Document:

WAYNE STATE UNIVERSITY—
	 	LICENSE AGREEMENT

 

    	 

    	 

    

 

	
        Wayne
        StatE 

        University

        Division of research
	 	
        TECHNOLOGY TRANSFER OFFICE

        440 Burroughs, Suite
        201

        Detroit, MI 48202

        (313) 577-5541 FAX
        (313) 577-2814

         

         

        ANNE C. DI SANTE, SENIOR DIRECTOR

        anne.disante@wayne.edu

 

December 18, 2009

 

John Howell

President

Arrayit Diagnostics, Inc. 2401

SGessner#392 Houston, TX

77063

 

VIA UPS 916-

599-3138

 

		Re:	License Agreement between Wayne State University and Arrayit Diagnostics, Inc., effective December 7, 2009

 

Dear John:

 

Enclosed please find Arrayit Diagnostics's fully-executed original
of the subject license agreement. Under Section 3.1(a), WSU is to receive $20,000 in license issue fees which we have not yet received.
Additionally, in early January we will provide you with copies of the patent invoices for reimbursement as provided in Section
3.1(b).

 

Under Section 5.1(a), please provide contact
information for receipt of patent-related correspondence for Arrayit Diagnostic's review and comment.

 

I look forward to working with you and your colleagues. If you
have any questions, please don't hesitate to call.

 

	 	Best regards,
	 	 
	 	/s/ Anne C. Di Sante
	 	Anne C. Di Sante

 

Encl.

 

		Cc:	L. Burns J. Johncox

			H. Thomas-Micheaux

 

ACDL451

 

Wayne State University Technology Commercialization

Technology Transfer Office ^ Venture Development
Office

www.techtransfer.wayne.edu

 

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LICENSE AGREEMENT

 

This Agreement is entered into as of
December 7, 2009 Effective Date"),  by and between Wayne State University, a non-profit Michigan educational institution
("WSU") and Arrayit Diagnostics, Inc., a corporation incorporated in the State of Nevada ("Licensee").

 

BACKGROUND:

 

WSU holds certain
patents and technology. Licensee has delivered to WSU a request for the grant of a license to use such intellectual property rights
as described below.

 

WSU is willing to grant Licensee a license
to develop and use such intellectual property for the benefit of WSU and the public in accordance with the provisions of 35 U.S.C.
§§ 201-211 and the regulations promulgated thereunder ("Federal Patent Policy") and Licensee is willing to
acquire the right to use such intellectual property on the terms and conditions set forth below and subject to the provisions of
the Federal Patent Policy.

 

AGREEMENT:

 

NOW, THEREFORE, in consideration of the
premises and mutual promises and agreements hereinafter set forth, the parties hereto agree as follows:

 

1. DEFINITIONS.

 

1.1.   "Affiliate".
"Affiliate" means (i) any partnership, corporation, joint venture, association, trust, unincorporated organization or
entity directly or indirectly controlling, controlled by or under direct or indirect common control with Licensee, (ii) any partnership,
corporation, joint venture, association, trust, unincorporated organization or entity who is a direct or indirect beneficial holder
of at least 50% of any class of the outstanding capital stock of Licensee or an Affiliate (as defined in clause (i)) of Licensee.
It is understood that the characterization of any entity as an Affiliate shall be made at the time Licensee and such entity enter
into any sublicense agreement.

 

1.2.   "Biological
Materials". "Biological Materials" shall mean the biological materials as specifically described in Exhibit
B, as amended from time to time.

 

13. "FDA". "FDA"
shall mean the United States Food and Drug Administration, or its successor.

 

1.4. "Federal Patent Policy".
"Federal Patent Policy" shall mean 35 U.S.C. 200 et seq. and the regulations promulgated thereunder.

 

1.5. "First Commercial Sale".
"First Commercial Sale" shall mean, with respect to a Licensed Product, the first sale for consumption by the public
of a Licensed Product after registration has been granted by any applicable authority in any country.

 

1 -6. "Licensed Field".
" "Licensed Field" shall mean production of product(s) or services(s) for presymptomatic detection of ovarian cancer
utilizing microarrays on planar surfaces. Macroarrays, traditional ELISA, solution bead platforms, spinning disk and colored bead
fields of use are specifically excluded from this license.

 

1.7.   "Licensed
Patents". "Licensed Patents" shall mean (i) U.S. Patent Application Serial No. 11/816,471, filed on August 16,
2007 entitled "Neoepitope Detection of Disease using Protein Arrays"; (ii) any U.S. patent application filed as a continuation
or division of such application or, to the extent necessary to make, have made, use, sell, import or lease Licensed Products, any
continuation-in-part of such application (provided, such continuation-in-part relates directly to the Licensed Field and
development of which was sponsored by Licensee); (iii) any foreign counterpart to such U.S. application (including divisions, continuations
or continuations-in-part of such patent application that relate directly to the Licensed Field and development of which was sponsored
by Licensee); and (iv) any patents which issue from applications described in (i-iii). Licensed Patents are set forth in Exhibit
A attached hereto, which shall be amended from time to time to include patent applications or patents to be included as Licensed
Patents in accordance with this Agreement.

 

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LICENSE AGREEMENT

 

1.8.    "Licensed
Product(s)". "Licensed Product(s)" means any product(s), methods, services or processes that embody or utilize
any aspect of the Licensed Patents, Licensed Technology or Biological Materials or the manufacture, use, license or sale of which
(a) absent the licenses granted herein, would infringe any proprietary right of WSU in respect of the Licensed Patents, Licensed
Technology or Biological Materials or (b) the discovery, development, manufacture or use of which employs Licensed Technology,
Licensed Patents or Biological Materials.

 

1.9.    "Licensed
Technology". "Licensed Technology" means all technical information, including any specifications, methods, processes,
documentation and other data, information and know-how owned by WSU and in existence as of the Effective Date and necessary to
practice the inventions embodied in the Licensed Patents or Biological Materials. Licensed Technology is set forth in Exhibit C
attached hereto.

 

1.10.  "Net Revenue".
"Net Revenue" means gross revenue received by Licensee or any of its Affiliates, or any sublicensee hereunder from the
sale or use of Licensed Products less (i) amounts repaid or credited by reason of defects, returns, recalls, rejections
or allowances, (ii) sales taxes, excise taxes, value added taxes and customs duties, paid, absorbed or allowed, (iii) commissions
paid or actually allowed to independent brokers or agents, (iv) postage, delivery and shipping charges, and (v) trade and quantity
discounts actually allowed (and taken) as customary in the trade. Net Revenue shall not include revenue received by Licensee (or
any of its Affiliates) from transactions with an Affiliate, where the Licensed Product in question will be resold by the Affiliate;
provided, the revenue received by the Affiliate from resale of the Licensed Product is included in Net Revenue in accordance
with Section 3.2. Revenue received by Licensee (or any of its Affiliates) from transactions with an Affiliate, where the Licensed
Product in question is used by the Affiliate solely for such Affiliate's internal purposes shall be included in Net Revenue and
the price charged shall be at least the fair market value of such Licensed Product.

 

111. "Royalty Quarter".
"Royalty Quarter" means each January 1 through March 31, April 1 through June 30, July 1 through September 30 and October
1 through December 31 commencing on or after the Effective Date.

 

2. TITLE; LICENSE GRANT; RESERVATION
OF RIGHTS.

 

2.1.    Grant
of License. Subject to the terms and conditions of this Agreement, WSU hereby grants to Licensee, and Licensee hereby accepts
an exclusive, worldwide, royalty-bearing license, including the right to grant sublicenses, to Licensed Patents, Licensed Technology
and Biological Materials, to make, have made, use, lease, develop, produce, distribute, import, sell and have sold Licensed Products
in the Licensed Field.

 

2.2.    Sublicense
Agreements. Licensee may grant sublicenses of its right to make, use, distribute, import, lease, sublicense for the sole purpose
of marketing and/or distribution, and sell Licensed Products in the Licensed Field; provided Licensee shall (a) obtain WSU's
written consent to each sublicensee and each sublicense agreement (which consent shall not be unreasonably withheld or delayed);
(b) obtain each sublicensee's written agreement to be bound by the provisions of Sections 2.3, 2.4 (e-f), 3.2, 3.4, 3.5, 3.6, 3.8,
7, 8 and 9 of this Agreement; and (c) not be relieved of any of its obligations hereunder as a consequence of such sublicense(s).
Any sublicenses granted by Licensee under this Agreement shall provide for termination or assignment to WSU upon termination of
this Agreement. The royalties payable to WSU in respect to sublicenses are set forth in Sections 3.2 and 3.3. With regard to the
insurance requirements of Section 8, if such insurance is not available in sublicensee's jurisdiction, and demonstration has been
made to WSU's reasonable satisfaction that such is the case, then WSU shall exercise due consideration that the inability to buy
such insurance is not a reason to withhold consent to the sublicense.

 

2.3.    Proprietary
Rights Notices. Licensee shall mark all Licensed Products and their containers in accordance with the patent marking laws of
the jurisdiction in which such Licensed Products are manufactured, used or sold. At a minimum, all Licensed Products shall bear
a notice indicating that the product is the subject of a patent or pending application and identifying same. Licensee shall promptly
notify WSU in writing of any changes to patent markings on Licensed Products.

 

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LICENSE AGREEMENT

 

2.4.    Title;
Federal Rights, (a) This Agreement does not convey to Licensee any ownership rights in any Licensed Patents, Licensed Technology
or Biological Materials by implication, estoppel or otherwise*except for the rights expressly granted in this Section 2. Title
to the Licensed Patents, Licensed Technology and Biological Materials shall at all times remain vested in WSU and WSU retains the
right to grant licenses to the Licensed Patents, Licensed Technology and Biological Materials for other fields of use and to use
the Licensed Patents, Licensed Technology and Biological Materials for purposes in accordance with Section 2.5.

 

(b)   To
the extent that any Licensed Patent, Licensed Technology or Biological Materials has been wholly or partially funded by the federal
government or the state of Michigan, Licensee's rights are also subject to the Federal Patent Policy and applicable state of Michigan
obligations including but not limited to the federal government's nonexclusive, nontransferable, irrevocable, paid-up license to
practice or have practiced the Licensed Patents, Licensed Technology and Biological Materials for or on behalf of the United States
throughout the world.

 

(c)   WSU
hereby covenants that, if any of the Licensed Patents, Licensed Technology or Biological Materials is subject to the Federal Patent
Policy, WSU will disclose such Licensed Patent(s), Licensed Technology and Biological Materials to the government agency as required
by the Federal Patent Policy, will file all required elections to maintain title to the Licensed Patent(s), Licensed Technology
and Biological Materials and will otherwise use its reasonable efforts to obtain the entire right, title and interest in such Licensed
Patent(s), Licensed Technology and Biological Materials and seek maximum exclusive licensing rights and extensions thereof.

 

(d)   WSU
represents to Licensee that, to the best of its knowledge, it has disclosed to Licensee all agreements with any funding agency
or foundation that has provided support of any kind in the development of the Licensed Patents, Licensed Technology or Biological
Materials.

 

(e)   Licensee
shall comply with, and shall ensure that its sublicensees comply in all material respects with, all government statutes and regulations
that relate to Licensed Products, including but not limited to the Federal Patent Policy; the Food, Drug and Cosmetic Act of 1941,
as amended, and the regulations promulgated thereunder; and the Export Administration Act of 1979, as amended, and the regulations
promulgated thereunder.

 

(f)   Licensee
shall substantially manufacture Licensed Products in the United States when such units of Licensed Products will be sold in the
United States.

 

2.5.    Academic
Use. WSU shall retain the right to make, have made and use the Licensed Patents, Licensed Technology and Biological Materials
for its internal research, academic collaborative, teaching and educational purposes, including transfer of Biological Materials
to academic and other non-profit researchers.

 

2.6. Diligence. Licensee has represented
to WSU, to induce WSU to issue this license, that it will diligently pursue commercialization of Licensed Patents, Licensed Technology
and Biological Materials. WSU shall have the right to terminate this Agreement if it reasonably determines that Licensee is not
diligently utilizing the Licensed Patents, Licensed Technology and Biological Materials for the benefit of the public in accordance
with this Section 2.6. Licensee shall notify WSU in writing within thirty (30) days of the occurrence of each event listed in the
next sentence.

 

Such determination shall be made with reference
to objective criteria including:

(a)  within
three (3) months of the Effective Date, Licensee shall begin internal testing of a Licensed Product;

(b)  within
nine (9) months of the Effective Date, Licensee shall begin testing its first Licensed Product with third party evaluators;

(c)  within
eighteen (18) months of the Effective Date, Licensee shall apply to the FDA or other appropriate regulatory agency(ies) for approval
of a Licensed Product; and

 

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LICENSE AGREEMENT

 

(d)  introducing
Licensed Products to the market within six (6) months following receipt of necessary marketing approvals from the FDA and other
appropriate regulatory agencies.

 

3. FEES; ROYALTIES; RECORD KEEPING; REPORTING

 

3.1. Fees. Licensee shall be obligated
to pay WSU the indicated amounts for the following milestone events. These payments are not creditable against royalties or other
payments due WSU under this Agreement and relate solely to these milestone events. Licensee shall notify WSU in writing within
ten (10) days of the occurrence of the events described in (c) below that such event has occurred. All milestone payments due WSU
under this Section 3.1 shall be payable only in respect of the first occurrence of the respective milestones. Payments will be
made by delivery of a check, as provided below.

 

(a)    On
the Effective Date, Licensee shall pay to WSU the license issue fee of twenty thousand dollars ($20,000).

 

(b)    Licensee
shall deliver to WSU a check in the amount of $34,787.81 to cover patent costs and expenses in respect of the Licensed Patents
that exist on the Effective Date, such reimbursement to be received by WSU within sixty (60) days of Licensee's receipt of an invoice
for such amount (including copies of outside counsel's invoices).

 

(c)    Within
thirty (30) days after approval of the first Licensed Product by the FDA or another comparable regulatory agency, Licensee shall
pay WSU one hundred and twenty five thousand dollars ($125,000).

 

3.2. Royalties, (a) Not later than
forty-five (45) days following the close of a Royalty Quarter, Licensee shall pay to WSU royalties in respect of the most recent
Royalty Quarter then ended equal to (i) five percent (5%) of Net Revenue in respect of Licensed Products covered by, or the method
of use, manufacture or production of which embodies any aspect of any claim of any Licensed Patents and (ii) three and one-half
percent (3.5%) of Licensee's Net Revenue in respect of Licensed Products embodying any aspect of the Licensed Technology or Biological
Materials that do not also embody any claim of the Licensed Patents. Payments under clause (i) shall be due until the expiration
of the term of the last to expire of the Licensed Patents and payments under clause (ii) shall be due for not more than ten (10)
years following the date of the First Commercial Sale of a Licensed Product, unless this Agreement is extended pursuant to Section
6.1(b).

 

(b) Commencing with the calendar year
of 2011 and until the termination of this Agreement (the "Minimum Period"), Licensee shall pay WSU minimum annual royalties
under Section 3.2(a) (the "Minimum Amount") in accordance with the following schedule:

 

	Minimum Period	 	Minimum Amount	 
	2011-2012	 	$	50,000	 
	2013-2014	 	 	150,000	 
	2015 and each year thereafter	 	 	300,000	 

 

If the royalties calculated under Section 3.2(a) for any year
during the Minimum Period are less than the Minimum Amount for that year, Licensee shall pay WSU the difference between the actual
royalties paid pursuant to Section 3.2(a) and the Minimum Amount for such year. Such payment will be due within forty-five (45)
days following each December 31 during the Minimum Period.

 

3.3.    Sublicense
Fees, (a) Licensee shall pay WSU an amount equal to twenty-five percent (25%) of any fees or other consideration Licensee receives
from sublicensees in respect of Licensed Products, Licensed Technology, Licensed Patents and Biological Materials, excluding (i)
royalties; and (ii) fees paid to Licensee for research performed by Licensee after the Effective Date that is directly related
to the development of Licensed Products. Such payments shall be due and payable on the same date on which the report and royalty
payment are due for the Royalty Quarter in which such fees are received by Licensee, in accordance with the provisions of Section
3.4.

 

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LICENSE AGREEMENT

 

3.4.   Remittance;
Foreign Exchange, (a) Licensee shall make payments required under Sections 3.2 and 3.3 by check or wire transfer of
immediately available funds delivered to WSU at the address set forth below. All payments shall be stated and paid in U.S.
Dollars. Net Revenue received in currencies other than U.S. Dollars shall be converted into U.S. Dollars at the New York
Foreign Exchange Selling Rate as of the last business day of the Royalty Quarter in which such Net Revenue is received (as
published in The Wall Street Journal).

 

(b) In the event that any payment due
WSU under this Agreement is not made when due, the payment shall accrue interest beginning on the first day following the final
date on which such payment was due calculated at the annual rate equal to two percent (2%) plus the prime interest rate
quoted by Chase Bank on the date said payment is due, or on the date the payment is made, whichever is higher, the interest being
compounded on the last day of each Royalty Quarter; provided that in no event shall said annual rate exceed the maximum
legal interest rate under Michigan law. Such royalty payment when made shall be accompanied by ail interest so accrued. Said interest
and the payment and acceptance thereof shall not negate or waive the right of WSU to any other remedy, legal or equitable, to which
it may be entitled because of the delinquency of the payment.

 

3.5. Records. Licensee shall maintain
records (prepared in accordance with Generally Accepted Accounting Principles) sufficient to determine Net Revenue and payments
due under Sections 3.2 and 3.3 during the term of this Agreement and for a period of at least five (5) years following any termination
or expiration. Within forty-five (45) days following each Royalty Quarter during the term of this Agreement, Licensee shall provide
WSU with a report showing Net Revenue for the quarter, certified by the Chief Financial Officer of Licensee as accurate. Such reports
shall be submitted to WSU whether or not any Net Revenue has been received during such period.

 

Such report shall include the following information, segregated
by Licensed Product:

 

(1)   the
quantities of each Licensed Product that Licensee, and its sublicensees (including Affiliates) have sold in each country in which
such Licensed Product is sold;

(2)   the
billings thereon that comprise Net Revenue;

(3)   the
calculation of royalties thereon;

(4)   the
total royalties so computed and due WSU;

(5)   the
details of payments received by Licensee from sublicensees to which WSU is entitled a share as specified in Section 3.3;

(6)   the
calculation of fees due to WSU from Licensee as a share of sublicensing payments as specified in Section 3.3; and

(7)   the
amounts so computed and due WSU.

 

Upon the delivery of each report, Licensee shall pay to WSU
the amount of royalties and other fees required under this Agreement, if any, due for the period of such report. Upon delivery
of the report due for the period ending December 31 of each year, Licensee shall also report to WSU the aggregate royalties and
other fees due WSU for the preceding year.

 

3.6.    Audits.
WSU shall have the right to have Licensee's books and records audited by an independent accountant of WSU's choosing to ascertain
the accuracy of Licensee's reports. Such audits shall be scheduled within fifteen (15) days following delivery of notice by WSU
to Licensee during Licensee's normal business hours and shall be conducted in a manner that does not interfere unreasonably with
Licensee's business. In the event that any audit determines that the reported Net Revenue or payments due WSU was less than ninety-five
percent (95%) of actual Net Revenue or payments due WSU for the period in question, the cost of such audit shall be borne by Licensee
and the underpaid amount shall be immediately due and payable to WSU. In ail other events, the cost of such audit shall be borne
by WSU.

 

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LICENSE AGREEMENT

 

3.7.    Taxes.
All taxes and charges which may be imposed by any government taxing authority on the amounts paid by Licensee to WSU under this
Agreement shall be assumed by Licensee. In the event Licensee is required to withhold such taxes or charges from the amounts paid
to WSU hereunder and to pay the taxes or charges for the account of WSU, Licensee shall deliver to WSU copies of the receipts or
returns covering each such payment. In the event a waiver is available for the payment of any such tax as a result of WSU's status
as a non-profit organization, WSU agrees to consider, in its sole discretion, any reasonable request by Licensee to cooperate in
any efforts initiated by Licensee to obtain such a waiver. Licensee agrees to reimburse WSU for WSU's reasonable out of pocket
costs and expenses incurred in considering such requests and cooperating with such waiver process, including outside counsel fees,
if any.

 

3.8.    First
Commercial Sale. Licensee shall report to WSU in writing upon the First Commercial Sale of each Licensed Product, whether by
Licensee, an Affiliate or a sublicensee. Such report shall include, for each Licensed Product, the product name, product number
and Licensed Patent(s) marked pursuant to Section 2.3.

 

3.9.    Anti-Stacking.
If it is necessary for Licensee to take any license(s), in a given country, under valid third party patents, which would be infringed
by the sale, manufacture, use or import of Licensed Products in that country, then Licensee can deduct up to fifty percent (50%)
of the royalties otherwise due and payable in each Royalty Quarter under Section 3.2 (a) above for Net Revenue in that country,
until such time as Licensee has recovered an amount equal to fifty percent (50%) of the royalty paid to such third parties restricted
to that given quarter; provided that in no event shall the royalty thus payable by Licensee be reduced below the Minimum Amount.
This paragraph is not intended to imply an obligation upon WSU to reimburse Licensee for the above-described third-party royalties.
Licensee shall make an accounting to WSU of all such third-party royalties, and all resulting deductions from royalties otherwise
due and payable to WSU, as part of its reporting obligations under Section 3.5.

 

4. REPRESENTATIONS AND WARRANTIES.

 

4.1.    Corporate
Matters. WSU hereby represents and warrants to Licensee that: (a) it is a non-profit Michigan educational institution, and
has all requisite power and authority to execute, deliver and perform this Agreement and to consummate the transactions contemplated
hereby; (b) this Agreement has been duly authorized, executed and delivered by WSU, constitutes the legal, valid and binding obligation
of WSU and is enforceable against WSU in accordance with its terms, except to the extent such enforceability may be limited by
bankruptcy, reorganization, insolvency or similar laws of general applicability governing the enforcement of the rights of creditors
or by the general principles of equity (regardless of whether considered in a proceeding at law or in equity).

 

4.2.    Licensed
Patents; Licensed Technology; Biological Materials, (a) WSU REPRESENTS AND WARRANTS TO LICENSEE THAT TO THE BEST
OF WSU'S KNOWLEDGE AND WITHOUT INDEPENDENT INVESTIGATION, (i) WSU IS THE OWNER OF THE PATENT RIGHTS IN THE LICENSED
PATENTS FREE AND CLEAR OF ALL MORTGAGES, LIENS, PLEDGES, CHARGES OR OTHER ENCUMBRANCES AND HAS THE LICENSING RIGHTS THEREIN,
AND (ii) ANY PATENTS ISSUED IN RESPECT OF THE LICENSED PATENTS, LICENSED TECHNOLOGY AND BIOLOGICAL MATERIALS WILL,
WHEN ISSUED, BE FREE OF ANY RESTRICTIONS EXCEPT FOR ANY NONEXCLUSIVE RIGHTS HELD BY THE U.S. GOVERNMENT UNDER THE FEDERAL PATENT
POLICY OR THE STATE OF MICHIGAN AS A RESULT OF PREVIOUS OR PRESENT SPONSORSHIP.

 

(b)  WSU
MAKES NO EXPRESS OR IMPLIED WARRANTY INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTY OF MERCHANTABILITY OR ANY IMPLIED
WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO LICENSED PATENTS, LICENSED TECHNOLOGY OR BIOLOGICAL MATERIALS
AND HEREBY DISCLAIMS THE SAME.

 

(c)  WSU
MAKES NO EXPRESS OR IMPLIED WARRANTY THAT THE USE OR SALE OF PRODUCTS EMBODYING LICENSED PATENTS, LICENSED TECHNOLOGY OR
BIOLOGICAL MATERIALS WILL NOT INFRINGE PATENTS OR OTHER INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES AND HEREBY DISCLAIMS
THE SAME.

 

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LICENSE AGREEMENT

 

4.3.    Licensee
Matters. Licensee hereby represents and warrants to WSU that: (a) Licensee is a corporation duly organized and validly existing
under the laws of Nevada, and has all requisite power and authority to execute, deliver and perform this Agreement and to consummate
the transactions contemplated hereby; (b) this Agreement has been duly authorized, executed and delivered by Licensee, constitutes
the legal, valid and binding obligation of Licensee and is enforceable against Licensee in accordance with its terms, except to
the extent such enforceability may be limited by bankruptcy, reorganization, insolvency or similar laws of general applicability
governing the enforcement of the rights of creditors or by the general principles of equity (regardless of whether considered in
a proceeding at law or in equity).

 

5. PATENTS AND INFRINGEMENT.

 

5.1. Patent Prosecution; Expenses,
(a) WSU shall manage the preparation, filing, prosecution and maintenance of United States and foreign patent applications and
the maintenance of U.S. and foreign patents on Licensed Patents and the maintenance of its proprietary rights in Biological Materials.
WSU shall control all aspects of such preparation, filing, prosecution and maintenance. During the term of this Agreement, Licensee
shall be solely responsible for providing WSU and its patent counsel with the appropriate contact information for Licensee's receipt
of all patent and other intellectual property correspondence, including invoices for reimbursement of patent and other intellectual
property expenses, and Licensee shall notify WSU if Licensee believes it is not appropriately receiving such correspondence.

 

Notwithstanding the above, WSU shall not be obligated to pursue
foreign nationalization filings of Licensed Patents unless and until (i) Licensee expressly requests such filing(s) in writing;
and (ii) Licensee prepays estimated expenses associated with each requested foreign filing.

 

WSU shall request that patent counsel provide Licensee, simultaneously
with the provision thereof to WSU, with copies of all information it provides to WSU relating to the preparation, filing, prosecution
and maintenance of Licensed Patents or maintenance of WSU's proprietary rights in Biological Materials. Regarding the prosecution
of the Licensed Patents or Biological Materials, WSU shall, where possible, provide Licensee the opportunity to review and comment
on the action. Licensee shall have the right to strategize with WSU and its patent counsel to keep legal fees down; and it shall
have the right to audit (and discuss with patent counsel, if necessary) patent counsel's invoices for services it provides that
Licensee is obligated to reimburse WSU under this Section 5.

 

(b) Licensee shall be responsible for
all expenses incurred after the Effective Date associated with the preparation, filing, prosecution and maintenance of
Licensed Patents or maintaining WSU's proprietary rights in Biological Materials, including interferences and any prepayments
as provided in 5.1(a) above, the portion to be paid by Licensee being the quotient obtained by dividing the aggregate patent
expenses incurred by WSU by the sum of one plus the number of then prevailing additional licensees outside the Licensed
Field. Such expenses are not creditable against payments due to WSU under Section 3. WSU will provide Licensee with invoices
for such expenses, with the exception of any required prepayments for foreign filings, and Licensee shall pay such invoices
within thirty (30) days following receipt of same. In the event Licensee does not timely pay any such fees WSU may in its
sole discretion decline to advance funds for any patent- or other intellectual property-related expenses, and such action on
WSU's part shall not be considered to be a breach of any obligation imposed by this Agreement.

 

(c) WSU does not provide any warranty whatsoever
related to the services, actions or omissions of patent counsel, agents or law firms engaged to perform patenter other intellectual
property-related activities. Licensee expressly acknowledges that WSU cannot control whether a particular patent will issue or
proprietary protection is available in any specific country.

 

5.2.    Infringement.
Each of Licensee and WSU shall promptly inform the other in writing of any infringement of Licensed Patents or WSU's proprietary
rights in Biological Materials or Licensed Technology by a third party of which it has knowledge and shall provide the other with
any available information relating to such infringement.

 

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LICENSE AGREEMENT

 

5.3.    Enforcement,
(a) Licensee shall, with WSU's consent (which consent shall not be unreasonably withheld), have the first option to pursue any
enforcement or defense of the Licensed Patents or Biological Materials; provided that Licensee pays all costs and expenses
related to the same, keeps WSU informed of its progress, and provides WSU with reasonable notice of all proceedings relating to
same. At WSU's request, Licensee shall name WSU as a co-party in any such action and shall furnish WSU with copies of any documents
related to such proceedings. Licensee's costs in prosecuting such matters shall be subject to reimbursement in accordance with
Section 5.3(c). Licensee shall notify WSU of its decision to exercise its right to enforce Licensed Patents or WSU's proprietary
rights in Biological Materials within thirty (30) days following its discovery or receipt of notice of the alleged infringement.

 

(b)     If
Licensee does not (i) exercise its option to enforce or defend any Licensed Patent or Biological Materials; or (ii) within ninety
(90) days of commencing to prosecute any enforcement or defense action (1) has not persuaded the alleged infringer to desist, (2)
is not diligently pursuing an infringement action or diligently defending the validity or enforceability of the Licensed Patent
or Biological Materials at issue as determined by WSU in its reasonable discretion, or (3) has not provided WSU with evidence of
bona fide negotiations of an acceptable sublicense agreement with the alleged infringer, then WSU shall have the right to pursue
the alleged infringer or take control of any action initiated by Licensee at WSU's own expense, and to collect for its own use
all damages, profits, settlements and awards of whatever nature recoverable from such infringement, and Licensee shall not be entitled
to any recovery pursuant to Section 5.3(c). WSU may use the name of Licensee as party plaintiff for purposes of pursuing any alleged
infringer.

 

(c)     In
the event that Licensee undertakes the enforcement or defense of the Licensed Patents or Biological Materials in response to
a bona fide claim, Licensee may withhold up to fifty percent (50%) of the royalties otherwise thereafter due WSU under
Section 3.2 and apply the same toward reimbursement of its expenses, including reasonable attorney's fees in connection
therewith. In the event Licensee intends to exercise this clause in response to a claim, prior to the express threat of
litigation, it shall seek the prior written consent to such action by WSU, which consent shall not be unreasonably withheld.
Any recovery of damages by Licensee in any such suit shall be applied first in satisfaction of any unreimbursed expenses and
legal fees of Licensee relating to the suit or settlement thereof, and next toward reimbursement of WSU for any royalties
withheld and applied pursuant to the first sentence of this Section 5.3(c). Any remaining recoveries shall be used to
reimburse Licensee for lost sales and WSU for lost royalties on account of such lost sales. The balance thereafter remaining
from such recovery shall be divided among Licensee and WSU, with fifty percent (50%) payable to Licensee and fifty percent
(50%) payable to WSU. No settlement, or consent judgment or other voluntary final disposition of the suit may be entered into
without the consent of WSU, which consent shall not be unreasonably withheld.

 

(d)    Notwithstanding
the provisions of Section 5.3(a), in the event that a declaratory judgment action alleging invalidity or non-infringement of any
of the Licensed Patents is filed against Licensee or WSU, WSU, at its option, shall have the right, within thirty (30) days after
notification of same, to intervene and assume sole defense of the action at WSU's expense. In the event that WSU exercises its
rights under this Section 5.3(d), WSU may collect for its own use all damages, profits, settlements and awards of whatever nature
recoverable from such action, and Licensee shall not be entitled to any recovery pursuant to Section 5.3(c).

 

(e)    In
any infringement suit as either party may institute to enforce the Licensed Patents or Biological Materials or in any declaratory
judgment action alleging invalidity or non-infringement of any Licensed Patent brought against WSU or Licensee, the other party
shall, at the request and expense of the party initiating or defending the suit or action, cooperate in ail reasonable respects
and make reasonable requests to have its employees testify when requested and make available relevant records, papers, information,
specimens and the like.

 

6. TERM; TERMINATION.

 

6.1.    Term.
Unless sooner terminated in accordance with this Section 6, this Agreement shall remain in effect until (a) the expiration of the
term of the last to expire of the Licensed Patents or (b) for a Licensed Product described in 1.4(b), ten (10) years following
the First Commercial Sale of such Licensed Product, whichever is later, unless extended by mutual consent of WSU and Licensee.

 

    	- 10 -

    	 

    

 

LICENSE AGREEMENT

 

6.2.    Termination,
(a) Upon any material breach by Licensee of this Agreement, WSU shall have the right to terminate this Agreement and the rights
and license granted hereunder with thirty (30) days' notice to Licensee. Licensee shall have thirty (30) days after receipt of
actual notice of the breach to cure financial breaches; and it shall have sixty (60) days after receipt of such notice to cure
non-financial breaches, which cure period in the case of non-financial breaches can be extended upon mutual written consent of
the parties. Licensee's "material obligations" under this Agreement shall include its obligations under Sections 2, 3.1,
3.2, 3.3, 3.4, 3.5, 3.6, 5.1, 7, 8 and 9.

 

(b) Licensee shall have the right to terminate
this Agreement and the license granted it hereunder for any reason with one hundred twenty (120) days' notice to WSU.

 

6.3.    Effect
of Termination, (a) Upon termination of this Agreement for any reason, nothing herein shall be construed to release either
party of any obligation which matured prior to the effective date of such termination, and Licensee may, after the effective date
of such termination, complete Licensed Products in the process of manufacture at the time of such termination and sell same together
with Licensed Products in inventory for a period of six (6) months; provided that Licensee pays to WSU royalties as required
by Section 3.2 and submits reports as required by Section 3.5.

 

(b) The provisions of this Section 6 and
Sections 7 (solely with respect to claims made by third parties), 8 and 9 shall survive any termination of this Agreement.

 

6.4.    Sublicenses.
In the event the license granted to Licensee under Section 2 terminates for any reason, each of Licensee's sublicensees at such
time shall continue to have the rights and license set forth in their sublicense agreements; provided the terms of such
sublicense agreement have been consented to by WSU and such sublicensee agrees in writing that WSU is entitled to enforce such
provisions directly against such sublicensee.

 

7. INDEMNIFICATION.

 

7.1.    Indemnification
by Licensee. Licensee hereby agrees to indemnify, defend and hold WSU and its affiliates, trustees, officers, employees and
agents (collectively, the "WSU Indemnitees") harmless from, against and in respect of any and all damages, deficiencies,
actions, suits, proceedings, demands, assessments, judgments, claims, losses, costs, expenses, obligations and liabilities (including
costs of collection and reasonable attorneys' fees and expenses) (herein called "Loss(es)") arising from or related to
any (a) use by Licensee, or by any party acting on behalf of or under authorization from Licensee, of Licensed Technology, Licensed
Patents or Biological Materials; and (b) use, sale or other disposition by Licensee or by any party acting on behalf of or under
authorization from Licensee, of Licensed Products.

 

7.2.    Sublicensee
Indemnification. Licensee shall require its sublicensees to indemnify, defend and hold harmless WSU Indemnitees under the same
terms as stated in this Section 7.

 

7.3.    Third
Party Claims, (a) Promptly after the assertion by any third party of any claim against any WSU Indemnitees that, in the judgment
of WSU, may result in the incurrence by any WSU Indemnitees of Losses for which such WSU Indemnitees would be entitled to indemnification
hereunder, WSU shall deliver to Licensee written notice with respect to such claim, and Licensee may, at its option within thirty
(30) days after receipt of such notice, but not in any event after the settlement or compromise of such claim, assume the defense
(including settlement negotiations) of WSU Indemnitees against such claim (including the employment of counsel, who shall be satisfactory
to WSU, and the payment of expenses). Notwithstanding the foregoing, if WSU determines that there is a reasonable probability that
a claim may materially and adversely affect it, other than as a result of money payments required to be reimbursed by Licensee
under this Section 7, WSU shall have the right to defend, compromise or settle such claim or suit; provided, further,
that such settlement or compromise shall not, unless consented to in writing by Licensee, be relevant as to the liability of Licensee
to WSU Indemnitees.

 

    	- 11 -

    	 

    

 

(b)    If
Licensee participates in or assumes the defense of any claim asserted by a third party, the WSU Indemnitees, Licensee and its counsel
shall cooperate in the defense against, or compromise of, such asserted liability. The WSU Indemnitees shall have the right to
employ separate counsel in any such action or claim and to participate in the defense thereof, but the fees and expenses of such
counsel shall not be an expense of the Licensee unless (i) the Licensee shall have failed, within thirty (30) days after having
been notified in writing by WSU of the existence of such claim, to assume the defense of such claim or (ii) the employment of such
counsel has been specifically authorized by the Licensee. If there is a final judgment for the plaintiff in any such action, or
if there is a settlement of any such action effected with the consent of Licensee, Licensee shall indemnify and hold harmless the
WSU Indemnitees from and against any loss or liability by reason of judgment or settlement.

 

(c)    In
the event that Licensee shall decline to participate in or assume the defense of a claim asserted by a third party, prior to paying
or settling any claim against which Licensee is, or may be, obligated under this Section 7 to indemnify WSU Indemnitees, WSU shall
first provide Licensee with a copy of a final court judgment or decree holding WSU Indemnitees liable on such claim or, failing
such judgment or decree, the terms and conditions of the settlement or compromise of such claim. WSU's failure to supply such final
court judgment or decree or the terms and conditions of a settlement or compromise shall not relieve Licensee of any of its indemnification
obligations contained in this Section 7, except where, and solely to the extent that, such failure actually and materially prejudices
the rights of Licensee.

 

7.4. Indemnification by WSU. To
the extent permitted by applicable law, WSU hereby agrees to indemnify, defend and hold Licensee and its officers and employees
(collectively, the "Licensee Indemnitees") harmless from, against and in respect of any and all Losses arising from or
related to any breach by WSU of any representation or warranty expressly undertaken by WSU pursuant to this Agreement.

 

8. INSURANCE.

 

8.1. Insurance Coverage, (a) Beginning
at the time any Licensed Product is being clinically tested with human subjects or commercially distributed or sold, whichever
comes first, by Licensee, an Affiliate or by a sublicensee, Licensee shall at its sole cost and expense, procure and maintain insurance
under policies that shall name WSU as an additional insured.

 

(b)    Such
insurance shall provide minimum comprehensive general liability (including product liability) coverage in amounts not less than
two million dollars ($2,000,000) per incident and six million dollars ($6,000,000) annual aggregate. Such comprehensive general
liability insurance shall provide (i) product liability coverage and (ii) broad form contractual liability coverage for Licensee's
indemnification obligations under Section 7 of this Agreement.

 

(c)    Licensee
shall provide WSU with written evidence of such insurance upon request of WSU. Licensee shall provide WSU with written notice at
least fifteen (15) days prior to the cancellation, non-renewal or material change in such insurance; if Licensee does not obtain
replacement insurance providing comparable coverage within such fifteen (15) day period, WSU shall have the right to terminate
this Agreement effective at the end of such fifteen (15) day period without notice or any additional waiting periods.

 

(d)    Licensee
shall maintain such insurance beyond the expiration or termination of this Agreement during the period that any Licensed Product
is being commercially distributed by Licensee, an Affiliate or by a sublicensee. If such insurance is canceled, not renewed or
otherwise terminated, Licensee shall purchase a retroactive reporting endorsement.

 

(e)    Notwithstanding
the foregoing, no insurance limitation or deficiency in coverage shall operate to relieve Licensee of any indemnification obligations
set forth in Section 7 of this Agreement.

 

    	- 12 -

    	 

    

 

9. CONFIDENTIALITY.

 

9.1. Confidential Information. "Confidential
Information" shall mean any technical, scientific or business information furnished by one party hereto (the "Disclosing
Party") to the other party (the "Receiving Party") in connection with this Agreement. Receiving Party hereby agrees
to use Confidential Information solely for purposes contemplated hereunder and hereby agrees to provide access to Confidential
Information to its employees on a "need to know" basis. Receiving Party shall use reasonable efforts to protect Confidential
Information. Confidential Information shall not include information that: (a) is generally available in the public domain or thereafter
becomes available to the public through no act of the Receiving Party; or (b) was discovered independently by the Receiving Party
who had no access to the information supplied by the Disclosing Party under this Agreement; or (c) was made available to the Receiving
Party as a matter of lawful right by a third party who had no obligations of confidentiality to the Disclosing Party; or (d) is
required to be disclosed under law or court order. The obligations of confidentiality of this Section 9.1 shall survive the termination
or expiration of this Agreement for a period of three (3) years. The existence of this Agreement and the general terms and conditions
of this Agreement (including but not limited to the identity of the Licensee) shall not be considered Confidential Information.

 

9.2.   Publication.
Licensee recognizes that under WSU policy, the results of WSU research involving Licensed Patents, Licensed Technology and Biological
Materials must be available for publication and agrees that WSU researchers shall be permitted to present at symposia and professional
meetings, and to publish in journals, theses or dissertations, or otherwise of their own choosing, research methods and results.
WSU shall acknowledge Licensee's scientific contributions as appropriate in publications in accordance with the standards and customs
of academic publications.

 

9.3.   Biological
Materials. It is acknowledged that Biological Materials are confidential material of WSU and that unauthorized disclosure or
transfer to third parties may result in financial detriment to WSU. Licensee agrees to use its best efforts to limit use of Biological
Materials for the purpose of developing, manufacturing and commercializing Licensed Products in accordance with the terms of this
Agreement, to treat Biological Materials as confidential, and to limit access to Biological Materials to those of its employees
reasonably requiring same for the purpose of developing, manufacturing and commercialization of Licensed Products, who further
are obligated in writing to treat Biological Materials in a manner and to an equivalent extent as provided herein with regard to
confidentiality, use and non-disclosure.

 

10. MISCELLANEOUS.

 

10.1.    Relationship
of Parties. For the purposes of this Agreement, each party shall be, and shall be deemed to be, an independent contractor and
not an agent or employee of the other party. Neither party shall have authority to make any statements, representations or commitments
of any kind, or to take any action which shall be binding on the other party, except as may be explicitly provided for herein or
authorized in writing.

 

10.2.    Publicity.
Licensee and WSU shall consult with each other before issuing any press release or otherwise making any public statements with
respect to this Agreement and the transactions contemplated hereby and shall not issue any such press release or make any such
public statement except as they may mutually agree and except as required under Federal securities laws or other laws applicable
to Licensee or WSU. Licensee shall not use the name of WSU nor that of any WSU staff member, employee or student, or any adaptation
thereof in any advertising, promotional or sales literature, or in any other form of publicity without prior written consent obtained
from WSU in each case, and from the individual staff member, employee or student if such individual's name is so used. Each party
has the right to disclose information required to be disclosed under applicable law or by a governmental order, decree, regulation
or rule.

 

    	- 13 -

    	 

    

 

10.3. Notices. Unless
otherwise provided herein, any notice, report, payment or document to be given by one party to the other shall be in writing and
shall be deemed cjven when delivered personally or mailed by certified or registered mail, postage prepaid (such mailed notice
to be effective on the date which is three (3) business days after the date of mailing), or sent by telefax (such notice sent by
telefax to be effective when sent, if confirmed by certified or registered mail as aforesaid) as follows:

 

	If to WSU, addressed to:	 	Wayne State University
	 	 	Technology Commercialization Attention: 
	 	 	WSU File No. 04-699 440 Burroughs, Suite 201 Detroit, 
	 	 	Ml. 48202 Telephone No. (313)577-5541 Telefax No.
	 	 	(313)577-2814
	 	 	 
	If to Licensee, addressed to:	 	Arrayit Diagnostics, Inc.
	 	 	12000 Westheimer Rd Ste 340 Houston, TX 77077-6531
	 	 	Attention: John Howell Telephone No.
	 	 	(281)600-6000 Telefax No. (713)462-1980
	 	 	 
	With a copy to:	 	Sonfield & Sonfield 770 South Post Oak Lane Houston, Texas
	(which shall not constitute	 	77056-1937 Attention: Robert L. Sonfield, Jr., Esq. Telephone
	notice)	 	(713) 877-8333 Facsimile: (713)877-1547

 

or to such other place as any
party may designate as to itself by written notice to the other party.

 

10.4. Entire Agreement: Amendments.
This Agreement, along with the Sponsored Research Agreement in place between the parties effective December 7, 2009, constitutes
the entire agreement among the parties pertaining to the subject matter hereof and supersedes all prior agreements, understandings,
negotiations and discussions, whether oral or written, of the parties. No supplement,

modification, amendment or waiver of this
Agreement shall be binding unless executed in writing by the party to be bound thereby.

 

10.5.    Waivers.
The waiver by Licensee or WSU of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any
subsequent breach. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other
provision hereof (whether or not similar), nor shall such waiver constitute a continuing waiver unless otherwise expressly provided.

 

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

 

10.7.    Severability.
In the event that any one or more of the provisions contained in this Agreement or in any other agreement or instrument referred
to herein, shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision of this Agreement or any other such agreement or instrument and such invalid
or unenforceable provision shall be construed by limiting it so as to be valid and enforceable to the maximum extent compatible
with, and possible under, applicable law.

 

10.8.    Transfer,
etc. Neither party may assign this Agreement or any of such party's rights and obligations hereunder to any third party without
the prior written consent of the other party, which consent shall not be unreasonably withheld. Either party may assign this Agreement,
and its rights and obligations hereunder, to any third party that purchases substantially all of the assigning party's stock or
assets relating to that portion of such party's business that is related to the subject of this Agreement without approval of the
other party, however, the assigning party shall provide the other party prior written notification of the assignment. Any attempted
assignment, delegation or transfer in contravention of this Agreement shall be null and void.

 

10.9.    Binding
Effect, Benefits. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective
successors and permitted assigns; nothing in this Agreement, expressed or implied, is intended to confer on any person other than
the parties hereto or, as applicable, their respective successors and permitted assigns, any rights, remedies, obligations or liabilities
under or by reason of this Agreement.

 

    	- 14 -

    	 

    

 

10.10.    Headings.
The Section headings are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning
or interpretation of this Agreement.

 

10.11.    Choice
of Law. This Agreement shall be governed by and construed in accordance with domestic substantive laws of The State of Michigan,
without regard for any choice or conflict of laws rule or principle that would result in the application of the

 

Exhibit A

 

Licensed Patents

 

WSU File No. 04-699

Title: Neoepitope Detection of Disease
Using Protein Arrays

 

	Country	 	Type	 	Serial No.	 	Filing Date	 	Patent No.	 	Issue Date	 	Status
	USA	 	L Utility^	 	11/060,862	 	2/17/05	 	 	 	 	 	converted
	PCT	 	PCT	 	PCT/US06/05830	 	2/17/06	 	 	 	 	 	converted
	USA	 	Utility	 	11/'816,471	 	8/16/2007	 	 	 	 	 	pending

 

Exhibit B

 

Biological Materials

 

63/65 unique clones from
Cancer Research 2006 paper 166 clones

 

from neural network (unpublished)

 

These two sets overlap by 23 clones
of which 8 are epitopes and 15 are mimotopes. The 130/143 are the unique clones not overlapping
with the set of 65 have been sequenced and the duplicates among them are still being determined. The list will be much shorter
than 143. This 143 set has 5 unique epitopes that belong exclusively to 166 set Therefore,
166 set has 8+5=13 total epitopes).

 

Exhibit C

 

Licensed Technology

 

Sequence Information associated with the
Biological Materials described in Exhibit B

 

    	- 15 -WAYNE STATE UNIVERSITY-SPONSORED RESEARCH
AGREEMENT

 

    	 

    	 

    
 

 

Wayne

StatE 

university

 

SPONSORED PROGRAM ADMINISTRATION

 

December 11,2009

 

John Howell

Arrayit Diagnostics, Inc.

12000 Westheimer Rd Ste 340

Houston, TX 77077-6531

(281)600-6000

 

		Re:	Sponsored Research Agreement between Arrayit Diagnostics,
Inc. and Wayne State University

 

Dear Mr. Howell:

 

Enclosed please find one (1) fully executed
original of the above referenced agreement.

 

If you have any questions or need additional
information, feel free to contact me at (313) 577-3726

 

Patty Yuhas Kieleszewski

 

Manager, Contract Administration

 

SPONSORED RESEARCH AGREEMENT

 

This Agreement is entered into on this seventh day of December,
2009 (the "Effective Date") by and between Arrayit Diagnostics, Inc., whose principal place of business is located at
12000 Westheimer Road, Suite 340 Houston, TX 77077 (hereinafter referred to as "SPONSOR"), and Wayne State University,
whose business address is 5057 Woodward, Suite 13201, Detroit, MI 48202 (hereinafter referred to as "WSU").

 

WITNESSETH THAT:

 

WHEREAS SPONSOR desires to provide WSU with funding for
purposes of conducting the research described in Attachment A attached hereto (the "Program"); and

 

WHEREAS WSU desires to receive funding for purposes of
conducting the Program in a manner consistent with its status as a non-profit, tax-exempt institution;

 

NOW THEREFORE, the parties hereto mutually agree to the
following:

 

1.           EMPLOYMENT OF CONTRACTOR

 

SPONSOR agrees to engage WSU as an independent contractor to
render services needed to meet objectives specified in the Program. WSU shall commence the performance of the Program within thirty
(30) days after the Effective Date. WSU shall use reasonable efforts to perform the Program consistent with the terms of this Agreement.
The Program will be conducted by the principal investigator identified in this paragraph ("Principal Investigator").
The Principal Investigator will keep and maintain records containing laboratory data generated in the course of the Program in
accordance with highest scientific standards of record keeping. The Program may be modified by mutual consent. SPONSOR shall have
the right to review the data developed in the course of the performance of the Program on reasonable notice. At the conclusion
of the research provided for herein, WSU shall provide SPONSOR with a copy of all data and other relevant information and reports
generated by or under the guidance of the Principal Investigator regarding the Program. Sponsor shall treat such data, information
and reports as confidential to WSU until published as provided in Section 9. The Principal Investigator shall be Michael Tainsky.

 

    	2

    	 

    

 

2.           SCOPE OF SERVICES TO BE PROVIDED BY WSU

 

WSU, through its own resources, will provide
the services described in Attachment A, incorporated by reference and made a part of this Agreement.

 

3.           PERIOD OF PERFORMANCE; TERM

 

This Agreement shall take effect as of the Effective Date and
shall remain in effect for a term of six (6) months or until the collaboration described in Attachment A has been completed, whichever
is later, unless sooner terminated in accordance with Section 6.

 

4.           COMPENSATION

 

SPONSOR shall provide to WSU funds in the
amount of US$327,354 for the Program according to the schedule set forth in Section 5 below.

 

5.           METHOD OF PAYMENT

 

Invoices are to be submitted on a monthly basis. Two (2) copies
of all invoices, detailing current charges and total-to-date charges, should be sent to SPONSOR at the address listed in Section
11 below. . The final invoice, clearly marked FINAL, must be submitted within 90 days after the expiration date of this contract.
If a purchase order is issued for billing purposes, it shall state on its face "FOR BILLING PURPOSES ONLY." The
terms and conditions of this contract shall supersede the terms and conditions of the purchase order

 

6.           TERMINATION

 

Either party may terminate this Agreement at any time upon thirty
(30) days prior written notice to the other party in the event of a material breach by the other party unless the other party cures
such default prior to the expiration of thirty (30) days for breaches of monetary obligations. For non-financial breaches, the
cure period shall be sixty (60) days, which may be extended upon mutual written agreement of the parties. For purposes of this
Section 6, WSU's "material obligations" shall include those set forth in Sections 1, 2, 8, 9 and 10. SPONSOR'S "material
obligations" shall include its obligations under Sections 4, 5, and 10. Upon termination of this Agreement for any reason,
nothing herein shall be construed to release either party of any obligation which matured prior to the effective date of such termination.
The provisions of Sections 8, 9, 10, 12, 13 and 14 shall survive termination of this Agreement.

 

7.           COMPLIANCE WITH CIVIL RIGHTS AND OTHER LAWS

 

The parties entering into this Agreement shall not discriminate
against an employee or applicant for employment with respect to hire, tenure, terms, conditions or privileges of employment because
of race, color, religion, national origin, age, sex, height, weight, or marital status, or because of handicap except where there
exists a "bona fide occupational qualification." The parties shall comply with the provisions of Title VI of the Civil
Rights Acts of 1964, as amended. WSU shall conduct the Program in accordance with applicable NIH guidelines, with all other federal
and state laws and regulations governing the conduct of research and other acts, and with all applicable scientific and ethical
codes of conduct.

 

8.           CONFIDENTIALITY

 

"SPONSOR Confidential Information" is defined as information
and material that is regarded by SPONSOR as confidential and proprietary to SPONSOR and received from SPONSOR, and which is designated
as confidential or which by its nature may reasonably be considered to be confidential. WSU shall limit access the SPONSOR Confidential
Information to those of its employees with a need to have access to such SPONSOR Confidential Information. WSU shall not disclose
SPONSOR Confidential Information to any third party and shall use SPONSOR Confidential Information solely for the purpose of conducting
the Program. WSU's obligations under this Section 8 shall be limited to a period of five (5) years from receipt of SPONSOR Confidential
Information. WSU shall not have any obligation of confidentiality with respect to any SPONSOR Confidential Information that:

 

    	3

    	 

    

 

		1.	is generally available to the public through no fault of WSU at the time of disclosure by SPONSOR or subsequent to such disclosure;
or

 

		2.	was already in WSU's possession prior to receipt from SPONSOR and was not subject to a confidentiality agreement; or

 

		3.	is properly obtained by WSU from a third party which has the lawful right to disclose such information to WSU and is not under
a confidentiality obligation to SPONSOR; or
	 	 	 

		4.	is not identified as proprietary and provided in written form at the time of disclosure or within thirty (30) days of disclosure
in the case of oral or visual disclosures; or

 

5.          is required to be disclosed
by law or legal process.

 

9.           PUBLICATION

 

WSU shall have the right to publish information developed in
the course of the performance of the Program. At least thirty (30) days prior to submitting a manuscript for publication or the
making of any other public disclosure, WSU shall provide SPONSOR with a draft of the manuscript or a summary of the intended disclosure.
Authorship of any manuscript shall be established in accordance with academic publication standards and customs. SPONSOR shall
have the right to determine if and how its name is referenced in the publication. SPONSOR will advise WSU within twenty-five (25)
days of receipt of such draft manuscript or summary of any potential adverse consequences of: (i) disclosure of information that
will result in a loss of SPONSOR'S patent rights in Inventions or Joint Inventions (defined below) or (ii) disclosure of
SPONSOR Confidential Information.

 

Anything to the contrary herein notwithstanding, each party
has the right to disclose information required to be disclosed under applicable law or by a governmental order, decree, regulation
or rule.

 

If SPONSOR informs WSU that it is desirable to file patent applications
covering Inventions or Joint Inventions, WSU will postpone publication or disclosure for not more than sixty (60) days so that
patent applications may be filed. If SPONSOR informs WSU that the manuscript or disclosure contains SPONSOR Confidential Information,
Principal Investigator shall delete such information.

 

10.         PATENT RIGHTS

 

(a)          WSU will retain ownership of any and all inventions,
discoveries, know-how, techniques, and methodologies arising out of work being conducted under this Agreement which are conceived
of, created, discovered, developed, invented or reduced to practice by one or more employees, technicians, scientists, students
or post doctoral fellows of WSU at any time in the course of the performance of the Program ("Inventions"). If an invention
is made jointly by one or more employees, technicians, scientists, students or post doctoral fellows of WSU and one or more consultants
or employees of SPONSOR at any time in the course of the performance of the Program ("Joint Invention"), it shall be
jointly owned by SPONSOR and WSU. Inventorship shall be determined in accordance with U.S. patent law.

 

Ownership of Sponsor Technology shall remain with SPONSOR and
shall not be subject to this Agreement. For purposes of this Agreement "Sponsor Technology" shall mean all proprietary
rights relating to any discoveries, inventions, know-how, trade secrets, techniques, methodologies, modifications, or improvements
that are conceived, discovered, invented, developed, created or reduced to practice solely by employees of SPONSOR at any time
prior to the Effective Date or during the term of this Agreement.

 

(b)          WSU shall have the right to have prepared and filed in
the name of WSU, or WSU and SPONSOR in the case Joint Inventions, the necessary papers for obtaining patent protection in any and
all countries of the world on Inventions and Joint Inventions which SPONSOR determines are of sufficient interest to merit such
filing. SPONSOR agrees that it will have caused to be signed by all SPONSOR employees concerned all documents necessary to obtain
such patent protection for Joint Inventions and that SPONSOR will do what is reasonably necessary to assist WSU in obtaining and
maintaining such patent rights at the request and expense of SPONSOR.

 

(c)           Subject to SPONSOR'S payment of expenses for patent application(s)
covering any Inventions or Joint Inventions, SPONSOR will be given an exclusive option to acquire an exclusive, royalty-bearing
license to any Inventions or exclusive rights to WSU's interest in any Joint Inventions and any patents associated therewith. WSU
shall notify SPONSOR of any such Inventions or Joint Inventions, and SPONSOR shall have sixty (60) days after such notice to exercise
its option. SPONSOR and WSU agree to enter into good faith discussions to determine whether an Invention or Joint Invention (i)
is already included in the definition of Licensed Patents in the license agreement in place between the parties effective December
7, 2009 ("License Agreement") or (ii) shall be included in the definition of Licensed Patents, Licensed Technology
and/or Biological Materials (as appropriate) in the License Agreement. If the Invention or Joint Invention is to be included in
the License Agreement, the parties shall amend the License Agreement as provided therein and the terms and conditions of the License
Agreement shall apply.

 

    	4

    	 

    

 

If the parties agree that a separate license agreement should
be negotiated for an Invention or Joint Invention, the terms of such exclusive license shall be negotiated in good faith within
four (4) months from the time SPONSOR exercises its option covering any such Invention or Joint Invention.

 

If SPONSOR notifies WSU that it does not wish to pay the expenses
in respect of any Invention(s) or Joint Invention(s), SPONSOR shall relinquish all interests in such Invention(s) or Joint Invention(s),
and WSU may file applications for protection of such Invention(s) or Joint Invention(s) at its sole expense. If (i) SPONSOR does
not exercise its rights with respect to any Invention or WSU's rights in any Joint Invention or (ii) the parties cannot agree on
a license, WSU may license the Invention or its rights in Joint Invention to third parties; provided, that in cases covered
by (ii) and for a period of one (1) year following the termination of this Agreement, such license shall be on terms no more favorable
(as a whole) to the third party unless such more favorable terms are first offered to SPONSOR.

 

11. NOTICES

 

Unless otherwise provided herein, any notice, report, payment
or document to be given by one party to the other shall be in writing and shall be deemed given when delivered personally or mailed
by certified or registered mail, postage prepaid, and effective on the date which is three (3) business days after the date of
mailing, or sent by telefax (such notice sent by telefax to be effective when sent, if confirmed by certified or registered mail
as aforesaid) as follows:

 

If to WSU, addressed to:

 

Senior Director for Sponsored
Program Administration

Wayne State University

5057 Woodward, Suite 13201

Detroit, MI 48202

Telephone No.: (313) 577-3726

Fax No.: (313) 577-5055

 

	If to Sponsor, addressed to:	Arrayit Diagnostics, Inc.
	 	12000 Westheimer Rd Ste 

340 Houston, TX 77077-

6531 Attention: John 

Howell Telephone No. 

(281)600-6000 Telefax No. 

(713)462-1980

 

	With a copy to:	Sonfield & Sonfield
	(which shall not constitute	770 South Post Oak Lane 
	notice)	Houston, Texas 77056-1937
	 	Attention: Robert L. Sonfield, Jr., Esq.
	 	Telephone (713) 877-8333
	 	Facsimile: (713)877-1547

 

or to such other place as any party may designate as to itself
by written notice to the other party.

 

12.          TECHNOLOGY

 

(a)  THIS IS AN AGREEMENT FOR SERVICES AND NOT FOR
PRODUCTS. WSU MAKES NO EXPRESS OR IMPLIED WARRANTIES INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY
OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO INVENTIONS, JOINT INVENTIONS AND OTHER TECHNOLOGY THAT ARE DEVELOPED
IN COURSE OF THE PERFORMANCE OF THE PROGRAM AND HEREBY DISCLAIMS THE SAME.

 

    	5

    	 

    

 

(b)  WSU MAKES NO EXPRESS OR IMPLIED WARRANTIES THAT THE
USE OR SALE OF PRODUCTS EMBODYING INVENTIONS, JOINT INVENTIONS AND TECHNOLOGY DEVELOPED IN THE COURSE OF THE
PERFORMANCE OF THE PROGRAM WILL NOT INFRINGE INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES AND HEREBY DISCLAIMS THE
SAME.

 

13.          LIMITATION OF LIABILITY

 

Neither party shall be liable to the other for damages of any
kind relative to termination of this Agreement in accordance with Section 6, even if advised of the possibility of such damages.
Neither party shall be liable to the other party for any indirect, incidental, special or consequential damages arising out of
this Agreement, however caused, under any theory of liability.

 

14.          PUBLICITY

 

WSU and SPONSOR will be given an opportunity to approve in writing
any use of its (or its employees') names in publicity.

 

15.          ENTIRE AGREEMENT; AMENDMENTS

 

This Agreement, along with the License Agreement, constitutes
the entire agreement between the parties pertaining to the subject matter hereof and supersedes all prior agreements, understandings,
negotiations and discussions, whether oral or written, of the parties. No supplement, modification, amendment or waiver of this
Agreement shall be binding unless executed in writing by the party to be bound thereby.

 

16.          WAIVERS

 

The waiver by SPONSOR or WSU of a breach of any provision of
this Agreement shall not operate or be construed as a waiver of any subsequent breach. No waiver of any of the provisions of this
Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar), nor shall such waiver
constitute a continuing waiver unless otherwise expressly provided.

 

17.          CHOICE OF LAW

 

This Agreement shall be governed by and
construed in accordance with the domestic substantive laws of the State of Michigan.

 

18.          GRANT OF RESEARCH LICENSE

 

SPONSOR hereby grants WSU a nonexclusive,
nontransferable, royalty-free license to use SPONSOR'S technology and SPONSOR Confidential Information solely for purposes of conducting
the Program.

 

IN WITNESS WHEREOF, the parties
have executed this Agreement by signature of their duly authorized representative.

 

	WAYNE STATE UNIVERSITY	 	  ARRAYIT DIAGNOSTIC, INC.
	 	 	 
	SIGNED:	/s/ Gail L. Ryan	 	SIGNED:	/s/ John Howell
	 	Gail L.Ryan	 	 	John Howell
	 	Senior Director	 	 	President
	 	Sponsored Program Administration	 	 
	 	 	 
	Date:	12/10/09	 	Date:	12-4-09

 

FORM APPROVED

 12/9/09

OFFICE OF THE

GENERAL COUNSEL

ATTACHMENT A Research

Program and Projected Costs

 

    	6

    	 

    

 

Arrayit-Tainsky Lab Collaboration

Planar Arrays from Arrayit for the Early Detection of Ovarian
Cancer

 

A,          Antigens to be used:

 

63/65 unique clones from Cancer Research 2006 paper;
plus 166 clones from neural network (unpublished). These two sets overlap by 23 clones of which 8 are epitopes and 15 are
mimotopes. The 130/143 are the unique clones not overlapping with the set of 65 have been sequenced and the
duplicates among them are still being determined. The list will be much shorter than 143. This 143 set has
5 unique epitopes that belong exclusively to 166 set. Therefore, 166 set has 8+5=13 total epitopes.

 

Cost of the preparation of phage clones for microarrays and
aliquoting into 384-well plates: $5000

 

For Tasks 3 and 4: Commercially available
overexpressed proteins will be added to the antigens to be interrogated. These overexpressed proteins were identified through expensive
literature searching of ovarian cancers.

The estimated costs of purchasing 50 proteins shown to be
overexpressed in OVCA is about $40,000.

 

B.          Research Plan

Task l.Test antigen clones on
Arrayit microarrays for variation and reproducibility.

Sera will be derived from 3 Stage
I patients, 3 late Stage patients, 3 controls who have been followed for 5 years or more. Microarrays will
be immunoassayed in duplicate each day for 4 days. A total of 72 microarrays will be required for this Task.

Quantitation of each microarray will
be performed at KCI/WSU and at Arrayit. Correlation coefficients and coefficients of variation will be calculated at each site.

>          MILESTONE:
A coefficient of variation of less then 15% and a correlation coefficient of greater than 0.9 will indicate that the microarrays
are of sufficient quality to continue on to Task 2.

 

Task 2. Perform tests of microarrays
of 45 each from early and late stage OVCA, benign gynecological diseases, and healthy subjects.

Sera will be derived from 45 I
patients, 45 late Stage patients, 45 benign and 45 healthy controls. A total of 180 microarrays will be required
for this Task. Quantitation of each microarray will be performed at KCI/WSU and at Arrayit.

>          MILESTONE:
Standard cross-validation, performed at each site, KCI/WSU and at Arrayit with a sensitivity of >80% and a specificity of >90%
for OVCA as compared to benign or healthy women's sera will indicate sufficient usefulness of the biomarkers to continue onto Tasks
3 and 4.

 

Costs for Tasks 1 and 2:

Personnel:

Lab: 2-FTE 5 weeks: $26,211

Biostatistics 1-Senior Statistician 1 week: $5250

Lab Supplies: $2000 (plus $5000 for Task 1 and
cost of 50 proteins)

Fedex Processed Microarrays to Arrayit: 14 shipments
@ $44=$644

Equipment service/maintenance contracts: $1000

Total: $80,105

Task 3. Validate the markers on larger sample
sets.

a.          Validation set 1: Sera will
be derived from 200 Stage I patients, 300 late Stage patients, 300 controls who have been followed for 5 years or more.

b.          Validation set 2: Sera
will be studied from 100 women from high-risk families 10 of whom developed OVCA. These sera are not currently on hand
but can be acquired from two collaborators.

c.          Validation set 3: Sera derived
prospectively from 100 women who developed OVCA in the WHI serum set will also be studied. Two hundred women from that set
who did not develop cancer will be used as controls. These sera are not currently on hand but can be appliedfor if the diagnostic
system passes a preliminary test on some blinded sera from WHI which may require additional funding depending on their sample size.

 

Costs for Task 3: 

Personnel:

Lab: 2-FTE 20 weeks: 853,753

Lab Supplies: S8000

Fedex Processed Microarrays to Arrayit: 80 shipments
@ $44=$3680 Biostatistics

1-Senior Statistician 4 weeks: $21,000 Equipment service/maintenance contracts:

$4000 Total: $90,433

 

    	7

    	 

    

 

Task 4. Identify those epitope clones
that react with sera from people with other cancers or benign medical conditions.

a.          Validation set 4: Identify
those epitope markers that cross-react with other cancers. Use at least 30 sera from each 12 other types of cancer (360). Demonstrate
that the assay does not have a significant false positive rate when assaying sera from people with other cancers.

b.          Validation set 5: Identify
those epitope markers that cross-react with 100 patients with nonmalignant GYN diseases. Demonstrate that the assay does
not mistakenly identify nonmalignant gynecological conditions as cancer, which is a commonly seen problem with other such tests.

c.          Validation set 6: Identify
those epitope markers that cross-react with patients with autoimmune diseases. We will eliminate any epitope markers that react
with the IgG molecules found in the sera of 100 autoimmune patients.

 

Costs for Task 4: 

Personnel:

 

Lab: 2-FTE 10 weeks: $26,487

Lab Supplies: $4000

Fedex Processed Microarrays to Arrayit: 40 shipments
@ $44=$1840 Biostatistics

1-Senior Statistician 2 week: $10,500 Equipment service/maintenance contracts:

$2000 Total: $44,827

 

Direct Costs Total: $215,364
52% 

Indirect Costs Total: $111,989 Costs 

Total: $327,354

 

    	8

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