Document:

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                                                                   EXHIBIT 10.13

                                    AGREEMENT

                  This Agreement is entered into this 2nd day of August, 1999,
by and between Atrix Laboratories, Inc., a Delaware corporation (the "Company"),
with its principal place of business at 2579 Midpoint Drive, Fort Collins,
Colorado 80525, and John E. Urheim, an individual (the "Employee"), with his
address at 5417 Taylor Lane, Fort Collins, Colorado 80525.

                  WHEREAS, Employee desires to resign from his position as an
officer of the Company and its subsidiaries for health reasons.

                  WHEREAS, the Company and Employee desire to enter into this
Agreement to set forth the terms of such resignation.

         NOW, THEREFORE, in consideration of the covenants undertaken, and for
other good and valuable consideration, the receipt of which is hereby
acknowledged, the parties hereto agree as follows:

         1. Resignation. Employee's employment with the Company as its Chief
Executive Officer will terminate effective as of 5:00 p.m. Mountain Daylight
Time, August 2, 1999 (the "Resignation Date"). Effective on the Resignation
Date, Employee will relinquish all positions as an officer of the Company or its
subsidiaries. Employee acknowledges that upon receipt of the Employee's final
salary payment for the period ended August 31, 1999 that the Company will have
paid him for all work performed on or prior to the Resignation Date based on
Employee's base annual salary of Two Hundred Fifty-Five Thousand Dollars
($255,000) ("Base Salary"), and has provided Employee with all benefits to which
he was entitled through the Resignation Date.

         2. Final Termination Date. The Company shall employ Employee as a
salaried employee of the Company reporting to the Company's interim Chief
Executive Officer to assist the Company in all matters relating to the winding-
up of pending work and the orderly transition of work to other employees from
the Resignation Date through August 31, 1999, at which time Employee's
employment with the Company will terminate ("Final Termination Date"); provided
however, Employee will be deemed to be an "employee" for severance related
issues as provided in Section 3 hereof. The Company shall pay Employee his
salary based on his Base Salary, and provide Employee with benefits on
substantially the same conditions and terms as previously provided to Employee
from the Resignation Date through the Final Termination Date. Employee hereby
waives any right to claim reinstatement as an employee of the Company or its
subsidiaries after the Final Termination Date.

         3. Severance. The Company shall provide Employee with:

                  (a) Severance Payments. The cash equivalent of twelve (12)
         months of Employee's Base Salary, Two Hundred Fifty-Five Thousand
         Dollars ($255,000.00) in the form of salary continuation for the period
         from September 1, 1999 through August 31, 2000, in accordance with the
         Company's normal payroll procedures ("Severance Payment"). The Company
         shall deduct all applicable tax

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         withholdings for state and federal income taxes, FICA and other
         deductions required by law and/or authorized by Employee from the
         Severance Payment.

                  (b) Severance Benefits. Dental, medical, life insurance
         coverage and other employee benefits provided by the Company on the
         same terms as the Company provided to Employee prior to the Resignation
         Date for the period from September 1, 1999 through August 31, 2000. The
         benefits provided for in this Section 3(b) shall constitute all of the
         Severance Benefits provided by the Company to Employee after the Final
         Termination Date. The Company will use its best efforts to cause such
         Severance Benefits to be effective on or before the Final Termination
         Date. Employee acknowledges that except as provided for in this
         Agreement, Employee shall not otherwise be entitled to any other
         payments or benefits from the Company.

         4. Consulting. If requested by the Company's interim Chief Executive
Officer (or permanent Chief Executive Officer) subsequent to August 31, 1999
Employee will serve as a part-time consultant (but in any event no more than a
maximum of 30 hours per week) to the Company to assist the Company on
acquisitions, licensing and other matters as deemed appropriate by the Company's
interim Chief Executive Officer (or permanent Chief Executive Officer). In that
capacity, Employee will be paid One Hundred and Fifty Dollars ($150) per hour as
set forth on Exhibit B. Employee's engagement as a part-time consultant to the
Company will not entitle him to any other payments or benefits beyond this
hourly rate of compensation. Employee's engagement as a part-time consultant
will be as an independent contractor, and he shall not be deemed or construed to
be an agent, servant, representative, or employee of the Company within the
meaning of any State Worker's Compensation Act, the common law of any State, the
rules of any federal agency, or federal law.

         5. Stock Options. Employee has unvested stock options to acquire 28,034
shares of the Company's $.001 par value common stock (the "Options"), at
exercise prices ranging from $6.625 to $16.50 per share. The Company will cause
all unvested Options to immediately vest as of the date this Agreement becomes
effective or enforceable.

         6. Company Property. Employee represents that he will turn over to the
Company all files, memoranda, records, other documents and all other physical
property which Employee received from the Company and which are the property of
the Company by the Final Termination Date, or sooner if requested by the
Company. Employee shall return to the Company all Company credit cards and
calling cards promptly upon request.

         7. Tax Liability. Employee agrees that Employee is exclusively liable
for the payment of any federal, state, city or other taxes which may be due as a
result of any consideration received by Employee as provided by this Agreement;
provided, however, that Company shall pay all federal, state and local amounts
withheld from payments to Employee and all other employment taxes of the type
normally paid by Company on employee salaries in connection with the
consideration payable to Employee pursuant to Section 3 of this Agreement.

         8. Releases by Employee. Except for obligations created by this
Agreement, Employee hereby covenants not to sue and fully releases the Company
and its

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subsidiaries and affiliates, past and present, and each of them, as well as
their directors, partners, officers, agents, attorneys, insurers, employees,
stockholders, representatives, assigns and successors, past and present, and
each of them (hereinafter together and collectively referred to as "Releasees")
with respect to and from all actions, and claims of any kind, known or unknown,
suspected or unsuspected, which Employee may now have or has ever had against
any of the Releasees, including all claims arising from, with respect to, or
related in any manner to Employee's employment as chief executive officer and/or
in any other capacity as an officer or employee of the Company or its
subsidiaries and all matters relating to, arising out of or with respect to the
decision to terminate that relationship and the termination of that
relationship, as of the Final Termination Date (and specifically including any
and all claims related to prior promises or contracts of employment and any and
all claims for wages, benefits, vacation pay, and wrongful termination or
discrimination whether based on age, race, sex, disability or otherwise
including specifically and without limitation claims under the Federal Age
Discrimination in Employment Act, Americans with Disabilities Act, and any state
or local statute or law). Employee warrants and represents that Employee has not
assigned or transferred to any person or entity any of the claims released by
this Agreement and Employee agrees to defend, by counsel of Company's choosing,
and indemnify and hold harmless any of the Releasees from and against any claims
based on or in connection with or arising out of any such assignment or transfer
made.

         9. Releases by Company. Except for obligations created by this
Agreement, the Company hereby covenants not to sue and fully releases Employee
and his successors and assigns (the "Employee Releasees"), with respect to and
from all actions, and claims of any kind, known or unknown, suspected or
unsuspected, which Company may now have or has ever had against any of the
Employee Releasees, including all claims arising from Employee's position as a
chief executive officer or employee of the Company or its subsidiaries and the
termination of that relationship (and specifically including any and all claims
related to prior promises or contracts of employment), as of the Final
Termination Date; provided, however, the Company does not release the Employee
Releases with respect to claims arising out of or relating to the fraud, gross
negligence or willful misconduct of the Employee. The Company warrants and
represents that the Company has not assigned or transferred to any person or
entity any of the claims released by this Agreement and the Company agrees to
defend, at its sole cost and expense, by counsel of Employee's choosing, and
indemnify and hold harmless any of the Employee Releasees from and against any
claims based on or in connection with or arising out of any such assignment or
transfer made.

         10. Indemnification and Defense by Company. Company shall indemnify and
defend, at its sole cost and expense, Employee in any threatened, pending, or
contemplated action, suit or proceeding, whether civil or criminal,
administrative or investigative, or whether formal or informal which arises by
reason of the fact that Employee was chief executive officer of the Company
and/or in any other capacity as an officer or employee of the Company or its
subsidiaries prior to the Resignation Date, against expenses, including
attorney's fees, judgments, penalties, fines and amounts to be paid in
settlement in connection with such action, suit or proceeding if it is
determined by the Company that Employee conducted himself in good faith and that
Employee reasonably believed (i) in the case of conduct in his official capacity
with the Company,

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that his conduct was in the Company's best interests, or (ii) in all other cases
(except criminal cases), that his conduct was at least not opposed to the
Company's best interests, or (iii) in the case of any criminal proceeding, that
he had no reasonable cause to believe that his conduct was unlawful
("Indemnified Claims"). The Company shall have the sole and exclusive right to
select legal counsel to represent the Company and Employee, and to control the
defense and/or settlement of any Indemnified Claims. Employee agrees to
cooperate with the Company in the defense of any Indemnified Claims, and make
available to the Company any and all documents in his possession and/or control
that may be necessary or useful to such defense and/or settlement.

         No indemnification shall be made to Employee under this Section 10 with
respect to any claim, issue or matter in connection with a proceeding by or on
behalf of the Company or any other entity in which Employee's actions giving
rise to the action, suit, proceeding or claim constituted fraud, gross
negligence and/or willful misconduct on the part of the Employee.

         11. Cooperation. Employee agrees to fully cooperate with Company in all
matters relating to the winding up of pending work on behalf of Company and the
orderly transfer of work to other employees of the Company following the Final
Termination Date and thereafter. Employee shall also cooperate in the resolution
of any dispute, including litigation of any action, involving the Company that
relates in any way to Employee's activities while employed by Company. The terms
and conditions of this Section 11 shall not apply to the Company's defense
and/or indemnification of Employee with respect to the Indemnified Claims under
Section 10 of this Agreement.

         12. Non-Competition.

                  (a) Employee covenants and agrees with the Company that for
         the period from September 1, 1999 through August 31, 2000 (the
         "Non-Competition Period"), Employee will not engage or participate,
         directly or indirectly, as principal, agent, employee, employer,
         consultant, advisor, sole proprietor, stockholder, partner, independent
         contractor, trustee, joint venturer or in any other individual or
         representative capacity whatever, in the conduct or management of, or
         own any stock or other proprietary interest in, or debt of, any
         business organization, person, firm partnership, association,
         corporation, enterprise or other entity that shall be engaged in any
         business (whether in operation or in the planning, research or
         development stage) that is a Competitive Business, unless Employee
         shall obtain the prior written consent of the Board of Directors of the
         Company which consent shall make express reference to this Agreement.
         Notwithstanding the foregoing, Employee may make passive investments in
         any company whose stock is listed on a national securities exchange or
         traded in the over-the-counter market so long as he does not come to
         own, directly or indirectly, more than five percent (5%) of the equity
         securities of such company. For purposes of this Agreement, a business
         shall be considered a "Competitive Business" if it involves or relates
         to (i) any business in which the Company is actively engaged as of
         September 1, 1999 or any business in which during the twelve (12)
         months immediately preceding September 1, 1999 the Company actively
         contemplated engaging (as evidenced by (x) discussions between

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         Employee or any other officer of the Company, (y) inclusion in a
         written business plan or proposal, or (z) discussions between Employee
         or any other officer of the Company and any customer or prospective
         customer of the Company) or (ii) any business in which an affiliate is
         actively engaged on the date of termination or any business in which
         during the twelve (12) months immediately preceding September 1, 1999
         an affiliate actively contemplated engaging (as evidenced by (x)
         discussions between any officer of any affiliate, (y) inclusion in a
         written business plan or proposal, or (z) discussions between an
         officer of any affiliate and any customer or prospective customer of
         any affiliate), provided, however, for purposes of this clause (ii),
         such business involves or relates to the research, development,
         manufacturing, production, marketing, selling or servicing of products
         or services for or related to the drug delivery business.

                  (b) Employee covenants and agrees with the Company that from
         the Effective Date through August 31, 2000, Employee will not directly
         or indirectly solicit or induce, or aid any other entity or person in
         soliciting or inducing, or knowingly permit any entity directly or
         indirectly controlled by him to solicit or induce, any person who is,
         or during the last six months of Employee's employment by the Company
         was, an officer, director, executive, consultant or employee of the
         Company or any of its affiliates or any of its existing or future
         subsidiaries to leave the employment or association with the Company,
         its affiliate or subsidiary, to become employed or retained by any
         other entity or to participate in the establishment of any other
         business.

                  (c) Employee agrees that in addition to the remedies the
         Company may seek and obtain pursuant to this Agreement, the period
         during which the covenants contained in this Section 12 apply shall be
         extended by any and all periods during which Employee shall be found by
         a court possessing personal jurisdiction over him to have been in
         violation of the covenants contained in this Agreement.

                  (d) Without limitation of any of the provisions of this
         Section 12, any payments to be made to Employee or for his benefit
         pursuant to Section 3 of this Agreement shall be deemed to secure his
         agreements set forth in this Section 12 and such payments may be
         terminated by the Company if Employee fails to observe the agreements
         set forth in this Section 12.

                  (e) Employee (i) acknowledges that, subject to current health
         limitations and successful cardiac rehabilitation, his skills and
         experience are such that he can anticipate finding employment at a
         senior level in his profession, and (ii) represents and agrees that the
         restrictions imposed by this Section 12 on engaging in competitive
         business activities are necessary for the protection of the legitimate
         interests and competitive position of the Company and do not impose
         undue hardships on him.

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         13. Nonadmission of Violation. This Agreement is not, and shall not be
construed as, an admission by Company of any violation of its policies or
procedures, or of any local, state or federal law or regulation.

         14. Complete Agreement. This Agreement constitutes the full and entire
agreement and understanding of the parties. This Agreement supersedes and
replaces all prior negotiations and all agreements, proposed or otherwise,
between the parties, whether written or oral, concerning the subject matters
hereof. This Agreement also supersedes, replaces and terminates as null and void
all prior employment and severance agreements between Employee and the Company.
All such prior negotiations and agreements are merged into this Agreement. This
Agreement does not, however, affect or limit the parties' past or ongoing
respective rights and responsibilities under any applicable stock option
agreement which provides for disposition of stock which Employee may hold in the
Company. The terms and conditions contained herein shall inure to the benefit
of, and be binding upon, the heirs, representatives, assigns and
successors-in-interest of the parties. This is an integrated document.

         15. Severability of Invalid Provisions. If any provision or portion of
this Agreement or the application thereof is held by a court of competent
jurisdiction or arbitrator to be invalid, unlawful or unenforceable, the
remaining provisions or portions of provisions of this Agreement shall remain in
full force and effect. Such invalidity shall not affect other provisions or
applications of the Agreement which can be given effect without the invalid
provisions or applications and to this end the provisions of this Agreement are
declared severable.

         16. Choice of Law. Except for claims relating to trade secrets, any
dispute between the parties relating in any way to Employee's employment, the
termination of that employment or this Agreement, including, without limitation,
the formation, implementation, or termination thereof shall be resolved by
arbitration before a single arbitrator in Fort Collins, Colorado, according to
the commercial rules of the American Arbitration Association. The parties also
agree that prior to commencing any arbitration proceedings, as provided above,
the parties shall first attempt to resolve any dispute between or among them
through mediation with the assistance of a mediator selected by or agreeable to
the parties to the dispute. The costs and expense of arbitration and mediation
shall be shared equally by the parties to the arbitration and/or mediation,
regardless of which party prevails. The rights and obligations of the parties
hereunder, including any agreement to arbitrate and the law to be applied in the
arbitration shall be construed and enforced in accordance with and governed by
the law of the United States to the extent applicable and otherwise the laws of
the State of Colorado, without giving effect to principles of conflicts of law.

         17. Waiver of Breach. No waiver, amendment or modification of this
Agreement shall be effective unless in writing and signed by the party against
whom the waiver, amendment or modification is sought to be enforced. No waiver
of any term, condition, breach or default of this Agreement shall be construed
as a waiver of any other term,

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condition, breach or default. Failure to enforce any breach or default of this
agreement shall not be a waiver of that breach or default or any other breach or
default of this Agreement.

         18. Further Executions. All parties agree to cooperate fully and to
execute any and all supplementary documents and to take all additional actions
that may be necessary or appropriate to give full force to the basic terms and
intent of this Agreement and which are not inconsistent with its terms.

         19. Headings. The use of headings in this Agreement is only for ease of
reference and the headings have no effect and are not to be considered a part or
term of this Agreement.

         20. Each Party to Bear Own Costs. Except as provided herein, the
parties agree that each party shall be responsible for the payment of its own
costs, attorneys' fees, and all other expense in connection with the negotiation
of this Agreement.

         21. Counterparts. This Agreement may be executed by the parties hereto
in two or more counterparts, each of which shall be deemed to be an original,
but all such counterparts shall constitute one and the same instrument, and all
signatures need not appear on any one counterpart.

         22. FURTHER ACKNOWLEDGMENTS. EMPLOYEE FURTHER ACKNOWLEDGES THAT: (A)
EMPLOYEE HAS READ THIS AGREEMENT; (b) EMPLOYEE HAS BEEN PROVIDED A FULL AND
AMPLE OPPORTUNITY TO STUDY IT; (c) EMPLOYEE HEREBY IS ADVISED IN WRITING TO
CONSULT WITH AN ATTORNEY PRIOR TO SIGNING THIS AGREEMENT; (d) EMPLOYEE HAS BEEN
ADVISED THAT EMPLOYEE HAS TWENTY-ONE (21) DAYS FROM THE DATE THIS AGREEMENT IS
PRESENTED TO EMPLOYEE IN WHICH TO CONSIDER THIS AGREEMENT AND WHETHER EMPLOYEE
WILL ENTER INTO IT, ALTHOUGH EMPLOYEE MAY, IN THE EXERCISE OF EMPLOYEE'S
DISCRETION, SIGN OR REJECT THIS AGREEMENT AT ANY TIME BEFORE THE TWENTY-ONE (21)
DAY PERIOD EXPIRES; (E) EMPLOYEE HAS SEVEN (7) DAYS FOLLOWING EXECUTION OF THIS
AGREEMENT TO REVOKE THE AGREEMENT BY DELIVERING TIMELY NOTICE OF EMPLOYEE'S
REVOCATION TO THE CHAIRMAN OF THE BOARD OF DIRECTORS OF THE COMPANY; (f) THIS
AGREEMENT SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE AND NO FUNDS SHALL BE
EXCHANGED UNTIL THE SEVEN (7) DAY REVOCATION PERIOD HAS EXPIRED; (g) EMPLOYEE
ENTERS INTO THIS AGREEMENT BASED UPON EMPLOYEE'S OWN KNOWLEDGE AND JUDGMENT AND
NOT IN RELIANCE ON ANY REPRESENTATIONS OR PROMISES OF COMPANY OTHER THAN THOSE
CONTAINED IN THIS AGREEMENT; (h) EMPLOYEE UNDERSTANDS THAT IF ANY FACTS OR
MATTERS UPON WHICH EMPLOYEE HAS RELIED IN ENTERING INTO THIS AGREEMENT SHALL
HEREINAFTER PROVE TO BE OTHERWISE, THIS AGREEMENT SHALL NEVERTHELESS REMAIN IN
FULL FORCE AND EFFECT; AND (j) EMPLOYEE IS SIGNING THIS AGREEMENT VOLUNTARILY,
WITHOUT COERCION, AND WITH FULL KNOWLEDGE THAT IT IS INTENDED, TO THE MAXIMUM
EXTENT PERMITTED BY LAW, AS A COMPLETE AND FINAL RELEASE AND WAIVER OF ANY AND
ALL CLAIMS.

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         In Witness Whereof, the parties have duly executed this Agreement as of
August 2, 1999.

Atrix Laboratories, Inc.                  Employee

By: /s/ WILLIAM C. O'NEIL                 By: /s/ JOHN W. URHEIM
   -------------------------------------     ------------------------------
   William C. O'Neil                            John E. Urheim
   Chairman of the Board of Directors

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                                    EXHIBIT B

                         TERMS OF CONSULTING ENGAGEMENT

         1. DUTIES. Assist the Company on acquisitions, licensing and other
matters as deemed appropriate by the Company's interim Chief Executive Officer
(or permanent Chief Executive Officer).

         2. COMPENSATION.

                     (a) Compensation. One Hundred and Fifty Dollars ($150.00)
            per hour, not including travel time unless approved in advance by
            the Chief Executive Officer of the Company.

                     (b) Expenses. The Company shall promptly pay or reimburse
            consultant for all reasonable expenses incurred by him in connection
            with the performance of his duties and responsibilities hereunder,
            and that are consistent with the Company's Travel and Expense
            Reimbursement Policy, as now existing or hereafter amended. All
            requests for reimbursed expenses shall be accompanied by such
            underlying documents or other evidence as are reasonably required to
            support the deduction of such expenses in accordance with the rules
            established by the Company.

                     (c) Invoices. Consultant will invoice the Company for
            billable time and expenses incurred monthly, if appropriate, by the
            15th of the following month. The Company will distribute payment or
            reimbursement checks to consultant within thirty (30) days of
            receipt of the invoices by the Company's Accounts Payable
            department, subsequent to proper authorizations.

                     (d) Taxes. All compensation paid for consulting services
            shall constitute revenues to the consultant. To the extent
            consistent with applicable law, the Company will not withhold any
            amounts therefrom as federal income tax withholding from wages or as
            employee contributions under the Federal Insurance Contributions Act
            or any other state or federal laws. Consultant shall be solely
            responsible for the withholding and/or payment of any federal, state
            or local income or payroll taxes.

                                      B-1LICENSE AGREEMENT

         This License Agreement (the "Agreement") is made and entered into on
October 28, 1999 by and between Non-Invasive Monitoring Systems, Inc., a Florida
corporation whose business address is 1840 West Avenue, Miami Beach, Florida
33139 ("NIMS" or "Licensor") and LifeShirt.com, Inc., a Delaware corporation,
whose business address is P. O., Box 262, Ojiai, California 93024 ("Licensee").

         WHEREAS, Licensor possesses certain technology and owns valuable
know-how which pertains to the design, manufacture, assembly, sale,
distribution, servicing, installation, use, leasing and testing of devices for
online vital sign monitoring devices and specifically, related to the
development, manufacturing and marketing of a garment with embedded sensors that
records and transmits data over the Internet for respiration,) ECG, and over 35
other physical and emotional vital signs into a small digital recorder (the
"LifeShirt System"); and

         WHEREAS, Licensee desires to obtain the right to use such technology
and know-how for the development, manufacture, marketing and sale of certain
products relating to the LifeShirt System; and

         WHEREAS, Licensee and Licensor have entered into that certain Research
and Consulting Agreement by and between Licensee and Licensor, dated as of the
date hereof and attached hereto as Exhibit "A"; and

         WHEREAS, Licensee has entered into that certain Consulting Agreement
with Marvin Sackner, a principal of NIMS, dated as of the date hereof and
attached hereto as Exhibit "B".

         NOW, THEREFORE, in consideration of the premises and mutual promises,
terms and conditions hereinafter set forth, and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties do hereby agree as follows:

1.       Definitions.

         As used herein, the following terms shall have the following
definitions.

         1.1 Affiliates, "Affiliates" shall mean any business entity controlled
by, controlling or under common control with any party hereto, with "control"
being interpreted broadly, including any entities with which such party may
merge, acquire or be acquired by.

         1.2 Business. Day. "Business Day" shall mean a day on which banks are
open for business in Los Angeles, California.

         1.3 Dollars. "Dollars" or "$" shall mean lawful money of the United
States of America in immediately available funds.

         1.4 Effective Date. "Effective Date" shall mean the date of this
Agreement.

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         1.5 Force Majeure. "Force Majeure" shall mean any of the following
events or conditions, acts of state or governmental action, orders, legislation,
regulations, restrictions, priorities or rationing, riots, disturbance, war,
strikes, lockouts, slowdowns, prolonged shortages of energy supply, interruption
of transportation, embargo, fire, earthquake, flood, hurricane, typhoon.
explosion and accident.

         1.6 Payment Period. "Payment Period" shall commence on March 31, June
30, September 30 or December 31, whichever first follows the initial sale of and
service related to the Product, any Derivative Product and any Reserved Product,
and continue for each of March 31, June 30, September 30 and December 31 for as
long as Licensee sells the Products and any Derivative Product and Licensor
sells any Reserved Products.

         1.7 Products. "Products" shall mean the products, and only the
products, described in Exhibit "C" attached hereto and made a part hereof

         1.8 Reserved Products. "Reserved Products" shall mean the products, and
only the products, described in Exhibit "D" attached hereto and made a part
hereof.

         1.9 Technology. "Technology" shall mean any and all inventions and
discoveries, whether patentable or not (including without limitation any and all
patents and patent applications and extensions resulting therefrom), processes,
trade secrets, trade names, copyrights, mask work rights, know-how, computer
programs and software and hardware relating thereto, computer source codes,
methods, contrivances, plans, processes, specifications, experiments, circuit
descriptions. suggested circuit board layouts, parts, lists, test fixtures and
procedures, manuals, instruction devices, layouts, schematics, drawings,
prototypes, system operating maintenance and instruction manuals and other
intellectual property rights which have been created by or at the direction of
Licensor or any person or entity on behalf of Licensor or directly or indirectly
engaged by Licensor (including without limitation all subcontractors,
consultants and research and development partners or team members) which have
been, are or will be used to develop, design, manufacture, assemble, sell,
distribute, use, install, service or test the Products or any of them, A
description of the Products is set forth in Exhibit "C" attached hereto and made
a part hereof.

2.       Grants of Rights.

          2.1  Ownership of Technology and Products.

               (a) Licensor represents and warrants to Licensee that all rights,
title and interest in and to the Technology and the Products are currently owned
by Licensor free and clear of any encumbrances or liens.

               (b) Licensor hereby represents and warrants to Licensee that
Licensor has and shall maintain full power and authority to use, license, grant
rights to or otherwise dispose of the Technology and the Products without
infringing a third party's patent or other rights in the Technology and the
Products.

               (c) Licensor shall deliver to Licensee an opinion of Licensor's
patent counsel that Licensor has the right to grant the licenses granted
hereunder.

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               (d) The failure of Licensor to comply with any of the
representations or warranties in section 11(a) (b) or (c) hereof at any time
after the Effective Date shall constitute a material breach of this Agreement.

          2.2  Exclusive license of Technology_and Products,
               ---------------------------------------------

               (a) As of the Effective Date, Licensor grants to Licensee, during
the Term of this Agreement the exclusive, world-wide right and license to use
and practice the Technology in order to develop, design, make, use, sell and
service the Products other than the Reserved Products, This right and license
includes, without limitation, the rights: (i) to develop, design, manufacture,
assemble, sell, distribute, lease, install, test, repair, service and use any
and all Products incorporated within the LifeShirt System; (ii) to maintain the
Products incorporated within the LifeShirt System; (iii) to practice the methods
and processes involved in the use of the Products incorporated within the
LifeShirt System; (iv) to make and have made, to use and have used and to
maintain and have maintained, machines, tools, instrumentality's and materials
in connection with the development, design, manufacture, assembly, installation,
testing, repair, servicing and use of the Products incorporated within the
LifeShirt System; and (v) to use and have used methods and processes insofar as
such machines, tools, instrumentality's, materials, methods and processes are
involved in or incidental to the development, design, manufacture, installation,
testing or repair of the Products incorporated within the LifeShirt System. All
rights granted herein shall be exclusive to Licensee, but Licensor shall have
full right and license to use and practice the Technology and any improvements
and to make, use and sell the Reserved Products.

               (b) Licensee agrees that Licensor shall retain title and interest
in and to any and all derivative patents related to the Products incorporated
within the LifeShirt System and Technology discovered by Licensor following the
signing of this Agreement (the "Derivative Patents"); provided that in the
event Licensor, within a reasonable time after the invention of any Derivative
Patent, fails to notify Licensee in writing that Licensor intends to apply for
said Derivative Patents at Licensor's expense, then Licensee, at Licensee's
sole, exclusive and irrevocable option (the "Option"), may apply for the
Derivative Patents on behalf of and in the stead of Licensor, as Licensor's
attorney-in-fact, at Licensee's expense, and thereafter, upon obtaining said
Derivative Patent(s), Licensor shall assign any and all right, title and
interest in and to any and all Derivative Patent(s) to Licensee; and Licensor
hereby irrevocably appoints Licensee as its attorney-in-fact (which appointment
is coupled with an interest) with full power of substitution to execute, verify,
acknowledge and deliver any documents necessary to apply for, prosecute, obtain
and maintain such Derivative Patents, which Licensor may fail to promptly
execute, verify, acknowledge and/or deliver after Licensee's request therefor.
In the event Licensor gives Licensee written notice of its intention to proceed
with any Derivative Patent, as set forth herein, and does proceed within a
reasonable time to apply for, prosecute, obtain and maintain the Derivative
Patents at Licensor's expense, then Licensor shall retain and own all right,
title and interest in and to the Derivative Patents; and Licensor shall license
the Derivative Patents to Licensee on the same terms as are set forth in this
Agreement for the Products and Technology related to the LifeShirt System

               (c) Licensee agrees that Licensor shall retain all patent rights
for the Technology and the Products, except for the events contemplated in
Sections 2.2(b) above (License's Option re: Derivative Patents) and 7.2 (re:
Licensor's going out of business).

                                     Page 3
<PAGE>

               (d) As soon as practicable after the Effective Date, but in no
event later than sixty (60) days after the Effective Date, Licensor shall
provide to Licensee, at no additional cost to Licensee, specific and necessary
information with respect to the LifeShirt System and with respect to the
Technology and the Products.

               (e) Licensee shall have the right to sublicense the LifeShirt
System and related services (i) so long as each sublicensee or assignee agrees
to be bound by all of the terms and conditions included in this Agreement; and
(ii) so long as Licensor is given prior written notice of any such sublicense or
assignment and has a meaningful right of consultation regarding the sublicense
or assignment.

               (f) The exclusivity of this license shall survive any sale,
merger, acquisition or other reorganization of Licensor and any assignment,
hypothecation or other transfer of any of the rights licensed hereunder by
Licensor to any third party and Licensor specifically agrees to obligate any
such third parties to assume Licensor's duties to Licensee hereunder.

3.       Compensation Payable to Licensor/Licensee.

         3.1  Royalty.
              --------

              (a) Licensee agrees to transfer or pay to Licensor, for granting
the rights and licenses described in Section 2 hereof:

                   (1) Licensee agrees to issue shares of common stock of
Licensee (the "Common Stock") to Licensor, valued equally with the founders'
shares, equal to twenty-three and one-half percent (23.5%) of the total shares
or 235,000 shares of Licensee's Common Stock. Licensee agrees to grant piggyback
registration rights in the Common Stock if and when Licensee makes an initial
public offering of its securities.

                   (2) A royalty which shall be computed as three percent (3%)
of Licensee's gross revenues from sales of the Product and any Derivative
Product licensed by Licensee from Licensor and services related to the Product
and any Derivative Product licensed by Licensee from Licensor, as such shall be
computed in accordance with generally accepted accounting principles; and paid
following the end of each quarterly Payment Period as set forth in Section 12
hereinbelow (the "Quarterly Royalty Payments").

                   (3) Subject to events of Force Majeure, Licensee agrees to
pay Licensor minimum Quarterly Royalty Payments that shall, in the aggregate,
total not less than Two Hundred Fifty Thousand Dollars ($250,000) (the "Minimum
Royalty") for the "Minimum Royalty Year". The Minimum Royalty Year is defined as
the second year of a two-year period, with such two-year period commencing on
the first day of any commercial sales of the Product or licensed Derivative
Product.

              (b) Licensor agrees to transfer or pay to Licensee, for permitting
Licensor to retain the rights and licenses to the Reserved Products described in
Section 2 hereof:

                   (1) A royalty which shall be computed as five percent (5%) of
Licensor's gross revenues from sales of Reserved Products and services related
to the Reserved Products, as

                                     Page 4
<PAGE>

set forth on Exhibit "D", which incorporate or utilize any of the Product,
Derivative Product or TechnoLogy, as such shall be computed in accordance with
generally accepted accounting principles; and paid following the end of each
quarterly Payment Period as set forth in Section 3.2 hereinbelow.

         3.2      Payments of Fees and Royalties.

                   (a) All royalty payments under Section 3.1(a)(2), 3.1(a)(3)
and 3.l(b)(l) hereof shall be made by check payable to the respective party
entitled to such royalty payments not later than thirty (30) days following the
Payment Period.

                   (b) Whenever any payment hereunder shall be due on a day,
which is not a Business Day, such payment shall be made on the immediately
preceding Business Day.

4.       Prosecution and Maintenance of Patents.

         4.1 Licensor represents and warrants that all of the patents for the
Products on the attached Exhibit "C" are in force as set forth on Exhibit "C"
and Licensor will continue to prosecute and maintain, amend, update, extend or
otherwise take any and all actions required for such patents for the Products
and shall take any and all other actions, legal or otherwise, which it considers
necessary or desirable to do so. Licensee shall have the right to be kept
informed of the status and progress of all actions instituted by Licensor
pursuant to this Section 4.1. Licensor shall support all such efforts by
Licensee.

5.       Protection of Technology and Products.

         5.1      lnfringements.
                  --------------

                  (a) Licensor shall take any and all actions, legal or
otherwise, which, in its sole discretion, it considers necessary or desirable to
terminate infringements of the Technology or any Product or any unfair
competition with any Product and/or against any individual(s) or entity(ies)
which Licensor deems, in its sole discretion, to be acting in contravention of
Licensor's intellectual property or proprietary rights. Licensee shall have the
right to be kept informed of the status and progress of all actions instituted
by Licensor pursuant to this Section. Licensor shall support all motions and
other efforts by Licensee to become a party jointly with Licensor to such
action.

                  (b) Each party hereto shall pay all the fees and expenses of
their respective legal counsel incurred in connection with actions initiated
pursuant to this Section. If the parties hereto agree to use the same legal
counsel in any such action they shall also agree on their respective
responsibilities with respect to payment of the fees and expenses of such
counsel.

                  (c) If Licensor does not institute an action within one
hundred twenty (120) days after receiving notice from Licensee of any
infringement of the Technology or any Product or any unfair competition with any
Product and/or against any individual(s) or entity(ies) which Licensee deems, in
its sole discretion, to be acting in contravention of Licensor's intellectual
property or proprietary rights, Licensee may institute any action with respect
thereto. Licensor shall have the right to be kept informed of the status and
progress of all such actions instituted by Licensee pursuant to this Section and
discussions between the parties must be held as to the advisability of

                                     Page 5
<PAGE>

such action. Licensee shall support all motions and other efforts by Licensor to
become a party jointly with Licensee to such action. Licensee shall not be under
any obligation to institute any such action,

                  (d) Any recoveries or settlement proceeds (or parts thereof)
received from suits or settlements involving an action initiated pursuant to
this Section by either party or agreed to relating to the Technology or Products
shall be applied first to reimbursing each party for such fees, expenses and
other costs as it may have incurred in connection with such action or
settlement, and then the balance, if any, to be divided between Licensor, on the
one hand, and Licensee, on the other hand, according to a fair determination of
each party's actual and potential losses and damages to which. the recovery
relates. In the event Licensor and Licensee cannot agree on the division between
them, the issue shall be decided by arbitration pursuant to section 8.3 of this
Agreement.

         5.2 Use of Name in Suit. Where, in the judgment of the party
prosecuting an action under section 5.1 hereof, it is necessary to use the other
party's name to prosecute such action, such other party agrees to allow the
prosecuting party to so use the name of such other party, provided, however,
that the prosecuting party agrees to hold such other party harmless against any
court costs, attorney's fees, or damages resulting solely from the use of such
other party's name by the prosecuting party in such action and to indemnify the
non-prosecuting party.

         5.3 Detect and Report Infringements. Each party agrees to keep watch to
detect any actual or suspected unauthorized use of the Technology or any Product
and any attempted passing-off by imitation of any product, and shall notify the
other party in writing of any such actual or suspected unauthorized use and any
such attempted passing-off within thirty (30) calendar days after receiving
knowledge of the actual or suspected unauthorized use or the attempted
passing-off.

6.       Defensive Litigation.

         6.1      Actions Brought by Third Parties.
                  ---------------------------------

                  (a) Licensor shall indemnify and hold Licensee harmless from
and against any adverse final monetary judgment rendered against Licensee in any
action brought against any party asserting the infringement by Licensee or any
licensee or assignee of Licensee of rights of a third party (including without
limitation patent rights) due to the use or practice by Licensee or any licensee
or assignee of Licensee of the Technology or the Product

                  (b) Licensor shall, at its own expense, defend Licensee from
and against any such claim, provided, however, that Licensor shall not settle
any action without the prior written consent of Licensee, which consent shall
not be unreasonably withheld.

                  (c) Each party hereto will indemnify and hold harmless the
other party against any losses, claims, damages, expenses or liabilities to
which the indemnified party may become subject, under federal or state law,
insofar as such losses, claims, damages, expenses or liabilities (or actions in
respect thereof) arise out of or are based upon any untrue statement or alleged
untrue statement of a material fact made by the indemnifying party, its
officers, shareholders, agents, employees, and representatives in the use and
marketing of the Product, Derivative Product or

                                     Page 6
<PAGE>

Technology (so long as such untrue statement or alleged untrue statement of a
material fact has not been provided to the indemnified party by the indemnifying
party).

         6.2      Notification of Suits.
                  ----------------------

                  (a) Licensee shall give Licensor written notice of any suit or
action described in section 5.1 hereof wherein Licensee is named as a party.
Licensee shall give such written notice within ten (10) days after acquiring
such knowledge or prior to the expiration of time which is reasonably necessary
to prepare a response for filing with a court, whichever occurs first,

                  (b) Licensor shall give Licensee written notice of any suit or
action brought against Licensor with respect to the Technology or any Product
asserting the infringement on rights of a third party (including, without
limitation, patent rights) due to the use or practice of the Technology or any
Product. Licensor shall give such written notice within ten (10) days after
acquiring such knowledge or prior to the expiration of time which is reasonably
necessary to prepare a motion to intervene for filing with a court or other
judicial body, whichever is first to occur.

         7.       Termination
                  -----------

                  7.1 Term of Agreement. Unless it is terminated on an earlier
date pursuant to Section 2.2 or Section 7,2 herein, the license granted
hereunder shall be for a period of ten (10) years, commencing on the Effective
Date hereof (the "Term"). LifeShirt.com, at its sole option and with thirty (30)
days notice, may extend this Agreement beyond the Term for additional periods of
ten (10) years under the same terms and conditions (the "Additional Term"), for
as many successive ten (l0-year Additional Terms as it so elects. The
obligations of Licensee and Licensor to pay royalties on any Product and any
Reserved Product, respectively, shall terminate on the date this Agreement
terminates. Royalties accrued to that date shall be paid in accordance with this
Agreement.

         7.2      Notice of Termination.
                  ----------------------

                  (a) Upon the occurrence of a material breach or default as to
any obligation hereunder by either party and the failure of such party, within
sixty (60) days after receiving written notice thereof from the other party, to
cure (or to provide adequate assurance of cure of) such material breach or
default, this Agreement may be terminated by the other party by giving written
notice to the breaching party of such termination, such termination being
immediately effective upon the giving of such notice of termination to the
breaching party.

                  (b) In the event of a material breach of any of the provisions
hereof by either party, the other party may seek to recover monetary damages
against the breaching party in accordance with the provisions of section 7.3
hereof.

                  (c) Notwithstanding anything to the contrary herein, Licensee
shall be entitled to prevent termination by Licensor hereunder by providing such
adequate assurance of its performance of any prospective award for damages in
favor of Licensor in such amount and in such manner, including but not limited
to the posting of a bond, as shall be determined by the arbitrator pursuant to
section 7.3 acting on an expedited preliminary basis prior to actual full
arbitration proceedings.

                                     Page 7
<PAGE>

                  (d) In the event of any of the following, any and all right,
title and interest in and to the Technology and Products will automatically (and
with no further action required on behalf of Licensor or Licensee) be assigned
to Licensee to allow Licensee to maintain its exclusive rights to the Technology
and Products per this Agreement (i) Licensor files in any court pursuant to any
statute of the United States or of any individual state, a petition in
bankruptcy or insolvency or for reorganization or for an arrangement or at the
appointment of a receiver or trustee of the party of its assets, (ii) Licensor
proposes a written agreement of composition or extension of its debts, (iii)
Licensor is served with an involuntary petition against it, filed in any
insolvency proceeding, and such petition shall not be dismissed within ninety
(90) days after filing thereof; (iv) Licensor proposes or is a party to any
dissolution or liquidation, (v) Licensor makes an assignment for the benefit of
creditors, or (vi) Licensor discontinues its operations for any reason
whatsoever.

                  (e) In the event of any of the following, any and all right,
title and interest in and to the Technology and Products will automatically (and
with no further action required on behalf of Licensor or Licensee) be assigned
to Licensor to allow Licensor to recover its rights to the Technology and
Products per this Agreement: (i) Licensee files in any court pursuant to any
statute of the United States or of any individual state, a petition in
bankruptcy or insolvency or for reorganization or for an arrangement or at the
appointment of a receiver or trustee of the party of its assets, (ii) Licensee
proposes a written agreement of composition or extension of its debts, (iii)
Licensee is served with an involuntary petition against it, filed in any
insolvency proceeding, and such petition shall not be dismissed within ninety
(90) days after filing thereof; (iv) Licensee proposes or is a party to any
dissolution or liquidatIon, (v) Licensee makes an assignment for the benefit of
creditors, or (vi) Licensee discontinues its operations for any reason
whatsoever.

8.       Miscellaneous.

         8.1      Assignments.
                  ------------

                  (a) Except as is permitted under Section 2.2 above, this
Agreement and any and all of the rights and obligations of either party
hereunder shall not be assigned, delegated, sold, transferred, sublicensed or
otherwise disposed of, by operation of law or otherwise, without the prior
written consent of the other party which consent shall not be unreasonably
withheld; provided, however, that (i) Licensor's consent shall not be required
with respect to any assignment, delegation, sale, transfer, sublicense or other
disposition by Licensee to any of its Affiliates; and (ii) withholding one's
consent because the proposed assignee, delegate, transferee, sublicensee or
disposee is a competitor of such party shall not be deemed to be unreasonable,
for the purposes of this Section. Any attempted assignment, delegation, sale,
transfer, sublicense, or other disposition, by operation of law or otherwise, of
this Agreement or any rights or obligations hereunder contrary to this Section
8.1 shall be a material breach of this Agreement by the attempting party, shall
be void and shall be of no force or effect

                  (b) This Agreement shall be binding upon, and inure to the
benefit of, Licensor and Licensee and their respective successors and assigns,
to the extent such assignments are in accordance with this Section 8.1.

         8.2 Governing Law. This Agreement shall be governed, interpreted and
construed in accordance with the laws of the State of California.

                                     Page 8
<PAGE>

         8.3      Arbitration.
                  ------------

                  (a) Any dispute, controversy or claim arising out of or
relating to this Agreement or to a breach thereof, including its interpretation,
performance and termination, shall be submitted to and finally resolved by
arbitration. The arbitration shall be conducted in accordance with the
commercial rules of the American Arbitration Association, which shall administer
the arbitration and act as appointing authority. The arbitration, including the
rendering of the award, shall take place in Los Angeles, California, and shall
be the exclusive forum for resolving such dispute, controversy or claim. For the
purposes of this arbitration, the provisions of this Agreement and all rights
and obligations thereunder shall be governed and construed in accordance with
the laws of the State of California. The decision of the arbitrators shall be
executory, final and binding upon the parties hereto, and the expense of the
arbitration (including, without limitation, the award of attorneys' fees to the
prevailing party) shall be paid as the arbitrator determines. Judgment based on
the decision of the arbitrator may be entered by any court of competent
jurisdiction. Notwithstanding this, judgment upon the award of the arbitration
may be entered in any court where the arbitration takes place or any court
having jurisdiction thereof, and application may be made to any court for a
judicial acceptance of the award or order of enforcement.

                  (b) Notwithstanding anything contained in sub-section (a)
above to the contrary, each party shall have the right to institute judicial
proceedings against the other party or anyone acting by, through or under such
other party in order to enforce the instituting party's rights hereunder through
reformation of contract, specific performance, injunction or similar equitable
relief.

         8.4 Waiver. A waiver of any breach of any provision of this Agreement
shall not be construed as a continuing waiver of other breaches of the same or
other provisions of this Agreement.

         8.5 No Other Relationship. Nothing herein contained shall be deemed to
create an agency, joint venture or partnership relationship between the parties
hereto. At no time shall either party make commitments or incur any charges or
expenses for or in the name of the other party.

         8.6 Notice. Unless otherwise specifically provided in this Agreement,
all notices, demands, requests, consents, approvals or other communications
(collectively and severally called "Notices") required or permitted to be given
hereunder, or which are given with respect to this Agreement, shall be in
writing, and shall be given by: (a) personal delivery (which form of Notice
shall be deemed to have been given upon delivery), (b) by telegraph or by
private airborne/overnight delivery service (which forms of Notice shall be
deemed to have been given upon confirmed delivery by the delivery agency), (c)
by electronic or facsimile or telephonic transmission, provided the receiving
party has a compatible device or confirms receipt thereof (which forms of Notice
shall be deemed delivered upon confirmed transmission or confirmation of
receipt), or (d) by mailing in the United States mail by registered or certified
mail, return receipt requested, postage prepaid (which forms of Notice shall be
deemed to have been given upon the fifth (5th) business day following the date
mailed). Notices shall be addressed to the addresses set forth in the
introductory paragraph of this Agreement, or to such other address as the
receiving party shall have specified most recently by like Notice, with a copy
to the other parties hereto.

                                     Page 9
<PAGE>

         8.7 Entire Understanding. This Agreement and all exhibits hereto
together embody the entire understanding between the parties relating to the
subject matter hereof, whether written or oral, and there are no prior
representations, warranties or agreements between the parties not contained in
this Agreement.

         8.8 Invalidity. If any provision of this Agreement is declared invalid
or unenforceable by a court having competent jurisdiction, it is mutually agreed
that this Agreement shall endure except for the part declared invalid or
unenforceable by order of such court. The parties shall consult and use their
best efforts to agree upon a valid and enforceable provision, which shall be a
reasonable substitute for such invalid or unenforceable provision in light of
the intent of this Agreement.

         8.9 Amendments. Any amendment or modification of any provision of this
Agreement must be in writing, dated and signed by each party hereto.

         8.10 Fees Payable, Licensor and Licensee acknowledge that there is no
broker's commission, finder's fee or other amount payable with regard to this
transaction, and Licensor and Licensee agree to indemnify and hold the other
harmless from and against all liability, claims. demands, damages or costs of
any kind arising from or connected with any broker's or finder's fee,
commission or charge claimed to be due any person arising from the indemnitor's
conduct with respect to this Agreement and the transactions contemplated herein

         8.11. Attorneys' Fees. In the event there is any dispute arising out
of or related to this Agreement, the prevailing party shall be entitled to its
reasonable attorneys' fees and other costs and expenses incurred in resolving
such dispute including, but not limited to, all fees and costs through
arbitration or any appeals.

         8.12 Survival of Contents. Notwithstanding anything else in this
Agreement to the contrary, the parties agree that sections 2.1, 2.2, 3.1. 3.2,
4.1, 5.1, 5.2, 5.3, 7.2, 8.1, 8.2, 8.3, 8.4, 8.5, 8.6. 8.7, 8.8, 8.10, 8.11,
8.12, 8.15, and 8,16 shall survive the termination of this Agreement to the
extent required thereby for the full observation and performance by one or both
of the parties hereto.

         8.13 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be an original. Such counterparts shall
together constitute but one and the same instrument.

         8.14 Table of Contents and Headings. Any table of contents accompanying
this Agreement and any headings contained herein are for directory purposes
only, do not constitute a part of this Agreement, and shall not be employed in
interpreting this Agreement.

         8.15 Parties to Agreement. The parties to this Agreement are Licensor
and Licensee, and no other persons or entities

         8.16 Cross-Breach. The parties acknowledge and agree that a material
breach of that certain Research and Development Agreement between the parties
dated the same date as this Agreement shall be deemed a breach of this
Agreement.

                                    Page 10
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have signed this Agreement.

                                   "Licensor"

                                    Non-Invasive Monitoring Systems. Inc., a
                                    Florida corporation

                                   By:  /s/ Marvin Sackner
                                        ------------------
                                        Marvin Sackner

                                   Its: CEO
                                        --------

                                   "Licensee"

                                   LifeShirt.com, Inc., a Delaware corporation

                                   By:  /s/ Andrew Behar
                                        ------------------
                                   Print Name: Andrew Behar
                                               ------------------
                                   Title: Chief Operating Officer
                                          -----------------------

                                    Page 11
<PAGE>

                                   EXHIBIT "C"

The following are the Products and Technology licensed hereunder:

                              The LifeShirt System

The LifeShirt system consists of any wearable garment that incorporates two or
more of the following sensor types: inductive plethysmographic sensors,
electrocardiographic electrodes and/or accelerometer. These wearable garments
may store and/or forward data for subsequent processing and analysis by
RespiEvents software or any software that uses RespiEvents as its basis.

The patents and pending patent listed below support the LifeShirt system.

                           LifeShirt Licensed Patents

This lists the pertinent patents for LifeShirt. Full details can be obtained by
going to the database of the U.S. Patent Office: http://www.
uspto.gov/patftindex.html. These patents refer only to those incorporated in
LifeShirt, They do not refer to individual usage in current Nims' stand alone or
LAN products.

United States Patent                                                   4,834,109
Watson                                                              May 30, 1989
================================================================================
Single          position        non-invasive         calibration       Technique

                                    Abstract

An improved method for calibrating a non-invasive apparatus for measuring
respiration volume of the type wherein signals indicative of the rib cage and
abdomen contributions to respiration volume are provided, and wherein at least
one of the signals is multiplied by a predetermined weighting factor for
reflecting the relative contributions of the rib cage and abdomen to respiration
volume. The calibration method non-invasively determines the weighting factor
by: totaling, during a period of breathing, a plurality of values of a parameter
indicative of the relative amplitude, for each breath, of uncalibrated rib cage
and abdomen signals: and dividing the average variability of the means of the
total of the values of one of the rib cage and abdomen signals by the average
variability of the mean of the total of the values of the other signal. The
quotient so derived represents the weighting factor. An apparatus for
calibrating in accordance with the method is also disclosed.

                                    Page 12
<PAGE>

United States Patent                                                   4,452,252
Sackner                                                             June 5, 1984
================================================================================
Non-invasive        Method for monitoring             Cardiopulmonary Parameters

                                    Abstract

A method for monitoring cardiopulmonary events is disclosed. The basic method
comprises looping an extensible conductor (14) in close encircling relation
about the neck (12) of the subject (10), providing a signal indicative of the
inductance of the loop, and monitoring the signal. This signal contains both
qualitative and quantitative cardiopulmonary information In accordance with
another aspect of the method, an extensible conductive loop (14) is disposed in
close encircling relation about the head such that the plane defined by the loop
extends through the mouth. By providing a signal indicative of changes in the
inductance of the loop, qualitative and quantitative information for mouth
volume may be obtained.

United States Patent                                                   4,456,015
Sackner                                                            June 26, 1984
================================================================================
Non-invasive method for semiquantitative measurement of neck volume changes

                                    Abstract

A method of semiquantitatively measuring a, subject's neck volume includes the
steps of providing an extensible conductor in the form of a loop having a
predetermined height; providing a signal variably responsive in value to changes
in the inductance of the conductor; calibrating the signal by determining
reference signal values obtained with the conductor disposed about at least two
known volumes and using the reference signal values to establish the
relationship between signal value and the volume enclosed by the conductor;
disposing the conductor in close encircling relationship about the subject's
neck; calibrating the signal for intrapleural pressure by using an invasive
technique as a reference for determining a plurality of intrapleural pressures
for the subject and simultaneously determining the signal value for each such
intrapleural pressure measurement, thereby establishing the relationship between
intrapleural pressure and signal value; discontinuing the reference technique;
determining the signal value with the subject's airway closed, correlating the
closed airway signal value with intrapleural pressure based on the established
relationship between intrapleural pressure and signal value; and correlating
intrapleural pressure obtained in accordance with the previous correlating step
with the volume enclosed by the conductor based on the established relationship
between signal value and enclosed volume.

United States Patent                                                   4,777,962
Watson                                                          October 18, 1988
================================================================================
Method and apparatus for distinguishing central obstructive and mixed apneas by
external monitoring devices which measure rib cage and abdominal compartmental
excursions during respiration

                                    Page 13
<PAGE>

United States Patent                                                   5,588,425
Sackner, et al.                                                December 31, 1996
================================================================================
Method and apparatus for discriminating between valid and artifactual pulse wave
forms in pulse oximetry

                                    Abstract

A method and apparatus for use in pulse oximetry for discriminating between
valid pulse waveforms and artifactual pulse waveforms. Systolic upstroke times
for valid pulse waveforms are in a consistent, narrow range which varies only
slightly from subject to subject. This narrow range, which may be defined
empirically for each subject or established by a default setting applicable to
all subjects, defines a predetermined range of systolic upstroke times
indicative of valid pulse waveforms. The systolic upstroke time of each pulse
waveform is compared against the predetermined range, and pulse waveforms are
deemed valid only if their systolic upstroke times are within the predetermined
range. Only arterial oxygen saturation levels based on validated pulse waveforms
are accepted. The present invention may also be used to validate the heart rate
and/or RR, intervals of an ECG, and for discriminating between sleep and
wakefulness in a monitored subject.

               Issued July 1999: Final Copy of Claims Unavailable
         PATENT APPLICATION: MEANS FOR ANALYZING BREATH WAVEFORMS AS TO
                  THEIR NEUROMUSCULAR RESPIRATORY IMPLICATiONS
                   by Marvin A. Sackner and D. Michael Inman

         Claims for Measurement of Respiratory Drive from Breath Waveforms

         1. During tidal breathing, peak inspiratory flow and acceleration
derived from breath waveforms of the respiratory inductive plethysmograph serve
as indicators of drive from the respiratory center in the brain. Since sensors
of this device can be placed separately over the rib cage and abdomen
compartments and their values summed to give tidal volume, peak inspiratory flow
and acceleration values can be obtained from tidal volume, rib cage and abdomen
waveforms.

         2. The peak inspiratory flow and acceleration parameters from the
respiratory inductive plethysmograph are improvements over current methods in
that the technology is non-invasive, has capability for discrete or continuous
monitoring, and analyzes breath waveforms with a simple algorithm to obtain
these drive parameters.

         3. The measurement of breath by breath peak inspiratozy flow and
acceleration, and breath by breath ventilation as the product of respiratory
rate and tidal volume of the breath described in this patent application also
permit simultaneous computation of the ratio of respiratory drive to ventilation
on a breath by breath or time average.

         4. The ratio of peak inspiratory flow to ventilation is a dimensionless
number and is not affected by errors in volume calibration of the measurement
device: the ratio of peak inspiratory

                                    Page 14
<PAGE>

acceleration to ventilation yields a time value and is not subject to errors in
volume calibration of the measurement device.

         5. The peak inspiratory acceleration values should be measured during
the early part of inspiration, nominally within a window approximately + 300
msec. near the beginning detection of initial inspiration from breath waveforms.

         6, The ratio of drive to ventilation provides an objective measure of
breathlessness.

         7. Peak inspiratory flow and acceleration values can be obtained from
all instruments capable of collecting solely tidal volume or airflow; these
instruments include spirometers, pneumotachographs, body plethysmographs,
nasa-oral thermistors and naso-oral thermocouples among others.

         8. Peak inspiratory acceleration values can be obtained from
instruments measuring respiration that are applied externally to the body
surface such as the respiratory inductive plethysmograph, jerkin
plethysmograph, linear differential transformers, magnetometers, bellows
pneumograph, strain gauges, piezoelectric devices, and inductance
circumferential transformers among others. Other external respiratory monitoring
devices such as the impedance pneumograph and video transformation of torso
movements into a waveform display currently provide estimates of solely tidal
volume.

         9. Peak acceleration values can also be obtained from airway pressure.
intrapleural pressure, transdiaphragmatic pressure, neck inductive
plethysmography and breath sound measurements.

         10. The basis for the assertion that values of peak inspiratory flow
and acceleration measure respiratory drive is their good statistical correlation
to parameters derived from the moving time average diaphragmatic
electromyogram. Measures from the latter are considered as the standard by
which other methods such as the respiratory based peak inspiratory and
acceleration parameters in this patent application must he compared.

         11. Measurement of peak inspiratory flow and/or acceleration from the
aforementioned devices has diagnostic importance in the following situations in
which measurements of respiratory drive are affected.

         12. Assessment of integrity of the respiratory center in the brain by
the breathing of CO2 and/or low O2 gas mixtures -~ respiratory drive normally
increases with such stimulation.

         13. To assess baseline respiratory center activity across wake and
sleep stares and ascertain abnormalities; normally, drive is the highest in the
wake state, intermediate in Active or REM state, and lowest in Quiet or NREM
state.

         14. To assess respiratory center drive during obstructive
apneas/hypopneas where tidal volume may be absent or negligible but in which
peak inspiratory flow and acceleration values from rib cage and abdomen
compartments can provide a measure of respiratory drive.

                                    Page 15
<PAGE>

         15. To detect the presence of external expiratory resistive loading
during sleep such as snoring and/or "upper airway resistance syndrome."

         16. To serve as a set-point for manual or servo titration of positive
airway pressure of patients with snoring and/or "upper airway resistance
syndrome."

         17. To monitor for presence of bronchoconstriction which increases
drive in patients at risk such as patients with asthma, chronic obstructive
pulmonary disease, cystic fibrosis, etc.

         18. To gauge effect of anesthetic, sedative and analgesic agents that
usually depresses respiratory drive.

         19. To categorize respiratory drive in various disease as a measure of
status.

         20. To assess status of drive during mechanical ventilation--if
patient is completely controlled by the mechanical ventilator, then drive would
be virtually absent whereas if the patient is making efforts against the
ventilator, peak inspiratory flow and acceleration values would reflect this
situation. In the former, peak inspiratory flow or acceleration would be
equivalent to ventilator peak inspiratory flow or acceleration alone whereas in
the latter circumstance, the values would be greater.

         21. To assess status of respiratory muscles during potentially
fatiguing tasks such as 1) elastic loading as in pulmonary edema or Adult and
Infant Respiratory Distress Syndromes, 2) resistive loading as in asthmatic
attacks, COPD, and upper airway resistance syndromes, and 3) during cardiogenic
and non-cardiogenic shock states.

         22. As an indirect means to signal hypoxemic events in
newborns--respiratory drive increase.

         23. As a means to signal retained tracheobronchial secretions since
drive may increase under these circumstances,

         24. As a means to diagnose nocturnal brochospasm during sleep.

         25. As a means to detect respiratory center depression after
administration of narcotics to depress excessively high respiratory drive.

         26. As a means to monitor for presence of intrinsic PEEP positive end
expiratory pressure).

         27. As a means to detect respiratory distress in workers or military
personnel working in hazardous gaseous environments.

         Rapid Response Inductive Plethysmographic System.
         ------------------------------------------------

         Although results from analysis of peak inspiratory acceleration
paralleled those from peak inspiratory flow, acceleration values were more
variable than flow values. This was due to the relatively slow digital sampling
rate of the proprietary inductive plethysmographic hardware. The

                                    Page 16
<PAGE>

current hardware samples the transducer signal at 50 points/s, thereby filtering
out some of the true peak values of acceleration. Recently, new electronic
circuitry was developed to allow digital sampling rates to 200 points/s in order
to obviate this problem. This improves the measurement accuracy of peak
inspiratory flow and acceleration values. The rapid sampling rate is necessary
for accurate display of inductive plethysmography monitored breath waveforms
during high frequency ventilation (respiratory strokes between 4 and 15 Hz). The
system can serve as a rapid response trigger to initiate inspiratory inflation
by mechanical ventilator devices. The system improves timing accuracy or
inductive plethysmographic measurements of ventricular volume, systolic time
intervals, and carotid and internal jugular venous pulses. (6;7;47)

         The base frequencies of inductive plethysmographic transducers are
determined by inductance of transducer and the resistance and capacitance in the
oscillator circuitry. All these can be changed independently. For example.
increasing the number of turns of the transducer around the body part being
monitored, e.g., RC, AB or neck changes the oscillatory frequency of the signal
and improves the signal to noise ratio. By maximizing differences in oscillatory
signal frequencies between transducers, one can minimize electrical cross talk
between transducers thereby also increasing the signal to noise ratio between
adjacent inductive plethysmographic sensors. Another source of electrical noise
in the inductive plethysmographic signal is the cable carrying the
undermodulated signal to the demodulator module. This noise is minimized by
locating the oscillators directly on the transducer band with the inductive
plethysmographic hardware capable of accepting any number of oscillator
generated signals. Preliminary studies confirm greater consistency of peak
inspiratory flow and acceleration values by these hardware and transducer
operation modifications.

         The current, commercially available inductive plethysmographic hardware
(61) translated changes in transducer inductance to a signal that corresponded
linearly to changes in cross sectional area underneath the band (60), at a rate
of 50 Hz, with a signal to noise ratio of approximately 100 to 1, when the
"signal" was a normal breath,

         To increase data sampling rate from 50 points/s to 200 points/s, the
band frequency divider was reduced from 4096 cycles to 1024 cycles; band
oscillation frequency remained the same. To preserve and actually improve the
signal to noise ratio, two steps were taken. First, the oscillation period
counter was increased from 1O MHz to 40 MHz; keeping the oscillation period
resolution the same as in the 50 points/s hardware, Second, the isolation pot
cores used in the initial inductive plethysmographic hardware were replaced with
high performance toroids. The response of the pot cores was found to be
insufficient to allow accurate sampling to be accomplished in the new 5ms
(200Hz) window, but the new toroids yielded a better signal to noise ratio at
200Hz than the pot cores achieved, even at 50Hz.

         The current commercially available inductive plethysmographic hardware
utilizes Phillips 14O8PLOO-3B9 pot cores; in this rapid responsive system, these
were changed to Phillips 768XT188-3F3 toroids. The change in material (from 3B9
to 3F3) was a tradeoff - yielding increased bandwidth for reduced gain. The
change in configuration from pot core to toroid yielded a more than offsetting
increase in gain in exchange for slightly more manufacturing difficulty.

The digital circuitry of the hardware was also modernized, changing from
discrete 74 series CMOS logic to an integrated FPGA (Phillips PZ5128-Sl0A84).
This single FPGA contains all the digital logic of two inductive
plethysmographic channels and also has leftover capacity that serves as glue

                                    Page 17
<PAGE>

logic for the microcontroller. The microcontroller is now integrated onto the
same printed circuit card as the inductive plethysmographic channels, realizing
a single card QDC calibratable (58) inductive plethysmographic solution for the
first time. Utilization of surface mount technology and integrated FPGA reduced
the size of this single card to approximately half the size of the previous
inductive plethysmographic hardware card, which did not include the
microprocessor, a component that is necessary for QDC calibration and generation
of analog outputs. The two channel inductive plethysmographic channel system is
expanded to four to eight channels by keeping each oscillator on a separate base
frequency to avoid electrical crosstalk. This is implemented by replicating the
two-channel system, or using a higher density FPGA along with a higher
performance microcontroller such that additional inductive plethysmographic
channels are placed on a single card.

         Claims for Rapid Response Inductive Plethysmograph System
         ----------------------------------------------------------

         1. We have invented a rapid response inductive plethymographic system
that increases signal sampling rate by a factor of four. It hinges on reducing
the band frequency divider from 4096 cycles to 1024 cycles, increasing the
oscillation period counter from 10MHz to 40MHz and replacing isolation pot
cores used in current system with high performance toroids.

         2. This system improves the ratio of signal to electrical noise.

         3. Additional electronic improvements have been made to reduce the size
of the system and allow capability for additional inductive plethysmographic
channels on the same card that currently allows only two channels.

         4. This system improves the measurement accuracy of peak inspiratory
flow and acceleration values.

         5. The rapid sampling rate is necessary for accurate inductive
plethysmography breath waveform displays of breaths during high frequency
ventilation (respiratory strokes between 4 and 15 Hz).

         6. The rapid response system is needed for rapid triggering of the
initiation of inspiratory inflation by mechanical ventilator devices.

         7. The rapid system is required for timing accuracy of inductive
plethysmographic measurements of ventricular volume, systolic time intervals,
and carotid and internal jugular venous pulses.

         The signal to noise ratio from the inductive plethysmographic system is
increased by increasing the turns of the transducer around the body part being
monitored.

         9. The signal to noise ratio is also improved by mounting the
oscillator module directly on the transducer and hooking it to a demodulator
system on the body to eliminate the long recorder electrical cable, a major
source for the electrical noise.

         Rapid Trigger System for Initiating Mechanical Ventilator Inflation
         -------------------------------------------------------------------
         Breaths
         -------

                                    Page 18
<PAGE>

         Introduction

         In recent years, attention has been directed toward methods for
triggering initiation of inspiratory inflations by mechanical ventilators. For
babies, the concern has related to the delay and desynchronization owing to the
rapid breathing rates, intrinsic airway resistance, and transmission of the
pressure trigger (PT) or flow trigger (FT) pulse from the measurement site of
the trigger to the respirator. This delay that leads to asynchrony between
spontaneously breathing mechanically ventilated infants and the ventilator has
been associated with pneumothorax, intracranial hemorrhage, arid hemodynamic
instability. (38) To minimize trigger delay in babies, trigger pulses obtained
from sensors placed on the body surface such as the Grasby capsule, an
applanation device on the abdominal wall, and the impedance pneumograph have
been utilized as alternatives to devices on the airways. In adults, the major
concern dealing with triggering the effects of intrinsic PEEP and delay in
initiation the ventilator breath for overcoming such pressure with consequence
increase in work of breathing. Measurements of trigger effectiveness in terms of
delay, failure to trigger, and work of breathing have been made in models and
patients. The figure below illustrates the considerations in computing the delay
in the presence of intrinsic PEEP. below is reproduced from Figure 1 in the
paper by Nava et al. (36) From top to bottom, flow, esophageal pressure, and
airway pressure. The two solid lines identify on the esophageal pressure trace,
the inspiratory effort during pre-triggering. The initial portion of esophageal
pressure. between the onset of the negative deflection and the point
corresponding to the crossing of zero flow (dashed line) represents the effort
to overcome intrinsic PEEP. The second portion of the esophageal pressure trace,
between zero flow crossing and the point of its abrupt rise (and maximum
negative airway pressure), represents the effort to open the inspiratory valve
of the mechanical ventilator.

                                    Page 19
<PAGE>

                                    EXHIBIT D

The following are the Reserved Products reserved and cross-licensed hereunder:

NIMS shall have the right to use the 1) LifeShirt garment or individual
Respibands and 2) LifeShirt module and/or 3) HandSpring PDA processor, and 4)
supporting software in stand-alone products that have monitoring and/or alarming
(if 510(k) approval is obtained by NIMS) functions. A "stand-alone product"
monitors a single patient and is connected to a nearby PC or polygraph recorder
for display of real-time physiological waveforms with cable or wireless links.
Monitoring of several stand-alone systems can only be accomplished with LAN to a
central PC station located within the facility, not off-site, This product will
be sold by NIMS only to hospital accounts, Any other facility that requests such
a device will be referred to LifeShirt.com who may sell them the LifeShirt
System or refer the account back to NIMS for sale. These additional features,
when they become available, will be licensed to LifeShirt.com under this
licensing agreement.

                                    Page 20
<PAGE>

         RESEARCH AND CONSULTING AGREEMENT

         This Research and Consulting Agreement (the "Agreement") is made and
entered into as of October 28, 1999 by and between LifeShirt.com, Inc., a
Delaware corporation, whose business address is P. O. Box 262, Ojai, California
93024 (hereinafter referred to as "LifeShirt.com") and Non-Invasive Monitoring
Systems, Inc., a Florida corporation whose business address is 1840 West Avenue,
Miami Beach, Florida 33139 (hereinafter referred to as "NIMS").

                                    RECITALS

WHEREAS, LifeShirt.com, in connection with its business, has acquired certain
inventions, patents and patent rights, confidential information, proprietary
information and trade secrets from NIMS pursuant to that certain license
agreement between LifeShirt.com and NIMS dated as of even date herewith (the
"License Agreement"); and

WHEREAS, LifeShirt.com acknowledges that NIMS has expertise and confidential and
proprietary information of its own; and

WHEREAS, to enable NIMS to effectively perform its services under this
Agreement, it may be necessary for LifeShirt.com to disclose to NIMS certain of
its inventions, proprietary or confidential information, and/or trade secrets
which may not be disclosed to other persons or entities by NIMS and NIMS may
need to divulge proprietary or confidential information to LifeShirt.com which
may not be disclosed to other persons or entities by LifeShirt.com.

NOW, THEREFORE, in consideration of the premises and mutual covenants of the
parties, it is agreed as follows:

AGREEMENT

1. Statement of Work. The services to be performed by NIMS are in support of
LifeShirt.com's garment with embedded sensors that records and transmits data
over the Internet for respiration, ECG, and over 35 other physical and emotional
vital signs into a small digital recorder products and associated technology
(the "LifeShirt System"). The services generally shall consist of offering
expert advice, research support, hardware and software design, and direction of
testing for safety and effectiveness in the development and technical support of
the LifeShirt System. The design specifications, details and milestones
associated with these goals are set forth in the Statement of Work, attached and
incorporated as if fully set forth herein as Appendix A.

         The performance of this Agreement and the Statement of Work pertaining
thereto shall be coordinated with the director of research and development (to
be hired) of LifeShirt.com with concurrence from Andrew Behar, Chief Operating
Officer, except where mutually agreed upon in writing by LifeShirt.com and NIMS.

                                    Page 21
<PAGE>

         Attainment of the task completion milestones described in Appendix A
shall constitute the only performance obligations required to be achieved by
NIMS pursuant to this Agreement. NIMS acknowledges that LifeShirt.com may raise
capital through debt or equity financing and that the task completion milestones
described in Appendix A may need to be revised to accommodate the requests of
any investors in LifeShirt.com. NIMS will negotiate any modification in the
task completion milestones or request for additional services in good faith.

         Additional services related or unrelated to the task completion
milestones included on Appendix A shall constitute an amendment to this
Agreement and shall be effective only if authorized in writing by the designated
representatives of both LifeShirt.com and NIMS. Costs for such additional
services shall be calculated and billed separately and shall be in addition to
the compensation outlined hereinafter for this Agreement.

         The parties acknowledge and agree that research projects which may or
may not be related to the LifeShirt System may be undertaken by NIMS either
during the term of this Agreement or in the future and that the compensation and
payment due to NIMS for such research projects shall be negotiated on a good
faith basis by the parties as such opportunities arise.

2. Transfer Of Intellectual Property. LifeShirt.com shall retain all licensing
rights to the LifeShirt System technology pursuant to the terms and conditions
of the License Agreement. In addition, any and all rights to the inventions or
technologies related to the LifeShirt System which are developed by NIMS
pursuant to this Agreement or which arise from or are created by information
used in providing services under this Agreement (the "Derivative Patents") shall
be pursuant to the terms and conditions of the License Agreement.

3. Compensation and Payment. In consideration for the services and performance
milestones described in Appendix A, LifeShirt.com agrees to pay NIMS a total of
two hundred sixty-eight thousand dollars ($268,000) in U.S. funds according to
the following schedule:

              (i) Ten thousand dollars ($10,000) shall be payable within ten
(10) days of the execution of this Agreement;

              (ii) Forty-three thousand dollars ($43,000) shall be due on
November 1, 1999 but payable by November 19, 1999 (the "Initial Installment
Payment"). NIMS agrees that the November 19, 1999 date can be reasonably delayed
provided that LifeShirt.com notifies NIMS of such a delay prior to November 19,
1999 and such a delay is the result of a delay in the receipt of funds arising
from the private placement of the securities of LifeShirt.com. Thereafter,
forty-three thousand Dollars ($43,000) is due and payable on the first day of
each mouth following the initial Installment Payment for a total of five months
(the "R&D Period"). At the end of the R&D Period, the LifeShirt System will be
submitted by NIMS for FDA approval (the "Submission") or if this is deemed
unnecessary by LifeShirt.com and NIMS acting together, a letter to file in lieu
of a 501(k) Submission will be employed in order to release the Products for
marketing.

                                    Page 22
<PAGE>

         Time is of the essence in this Agreement. If the attainment of the
Submission is delayed due to factors under the (i) sole control of
LifeShirt.com; or (ii) requirements by FDA; or (iii) third parties responsible
for drafting the 501(k) Submission; or (iv) vendor(s) that supplies components
of the LifeShirt System (garment, electronics, HandSpring computer); or (v)
testing service(s) for meeting electrical safety requirements according to FDA
regulations; or (vi) any other Factor beyond NIMS' control, then NIMS shall have
a period of time equal to the length of any such delay (the "Cure Period") to
change or correct those circumstances so that NIMS can continue to perform
pursuant to the terms of this Agreement.

4. Reimbursable Expenses, NIMS shall make any necessary travel and hotel
reservatIons, if and only if such travel is pre-approved in writing by
LifeShirt.com and LifeShirt.com shall pay or reimburse NIMS for automobile
rental, hotel/motel rooms, air travel (tourist class domestically and business
class for overseas travel) and all other related expenses for any travel beyond
200 miles that NIMS must undertake in discharging its obligations under this
Agreement. LifeShirt.com shall furnish at its facility, for NIMS's use in
conjunction with the services performed pursuant to this Agreement, office
space, telephone, fax, postage, online and other communications equipment. At
the beginning of the term of this Agreement and, thereafter, from time-to-time
(including, without limitation, in the event of any unforeseen changes in need
for such resources). NIMS will advise LifeShirt.com on a "best efforts" basis in
writing of the equipment, materials, software, personnel and any other resources
necessary to discharge its obligations under this Agreement in accordance with
the design specifications set forth in the Statement of Work and LifeShirt.com
will either purchase the materials directly or reimburse NIMS for such
expenditures, so long as all such purchases are pre-approved in writing by
LifeShirt.com, with such approval not to be unreasonably withheld. All costs
shall be reimbursed to NIMS within thirty (30) days from invoicing.

5. 510(k), LifeShirt.com agrees to advance (in the form of direct payment to
said parties) all costs of any third party consultants (pre-approved by
LifeShirt.com in writing whose approval will not be unreasonably withheld),
required for providing templates and review of the 510(k) Submission
documentation which is prepared by NIMS under Good Manufacturing Practice
("GMP") and ISO 9001 guidelines and assisting with any related submission
policies and procedures (the "Submission Advances"). Any such Submission
Advances advanced by LifeShirt.com will be recouped by LifeShirt.com in the form
of a deduction from any royalty payments to be made by LifeShirt.com to NIMS
pursuant to the License Agreement (the "Submission Recoupment"). However, under
no circumstances shall the Submission Recoupment exceed ten percent (10%) of the
total NIMS Royalties payable by LifeShirt.com to NIMS for any annual period per
the License Agreement. Any Submission Recoupment remaining unpaid during such
annual period shall be carried forward to the next annual period up to a maximum
of ten percent (10%) and for each subsequent annual period until paid in full.

6. Equipment and Data. LifeShirt.com will furnish to NIMS, without cost to NIMS,
use of equipment and data owned by LifeShirt.com that LifeShirt.com deems
reasonably necessary for NIMS performance of services under this Agreement. Upon
completion of the services or expiration of this Agreement, NIMS shall return to
LifeShirt.com all such equipment and written material furnished by
LifeShirt.com.

                                    Page 23
<PAGE>

7. Technical Notebook. NIMS shall transmit information to LifeShirt.com to
encompass and maintain a notebook at LifeShirt.com's principal place of business
which shall contain notes, ideas, outlines and summaries of activities performed
on behalf of LifeShirt.com; and this notebook shall be the exclusive property of
LifeShirt.com. LifeShirt.com agrees and acknowledges that the information
contained in the notebook is also the property of NIMS and is only to be used
for purposes of accomplishing the terms and conditions of the Licensing
Agreement. Failure to maintain this notebook shall be considered a material
breach of this Agreement.

8. Reports. NIMS agrees to prepare a written progress report on a monthly basis,
to be provided to the parties designated on Section 1 herein on or about the
first of each month during the term of this Agreement.

9. Confidentiality. LifeShirt.com and NIMS mutually covenant to maintain in
confidence any inventions, confidential or proprietary information or trade
secrets which are disclosed to the other in the course of discharging each
party's obligations under this Agreement. Unless otherwise stated in writing,
all inventions and information transferred to the other party shall be deemed to
be proprietary, confidential and a trade secret and both LifeShirt.com and NIMS
agree to take all reasonable precautions to prevent any unauthorized disclosure
of any such inventions and information and not to make use of such inventions
and information, except for the purposes of this Agreement and the License
Agreement.

10. Term. This Agreement shall become effective on execution and shall continue
in effect until the end of the R&D Period (the "Term"). This Agreement
automatically renews on a month-to-month basis, under the same terms and
conditions, including the monthly payment under Section 2(ii) herein, unless and
until terminated by written notice given by either party at least thirty (30)
days prior to the end of the Term or any monthly period, if extended,
thereafter.

11. Assignment NIMS's obligations, rights and benefits under this Agreement are
personal to it and therefore (i) no such obligation, right or benefit shall be
subject to voluntary or involuntary alienation, assignment or transfer; and (ii)
NIMS may not delegate its duties or obligations hereunder. LifeShirt.com may
assign this Agreement in the event of any merger, reorganization or
consolidation or upon the sale or transfer of all or substantially all of its
assets.

12. Notices. Unless otherwise specifically provided in this Agreement, all
notices or other communications (collectively and severally called "Notices")
required or permitted to be given under this Agreement, shall be in writing, and
shall be given by: (A) personal delivery (which form of Notice shall be deemed
to have been given upon delivery), (B) by telegraph or by private
airborne/overnight delivery service (which forms of Notice shall be deemed to
have been given upon confirmed delivery by the delivery agency), or (C) by
electronic or facsimile or telephonic transmission, provided the receiving party
has a compatible device or confirms receipt thereof (which forms of Notice shall
be deemed delivered upon confirmed transmission or confirmation of receipt).
Notices shall be addressed to the address set forth in the introductory section
of this Agreement, or to such other address, as the receiving party shall have
specified most recently by like Notice, with a copy to the other party.

                                    Page 24
<PAGE>

13. Choice of Law. This Agreement shall be governed according to the laws of the
state of California.

14. Entire Agreement. This Agreement supersedes any and all other agreements,
either oral or in writing, between the parties hereto with respect to the
services to be rendered by NIMS to Company and contains all of the covenants and
agreements between the parties with respect to the services to be rendered by
NIMS to Company in any manner whatsoever. Each party to this agreement
acknowledges that no representations, inducements, promises, or agreements,
orally or otherwise, have been made by any party, or anyone acting on behalf of
any party, which are not embodied herein, and that no other agreement,
statement, or promise not contained in this Agreement shall be valid or binding
on either party.

15. Amendments. Any amendment or modification of any provision of this Agreement
must be in writing, dated and signed by each party hereto.

16.      Arbitration.
         ------------

         (a) The parties hereby agree that all controversies) claims and matters
of difference shall be resolved by binding arbitration before the American
Arbitration Association (the "AAA") according to the rules and practices of the
AAA from time-to-time in force: provided however that the parties hereto reserve
their rights to seek and obtain injunctive or other equitable relief from a
court of competent jurisdiction, without waiving the right to compel such
arbitration pursuant to this section.

         (b) Notwithstanding anything contained in sub-section (a) above to the
contrary, each party shall have the right to institute judicial proceedings
against the other party or anyone acting by, through or under such other party
in order to enforce the instituting party's rights hereunder through reformation
of contract, specific performance, injunction or similar equitable relief.

17. Severability. If any term or provision of this Agreement or the application
thereof to any person or circumstance shall, to any extent, be determined to be
invalid, illegal or unenforceable under present or future laws effective during
the term of this Agreement, then and, in that event: (A) the performance of the
offending term or provision (but only to the extent its application is invalid,
illegal or unenforceable) shall be excused as if it had never been incorporated
into this Agreement, and, in lieu of such excused provision, there shall be
added a provision as similar in terms and amount to such excused provision as
may be possible and be legal, valid and enforceable, and (B) the remaining part
of this Agreement (including the application of the offending term or provision
to persons or circumstances other than those as to which it is held invalid,
illegal or unenforceable) shall not be affected thereby and shall continue in
full force and effect to the fullest extent provided by law.

18. Preparation of Agreement, it is acknowledged by each party that such party
either had separate and independent advice of counsel or the opportunity to
avail itself or himself of same. In light of these facts it is acknowledged that
no party shall be construed to be solely responsible for the drafting hereof,
and therefore any ambiguity shall not be construed against any party as the
alleged draftsman of this Agreement.

                                    Page 25
<PAGE>

19. Waiver. A waiver of any breach of any provision of this Agreement shall not
be construed as a continuing waiver of other breaches of the same or other
provisions of this Agreement.

20. Cross-Breach. The parties acknowledge and agree that a material breach of
the License Agreement shall be deemed a breach of this Agreement.

21. Counterparts. This Agreement may be executed manually or by facsimile
signature in two or more counterparts, each of which shall be deemed an
original, and all of which together shall constitute but one and the same
instrument.

              WHEREFORE, the parties have executed this Agreement on the date
first written above.

"NIMS"                                          "LifeShirt.com"

Non-Invasive Monitoring Systems, Inc.           LifeShirt.com, Inc.

By: /s/ Marvin A. Sackner                       By: /s/ [ILLEGIBLE]
   -----------------------                          -------------------
Its: CEO                                        Its: Chief Operating Officer
    --------------                                   ------------------------

                                    Page 26
<PAGE>

                                  Appendix "A"

                                Statement of Work

                  Non-Invasive Monitoring Systems, Inc. (NIMS)

                       Development for LifeShirt.com, Inc.

NIMS shall complete the following engineering and software development tasks
within a six month time period: Development of miniature version of Respitrace
Plus Processor or equivalent of three Repitrace 200 units and Respitrace PT,
including; design work on existing boards preparatory to the miniaturization
process, consultation on selection of miniaturization vendor, supervision and
consultation of miniaturization process, consultation, supervision, and testing
of the miniaturization processor, consultation on selection of processor
manufacturer, supervision of manufacturer prior to commercial production, and
supervision of testing commercial product to be sure that it meets
specifications.

     1.   Development of a LifeShirt System Jersey, including: development o
          prototype LifeShirt System jersey (the "LifeShirt System Jersey")
          attendance at locus groups whose expenses and selection are
          LifeShirt.com's responsibility, for feedback as to the acceptability
          of the patient-LifeShirt System interface, redesign based on consumer
          testing, possible second round of consumer tests, consultation on
          selection of manufacturer, supervision and consultation of a
          production model garment, testing of commercial production units to be
          sure that products meet specifications.

     2.   PalmPilot HandSpring,Windows CE, or other PDA or digital recorder
          hardware and software development including; selection of most cost
          effective off-the-shelf device, development of software to accept
          input of trend and waveform data from LifeShirt System Jersey, module
          connected to HandSpring PDA processor, development of customer
          interface to input symptoms and record these symptoms against a
          timeline to compare with physical signs, testing and debugging of
          software. Software completion within the six-month time period of the
          R&D agreement will be made at NIMS best efforts but cannot be
          guaranteed owing to the limited availability of two programmers and
          inexperience in translating RespiEvents software into PalmPilot
          operating system.

     3.   RespiEvents software modifications for LifeShirt System monitoring
          including: development of RespiEvents version to run at data hub with
          multiple simultaneous technicians and physicians sharing data,
          development of reporting formats that can be; emailed, faxed, posted
          to a web page. Consultation with LifeShirt.com hub personnel to
          integrate software such that RespiEvents can be integrated seamlessly
          with data hub customer tracking software for billing and security
          verification among many other functions.

     4.   Cooperate and consult with LifeShirt.com in their development of the
          Internet portal for receiving LifeShirt System data.

     5.   Verification and validation of hardware and software suitable for
          510(k) FDA submission including preparation of documentation and
          supervision of prepuration of FDA submission, working in collaboration
          with outside FDA consultants to expedite the approval of: LifeShirt
          System Jersey, module connected to HandSpring PDA processor and
          RespiEvents as needed depending on decision to be made by LifeShirt
          management with NIMS consultation of whether to file or send letter to
          file on specific products, also

                                    Page 27
<PAGE>

          supervise electrical safety testing of LifeShirt System and any other
          testing that is required for regulatory approval.

     6.   General consultation on the development of marketing strategy and
          marketing plans for the LifeShirt System including review of draft
          marketing and advertising materials to be sure that any claims made
          are accurate and are not misrepresenting product capabilities.

                                    Page 28

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