Document:

EXHIBIT 10.6

                     CALTECH / OMNICORDER TECHNOLOGIES, INC.

                                LICENSE AGREEMENT

         This License Agreement is effective as of the 11th day of May, 1998
(the "Effective Date"), between California Institute of Technology, 1200 East
California Boulevard, Pasadena, CA 91125 ("Caltech") and OmniCorder
Technologies, Inc. ("OCT"), a Delaware Corporation, having a principal place of
business at 541 South Ocean Ave., Patchogue, NY 11772 ("Licensee").

         WHEREAS, Caltech, through its Jet Propulsion Laboratory (JPL), has been
engaged in research on Quantum-Well Infrared Photodetector Devices, that was
conducted for the United States Government under Contract NAS7-1 260 between
Caltech and the U.S. National Aeronautics and Space Administration (NASA): and

         WHEREAS, Caltech warrants that it controls and is the sole owner by
assignment of the inventions and software listed in Exhibit A attached hereto
(the "Inventions") and related patent rights, subject to certain rights of the
United States Government; and

         WHEREAS, Licensee is a start-up company engaged in manufacture and sale
of products and services in the Field; and

         WHEREAS, Licensee is desirous of obtaining, and Caltech wishes to grant
to Licensee, an exclusive license within the Field to Licensed Patent Rights and
a nonexclusive license to the Technology as defined in Paragraphs 1.4 and 1.5 of
this License Agreement.

         NOW, THEREFORE, the parties agree as follows:
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ARTICLE 1. DEFINITIONS

         1.1 "Licensed Products" means any product, device or system which is
covered by, or is made by a process covered by, any valid claim of any Licensed
Patent Rights, or which utilizes the Technology.

         1.2 "Licensed Services" means the provision of diagnostic or screening
services utilizing the Licensed Products or which utilizes the Technology.

         1.3 "Deductible Expenses" means the following items of expense incurred
in connection with sales of Licensed Products to the extent paid or allowed by
Licensee or a Related Company and included in accordance with recognized
principles of accounting in the gross sales price billed: (a) sales, use or
turnover taxes; (b) excise taxes, custom duties or consular fees; (c)
transportation, freight, and handling charges, and insurance on shipments to
customers; (d) trade, cash or quantity discounts or rebates to the extent
actually granted; (e) agent fees or commissions; (f) rebates, refunds, and
credits for any rejected or returned Licensed Products or because of retroactive
price reductions, rebates or chargebacks; and (g) uncollected accounts
receivable attributable to sales of Licensed Products.

         1.4 "Related Company" means any corporation, limited liability company
or other legal entity directly or indirectly controlled by, or controlling, or
under common control with Licensee or its successors or assigns, or any
successor or assign of such an entity.

         1.5 "Licensed Patent Rights" means worldwide rights to the inventions
described and claimed in the patents, patent applications and invention
disclosures listed in Exhibit A attached hereto; any patents which issue on the
applications or disclosures listed in Exhibit A; reissues; reexaminations,
renewals, extensions, divisionals, continuations, and continuations-in-part of
the

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foregoing; and any foreign counterparts and any other forms of protection
directed to the inventions covered by the patents, applications and invention
disclosures listed in Exhibit A.

         1.6 "Technology" means all documented proprietary information, to
include procedures and techniques (know-how), methods, prototypes, samples,
designs, technical data, drawings and reports owned by Caltech / JPL that may be
useful- in the efficient and effective development of Licensed Products and
Licensed Services and which directly relate to the Licensed Patent Rights, but
which are not the subject of the Licensed Patent Rights and which are readily
available from the laboratory of Dr. Sarath D. Gunapala at JPL and provided in a
mutually agreeable form during the period of prosecution of Licensed Patent
Rights. Inventions which are the subject of applications for patents listed in
Exhibit A and which do not issue into patents or Licensed Products which do not
infringe a Valid Claim of Licensed Patent Rights shall be considered to be
Technology.

         1.7 "Field" means detection of passively emitted infrared flux or
induced fluorescence from tissue, organs or organ systems for the generation of
images of temperature, emissivity, fluorescence or the modulation of regional
temperature for commercial medical and veterinary diagnostic applications,
including related commercial devices for research, clinical trials and forensic
applications.

         1.8 "Net Revenues" means the aggregate amount received by Licensee and
Related Companies from the sale to unrelated third parties of Licensed Products
or Licensed Services, less Deductible Expenses.

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         1.9 "Combination Product" means any Licensed Product or Licensed
Services sold in combination with a second discrete product containing one or
more active ingredients or components -Which are not Licensed Products or
Licensed Services.

         1.10 "Valid Claim" means the claims of issued patents and patent
applications within the Licensed Patent Rights.

         1.11 "Sublicensing" means a grant of permission by Licensee to any
third party or entity (not a Related Company) to exploit Licensed Patent Rights
or Technology for applications for which Licensee, is not directly engaged in
offering Licensed Products or Licensed Services.

ARTICLE 2. PATENT LICENSE GRANT

         2.1      Caltech hereby grants to Licensee:

                  (a) a worldwide, exclusive royalty-bearing license within the
         Field under Licensed Patent Rights to make, have made, import, have
         imported, sublicense, have sublicensed, use, have used, sell, and have
         sold Licensed Products and Licensed Services; and

                  (b) a worldwide, nonexclusive royalty-bearing license to the
         Technology for the development of Licensed Products and Caltech agrees
         that it will not provide any third party rights to Technology that
         would allow such third party to commercially develop Licensed Products
         in a jurisdiction for which licensee is paying royalties under 3.2.b.

This license is subject to:

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                  (a) the reservation of Caltech / JPL's right to make, have
         made, and use Licensed Products for noncommercial educational and
         research purposes, but not for sale or other distribution to third
         parties; and

                  (b) the rights of the U.S. Government under Title 35, United
         States Code, Sections 203-204, including but not limited to the grant
         to the U.S. Government of a nonexclusive, nontransferable, irrevocable,
         paid-up license to practice or have practiced any invention conceived
         or first actually reduced to practice in the performance of work for or
         on behalf of the U.S. Government throughout the world.

This license is not transferable by Licensee except as provided in Paragraph
14.4, but Licensee shall have the right to grant nonexclusive or exclusive
Sublicenses hereunder, provided that:

                  (a) Licensee shall include all its Sublicensing income in
         Licensee's reports to Caltech, as provided in Paragraph 7.2, and
         Licensee shall pay royalties thereon to Caltech pursuant to Paragraph
         3.1; and

                  (b) Licensee shall furnish Caltech within thirty (30) days of
         the execution thereof, a true and complete copy of each Sublicense and
         any changes or additions thereto.

         2.2 The grant of Licensed Patent Rights shall continue, unless sooner
terminated in accordance with the provisions of this Agreement, until the last
of the patents of the Licensed Patent Rights expires. After the last of the
patents of the Licensed Patent Rights expires. Licensee shall retain a paidup
royalty-free nonexclusive license to the Technology.

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ARTICLE 3. ROYALTIES

         3.1 In countries where manufacture, sale, or use of Licensed Products
or the conduct of services is covered by a patent or patent application and
Licensed Products or Licensed Services are manufactured and sold by or for
Licensee or a Related Company, Licensee shall pay Caltech a royalty of:

                  (a) three percent (3%) of Net Revenues from the sale of
         Licensed Products or Licensed Services by Licensee or Related Company,
         but this shall not apply to revenues derived from Sublicenses; and

                  (b) twenty percent (20%) of the royalties or other revenues
         Licensee or Related Company receives from Sublicenses other, than from
         Related Companies for the sale of Licensed Products or Licensed
         Services. Such royalties or other revenues specifically shall not
         include (a) payments made by a Sublicensee in consideration of equity
         or debt securities of Licensee; (b) payments made by a Sublicensee to
         support research activities to be undertaken by Licensee; (c) payments
         made upon the achievement by Licensee and Related Company of specified
         milestones or benchmarks relating to the development of Licensed
         Products; (d) pilot studies; (e) performance-based milestones; (f) the
         license or Sublicense of any intellectual property other than
         Technology; (g) reimbursement for patent or other expenses, or (h) `the
         exclusive or nonexclusive regional license from Licensee to health care
         providers for the application of clinical screening and/or diagnosis,
         utilizing Licensee's proprietary technology alone or in combination
         with a Licensed Product or Licensed Service.

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         3.2 In countries where manufacture, sale, or use of Licensed Products
or Licensed Services is not covered by a patent or patent application but the
Licensed Patent Rights or Technology is utilized and Licensed Products are
manufactured and sold by or for Licensee or a Related Company prior to
expiration of any directly related patent, Licensee shall pay Caltech:

                  (a) one and one-half percent (1.5%) of Net Revenues from the
         sale of Licensed Products or Licensed Services by Licensee or Related
         Company, but this shall not apply to revenues derived from Sublicenses;
         and

                  (b) ten percent (10%) of the royalties or other revenues
         Licensee or Related Company received from Sublicensees other than
         related companies for the sale of Licensed Products or Licensed
         Services. Such royalties or other revenues specifically shall not
         include (a) payments made by a Sublicensee in consideration of equity
         or debt securities of Licensee; (b) payments made by a Sublicensee to
         support research activities to be undertaken by Licensee or Related
         Company; (c) payments made upon the achievement by Licensee or Related
         Company of specified milestones or benchmarks relating to the
         development of Licensed Products; (d) pilot studies; (e)
         performance-based milestones; (f) the license or Sublicense of any
         intellectual property other than Licensed Patent Rights or Technology;
         (g) reimbursement for patent or other expenses, or (h) the exclusive or
         nonexclusive regional license from Licensee to health care providers
         for the application of clinical screening and/or diagnosis, utilizing
         Licensee's proprietary technology alone or in combination with Licensed
         Products or Licensed Services.

         3.3 In the event that products are sold in the form of Combination
Products containing one or more active ingredients or components, other than
Licensed Products. Net

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Revenues for such Combination Products will be calculated on a worldwide basis
by multiplying actual net sales of such combination products by the fraction
A/(A+B) where A is the average invoice price during the period of the Licensed
Product when sold separately. and B is the average invoice price of-any other
active component or components in the combination when sold separately by
Licensee, a Related Company, or a Sublicensee. If the active component(s) in the
combination that are not Licensed Products are not sold separately by Licensee,
a Related Company, or a Sublicensee, Net Sales shall be calculated by
multiplying actual net sales of such Combination Products by the fraction A/C
where A is the average invoice price of the Licensed Product when sold
separately and C is the average invoice price of the combination product. If
neither the Licensed Product nor the Combination Product is sold separately by
Licensee, a Related Company, or a Sublicensee, Net Revenues shall be calculated
as above except that A shall be the total manufacturing cost of Licensed Product
and C shall be the total manufacturing cost of the combination.

         3.4 If, in any one year period commencing on an anniversary date of
this Agreement after January 31, 1999, Licensee does not pay a minimum of
$10,000.00 in royalties under Paragraphs 3.1 and 3.2, or pay any higher amounts
due thereunder, Caltech shall have the right to terminate this Agreement under
Article 10.1.

         3.5 If Licensee or a Related Company is required to make any payment
(including, but not limited to, royalties or other license fees) to one or more
third parties to obtain a license or similar right in the absence of which it
could not legally make, import, use or sell Licensed Products or Licensed
Services in any country, and Licensee provides Caltech with reasonably
satisfactory evidence for such requirement, such third-party payments shall be
fully creditable against royalties owed to Caltech hereunder, provided that in
no one year shall such expenses be

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credited against more than twenty-five percent (25%) of royalty payments to
Caltech. Any excess such expenses for any one year may be carried over and
creditable against royalties owed in future years.

         3.6 Notwithstanding the provisions of this Article 3, no royalty shall
be payable to Caltech with respect to any sales of Licensed Products or Licensed
Services to the United States Government, or sales made solely to permit the
United States Government to practice or have practiced or use on its behalf any
invention or process covered by Licensed Patent Rights.

         3.7 For the purpose of determining royalties payable under this
Agreement, any royalties or other revenues Licensee receives from Sublicensees
in currencies other than U.S. dollars and any Net Revenues denominated in
currencies other than U.S. dollars shall be converted into U.S. dollars
according to Licensee's reasonable standard internal conversion procedures,
including Licensee's standard internal rates and conversion schedule.

         3.8 Any Sublicenses granted by Licensee under the Licensed Patent
Rights shall remain in effect and be assigned to Caltech in the event this
license terminates pursuant to Article 9. Caltech shall assume all the rights
and obligations of Licensee.

ARTICLE 4. LICENSEE EQUITY INTEREST

         4.1 Licensee agrees to issue to CALTECH, in consideration of Licensee's
receipt of the intangible property rights granted under this Agreement, an
equity interest in Licensee, or a Related Company that will develop and sell
Licensed Products or Licensed Services, equal to four percent (4%) of the total
equity interest issued upon the initial organization of such company (prior to
any investment by a third party), provided further that said equity interest
shall only vest to Caltech as to the following schedule: 50% within 30 days of
Effective Date; 25%

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within one year of Effective Date; 25% within two years of Effective Date If
Licensee terminates this Agreement prior to the vesting of any installment as
specified above, Caltech shall not be entitled to such interest.

         4.2 Caltech agrees that, in the event of any underwritten or public
offering of securities of Licensee or a related company, Caltech shall comply
with and agree to any reasonable restriction on the transfer of equity interest,
or any part thereof, imposed by an underwriter, and shall perform all acts and
sign all necessary documents required with respect thereto. The provisions of
this Paragraph 4.2 shall survive termination of this Agreement.

ARTICLE 5. DUE DILIGENCE

         5.1 Licensee shall have discretion over the commercialization of
Licensed Products and Licensed Services. However, Licensee agrees to use all
reasonable commercial efforts to introduce commercial Licensed Product(s) and
Licensed Services in the United States as soon as practical, consistent with
sound and reasonable business practices and judgments. Licensee shall be deemed
to have satisfied its obligations under this Paragraph if Licensee has an
ongoing and active research program or marketing program, as appropriate,
directed toward production and use of Licensed Products or Licensed Services for
applications in the Field. If Licensee markets products or services utilizing
infrared detection technology other than that covered by Licensed Products for
any application in the Field, then this License shall be reduced to nonexclusive
for such specific application under Paragraph 5.3 of this Agreement. Licensee
agrees to make a good faith effort to Sublicense for any application in the
Field not being commercialized by it. Any such efforts of Licensee's
Sublicensees shall be considered efforts of Licensee for the sole purpose of
determining Licensee's compliance with its obligation under this Paragraph.

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         5.2 After the first year from the Effective Date, Caltech shall have
the right, no more often than twice each year, to require Licensee to report to
Caltech in writing on its progress in introducing commercial Licensed Products
and Licensed Services in the United States and foreign jurisdictions in which
Licensee has rights to licensed Patents or Technology.

         5.3 If Licensee is not fulfilling its obligations under Paragraph 5.1
with respect to all or any part of Licensed Products and Caltech so notifies
Licensee in writing, and Caltech introduces to Licensee a third party which it
requests Licensee to Sublicense a specific application for development, then
Caltech and Licensee shall negotiate in good faith as to whether a commercially
reasonable Sublicense can be negotiated with such third party. If the parties do
not reach agreement within ninety (90) days, any additional efforts shall be
determined in accordance with Article 12. If Licensee then fails to make any
required efforts, and does not remedy that failure within sixty (60) days after
further written notice to Licensee, Caltech may convert the license granted in
Paragraph 2.1 to a nonexclusive license as to the specific application as to
which Licensee is, pursuant to Article 12, not deemed to be in compliance with
Para. 5.1, and the royalties payable under this Agreement shall be reduced by
fifty percent (50%) for Licensed Products sold under such a nonexclusive
license.

ARTICLE 6. INFRINGEMENT BY THIRD PARTY

         6.1 Caltech shall protect the Licensed Patent Rights from infringement
and prosecute infringers when, in its sole reasonable judgment, such action may
be reasonably necessary, proper and justified. Notwithstanding the foregoing,
Licensee shall have the right to Sublicense any alleged infringer pursuant to
Paragraph 2.1.

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         6.2 If Licensee shall have supplied Caltech with evidence of
infringement of Licensed Patent Rights by a third party, Licensee may by notice
request Caltech to take steps to enforce the Licensed Patent Rights. If Licensee
does so, and Caltech does not, within fifteen (15) days of the receipt of such
notice, either (a) cause the infringement to terminate or (b) initiate a legal
action against the infringer, Licensee may, upon notice to Caltech, initiate an
action against the infringer at Licensee's expense, either in Licensee's name or
in Caltech's name if so required by law.

         6.3 If a declaratory judgment action alleging invalidity,
unenforceability or infringement of any of the Licensed Patent Rights is brought
against Licensee and/or Caltech, Caltech shall defend same in accordance with
Section 6.1. Licensee shall have sole control of the action if Licensee agrees
to bear all the costs of the action subject to Article 6.8.

         6.4 In the event one party shall carry on a legal action pursuant to
Paragraphs 6.1, 6.2 or 6.3, the other party shall fully cooperate with and
supply all assistance reasonably requested by the party carrying on such action,
including by using its best efforts to have its employees testify when requested
and to make available relevant records, papers, information, samples, specimens,
and the like. A party controlling an action pursuant to Paragraphs 6.2 or 6.3
shall bear the reasonable expenses incurred by said other party in providing
such assistance and cooperation as is requested pursuant to this Paragraph. A
party carrying on such an action shall keep the other party informed of the
progress of such action, and said other party shall be entitled to be
represented by counsel in connection with such action at its own expense. To the
extent not reimbursed by Caltech, Licensee's reasonable and customary expenses
for such action (including attorneys' fees) shall be fully creditable against
royalties owed to Caltech hereunder, provided that in no one year shall such
expenses be credited against more than fifty percent (50%) of

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royalty payments to Caltech. Any express such expenses may be carried over and
credited against royalties owed in future years.

         6.5 The party controlling any action referred to in this Article 6
shall have the right to settle any claims, but only upon terms and conditions
that are reasonably acceptable to the other party. Should either party elect to
abandon such an action other than pursuant to a settlement with the alleged
infringer that is reasonably acceptable to the other party, the party
controlling the action shall give timely notice to the other party who, if it so
desires. may continue the action; provided, however, that the sharing of
expenses and any recovery in such suit shall. be as agreed upon. between the
parties.

         6.6 Any amounts paid to a party by third-parties as the result of such
an action (such as in satisfaction of a judgment or pursuant to a settlement)
shall first be applied to reimbursement of the unreimbursed expenses (including
attorneys' fees) incurred by either party and then to the payment to Caltech of
any royalties against which were credited expenses of the action in accordance
with Paragraph 6.4. Any remainder shall be divided between the parties as
follows:.

                  (a) To the extent the amount recovered reflects lost profits
         of Licensee, Licensee shall retain the remainder, less the amount of
         any royalties that would have been due Caltech on sales of Licensed
         Product lost by Licensee as a result of the infringement had Licensee
         made such sales, provided that Licensee shall in any event retain at
         least seventy percent (70%) of the remainder; and

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                  (b) Caltech shall receive an amount equal to the royalties it
         would have received if such sales had been made by Licensee, provided
         such amount shall in no event exceed thirty percent (30%) of the
         remainder; or

                  (c) to the extent the amount recovered does not reflect lost
         profits, seventy percent (70%) shall be paid to the party initiating
         the action and thirty percent (30%) to the other party.

         6.7 If an infringement or infringements by third parties of Licensed
Patent Rights is on a scale that significantly affects sates of Licensed
Products, and neither Caltech nor Licensee elect to bring an infringement suit
against the infringers, the royalties hereunder payable by Licensee pursuant to
Article III shall be reduced by twenty-five percent (25%) of the sums otherwise
payable if Licensee presents information to Caltech that such infringer has
refused to enter into a royalty-bearing, Sublicensing agreement with Licensee on
terms reasonably acceptable to Licensee.

         6.8 The allowed reductions set forth in Paragraphs 6.4 and 6.7 shall
not exceed, in the aggregate, twenty-five percent (25%) of the sums otherwise
payable during any year. Any excess such expenses for any year may be carried
over and creditable against royalties owed in future years.

ARTICLE 7. BENEFITS OF LITIGATION, EXPIRATION OR ABANDONMENT

         7.1 General. In a case where one or more patents or particular claims
thereof within the Licensed Patent Rights expire, or are abandoned, or are
declared invalid or unenforceable or otherwise construed by a court of last
resort or by a lower court from whose decree no appeal is

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taken, or certiorari is not granted within the period allowed therefor, then the
effect thereof hereunder shall be:

                  (a) that such patents or particular claims shall, as of the
         date of expiration or abandonment or final decision as the case may be,
         cease to be included within the Licensed Patent Rights for the purpose
         of this Agreement; and

                  (b) that such construction so placed upon the Licensed Patent
         Rights by the court shall be followed from and after the date of entry
         of the decision, and royalties shall thereafter be payable by Licensee
         only in accordance with such construction; and

                  (c) in the event that Licensee challenges the validity of
         Licensed Patent Rights, Licensee may not cease paying royalties as of
         the date validity of the claims in issue are challenged, but rather may
         cease paying royalties as to those claims only after a final
         adjudication of invalidity of those claims.

         7.2 Adjustment. In the event that any of the contingencies provided for
in Paragraph 7.1 occurs, Caltech agrees to renegotiate in good faith with
Licensee a reasonable royalty rate under the remaining Licensed Patent Rights
which are unexpired and in effect and under which Licensee desires to retain a
License.

ARTICLE 8. RECORDS, REPORTS AND PAYMENTS

         8.1 Licensee shall keep records and books of account in respect of all
Licensed Products and conduct of services made and sold by Licensee or Related
Companies under this Agreement and of royalties or other revenues Licensee
receives from Sublicensees other than Related Companies for the sale of Licensed
Products and Licensed Services. Caltech shall have

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the right, during business hours, no more often than annually, to examine, or to
have its designated auditors examine, such records and books provided Caltech
gives Licensee five (5) business days notice. Licensee shall keep the same for
at least three (3) years after it pays Caltech the royalties due for such
Licensed Products and require Related Companies to do the same. Caltech shall
not disclose to any third party any confidential information learned through an
examination of such records and books, nor shall Caltech use any such
information for any purpose other than determining and enforcing its rights
under this Agreement.

         8.2 On or before the last day of each February and August for so tong
as royalties are payable under this Agreement, Licensee shall render to Caltech
a report in writing, setting forth the number of units of Licensed Products
manufactured and the number of units sold or services delivered during the
preceding semiannual period by Licensee and Related Companies, and the royalties
or other revenues Licensee received from Sublicensees other than Related
Companies during the preceding semiannual period for the sale of Licensed
Products. Each such report shall also set forth an explanation of the
calculation of the royalties payable hereunder and be accompanied by payment of
the royalties shown by said report to be due Caltech. Notwithstanding foregoing,
if (a) Caltech materially breaches this Agreement, and (b) Licensee gives
Caltech written notice of the breach, and (C) Caltech has not cured the breach
by the time a payment is due under this Paragraph, then Licensee may make the
required payment into an interest bearing escrow account to be released when the
breach is cured, less any damages that may be payable to Licensee by virtue of
Caltech's breach.

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ARTICLE 9. PAYMENT OF PATENT COSTS

         9.1 Licensee shall, in connection with the preparation, filing, and
prosecution, issuance and maintenance of the Licensed Patent Rights in the
United States:

                  (a) pay fifty percent (50%) of all attorney fees accrued both
         prior to and subsequent to the Effective Date for services performed to
         obtain the issuance of the Licensed Patent Rights, and all patent and
         government fees for services performed after the issuance of Licensed
         Patent Rights; and

                  (b) pay fifty percent (50%) of all Patent Office maintenance
         fees.

         9.2 Licensee shall, in connection with the preparation, filing,
prosecution, issuance and maintenance of the Licensed Patent Rights in foreign
jurisdictions where Licensee has requested in writing that Caltech apply for,
prosecute or maintain any Licensed Patent Rights:

                  (a) pay one hundred percent (100%) of all attorney fees
         accrued both prior to and subsequent to the Effective Date for services
         performed to obtain the issuance of the Licensed Patent Rights, and all
         patent and government fees for services performed after the issuance of
         Licensed Patent Rights; and

                  (b) reimburses 100% .of all Patent. Office maintenance fees;

provided that Licensee shall not be required to reimburse such amounts to the
extent that Caltech has the right to seek reimbursement of such amounts from any
other licensee of the Licensed Patent Rights; and further provided that for each
foreign jurisdiction for which Licensee reimburses any amounts under this
Paragraph 9.2, Licensee shall receive a credit equal to the full

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amount of such reimbursement toward any amounts payable under Article 3 for the
sale of Licensed Products or Licensed Services in that jurisdiction.

         9.3 Payment shall be made to Caltech within thirty (30) days following
receipt by Licensee from Caltech of (a) an invoice covering such fees and (b)
reasonably satisfactory evidence that such fees were paid. 1o the extent that
Licensee terminates this Agreement pursuant to Paragraph 10.2, Licensee shall
have no further liability under Paragraph 9.1 for fees relating to applications
or patents affected by the termination.

         9.4 Caltech shall have the right to apply for, prosecute and maintain
during the term of this Agreement the Licensed Patent Rights and other rights
conferred pursuant to Paragraph 2.1 of this Agreement. The application filings,
prosecution, maintenance and payment of all fees and expenses, including legal
fees, relating to such Licensed Patent Rights shall be the responsibility of
Caltech, provided that Licensee shall reimburse Caltech for all reasonable fees
and expenses, including reasonable legal fees, incurred in such application
filings, prosecution and maintenance under Paragraphs 9.1 and 9.2 of this
Agreement. Patent attorneys chosen by Caltech shall handle all patent filings
and prosecutions on behalf of Caltech, provided, however, Licensee shall be
entitled to review and comment upon and approve alt actions undertaken in the
prosecution of all patents and applications. If Caltech elects not to continue
the prosecution of any of the Licensed Patent Rights, it shall so inform
Licensee who shall have the right to continue such prosecution at its own
expense. Caltech shall cooperate with Licensee and grant the necessary parties
of appointment to enable Licensee to continue such prosecution.

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ARTICLE 10. TERMINATION

         10.1 Caltech shall have the right to terminate this Agreement if
Licensee fails to make any payment due hereunder and Licensee continues to fail
to make the payment, either to Caltech directly or by placing any disputed
amount into an interest bearing escrow account to be released when the dispute
is resolved, for a period of sixty (60) days after receiving notice from Caltech
specifying Licensee's failure. Upon any such termination, (a) Licensee and
Related Companies shall have six (6) months to complete the manufacture of any
Licensed Products that then are work in progress and to sell their inventory of
Licensed Products, provided Licensee pays the applicable royalties in accordance
with Paragraph 8.2, and (b) Caltech shall accept an assignment by Licensee of
any Sublicenses granted by Licensee to entities other than Related Companies,
and any Sublicense so assigned shall remain in full force and effect.

         10.2 Licensee shall have the right to terminate this Agreement either
in its entirety or as to any jurisdiction or any part of the Licensed Patent
Rights upon sixty (60) days written notice. If Licensee does so, it shall submit
all required reports and make all required payments in accordance with Paragraph
8.2.

         10.3 No termination of this Agreement shall relieve Licensee of the
liability for payment of any royalty due for Licensed Products or Licensed
Services made prior to the effective date of such termination.

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ARTICLE 11. WARRANTIES AND NEGATION OF WARRANTIES, IMPLIED LICENSES AND AGENCY

         11.1 Caltech represents and warrants that it owns all right, title and
interest in and to the Licensed Patent Rights, subject to the license and
march-in rights of the United States Government under Title 35, United States
Code, Sections 203-204.

         11.2 Caltech represents and warrants that it has complied with all of
its obligations under Contract NAS7-1 260, such as those described in Title 35,
United States Code, Section 202, with respect to all of the Licensed Patent
Rights.

         11.3 Caltech represents and warrants that it has not granted any right
or interest in any of the Licensed Patent Rights that is inconsistent with the
rights granted to Licensee herein.

         11.4 Nothing in this Agreement shall be construed as:

                  (a) a representation or warranty of Caltech as to the validity
         or scope of Licensed Patent Rights or any claim thereof; or

                  (b) a representation or warranty that any Licensed Product or
         Licensed Service is or wilt be free from infringement of rights of
         third parties (except to the extent that Paragraph 11.3 constitutes a
         representation and warranty that Licensed Products will not infringe
         rights of third parties in the Licensed Patent Rights); or

                  (c) an obligation to bring or prosecute actions or suits
         against third parties for infringement.

         11.5 Caltech MAKES NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY
OR FITNESS FOR A PARTICULAR PURPOSE, AND ASSUMES

                                       20
<PAGE>

NO RESPONSIBILITIES WHATEVER WITH RESPECT TO THE USE, SALE, OR OTHER DISPOSITION
BY Licensee OF LICENSED PRODUCT(S).

         11.6 Caltech and Licensee are independent parties in this Agreement.
Accordingly, there is no agency relationship between Caltech and Licensee under
this Agreement with respect to any products made or sold, or any methods used,
by Licensee under this Agreement.

ARTICLE 12. ARBITRATION

         12.1 Any controversy or claim arising out of or related to this
Agreement, or the breach thereof, shall be settled by arbitration in Los
Angeles, California, in accordance with the Commercial Arbitration Rules of the
American Arbitration Association, and judgment upon the award rendered by the
arbitrator(s) may be entered in any court having jurisdiction thereof.

ARTICLE 13. PRODUCT LIABILITY

         13.1 Licensee agrees that Caltech shall have no liability to Licensee
or to any purchasers or users of Licensed Products or Licensed Services made,
sold or provided by Licensee for any claims, demands, tosses, costs, or damages
suffered by Licensee, or purchasers or users of Licensed Products and services,
or any other party, which may result from personal injury, death, or property
damage related to the manufacture, use, or sale of such Licensed Products and
services ("Claims"). Licensee agrees to defend, indemnify, and hold harmless
Caltech, its trustees, officers, agents, and employees from any such Claims,
demands, losses, costs or damages.

         13.2 At such time as Licensee begins to sell or distribute Licensed
Products (other than for the purpose of obtaining regulatory approvals) or
conduct services, Licensee shall at its sole

                                       21
<PAGE>

expense, procure and maintain policies of comprehensive general liability
insurance in amounts not less than $2,000,000 per incident and $2,000,000 in
annual aggregate and naming those indemnified under Paragraph 13.1 as additional
insureds. Such comprehensive general liability insurance shall provide (a)
product liability coverage and (b) broad form contractual liability coverage for
Licensee's indemnification under Paragraph 13.1. In the event the aforesaid
product liability coverage does not provide for occurrence liability, Licensee
shall maintain such comprehensive general liability insurance for a reasonable
period of not less than five (5) years after it has ceased commercial
distribution or use of any Licensed Product or the conduct of services.

         13.3 Licensee shall provide Caltech with written evidence of such
insurance upon request of Caltech. Licensee shall provide Caltech with notice at
least fifteen (15) days prior to any cancellation, non-renewal or material
change in such insurance, to the extent Licensee receives advance notice of such
mailers from its insurer. lf Licensee does not obtain replacement insurance
providing comparable coverage within sixty (60) days following the date of such
cancellation, non-renewal or material change. Caltech shall have the right to
terminate this Agreement effective at the end of such sixty (60) day period
without any additional waiting period; provided that if Licensee uses reasonable
efforts but is unable to obtain the required insurance at commercially
reasonable rates, Caltech shall not have the right to terminate this Agreement,
and Caltech instead shall cooperate with Licensee to either grant a waiver of
Licensee's obligations under this Article or assist Licensee in identifying a
carrier to provide such insurance or in developing a program for self-insurance
or other alternative measures. This Article 13 shall survive the expiration or
termination of this Agreement.

                                       22
<PAGE>

ARTICLE 14. MISCELLANEOUS

         14.1 Licensee agrees that it shall not use the name of Caltech, or
California Institute of Technology, JPL or Jet Propulsion Laboratory, in any
advertising or publicity material, or make any form of representation or
statement which would constitute an express or implied endorsement by Caltech of
any Licensed Product, and that it shall not authorize others to do so, without
first having obtained written approval from Caltech.

         14.2 Licensee agrees to mark the appropriate U.S. patent number or
numbers on all Licensed Products made or sold in the United States, and to
require its Sublicensees to do the same.

         14.3 Licensee has the right to disclose that it has an exclusive
License in the Field from Caltech to Licensed Patents (as designated by Caltech
Case Numbers, Patent Titles and Filing Dates for pending patent applications) to
prospective joint venture partners, investors, sublicensees, healthcare provider
companies, and appropriate managers and executives of prospective customers for
Licensed Products and Licensed Services. Licensee agrees to accept all other
information regarding the License Agreement as "Confidential Information" under
the Mutual Confidential Disclosure Agreement of March 5, 1997 and attached to
the License Agreement as Exhibit B.

         14.4 This Agreement and the Mutual Confidential Disclosure Agreement
sets forth the complete agreement of the parties concerning the subject mater
hereof. No claimed oral agreement in respect thereto shall be considered as any
part hereof. No waiver of or change in any of the terms hereof subsequent to the
execution hereof claimed to have been made by any

                                       23
<PAGE>

representative of either party shall have any force or effect unless in writing,
signed by duly authorized representatives of the parties.

         14.5 This Agreement shall be binding upon. and inure to the benefit of
any successor or assignee of Caltech. This Agreement is not assignable by
Licensee without the prior written consent of Caltech, except that without the
prior written consent of Caltech, any Related Company, or any successor of, or
purchaser of a substantial part of the assets of the business to which this
Agreement pertains, may be assigned and receive the benefits of this Agreement.
Any permitted assignee shall succeed to all of the rights and obligations of
Licensee under this Agreement.

         14.6 Licensee agrees that any Licensed Products sold in the United
States by Licensee or its Sublicensees shall be manufactured substantially in
the United States.

         14.7 This Agreement is subject in all respects to the laws and
regulations of the United States of America, including the Export Administration
Act of 1979, as amended, and any regulations thereunder.

         14.8 This Agreement shall be deemed to have been entered into in
California and shall be construed and enforced in accordance with California
law.

         14.9 Any notice or communication required or permitted to be given or
made under this Agreement shall be addressed as follows:

                  Caltech:          Office of Technology Transfer
                                    California Institute of Technology
                                    1200 East California Boulevard (MC 210-85)
                                    Pasadena. California 91125
                                    Facsimile No. (626) 356-2486

                                       24
<PAGE>

                                    Telephone No. (626) 395-3288
                                    E-Mail lgilbert@patents.caltech.edu

                  Licensee:         OmniCorder Technologies, Inc.
                                    Ml South Ocean Avenue
                                    Patchogue, NY 11772
                                    Facsimile No. (516) 444-8825
                                    Telephone No. (516) 444-6499
                                    E-Mail M.Fauci@mindspring.com

Either party may notify the other in writing of a change of address or telephone
numbers, in which event any subsequent communication relative to this Agreement
shall be sent to the last said notified address or number. All notices and
communications relating to this Agreement shall be deemed to have been given
when received. This agreement may be executed in counterparts, each of which
shall constitute an original and together, a single binding instrument.

         IN WITNESS WHEREOF, the parties have caused this Agreement to be

executed:

CALIFORNIA INSTITUTE OF TECHNOLOGY (Caltech)

By:
   --------------------------------------------------------------------
         Name: Lawrence Gilbert
         Title:   Director, Office of Technology Transfer

Date:
     ------------------------------------------------------------------

OMNICORDER TECHNOLOGIES, INC. (Licensee)

By:
    -------------------------------------------------------------------
         Name:
              ---------------------------------------------------------
         Title:
               --------------------------------------------------------
         Date:
              ---------------------------------------------------------

                                       25

<PAGE>

                       CALIFORNIA INSTITUTE OF TECHNOLOGY
                          OFFICE OF TECHNOLOGY TRANSFER
                1200 EAST CALIFORNIA BOULEVARD, MAIL CODE 210-85
                           PASADENA, CALIFORNIA 91125
             Voice! message (626) 395-3058, Facsimile (626) 356-2486
                          E-mail Jim.Smart@CaItech.edu

Mr. Mark A. Fauci                               Wednesday, May 20, 1998
President and CEO
OmniCorder Technologies, Inc.                   [VIA FACSIMILE TO 516-444-8825]
25 East Loop Road
Stony Brook, NY 11790

Subject: Caltech / OmniCorder Option Agreement and License Agreement

Dear Mark,

As we discussed today on your cell phone, this letter will serve to modify the
existing OmniCorder / Caltech Option Agreement of August 27, 1998 (Effective
Date) to extend the Option Period from nine (9) months to ten (10) months from
the Effective Date. This extension will be for no additional consideration and
will allow more time for both of us to review the additional provisional US
patent applications for "QWIP" related JPL technology.

I will update EXHIBIT A of the attached License Agreement after we have a review
by our patent attorney and a decision on which of the pending provisional
applications, if any, will be filed as non-provisional CIP applications to the
parent CIT 2426(08/708,076) application.

You indicated that you would have a revised form of the License Agreement sent
for our review. From our previous discussions and your letter of April 23, 1998,
I expect that we will find your proposed revisions acceptable. If so, we will
return two originals of the updated License Agreement to you so that you may
exercise your option and acquire the license, should you choose to do so.

                                                       Sincerely,

                                                       James G. Smart, Ph.D.

By:                                               Agreed and Acknowledged by:
   ------------------------------------------
         Lawrence Gilbert, Director               ------------------------------
         Office of Technology Transfer            ------------------------------
         California Institute of Technology       OmniCorder Technologies, Inc.

Date:                                           Date:
     ----------------------------------------        ---------------------------

<PAGE>

                       CALIFORNIA INSTITUTE OF TECHNOLOGY
                          OFFICE OF TECHNOLOGY TRANSFER
                1200 EAST CALIFORNIA BOULEVARD. MAIL CODC 210-85
                           PASADENA. CALIFORNIA 91125
                            TELEPHONE: (626) 395-3058
                            FACSIMILE: (626) 358-2486
                          E-MAIL: Jim.Smart@Caltech.Edu

                                                      Friday, December 4, 1998

Mr. Mark Fauci
President and CEO                            [VIA FACSIMILE TO 516-444-8825]
OmniCorder Technologies, Inc.
25 East Loop Road
Stony Brook, NY 11190

Subject: ViaSpace claims concerning QWIP

Dear Mark,

In response to your e-mail of November 4, 1998, this letter is to acknowledge
OmniCorder's rights under the Caltech / OmniCorder Technologies, Inc. License
Agreement. Under this license OmniCorder has exclusive rights to the Caltech /
JPL QWIP technology in the field of use defined as:

         "Field" means detection of passively emitted flux or induced
         fluorescence from tissue, organs or organ systems for the generation of
         images of temperature. emissivity, fluorescence or the modulation of
         regional temperature for commercial medical and veterinary
         applications, including related commercial devices for research,
         clinical trials and forensic applications.

Any statements that have been made that are inconsistent with these rights of
OmniCorder are either misquotes or inaccuracies. Caltech regrets if such
statements may have raised any inappropriate concerns among any potential
investors, strategic partners or customers of OmniCorder. Our Office of
Technology Transfer at Caltech, with your permission, is quite willing to assure
such parties of the rights that OmniCorder has under its license with Caltech.

Sincerely,

James C. Smart, Ph.D.

<PAGE>

                       CALIFORNIA INSTITUTE OF TECHNOLOGY
                          OFFICE OF TECHNOLOGY TRANSFER
                1200 EAST CALIFORNIA BOULEVARD, MAIL CODE 210-85
                           PASADENA, CALIFORNIA 91125
            Voice / message (626) 395-3058. Facsimile (626) 356-2486
                          E-mail: Jim.Smart@Caltech.edu

Mr. Mark Fauci                               Wednesday, May 20, 1998
President and CEO
OmniCorder Technologies, Inc.                [VIA FACSIMILE TO 516-444-8825]
25 East Loop Road
Stony Brook, NY 11190

Subject: Caltech / OmniCorder Option Agreement and License Agreement

Dear Mark,

As we discussed today on your cell phone, this letter will serve to modify the
existing OmniCorder / Caltech Option Agreement of August 27, 1998 (Effective
Date) to extend the Option Period from nine (9) months to ten (10) months from
the Effective Date. This extension will be for no additional consideration and
will allow more time for both of us to review the additional provisional US
patent applications for "QWIP" related JPL technology.

I will update EXHIBIT A of the attached License Agreement after we have a review
by our patent attorney and a decision on which of the pending provisional
applications, if any, will be filed as non-provisional CIP applications to the
parent CIT 2426 (08/708,076) application.

You indicated that you would have a revised form of the License Agreement sent
for our review. From our previous discussions and your letter of April 23, 1998,
I expect that we will find your proposed revisions acceptable. If so, we will
return two originals of the updated License Agreement to you so that you may
exercise your option and acquire the license, should you choose to do so.

                                                       Sincerely,

                                                       James G. Smart, Ph.D.

By:                                               Agreed and Acknowledged by:
   ------------------------------------------
         Lawrence Gilbert, Director               ------------------------------
         Office of Technology Transfer            ------------------------------
         California Institute of Technology       OmniCorder Technologies, Inc.

Date:                                           Date:
     ----------------------------------------        ---------------------------EXHIBIT 10.7

                           EXCLUSIVE LICENSE AGREEMENT

         This Exclusive License Agreement (hereinafter "Agreement") is entered
into by and between Lockheed Martin Corporation a Delaware corporation acting
through its Vought Systems (the "LICENSOR"), having its principal place of
business at P0 Box 650003, Dallas, Texas and OmniCorder Technologies, Inc. (the
"LICENSEE"), a corporation organized under the laws of Delaware and having a
principal place of business at 25 Loop Road, Stony Brook, New York 11790 as of
the 29 day of September 1998 (hereinafter "Effective Date").

                                   WITNESSETH:

         WHEREAS, the LICENSOR is the owner of the Subject Technology as defined
below; and

         WHEREAS, the LICENSOR is willing to grant to the LICENSEE a royalty
bearing, worldwide, exclusive license to practice the Subject Technology in
certain Fields as defined below on the terms, and subject to the conditions, set
forth herein: and

         WHEREAS, LICENSEE desires to obtain said exclusive license to practice
the Subject Technology on said terms and conditions.

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

1. DEFINITIONS AS USED HEREIN

1.1 "Subject Technology" shall mean the technology, know-how, methods,
inventions and confidential information related to LICENSOR's Enhanced Quantum
Well Infrared Photodetectors (EQWIPs) which were designed, developed and
invented by LICENSOR as of the Effective Date. The term Subject Technology shall
include U.S. Patent Number 5,539,206 entitled "Enhanced Quantum Well Infrared
Photodetector" by Thomas A. Schimert issued July 23, 1996, and all inventions
described or claimed therein, together with all patent, or like protection on
said inventions that have or may in the future be granted, whether in the United
States of America or any other country, and all substitutions for and divisions,
continuations, continuations-in-part, renewals, reissues, extensions and the
like on said applications and patents. The term Subject Technology shall also
include any improvement technology, know-how, methods, inventions, patent
applications, patents and maskworks made or obtained by LICENSOR in connection
with the EQWIPs, their materials or structure, LICENSOR's ongoing Advanced EQWIP
Project and any LICENSOR follow-on Projects thereto, so long as this Agreement
is in full force and effect. Subject Technology shall not include any
technology, know-how, methods, inventions, patent applications, patents,
maskworks or confidential information developed by any division, subsidiary or
Affiliate of Lockheed Martin Corporation other than Vought Systems.

1.2 "Licensed Products" shall mean and be limited to biomedical equipment that
incorporates or is intended to incorporate one or more EQWIPs or Advanced
EQWIPs, or that in any manner or to any extent incorporates or is intended to
incorporate, utilizes, or is made by the practice of,

<PAGE>

any of the Subject Technology or any technology derived from or based upon any
of the Subject Technology, or that is covered in whole or in part by any patent,
maskwork or equivalent protection that is or becomes part of the Subject
Technology, whether or not the equipment is delivered or sold assembled or in
kit form.

1.3 "Field" shall mean and be limited to biomedical applications of the Subject
Technology.

1.4      "The Parties" shall mean the LICENSEE and the LICENSOR.

1.5 "Affiliate" shall mean any corporation, partnership, joint venture, or other
entity controlled by, controlling or under common control with a Party. Control
means fifty one percent (51%) or more stock or other equity ownership.

1.6 "QED" shall mean Quantum Epitaxial Designs, Inc., having a place of business
at 119 Technology Drive, Bethlehem, PA 18015.

1.7 "Net Sales Revenue" shall mean the gross amount of monies (or the cash
equivalent of other than cash consideration) actually received by LICENSEE for
any Licensed Products that are sold to End-users, less any, credits and
allowances actually granted on account of rejections, returns or billing errors
and any transportation, shipping insurance, duties or taxes (other than federal
and state income taxes) actually paid. If the compensation is other than cash,
then the Net Sales Revenue shall be the cash equivalent of such other than cash
compensation.

1.8 "Sublicensee" shall mean a biomedical equipment manufacturer in which
LICENSEE has no financial or management interest, that is licensed by LICENSEE
pursuant to this Agreement to perform any of the rights and licenses granted to
LICENSEE in Paragraph 2.1 for which LICENSEE directly or indirectly receives
compensation.

1.9 "Sublicense" shall mean an agreement entered into by LICENSEE and a
Sublicensee which permits such Sublicensee to perform any of the rights or
licenses granted to LICENSEE in Paragraph 2.1 for which LICENSEE directly or
indirectly receives compensation.

1.10 "Sublicensing Revenue" shall mean all fees, royalties and other
compensation paid to LICENSEE by any Sublicensee for performing any rights or
licenses which are subject to this Agreement. If the compensation is other than
cash, then the Sublicensing Revenue shall be the cash equivalent of such other
than cash compensation.

1.11 "End-user" shall mean any person or entity that uses a Licensed Product for
other than manufacturing or test purposes. A Sublicensee shall not be considered
an End-user; however, it is recognized that a single person or entity may be
both a Sublicensee and an End-user.

1.12 "End-user Revenue" shall mean all rent, license, use, royalty, patient
transaction or other fees or income actually received by Licensee for the
license, lease or use of any Licensed Product by an End-user less any, credits
and allowances actually granted on account of rejections, returns or billing
errors and any duties or taxes (other than federal and state income taxes)
actually paid. if the compensation is other than cash, then the End-user Revenue
shall be the cash equivalent of such other than cash compensation.

                                       2
<PAGE>

1.13 "Relevant Patent" shall mean and include any patent licensed by LICENSOR
hereunder including any patent under paragraph 7.1 which has not been declined
by LICENSEE under paragraph 7.1; U.S. Patent No. 5,539,206 together with all
patent or like protection on the inventions described or claimed therein that
have or may in the future be granted, whether in the United States of America or
any other country, and all substitutions for and divisions, continuations,
continuations-in-part, renewals, reissues, extensions and the like on said
applications and patents shall be deemed to be Relevant Patents.

1.14 "LICENSEE Improvement Technology" shall mean all modifications,
improvements, derivations and additions made by or for LICENSEE (or by or for
any Sublicensee of LICENSEE) to any of the Subject Technology, but only to the
extent that such modifications, improvements, derivations and additions are
incorporated in, or used in the manufacture,, fabrication or testing of, any
device, focal plane array or hybrid structure that includes an EQWIP, Advanced
EQWIP or other device or structure, or combination of devices or structures, at
least in part based upon, derived from or covered by any of the Subject
Tethno$ogy, and may comprise know-how, techniques, methods, manufacturing
processes, materials, designs, structures, maskworks, inventions and patents.

2. GRANT OF LICENSE

2.1 License Grant. The LICENSOR hereby grants to the LICENSEE an exclusive
worldwide, right and license, with the right to grant Sublicenses to others: (i)
to practice the Subject Technology in the Field, (ii) to make, have made and
import Licensed Products in the Field, (iii) to use Licensed Products in the
Field for manufacturing and test purposes, and (iv) to offer for sale, sell,
lease and license Licensed Products for use by End-users in the Field. The right
and license shall be non-assignable except to successors by merger or sale of
substantially all of LICENSEE's assets, or by written permission of LICENSOR,
which permission shall not be unreasonably withheld.

2.2 Nonexclusive Rights Retained by LICENSOR. The grant in Paragraph 2.1 shall
be subject to, restricted by and nonexclusive with respect to practice of the
Subject Technology by the LICENSOR and its Affiliates in the Field for further
research and development purposes only, and for all purposes in any field in
which LICENSEE does not retain an exclusive license hereunder.

3. MARKETING EFFORTS

3.1 Assiduous Marketing by LICENSEE. LICENSEE shall use its reasonable best
efforts to effect assiduously the introduction of Licensed Products into the
commercial market as soon as practicable after the Effective Date. Such efforts
shall include, but not be limited to at all times, marketing the Licensed
Products with at least the same diligence as LICENSEE employs for comparable
products marketed by LICENSEE.

3.2 Prohibition Against Conflicts. LICENSEE shall not, during the period
commencing on the Effective Date and extending for a period of two (2) years
thereafter ("Startup Period"), acquire or develop any technologies, processes or
products that the use, manufacture, marketing, leasing or sales of which would
in any manner prevent or conflict with LICENSEE's use of its

                                       3
<PAGE>

best efforts to manufacture, market, lease and sell Licensed Products under this
Agreement. This prohibition shall in no manner preclude LICENSEE from acquiring
or developing during the Startup Period any technology or process (i) for use in
products that do not perform equivalent functions to those that could be
performed by biomedical equipment employing the Subject Technology, or (ii) for
use in, or in the manufacture of Licensed Products which are subject to the
terms and conditions of this Agreement including payment of royalties to
LICENSOR or (iii) which constitutes LICENSEE Improvement Technology that is
subject to the provisions of Paragraphs 7.2 and 7.3 hereof.

3.3 Grounds for Termination. Failure by LICENSEE to assiduously market Licensed
Products in accordance with Paragraphs 3.1 and 3.2 shall be grounds for
termination of this Agreement in accordance with Paragraph 10.2.

3.4 Continued Marketing. Sale and Lease of Products. Unless LICENSEE has
converted the exclusive license granted hereunder to a nonexclusive license
under Paragraph 5.3, at least 66% of all revenue derived by LICENSEE from the
manufacture, sale, lease and use of breast cancer screening and diagnosis
equipment, and 33% of all revenue derived by LICENSEE from the manufacture,
sale, lease and use of all biomedical equipment (including breast cancer
screening and diagnosis equipment) incorporating one or more infrared detector
focal plane arrays (collectively "IR-FPA Equipment"), shall employ the Subject
Technology and as such, shall constitute Licensed Products subject to payment of
royalties under paragraph 5.1 of this Agreement. If LICENSEE does not maintain
such level of production, sale, lease and license of Licensed Products, or pay
LICENSOR the same royalties that LICENSEE would have been required to pay if
such levels had been maintained (based on the average revenue received by
LICENSEE for all IR-FPA Equipment, but not less than the Minimum Royalties
specified in Paragraph 5.2), then the exclusive license granted hereunder shall
automatically become nonexclusive.

Notwithstanding the conversion of the license granted hereunder to a
nonexclusive license under this Paragraph or Paragraph 5.3, if the Licensed
Products manufactured, sold, leased and licensed by LICENSEE drops below 10% of
the total IR-FPA Equipment manufactured, sold, leased and licensed by LICENSEE,
LICENSOR shall have the right to terminate this Agreement in accordance with
Paragraph 10.2 if LICENSOR has the opportunity to grant an exclusive license to
a third party for use of the Subject Technology in the Field.

3.5 Penetration of Market Segments. It, at anytime after expiration of the
Startup Period, LICENSOR is approached or otherwise becomes aware of an
opportunity to license the Subject Technology in any market segment of the Field
that has not been developed by LICENSEE, LICENSOR shall notify LICENSEE and
shall have the right to require LICENSEE to undertake to develop such market
segment within-a reasonable period of time. If LICENSEE is unable or unwilling
to do so, all rights and licenses with respect to such market segment shall
revert to LICENSOR, and may thereafter be licensed to others on an exclusive or
nonexclusive basis. If LICENSOR fails to conclude any license with respect to
such opportunity within a reasonable period of time, the rights of LICENSEE to
such market segment will be reinstated, subject to any further opportunity which
arises in that market segment of the Field if it remains undeveloped by
LICENSEE. If LICENSOR concludes only a nonexclusive license, LICENSEE shall
retain a nonexclusive license with respect to such market segment of the Field.

                                       4
<PAGE>

4. TECHNICAL AND MARKETING ASSISTANCE BY LICENSOR

4.1 LICENSOR shall provide LICENSEE with reasonable technical and engineering
assistance in the design, manufacture and use of EQWIPs for Licensed Products,
subject to the following:

         (i) LICENSEE shall reimburse LICENSOR for all reasonable out of pocket
         travel costs and other expenses associated with providing technical and
         engineering assistance requested by LICENSEE at the rate of 1.33 times
         actual costs and expenses (includes LICENSOR overhead); and

         (ii) During the one (1) year period commencing on the Effective Date
         (`Technical Assistance Period") LICENSOR shall provide up to eighty
         (80) man-hours of technical and engineering assistance. Other than the
         costs and expenses provided for in subparagraph 4.1 (i), the first
         forty (40) man-hours of technical and engineering assistance services
         shall be provided at no cost to LICENSEE; LICENSEE shall pay LICENSOR
         for all additional man-hours of technical and engineering assistance
         services at the rates of $126.25 per man-hour during 1998 and $128.75
         per man-hour during 1999.

The rates and limitations for LICENSOR providing technical and engineering
assistance to LICENSEE beyond the Technical Assistance Period shall be
negotiated by the parties in good faith and shall be consistent with LICENSOR's
manpower availability and increased costs, if any, in providing such services.

4.2 Manufacturing Data Package. LICENSOR will provide a complete EQWIP
manufacturing data package to QED, a company licensed by LICENSOR to make EQW1Ps
for sale, lease and use outside of the FIELD; however, LICENSEE may purchase
EQWIPs from QED (or other manufacturer) for use in the FIELD under the have made
rights granted to LICENSEE in Paragraph 2.1 of this Agreement. The prices paid
by LICENSEE to QED (or other manufacturer) for any such EQWIPs will not include
any amount for royalties to LICENSOR as all royalties for such transactions
shall be paid by LICENSEE under this Agreement.

4.3 Purchase of Manufacturing Data Package by LICENSEE. In the event LICENSEE
decides to manufacture EQWIPs, or have them manufactured by other than QED,
LICENSOR agrees to furnish LICENSEE, upon written request, a complete up-to-date
manufacturing data package for a fee not to exceed the most favored price
offered by LICENSOR to any other licensee including QED.

5. PAYMENTS AND REPORTS

5.1 Running Royalty. LICENSEE shall pay the LICENSOR running royalties as
specified in Exhibit I - Royalties, attached hereto and made a part hereof by
this reference, for all sales, leases, licenses or other dispositions of
Licensed Products. Such running royalties shall be payable to the LICENSOR as
provided in Paragraph 5.4. No royalty will be paid for sale, lease, license or
other disposition of any equipment that does not include any of the LICENSOR's
Subject Technology or is not otherwise a Licensed Product.

                                       5
<PAGE>

5.2 Minimum Royalties. In the event that the sum of all running royalties paid
on sales and leases under Paragraph 5.1 in any calendar year does not reach the
minimum amount agreed upon for such year, LICENSEE shall pay an additional
amount with the payment due for the period ending December 31 of such year, so
that the total amount paid for such year shall reach the minimum amount agreed
upon for such year, subject to the following:

         (i) There shall be no minimum royalties for calendar years 1998;

         (ii) The minimum royalties for 1999 and beyond are as specified in
         Exhibit II, attached hereto and made a part hereof by this reference;
         and

         (iii) Running royalty amounts paid in excess of the minimum amount for
         any calendar year shall not be applied to offset any shortfall to the
         minimum amount for any other year.

5.3 Conversion to Nonexclusive License. LICENSEE may at its sole option, notify
LICENSOR in writing at least thirty (30) days prior to December 31 of any
calendar year, of its intent to convert the right and license granted in
Paragraph 2.1 to a nonexclusive license for all subsequent years; whereupon, the
right and license granted in Paragraph 2.1 shall become nonexclusive on January
31 of the following year, and payment of the minimum amount specified in
Paragraph 5.2 will not be required for such following year and all subsequent
years. Upon receipt of such notice, LICENSOR shall have the immediate right to
grant exclusive or nonexclusive licenses to third parties effective February 1
of such following year, subject to LICENSEE's retention of a nonexclusive
license during the term of this Agreement provided that LICENSEE meets the
minimum 10% requirement specified in Paragraph 3.4.

LICENSEE may reestablish its exclusive right and license at any time during the
term of this Agreement by written notice to LICENSOR of its intent to do so
accompanied by payment to LICENSOR of the full sum of the additional amounts
specified in Paragraph 5.2 for all years in which the minimum amount was not
paid; provided, however, LICENSEE's reestablished exclusive right and license
shall be subject to any and all rights and licenses granted by LICENSOR to third
parties during the period in which LICENSEE retained only a nonexclusive
license.

In addition, LICENSOR shall have the right to convert the exclusive license to a
nonexclusive license if LICENSEE fails to have in place in the Field, the
minimum number of royalty generating installations specified in Exhibit II.

5.4 Payment of Royalties. Payment of the royalties specified in Paragraphs 5.1
and 5.2 shall be made by the LICENSEE to the LICENSOR within thirty (30) days
after March 31, June 30, September 30 and December 31 of each year during the
term of this Agreement covering the quantity of Licensed Products sold, leased,
licensed or otherwise deployed in the field and the Net Sales Revenue, End-user
Revenue and Sublicensing Revenue received by LICENSEE during the preceding
calendar quarter. After termination or expiration of this Agreement, (I) a final
payment shall be made by LICENSEE covering the whole or partial final calendar
quarter and (ii) LICENSEE shall continue making payments as required under
paragraph 10.5(i). Each quarterly payment shall be accompanied by a written
statement of the quantity of Licensed

                                       6
<PAGE>

Products sold during the preceding quarter, the quantity of Licensed Products
leased, licensed or otherwise deployed in the field (preceding quarterly
increment and cumulative total), the Net Sales Revenue, End-user Revenue and
Sublicensing Revenue received by LICENSEE during such preceding calendar
quarter, and the calculation of royalties due LICENSOR. Such written statements
shall be duly signed by an authorized signatory of LICENSEE.

5.5 Other Payments. Payment to the LICENSOR for the costs, expenses and services
specified in Sections 4 and 9 which are attributable to LICENSEE shall be made
by LICENSEE within thirty (30) days after receipt of LICENSOR's invoice
detailing such costs, expenses and services. Such invoices shall be submitted
for payment no more often than once per month.

5.6 Failure to Make Timely Payment. Should LICENSEE fail to make any payment
whatsoever due and payable to the LICENSOR hereunder, the LICENSOR may, at its
sole option, terminate this Agreement as provided in Paragraph 10.2

5.7 Method of Payment. All payments due hereunder are expressed in and shall be
paid by check payable in United States of America currency, without deduction of
exchange, collection or other charges, to the LICENSOR, or to the account of the
LICENSOR at such bank as the LICENSOR may from time to time designate by notice
to LICENSEE.

5.8 Late Payments to Accrue Interest. In the event that any payment due
hereunder is not made when due, such payment shall accrue interest beginning on
the tenth day following the due date thereof, calculated at the annual rate of
the sum of (a) two percent (2%) plus (b) the prime interest rate quoted by The
Wall Street Journal on the date said payment is due, the interest being
compounded on the last day of each calendar quarter, provided, however, that in
no event shall said annual interest rate exceed the maximum legal interest rate
for corporations. Each such overdue payment, when made, shall be accompanied by
all interest so accrued. Said interest and the payment and acceptance thereof
shall not negate or waive the right of the LICENSOR to seek any other remedy,
legal or equitable, to which it may be entitled because of the delinquency of
any payment.

5.9 Marketing Report. In addition to the statement required in Paragraph 5.4,
LICENSEE shall furnish to the LICENSOR within thirty (30) days after December 31
of each year during the term of this Agreement, a written report signed by the
appropriate LICENSEE officer detailing the actions taken by LICENSEE during the
preceding calendar year to comply with the provisions of Paragraph 3.1.

6. RECORDS AND INSPECTION

         LICENSEE shall maintain or cause to be maintained a true and correct
set of records pertaining to the manufacture, sales, leases, licenses and other
transactions relating to Licensed Products by LICENSEE under this Agreement and
all Net Sales Revenue and End-user Revenue received by LICENSOR with respect
thereto. LICENSEE shall further maintain or cause to be maintained a true and
correct set of records pertaining to any Sublicenses granted hereunder and all
Sublicensing Revenue received by LICENSEE with respect thereto. During the term
of this Agreement and for a period of two (2) years thereafter, LICENSEE agrees
to permit Lockheed Martin Corporation's internal auditors, and/or an independent
accountant selected by the

                                       7
<PAGE>

LICENSOR and reasonably acceptable to LICENSEE, at LICENSOR's sole option and
expense, to have access during ordinary business hours to such LICENSEE records
as may reasonably be required by such auditors and accountant to determine the
correctness of any report and/or payment made by LICENSEE under this Agreement.
The cost of any such audit shall be borne by LICENSOR; provided, however, in the
event that the audit reveals an underpayment of royalties by LICENSEE of more
than five percent (5%), the cost of the audit shall be reimbursed in full by
LICENSEE. If audit reveals an underpayment by LICENSEE of between five percent
(5%) and two percent (2%), LICENSEE shall reimburse fifty percent (50%) of the
cost of the audit to LICENSOR. LICENSOR's auditors and accountant shall maintain
in confidence, and shall not disclose to LICENSOR, any information concerning
LICENSEE or its operations or properties other than information directly
relating to the correctness of LICENSEE's reports and payments under this
Agreement.

7.       IMPROVEMENTS

7.1 Disclosure of Improvements to LICENSEE. So long as this Agreement is in full
force and effect, LICENSOR shall to the extent of its right to do so, no later
than the time it is completed, built, fully tested and ready for use in
commercial production, disclose to LICENSEE improvements or modifications to the
Subject Technology made by LICENSOR or any third party for or on behalf of
LICENSOR. LICENSOR will also advise LICENSEE of any third party patent that it
is aware might be infringed by use of any such improvements or modifications.
LICENSEE's right and license with respect to such improvements and modifications
shall be the same as LICENSEE has with respect to any other Subject Technology
under paragraph 2.1; provided, however, that LICENSEE shall have the right to
decline a license under any patent issued to LICENSOR covering any such
improvement or modification by giving written notice to LICENSOR, whereupon such
patent shall not be considered a Relevant Patent and LICENSEE shall have no
right or license whatsoever with respect to the Subject Technology covered by
such patent.

7.2 Disclosure of LICENSEE Improvement Technology to LICENSOR. LICENSEE shall to
the extent of its right to do so, no later than the time it is completed, built,
fully tested and ready for use in commercial production, disclose to LICENSOR
all LICENSEE Improvement Technology for use by LICENSOR, its Affiliates and
sublicensees under Paragraph 7.3. LICENSEE will also advise LICENSOR of any
third party patent that it is aware might be infringed by use of any such
LICENSEE Improvement Technology.

7.3 Grant-Back of Nonexclusive License in LICENSEE Improvement Technology to
LICENSOR. With respect to all LICENSEE Improvement Technology that LICENSEE is
obligated to disclose to LICENSOR under Paragraph 7.2, LICENSEE shall to the
extent of its right to do so, grant, and hereby does grant to the LICENSOR and
its Affiliates, in all cases where, and to the extent that, LICENSEE does not
have or retain an exclusive right and license under this Agreement, a perpetual,
fully paid-up and royalty free nonexclusive, worldwide, right and license to
incorporate such LICENSEE Improvement Technology in products and to practice
such LICENSEE Improvement Technology to make, have made, use, offer for sale,
sell, lease and import products, including the right to grant sublicenses
thereunder. Such cases include and are limited to: (a) the nonexclusive rights
and licenses retained by LICENSOR and its Affiliates under Paragraph 2.2, (b)
the exclusive rights and licenses retained by LICENSOR and its

                                       8
<PAGE>

Affiliates with respect to all uses of the Subject Technology outside of the
Field, (c) the nonexclusive rights and licenses which revert to LICENSOR upon
forfeit by LICENSEE of any of its rights to exclusivity under any of Paragraphs
3.4, 3.5 and 5.3, (d) any rights to exclusivity voluntarily relinquished to
LICENSOR by LICENSEE and, (e) upon the termination of this Agreement, LICENSOR
shall have and retain a non-exclusive right and license in all LICENSEE
Improvement Technology that LICENSOR was, or was entitled to be granted by
LICENSEE during the term of this Agreement. LICENSEE agrees to execute any and
all documents reasonably required by LICENSOR to effectuate the rights and
licenses granted to LICENSOR and its Affiliates hereunder.

7.4 Abandonment by LICENSEE. Prior to intentionally causing "abandonment or
"cancellation" (as such terms are used in 37CFR 1.135, 37CFR 1.138, 37 CFR 201.7
or like provisions of U.S. or foreign laws or regulations governing inventions,
patents, copyrights and maskworks) of any patent, invention, copyright, maskwork
or other legal right to any LICENSEE Improvement Technology to which LICENSOR is
entitled to a nonexclusive license under Paragraph 7.3, LICENSEE shall to the
extent of its right to do so, transfer and assign the same to LICENSOR; LICENSOR
shall continue to have nonexclusive rights and licenses in all other LICENSEE
Improvement Technology to which LICENSOR is entitled under Paragraph 7.3, and
such rights and licenses shall survive any expiration or termination of this
Agreement. If LICENSEE assigns any rights to LICENSOR prior to termination of
this Agreement, LICENSEE shall have and retain a license in all such assigned
rights of the same scope which LICENSEE has and retains with respect to Subject
Technology under this Agreement.

8.       SUBLICENSES

         All Sublicenses granted by LICENSEE of its rights hereunder to a
Sublicensee shall be subject to the terms of this License Agreement. LICENSEE
shall obtain prior written approval from the LICENSOR before entering into any
Sublicense with a Sublicensee. LICENSOR's approval shall not be unreasonably
withheld or delayed for any markets or territories that are not readily or fully
penetrable by LICENSEE so long as (i) LICENSOR's share of Sublicensing Revenue
generated by the Sublicense for transactions performed by the Sublicensee is at
least 50% of the amount LICENSOR would receive for the same transactions if
performed by the LICENSEE rather than the Sublicensee (e.g., at least 1.5% of
End-user Revenue but not less than $.38, .75% but not less than $.19 after
expiration/invalidity of all Relevant Patents and 1 .5% Net Sales Revenue for
outright sales of Licensed Products, .75% after expiration/invalidity of all
Relevant Patents), or (ii) despite LICENSOR's share of the Sublicensing Revenue
being less than the minimum stated in clause (I) LICENSEE agrees to pay LICENSOR
the minimum stated in (I), or (iii) the total Sublicensing Revenue consists of
an up-front fee and LICENSOR is unwilling or unable, within ninety (90) days of
being requested to approve the Sublicense, to find an equivalent Sublicensee
that is willing to pay a higher Sublicensing Revenue. It shall be deemed
reasonable for LICENSOR to withhold it's approval of any Sublicense (i) for any
market or territory that is capable of being readily and fully penetrable by
LICENSEE, or (ii) for which LICENSOR's share of the Sublicensing Revenue does
not fall within clauses (I), (ii) or (iii) of the previous sentence. LICENSEE
shall be responsible for its Sublicensees and shall not grant any rights which
are inconsistent with the rights granted to, and obligations of, LICENSEE
hereunder. Any act or omission of a Sublicensee that would be a breach of this
License Agreement if performed by LICENSEE shall be deemed to be a breach by
LICENSEE of this

                                       9
<PAGE>

License Agreement. Each Sublicense shall make LICENSOR a third party beneficiary
with the right to enforce its provisions against unauthorized disclosure and use
of the Subject Technology, audit the Sublicensee's records to the same scope
provided in Section 6 hereof with respect to LICENSEE's records, and have the
Sublicense and royalties assigned to LICENSOR under Paragraph 10.5 (ii). No such
Sublicense shall contain any provision that. purports to grant any rights beyond
the rights granted to LICENSEE in this License Agreement. LICENSEE shall give
the LICENSOR prompt notification of the identity and address of each Sublicensee
with whom it concludes a Sublicense and shall supply the LICENSOR with a copy of
each such Sublicense.

9. PATENTS AND INFRINGEMENT

9.1 Patent Rights. LICENSOR shall, during the term of this Agreement, pay all
costs and expenses associated with the United States patent identified in
Paragraph 1.1, including maintenance fees. LICENSOR has the option, but not any
obligation, to pay the costs and expenses associated with foreign counterpart
patent applications and patents, and any United States and foreign patents on
improvements made by LICENSOR. In the event that LICENSOR decides not to file
any foreign or improvement patent application, or to discontinue any such patent
application or patent, LICENSOR will provide LICENSEE with reasonable advanced
notice of its intent to do so and an adequate opportunity for LICENSEE to pay
such costs and expenses; provided, however, that LICENSOR shall remain the sole
assignee of all such United States and foreign patents (notwithstanding the fact
that LICENSEE pays such costs and expenses) and all such patents shall remain
subject to any licenses which LICENSOR grants with respect thereto outside of
the Field.

9.2 Marking of Licensed Products. LICENSEE shall mark, and cause any
Sublicensees to mark with a Patent Number label, Licensed Products sold in
countries where a patent covering such Licensed Product, in whole or in part,
has issued.

9.3 Infringement of Patent Rights by Third Parties. With respect to the Subject
Technology, each Party shall promptly inform the other of any known or suspected
infringement of any patent right, or of any misuse, misappropriation, theft or
breach of confidence of any other proprietary right by any third party. So-long
as, and to the extent that, this Agreement remains in full force and effect,
LICENSEE shall have the right, but not the obligation, to institute (alone or
jointly with any other licensees of the Subject Technology that desire to
participate) an action for infringement, misuse, misappropriation, theft or
breach of confidence of the patent or other proprietary rights against such
third party. If LICENSEE fails to bring such an action or proceeding within a
period of three (3) months after receiving notice or otherwise having knowledge
of such infringement, the LICENSOR shall have the right, but not the obligation,
to prosecute at its own expense, any such claim. Should either the LICENSOR or
LICENSEE commence suit under the provisions of this Paragraph 9.3, and
thereafter elects to abandon the same, it shall give timely notice to the other
Party who may, if it so desires, continue prosecution of such action or
proceeding. All recoveries, whether by judgment, award, decree or settlement,
from infringement or misuse of the Subject Technology shall be apportioned as
follows: if LICENSEE brings the action or proceeding, LICENSEE shall first
recover an amount equal to two (2) times the costs and expenses incurred by
LICENSEE directly related to the prosecution of such action or proceeding and
the remainder shall be divided equally between LICENSEE and

                                       10
<PAGE>

the LICENSOR, if LICENSOR brings the action or proceeding, LICENSOR shall be
entitled to the entire amount recovered.

9.4 LICENSOR Consent Required to Settle. LICENSEE shall not settle any action
covered by Paragraph 9.3 without first obtaining the consent of LICENSOR, which
consent will not be unreasonably withheld.

10. TERM AND TERMINATION

10.1 Term. Unless earlier terminated as hereinafter provided, this Agreement
shall extend for the life of U.S. Patent No. 5,539,206 and all other Relevant
Patents that are in full force and effect, and for a period of five (5) years
thereafter. After expiration of such five-year period, LICENSEE shall have a
perpetual, royalty-free license to practice the Subject Technology of the same
scope as LICENSEE had on the date such five-year period expired, and no further
Minimum Annual Royalties or Minimum Royalty Generating Installations shall be
required.

10.2 Termination for Default by LICENSEE. In the event of default or failure by
LICENSEE to perform any of the terms, covenants or provisions of this Agreement,
LICENSEE shall have sixty (60) days after the giving of written notice of such
default by the LICENSOR to correct such default. If any default with respect to
any material obligation is not corrected within the said sixty (60) day period,
the LICENSOR shall have the right, at its option, to cancel and terminate this
Agreement. Failure of the LICENSOR to exercise its right of termination for
nonpayment or late payment of royalties or for any other reason shall not be
deemed to be a waiver of any right the LICENSOR might have, nor shall such
failure preclude the LICENSOR from exercising or enforcing said right upon any
subsequent failure by LICENSEE.

10.3 Termination for Insolvency of LICENSEE. The LICENSOR shall have the right,
at its option, to cancel and terminate this Agreement in the event that LICENSEE
shall: (a) become involved in insolvency, dissolution, bankruptcy or
receivership proceedings affecting the operation of its business or (b) make an
assignment of all or substantially all of its assets for the benefit of
creditors, or in the event that (c) a receiver or trustee is appointed for
LICENSEE, if, after the expiration of ninety (90) days following any of the
events enumerated above, LICENSEE shall have been unable to secure a dismissal,
stay or other suspension of such proceedings.

10.4 Termination by LICENSEE. LICENSEE may terminate this Agreement at any time
giving ninety (90) days prior written notice to LICENSOR.

10.5 LICENSEE Obligations Upon Termination. At the date of any termination of
this Agreement, if pursuant to Paragraph 10.2 upon failure to timely correct any
default by LICENSEE with respect to any material obligation after notice from
LICENSOR, if pursuant to Paragraph 10.3 as of the failure by LICENSEE to secure
a timely dismissal, stay or suspension of the enumerated proceeding and notice
from LICENSOR, or if pursuant to Paragraph 10.4 as of the expiration of ninety
(90) days after notice is given to LICENSOR by LICENSEE (hereinafter the
"Termination Date"), LICENSEE shall:

         (i) immediately cease any and all practice of the Subject Technology
         and the rights and licenses granted to LICENSEE hereunder, and return
         to LICENSOR all tangible

                                       11
<PAGE>

         copies of the Subject Technology in LICENSEE's possession; provided,
         however, that subject to LICENSEE paying and continuing to pay all
         running royalties to the LICENSOR in accordance with Paragraph 5.1 when
         due, and otherwise complying with the terms of this Agreement, LICENSEE
         may (A) sell, lease, license or otherwise place in the Field any
         Licensed Products actually in LICENSEE's possession prior to the
         Termination Date and (B) continue to collect End-user Revenue on all
         such Licensed Products as well as those which LICENSEE leased, licensed
         or otherwise placed in the Field prior to the date of termination;

         (ii) transfer and assign to LICENSOR, any and all Sublicenses which may
         have been granted by LICENSEE pursuant to the terms hereof; and

         (iii) comply with the provisions of 7.2, 7.3 and 7.4.

10.6 Specific Performance of Obligations. LICENSEE warrants, represents and
agrees that damages alone are insufficient as a remedy for any breach of
LICENSEE's obligations under Subparagraphs 7.2, 7.3, 7.4 and 10.5 (ii) and
(iii), and in the event of any such breach, LICENSOR shall be entitled to relief
by specific performance. LICENSOR warrants, represents and agrees that damages
alone are insufficient as a remedy for any breach of LICENSOR's obligations
under Subparagraphs 4.3, 7.1 and 8, and in the event of any such breach,
LICENSOR shall be entitled to relief by specific performance.

10.7 Survival of Obligations. No expiration or termination of this Agreement
shall constitute a termination or a waiver of any rights of either Party against
the other Party accruing at or prior to the time of such termination or
expiration. The obligations of LICENSEE under Paragraphs 5, 6, 7, 15 and this
Section 10 shall survive expiration or termination of this Agreement and the
obligations of LICENSOR under Paragraph 15 and this Paragraph 10 shall survive
expiration or termination of this Agreement.

11.      ASSIGNABILITY

This Agreement shall be binding upon and shall inure to the benefit of the
LICENSOR and its assigns and successors in interest, and shall be binding upon
and shall inure to the benefit of LICENSEE and the successor by merger or sale
of all or substantially all of its assets or businesses to which this Agreement
pertains, but shall not otherwise be assignable or assigned by LICENSEE without
prior written approval by the LICENSOR being first obtained, which approval
shall not be unreasonably withheld.

12. GOVERNMENTAL COMPLIANCE

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

                                       12
<PAGE>

13. GOVERNING LAW

This Agreement shall be deemed to be subject to, and have been made under, and
shall be construed and interpreted in accordance with the laws of the State of
Texas, United States of America, without giving effect to the principles of
conflicts of laws. This Agreement is expressly acknowledged to be subject to all
federal laws including but not limited to the Export Administration Act of the
United States of America. No conflict-of-laws rule or law that might refer such
construction and interpretation to the laws of another state, republic, or
country shall be considered.

This Agreement is performable in part in Dallas, Texas and the Parties mutually
agree that personal jurisdiction and venue shall be proper in the state and
federal courts situated in Dallas, Texas and agree that any litigated dispute
will be conducted solely in such courts.

14. ADDRESSES

Any payment, notice or other communication pursuant to this Agreement shall be
sufficiently made or given on the date of mailing if sent to such Party by first
class mail, postage prepaid, addressed to it at its address below or as it shall
designate by written notice given to the other Party:

In the case of the LICENSOR:               With a copy to:

G. D. Troxel                               Stephen S. Sadacca
Senior Vice President                      Legal Department
Lockheed Martin Corporation                Lockheed Martin Corporation
Vought Systems                             Vought Systems
P0Box 650003 Mail Stop PT-28               P0 Box 650003 Mail Stop WT-05
Dallas, TX 75265-0003                      Dallas, TX 75265-0003

In the case of LICENSEE:

Mark A. Fauci
President
OmniCorder Technologies, Inc.
25 East Loop Road
Stony Brook, NY 11790

15. ADDITIONAL PROVISIONS

15.1 Use of Party's Name. LICENSEE agrees that it may not use in any way the
name Lockheed Martin or any derivation thereof (except in a factual manner to
confirm the existence of this Agreement and the parties respective rights and
obligations hereunder), or any trademark, logotype or symbol associated with the
LICENSOR, without the prior written consent of the LICENSOR. LICENSOR agrees
that it may not use in any way the name OmniCorder or any derivation thereof
(except in a factual manner to confirm the existence of this Agreement and the
parties respective rights and obligations hereunder), or any trademark, logotype
or symbol associated with the LICENSEE without the prior written consent of the
LICENSOR. If a Party

                                       13
<PAGE>

consents to the use of its name or mark in any advertisement, product circular,
catalog, trade show or trade journal, etc., the other Party shall provide such
Party with the proposed text or copy at least forty five (45) days before
publication, distribution or display and such Party shall have thirty (30) days
after receipt of such text or copy to modify the text, form or content in which
its name or mark is used.

15.2 Confidentiality. LICENSEE agrees to maintain the Subject Technology
provided by LICENSOR in strict confidence, and to use the same only in
accordance with this Agreement. Both parties agree to maintain information
related to the other's business in confidence to the extent that the same is
identified as being confidential by the disclosing party at the time of
disclosure and confirmed in writing within thirty (30) days. Such obligation of
confidentiality shall not apply to information which the recipient can
demonstrate: (i) was at the time of disclosure in the public domain; (ii) has
come into the public domain after disclosure through no fault of the recipient
party or in the case of LICENSEE, any Sublicensee of LICENSEE; (iii) was known
to the recipient party prior to disclosure thereof by the disclosing party, as
shown by contemporaneous documentation; (iv) was lawfully disclosed to the
recipient party by a third party which was not under an obligation of confidence
to the disclosing party with respect thereto; (v) which the recipient party can
reasonably demonstrate was independently developed by the recipient party, and
in the case of the LICENSEE, without practice of any of the Subject Technology;
or (vi) which the recipient party shall be compelled to disclose by law or legal
process, provided that such recipient party gave the disclosing party timely
notice and assistance in obtaining a secrecy order covering such disclosure. The
foregoing obligation of confidentiality shall survive termination of this
Agreement.

15.3 Indemnity. Each Party shall notify the other of any claim, lawsuit or other
proceeding related to any Subject Technology or Licensed Product.

         15.3.1. LICENSEE agrees that it will defend, indemnify and hold
         harmless the LICENSOR. its employees, officers, directors, and agents
         and each of them (the

         "LICENSOR Indemnified Parties), from and against any and all claims,
         causes of action, lawsuits or other proceedings filed or otherwise
         instituted against any of the LICENSOR Indemnified Parties related
         directly or indirectly to, or arising out of:

                  15.3.1.1. Any injuries to persons or property which occur on
                  LICENSEEs or LICENSOR's premises as a result of the negligence
                  of LICENSEE or its employees, whether or not such claims,
                  causes of action, lawsuits or other proceedings and the costs
                  (including attorney's fees) related thereto, result in part
                  from the negligence of any of the LICENSOR Indemnified
                  Parties.

                  15.3.1.2. Any breach of contract, breach of warranty, product
                  liability, or injury or death to any person or property
                  resulting from (i) any use or misuse of any of the Subject
                  Technology or of any Licensed Product made by, for or on
                  behalf of, or imported, offered for sale, sold or leased by,
                  LICENSEE or any of its Sublicensees, or by any of its or their
                  suppliers or customers at any tier including, but not limited
                  to any research, patient testing, diagnostic interpretation or
                  treatment, or (ii) any design, process, manufacture, or
                  practice of any of the

                                       14
<PAGE>

                  Subject Technology, or the making, having made. importing,
                  using, offering for sale, selling or leasing of any Licensed
                  Products, by LICENSEE or any of its Sublicensees, or by any of
                  its or their suppliers or customers at any tier; whether or
                  not such use or misuse, or such design, process, manufacture,
                  or practice of the Subject Technology was suggested by
                  LICENSOR or is licensed hereunder, and whether or not even
                  though such claims, causes of action, lawsuits or other
                  proceedings and the costs (including attorney's fees) related
                  thereto, result in part from the negligence of any of the
                  LICENSOR Indemnified Parties.

                  15.3.1.3. Any act by LICENSEE or any of its Sublicensees, or
                  any of its or their suppliers or customers at any tier,
                  resulting in the infringement of any U.S. or foreign patent or
                  other intellectual property right covering or alleged to cover
                  (i) any material or process used to make or have made any
                  Licensed Product, or (ii) any modification, improvement or
                  addition to, combination with, or structure other than, the
                  EQWIP structure as described and claimed in LICENSOR's U.S.
                  Patent Number 5,539,206; whether or not such material,
                  process, modification, improvement, addition, combination or
                  structure was suggested by LICENSOR or is licensed hereunder.
                  LICENSEE shall not be required to indemnify LICENSOR for
                  infringement of any U.S. or foreign patent or other
                  intellectual property right covering or alleged to cover the
                  exact EQWIP structure as described and claimed in LICENSOR's
                  U.S. Patent Number 5,539,206; provided, that, LICENSEE does
                  not join LICENSOR as a party defendant in any claim, cause of
                  action, lawsuit or other proceeding filed or otherwise
                  instituted against LICENSEE except as provided in 15.3.2.

                  LICENSEE assumes full responsibility for all costs and
                  expenses related to claims, lawsuits and proceedings for-which
                  it is obligated to indemnify the LICENSOR indemnified Parties
                  hereunder, including, but not limited to, the payment of all
                  damages, settlements reasonable attorneys' fees and costs of
                  litigation or other defense. LICENSOR shall cooperate with
                  LICENSEE and provide LICENSEE with any relevant background
                  information requested by LICENSEE.

         15.3.2 LICENSOR shall defend, indemnify and hold harmless the LICENSEE,
         its employees, officers, directors, and agents and each of them (the
         "LICENSEE Indemnified Parties"), with respect to any claims, causes of
         action, lawsuits or other proceedings filed or otherwise instituted
         against the LICENSEE Indemnified Parties for:

                  15.3.2.1. Any injuries to persons or property which occur on
                  LICENSOR's premises solely as the result of the negligence of
                  LICENSOR or its employees.

                  15.3.2.2. Any infringement of a U.S. patent that results from
                  the making, having made, importing, using, selling or leasing
                  by LICENSEE of EQWIPs that have the exact structure as
                  described and claimed in the above referenced U.S. Patent
                  Number 5,539,206, but shall not include any claims, causes of
                  action, lawsuits or other proceedings filed or otherwise
                  instituted against any LICENSEE

                                       15
<PAGE>

                  Indemnified Parties for infringement of any other U.S., or any
                  foreign, patent or other intellectual property right.

                  LICENSOR assumes full responsibility for all costs and
                  expenses related to claims, lawsuits and proceedings for which
                  it is obligated to indemnify the LICENSEE Indemnified Parties
                  hereunder, including, but not limited to, the payment of all
                  damages, settlements reasonable attorneys' fees and costs of
                  litigation or other defense. LICENSEE shall cooperate with
                  LICENSOR and provide LICENSOR with any relevant background
                  information requested by LICENSOR.

                  If LICENSOR cannot reasonably obtain the right for LICENSEE to
                  continue to practice any invention covered by a U.S. patent
                  that LICENSOR is required to defend LICENSEE against under
                  15.3.2.2 above, or provide LICENSEE with a non-infringing
                  alternative, then LICENSEE shall cease all further
                  manufacture, use, sale, lease and import of the infringing
                  EQWIP structure, and LICENSOR shall have no further obligation
                  to LICENSEE with respect to any further infringements; this
                  shall not relieve LICENSOR, however, of any of its obligations
                  to the LICENSEE Indemnified Parties under 15.3.2.2 resulting
                  from licensed activities performed by LICENSEE prior to
                  initiation of the claim, lawsuit or proceeding which LICENSOR
                  was obligated to defend against in.

15.4 Insurance. LICENSEE shall for so long as LICENSEE manufactures, uses or
sells any Licensed Product(s), maintain in full force and effect policies of (i)
worker's compensation and/or employers' liability insurance within statutory
limits, (ii) general liability insurance (with broad form general liability
endorsement) with limits of not less than five million dollars ($5,000,000) per
occurrence with no annual aggregate and (iii) products liability insurance, with
limits of not less than five million dollars ($5,000,000) per occurrence with no
annual aggregate. Such coverage(s) shall be purchased from a carrier or carriers
deemed acceptable to the LICENSOR with no annual aggregate and shall name the
LICENSOR as an additional insured. Upon request by the LICENSOR, LICENSEE shall
provide to the LICENSOR copies of said policies of insurance

15.5 The LICENSOR's Disclaimers. Neither The LICENSOR, nor any of its officers.
employees, directors, or agents assume any responsibility for the manufacture,
product specifications, sale or use of the Subject Technology or the Licensed
Products which are manufactured by or sold by LICENSEE or any Sublicensee of
LICENSEE.

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

                                       16
<PAGE>

15.7 DISCLAIMER OF WARRANTY. THE LICENSOR MAKES NO WARRANTIES OR
REPRESENTATIONS, EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, WARRANTIES
OF FITNESS OR MERCHANTABILITY, REGARDING OR WITH RESPECT TO THE SUBJECT
TECHNOLOGY OR LICENSED PRODUCTS AND THE LICENSOR MAKES NO WARRANTIES OR
REPRESENTATIONS, EXPRESSED OR IMPLIED, OF THE VALIDITY OF ANY PATENT ISSUED WITH
RESPECT TO THE SUBJECT TECHNOLOGY OR LICENSED PRODUCTS OR OF THE ENFORCEABILITY
OF ANY PATENTS, OR THAT THE SUBJECT TECHNOLOGY OR LICENSED PRODUCTS ARE OR SHALL
BE FREE FROM INFRINGEMENT OF ANY PATENT OR OTHER RIGHTS OF THIRD PARTIES.

15.8 REPRESENTATIONS OF LICENSEE. THE LICENSEE WARRANTS AND REPRESENTS TO THE
LICENSOR THAT IT HAS EXAMINED THE SUBJECT TECHNOLOGY AND ACCEPTS SUCH TECHNOLOGY
AS-IS, THAT LICENSEE HAS DETERMINED THAT THE LICENSED TECHNOLOGY AS-IS MEETS ALL
OF ITS REQUIREMENTS, THAT RECEIPT OF THE SUBJECT TECHNOLOGY FROM LICENSOR GIVES
LICENSEE A HEAD-START AND OPPORTUNITY TO ADD A NEW PRODUCT TO ITS BUSINESS WHICH
IS CONSIDERED OF SIGNIFICANT VALUE TO LICENSEE AT LEAST EQUAL TO THE ROYALTIES
STATED HEREIN WHETHER OR NOT ANY ADDITIONAL PATENT EVER ISSUES THEREUPON OR ANY
PATENT IS HELD NONINFRINGED, OR THE SUBJECT TECHNOLOGY IS OR BECOMES KNOWN TO
OTHERS OR A PART OF THE PUBLIC DOMAIN. ACCORDINGLY, LICENSEE WARRANTS AND
REPRESENTS TO LICENSOR THAT IT WILL NOT SEEK ANY REDUCTION OF SUCH STATED
ROYALTIES IN THE EVENT THAT NO ADDITIONAL PATENT EVER ISSUES ON THE SUBJECT
TECHNOLOGY OR ANY PATENT IS HELD NONINFRINGED, OR THE SUBJECT TECHNOLOGY IS OR
BECOMES KNOWN TO OTHERS OR A PART OF THE PUBLIC DOMAIN. IN ADDITION, LICENSEE
WARRANTS AND REPRESENTS THAT IT WILL NOT EITHER DIRECTLY OR INDIRECTLY SEEK OR
ASSIST OTHERS IN SEEKING TO INVALIDATE THE ABOVE REFERENCED U.S. PATENT NO.
5,539,206; HOWEVER, IN THE EVENT THAT THE VALIDITY OF SUCH ABOVE REFERENCED US.
PATENT IS OTHERWISE CHALLENGED AND IS HELD INVALID, AND NO ADDITIONAL PATENTS
HAVE ISSUED TO LICENSOR COVERING THE SUBJECT TECHNOLOGY OR LICENSED PRODUCTS,
THEN THE ROYALTIES SHALL BE REDUCED IN ACCORDANCE WITH EXHIBIT I. LICENSOR
WARRANTS AND REPRESENTS THAT IT WILL NOT EITHER DIRECTLY OR INDIRECTLY SEEK OR
ASSIST OTHERS IN SEEKING TO INVALIDATE ANY LICENSEE PATENTS UNDER WHICH LICENSOR
HAS A LICENSE PURSUANT TO PARAGRAPH 7.3.

15.9 Non-Waiver. The Parties covenant and agree that if a Party fails or
neglects for any reason to take advantage of any of the terms provided for the
termination of this Agreement or if a Party, having the right to declare this
Agreement terminated, shall fail to do so, any such failure or neglect by such
Party shall not be a waiver or be deemed or be construed to be a waiver of any
cause for the termination of this Agreement subsequently arising, or as a waiver
of any of the terms, covenants or conditions of this Agreement or of the
performance thereof. None of the

                                       17
<PAGE>

terms, covenants and conditions of this Agreement may be waived by a Party
except by its written consent.

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

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

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

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

LICENSOR                                   LICENSEE
LOCKHEED MARTIN CORPORATION                OMNICORDER TECHNOLOGIES, INC.
VOUGHT SYSTEMS

BY:                                        BY:
   --------------------------------           ----------------------------------

TITLE:                                     TITLE:
      -----------------------------              -------------------------------

DATE:                                      DATE:
     -----------------------------              --------------------------------

                                       18

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