Document:

Exhibit 10.5

    
      

    

    
      	CORPORATE
              NAME LICENSE
              AGREEMENT

    

    

    This
      Agreement is entered into this July 30, 2005 by and between POSITRON
      CORPORATION,
      with
      its registered office at 1304 Langham Creek Drive Suite 300, Houston, TX 77084,
      USA (hereinafter referred to as "Positron") of the one part and 

    

    NEUSOFT
      POSITRON MEDICAL SYSTEMS CO., LTD.,
      with
      its registered office at No. 2 Xinxiu Street, Hun Nan New District, Shenyang,
      PRC (hereinafter referred to as the "Company") of the other part.

    

    WHEREAS
      Positron is the owner of the trademark POSITRON in English and Chinese
      (hereinafter referred to as the "POSITRON") for a wide variety of products
      globally (hereinafter referred to as the "Territory"); and

    

    WHEREAS
      Positron holds directly thirty-two point five percent (32.5%) of the registered
      capital of the Company; and

    

    WHEREAS
      the Company desires to use the word POSITRON as part of its corporate name;
      and

    

    

    WHEREAS
      Positron is prepared to grant the Company the right to use the word POSITRON
      as
      part of its corporate name upon the terms and conditions hereinafter set
      forth.

    

    NOW,
      IT IS HEREBY AGREED AS FOLLOWS:

    

    Clause
      1

    

    Positron
      herewith grants to the Company the non-exclusive royalty-free right and license
      to use the word POSITRON as part of its corporate name.

    

    Clause
      2

    

    The
      Company shall strictly comply with the instructions, directions and
      specifications which Positron may give to the Company from time to time with
      respect to the appearance and use of the word POSITRON as part of the Company's
      corporate name.

    

    Clause
      3

    

    Positron
      may in its sole discretion grant to third parties in and outside the People’s
      Republic of China, the right and license to use the word POSITRON in their
      corporate name. If Positron should so request, the Company shall give all
      required assistance to the effect that such third parties can use the word
      POSITRON in their corporate name and in particular the Company shall in such
      case(s) forthwith inform the Registrar of Companies and/or such other
      authorities and other third parties as Positron may direct of its (Company's)
      approval and agreement to the use by such third party or parties of the word
      POSITRON in the corporate name of such third party.

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    
      	CORPORATE
              NAME LICENSE
              AGREEMENT

    

    Clause
      4

    

    The
      Company undertakes to render to Positron all assistance which Positron may
      request from time to time in respect of the protection, registration and defense
      of Positron's right in the word POSITRON as part of a corporate name, a
      tradename and/or the trademark POSITRON and other trademarks containing as
      an
      element the word POSITRON in particular in connection with legal proceedings
      against third parties infringing or having infringed Positron's rights in
      respect thereof. 

    

    The
      Company shall inform Positron of each and every infringement of Positron's
      right
      in the word POSITRON as part of a corporate name, a trade name and/or in the
      trademarks referred to in the first sentence of this Clause which comes to
      the
      Company's knowledge. Positron shall in its entire discretion decide whether
      or
      not legal proceedings shall be initiated against third parties infringing
      Positron's abovementioned rights.

    

    Clause
      5

    

    The
      Company shall not become entitled whether by implication, use, registration
      or
      otherwise to any title to the word POSITRON as part of a corporate name, a
      trade
      name and/or as trademark or claim to be the owner of such corporate name, trade
      name or trademark nor by way of use or registration establish title to similar
      or related corporate name, tradenames or trademarks.

    

    Clause
      6

    

    The
      Company is obligated to change its corporate name by deleting therefrom the
      word
      POSITRON at the first request of Positron and shall not replace same by a word
      similar to the word POSITRON and shall see to it that an appropriate decision
      by
      the Policy Board of the Company shall be made and confirmed in writing as soon
      as required by such request.

    

    Clause
      7

    

    The
      Company shall not without Positron's previous consent in writing modify its
      corporate name and/or its objectives and/or field of activity, as long as the
      word POSITRON is part of the corporate name of the Company. In the event the
      right and license granted under this Agreement is revoked or terminated for
      whatever reason, the Company shall immediately thereupon change its corporate
      name in such a manner that it no longer, wholly or partially, contains the
      word
      POSITRON or similar words alone, or as part of another word and furthermore
      the
      Company shall forthwith upon such revocation or termination cease and
      discontinue the use of the word POSITRON or a name similar thereto in any manner
      and in particular the Company shall in such event forthwith cease and
      discontinue the use of stationery, advertising material, publications, name
      plates, vans etc. bearing the word POSITRON or a word similar
      thereto.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
      	CORPORATE
              NAME LICENSE
              AGREEMENT

    

    Clause
      8

    

    The
      right
      and license granted under this Agreement may be terminated with immediate effect
      by written or telegraphic notice from Positron to the Company in any of the
      following events: if Positron ceases to own directly or indirectly or ceases
      to
      have the right or power to exercise effectively all its rights of ownership
      in
      at least 51% of the issued share capital of the Company or if any of such
      circumstances becomes imminent in the sole judgment of Positron.

    

    Clause
      9

    

    In
      the
      event the Company does not comply with any and all of the provisions of this
      Agreement Positron shall give the Company written notice of such non-compliance
      and the Company shall have 30 days from the receipt of such notice to remedy
      the
      breach. If the breach is not remedied within said 30 days, Positron shall be
      entitled to revoke the right and license granted under this Agreement at any
      time thereafter by giving the Company written notice of such revocation,
      notwithstanding Positron's right to claim damages and/or to cause the Company
      to
      comply with such provisions of the Agreement.

    

    Clause
      10

    

    The
      right
      and licence granted under this Agreement is granted for an unlimited period
      of
      time and, unless previously revoked in accordance with the provisions of Clause
      8 or 9, shall continue unless and until revoked by either party giving three
      months' notice by telegram or notice in writing. In no event the Company can
      claim any indemnification for the termination of this Agreement.

    

    Clause
      11

    

    Neither
      this Agreement nor any rights hereunder may be assigned or otherwise transferred
      by the Company nor shall they inure to the benefit of any liquidator, receiver
      or successor of the Company, whether by operation of law or otherwise without
      the written consent of Positron and any assignment or transfer without such
      consent shall be null and void.

    

    Clause
      12

    

    This
      Agreement shall be construed and have effect as an Agreement made in the
      People’s Republic of China and according to the Laws of the People’s Republic of
      China.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      	CORPORATE
              NAME LICENSE
              AGREEMENT

    

    Clause
      13

    

    All
      disputes arising out of or in connection with this Agreement shall be submitted
      to the competent court in the People’s Republic of China.

    

    IN
      WITNESS WHEREOF
      these
      presents have been signed by the parties hereto in a manner legally binding
      upon
      them on the date first above written.

    

    

    
      	
              POSITRON
                CORPORATION

            	 	
              NEUSOFT
                POSITRON MEDICAL SYSTEMS CO., LTD.

            
	 	 	 
	 	 	 
	
              Authorized
                Signature

            	 	
              Legal
                Representative

            
	
              Name:

            	 	
              Name:

            
	
              Title:

            	 	
              Title:

            

    

     

    4EXHIBIT 10.1

<TABLE>
<CAPTION>
                    STOCK AND WARRANT PURCHASE AGREEMENT

<S>     <C>                                      <C>
Among:  THE PERSONS LISTED IN EXHIBIT A                 Each a "Buyer" and
                                                                -----
                                                 collectively the "Buyers"
                                                                   ------

And:    GOLDMAN, SACHS & CO.,
        a New York limited partnership                            "Seller"
                                                                   ------

And:    A-FEM MEDICAL CORPORATION,
        a Nevada corporation                                     "Company"
                                                                  -------

Dated:  October 29, 2004 (the "Agreement Date")
                               --------------
</TABLE>

                                   BACKGROUND

          This Stock and Warrant Purchase Agreement (this "Agreement") sets
forth the terms under which Buyers will purchase Seller's entire equity interest
in Company and related transactions will be documented and consummated.

                                   AGREEMENT

     1.     Purchase, Sale and Assignment. Buyers severally and not jointly
            ------------------------------
hereby purchase and Seller hereby sells 7,492,135 shares (the "Shares") of
                                                               ------
Series A Preferred Stock of Company (the "Series A Stock") and Sherbrooke
                                          --------------
Partners, LLC, a Delaware limited liability company ("Sherbrooke"), Mark
                                                      ----------
Capital, LLC, a Delaware limited liability company ("Mark Capital"), and CGA
                                                     ------------
Resources Inc., LLC ("CGA") severally and not jointly hereby purchase and Seller
                      ---
hereby sells warrants to purchase an aggregate of 1,204,012 shares of Series A
Stock (the "Warrants"). The Shares and the Warrants are collectively referred to
            --------
herein as the "Securities". The number of Securities purchased by each Buyer is
set forth in Exhibit A opposite such Buyer's name. The purchase and sale of the
             ---------
Securities is a sale of Seller's entire equity interest in Company which
interest was acquired by Seller pursuant to the Assignment (as defined in
Section 6.5). Goldman hereby assigns to Buyers all of Goldman's rights under the
-----------
Amended and Restated Registration Rights Agreement (the "Registration
                                                         ------------
Agreement"), dated September 21, 2000, originally entered into between Company
---------
and Capital Consultants LLC ("CCL") as a Holder (as that term is define in the
                              ---
Registration Agreement) and Buyers hereby assume all of Goldman's obligations
under the Registration Agreement.

     2.     Purchase Price. The aggregate purchase price for the Securities is
            ---------------
$200,000 (the "Purchase Price"). The allocation of the Purchase Price among
               --------------
Buyers is set forth in Exhibit A. The closing of the purchase and sale of the
                       ----------
Securities (the "Closing") will occur contemporaneously with the execution of
                 -------
this Agreement. At the Closing, each Buyer will deliver to Seller the amount of
the Purchase Price set forth opposite such Buyer's name on Exhibit A by wire
                                                           ---------
transfer to an account designated by Seller or cashier's check payable to
Seller, and Seller will deliver to Company, with a copy to Buyers, each
certificate representing the Shares accompanied by duly completed and executed
assignments separate from certificate transferring the Shares to Buyers in the
allocations set forth on Exhibit A and the Warrants
                         ---------

                                        1   STOCK AND WARRANT PURCHASE AGREEMENT
<PAGE>
accompanied by duly completed and executed assignments transferring the Warrants
to Sherbrooke, Mark Capital and CGA in the allocations set forth on Exhibit A.
                                                                    ----------
Company shall, as promptly as practicable after the Closing, and in any event
not more than five business days after the Closing, issue and deliver to each
Buyer a stock certificate representing the number of Shares and issued and
deliver to Sherbrooke, Mark Capital and CGA an instrument representing the
number of Warrants purchased pursuant to this Agreement.

     3.     Company Covenants, Acknowledgements and Consents. Company desires
            -------------------------------------------------
that Buyers acquire the Shares and that Sherbrooke, Mark Capital and CGA acquire
the Warrants pursuant to this Agreement and believes that Company will benefit
from the transactions to be consummated pursuant to this Agreement (the
"Transactions"). The parties acknowledge that Company's willingness to provide
 ------------
the covenants, acknowledgements and consents set forth in this Agreement is a
material condition precedent to Seller's willingness to sell the Securities to
Buyers and Buyers' willingness to purchase the Securities from Seller.

          3.1     Kicker Payments.
                  ----------------

               3.1.1 Company agrees that if at any time between the Agreement
     Date and October 29, 2011 Company (or any successor entity by merger or
     operation of law) receives any amounts (each such amount a "Gross
                                                                 -----
     Recovery") in settlement of or satisfaction of any judgment with respect to
     --------
     (each such settlement or judgment a "Settlement") claims that third parties
                                          ----------
     have infringed or otherwise violated ("Infringement Claims") issued or
                                            -------------------
     pending patents which Company owns on the Agreement Date (each a "Subject
                                                                       -------
     Patent"), regardless of whether such Gross Recovery is derived from
     ------
     litigation, arbitration, settlement, negotiation or the issuance of
     licenses or other permissions, Company will pay Seller with respect to each
     Gross Recovery (each such amount a "Kicker") an amount equal to 20% of the
                                         ------
     difference between (a) the amount of such Gross Recovery minus (b) the
     amount of all fees, costs and expenses incurred by Company in connection
     with such Gross Recovery, including all attorneys' fees (such difference,
     the "Net Recovery"). Notwithstanding anything to the contrary, the term
          ------------
     "Gross Recovery" shall not be deemed to include any amounts that Company
      --------------
     may receive in connection, contemporaneously or proximally, with any
     Settlement to the extent that such amounts are attributable to, arise out
     of or in settlement or satisfaction of any claims other than Infringement
     Claims with respect to any of the Subject Patents. Company will pay each
     Kicker to Seller within 90 days after actual receipt of the Net Recovery.

               3.1.2 If Company shall sell and assign any Subject Patent (each,
     a "Transferred Subject Patent") to a third party in a bona fide transaction
        --------------------------
     (a "Subject Patent Sale") and, at the time of the closing of such Subject
         -------------------
     Patent Sale, Company has knowledge that Infringement Claims exist with
     respect to such Transferred Subject Patent, then Company shall treat that
     portion of the consideration received in the Subject Patent Sale that is
     attributable to the value of the Settlement of all Infringement Claims with
     respect to such Transferred Subject Patent as if such amount were a Gross
     Recovery and pay Seller a Kicker with respect thereto within 90 days after
     the closing of the Subject Patent Sale and neither Company nor any assignee
     of such Transferred Subject Patent shall thereafter be liable to Seller for
     any Kicker or other payment with respect to

                                        2   STOCK AND WARRANT PURCHASE AGREEMENT
<PAGE>
     any Settlement of any Infringement Claim with respect to such Transferred
     Subject Patent. Notwithstanding anything to the contrary in this Agreement,
     if Company shall sell and assign any Transferred Subject Patent in a
     Subject Patent Sale and, at the time of the closing of such Subject Patent
     Sale, Company had no knowledge of any Infringement Claim with respect to
     such Transferred Subject Patent, then no Kicker will be due with respect to
     such Subject Patent Sale nor with respect to any Settlement of any
     Infringement Claim with respect to such Transferred Subject Patent
     subsequent to the closing of such Subject Patent Sale.

               3.1.3 On or prior to the 45th day following each of the first
     seven anniversaries of the Agreement Date, the Company shall deliver to
     Seller a certificate (each, a "Certificate Regarding Subject Patents") in
                                    -------------------------------------
     the form of Exhibit B setting forth (i) whether or not during the year
                 ---------
     ended on the last anniversary of the Agreement Date (each a "Certificate
                                                                  -----------
     Year") the Company has asserted any Infringement Claims against any third
     ----
     parties with respect to any Subject Patents; (ii) whether or not during
     such Certificate Year the Company has entered into or become subject to any
     Settlement with respect to any Infringement Claims asserted against any
     third parties with respect to any Subject Patents; and (iii) whether or not
     during such Certificate Year Company has sold or assigned any Transferred
     Subject Patents in a Subject Patent Sale and whether or not at the time of
     the closing of each such Subject Patent Sale Company has any knowledge of
     any Infringement Claims with respect to such Transferred Subject Patents.

               3.1.4 A true, correct and complete list of the Subject Patents is
     attached hereto as Schedule 3.1. Nothing in this Section 3.1 shall be
                        ------------
     construed to obligate Company to pursue or settle any Infringement Claims.

          3.2     Warrant. Company will issue to Seller a warrant, in the form
                  --------
of Exhibit C, to purchase 956,873 shares of Common Stock of Company ("Common
   ---------                                                          ------
Stock") at a cash purchase price of $0.50 per share (the "New Warrant").
-----                                                     -----------

          3.3     Investor Rights Agreement. Company will grant to Buyers
                  --------------------------
certain rights of first offer and director designation rights in accordance with
the terms of an Investor Rights Agreement in the form of Exhibit D (the
                                                         ---------
"Investor Rights Agreement"). The rights of first offer set forth in the
 -------------------------
Investor Rights Agreement shall not be triggered by the offer or issuance
described in Schedule 5.9.
             -------------

          3.4     Co-Sale Rights Agreement. Buyers will grant to Seller certain
                  -------------------------
rights of co-sale with respect to transfers of shares of Common Stock pursuant
to the terms of a Co-Sale Rights Agreement in the form of Exhibit E (the
                                                          ---------
"Co-Sale Agreement").
 -----------------

          3.5     Acknowledgements and Consents. Company hereby acknowledges and
                  ------------------------------
consents to the purchase and sale of the Securities pursuant to this Agreement,
the Assignment and the Overbid Contract (as defined in Section 6.5), and
irrevocably waives compliance with any applicable rights of refusal, options or
approval requirements with respect thereto. Company hereby further acknowledges
and consents to the assignment of the Registration Agreement from CCL to PNW,
LLC ("PNW"), from PNW to Goldman and from Goldman to Buyers. Company does not
      ---
hereby waive any right to consent to or deny any future sale or assignment.

                                        3   STOCK AND WARRANT PURCHASE AGREEMENT
<PAGE>
     4.     Representations and Warranties of Buyers. Each Buyer severally and
            -----------------------------------------
not jointly, and only as to itself, represents and warrants to Seller and to
Company as of the Agreement Date as follows:

          4.1     Organization and Good Standing; Residence. If Buyer is an
                  ------------------------------------------
entity, Buyer is duly formed and validly existing under the laws of the State of
its formation. Each Buyer is a resident of, or is headquartered with its
principal office in, the state designated opposite its name in the "State"
column of Exhibit A.

          4.2     Authority. This Agreement constitutes the legal, valid, and
                  ----------
binding obligation of Buyer, enforceable against Buyer in accordance with its
terms, except as enforceability may be limited or affected by applicable
bankruptcy, insolvency, reorganization or other laws of general application
relating to or affecting the rights of creditors and except as enforceability
may be limited by rules of laws governing specific performance, injunctive
relief or other equitable remedies. If Buyer is an entity, Buyer has full
corporate, limited liability company or partnership, as applicable, power,
authority, and capacity to execute and deliver this Agreement and to perform its
obligations hereunder.

          4.3     No Conflict. Neither the execution and delivery by Buyer of
                  ------------
this Agreement nor the performance of Buyer's obligations hereunder will,
directly or indirectly (with or without notice, lapse of time, or both): (a) if
Buyer is an entity, violate any provision of Buyer's organizational documents or
any resolution adopted by the board of directors, managers, partners, members or
shareholders of Buyer; (b) violate any legal requirement to which Buyer is
subject; or (c) violate or breach any provision, or give any person the right to
declare a material default or exercise any material remedy under, or to
accelerate the maturity or performance of, or to cancel, terminate, or modify,
any material contract as to which Buyer or any of its assets is subject.

          4.4     Investment Representations.
                  ---------------------------

               4.4.1 Buyer has been and is solely responsible for its own due
     diligence investigation and evaluation of the value of the Securities and
     Company's business, products, financial condition, viability and prospects.

               4.4.2 Buyer is able to (a) hold the Securities for an indefinite
     period of time, (b) bear the economic risk of the purchase of the
     Securities, and (c) withstand a complete loss of the value of the
     Securities.

               4.4.3 Buyer has obtained, to the extent Buyer deems necessary,
     its own personal, professional advice with respect to assessing the
     suitability of purchasing the Securities pursuant to this Agreement. Buyer
     believes that it has, either alone or with the assistance of its investment
     and other professional advisors, such knowledge and experience in
     financial, securities and business matters, that Buyer is capable of making
     an informed investment decision with respect to the Transactions. Buyer
     believes that the purchase of the Securities is suitable for Buyer based
     upon Buyer's investment objectives and financial needs, and Buyer has
     adequate means for providing for Buyer's current

                                        4   STOCK AND WARRANT PURCHASE AGREEMENT
<PAGE>
     financial needs and personal contingencies and has no current need for
     liquidity in its investment in the Securities.

               4.4.4 Buyer is an "accredited investor" within the meaning of
     Regulation D under the Securities Act of 1933, as amended (the "1933 Act").
                                                                     --------

               4.4.5 Buyer is purchasing Securities for Buyer's own account and
     for investment purposes only. Buyer has no present plan or agreement to
     distribute, transfer, assign, sell or subdivide the Securities.

               4.4.6 Buyer is aware that the Securities have not been registered
     with the Securities and Exchange Commission under the 1933 Act or any state
     securities laws on the ground that no public offering is involved, which
     conclusion is based in part upon Buyer's representations. Buyer further
     understands and agrees that the Securities may not be offered, sold,
     transferred or pledged to any person in the absence of registration under
     the 1933 Act or an opinion of counsel satisfactory to Company that such
     registration is not required, except for offers, sales, transfers or
     pledges made in compliance with Rule 144 promulgated under the 1933 Act.

               4.4.7 Buyer confirms that neither Seller nor any of its
     affiliates or agents have made any representations or warranties concerning
     the Securities or Company other than as specifically set forth in this
     Agreement. With respect to Buyer's purchase of Securities, Buyer is not
     relying on any representations provided by Seller or any of its affiliates
     or agents other than as specifically set forth in this Agreement.

               4.4.8 Buyer acknowledges that Company has not filed any reports
     required by the 1934 Act since approximately May 2002. Buyer is not relying
     on any representations provided by Company or any of its affiliates or
     agents other than those expressly set forth in this Agreement.

          4.5     No Brokers. Buyer has not engaged and is not liable to any
                  -----------
broker or finder in connection with the Transactions. Buyer shall protect,
defend, indemnify, and hold Seller and Company harmless for, from and against
any and all claims, liabilities or demands with respect to Buyer's breach of
this Section 4.5.

          4.6     Securities. Buyer is relying on Company to provide all
                  -----------
information and representations concerning the outstanding capitalization of
Company, including Company's representations in Section 5.4. Buyer recognizes
                                                ------------
that Seller's only representations concerning the Securities are those in
Sections 6.4, 6.5 and 6.6.
-------------------------

     5.     Representations and Warranties of Company. Company represents and
            ------------------------------------------
warrants to and for the benefit of Buyers as follows; provided that each
                                                      --------
representation and warranty is qualified by any exceptions set forth in the
Schedules delivered to Buyer concurrently herewith; provided that a particular
                                                    --------
representation shall be deemed to be qualified by a particular item of
disclosure only if, and to the extent that, the disclosure is set forth in the
schedule having the number corresponding to the Section containing the
representation or warranty being qualified:

                                        5   STOCK AND WARRANT PURCHASE AGREEMENT
<PAGE>
          5.1     Organization and Good Standing. Company is a corporation duly
                  -------------------------------
formed, validly existing and in good standing under the laws of the State of
Nevada and has full power and authority under applicable corporate law to own,
lease and operate its properties and to carry on its business. Company is duly
qualified and is authorized to do business and is in good standing as a foreign
corporation in each jurisdiction in which the nature of its activities and of
its properties makes such qualification necessary, except for those
jurisdictions in which failure to be so qualified would not have a material
adverse effect on Company, its business or its condition (financial or other) or
materially impair the right or ability of Company to carry on its business (a
"Material Adverse Effect").
 -----------------------

          5.2     Authority. Each of this Agreement, the New Warrant and the
                  ---------
Investor Rights Agreement (each a "Transaction Agreement") constitutes the
                                   ---------------------
legal, valid, and binding obligation of Company, enforceable against Company in
accordance with its terms, except as enforceability may be limited or affected
by applicable bankruptcy, insolvency, reorganization or other laws of general
application relating to or affecting the rights of creditors and except as
enforceability may be limited by rules of laws governing specific performance,
injunctive relief or other equitable remedies. Company has full corporate power,
authority, and capacity to execute and deliver each Transaction Agreement and to
perform its obligations thereunder.

          5.3     No Conflict. Neither the execution and delivery by Company of
                  -----------
the Transaction Agreements nor the performance of any of Company's obligations
thereunder, will, directly or indirectly (with or without notice, lapse of time,
or both): (a) violate any provision of Company's organizational documents or any
resolution adopted by the Board of Directors of Company (the "Board") or the
                                                              -----
shareholders of Company (the "Shareholders"); (b) violate any legal requirement
                              ------------
to which Company is subject; (c) violate or breach any provision of, or give any
person the right to declare a material default or exercise any material remedy
under, or to accelerate the maturity or performance of, or to cancel, terminate,
or modify, any material contract as to which Company or any of its assets is
subject; or (d) result in the imposition or creation of any lien upon or with
respect to any of Company's assets.

          5.4     Securities. The list of Warrants and stock certificates
                  ----------
representing the Shares set forth in Schedule 6.4 as being owned by Seller is
                                     ------------
consistent with Company's shareholder records and stock ledgers. To Company's
actual knowledge, other than the Securities, Seller owns no shares of capital
stock of Company or any Stock Rights. To Company's actual knowledge, there are
not outstanding any options, warrants, subscriptions, rights (including
conversion or preemptive rights or first refusal rights) or agreements for the
purchase or acquisition from Buyer of the Securities, except for this Agreement.
Except as contemplated by this Agreement, Company is not a party or subject to
any agreement or understanding and, to Company's actual knowledge, there is no
agreement or understanding between any persons or entities, which affects or
relates to the voting or giving of written consents with respect to the
Securities. The Securities were validly issued, were fully paid for and are
non-assessable.

          5.5     Capitalization.
                  --------------

               5.5.1 The authorized, issued and outstanding capital stock of
     Company is as set forth on Schedule 5.5.1. There is no capital stock of
                                --------------
     Company outstanding

                                        6   STOCK AND WARRANT PURCHASE AGREEMENT
<PAGE>
     except as set forth in Schedule 5.5.1. No action has been taken by Company,
     the Board or the Shareholders to authorize or issue any other capital
     stock. All issued and outstanding shares of capital stock of Company have
     been duly authorized and validly issued, are fully paid and nonassessable
     and were issued in accordance with the registration or qualification
     provisions of the 1933 Act, and any relevant state securities laws, or
     pursuant to valid exemptions therefrom.

               5.5.2 Schedule 5.5.2 contains a list of all outstanding (i)
                     --------------
     subscriptions, options, calls, warrants or any other rights, whether or not
     currently exercisable, to acquire any shares of the capital stock or other
     securities of Company; (ii) outstanding securities, instruments or
     obligations that are or may become convertible into or exchangeable or
     exercisable for any shares of the capital stock or other securities of
     Company; and (iii) contracts pursuant to which Company is or may become
     obligated to sell or otherwise issue any shares of its capital stock or
     other securities (each, a "Stock Right").

               5.5.3 Company has no obligation, contingent or otherwise, to
     purchase, redeem or otherwise acquire any capital stock, Stock Right or
     other security or to pay any dividend or make any distribution in respect
     thereof.

               5.5.4 There are no outstanding stock appreciation, phantom stock
     or similar rights with respect to Company.

          5.6     Financial Statements. Company has delivered to each Buyer its
                  --------------------
balance sheet as of August 6, 2004 (the "Balance Sheet"). The Balance Sheet
                                         -------------
fairly presents the consolidated financial condition of Company as of August 4,
2004. Except as set forth in the Balance Sheet or referenced in this Agreement,
Company has no material liabilities, contingent or otherwise, other than (i)
liabilities incurred in the ordinary course of business subsequent to August 4,
2004, and (ii) obligations under contracts and commitments incurred in the
ordinary course of business which, in both cases, individually or in the
aggregate, are not material to the financial condition of Company.

          5.7     Patents, Trademarks, Copyrights. To the best of its knowledge,
                  -------------------------------
Company has sufficient title and ownership of or possesses adequate licenses or
other rights to use all patents, patent applications, trademarks, trademark
applications, service marks, service mark applications, trade names, copyrights,
processes, formulae, trade secrets, customer lists, information, proprietary
rights and know how (collectively, "Intellectual Property") necessary to the
                                    ---------------------
conduct of its business as currently conducted, and no claim is pending or, to
Company's knowledge, threatened to the effect that the operations of Company
infringe upon or conflict with the asserted rights of any other person under any
Intellectual Property, and to Company's knowledge there is no basis for any such
claim (whether or not pending or threatened). Other than as set forth on
Schedules 5.7, Company is not obligated to make any payments by way of
-------------
royalties, fees or otherwise to any owner or licensor of any patent, trademark,
trade name, copyright, trade secret or other intangible asset, with respect to
the use thereof or in connection with the conduct of its business, or otherwise.
Except as set forth on the Schedule 5.7, Company has not granted to any third
                           ------------
party any option, license or other right of any kind to its Intellectual
Property. Company has not received any communications alleging that it has
violated or, by

                                        7   STOCK AND WARRANT PURCHASE AGREEMENT
<PAGE>
conducting its business as proposed, would violate any Intellectual Property
rights of any other person or entity. Company is not aware of any violation or
infringement by a third party of any of its Intellectual Property. Each patent
and patent application owned by Company is set forth on Schedule 3.1.
                                                        ------------

          5.8     Litigation, Etc. Except as set forth on Schedule 5.8, there is
                  ----------------                        ------------
no action, suit, proceeding or investigation pending or, to Company's knowledge,
threatened, against Company or, to its knowledge, its officers, directors,
employees or stockholders, as such, including any which questions the validity
of this Agreement, the Investor Rights Agreement or the New Warrant, or the
right of Company to enter into any of them, or to consummate the transactions
contemplated hereby or thereby, or which might cause, either individually or in
the aggregate, a Material Adverse Effect. The foregoing includes to Company's
knowledge, actions pending or threatened involving the prior employment of any
of Company's employees or consultants, their use in connection with Company's
business of any information or techniques allegedly proprietary to any of their
former employers, or their obligations under any agreements with prior
employers. Company is not a party to any order, writ, injunction, judgment or
decree of any court or government agency or instrumentality. There is no action,
suit, proceeding or investigation by Company currently pending or which Company
intends to initiate. Company is not in default with respect to any order, writ,
injunction or decree known to or served upon Company of any court or of any
federal, state, municipal or other governmental department, commission, board,
bureau, agency or instrumentality, domestic or foreign.

          5.9     Brokers. Company has not agreed or become obligated to pay, or
                  --------
has taken any action that might result in any person or entity claiming to be
entitled to receive, any brokerage commission, finder's fee or similar
commission or fee in connection with the Transactions, except as disclosed in
Schedule 5.9.
-------------

     6.     Representations and Warranties of Seller. Seller represents and
            -----------------------------------------
warrants to each Buyer and Company as follows:

          6.1     Organization and Good Standing. Seller is duly formed and
                     ----------------------------
validly existing under the laws of the State of New York.

          6.2     Authority. Each Transaction Agreement constitutes the legal,
                  ----------
valid, and binding obligation of Seller, enforceable against Seller in
accordance with its terms, except as enforceability may be limited or affected
by applicable bankruptcy, insolvency, reorganization or other laws of general
application relating to or affecting the rights of creditors and except as
enforceability may be limited by rules of laws governing specific performance,
injunctive relief or other equitable remedies. Seller has full power, authority,
and capacity to execute and deliver each Transaction Agreement and to perform
its obligations thereunder.

          6.3     No Conflict. Neither the execution and delivery by Seller of
                  ------------
the Transaction Agreements nor the performance of Seller's obligations
thereunder will, directly or indirectly (with or without notice, lapse of time,
or both): (a) violate any provision of Seller's organizational documents or any
resolution adopted by the its partners; (b) violate any legal requirement to
which Company is subject; (c) violate or breach any provision of, or give any
person the right to declare a material default or exercise any material remedy
under, or to

                                        8   STOCK AND WARRANT PURCHASE AGREEMENT
<PAGE>
accelerate the maturity or performance of, or to cancel, terminate, or modify,
any material contract as to which Company or any of its assets is subject; or
(d) result in the imposition or creation of any lien upon or with respect to any
of Seller's assets.

          6.4     Ownership of Securities. The Shares are represented by the
                  ------------------------
certificates listed on Schedule 6.4 and the Warrants are represented by the
                       ------------
warrants listed on Schedule 6.4. Seller owns and has good and marketable title
                   -------------
to the Securities free and clear of all liens, claims, restrictions on transfer,
pledges, security interests or other encumbrances. The foregoing representation
and warranty is based on (a) the assumption that the Securities were acquired by
PNW free and clear of any liens, claims, restrictions on transfer, pledges,
security interests or other encumbrances (collectively "Liens") pursuant to the
                                                        -----
Overbid Contract, and (b) the fact that (i) neither PNW nor Seller has placed
any Liens or allowed any person or entity to place any Liens on the Securities
since PNW acquired the Securities pursuant to the Overbid Contract and (ii)
Seller has no knowledge of any Liens on the Securities. Seller is not a party or
subject to any agreement or understanding which affects or relates to the
voting, transfer or giving of written consents with respect to the Securities.

          6.5     Acquisition of Securities. PNW, a Delaware limited liability
                  --------------------------
company and an indirect wholly-owned subsidiary of Goldman Sachs Group, Inc., a
Delaware corporation of which Seller is a subsidiary, acquired the Securities
from Thomas F. Lennon, Receiver of Capital Consultants, LLC, an Oregon limited
liability company in the cases of Securities and Exchange Commission v. Capital
Consultants, LLC, et al. (Case No. 00-1290-KI) and Elaine L. Chow, Secretary of
Department of Labor v. Capital Consultants, LLC, et al. (Case No. 00-1291-KI)
(the "Receiver") as assignee of MTGLQ Investors, LP's right to purchase the
      --------
Securities pursuant to the Overbid Purchase Contract, dated January 24, 2002
(the "Overbid Contract"), between MTGLQ Investors, LP and the Receiver, which
      ----------------
Overbid Contract was approved by U.S. District Court Judge King on January 24,
2002. Seller purchased the Securities from PNW in consideration of $1.00
pursuant to the Assignment, dated February 6, 2002, by PNW to Seller (the
"Assignment").
 ----------

          6.6     No Adverse Claims. Upon Buyers' acquiring possession of the
                  ------------------
Securities and paying the purchase price therefor pursuant to this Agreement,
each Buyer (assuming that such Buyer does not have notice of any "adverse
claim," within the meaning of Section 8-105 of the Uniform Commercial Code, to
the Securities acquired by such Buyer) will acquire good and marketable title to
the Securities purchased by Buyer pursuant to this Agreement and will acquire
such Securities (including all rights that Seller had or has the power to
transfer in such Securities) free and clear of any adverse claim within the
meaning of Section 8-102 of the Uniform Commercial Code. The foregoing
representation and warranty is based on (a) the assumption that the Securities
were acquired by PNW free and clear of any adverse claim within the meaning of
Section 8-102 of the Uniform Commercial Code pursuant to the Overbid Contract
and (b) the fact that Seller has no notice of any adverse claim within the
meaning of Section 8-105 of the Uniform Commercial Code.

          6.7     No Obligations to Seller. Other than the Company's obligations
                  -------------------------
and covenants to Seller pursuant to the New Warrant, the Co-Sale Agreement and
this Agreement, Company is not indebted or otherwise liable to or obligated to
perform any covenant for the benefit of Seller or any of its affiliates pursuant
to any agreement, oral or written, or otherwise,

                                        9   STOCK AND WARRANT PURCHASE AGREEMENT
<PAGE>
regardless of whether or not such indebtedness, liability or obligation
unmatured, unaccrued, unasserted, contingent, indirect, conditional, due or
implied.

          6.8     Due Diligence. Seller has been and is solely responsible for
                  --------------
its own due diligence investigation and evaluation of the value of the
Securities and Company's business, products, financial condition, viability and
prospects.

          6.9     No Other Representations and Warranties. Seller confirms that
                  ----------------------------------------
neither Seller nor any of its affiliates or agents have made any representations
or warranties concerning the Securities or Company other than as specifically
set forth in this Agreement. With respect to Buyer's purchase of Securities,
Seller is not relying on any representations provided by Buyer or any of its
affiliates or agents other than Buyer's representations and warranties in this
Agreement.

          6.10     No Brokers. Seller has not engaged and is not liable to any
                   -----------
broker or finder in connection with this Agreement and the transactions
contemplated hereby. Seller shall protect, defend, indemnify, and hold Buyers
and Company harmless for, from and against any and all claims, liabilities or
demands with respect to any commissions, fees or other compensation asserted as
a result of Seller's actions in connection with this Agreement.

     7.     General Provisions.
            -------------------

          7.1     Further Assurances. Each party shall execute or cause to be
                  -------------------
delivered to each other party hereto such instruments and other documents, and
shall take such other actions, as such other party may reasonably request for
the purpose of carrying out or evidencing any of the Transactions.

          7.2     Binding Effect. This Agreement and the transactions and other
                  ---------------
agreements contemplated hereby will be binding upon and inure to the benefit of
the parties and their respective heirs, personal representatives,
administrators, successors, and permitted assigns.

          7.3     Governing Law. This Agreement will be governed by and
                  --------------
construed in accordance with the laws of the State of Oregon.

          7.4     Entire Agreement. The Transaction Agreements contain the
                  -----------------
entire agreement with respect to the transactions contemplated by this Agreement
and supersede all prior and contemporaneous agreements between or among the
parties with respect to such transactions.

          7.5     Amendment. This Agreement may not be modified or amended
                  ----------
except by the written agreement of the party against whom enforcement is sought.

          7.6     Severability. If any term or provision of this Agreement is
                  -------------
found by a court of competent jurisdiction to be invalid or unenforceable, the
remainder of this Agreement will not be affected thereby, and each term or
provision of this Agreement will be valid and enforceable to the fullest extent
permitted by law.

                                       10   STOCK AND WARRANT PURCHASE AGREEMENT
<PAGE>
          7.7     Waiver. Failure of any party at any time to require
                  -------
performance of any provision of this Agreement will not limit such party's right
to enforce such provision, nor will any waiver of any breach of any provision of
this Agreement constitute a waiver of any succeeding breach of such provision or
a waiver of such provision itself.

          7.8     Attorneys' Fees. If a suit, action, or other proceeding of any
                  ----------------
nature whatsoever (including any proceeding under the U.S. Bankruptcy Code) is
instituted to enforce or interpret any provision of this Agreement or in
connection with any dispute hereunder, the prevailing party will be entitled to
recover such amount as the court may adjudge reasonable as attorneys' fees and
all other fees, costs, and expenses of litigation at trial or any appeal or
review, in addition to all other amounts provided by law.

          7.9     Counterparts and Facsimile Delivery. This Agreement may be
                  ------------------------------------
executed in counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument. Any signature page
delivered by facsimile transmission shall be binding to the same extent as an
original signature page, with regard to any agreement subject to the terms
hereof or any amendment thereto. Any party who delivers such a signature page
agrees to later deliver an original counterpart to any party who requests it.

          7.10     Further Assurances. From time to time, upon request of either
                   -------------------
party, the other party will execute, acknowledge, and deliver such documents and
undertake such actions as may be reasonably requested in order to fulfill the
transactions contemplated by this Agreement.

          7.11     Independent Nature of Buyers' Obligations and Rights. The
                   -----------------------------------------------------
obligations of each Buyer under the Transaction Agreements are several and not
joint with the obligations of any other Buyer, and no Buyer shall be responsible
in any way for the performance of the obligations of any other Buyer under any
such agreement. Nothing contained in any Transaction Agreement, and no action
taken by any Buyer pursuant thereto, shall be deemed to constitute the Buyers as
a partnership, an association, a joint venture or any other kind of entity, or
create a presumption that the Buyers are in any way acting in concert or as a
group with respect to such obligations or the transactions to be consummated
pursuant to the Transaction Agreements. Each Buyer shall be entitled to
independently protect and enforce its rights, including the rights arising out
of the Transaction Agreements, and it shall not be necessary for any other Buyer
to be joined as an additional party in any proceeding for such purpose. Each
Buyer represents that it has been represented by its own separate legal counsel
in its review and negotiation of the Transaction Agreements. For reasons of
administrative convenience only, Buyers acknowledge and agree that they and
their respective counsel have chosen to communicate with Seller, Company and
their respective counsel through Bingham McCutchen LLP ("Bingham"), but neither
                                                         -------
Bingham nor Seller's or Company's counsel represent any of Buyers in this
transaction, except that Bingham represents Sherbrooke and Mark Capital.

          7.12     Independent Nature of Company and Seller Obligations and
                   --------------------------------------------------------
Rights. The obligations of Company and Seller under the Transaction Agreements
-------
are several and not joint, and neither shall be responsible in any way for the
performance of the obligations of the other under any such agreement. Seller
shall not be liable to Buyers for any breach of a representation, warranty or
covenant of Company under any of the Transaction Agreements.

                                       11   STOCK AND WARRANT PURCHASE AGREEMENT
<PAGE>
          7.13     Construction.
                   -------------

               7.13.1 For purposes of this Agreement, whenever the context
     requires: the singular number shall include the plural and vice versa; the
     masculine gender shall include the feminine and neuter genders; the
     feminine gender shall include the masculine and neuter genders; and the
     neuter gender shall include the masculine and feminine genders.

               7.13.2 The parties hereto agree that any rule of construction to
     the effect that ambiguities are to be resolved against the drafting party
     shall not be applied in the construction or interpretation of this
     Agreement.

               7.13.3 Except as otherwise indicated, all references in this
     Agreement to "Sections," "Schedules" and "Exhibits" are intended to refer
     to Sections of, Schedules to and Exhibits to this Agreement.

          7.14     Waiver of Protective Provision.  Seller and Buyer consent to
                   -------------------------------
Company's actions pursuant to this Agreement notwithstanding the provisions  of
Section 4.3.4.2 of Company's Amended and Restated Articles of Incorporation.
In addition, Seller and Buyer consent to the issuance by Company of the warrants
described in Schedule 5.9.
             -------------

          7.15     Waiver of Filing Requirement.   Seller and Buyer irrevocably
                   -----------------------------
waive and release Company from its obligations under Section 7 of the
Registration Agreement for the period April 1, 2002 through the Agreement Date.

          7.16     Notices, Etc. All notices and other communications required
                   -------------
or permitted hereunder shall be in -writing and shall be deemed given and served
for all purposes when personally delivered, three business days after a writing
is deposited in the United States mail, first class postage prepaid, or one
business day after a writing is deposited with a nationally recognized overnight
courier service for overnight delivery, delivery fees prepaid to the address set
forth below, or to such other address as such party shall have specified in a
written notice given to the other parties hereto:

     (a)  if to a Buyer, to such Buyer's address on file with the Company,

     (b)  if to the Company:

                         A-Fem  Medical  Corporation
                         P.O. Box 2900
                         Wilsonville, OR 97070
                         Attention: William Fleming

     (c)  if to Seller:

                         Goldman, Sachs & Co.
                         85 Broad Street
                         New York, NY 10004
                         Attention: Lance West, Managing Director

                                       12   STOCK AND WARRANT PURCHASE AGREEMENT
<PAGE>
     with a copy to:

                         Obsidian Finance Group, LLC
                         PO Box 3510
                         12 River Road
                         Sunriver, OR 97707
                         Attention: Kevin D. Padrick

       [Balance of page intentionally left blank. Signature page follows.]

                                       13   STOCK AND WARRANT PURCHASE AGREEMENT
<PAGE>
     The parties have executed this Stock and Warrant Purchase Agreement as of
the date first above written.

<TABLE>
<CAPTION>
<S>                                    <C>
A-FEM MEDICAL CORPORATION              GOLDMAN, SACHS & CO.

By:                                    By:
   ----------------------------------     ----------------------------------
Name:                                  Name:
     --------------------------------       --------------------------------
Its:                                   Its:
    ---------------------------------      ---------------------------------

SHERBROOKE PARTNERS, LLC               MARK CAPITAL, LLC

By:                                    By:
   ----------------------------------     ----------------------------------
      Matthew Balk, Managing Member          Evan Levine, Managing Member

-------------------------------------  -------------------------------------
MATTHEW BALK CUST FOR DAVID BALK       MATTHEW BALK CUST FOR DANIEL BALK

-------------------------------------  -------------------------------------
EVAN LEVINE CUST FOR NATHANIEL LEVINE  EVAN LEVINE CUST FOR ALEXANDER LEVINE

-------------------------------------  -------------------------------------
RICHARD MELNICK                        JOAN ROBBINS

-------------------------------------  -------------------------------------
JONATHAN BALK                          ERIC SINGER

-------------------------------------  -------------------------------------
EVAN LEVINE FBO JULIA SELENKO          EVAN LEVINE FBO MAX SELENKO

-------------------------------------  -------------------------------------
EVAN LEVINE FBO KEIRA MEZEI            EVAN LEVINE FBO REECE MEZEI

DAVID AND MARILYN BALK JTWROS          ROBERT J. & SANDRA S. NEBORSKY JTWROS

   ----------------------------------     ----------------------------------
   David Balk                             Robert J. Neborsky

   ----------------------------------     ----------------------------------
   Marilyn Balk                           Sandra S. Neborsky

-------------------------------------  -------------------------------------
CRAIG PIERSON                          ETHAN BALK

-------------------------------------  -------------------------------------
MICHAEL KOOPER                         BRIAN CORDAY

CGA RESOURCES, LLC
                                       -------------------------------------
                                       MICHAEL LOWE
By:
   ----------------------------------
    Cass Gunther Adelman, Sole Member
</TABLE>

           SIGNATURE PAGE TO THE STOCK AND WARRANT PURCHASE AGREEMENT

<PAGE>
<TABLE>
<CAPTION>
                                    EXHIBIT A
                                       TO
                      STOCK AND WARRANT PURCHASE AGREEMENT

                                 LIST OF BUYERS

-----------------------------------------------------------------------------------
                                                                    ALLOCATION OF
              BUYER                    STATE    SHARES    WARRANTS  PURCHASE PRICE
-----------------------------------------------------------------------------------
<S>                                    <C>    <C>        <C>        <C>
-----------------------------------------------------------------------------------
Mark Capital, LLC                      CA     1,750,000    642,006  $     46,715.64
-----------------------------------------------------------------------------------
Sherbrooke Partners, LLC               NY     1,750,000    462,006  $     46,715.64
-----------------------------------------------------------------------------------
CGA Resources, LLC                     NY       700,000    100,000  $     18,686.26
-----------------------------------------------------------------------------------
Richard Melnick                        CO       375,000          0  $     10,010.50
-----------------------------------------------------------------------------------
Matthew Balk cust for Daniel Balk      NY       300,000          0  $      8,008.40
-----------------------------------------------------------------------------------
Matthew Balk cust for David Balk       NY       300,000          0  $      8,008.40
-----------------------------------------------------------------------------------
David and Marilyn Balk JTWROS          NY       275,000          0  $      7,341.03
-----------------------------------------------------------------------------------
Jonathan Balk                          NY       250,000          0  $      6,673.67
-----------------------------------------------------------------------------------
Evan Levine cust for Nathaniel Levine  CA       250,000          0  $      6,673.67
-----------------------------------------------------------------------------------
Evan Levine cust for Alexander Levine  CA       250,000          0  $      6,673.67
-----------------------------------------------------------------------------------
Michael Lowe                           NY       200,000          0  $      5,338.93
-----------------------------------------------------------------------------------
Robert J. & Sandra S. Neborsky JTWROS  CA       200,000          0  $      5,338.93
-----------------------------------------------------------------------------------
Brian Corday                           GA       200,000          0  $      5,338.93
-----------------------------------------------------------------------------------
Craig Pierson                          FL       200,000          0  $      5,338.93
-----------------------------------------------------------------------------------
Eric Singer                            NY       192,135          0  $      5,128.98
-----------------------------------------------------------------------------------
Joan Robbins                           CA       100,000          0  $      2,669.47
-----------------------------------------------------------------------------------
Ethan Balk                             MA       100,000          0  $      2,669.47
-----------------------------------------------------------------------------------
Evan Levine FBO Julia Selenko          CA        25,000          0  $        667.37
-----------------------------------------------------------------------------------
Evan Levine FBO Max Selenko            CA        25,000          0  $        667.37
-----------------------------------------------------------------------------------
Evan Levine FBO Keira Mezei            CA        25,000          0  $        667.37
-----------------------------------------------------------------------------------
Evan Levine FBO Reece Mezei            CA        25,000          0  $        667.37
-----------------------------------------------------------------------------------

                              TOTALS:         7,492,135  1,204,012  $    200.000.00
                                              =========  =========  ===============
</TABLE>

<PAGE>
                                    EXHIBIT B
                                       TO
                      STOCK AND WARRANT PURCHASE AGREEMENT

                      CERTIFICATE REGARDING SUBJECT PATENTS

<PAGE>
                                    EXHIBIT C
                                       TO
                      STOCK AND WARRANT PURCHASE AGREEMENT

                        WARRANT TO PURCHASE COMMON STOCK

<PAGE>
                                    EXHIBIT D
                                       TO
                      STOCK AND WARRANT PURCHASE AGREEMENT

                            INVESTOR RIGHTS AGREEMENT

<PAGE>
                                    EXHIBIT E
                                       TO
                      STOCK AND WARRANT PURCHASE AGREEMENT

                            CO-SALE RIGHTS AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00093-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00093-of-00352.parquet"}]]