Document:

Exhibit
        10.2

      

       

      SERVICES
        AGREEMENT

      

      This
        Services Agreement (the “Agreement”) is entered into this 7th
        day of
        September, 2007 between Mobius Risk Group, LLC; a Texas Limited Liability
        Company having its principal place of business at Three Riverway, Suite 1700,
        Houston, Texas, 77056 (“Mobius”) and Medical Discoveries, Inc. (the “Company”);
        a Utah Corporation having its principal place of business at 1338 South Foothill
        Drive # 266, Salt Lake City, Utah 84108.

      

      WHEREAS
        the Company desires obtaining certain professional services more particularly
        described herein from Mobius and, to this end, engaging the services of
        Mobius;

      

      AND
        WHEREAS the parties seek to enter into a formal Services Agreement which
        will
        include final terms and conditions set forth in a definitive
        agreement;

      

      AND
        WHEREAS the parties set forth here in writing the basis of their relationship
        to
        clearly affect the supply and purchase of such services;

      

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

      

      Scope
        of Work

      

      The
        Company is currently engaged in and developing a business to grow, produce,
        manufacture, and sell seed oils; including but not necessarily limited to
        seed
        oil produced from the seed of the Jatropha plant (Jatropha
        Curcas),
        for the
        purpose of providing feedstock oil intended for the production of methyl
        ester,
        otherwise known as biodiesel, as either a fuel or industrial solvent; along
        with
        other related byproduct commodities including seed meal and plant-based
        biomass.

      

      In
        support of the Company’s stated objectives, Mobius will perform the following
        tasks:

      

      
        
          
            	1.	
                    Trait
                      Selection & Propagation Research Program.
                      On behalf of the Company, Mobius will manage and supervise
                      a research and
                      development (R&D) program contracted by the Company and conducted by
                      the University of Texas Pan American (UTPA) regarding location,
                      characterization, and optimal economic propagation of the Jatropha
                      Curcas
                      species. The research and development program will be aimed
                      at achieving
                      the following tasks:

                  

          

        

      

      
        
          
            	
                  	a.	
                    Location
                      of native Mexican, Caribbean & Central American stands of Jatropha for
                      the purpose of harvesting and collecting seeds and stems for
                      R&D and
                      bulk collection
                      purposes,

                  

          

        

      

      
        
          
            	
                  	
                    b.

                  	
                    Identification
                      of national and international 3rd-party
                      sources of Jatropha seed & stem samples and the acquisition of said
                      samples for R&D and bulk collection
                      purposes,

                  

            
              
                
                  	
                        	
                          c.

                        	
                          Consulting
                            assistance in the Company’s rapid seed & specimen collection and
                            planting in Texas, Mexico, the Caribbean and Central
                            America production
                            nurseries, and

                        

                

              

            

          

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

          

           

        

      

      
      

      
        
          
            	
                  	d.	
                    Initiation
                      and completion of greenhouse & field studies aimed at assessing and
                      augmenting,

                  

          

        

      

      
        
          
            	
                  	
                    i.

                  	
                    Seedling
                      maturation rates,

                  

          

        

      

      
        
          
            	
                  	
                    ii.

                  	
                    Seed
                      production rates, and

                  

          

        

      

      
        
          
            	
                  	
                    iii.

                  	
                    Seed
                      oil content

                  

          

        

      

      

      
        
          
            	2.	
                    Growing
                      Operations Start-Up Program.
                      Mobius will manage and supervise the creation, planning, construction,
                      and
                      start-up of plant nurseries and seed production plantations
                      in two
                      geographical areas that may include either South Texas, the
                      Yucatan
                      Peninsula of Mexico (Merida), the Caribbean or Central America.
                      The
                      specific two geographic areas of operations will be selected
                      by the
                      Company. Nursery operations are intended to support the start-up
                      of two
                      (2) plantations of approximately 1,000-Hectares (Ha) each.
                      Mobius will
                      manage and supervise activities in the selected geographic
                      areas, as well
                      as the contractors and consultants selected and contracted
                      by the Company
                      to perform the following
                      tasks:

                  

          

        

      

      
        
          
            	
                  	
                    a.

                  	
                    Growing
                      Operations – Nursery
                      Start-Up

                  

          

        

      

      
        
          
            	
                  	
                    i.

                  	
                    Identification
                      of potential plant nursery sites and assistance with final
                      site
                      selections, and;

                  

          

        

      

      
        
          
            	
                  	
                    ii.

                  	
                    Preparation
                      and documentation of plant nursery site designs & logistics plans,
                      and;

                  

          

        

      

      
        
          
            	
                  	
                    iii.

                  	
                    Nursery
                      sites land clearing and construction & operations set-ups,
                      and;

                  

          

        

      

      
        
          
            	
                  	
                    iv.

                  	
                    Harvesting
                      of native Jatropha bulk seeds and stems and transferring to
                      and planting
                      at nurseries, and;

                  

          

        

      

      
        
          
            	
                  	
                    v.

                  	
                    Negotiating,
                      purchasing, and transferring 3rd party bulk seeds & stem stock and
                      transferring to and planting at nurseries,
                      and;

                  

          

        

      

      
        
          
            	
                  	
                    vi.

                  	
                    Management
                      of nursery operations from start-up through transfer of established
                      seedlings or cuttings to production
                      fields.

                  

          

        

      

      
        
          
            	
                  	
                    b.

                  	
                    Growing
                      Operations – Nursery-to-Farm
                      Operations

                  

          

        

      

      
        
          
            	
                  	
                    i.

                  	
                    Identification
                      & location of potential sites for production scale farms with
                      final
                      site selections, and;

                  

          

        

      

      
        
          
            	
                  	
                    ii.

                  	
                    Preparation
                      and documentation of planting, cultivation, and harvesting
                      strategies,
                      including a logistics plan for transferring seeds to a central
                      collection
                      and seed oil production site,
                      and;

                  

          

        

      

      
        
          
            	
                  	
                    iii.

                  	
                    Selection
                      of farm sites and negotiation of land leases/purchases and/or
                      farm
                      contracts, and;

                  

          

        

      

      
        
          
            	
                  	
                    iv.

                  	
                    Management
                      of training, land preparation, and seedling & cutting transplantation
                      from nurseries to farms,
                      and;

                  

          

        

      

      
        
          
            	
                  	
                    v.

                  	
                    Oversight
                      of cultivation and farming operations from initial plantation
                      start-up
                      through completed transfer of established seedlings or cuttings
                      to
                      production fields (two plantations of 1,000-Ha
                      each).

                  

          

        

      

      

      Term
        of Engagement

      

      The
        Scope
        of Work will begin on or about August __, 2007. The Trait Selection &
Propagation Research and the Growing Operations Start-Up Programs are expected
        to proceed for twelve months, or until August __, 2008. The term of this
        Agreement, therefore, will proceed for a period of twelve months or until
        completion of the Scope of Work, whichever is sooner. The Agreement will
        automatically renew for successive periods of six (6) months each, unless
        notified by either party at least sixty (60) days prior to the end of the
        initial term or any renewal terms. Notwithstanding the foregoing, this Agreement
        may be terminated for cause by either party should: (i) the other party
        materially breach this Agreement and the other party does not cure such breach
        within thirty (30) days after receipt of written notice from the
        nonbreaching party, or (ii) due to lack of adequate funding which is not
        cured
        within thirty (30) days after receipt of written notice from the party desiring
        to terminate this Agreement.   
        

       

      
        
          
          

        

        
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      Positions
        and Duties

      

      During
        the Term, and consistent with the Scope of Work provided above, Mobius shall
        utilize commercially reasonable efforts to provide certain staff to serve
        in
        management and operations roles as requested by the Company, or alternatively,
        at Mobius’ election, to provide services as an independent contractor that are
        associated with the following roles. These roles may include Chief Operating
        Officer, Chief Risk Officer, Vice-President Business Development, Risk Manager,
        Project Developer, Project Manager or other staff that Mobius is qualified
        to
        provide and may be reasonably requested by the Company. During the Term,
        Mobius
        shall render such administrative, risk and other executive and managerial
        services to the Company and its affiliates consistent with Mobius’ positions and
        the by-laws of the Company and as the Chief Executive Officer or President
        or
        the Board of Directors of the Company may from time to time reasonably direct.
        Mobius shall also have the right to designate a person to serve on the Board
        of
        Directors as a director of the Company or such subsidiaries of the Company
        as
        may from time to time be designated by the Board.

      

      During
        the Term, Mobius shall report to the Chief Executive Officer or the President
        of
        the Company, and shall devote its commercially reasonable efforts to the
        business and affairs of the Company. Mobius shall perform its duties,
        responsibilities and functions to the Company hereunder to the best of his
        abilities in a diligent, trustworthy, professional and efficient manner and
        shall comply with the Company’s policies and procedures in all material
        respects. In performing its duties and exercising its authority under this
        Agreement, Mobius shall support and implement the business and strategic
        plans
        approved from time to time by the Board of the Company, and directed by the
        CEO
        or the President of the Company, and shall support and cooperate with the
        Company’s efforts to operate in conformity with the business and strategic plans
        approved by the Board of the Company. 

      

      Fees
        and Payment Terms

      

      Mobius
        will execute the Scope of Work described above for a fixed monthly retainer
        fee
        of $45,000 per month. Monthly retainer fees are payable one month in advance
        of
        services, with the first month’s fee payable upon execution of this Agreement.
        Subsequent payments of monthly retainer fees are due and payable on or before
        the 20th of the succeeding month.

      

      
        
          
          

        

        
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      Expenses

      

      During
        the Services Period, the Company shall reimburse Mobius for all reasonable
        pre-approved business expenses incurred during the course of performing its
        obligations under this Agreement. “Reimbursable
        Expenses”
        means all pre-approved reasonable costs and expenses for copy and reproduction,
        delivery, travel out of area, mileage, lodging, meals, and other project-related
        incidental costs, or
        as
        otherwise determined beforehand by Company and provided to Mobius in
        writing.
        Mobius
        will exercise its commercially reasonable efforts to minimize project expenses
        consistent with its obligations under this Agreement. All Reimbursable Expenses
        are payable within 30 days of invoice. Notwithstanding the foregoing, in
        no
        cases shall Reimbursable Expenses exceed more than $10,000 per month during
        the
        term of this Agreement, unless agreed to in writing by the Company prior
        to the
        expenses being incurred.

      

      Confidentiality

      

      Mobius
        and Company each recognize that, during the course of the Term, each of them
        may
        have access to, and that there may be disclosed to them, information of a
        proprietary nature owned by the other party, including but not limited to
        records, supplier lists and information, pricing information, data, formulae,
        design information and specifications, inventions, processes and methods,
        which
        is of a confidential or trade secret nature, and which has great value to
        such
        party (the “Confidential Information”). Mobius and Company each acknowledge that
        except for this Agreement, and the Services to be provided hereunder, either
        party would not have had and would not have access to such Confidential
        Information, and Mobius and Company each agree that any and all confidential
        knowledge or Confidential Information which may have been or may be obtained
        by
        or disclosed to them hereunder, including but not limited to the information
        hereinabove set forth, will be held confidential by each of them, that each
        of
        them will use reasonable efforts to conceal the same from any and all other
        persons, including but not limited to their competitors. Notwithstanding
        anything in this Agreement to the contrary, however, Confidential Information
        shall not include information which is (i) in or becomes part of the public
        domain other than by disclosure by such party in violation of this Agreement,
        (ii) demonstrably known to such party previously without an obligation of
        confidentiality, (iii) can be demonstrated by such party to have been
        independently developed by such party outside of this Agreement and not
        constituting an infringement of any intellectual property rights, trade secrets
        or other proprietary interest, or (iv) rightfully obtained by such party
        from
        third parties without an obligation of confidentiality.

      

      Notwithstanding
        anything to the contrary, Mobius shall continue to be the sole and exclusive
        owner of its technical know-how and expertise outside of the Scope of Work
        set
        forth in this Agreement, and may utilize such technical know-how and expertise
        for and on behalf of itself or third parties, and the Company shall have
        no
        claims with respect thereto. The Company shall not utilize any of such technical
        know-how or expertise except for its own intended purposes and will not compete
        with Mobius in providing the services provided by Mobius hereunder for
        compensation for a time period of five (5) years after termination of this
        Agreement. The Company shall own all Mobius technical know-how directly related
        to the Scope of Work and shall be able to utilize such technical know-how
        and
        expertise for and on behalf of itself or third parties, and Mobius shall
        have no
        claims with respect thereto. Mobius shall not utilize any of such technical
        know-how or expertise except for its own intended purposes and will not compete
        with Company by providing to any third party the services set forth in the
        Scope
        of Work for a time period of eighteen (18) months after termination of this
        Agreement. Mobius shall make prompt written disclosure to Company of all
        inventions, improvements, discoveries, copyrightable works, or other
        intellectual property, whether or not patentable or copyrightable, which
        are
        made, conceived, reduced to practice, or developed by Mobius, whether solely
        or
        jointly with others, during the course of performing consulting services
        under
        this Agreement or from any information obtained by Mobius in discussions
        and
        meetings with employees or other consultants of Company. Furthermore, Mobius
        hereby assigns, and agrees to assign, all of Mobius' rights, titles, and
        interests in such inventions, improvements, discoveries, copyrightable works,
        and other intellectual property as it relates to biofuels feedstock research,
        development, implementation, transportation and/or processing

       

      
        
          
          

        

        
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      Independent
        Contractor

      

      Nothing
        contained herein shall be construed as causing the parties to be partners,
        co-owners or joint venturers. It is agreed by the parties that Mobius is
        an
        independent contractor performing services for Company.

      

      Governing
        Law

      

      This
        Agreement shall be construed according to and governed by the laws of the
        State
        of Texas. Any disputes under this Agreement shall be tried exclusively in
        the
        state or federal courts located in Harris County, Texas.

      

      Notices

      

      Any
        notice required by this Agreement or given in connection with it, shall be
        in
        writing and shall be provided to the appropriate party by personal delivery
        or
        by certified mail, postage prepaid, or recognized overnight delivery
        services;

      

      If
        to First Party:

      Mobius
        Risk Group LLC

      Three
        Riverway, Suite 1700

      Houston,
        TX 77056

      Attention:
        Casey Ragsdale

      Telefax:
        (713) 877-0405

      

      If
        to
        Second Party:

      Medical
        Discoveries, Inc.

      c/o
        Sunhaven Farms

      30103
        West Gwinn Road

      Prosser,
        WA 99350

      Attention:
        Chairman of the Board, David R. Walker

      

      
        
          
          

        

        
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      Final
        Agreement

      

      This
        Agreement terminates and supersedes all prior understandings or agreements
        on
        the subject matter hereof. This Agreement may be modified only by a further
        writing that is duly executed by both parties.

      

      Headings

      

      Headings
        used in this Agreement are provided for convenience only and shall not be
        used
        to construe meaning or intent.

      

      Drafting

      

      In
        the
        event of any ambiguity in this Agreement, such ambiguity shall not be construed
        against the drafter.

      

      Waiver

      

      No
        failure or delay on the part of either party in exercising any right, power,
        or
        remedy hereunder shall operate as a waiver thereof. 

      

      Attorneys’
        Fees and Costs

      

      If
        any
        party to this Agreement files a court action to enforce or interpret that
        party’s rights under this Agreement or in connection with any matter arising
        from this Agreement, then the party deemed to be the prevailing party in
        that
        action shall be entitled to recover its/his costs of suit, including expert
        witness fees, and reasonable attorneys’ fees incurred in connection with that
        action.

      

      IN
        WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
        as
        of the day and year first above written.

      

      

      THIS
        PORTION OF PAGE INTENTIONALLY LEFT BLANK.

      SIGNATURE
        PAGES FOLLOW

      
        
          
          

        

        
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      Mobius
        Risk Group, LLC

      

        
          	
                  By:

                	 	
                  Date:

                	 	
                
	 	
                  Eric
                    J. Melvin

                	 
	 	
                  Chief
                    Executive Officer

                	 

        

      

       

       

      Medical
        Discoveries, Inc.

       

      

        
          	
                  By:

                	 	
                  Date:

                	 	
                
	 	
                  David
                    R. Walker

                	 
	 	
                  Chairman
                    of the Board

                	 

        

      

       

      
        
          
          

        

        
          Page
            7 of
            7Exhibit
      10.3

     

    EMPLOYMENT
      AGREEMENT

     

    This
      EMPLOYMENT AGREEMENT (this “Agreement”)
      is
      entered into as of the 1st
      day of
      September, 2007 (the “Effective
      Date”),
      by
      and between Medical Discoveries, Inc., a Utah
      corporation (the “Company”),
      and
      Richard Palmer (hereinafter, “Executive,”
and
      collectively with the Company, the “Parties”).
      

     

    W I T N ES S E TH:

     

    WHEREAS,
      the Company desires to change its business from being a biopharmaceutical
      company engaged in the development of drug candidates to becoming a company
      engaged in the production and distribution of renewable energy products;
      and

     

    WHEREAS,
      Executive and Mobius Risk Group, LLC; a Texas Limited Liability Company
      (“Mobius”),
      are
      the owners of all of the outstanding membership interest of Global Clean Energy
      Holdings LLC (“Global”),
      a
      Delaware limited liability company that owns certain rights and intellectual
      properties related to the production and distribution of renewable energy
      products; and 

     

    WHEREAS,
      concurrently with the execution of this Agreement, the Company, Executive and
      Mobius are completing the purchase by the Company of all of the equity and
      ownership interests in Global from Executive and Mobius (the “Acquisition”);
      and

     

    WHEREAS,
      Executive has expertise in the development of certain renewable energy products
      and businesses; and

     

    WHEREAS,
      in connection with the Acquisition, the Company desires to employ Executive,
      and
      Executive desires to accept such employment with the Company.

     

    NOW,
      THEREFORE, in consideration of the mutual covenants hereinafter set forth,
      the
      parties hereto agree as follows:

     

    ARTICLE
      I

     

    EMPLOYMENT;
      TERM; DUTIES

     

    1.1 Employment.
      Pursuant to the terms and conditions hereinafter set forth, the Company hereby
      employs Executive, and Executive hereby accepts employment, as President and
      Chief Operating Officer (“COO”)
      of the
      Company. Executive shall initially serve as President and COO of the Company
      until the resignation or termination of Judy Robinette, currently the Company’s
      Chief Executive Officer (the
      “Existing
      CEO”).
      Upon
      the resignation or termination of the Existing CEO, Executive shall
      automatically assume
      the
      additional position of Chief Executive Officer of the Company. 

     

    1.2 Existing
      CEO.
      The
      Existing CEO has agreed to continue to serve as the Company’s Chief Executive
      Officer until the Company’s periodic reports related to the Company’s prior
      biopharmaceutical operations have been prepared
      and filed with the Securities and Exchange Commission (“SEC”),
      and
      has agreed to resign immediately following the filing with the SEC of the last
      of the following periodic reports that the Company: (i) the annual report on
      Form 10-KSB for the fiscal year ending December 31, 2006, and (ii) the quarterly
      reports on Form 10-QSB for the periods ending March 31, 2007 and June 30,
      2007.
      Notwithstanding the foregoing, if the Existing CEO resigns or is terminated
      at
      any time prior to or after the filing of the foregoing periodic reports with
      the
      SEC, Executive shall assume the position of the Company’s CEO immediately upon
      such other resignation or termination. 

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    1.3 Term.
      Unless
      otherwise terminated earlier in accordance with the provisions of this
      Agreement, Executive’s employment with the Company shall commence on the
      Effective Date, and shall continue for a period of three (3) years from the
      Effective Date (the “Initial Employment Term”). Upon expiration of the Initial
      Employment Term, the
      Term
      shall automatically renew for successive one-year periods every year thereafter
      (“Successive Terms”) on the same terms and conditions set forth herein unless
      either Party provides the other with written notice of its intention not to
      renew the Term at least ninety (90) days prior to the end of the then-current
      term.

     

    1.4 Duties
      and Responsibilities.
      Executive shall perform such administrative, managerial and executive duties
      for
      the Company (and its subsidiaries if and when directed by the Board of Directors
      of the Company (the “Board”))
      as
      are prescribed by applicable job specifications for the President and COO (and
      CEO at such time Executive assumes such position) and the Bylaws of the Company,
      such tasks and responsibilities as are customarily vested in and incidental
      to
      such positions, and such other duties, consistent with the Company’s Bylaws, as
      may be assigned to him from time to time by the Board. 

     

    1.5 Exclusive
      Employment.
      Executive
      agrees to devote the necessary amount of Executive’s business time, energy and
      efforts to the business of the Company (and its subsidiaries if and when
      directed by the Board), and to use Executive’s best efforts and abilities
      faithfully and diligently to promote the business interests of the Company
      (and
      its subsidiaries if and when directed by the Board). 

     

    1.6 Other
      Obligations -
      The
      Company and Executive acknowledge that Executive is currently a shareholder
      and/or Director and/or Officer of several other businesses, including Mobius,
      JTBH Investments, Inc., a California corporation and Creative Lighting, LLC
      a
      Florida LLC. It is also understood and agreed that Executive may be retained
      from time to time on a limited basis to render an opinion or provide other
      strategic advice for other companies which will not conflict with his duties
      as
      Executive of the Company (hereinafter “Other Positions”). Executive represents
      that his obligations to the Other Positions will not impinge on his duties
      and
      obligations to Company under this Employment Agreement. 

     

    1.7 Board
      of Directors.
      As of
      the Effective Date of this Agreement, Executive is hereby appointed as a member
      of the Board, to serve until the next election of directors by the Company’s
      shareholders. Thereafter, provided that Executive is still employed hereunder,
      the Board shall nominate Executive to be elected to serve on the Board at each
      meeting of the Company’s shareholders held during the Term to elect directors,
      consistent with the provisions of Bylaws and Articles of Incorporation of the
      Company, as amended and in effect from time to time.

     

    1.8 Indemnification
      and Insurance.
      The
      Company agrees to maintain directors’ and officers’ liability insurance covering
      the Executive for services rendered to the Company (and its subsidiaries if
      and
      when directed by the Board) while Executive is a director or officer of the
      Company.
      The
      Company will procure a Directors and Officers Insurance Tail Policy in the
      amount of no less than Five Million Dollars ($5,000,000) insuring past actions
      of the Company’s director and officers through the Effective Date, and a Product
      Liability Insurance Tail in the amount of no less than Five Million Dollars
      ($5,000,000) for any past product development through the Effective Date for
      any
      legal claims that may arise. 

     

    1.9 Covenants
      of Executive 

     

    1.9.1 Best
      Efforts.
      Executive
      shall report directly to the Board and shall devote his best efforts to the
      business and affairs of the Company (and its subsidiaries if and when directed
      by the Board). Executive shall perform his duties, responsibilities and
      functions to the Company hereunder to the best of his abilities in a diligent,
      trustworthy, professional and efficient manner and shall comply, in all material
      respects, with all
      rules, regulations of the Company (and special instructions of the Board, if
      any) and all other rules, regulations, guides, handbooks, procedures and
      policies applicable to the Company and its business in connection with his
      duties hereunder.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    1.9.2 Records.
      Executive shall use his best efforts and skills to truthfully, accurately,
      and
      promptly prepare, maintain, and preserve all records and reports that the
      Company may, from time to time, request or require, fully account for all money,
      records, equipment, materials, or other property belonging to the Company of
      which he may have custody, and promptly pay and deliver the same whenever he
      may
      be directed to do so by the Board.

     

    1.9.3 Compliance.
      Executive shall use his best efforts to maintain
      the Company’s compliance with all SEC rules, regulations and reporting
      requirements for publicly traded companies, including, without limitation,
      overseeing, and preparing and filing with the SEC all
      periodic reports the Company is required to file under the Act and the Exchange
      Act of 1934 (as amended, the “Exchange
      Act”).
      Executive shall at
      all
      times comply, and cause the Company to comply, with the then-current good
      corporate governance standards and practices as prescribed by the SEC, any
      exchange on which the Company’s capital stock or other securities may be traded
      and any other applicable governmental entity, agency or
      organization.

     

    1.9.4 Code
      of Conduct.
      For
      such period as when Executive is employed hereunder, Executive shall at all
      times conduct himself with the highest ethical standards, and shall at all
      times
      adhere to Code of Conduct attached hereto as Exhibit
      A
      or such
      other code of ethics that the Company may, from time to time,
      adopt.

     

    1.9.5 Opportunities.
      The
      Executive shall make available to the Company and present to the Board all
      business opportunities of which he becomes aware, which are relevant to the
      business of the Company (and its subsidiaries), and to no other person or entity
      or to himself individually, including, without limitation, Mobius or any
      affiliate thereof.

     

    ARTICLE
      II

     

    COMPENSATION
      AND OTHER BENEFITS

     

    2.1 Base
      Salary.
      For the
      duration of the Term, for all services rendered by Executive hereunder and
      all
      covenants and conditions undertaken by the Parties pursuant to this Agreement,
      the Company shall pay, and Executive shall accept, as compensation, an annual
      base salary (“Base
      Salary”)
      of
      $250,000. The Base Salary shall be payable in regular installments in accordance
      with the normal payroll practices of the Company, in effect from time to time,
      but in any event no less frequently than on a monthly basis. Beginning on the
      first anniversary of the commencement of Executive’s employment with the
      Company, and on each anniversary thereafter during the Term, the Base Salary
      shall be increased by the amount of the Consumer Price Index (“CPI”),
      for
      the immediately prior 12-month period, as published in the Wall Street
      Journal.

     

    2.2 Bonus
      Compensation.
      For
      each year during the Term, Executive will be eligible to earn an annual bonus
      (the “Bonus”),
      which
      Bonus shall be based on Executive’s achievement of certain performance criteria
      established by the Compensation Committee of the Board (“Compensation
      Committee”)
      and
      provided to Executive as soon as practicable following the commencement of
      each
      such year. The target amount of the Bonus for any given employment year,
      assuming that all of the target milestones are met, shall be an amount equal
      to
      one hundred percent (100%) of the Base Salary in effect for the applicable
      year.
      In connection with the award of any Bonus pursuant to this Section 2.2,
      Executive’s performance will be reviewed by the Compensation Committee on no
      less than an annual basis. Notwithstanding anything herein to the contrary,
      the
      Parties hereby acknowledge and agree that the Compensation Committee shall,
      in
      accordance with NASDAQ rules and regulations for publicly traded companies,
      comprise independent directors of the Board only. In
      the
      event that the Company has not established a Compensation Committee, the
      independent directors of the Board shall establish the annual target amount
      of
      any Bonus to be awarded hereunder and shall determine whether the target
      milestones have been satisfied (directors appointed by, or affiliated with
      Mobius shall not be deemed to be independent for the purposes of this
      Agreement).

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    2.3 Incentive
      Option.
      Concurrently
      with the execution of this Agreement, the Company shall grant Executive an
      option (the “Incentive
      Option”)
      to
      purchase 12,000,000 shares of the Company’s common stock at an exercise price
      equal to the fair market price of the Company’s common stock on the Effective
      Date. The Incentive Option shall vest according to the schedule set forth below,
      and will expire five (5) years after the date of grant:

     

    2.3.1 When
      the
      Company’s Market Capitalization reaches $75 million, the Incentive Option shall
      vest with respect to 6,000,000 shares (such shares, the “First
      Tranche”)
      of the
      Company’s common stock subject thereunder; and

     

    2.3.2 When
      the
      Company’s Market Capitalization reaches or exceeds $120 million, the Incentive
      Option shall vest with respect to the remaining 6,000,000 (such shares, the
      “Second
      Tranche”)
      shares
      of the Company’s common stock subject thereunder.

     

    For
      purposes of the Agreement, the term “Market
      Capitalization”
shall
      mean the product of the number of shares of common stock issued and outstanding
      at the time Market Capitalization is calculated, multiplied by the average
      closing price of the common stock for the thirty (30) consecutive trading days
      prior to the date of calculation of Market Capitalization as reported on the
      principal securities trading system on which the Company’s common stock is then
      listed for trading, including the Pink Sheets, the NASDAQ Stock Market, the
      OTC
      Bulletin Board, or any other applicable stock exchange.

     

    2.4 Business
      Expenses.
      During
      the Initial Term and all Successive Terms thereafter, the Company shall
      reimburse Executive for all reasonable, out-of-pocket business expenses incurred
      in the performance of his duties hereunder consistent with the Company’s
      policies and procedures, in effect from time to time, with respect to travel,
      entertainment and other business expenses customarily reimbursed to senior
      executives of the Company in connection with the performance of their duties
      on
      behalf of the Company. Such reimbursement shall be made by Company to Executive
      no later than fifteen (15) days after submission of written expense reports
      by
      Executive to Company. 

     

    2.5 Other
      Benefits.
      During
      the term of Executive’s employment with the Company, Executive shall be entitled
      to the following benefits:

     

    2.5.1 Executive
      shall be entitled to participate in the Company’s employee stock option plan,
      life, health, accident, disability insurance plans, pension plans and retirement
      plans, in effect from time to time, to the extent and on such terms and
      conditions as the Company customarily makes such plans available to its senior
      executives; and

     

    2.5.2 Executive
      shall be entitled to receive coverage
      for services rendered to the Company (and
      its
      subsidiaries if and when directed by the Board) while
      Executive is a director or officer of the Company under any director and officer
      liability insurance policy(s) maintained by the Company from time to time;
      and

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    2.5.3 Company
      shall pay on behalf of Executive the full cost of Executive’s and Executive’s
      family health insurance plan. Until a Company plan is established, or a
      replacement plan is put in place, the Company shall pay Executive’s COBRA policy
      premium up to $1,000 per month provided through Mobius.

     

    2.6 Vacation.
      Executive shall be entitled to four (4) weeks vacation time each calendar year
      with full pay.

     

    2.7 Withholding.
      The
      Company may deduct from any compensation payable to Executive (including
      payments made pursuant to this Article II or in connection with the termination
      of employment pursuant to Article III of this Agreement) amounts sufficient
      to
      cover Executive’s share of applicable federal, state and/or local income tax
      withholding, social security payments, state disability and other insurance
      premiums and payments.

     

    ARTICLE
      III

     

    TERMINATION
      OF EMPLOYMENT

     

    3.1 Termination
      of Employment

     

    Executive’s
      employment pursuant to this Agreement shall terminate on the earliest to occur
      of the following:

     

    3.1.1 upon
      the
      death of Executive;

     

    3.1.2 upon
      the
      delivery to Executive of written notice of termination by the Company if
      Executive shall suffer a physical or mental disability which renders Executive,
      in the reasonable judgment of the Board, unable to perform his duties and
      obligations under this Agreement for either 90 consecutive days or 180 days
      in
      any 12-month period;
      or

     

    3.1.3 upon
      the
      expiration of the Initial Term (or, if the Initial Term has been extended,
      upon
      the expiration of the then-current Successive Term);
      or

     

    3.1.4 upon
      delivery to Executive of written notice of termination by the Company for
      Cause;
      or

     

    3.1.5 upon
      delivery of written notice from Executive to the Company for Good
      Reason.

     

    3.2 Certain
      Definitions.
      For
      purposes of this Agreement, the following terms shall have the following
      meanings:

     

    3.2.1 In
      connection with Paragraph 3.1 herein, “Cause”
shall
      mean any of the following:

     

    (a) Executive
      materially breaches any obligation, duty, or covenant under this Agreement,
      which breach is not cured or corrected within thirty (30) days of receipt
      by Executive of written notice thereof from the Company (except for breaches
      of
      Article IV of this Agreement, which cannot be cured and for which the Company
      need not give any opportunity to cure); or

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (b) Executive
      commits any act of misappropriation of funds or embezzlement; or

     

    (c) Executive
      commits any act of fraud; or

     

    (d) Executive
      is convicted of, or pleads guilty or nolo
      contendere
      to any
      charge of theft, fraud, a crime involving moral turpitude, or a felony under
      federal or state law; or

     

    (e) Executive
      breaches the Company’s Code
      of
      Conduct attached hereto as Exhibit
      A
      or code
      of ethics as in effect from time to time.

     

    3.2.2 In
      connection with Paragraph 3.1 herein, “Good
      Reason”
shall
      mean: (a) without Executive’s consent, the Company changes Executive’s position
      or duties to such an extent that his duties are no longer consistent with the
      positions of President and COO or President and CEO of the Company, or (b)
      Company materially breaches any term of this Agreement which breach continues
      uncured following thirty (30) days written notice by Executive to the Company
      of
      such breach.

     

    3.2.3 “Termination
      Date”
shall
      mean the date on which Executive’s employment with the Company hereunder is
      terminated. 

     

    3.3 Effect
      of Termination

     

    3.3.1 If
      Executive’s employment is terminated by Executive for Good Reason or by Company
      other than for Cause, Executive shall be entitled to
      the
      following (the “Severance
      Payments”):
      

     

    (a) The
      Company shall pay Executive an amount equal to one (1) times Executive’s
      then-current Base Salary plus
      fifty
      percent (50%) of the target Bonus in effect on the Termination
      Date; and

     

    (b) Any
      stock
      options granted to Executive pursuant to Section 2.5.1 hereof (excluding the
      Incentive Option) shall fully vest, to the extent not already vested.
      

     

    At
      such
      time when Executive’s employment with the Company is terminated, and as a
      condition to Executive’s right to receive any benefits pursuant to this Section
      3.3.1, the Executive shall execute and deliver to the Company a written release
      in a form mutually acceptable to the Company and Executive. 

     

    3.3.2 Notwithstanding
      the reason for termination of Executive’s employment, Executive shall be
      entitled to: 

     

    (a) all
      benefits payable under applicable benefit plans in which Executive is entitled
      to participate pursuant to Section 2.5 hereof through the Termination Date,
      subject to and in accordance with the terms of such plans; and

     

    (b) any
      accrued but unused vacation earned by Executive through the Termination Date
      pursuant to Section 2.6 hereof, paid out in accordance with legal requirements;
      and

     

    (c) reimbursement
      for any business expenses incurred by Executive prior to Termination Date in
      accordance with Section 2.4 of this Agreement. 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    3.3.3 If
      Executive’s employment is terminated for death, disability, by Executive other
      than for Good Reason or by the Company for Cause, Executive shall be entitled
      to
      no severance or other post-employment benefits (including, without limitation,
      the Severance Payments) except as provided in Section 3.3.2 of this Agreement.
      

     

    3.3.4 Notwithstanding
      anything herein to the contrary, if Executive’s employment hereunder terminates
      prior to the vesting of all or any portion of the Incentive Option granted
      pursuant to Section 2.3 hereof, then:

     

    (a) in
      the
      event the Company’s Market Capitalization reaches or exceeds $75 million at any
      time within 60 days following the Termination Date, the Incentive Option shall
      vest with respect to the First Tranche of shares; and,

     

    (b) in
      the
      event the Company’s Market Capitalization reaches or exceeds $120 million at any
      time within 60 days following the Termination Date, the Incentive Option shall
      vest with respect to the Second Tranche of shares.

     

    For
      purposes of this Section 3.3.4, “Market
      Capitalization”
as
      used
      herein shall mean the product of (i) the number of shares of Common Stock issued
      and outstanding at the time Market Capitalization is calculated multiplied
      by
      (ii) the average closing price of the Common Stock for any Trading Day occuring
      within 60 days of Executive’s termination as reported on the Trading Market;
“Trading
      Market”
shall
      mean the principal securities trading system on which the Common Stock is then
      listed or admitted for trading, including the Pink Sheets, the NASDAQ Stock
      Market, the OTC Bulletin Board, or any other applicable stock exchange; and
      “Trading
      Day”
shall
      mean any day on which such Trading Market is open for trading. On any Trading
      Day in which there are no transactions in the Common Stock, the Common Stock
      shall be deemed to have been traded at the price and volume of the last previous
      Trading Day on which there was a transaction. 

     

    3.3.5 Executive
      hereby acknowledges that in the event of termination of his employment for
      any
      reason, Executive shall not be entitled to any severance, payment or other
      compensation from the Company except as specifically provided in this Section
      3.3. 

     

    ARTICLE
      IV

     

    INVENTIONS;
      CONFIDENTIAL/TRADE SECRET INFORMATION AND RESTRICTIVE
      COVENANTS

     

    4.1 Inventions.
      All
      processes, technologies and inventions relating to the business of the Company
      (and its subsidiaries) (collectively, “Inventions”),
      including new contributions, improvements, ideas, discoveries, trademarks and
      trade names, conceived, developed, invented, made or found by the Executive,
      alone or with others, during his employment by the Company, whether or not
      patentable and whether or not conceived, developed, invented, made or found
      on
      the Company’s time or with the use of the Company’s facilities or materials,
      shall be the property of the Company and shall be promptly and fully disclosed
      by Executive to the Company. The Executive shall perform all necessary acts
      (including, without limitation, executing and delivering any confirmatory
      assignments, documents or instruments requested by the Company) to assign or
      otherwise to vest title to any such Inventions in the Company and to enable
      the
      Company, at its sole expense, to secure and maintain domestic and/or foreign
      patents or any other rights for such Inventions. 

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    4.2 Confidential/Trade
      Secret Information/Non-Disclosure.

     

    4.2.1 Confidential/Trade
      Secret Information Defined.
      During
      the course of Executive’s employment, Executive will have access to various
      Confidential/Trade Secret Information of the Company and information developed
      for the Company (including information developed by Mobius in its capacity
      as a
      consultant to the Company). For purposes of this Agreement, the term
“Confidential/Trade
      Secret Information”
is
      information that is not generally known to the public and, as a result, is
      of
      economic benefit to the Company in the conduct of its business, and the business
      of the Company’s subsidiaries. Executive and the Company agree that the term
“Confidential/Trade
      Secret Information”
      includes but is not limited to all information developed or obtained by the
      Company, including its affiliates, and predecessors, and comprising the
      following items, whether or not such items have been reduced to tangible form
      (e.g., physical writing, computer hard drive, disk, tape, etc.): all methods,
      techniques, processes, ideas, research and development, product designs,
      engineering designs, plans, models, production plans, business plans, add-on
      features, trade names, service marks, slogans, forms, pricing structures, menus,
      business forms, marketing programs and plans, layouts and designs, financial
      structures, operational methods and tactics, cost information, the identity
      of
      and/or contractual arrangements with suppliers and/or vendors, accounting
      procedures, and any document, record or other information of the Company
      relating to the above. Confidential/Trade Secret Information includes not only
      information directly belonging to the Company which existed before the date
      of
      this Agreement, but also information developed by Executive for the Company,
      including its subsidiaries, affiliates and predecessors, during the term of
      Executive’s employment with the Company. Confidential/Trade Secret Information
      does not include any information which (a) was in the lawful and unrestricted
      possession of Executive prior to its disclosure to Executive by the Company,
      its
      subsidiaries, affiliates or predecessors, (b) is or becomes generally available
      to the public by lawful acts other than those of Executive after receiving
      it,
      or (c) has been received lawfully and in good faith by Executive from a third
      party who is not and has never been an executive of the Company, its
      subsidiaries, affiliates or predecessors, and who did not derive it from the
      Company, its subsidiaries, affiliates or predecessors.

     

    4.2.2 Restriction
      on Use of Confidential/Trade Secret Information.
      Executive agrees that his/her use of Confidential/Trade Secret Information
      is
      subject to the following restrictions for an indefinite period of time so long
      as the Confidential/Trade Secret Information has not become generally known
      to
      the public:

     

    (a) Non-Disclosure.
      Executive agrees that he will not publish or disclose, or allow to be published
      or disclosed, Confidential/Trade Secret Information to any person without the
      prior written authorization of the Company unless pursuant to or in connection
      with Executive’s job duties to the Company under this Agreement.

     

    (b) Non-Removal/Surrender.
      Executive agrees that he will not remove any Confidential/Trade Secret
      Information from the offices of the Company or the premises of any facility
      in
      which the Company is performing services, except pursuant to his duties under
      this Agreement. Executive further agrees that he shall surrender to the Company
      all documents and materials in his possession or control which contain
      Confidential/Trade Secret Information and which are the property of the Company
      upon the termination of this Agreement, and that he shall not thereafter retain
      any copies of any such materials.

     

    4.2.3 Prohibition
      Against Unfair Competition/ Non-Solicitation of Customers.
      Executive agrees that at no time after his employment with the Company will
      he
      engage in competition with the Company while making any use of the
      Confidential/Trade Secret Information, or otherwise exploit or make use of
      the
      Confidential/Trade Secret Information. Executive agrees that during the twelve
      month period following the Termination Date, he will not directly or indirectly
      accept or solicit, in any capacity, the business of any customer of the Company
      with whom Executive worked or otherwise had access to the Confidential/Trade
      Secret Information pertaining to the Company’s business with such customer
      during the last year of Executive’s employment with the Company, or solicit,
      directly or indirectly, or encourage any of the Company’s customers or suppliers
      to terminate their business relationship with the Company, or otherwise
      interfere with such business relationships.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    4.3 Non-Solicitation
      of Employees.
      Employee agrees that during the twelve month period following the Termination
      Date, he shall not, directly or indirectly, solicit, directly or indirectly,
      or
      otherwise encourage any employees of the Company to leave the employ of the
      Company, or solicit, directly or indirectly, any of the Company’s employees for
      employment.

     

    4.4 Non-Solicitation
      During Employment.
      During
      his employment with the Company, Executive shall not: (a) interfere with the
      Company’s business relationship with its customers or suppliers, (b) solicit,
      directly or indirectly, or otherwise encourage any of the Company’s customers or
      suppliers to terminate their business relationship with the Company, or (c)
      solicit, directly or indirectly, or otherwise encourage any employees of the
      Company to leave the employ of the Company, or solicit any of the Company’s
      employees for employment.

     

    4.5 Conflict
      of Interest.
      During
      Executive’s employment with the Company, Executive must not engage in any work,
      paid or unpaid, that creates an actual conflict of interest with the Company.
      

     

    4.6 Breach
      of Provisions.
      If
      Executive breaches any of the provisions of this Article IV, or in the event
      that any such breach is threatened by Executive, in addition to and without
      limiting or waiving any other remedies available to the Company at law or in
      equity, the Company shall be entitled to immediate injunctive relief in any
      court, domestic or foreign, having the capacity to grant such relief, to
      restrain any such breach or threatened breach and to enforce the provisions
      of
      this Article IV. 

     

    4.7 Reasonable
      Restrictions.
      The
      Parties acknowledge that the foregoing restrictions, as well as the duration
      and
      the territorial scope thereof as set forth in this Article IV, are under all
      of
      the circumstances reasonable and necessary for the protection of the Company
      and
      its business.

     

    4.8 Special
      Definition.
      For
      purposes of this Article IV, the term “Company”
shall
      be deemed to include any subsidiary of the Company.

     

    ARTICLE
      V

     

    MISCELLANEOUS

     

    5.1 Binding
      Effect; Assignment.
      This
      Agreement shall be binding upon and inure to the benefit of the Parties and
      their respective legal representatives, heirs, distributees, successors and
      assigns. Executive may not assign any of his rights and obligations under this
      Agreement. The Company may assign its rights and obligations under this
      Agreement to any successor entity. 

     

    5.2 Notices.
      Any
      notice provided for herein shall be in writing and shall be deemed to have
      been
      given or made (a) when personally delivered or (b) when sent by telecopier
      and
      confirmed within 48 hours by letter mailed or delivered to the party to be
      notified at its or his/hers address set forth herein; or three (3) days after
      being sent by registered or certified mail, return receipt requested, (or by
      equivalent currier with delivery documentation such as FEDEX or UPS) to the
      address of the other party set forth or to such other address as may be
      specified by notice given in accordance with this section 5.2:

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	
              If
                to the Company:

            	
              Medical
                Discoveries, Inc.

              c/o
                Sunhaven Farms

              30103
                West Gwinn Road

              Prosser,
                WA 99350
Telephone: (509) 786-1013
Attention: David R.
                Walker

            
	 	 
	
              With
                a copy (which shall not 

              constitute
                notice) to: 

            	
              Troy
                & Gould

              1801
                Century Park East, 26th
                Floor

              Los
                Angeles, CA 90067

              Attention:
                Istvan Benko, Esq.

              Telecopy
                No.: (310) 789-1490

            
	 	 
	
              If
                to Executive:

            	
              Richard
                Palmer

              3806
                Newton Street

              Torrance,
                CA 90505

              Telephone:
                (310) 378-8529

              Facsimile:
                (310) 378-7620

            
	 	 
	
              With
                a copy (which shall not 

              constitute
                notice) to: 

            	
              Eileen
                Darroll, Esq.

              Palmer
                Darroll Law Offices

              2940
                Westwood Blvd, 2nd Floor

              Los
                Angeles, CA 90064

              Tele:
                (310)474-2193

              Fax:
                (310)474-5151

            

    

     

    5.3 Severability.
      If any
      provision of this Agreement, or portion thereof, shall be held invalid or
      unenforceable by a court of competent jurisdiction, such invalidity or
      unenforceability shall attach only to such provision or portion thereof, and
      shall not in any manner affect or render invalid or unenforceable any other
      provision of this Agreement or portion thereof, and this Agreement shall be
      carried out as if any such invalid or unenforceable provision or portion thereof
      were not contained herein. In addition, any such invalid or unenforceable
      provision or portion thereof shall be deemed, without further action on the
      part
      of the parties hereto, modified, amended or limited to the extent necessary
      to
      render the same valid and enforceable.

     

    5.4 Waiver.
      No
      waiver by a party hereto of a breach or default hereunder by the other party
      shall be considered valid, unless expressed in a writing signed by such first
      party, and no such waiver shall be deemed a waiver of any subsequent breach
      or
      default of the same or any other nature.

     

    5.5 Entire
      Agreement.
      This
      Agreement sets forth the entire agreement between the Parties with respect
      to
      the subject matter hereof, and supersedes any and all prior agreements between
      the Company and Executive, whether written or oral, relating to any or all
      matters covered by and contained or otherwise dealt with in this Agreement.
      This
      Agreement does not constitute a commitment of the Company with regard to
      Executive’s employment, express or implied, other than to the extent expressly
      provided for herein.

     

    5.6 Amendment.
      No
      modification, change or amendment of this Agreement or any of its provisions
      shall be valid, unless in writing and signed by the Parties.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    5.7 Authority.
      The
      Parties each represent and warrant that it/he has the power, authority and
      right
      to enter into this Agreement and to carry out and perform the terms, covenants
      and conditions hereof.

     

    5.8 Attorneys’
      Fees.
      If
      either party hereto commences an arbitration or other action against the other
      party to enforce any of the terms hereof or because of the breach by such other
      party of any of the terms hereof, the prevailing party shall be entitled, in
      addition to any other relief granted, to all actual out-of-pocket costs and
      expenses incurred by such prevailing party in connection with such action,
      including, without limitation, all reasonable attorneys’ fees, and a right to
      such costs and expenses shall be deemed to have accrued upon the commencement
      of
      such action and shall be enforceable whether or not such action is prosecuted
      to
      judgment.

     

    5.9 Captions.
      The
      captions, headings and titles of the sections of this Agreement are inserted
      merely for convenience and ease of reference and shall not affect or modify
      the
      meaning of any of the terms, covenants or conditions of this
      Agreement.

     

    5.10 Governing
      Law.
      This
      Agreement, and all of the rights and obligations of the Parties in connection
      with the employment relationship established hereby, shall be governed by and
      construed in accordance with the substantive laws of the State of California
      without giving effect to principles relating to conflicts of law.

     

    5.11 Arbitration.

     

    5.11.1 Scope.
      To the
      fullest extent permitted by law, Executive and the Company agree to the binding
      arbitration of any and all controversies, claims or disputes between them
      arising out of or in any way related to this Agreement, the employment
      relationship between the Company and Executive and any disputes upon termination
      of employment, including but not limited to breach of contract, tort, ,
      constitutional claims; and any claims for violation of any local, state or
      federal law, statute, regulation or ordinance or common law, excluding any
      claim
      for wages under the California Labor Code ,or any claim relating to the
      Company’s failure to pay wages. For the purpose of this agreement to arbitrate,
      references to “Company” include all subsidiaries or related entities and their
      respective executives, supervisors, officers, directors, agents, pension or
      benefit plans, pension or benefit plan sponsors, fiduciaries, administrators,
      affiliates and all successors and assigns of any of them, and this agreement
      to
      arbitrate shall only apply to them to the extent Executive’s claims arise out of
      or relate to their actions on behalf of the Company.

     

    5.11.2 Arbitration
      Procedure.
      To
      commence any such arbitration proceeding, the party commencing the arbitration
      must provide the other party with written notice of any and all claims forming
      the basis of such right in sufficient detail to inform the other party of the
      substance of such claims. In no event shall this notice for arbitration be
      made
      after the date when institution of legal or equitable proceedings based on
      such
      claims would be barred by the applicable statute of limitations. The arbitration
      will be conducted in Los Angeles, California, by a single neutral arbitrator
      and
      in accordance with the then-current rules for resolution of employment disputes
      for Judicial Arbitration and Mediation Services (“JAMS”). The Arbitrator is to
      be selected by the mutual agreement of the Parties. If the Parties cannot agree,
      the Superior Court will select the arbitrator. The parties are entitled to
      representation by an attorney or other representative of their choosing. The
      arbitrator shall have the power to enter any award that could be entered by
      a
      judge of the trial court of the State of California, and only such power, and
      shall follow the law. The award shall be binding, and the Parties agree to
      abide
      by and perform any award rendered by the arbitrator. The arbitrator shall issue
      the award in writing, and therein state the essential findings and conclusions
      on which the award is based. Judgment on the award may be entered in any court
      having jurisdiction thereof. In the event Company initiates the arbitration
      proceeding, Company shall bear the total cost of the arbitration filing, hearing
      fees, and the cost of the arbitrator. In the event the Executive initiates
      the
      arbitration proceeding, the Executive shall bear the total cost of the
      arbitration filing, hearing fees, and the cost of the arbitrator.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    5.12 Survival.
      The
      termination of Executive’s employment with the Company pursuant to the
      provisions of this Agreement shall not affect Executive’s obligations to the
      Company hereunder which by the nature thereof are intended to survive any such
      termination, including, without limitation, Executive’s obligations under
      Article IV of this Agreement.

     

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
      day
      and year first above written.

     

    
      	
              MEDICAL
                DISCOVERIES, INC., 

              a
                Utah corporation

            
	 	 
	
              By:

            	 

              

            
	 	
              Name:
                David R. Walker

            
	 	
              Title:
                Chairman of the Board

            
	 	 
	 	 
	
              

            
	 Richard
              Palmer

    

     

    
      
        
        

      

      
        12

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