such recovery, LICENSEE
      agrees to pay UTMDACC either: (a) if any award or damages awarded to
      LICENSEE constitutes lost profits on sales of LICENSED PRODUCTS or DERIVED
      PRODUCTS, such award or damages shall be considered as NET SALES for
      purposes of calculating royalties due UTMDACC; and (b) if any award or
      damages awarded to LICENSEE constitute "reasonable royalties" pursuant to
      35 USC

                                       10
<PAGE>

      Section 284 or punitive damages, LICENSEE agrees to pay UTMDACC ***.
      LICENSEE must notify UTMDACC in writing of any potential infringement
      within thirty (30) calendar days of knowledge thereof. If LICENSEE does
      not file suit against a substantial infringer within six (6) months of
      knowledge thereof, then BOARD or UTMDACC may, at its sole discretion,
      enforce any patent licensed hereunder on behalf of itself and LICENSEE,
      with UTMDACC 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 of any PATENT RIGHTS, the
      parties agree to cooperate fully with each other. At the request and
      expense of the party bringing suit, the other party will permit access
      during regular business hours, to all relevant personnel, records, papers,
      information, samples, specimens, and the like in its possession.

                                       11
<PAGE>

                              VIII. PATENT MARKING

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

                              IX. INDEMNIFICATION

9.1   LICENSEE agrees to hold harmless and indemnify BOARD, SYSTEM, UTMDACC, its
      Regents, officers, employees, students, and agents from and against any
      claims, demands, 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 rights granted hereunder by LICENSEE, its officers, its AFFILIATES
      or their officers, employees, agents or representatives.

                       X. USE OF BOARD AND UTMDACC'S NAME

10.1  LICENSEE will not use the name of (or the name of any employee of)
      UTMDACC, SYSTEM or BOARD in any advertising, promotional or sales
      literature, on its Web site, or for the purpose of raising capital without
      the advance express written consent of BOARD secured through:

      M. D. Anderson Services Corporation
      7505 S. Main, Suite 500, Unit 0525
      Houston, TX 77030
      ATTENTION: Natalie Wright
      Email: nwright@mdanderson.org

                                       12
<PAGE>

      Notwithstanding the above, LICENSEE may use the name of (or name of
      employee of) UTMDACC, SYSTEM or BOARD in routine business correspondence,
      or as needed in appropriate regulatory submissions without express written
      consent.

                  XI. CONFIDENTIAL INFORMATION AND PUBLICATION

11.1  UTMDACC and LICENSEE each agree that all information contained in
      documents marked "confidential" and forwarded to one by the other (i) are
      to be received in strict confidence, (ii) used only for the purposes of
      this AGREEMENT, and (iii) 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, except to the extent that the
      recipient party can establish competent written proof that such
      information:

      (a)   was in the public domain at the time of disclosure; or

      (b)   later became part of the public domain through no act or omission of
            the recipient party, its employees, agents, successors or assigns;
            or

      (c)   was lawfully disclosed to the recipient party by a third party
            having the right to disclose it; or

      (d)   was already known by the recipient party at the time of disclosure;
            or

      (e)   was independently developed by the recipient without use of the
            other party's confidential information; or

      (f)   is required by law or regulation to be disclosed.

11.2  Each party's obligation of confidence hereunder will 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, but
      always at least a reasonable degree of care. This

                                       13
<PAGE>

      obligation will exist while this AGREEMENT is in force and for a period of
      three (3) years thereafter.

11.3  UTMDACC reserves the right to publish the general scientific findings from
      research related to LICENSED SUBJECT MATTER or DERIVED PRODUCTS, with due
      regard to the protection of LICENSEE's confidential information. UTMDACC
      will submit the manuscript of any proposed publication to LICENSEE at
      least thirty (30) calendar days before publication, and LICENSEE shall
      have the right to review and comment upon the publication in order to
      protect LICENSEE's confidential information. Upon LICENSEE's request,
      publication may be delayed up to sixty (60) additional calendar days to
      enable LICENSEE to secure adequate intellectual property protection of
      LICENSEE's confidential information that would otherwise be affected by
      the publication.

                                XII. ASSIGNMENT

12.1  Except in connection with the sale of all of LICENSEE's assets to a third
      party, this AGREEMENT may not be assigned by LICENSEE without the prior
      written consent of UTMDACC, which will not be unreasonably withheld.

                           XIII. TERM AND TERMINATION

13.1  Subject to Sections 13.3, 13.4 hereinbelow, the term of this AGREEMENT is
      from the EFFECTIVE DATE to the full end of the term or terms for which
      PATENT RIGHTS have not expired, or if only TECHNOLOGY RIGHTS are licensed
      and no PATENT RIGHTS are applicable, for a term of fifteen (15) years.

13.2  Any time after one (1) year from the EFFECTIVE DATE, BOARD or UTMDACC have
      the right to terminate this license in any national political jurisdiction
      within the

                                       14
<PAGE>

      LICENSED TERRITORY if LICENSEE, within ninety (90) calendar days after
      receiving written notice from UTMDACC of the intended termination, fails
      to provide written evidence satisfactory to UTMDACC that LICENSEE or its
      sublicensee(s) has commercialized or is actively and effectively
      attempting to commercialize a licensed invention in such jurisdiction(s).
      The following definitions apply to Section 13.2: (a) "commercialize" means
      having SALES in such jurisdiction; (b) "active attempts to commercialize"
      means having an effective, ongoing and active research, development,
      manufacturing, marketing or sales program as appropriate, directed toward
      obtaining regulatory approval, and/or production and/or SALES in any
      jurisdiction, and has provided plans acceptable to UTMDACC, in its sole
      discretion, to commercialize licensed inventions in the jurisdiction(s)
      that UTMDACC intends to terminate.

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

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

      (b)   upon thirty (30) calendar days written notice from UTMDACC, if
            LICENSEE breaches or defaults on the payment or report obligations
            of ARTICLE IV, or use of name obligations of ARTICLE X, unless,
            before the end of the such thirty (30)-calendar day notice period,
            LICENSEE has cured the default or breach to UTMDACC's satisfaction,
            and so notifies UTMDACC, stating the manner of the cure; or

                                       15
<PAGE>

      (c)   upon ninety (90) calendar days written notice from UTMDACC if
            LICENSEE breaches or defaults on any other obligation under this
            AGREEMENT, unless, before the end of the such ninety (90)
            calendar-day notice period, LICENSEE has cured the default or breach
            to UTMDACC's satisfaction and so notifies UTMDACC, stating the
            manner of the cure; or

      (d)   at any time by mutual written agreement between LICENSEE, UTMDACC or
            BOARD, upon one hundred eighty (180) calendar days written notice to
            all parties and subject to any terms herein which survive
            termination; or

      (e)   if Section 13.2 is invoked; or

      (f)   if LICENSEE has defaulted or been late on its payment obligations
            pursuant to the terms of this AGREEMENT on any two (2) occasions in
            a twelve (12) month period.

13.4  Upon termination of this AGREEMENT:

      (a)   nothing herein will be construed to release either party of any
            obligation maturing prior to the effective date of the termination;
            and

      (b)   LICENSEE covenants and agrees to be bound by the provisions of
            Articles IX (Indemnification), X (Use of Board and UTMDACC's Name)
            and XI (Confidential Information and Publication) of this AGREEMENT;
            and

      (c)   LICENSEE may, after the effective date of the termination, sell all
            LICENSED PRODUCTS and DERIVED PRODUCTS and parts therefor that it
            has on hand at the date of termination, if LICENSEE pays the earned
            royalty thereon and any other amounts due pursuant to Article N of
            this AGREEMENT; and

                                       16
<PAGE>

      (d)   LICENSEE grants to BOARD and UTMDACC a nonexclusive royalty bearing
            license with the right to sublicense others with respect to
            improvements made by LICENSEE in the LICENSED SUBJECT MATTER and
            DERIVED PRODUCTS. LICENSEE and UTMDACC agree to negotiate in good
            faith the royalty rate for the nonexclusive license. BOARD's and
            UTMDACC's right to sublicense others hereunder is solely for the
            purpose of permitting others to develop and commercialize the entire
            technology package; and

      (e)   if this AGREEMENT is terminated by UTMDACC, LICENSEE agrees to cease
            and desist all use and sale of LICENSED SUBJECT MATTER and DERIVED
            PRODUCTS immediately upon termination.

                         XIV. WARRANTY: SUPERIOR-RIGHTS

14.1  Except for the rights, if any, of the Government of the United States of
      America as set forth below, BOARD represents and warrants its belief that
      (a) it is the owner of the entire right, title, and interest in and to
      LICENSED SUBJECT MATTER, (b) it has the sole right to grant licenses
      thereunder, and (c) 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,

                                       17
<PAGE>

      applicable law or regulation and this AGREEMENT, the terms of such
      Government agreement, applicable law or regulation shall prevail.

14.3  LICENSEE understands and agrees that BOARD and UTMDCC, by this AGREEMENT,
      make 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 or DERIVED PRODUCTS. BOARD and UTMDACC, by this AGREEMENT, also
      make no representation as to whether any patent covered by PATENT RIGHTS
      is valid or as to whether there are any patents now held, or which will be
      held, by others or by BOARD or UTMDACC in the LICENSED FIELD, nor does
      BOARD and UTMDACC 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 any way by BOARD, SYSTEM, UTMDACC or
      employees thereof to enter into this AGREEMENT, and further warrants and
      represents that (a) LICENSESE has conducted sufficient due diligence with
      respect to all items and issues pertaining to this AGREEMENT; and (b)
      LICENSEE has adequate knowledge and expertise, or has used knowledgeable
      and expert consultants, to adequately conduct such due diligence, 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

                                       18
<PAGE>

      supplementing the terms hereof will be made except by a written document
      signed by both parties.

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

      The University of Texas M. D. Anderson Cancer Center
      Office of Technology Commercialization
      7515 S. Main, Suite 490, Unit 0510
      Houston, Texas 77030
      ATTENTION: William J. Doty

      with copy to BOARD:

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

      or in the case of LICENSEE to:
      Power3 Medical Products, Inc.
      3400 Research Forest Drive
      The Woodlands, Texas 77381
      ATTENTION: Steven Rash

      or other addresses as may be given from time to time under the terms of
      this notice provision.

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

15.4  LICENSEE covenants and agrees that it will not file any patent
      applications which claim priority, directly or indirectly, to any patent
      or patent application included in PATENT RIGHTS, without the advance
      express written consent of UTMDACC.

15.5  This AGREEMENT will be construed and enforced in accordance with the laws
      of the United States of America and of the State of Texas, without regard
      to its conflict of law

                                       19
<PAGE>

      provisions. The Texas State Courts of Harris County, Texas (or, if there
      is exclusive federal jurisdiction, the United States District Court for
      the Southern District of Texas) shall have exclusive jurisdiction and
      venue over any dispute arising out of this AGREEMENT, and LICENSEE
      consents to the jurisdiction of such courts; however, nothing herein shall
      be deemed as a waiver by BOARD, SYSTEM or UTMDACC of its sovereign
      immunity.

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

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

15.8  If any part of this AGREEMENT is for any reason found to be unenforceable,
      all other parts nevertheless will remain enforceable.

                                       20
<PAGE>

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

BOARD OF REGENTS OF THE                       POWER3 MEDICAL PRODUCTS, INC.
UNIVERSITY OF TEXAS SYSTEM
By:/s/ John Mendelsohn, M.D.                  By: /s/ Steven Rash
   ----------------------------------             -----------------------------
        John Mendelsohn, M.D.                          Steven Rash
        President                                      Chief Executive Officer
        The University of Texas
        M.D. Anderson Cancer Center
Date: 7/27/04                                 Date: 6/30/04

THE UNIVERSITY OF TEXAS
M.D. ANDERSON CANCER CENTER
By:/s/ Leon Leach
   ----------------------------------
        Leon Leach
        Executive Vice President
        The University of Texas
        M.D. Anderson Cancer Center
Date: 7/23/04

Approved as to Content:

By:/s/ William J. Doty
   ----------------------------------
        William J. Doty
        Managing Director, Technology
        Commercialization
        M.D. Anderson Cancer Center
Date: 7/19/04

                                       21
<PAGE>

                                    EXHIBIT I

MDA03-127 (UTSC:874) entitled "Using Plasma Proteomic Pattern for Diagnosis,
Prediction of Response to Therapy and Clinical Behavior, and Monitoring Disease
in Hematologic Malignancies," invented by: Albitar, Maher, Ph.D.; Estey, Elihu
H., M.D.; Kantarjian, Hagop, M., M.D.; Giles, Francis J., M.D.; Keating, Michael
J., M.D.; and Goldknopf, Ira.

                                       22

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]