Document:

aafinancial8kex108_462009.htm

     

    
      Exhibit 
10.8

       

       

      
        [[University of Colraod Stamp]]

        
 

        This
Exclusive License Agreement (the "Agreement") is made and entered
into this 31of March,
2008, (the "Effective Date") by and between the Regents of the University
of Colorado, a body
corporate, having its principal office at 1800 Grant Street, 8th Floor, Denver, CO, 80203 (hereinafter "University")
and MaxCure Pharmaceuticals, Inc., a Colorado corporation having its principal office at 5350 S.
Roslyn Street, Suite 300, Greenwood Village, CO 80111 (hereinafter "Licensee") (together
referred to as "Parties").

         

        WHEREAS,
University is the owner of
certain Patent Rights (as later defined herein) relating to University Case No.
CU9014H, developed by University employee Leland Shapiro; University Case No.
CU1428H developed by Leland Shapiro and Gregory B. Pott; and University Case No. CU1697H, developed by Leland
Shapiro and has the right to grant licenses under said Patent Rights, and;

         

        WHEREAS,
Licensee is interested in
licensing and further developing the Patent Rights for commercial applications,
and;

         

        WHEREAS,
University desires to have
the Patent Rights developed and commercialized to benefit the public and is
willing to grant a license hereunder;

         

        NOW,
THEREFORE, in
consideration of the promises and the mutual covenants contained herein, the
parties hereto agree as follows:

         

        SECTION 1.
DEFINITIONS

         

        For the purposes of
this Agreement, the following words and phrases shall have the following
meanings:

         

        
          	
                  1.1 

                	
                  "Affiliate(s)"
      shall mean every corporation or entity, which, directly or indirectly, or
      throughone or more
      intermediaries, controls, is controlled by, or is under common control
      with Licensee, as well as every officer and director of any such
      corporation or entity. For the purposes of this definition, the term
      "control" means (a) beneficial ownership of at least fifty percent (50%)
      of the voting securities of a business organization with voting
      securities, or (b) a fifty percent (50%) or greater interest in the net
      assets or profits of a partnership or business organization without voting
      securities.

                

        

         

        
          	
                  1.2

                	
                  "Associate(s)"
      means any individual working under the direction, supervision, and/or
      controlof the
      Investigator(s).

                

        

         

        
          	
                  1.3

                	
                  "Investigator(s)"
      means Dr. Leland Shapiro and/or Dr. Gregory B. Pott, as long as
      eachInvestigator
      remains employed by University.

                

        

         

        
          	
                  1.4

                	
                  "Fields of
      Use" shall mean the fields of use identified inExhibit
      A.

                

        

         

        
          	
                  1.5

                	
                  "Improvement"
      shall mean any invention, the practice of which would also require
      thepractice of
      an invention claimed in or covered by the Patent Rights and which is a
      modification of the inventions claimed in or covered by the Patent Rights,
      made by Investigator(s) or
Associate(s).

                

        

        

        
          
            
               

            

            
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                  1.6 

                	
                  "Know-How"
      shall mean University's proprietary information which has been
      created,developed,
      and fixed in any tangible medium of expression, including, but not limited
      to, technical information, specifications, standards, devices, models,
      techniques, processes, methods, formulae, documents, drawings and
      materials ("Technical Information"), as well as all information,
      knowledge, assistance, trade practices and secrets, and improvements
      thereto, divulged, disclosed, or in any way communicated to Licensee under
      this Agreement, unless such information was, at the time of disclosure, or
      thereafter becomes a part of the general knowledge or literature which is
      generally available for public use from other lawful sources and which is
      directly related to the use of, or desirable for the practice of, or
      assists in the use or practice of, the licensed Patent Rights. Know-How
      specifically includes, without limitation, any Technical Information that
      relates to the discovery of the underlying technology covered by the
      Patent Rights and any Technical Information including without limitation,
      any publications, patents and/or patent applications that may preclude or
      interfere with Licensee's rights to develop, execute or commercialize the
      Patent Rights.

                

        

         

        
          	
                  1.7 

                	
                  "Licensed
      Process(es)" shall mean any process, art, or method which is covered in
      wholeor in part by
      an issued, unexpired claim or a pending claim contained in the Patent
      Rights or that incorporates or makes use of
  Know-How.

                

        

         

        
          	
                  1.8 

                	
                  "Licensed
      Product(s)" shall mean any:

                

        

         

        
          	
                   
      

                	
                  (a)product or
      part thereof that is covered in whole or in part by an issued, unexpired
      claim or a pending claim contained in the Patent Rights or that
      incorporates or makes use of Know-How;
or

                

        

         

        
          	
                   
      

                	
                  (b)product,
      chemical composition, apparatus, or part thereof that is manufactured or
      discovered by using a Licensed Process(es) or is employed to practice a
      Licensed Process(es); or

                

        

         

        
          	
                   
      

                	
                  (c)product
      produced, discovered, manufactured or created through the use of any
      Licensed Product defined in §1.9(a) or
§1.9(b).

                

        

         

        
          	
                  1.9

                	
                  "Net Sales"
      shall mean the total gross receipts for sales of Licensed Products or
      practice ofLicensed
      Processes by or on behalf of Licensee, and its Affiliates, and from
      leasing, renting, or otherwise making Licensed Products available to
      others without sale or other dispositions, whether invoiced or not, less
      returns and allowances, packing costs, insurance costs, freight out, taxes
      or excise duties imposed on the transaction (if separately invoiced and
      paid), and wholesaler and cash discounts in amounts customary in the trade
      to the extent actually granted. No deductions shall be made for
      commissions, or for the costs of collections. Net
      Sales shall also include the fair market value of any non-cash
      consideration received by Licensee, and its Affiliates, for the sale,
      lease, or transfer of Licensed Products or Licensed
    Processes.

                

        

         

        
          
            	
                    1.10 

                  	
                    "Patent
      Rights" shallmean
      all of the following University intellectual property and any
      utility applications, PCT applications, continuations, improvements
      and divisional applications thereof, patents issuing on any of the
      foregoing and all reissues, reexaminations
or

                  

          

        

        

        
          
            
               

            

            
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        extensions of any
of the foregoing, and any and all foreign patents and patent applications
relating to any of the foregoing:

         

        
          	
                   
      

                	
                  a.the United
      States and foreign patents and/or patent applications and/or provisional
      patent applications listed in Exhibit
      B;

                

        

         

        
          	
                   
      

                	
                  b.United
      States and foreign patents issued from the applications listed in Exhibit
      B and from divisionals and continuations of these
      applications;

                

        

         

        
          	
                   
      

                	
                  c.claims of
      U.S. and foreign continuation-in-part applications, and of the resulting
      patents, which are directed to subject matter specifically described in
      the U.S. and foreign applications listed in Exhibit
      B;

                

        

         

        
          	
                   
      

                	
                  d.claims of
      all foreign patent applications, and of the resulting patents, which are
      directed to subject matter specifically described in the United States
      patents and/or patent applications described in this Subsection;
      and

                

        

         

        
          	
                   
      

                	
                  e.any
      reissues of United States patents described in this
      Subsection.

                

        

         

        1.11 "Territory"
shall mean the geographical area identified in Exhibit
A.

         

        1.12
 "Commercial Sale" shall mean sale of Licensed Product to a purchaser other
than non-profit research institutions purchasing for research purposes and
Governmental agencies.

         

        SECTION 2. GRANT OF
LICENSE

         

        2.1 University
hereby grants and Licensee and Affiliates accept, during the term and subject to
the
terms and conditions of this Agreement

         

        
          	
                   
      

                	
                  a.a
      non-exclusive, royalty-bearing license to use the Know-How in the
      Territory and within the Fields of Use;
and

                

        

         

        
          	
                   
      

                	
                  b.an
      exclusive, royalty-bearing license to University's Patent Rights in the
      Territory to make, use, sell, lease, offer to sell, and import any
      Licensed Products in the Fields of Use and to practice any Licensed
      Processes in the Fields of Use.

                

        

         

        
          	
                  2.2

                	
                  All Know-How
      in the possession of University as of the Effective Date shall be
      delivered toLicensee
      prior to or on the Effective Date in written, oral or other form of
      communication. University shall its best efforts to ensure that Licensee
      is provided with all Know-how due under this
  Agreement.

                

        

         

        
          	
                  2.3

                	
                  Notwithstanding
      the terms as set forth in Section 2.2, if, at any time during the Term of
      thisAgreement,
      University discovers Know-How that should have been provided pursuant to
      Section 2.2, University shall promptly notify Licensee of the omission and
      provide any such Know-How due under Section 2.2 to Licensee within thirty
      days of such written notice.

                

        

         

        
          	
                  2.4

                	
                  Notwithstanding
      the terms as set forth in Section 2.2, if, at any time during the Term of
      thisAgreement,
      Licensee discovers Know-How that should have been provided pursuant to
      Section 2.2, Licensee shall request the Know-How in writing from
      University and University shall provide any such Know-how due under
      Section 2.2 to Licensee within thirty days of the written
      request.

                

        

         

        
          	
                  2.5

                	
                  This
      Agreement confers no license or rights by implication, estoppel, or
      otherwise underany patent
      applications or patents of University other than licensed Patent Rights
      regardless of whether such patents are dominant or subordinate to licensed
      Patent Rights.

                

        

        

        
          
            
               

            

            
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                  2.6

                	
                  The license
      grant pursuant to Section 2.1 shall remain in effect regardless of any
      change instatus of the
      Investigators, including without limitation, absence or withdrawal of one
      or both Investigators from further development or execution of the Patent
      Rights.

                

        

         

        
          	
                  2.7

                	
                  In the event
      that one or both Investigators are withdrawn from further development
      orexecution of
      the Patent Rights, Licensee reserves the right to select an appropriate
      replacement, the replacement to be selected at Licensee's
      discretion.

                

        

         

        SECTION 3. IMPROVEMENTS
& INDEPENDENT INVENTIONS

         

        
          	
                  3.1

                	
                  Improvements:
      In the event that University develops any Improvements to the
      inventions claimed in
      the Patent Rights, then each such Improvement will be considered part of
      this Agreement for no additional
consideration.

                

        

         

        
          	
                  3.2

                	
                  Independent
      Inventions:

                

        

         

        
          	
                   
      

                	
                  a.Provided
      that the Investigator(s) is/are at the time obligated to assign
      intellectual property to University and is/are involved as employee(s),
      board member(s), consultant to or 10% or greater shareholder of Licensee,
      in the event that the Investigator(s) or any Associates make any invention
      in the Fields of Use, the practice of which would not require the practice
      of an invention claimed in or covered by the Licensed Patent Rights
      ("Independent Invention"), then provided such Independent Invention is not
      subject to any prior contractual or legal obligations, the University
      hereby grants to Licensee an exclusive option ("Option") to obtain the
      exclusive, worldwide, commercial rights to each Independent Invention on
      terms and conditions to be negotiated in good faith by the Parties
      following the exercise by Licensee of the
  Option.

                

        

         

        
          	
                   
      

                	
                  b.University
      shall disclose each Independent Invention to Licensee in reasonable
      written detail after the University's Technology Transfer Office receives
      notification from the Investigator(s) that such Independent Invention has
      been made, and Licensee shall have ninety (90) days following written
      receipt of such invention disclosure to exercise the Option with respect
      to such Independent Invention by delivering to University written notice
      indicating that Licensee desires to exercise the Option. Upon such notice,
      the parties shall negotiate in good faith for a period of up to sixty (60)
      days commercially reasonable terms and conditions for a license under the
      intellectual property rights relating to such Independent
      Invention.

                

        

         

        SECTION 4.
SUBLICENSING

         

        
          	
                  4.1

                	
                  Upon prior
      written approval by University, such approval not to be unreasonably
      withheld,Licensee may
      sublicense to one or more third parties, the rights granted in Section 2
      subject to the following
limitations:

                

        

         

        
          	
                   
      

                	
                  a.

                	
                  Licensee
      agrees that any sublicenses granted by it shall impose restrictions and
      conditions
      upon sublicensees equivalent in scope to those imposed upon
      Licensee;

                

        

        
           

          
            	
                     
      

                  	
                    b.

                  	Licensee agrees that, in the event
      University terminates this Agreement pursuant to Subsection 13.2(b), any
      sublicenses granted shall be directly enforceable by University;

          

           

        

        
          	
                   
      

                	
                  c.

                	
                  Licensee
      agrees that any sublicenses granted shall adequately protect University's
      security and
      property interest in University's Know-How and Patent Rights;
      and

                

        

         

        
          
          

        

        

        
          
            
               

            

            
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                    d.

                  	
                    Any sublicenses granted by
      Licensee shall provide only for cash consideration from sublicensees
      unless University has expressly consented otherwise in writing in advance.
      Any sublicenses made in other than arm's-length transactions, the value of
      the transaction attributed under this Section to such a transaction shall
      be that which would have been received in an arm's-length transaction,
      based on a like transaction at that
      time.

                     

                    For purposes
      of this Agreement, the term "sublicense" shall mean the license by
      Licensee to a third party of all or a portion of the intellectual property
      rights licensed to it by University hereunder in consideration of payments
      from such sublicensee to Licensee, and shall not include Licensee's
      engagement of or joint venture with subcontractors to perform various
      services for Licensee in connection with its development of the Licensed
      Products and Licensed Processes, including, but not limited to, laboratory
      work, pre-clinical and clinical testing, assistance with the regulatory
      approval process, manufacturing, marketing and other similar product
      development services, provided that such services are for the sole benefit
      of Licensee and such third party does not have any independent use of the
      Patent Rights or Know-How. Licensee agrees to assume all obligations for
      protecting the University's security and property interest in University's
      Know-How and Patent Rights in any such joint venture work consistent with
      the terms of this Agreement.

                  

          

           

        

         

        
          	
                  4.2

                	
                  Licensee
      agrees to forward to University a copy of each fully executed
      sublicenseagreement
      postmarked within thirty (30) days of the execution of such
      agreement.

                

        

         

        SECTION 5. RETAINED
RIGHTS

         

        
          	
                  5.1

                	
                  Government
      Rights:

                

        

         

        
          	
                   
      

                	
                  a.Notwithstanding
      any use of descriptive terms within this Agreement such as "exclusive",
      this Agreement is subject to all of the terms and conditions of Title 35
      U.S.C. §§ 200-204, et seq., ("Bayh-Dole Act") and 37 C.F.R. 401, as such
      may be amended.

                

        

         

        
          	
                   
      

                	
                  b.Further,
      Licensee agrees to take all reasonable action necessary to enable
      University to satisfy its obligations
hereunder.

                

        

         

        
          	
                  5.2

                	
                  University
      Rights:

                

        

         

        
          	
                   
      

                	
                  a.University
      shall have the right to practice the Patent Rights and Know-How for its
      own research and education, including sponsored research, which right
      shall be transferable to other nonprofit or educational institutions;
      provided that University takes reasonable steps to avoid the loss of any
      Patent Rights or any other intellectual property that Licensee does not
      want disclosed, as a result of such activities and takes reasonable steps
      to avoid disclosure of Know-How.

                

        

         

        
          	
                   
      

                	
                  b.University
      recognizes the need for Licensee to protect any information and Know- How
      included in the Patent Rights. University shall have the right to publish
      any information included in the Patent Rights and the Know-How provided
      that University, prior to submission to a third party for publication of
      any information or Know-How included in the Patent Rights ("Proposed
      Submission"), provides written notice of any Proposed Submission to
      Licensee, such written notice to include specifics regarding the
      information to be disclosed in the Proposed Submission and a copy of the
      Proposed Submission. Licensee shall have twenty (20) days
    to

                

        

        

        
          
            
               

            

            
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        review the Proposed
Submission and provide to the University written approval or disapproval for the
Proposed Submission. If Licensee disapproves the Proposed Submission, the
Parties have thirty (30) days from the date of the written notice to negotiate
terms for submission. In the event that the Parties, at the expiration of this
thirty (30) day period, fail to agree upon terms for submission, then the
dispute will be resolved in accordance with Section 14.7 herein.

        
           

          
            	
                     
      

                  	
                    c.University
      shall have the right to respond to any requests received in response to
      any Proposed
      Submissions submitted to a third party for publication under Section
      5.2(b), provided that University, prior to response to any request,
      provides written notice of any response ("Proposed Response") to Licensee,
      such written notice to include specifics regarding the information to be
      disclosed in the Proposed Response, and a copy of the Proposed Response,
      the Proposed Response not to exceed 4 pages in length. Licensee shall have
      ten (10) days to review the Proposed Response and provide to the
      University written approval or disapproval for the Proposed Response. If
      Licensee disapproves the Proposed Response, the Parties have thirty (30)
      days from the date of the written notice to negotiate terms for
      submission. In
      the event that the Parties, at the expiration of this thirty (30)
      day period, fail to agree upon terms for submission, then the dispute will
      be resolved in accordance with Section 14.7
  herein.

                  

          

           

        

         

        SECTION 6. FEES &
ROYALTIES

         

        
          	
                  6.1

                	
                  As
      consideration for the grant of rights under this
  Agreement,

                

        

         

        
          	
                   
      

                	
                  a.Licensee
      agrees to pay to University a nonrefundable and non-creditable license fee
      as set forth in Exhibit
      C.

                

        

         

        
          	
                   
      

                	
                  b.Licensee
      agrees to pay to University an annual, nonrefundable minimum royalty as
      set forth in Exhibit
      C. The minimum annual royalty is due and payable on first business
      day of each calendar year and may be credited against any earned royalties
      due for Net Sales made that year;

                

        

         

        
          	
                   
      

                	
                  c.Licensee
      agrees to pay University royalties as set forth in Exhibit
      C;

                

        

         

        
          	
                  6.2

                	
                  No multiple
      royalties shall be payable because any Licensed Products or
      LicensedProcesses are
      covered by more than one of the Patent
Rights.

                

        

         

        
          	
                  6.3

                	
                  On sales of
      Licensed Products by Licensee to sublicensees or on sales made in other
      thanarm's-length
      transactions, the value of the Net Sales attributed under this Section to
      such a transaction shall be that which would have been received in an
      arm's-length transaction, based on a like transaction at that
      time.

                

        

         

        
          	
                  6.4

                	
                  Payment Due
      Date:

                

        

         

        
          	
                   
      

                	
                  a.Unless
      otherwise provided herein, all payments required under this Agreement
      shall be due within thirty (30) days of written notice from
      University.

                

        

         

        
          	
                   
      

                	
                  b.Payments
      past due shall bear interest at the rate of one and one-half percent (1
      1/2%) per month compounded, or the maximum interest rate allowed by
      applicable law, whichever is less.

                

        

         

        
          	
                   
      

                	
                  c.All
      payments to Colorado are in United States Dollars, made payable to "The
      Regents of the University of Colorado" and mailed
  to:

                

        

        

        
          
            
               

            

            
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        Office of
Technology Transfer 

        University of
Colorado, 

        588 SYS Suite 100,
4740 Walnut Street 

        Boulder, CO
80309

        ATTN: Accounts
Receivable

         

        SECTION 7. REPORTS, RECORDS,
AND AUDITS

         

        
          	
                  7.1

                	
                  Reports:

                

        

         

        
          	
                   
      

                	
                  a.Licensee
      shall, without request by University, within sixty (60) days following the
      end of
      each fiscal quarter of Licensee and sixty (60) days following the end of
      Licensee's fiscal year, render to University written reports of the Net
      Sales of Licensed Products and/or Licensed Processes subject to royalty
      hereunder made during the prior three (3) month period and shall
      simultaneously pay to University the royalties due on such Net Sales, if
      any, in United States Dollars. Licensee shall not be required to provide
      any such reports during the period prior to its initial sale of Licensed
      Products and/or Licensed
Processes.

                

        

         

        
          	
                   
      

                	
                  b.Minimum
      annual royalties, if any, which are due University for any fiscal year,
      shall be paid by
      Licensee along with the written report due under this Agreement with
      respect to such fiscal year.

                

        

         

        
          	
                   
      

                	
                  c.Unless
      otherwise agreed to by the Parties, the written report shall be in the
      substantially
      the same form as Exhibit
      D.

                

        

         

        
          
          

        

         

        
          	
                  7.2

                	
                  Records:

                

        

         

        
          	
                   
      

                	
                  a.Licensee
      shall keep accurate records and shall compel its Affiliates and sublicensees
      to keep accurate records, in sufficient detail to reflect its operations
      under this Agreement and to enable the royalties accrued and payable under
      this Agreement to be
determined.

                

        

         

        
          	
                   
      

                	
                  b.Such
      records shall be retained for at least three (3) years after the close of
      theperiod to
      which they pertain, or for such longer time as may be required to finally
      resolve any question or discrepancy raised by
      University.

                

        

         

         

        
          	
                  7.3

                	
                  Audits:

                

        

         

        
          
            	
                     
      

                  	
                    a.Upon the
      request of University, with reasonable notice, but not more frequently
      than once a year,
      Licensee shall permit an independent public accountant selected and paid
      by University to have access during regular business hours to such records
      as may be necessary to verify the accuracy of royalty payments made or
      payable hereunder.

                     

                    Said
      accountant shall disclose information acquired to University only to the
      extent that it should properly have been contained in the royalty reports
      required under this
Agreement.

                  

          

          
            
               

            

          

        

        
          	
                   
      

                	
                  c.If an
      inspection shows an underreporting or underpayment in excess of five
      percent (5%) for any twelve (12) month period, then Licensee shall
      reimburse University for the cost of the inspection and pay the amount of
      the underpayment including any interest as required by this
      Agreement.

                

        

        
           

        

        
          
          

        

        

        
          
            
               

            

            
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        SECTION 8. CONFIDENTIAL
INFORMATION

         

        
          	
                  8.1

                	
                  Both
      University and Licensee (hereinafter, "Party" or "Parties") shall
      vigilantly protect theconfidential
      information related to the Patent Rights and Know-How from disclosure to
      third parties; and no such disclosure shall be made without the disclosing
      Party's written permission.

                

        

         

        
          	
                  8.2

                	
                  All written
      documents containing confidential information and other material in
      tangible formreceived by
      either Party under this Agreement shall remain the property of the
      disclosing Party, and such documents and materials, together with copies
      of excerpts thereof, shall promptly be returned to disclosing Party upon
      request, except one copy may be retained for archival
      purposes.

                

        

         

        
          	
                  8.3

                	
                  Licensee
      acknowledges that University is subject to the Colorado Open Records
      Act(C.R.S. §
      24-72-201, et seq.). All plans and reports marked "Confidential" shall be
      treated by University as confidential to the extent permitted under §
      24-72-204.

                

        

         

        SECTION
9.
LICENSEE
DUE DILIGENCE OBLIGATIONS

         

        
          	
                  9.1

                	
                  Licensee
      shall use commercially reasonable efforts to bring Licensed Products
      andLicensed
      Processes to market through a thorough, vigorous and diligent program for
      exploitation of the Patent Rights, to develop internal or external
      manufacturing capabilities, to continue active, diligent marketing
      efforts, and to satisfy the needs of such market with the Licensed
      Products and Licensed Processes throughout the life of this
      Agreement.

                

        

         

        
          	
                  9.2

                	
                  Licensee
      acknowledges and agrees to the performance and diligence Milestones
      defined inExhibit
      E provided
      however that
      specific dates for such milestones may be adjusted if required due to developments
      beyond the reasonable control of Licensee. It may be necessary to repeat or redesign
      an experiment (defined for the purpose of this Section 9.2 as "Experimental Delays").
      University hereby recognizes that any such Experimental Delays are beyond the reasonable
      control of Licensee. In the event that Licensee's
      performance is
      adversely affected by any such Experimental Delays, University shall take
      reasonable steps to
      adjust the Milestones accordingly. No additional changes to the dates
      of such Milestones
      will be made without the written consent, which will not be unreasonably
      denied, of
      University. In the event that the Parties fail to agree upon adjustment of
      the Milestones, then the dispute will be resolved in accordance with
      Section 14.7 herein.

                

        

         

        
          	
                  9.3

                	
                  Licensee
      agrees to use commercially reasonable efforts to develop a sublicensing
      programto
      commercialize Licensed Products and Licensed Processes in any Fields of
      Use or Territory that Licensee decides not to exploit for its own
      benefit.

                

        

         

        SECTION
10. PATENT
ADMINISTRATION

         

        
          	
                  10.1 

                	
                  Licensee
      shall reimburse University within thirty (30) days from the Effective Date
      anamount
      representing all patent expenses incurred by University prior to the
      Effective Date as set forth in Exhibit
      C.

                

        

         

        
          	
                  10.2 

                	
                  Licensee
      Rights:

                

        

         

        
          
            
              	
                       
      

                    	
                      a. Licensee
      shall control the preparation, filing, prosecution, and maintenance of any
      and all
      patent applications or patents included in the Patent Rights on or after
      the Effective
      Date and shall furnish copies of relevant patent-related documents
      to

                    

            

            
              
                 

              

            

          

        

        

        
          
            
               

            

            
              Page 8 of
26

              
                

              

            

            
               

            

          

        

         

        
           

          
            
              	
                       
      

                    	
                      
                        University.
      Licensee shall provide University with advance written notice of its plans
      to file or prosecute any such patent applications or patents. University
      shall cooperate with Licensee in providing any additional scientific and
      other information reasonably necessary for Licensee to prepare, file,
      prosecute and maintain such patent applications and patents.

                         

                        University shall have thirty
      (30) business days to review and comment on patent-related
      documents prior to the filing of said
      documents.

                      

                    

            

            
              
                 

              

            

          

        

        
          
            
              	
                       
      

                    	
                      b.Licensee may request that
      University assume primary responsibility for all patentactivities,
      including all costs, associated with the perfection and maintenance of
      Patent Rights. Licensee shall provide University with sixty (60) days'
      advance written notice of such request. In the event University agrees to
      such
request:

                    

            

            
              
                 

              

            

          

        

        
          	
                   
      

                	
                   

                	
                  
                    (i)
      University's patent counsel shall keep Licensee advised as to the
      status of the Patent Rights by providing Licensee, in a timely manner
      prior to their due date, with copies of all official documents and
      correspondence relating to the prosecution, maintenance, and validity of
      the Patent Rights.

                  

                

        

         

        
          
            
              	
                       
      

                    	
                      (ii) University shall
      consult with Licensee in such prosecution and maintenance, hall
      diligently seek Licensee's advice on all matters pertaining to the Patent
      Rights, shall diligently seek strong and broad claims under the Patent
      Rights, and shall not abandon prosecution of any patent application
      without first notifying Licensee sixty (60) days prior to any bar date, of
      University's intention and reason therefore, and providing Licensee with
      reasonable opportunity to assume responsibility for prosecution,
      maintenance and associated costs of such patents and patent
      applications.

                    

            

            
              
                 

              

            

          

        

        
          
            
              	
                       
      

                    	
                      c. No claims of the Patent
      Rights shall be modified, deleted, or abandoned by icensee or
      its patent counsel without the express, prior written approval of
      University, such approval shall not be unreasonably withheld or
      delayed.

                    

            

            
              
                 

              

            

          

        

        
          	
                   
      

                	
                  (i).Licensee's
      obligations under this Subsection shall include, without limitation, an
      obligation to inform University in a timely manner that Licensee will not
      pursue patents in any foreign countries where patent protection may be
      available such that University may prosecute patents in such countries if
      University so desires.

                

        

         

        
          	
                   
      

                	
                  (ii).If
      University pursues such foreign patent protection, then from that time
      forward all such subject patent applications and any patents arising there
      from shall no longer be considered Patent Rights under this Agreement and
      Licensee shall forfeit all rights under this Agreement to such patent
      applications and any patents arising there from. University shall be
      responsible for all costs associated with those patent applications and
      patents it decides to pursue and
maintain.

                

        

         

        
          
            
              	
                       
      

                    	
                      d. In the event that Licensee
      fails to diligently control preparation, filing, prosecution, and
      maintenance of any and all patent applications or patents included in the
      Patent Rights after thirty (30) days' written notice by University of any
      such failure, University may provide Licensee with sixty (60) days'
      advance written notice that University wishes to resume control, at
      Licensee's expense, of the preparation, filing, prosecution, and
      maintenance of any and all patent applications or patents included in the
      Patent Rights. Any such failure on behalf of Licensee shall be determined
      by University, acting reasonably, with such determination to be
      based

                    

            

            
              
                 

              

            

          

        

         

        

        
          
            
               

            

            
              Page 9 of
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                      on what would
      be commercially reasonable and customary with respect to patent
      obligations and expectations for a company of Licensee's size, financial
      status and position in the marketplace. If University elects to resume
      such responsibilities, Licensee agrees to cooperate fully with University,
      its attorneys, and agents in the preparation, filing, prosecution, and
      maintenance of any and all patent applications or patents and to provide
      University with complete copies of any and all documents or other
      materials that University deems necessary to undertake such
      responsibilities.

                    

            

            
              
                 

              

            

          

        

         

        SECTION 11. PATENT
ENFORCEMENT

         

        
          	
                  11.1 

                	
                   University
      and Licensee agree to inform the other Party promptly in writing of
      anysuspected
      infringement of the Patent Rights by a third party. Licensee shall have,
      for a period of 120 days from the date of any notice of infringement of
      the Patent Rights, the first right to institute suit against such third
      party and any recovery or settlement shall be applied first to defray the
      unreimbursed costs and expenses (including reasonable attorneys' fees
      through appeal) incurred by Licensee in the action, second to pay
      University an amount equal to the Sublicensing Royalty that University
      would otherwise be entitled to at that time pursuant to Exhibit
      C to
      this Agreement if the amount remaining after the reimbursement of costs
      and expenses was treated as sublicensing revenue, and third any remaining
      balance shall be paid to Licensee.

                

        

         

        
          
            	
                    11.2 

                  	
                     Thereafter,
      University and Licensee shall each have the right to institute an action
      for infringement of the Patent Rights against such third party in
      accordance with the
following:

                  

          

        

         

        
          	
                   
      

                	
                  a.If both
      University and Licensee agree to institute suit jointly, the suit shall be
      brought in both their names, the out-of-pocket costs thereof shall be
      borne equally, and any recovery or settlement, after the reimbursement of
      costs and expenses (including reasonable attorneys' fees incurred in the
      action) shall be shared equally.

                

        

         

        
          	
                   
      

                	
                  b.University
      and Licensee shall agree to the manner in which they shall exercise
      control over such suit. Each Party, at its option, may be represented by
      separate counsel of its own selection, the fees for which shall be paid by
      University.

                

        

         

        
          	
                   
      

                	
                  c.In the
      absence of an agreement to institute a suit jointly, University may, but
      is not obligated to, institute suit, and at its option, join Licensee as a
      plaintiff. If University decides to institute suit, it shall notify
      Licensee in writing.

                

        

         

        
          	
                   
      

                	
                  d.Licensee's
      failure to notify University in writing within thirty (30) days after the
      date of University's notice pursuant to Section 11.2(c) above, that it
      will join in enforcing the Patent Rights pursuant to the terms hereof,
      shall be deemed conclusively to be Licensee's assignment to University of
      all rights, causes of action, and damages resulting from any such alleged
      infringement. University shall bear the entire cost of such litigation and
      shall be entitled to retain the entire amount of any recovery or
      settlement.

                

        

         

        
          	
                   
      

                	
                  e.In the
      absence of an agreement to institute a suit jointly, and if University
      does not notify Licensee of its intent to pursue legal action within
      ninety (90) days, as provided in Subsections 11.1 — 11.2, Licensee may
      again have the right to institute suit. In such event, Licensee shall bear
      the entire cost of such litigation and any recovery or settlement shall be
      applied first to defray the unreimbursed costs and expenses (including
      reasonable attorneys' fees) incurred by Licensee in the action, second to
      pay University an amount equal to the Earned Royalty (as that term
      is

                

        

        

        
          
            
               

            

            
              Page 10
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                        defined in
      Exhibit C) that University would otherwise be entitled to pursuant to
      Exhibit C
      to this Agreement if the amount remaining after the reimbursement
      of costs and expenses was treated as Sublicensing Royalties, as defined in
      Exhibit C herein, and third any remaining balance shall be paid to
      Licensee.

                      

              

              
                
                   

                

              

            

          

        

        
          
            
              
                	
                         
      

                      	
                        
                          f.  If
      Licensee undertakes to defend the Patent Rights by litigation, Licensee
      may deduct from
      its royalty payments to University with respect to the Patent Rights
      subject to suit an amount not exceeding fifty (50%) of Licensee's expenses
      and reasonable costs of such action, including reasonable attorney's fees,
      provided however, that such reduction shall not exceed fifty percent (50%)
      of the total royalty due to University in any single calendar
      year.

                        

                      

              

              
                
                  
                     

                    
                      
                        
                          	
                                  11.3 

                                	In the
      event that a declaratory judgment action alleging invalidity or
      non-infringement of any of the Patent
      Rights shall be brought against Licensee or raised by way of counterclaim
      or affirmative defense in an infringement suit brought by Licensee under
      this Section, pursuant to this Agreement and the provisions of Title 35
      U.S.C. § 29 or other statutes, Licensee
may:

                        

                      

                       

                    

                  

                

              

            

          

        

        
          	
                   
      

                	
                  a.defend the
      suit in its own name, at its own expense, and on its own behalf for presumably
      valid claims in the Patent
Rights;

                

        

         

        
          	
                   
      

                	
                  b.in any such
      suit, ultimately to enjoin infringement and to collect for its use, damages,
      profits, and awards of whatever nature recoverable for such infringement
      consistent with this Section;
and

                

        

         

        
          	
                   
      

                	
                  b. settle any
      claim or suit for declaratory judgment involving the Patent Rights, except that
      Licensee shall have no right to deny the validity of any patent, patent
      claim, or patent application included in the Patent Rights in any
      compromise or settlement of any claim or suit for declaratory judgment
      without the express prior written consent of University; provided however,
      that University shall have the first right to take such actions described
      in this Subsection and shall have a continuing right to intervene in such
      suit. Licensee shall take no action to compel University either to
      initiate or to join in any such declaratory judgment
      action.

                

        

         

        
          	
                   
      

                	
                  c.If Licensee
      elects not to defend against such declaratory judgment action, University,
      at its option, may do so at its own expense and shall be entitled to
      retain the entire amount of any recovery or
    settlement.

                

        

         

        
          
            	
                    11.4 

                  	
                    In all cases,
      Licensee agrees to keep University reasonably apprised of the status and
      progress of any litigation.

                  

          

        

         

        SECTION
12. WARRANTIES, INDEMNIFICATIONS, AND INSURANCE

         

        
          	
                  12.1

                	
                  Representations.
      University is the owner of the Patent Rights and has full right and
      authority to
      enter into this Agreement.

                

        

         

        
          	
                  12.2

                	
                  Negation of Warranties:

                

        

        
           

          
            	
                     
      

                  	
                    a. UNIVERSITY
      MAKES NO REPRESENTATIONS, EXTENDS NO WARRANTIES OF ANY KIND,
      EITHER EXPRESS OR IMPLIED, AND ASSUMES NO RESPONSIBILITIES
      WHATSOEVER WITH RESPECT TO USE, SALE,
OR

                  

          

           

        

        
          
            
               

            

            
              Page 11
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                  	OTHER
      DISPOSITION BY LICENSEE, SUBLICENSEE(S), OR THEIR VENDEES OR OTHER
      TRANSFEREES OF LICENSED PRODUCTS OR LICENSED PROCESSES INCORPORATING OR
      MADE BY USE OF THE PATENT RIGHTS. THERE ARE NO EXPRESS OR IMPLIED
      WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR THAT
      THE USE OR SALE OF SUCH PRODUCTS OR PROCESSES WILL NOT INFRINGE ANY
      PATENT, COPYRIGHT, TRADEMARK, SERVICE MARK, OR OTHER
  RIGHTS.

          

          
             

            
              	
                       
      

                    	
                      a.defend the
      suit in its own name, at its own expense, and on its own behalf for presumably
      valid claims in the Patent
Rights;

                    

            

             

          

        

        
          
            	
                     
      

                  	
                    b.Notwithstanding
      anything in this Agreement to the contrary, nothing in this Agreement
      shall be construed as:

                  

          

           

        

        
          	
                   
      

                	
                   

                	
                  
                    (i) A
      warranty or representation by University as to rights in Know-How or the
      validity or scope of any of the Patent
Rights;

                  

                

        

         

        
          	
                   
      

                	
                  (ii).A
      warranty or representation that the Patent Rights or anything made, used,
      sold or otherwise disposed of under the License will or will not infringe
      patents, copyrights or other rights of third parties;
  or

                

        

         

        
          	
                   
      

                	
                  (iii).An
      obligation to furnish any know-how or technology not agreed to in this
      Agreement, to bring or prosecute actions or suits against third parties
      for infringement (except to the extent described in Subsections 11.1 —
      11.2), or to provide any services other than those specified in this
      Agreement.

                

        

         

        
          
            	
                    12.3 

                  	
                     Licensee Indemnification:
      Except as set forth in Section 12.4, Licensee shall indemnify,
      defend, and hold University, its regents, employees, students, officers,
      agents, Affiliates, and representatives harmless from and against all
      liability, demands, damages, losses, and expenses (including reasonable
      attorney fees) (collectively, "Claims"), for death, personal injury,
      illness, property damage, noncompliance with applicable laws and any other
      claim, proceeding, demand, expense and liability of any kind whatsoever in
      connection with or arising out
of:

                  

          

        

         

        
          
            
              	
                       
      

                    	
                       a. the use by or
      on behalf of Licensee, its sublicensees, Affiliates, directors, officers,
      employees, or
      third parties of any Patent Rights contrary to the terms of this
      Agreement;

                    

            

             

          

        

        
          
            
              	
                       
      

                    	b. the design,
      manufacture, production, distribution, advertisement, consumption, sale, lease,
      sublicense or use of any Licensed Product(s), Licensed Process(es) or
      materials by Licensee, or other products or processes developed in
      connection with or arising out of the Patent Rights;
  or

            

            
              
                 

                
                  	
                           
      

                        	c. any right or
      obligation of Licensee under this
Agreement.

                

                
                  
                     

                    
                      	
                               
      

                            	
                              With respect
      to Licensee's indemnification provided for in this Section 12.3, the
      following provisions shall apply, Licensee shall (i) receive prompt
      notification from University in writing of any such Claims, (ii) have full
      authority, information and assistance from University to defend such
      Claims, and (iii) have sole control over the defense of such Claims and
      all negotiations for the compromise or settlement
  thereof.

                            

                    

                    
                       

                      
                        
                          	
                                	
                                   With respect
      to Licensee's indemnification provided for in this Section 12.3, the
      following provisions shall apply, Licensee shall (i) receive prompt
      notification from University in writing of any such Claims, (ii) have full
      authority, information and assistance from University to defend such
      Claims, and (iii) have sole control over the defense of such Claims and
      all negotiations for the compromise or settlement
  thereof.

                                

                        

                      

                       

                    

                  

                

              

            

          

        

        
          	
                  12.4 

                	
                   Insurance:
      Licensee shall obtain general liability insurance, including
      product liability insurance, on
      such terms and in such amounts as are reasonable and customary within its
      industry.

                

        

        

        
          
            
               

            

            
              Page 12
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        SECTION
13. DURATION, TERMINATION, AND CONVERSION

         

        
          
            	
                    13.1

                  	
                    ThisAgreement
      shall become effective as of the Effective Date and shall expire on
      theexpiration
      date of the last to expire patents within Patent
  Rights.

                  

          

        

         

        
          	
                  13.2

                	
                  Termination
      of Agreement:

                

        

         

        
          
            	
                     
      

                  	
                    a.Licensee
      may terminate this Agreement at any time if University is in breach and
      University
      fails to cure the breach or default within thirty (30) days of written
      notice of the breach or default unless such breach or default is of a
      character that cannot be cured within thirty (30) days, in which event,
      University shall not be deemed to be in default unless it fails to
      diligently commence and pursue action to cure such default during such
      thirty day period; or, if at any time the general premise of the research
      related to the Patent Rights is proved invalid or, on sixty (60) days
      written notice to University, if
Licensee:

                  

          

          
             

          

        

        
          	
                   
      

                	
                  (i).pays all
      undisputed amounts due as well as all non-cancelable costs to University
      through the termination date;

                

        

         

        
          	
                   
      

                	
                  (ii).submits
      a final report of the type described in Section
  7;

                

        

         

        
          	
                   
      

                	
                  (iii).returns
      any confidential materials provided to Licensee by University in
      connection with this Agreement;

                

        

         

        
          	
                   
      

                	
                  (iv).suspends
      its use and sales of the Licensed Product(s) and Licensed Process(es);
      provided however, that subject to making the payments required by Section
      6 and the reports required by Section 7, Licensee may, for a period of
      ninety (90) days after the effective date of such termination, sell all
      Licensed Products which may be in inventory;
and

                

        

         

        
          	
                   
      

                	
                  (v).provides
      University the right to access any regulatory information filed with any
      U.S. or foreign government agency with respect to Licensed Products and
      Licensed Processes.

                

        

         

        
          
            	
                     
      

                  	
                    
                      b.University
      may terminate this Agreement in the event
  that:

                    

                  

          

          
            
               

              
                	
                         
      

                      	(i) Licensee
      fails to pay University any amounts when due to University hereunder and
      Licensee fails to make such payment within thirty (30) days written
      notice;

              

               

            

          

        

        
          	
                   
      

                	
                  (ii).Licensee
      becomes insolvent, files a petition in bankruptcy, or has such a petition
      filed against it and such petition is not dismissed within sixty (60) days
      of the filing date, or

                

        

         

        
          	
                   
      

                	
                  (iii).Licensee
      is in breach or default of this Agreement other than those occurrences
      listed in this Subsections (i) and (ii), and Licensee fails to cure the
      breach or default within thirty (30) days of written notice of the breach
      or default unless such breach or default is of a character that cannot be
      cured within thirty (30) days, in which event, Licensee shall not be
      deemed to be in default hereunder unless it fails to diligently commence
      and pursue action to cure such default during such thirty day period.
      Events constituting a breach or default shall include, but are not limited
      to, the following:

                

        

         

        
          	
                   
      

                	
                  (a)  failure
      by Licensee to meet any material due diligence requirement of Exhibit E;
      in this event, University retains the right to convert this Agreement to a
      non-exclusive Agreement.

                

        

         

        
 

        
          
            
               

            

            
              Page 13
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                    (b)  operation,
      manufacture, use of or sale of the Licensed Products or Licensed Processes
      outside the Fields of Use or
Territory;

                  

          

           

          
            
              
                	
                         
      

                      	
                        (c)  failure
      to keep adequate records or permit inspection or
  audit.

                      

              

               

              
                
                  
                    	
                             
      

                          	
                            
                              c.The
      exclusive license granted by this Agreement shall immediately revert to
      University
      upon Licensee's dissolution, liquidation, insolvency, or bankruptcy. The
      exclusive license shall NOT pass to a trustee in bankruptcy or be held as
      an asset of said
bankrupt.

                            

                          

                  

                  
                    
                       

                    

                  

                

              

            

          

        

        SECTION 14.
GENERAL

         

        
          	
                  14.1

                	
                  Assignment:
      This Agreement shall be binding upon and inure to the benefit of
      the respective
      successors and assigns of the Parties hereto. Licensee may not assign its
      rights in this Agreement without prior written approval by University,
      such approval not to be unreasonably withheld or delayed. Notwithstanding
      the foregoing, with respect to the proposed agreement between Apro Bio
      Pharmaceutical Corporation and MaxCure Pharmaceuticals, Inc., University
      accepts in advance and hereby acknowledges that the License Agreement may
      be assigned to and will inure to the benefit of the surviving Colorado
      Company.

                

        

         

        
          
            	
                    14.2

                  	
                    Notice:
      Notice hereunder shall be deemed sufficient if given by registered
      mail, postage prepaid, and addressed to the Party to receive such notice
      at the address given below, or such other address as may hereafter be
      designated by notice in
writing.

                  

          

        

         

        
          
            
              	
                              University:

                    	
                      Licensee:

                    
	
                              License
      Administrator

                    	
                      Mr. David C.
      Olson

                    
	
                              Office of
      Technology Transfer

                    	
                      President

                    
	
                              University of
      Colorado, 588 SYS

                    	
                      MaxCure
      Pharmaceutical, Inc.

                    
	
                              Suite 100,
      4740 Walnut Street

                    	
                      5350 S.
      Roslyn Street, Suite 400

                    
	
                              Boulder, CO
      80309-0589

                    	
                      Greenwood
      Village, CO 80111

                    

            

             

             

          

        

        
          	
                  14.3

                	
                  Use of Names and
      Marks:
      Licensee agrees not to identify University in any promotional
      advertising, press releases, sales literature or other promotional
      materials to be disseminated to the public or any portion thereof without
      University prior written consent in each case, except that (a) Licensee
      may
      state that it has a license for the Patent Rights from University;
      (b) Licensee may disclose as may be required by law, regulation, judicial
      or administrative process or in accordance with applicable professional
      standards, rules, or in connection with any public or private offerings or
      disclosures required by law; or (c) to the extent such information shall
      have otherwise become publicly available (including, without limitation,
      any information filed with any governmental agency and available to the
      public). Licensee further agrees not to use the name of University or any
      University faculty member, employee or student or any trademark, service
      mark, trade name, copyright or symbol of University, without the prior
      written consent of the University, entity or person whose name is sought
      to be used, which consent shall not be unreasonably withheld or
      delayed.

                

        

        

        
          
            
               

            

            
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                  14.4

                	
                  Marking: Licensee agrees
      to:

                

        

         

        
          	
                   
      

                	
                  a.Cause
      Licensed Products or the product of Licensed Processes sold under this
      license to be marked with the notice of the patent numbers or patent
      pending, as may be appropriate.

                

        

         

        
          	
                   
      

                	
                  b.Use best
      efforts to comply with all laws and regulations of the United States and
      any other country as appropriate concerning or controlling the import or
      export of the Licensed Products, data, software, laboratory prototypes or
      other commodities. University makes no representation that a license or
      consent for export will not be required by applicable governmental
      agencies, or if required, that it will be
  issued.

                

        

         

        
          	
                   
      

                	
                  c.Use best
      efforts to comply with all applicable statutes, regulations, and
      guidelines, including applicable governmental regulations, policies and
      guidelines in its use of any University-supplied materials. Licensee
      agrees not to use the materials for research involving human subjects or
      clinical trials in the United States without complying with 21 C.F.R. Part
      50 and 45 C.F.R. Part 46 (as those regulations may be amended from time to
      time). Written notification to University of research involving human
      subjects or clinical trials outside of the United States shall be given no
      later than sixty (60) days prior to commencement of such research or
      trials.

                

        

         

        
          
            	
                    14.5 

                  	
                    Compliance
      with the Law: Licensee shall use commercially reasonable efforts to
      comply with all commercially material local, state, federal, and
      international laws and regulations relating to its obligations under this
      Agreement regarding the development, manufacture, use, and sale of
      Licensed Products and Licensed
Processes.

                  

          

        

         

        
          
            	
                    14.6 

                  	
                    Choice of
      Law: This Agreement shall be governed by and construed in
      accordance with the laws of the State of
  Colorado.

                  

          

        

         

        
          
            	
                    14.7 

                  	
                    Dispute
      Resolution: In the event of any dispute arising out of or relating
      to this Agreement, the affected Party shall promptly notify the other
      Party ("Notice Date"), and the Parties shall attempt in good faith to
      resolve the matter.

                  

          

        

         

        
          	
                   
      

                	
                  a.Any
      disputes not so
      resolved shall be referred to senior executives, who shall meet at
      a mutually acceptable time and location within thirty (30) days of the
      Notice Date and shall attempt to negotiate a
  settlement.

                

        

         

        
          	
                   
      

                	
                  b.If the
      senior executives fail to meet within thirty (30) days of the Notice Date,
      or if the matter remains unresolved for a period of sixty (60) days after
      the Notice Date, the Parties hereby irrevocably submit to the jurisdiction
      of a court of competent jurisdiction in the State of Colorado, and, by
      execution and delivery of this Agreement, each (i) accepts, generally and
      unconditionally, the jurisdiction of such court and any related appellate
      court, and (ii) irrevocably waives any objection it may now or hereafter
      have as to the venue of any such suit, action or proceeding brought in
      such court or that such court is an inconvenient
  forum.

                

        

         

        
          
            	
                    14.8 

                  	
                    Merger and
      Modification of Agreement: The terms and provisions contained in
      this Agreement, and its Exhibits and Addenda, constitute the entire
      Agreement between the Parties and shall supersede all previous
      communications, representations, agreements or understandings, either oral
      or written, between the Parties hereto with respect to the subject matter
      hereof, and no agreement or understanding varying or extending this
      Agreement will be binding upon either Party hereto, unless in writing
      which specifically refers to this Agreement, signed by duly authorized
      officers or representatives of
the

                  

          

        

        

        
          
            
               

            

            
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                      respective
      Parties, and the provisions of this Agreement not specifically amended
      thereby shall remain in full force and effect according to their
      terms.

                    

            

          

           

        

        
          	
                  14.9 

                	
                  Severability:
      The provisions and clauses of this Agreement are severable, and in
      the event that
      any provision or clause is determined to be invalid or unenforceable under
      any controlling body of the law, such invalidity or unenforceability will
      not in any way affect the validity or enforceability of the remaining
      provisions and clauses hereof.

                

        

         

        
          
            	
                    14.10 

                  	
                     Scope:
      This Agreement does not establish a joint venture, agency or
      partnership between the Parties, nor create an employer - employee
      relationship.

                  

          

        

         

        
          
            	
                    14.11 

                  	
                     Preservation
      of Immunity:
      The Parties agree that nothing in this Agreement is intended or
      shall be construed as a waiver, either express or implied, of any of the
      immunities, rights, benefits, defenses or protections provided to
      University under governmental or sovereign immunity laws from time to time
      applicable to University, including, without limitation, the Colorado
      Governmental Immunity Act (C.R.S. § 24-10-101, et seq.) and the Eleventh
      Amendment to the United States
Constitution.

                  

          

        

         

        
          
            	
                    14.12 

                  	
                     Headings:
      Headings are included herein for convenience only and shall not be
      used to construe this
Agreement.

                  

          

        

         

        
          
            	
                    14.13

                  	
                    The
      provisions of Sections 6 and 10, and Subsections 7.1, 7.2, 12.1, 12.2,
      13.1, 14.3, 14.6 — 14.9, and 14.11, and any other provision of this
      Agreement that by its nature is intended to survive, shall survive any
      termination or expiration of this
Agreement.

                  

          

        

        

        
          
            
               

            

            
              Page 16
of 26

              
                

              

            

            
               

            

          

        

        

        IN WITNESS WHEREOF the parties
hereto have caused this Agreement, to be executed in duplicate by their
respective duly authorized officers.

         

         

         

        
          

          

          
            
              
                	
                        University:

                      	
                        Licensee:

                      
	 
    	 
    
	
                        /s/  David
      N. Allen

                      	
                        /s/   David
      C. Olson

                      
	
                        By:   
      David N. Allen

                      	
                        By:    David
      C. Olson

                      
	
                        Title:
      Associate VP for Technology Transfer

                      	
                        Title:
      President and CEO

                      
	
                        Date: March
      31, 2009

                      	
                        Date: March
      31, 2009

                      
	 
    	 
    
	
                        Office of
      Technology Transfer

                      	
                        MaxCure
      Pharmaceutical, Inc.

                      
	
                        University of
      Colorado, 588 SYS

                      	
                        5350 S.
      Roslyn Street, Suite 400

                      
	
                        Suite 100,
      4740 Walnut Street

                      	
                        Greenwood
      Village, CO 80111

                      
	
                        Boulder, CO
      80309-0589

                      	 
    
	 
    	 
    

              

            

          

        

         

        

        
          
            
               

            

            
              Page 17
of 26

              
                

              

            

            
               

            

          

        

        

        

        
          EXCLUSIVE
LICENSE AGREEMENT

        

         

         

        EXHIBIT
A

         

         

        FIELDS
OF USE and TERRITORY

         

        Fields
of Use: use of alpha-1 antitrypsin, and any analogs thereof, including
but not limited to synthetic analogs, alpha-1 antitrypsin derivatives, alpha-1
antitrypsin fragments, combinations with alpha-1 antitrypsin and modifications
of alpha-1 antitrypsin, for the prevention

        and/or treatment
including prophylaxis of, reduction of and/or reduction of symptoms related to
any and all viral infections.

         

        Treatment of all
viral infections including, without limitation, any and all mutations, strains,
and subtypes, including future mutations, strains, and subtypes of: Human
Immunodeficiency Virus (HIV) (including any viral infections reasonably and/or
previously withheld by the University, when they become available); Human
Papilloma Virus (HPV); Herpes Simplex Virus (HSV); Hepacivirus; Pestivirus;
Avian influenza virus; Human influenza virus; Murray Valley encephalitis; St.
Louis encephalitis.

         

        In
addition, viruses that may or may not be used as bio-terrorist agents, for
example, without limitation:

         

        I.Category
A

         

        1.              Variola
major (smallpox), CalPox, and other related pox viruses

         

        2.              Viral
hemorrhagic fevers

         

        a.
Arenaviruses

         

        i.LCM, Junin virus,
Machupovirus, Guanarito virus

         

        ii.Lassa
Fever

         

        b.
Bunyaviruses

         

        i.
Hantaviruses

         

        ii. Rift Valley
Fever

         

        c.
Flaviviruses

         

        i.
Dengue

        d.
Filoviruses, including all viruses of the family Filoviridae

         

        i.
Ebola

         

        ii.
Marburg

         

        e.
Togavirus

         

        f.
Rhabdovirus

         

        g.
Paramyxovirus

         

        h.
Orthomyxovirus

         

        i.
Arenavirus

         

        j.Retrovirus

        k.
Hepadnavirus I.Picornavirus

         

        m.              Reovirus

         

        n.Papovavirus

        o.Parvovirus

        

        
          
            
              
              

               

            

            
              Page 18
of 26

              
                

              

            

            
               

            

          

        

        

        p.
AdenovirusI
I                          

         

         
 Category B

         

        
          	
                   
      

                	
                  1.

                	
                  Food and
      Waterborne Viruses

                

        

         

        a. Viruses (Caliciviruses, Hepatitis
A, Hepatitis C)

        
          	
                   
      

                	
                  2.

                	
                  Additional
      viral encephalitides

                

        

         

        a.West Nile
Virus

         

        b.LaCrosse

         

        c.California
encephalitis

         

        d.VEE

         

        e.EEE

         

        f.WEE

         

        g.
Japanese Encephalitis Virus

        h.
Kyasanur Forest Virus

        i.
Alkhurma hemorrhagic fever

        j.
Tick-borne encephalitis

         

        Ill.Category
C

         

        1.  Emerging
infectious disease threats such as Nipah virus and additional hantaviruses.

         

        a.Tickborne
hemorrhagic fever viruses

         

        b.Crimean-Congo
Hemorrhagic fever virus

         

        c.Tickborne
encephalitis viruses

         

        d.Yellow
fever

         

        e.Rabies
virus

         

        f.Chikungunya
virus

         

        g.Severe acute
respiratory syndrome associated coronavirus (SARS-CoV)

         

        -
Territory:
worldwide.

        

        
          
            
              
                
                  	
                        

                

                

              

               

            

            
              Page 19
of 26

              
                

              

            

            
               

              
                 

              

            

          

        

        

        

        
          EXHIBIT
C 

           

        

        PATENT
RIGHTS

         

         

        
          	
                    ·

                	
                  U.S.
      Patent No. 6,846,605 "Inhibitors of serine protease activity, methods and
      compositions for the treatment of viral infections" (related to Case #
      CU9014H).

                

        

         

        
          	
                    ·

                	
                  U.S.
      Patent Application No. 11/044,224 "Inhibitors of serine protease activity,
      methods and compositions for the treatment of viral infections"
      (Continuation application of Patent No.
  6,846,605).

                

        

         

        
          	
                    ·

                	
                  Provisional
      Patent Application No. 60/742,191 "Alpha-1-antitrypsin inhibition of
      disease and conditions mediated by binding to cell-associate actin"
      (related to Case # CU1428H)

                

        

         

        
          	
                    ·

                	
                  Provisional
      Application No. 60/913,174 Title: Compositions and Methods of Use for
      Alpha­AntiTrypsin Having No Significant Serine Protease Inhibitor
      Activity (CU1697H US)

                

        

         

        
          
            	
                      ·

                  	
                    PCT
      Application No, PCT/US2006/061577 Title: Compositions and Methods For
      Treating Actin-Mediated Conditions
(CU1428H)

                  

          

           

        

        
          	
                    ·

                	
                  U.S.
      Patent Application No.11/719,200 "Compositions and Methods For Treating
      Actin- Mediated Conditions" (CU1428H
US1)

                

        

        

        
          
            
              
                
                  	
                        

                

                

              

               

            

            
              Page 20
of 26

              
                

              

            

            
               

              
              

            

          

        

        

        
          EXHIBIT
C 

         

           ROYALTIES

         

        In
accordance with Section 6, Licensee shall pay the following royalties to
University: Patent
expenses: (still need to get this number)

         

        

        Sublicensing
royalties as follows:

         

        
          
            
              
                
                  
                    	
                            License
      fee: 

                          	
                            Shares of
      Company's common stock representing four percent (4%) of the fully diluted
      issued and outstanding shares of Company, which percentage shall be
      non-dilutable through sale and issuance by Company of equity securities
      having an aggregate investment purchase price of five million dollars
      ($5,000,000), to be conveyed to University License Equity Holdings, Inc.
      (ULEHI), pursuant to a stock transfer agreement in a form mutually agreed
      upon between the Parties. In the event that Company is merged into a
      successor company prior to the execution of the License Agreement, ULEHI
      shall be issued the number of shares in the successor company that
      ULEHI would have received had it held 4% of Company's common stock
      immediately prior to the merger.

                          
	
                            Earned
      Royalty: 

                          	Four percent
      (4%) of Net Sales (as defined herein). In the event that Licensee or its
      Affiliates must enter into a license with a third party and agrees to pay
      a royalty thereunder in order to make, use, or sell a Licensed Product(s)
      or Licensed Process(es), the Earned Royalty applicable to Net Sales for a
      given reporting period shall be reduced by fifty percent (50%) of the
      royalty paid to such third party(ies) during the same reporting period,
      but in no event shall the Earned Royalty be less than two percent
      (2%).
	
                            Minimum
      annual royalty: 

                          	Fifty
      thousand dollars ($50,000) payable on the first business day of each
      calendar year following the date proceeds of the first Commercial Sale of
      Licensed Product are actually received by Licensee. The minimum annual
      royalty shall be creditable against any Earned Royalties due for the same
      calendar year. 

                             

                          
	
                            Milestone
      royalties per indication 

                            are as
      follows: 

                          	With respect
      to the completion of any phase III clinical trial for any Licensed
      Product, one hundred thousand dollars ($100,000), payable within thirty
      (30) days of completion of such clinical trial. 

                             

                            With respect
      to the first Commercial Sale of any Licensed Product, one hundred and
      fifty thousand dollars ($150,000) payable within thirty (30) days of the
      first Commercial Sale.

                             

                            No payments
      shall be due for the first indication. 100% shall be due for the second
      indication. 50% shall be due for each subsequent indication.

                             

                            Thirty
      percent (30%) of all Sublicense income received during the first year
      after the Effective Date.

                             

                            Twenty-Five
      percent (25%) of all Sublicense income received during the second year
      after the Effective Date.

                             

                            Twenty
      percent (20%) of all Sublicense income received during the third year
      after the Effective Date and each year thereafter until this Agreement is
      terminated or expires.

                             

                            Sublicense
      income shall include any and all consideration received by Licensee from a
      Sublicensee as consideration for the grant of a sublicense to the Patent
      Rights or Know-l-low, including without limitation upfront fees,
      maintenance fees, milestone payments, and minimum annual royalties.
      Sublicense income shall also include the fair market value of any non-cash
      consideration paid to Licensee for sublicense
    rights.

                          

                     

                     

                    
                      
                        
                        

                      

                      
                        Page 21
of 26

                        
                          

                        

                      

                      
                        
                        

                      

                    

                     

                     

                    	
                            Expiration of
      Royalties:
 	
                            Earned
      Royalties payable hereunder with respect to each Licensed Product or
      Licensed Process shall expire and terminate on the respective expiration
      date of the last to expire of the Patent Rights applicable to each such
      Licensed Product or Licensed Process.

                          
	
                             

                          	
                             

                          

                  

                

              

            

          

        

         

        
 

        
          
            
              
              

               

            

            
              Page 22
of 26

              
                

              

            

            
               

            

          

        

        

        EXHIBIT
D

         

        FORM
OF ROYALTY REPORT

         

        
          	 	 
	 Licensee: __________________________________	 Case No.: _______________________________
	 Investigator: ________________________________	 Patent No. _______________________________
	 Period Covered: From: Through:____ / 
      _____/______	 Date: ___________________________________
	 Prepared By: _______________________________	 Date: ___________________________________
	 Approved By:  _____________________________	 
	 	 
	 	 

        

         

        If
license covers several major product lines, please prepare a separate report for
each line. Then combine all product lines into a summary report.

         

        Report
Type: _________________   Single Product Line Report:
_________________      Multiproduct
Summary Report. 

        Page
1 of _____  PagesProduct
Line Detail._________ Line: _______      Trademark:
_______       Pages: _____

         

        
          

          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          	 
      	 
      	 
      	 
      	 
      	
                                                                  Period
      Royalty Amount

                                                                
	
                                                                  Country

                                                                	
                                                                  Gross
      Sales

                                                                	
                                                                  *
      Less Allowances

                                                                	
                                                                  Net
      Sales

                                                                	
                                                                  Royalty
      Rate

                                                                	
                                                                  This
      Year

                                                                	
                                                                  Last
      Year

                                                                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                                  U.S.A.

                                                                	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                                  Canada

                                                                	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                                  Europe

                                                                	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                                  Japan

                                                                	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                                  Other

                                                                	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                                                                  Other

                                                                	 
    	 
    	 
    	 
    	 
    	 
    

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

           

        

        Sublicense
Fees this quarter: $ (attach page showing names, addresses, and
telephone

         

        numbers;
and amount of fees received; territory; field of use)

         

        Total
Royalty: $ __________

         

        The
following royalty forecast is non-binding and for University internal planning
purposes only.

        

        
          
            
              
              

               

            

            
              Page 23
of 26

              
                

              

            

            
               

            

          

        

        

        EXHIBIT
E

         

        PERFORMANCE
MILESTONES 

         

        Milestones are
defined for the first indication

         

        
           

          
             

            
              	IND
submission	
                      Completion by
      12/31/2009

                    
	 
    	 
    
	Phase III
      initiation	
                      Completion by
      12/31/2012

                    
	 
    	 
    
	FDA
submission	
                      Completion by
      12/31/2014

                    
	 
    	 
    
	Market launch 	
                      Completion by
      12/31/2016

                    

            

          

        

         

         

         

        DILIGENCE MILESTONES

         

        
          	
                  1.

                	
                  Licensee
      shall deliver to University:

                

        

         

        
          	
                   
      

                	
                  (a)

                	
                  Within ninety
      (90) days of the Effective Date, a comprehensive business plan that
      describes the Licensee's technology commercialization strategy, including
      product development plans and timelines, marketing strategies, and plans
      for obtaining necessary financing. The business plan shall include
      forecasts showing the funds, personnel, and time budgeted and planned for
      development of the Patent Rights and Know-How;
  and

                

        

         

        
          	
                   
      

                	
                  (b)

                	
                  Within twelve
      (12) months of execution of the Agreement the Licensee will have raised at
      least five hundred thousand dollars ($500,000) through third party
      investments directed to the development of the Patent
    Rights.

                

        

         

        
          	
                  2.

                	
                  Within 60
      days of the Effective Date (First Option Period), Licensee will negotiate
      with University in an effort to enter into a Sponsored Research Agreement
      in the Fields of Use for the benefit of Investigator(s) of as much as five
      hundred thousand dollars ($500,000), the work plan of such sponsored
      research to be mutually agreed upon by Licensee and University. University
      hereby acknowledges that for Licensee to agree, any such plan of sponsored
      research must be reasonably advantageous to Licensee and its efforts to
      obtain commercialization of Licensed Product. In the event that the
      Parties reach an agreement during the First Option Period, Licensee
      reserves the right to raise the funds for the sponsored research for a
      period of 4-6 months after entering into the Sponsored Research Agreement.
      In the event that the Parties cannot reach an agreement during the First
      Option Period, Licensee shall, within ten days of the end of the First
      Option Period, provide notice of such failure to University. For a period
      of 6 months of the date of the notice of failure to reach an agreement
      (Second Option Period), the Parties agree to negotiate in good faith to
      reach mutually agreed upon terms in an effort to enter into a Sponsored
      Research Agreement. In the event Parties reach an agreement during the
      Second Option Period, Licensee reserves the right to raise the funds for a
      period of 4-6 months after entering into the Sponsored Research Agreement.
      If the Parties fail to reach an agreement within the Second Option Period,
      Licensee is no longer under an obligation to negotiate a Sponsored
      Research Agreement in the Fields of
Use.

                

        

         

        
          

          
            
              
                
                

                 

              

              
                Page 24
of 26

                
                  

                

              

              
                 

              

            

          

           

        

         

      

      

        FIRST
AMENDMENT TO EXCLUSIVE LICENSE AGREEMENT

         

         

        This
First Amendment (the "First Amendment") is between the Regents of the
University of Colorado (the "University"), a body corporate, having its
principal place of business at 1800 Grant Street, 8th floor, Denver, CO 80203,
and Apro Bio Pharmaceuticals Colrporation, formerly MaxCure Pharmaceuticals,
Inc., a Colorado corporation having its principal office  at 5350 S.
Roslyn Street, Suite 400, Greenwood Village, CO 80111 (hereinafter “Licensee”)
(together referred to as "Parties").

         

                
WHEREAS the University and Licensee entered into an License Agreement on
March 31, 2008, (the "Agreement");

         

        WHEREAS,
University is the owner of certain Patent Rights (as later defined herein)
relating to University Case No. CU9014H, developed by University employee Leland
Shapiro; University Case No. CU1428H developed by Leland Shapiro and Gregory B.
Pott; and University Case No. CU1697H, developed by Leland Shapiro and has the
right to grant licenses under said Patent Rights,
and;

         

        WHEREAS,
Licensee is interested in further developing the Patent Rights for commercial
applications, and;

         

        WHEREAS,
University desires to have the Patent Rights developed and commercialized to
benefit the public and is willing to grant a license
hereunder;

         

        WHEREAS
the Agreement have Diligence Milestones in Exhibit E and the parties desire to
amend one milestone;

         

        WHEREAS
the Company is still making good-faith efforts toward development of commercial
applications that incorporates the Intellectual Property Rights and/or Know
How;

         

        NOW,
THEREFORE, the parties agree to the following
change:

         

        1.           EXHIBIT
E

        Diligence
Milestones – Section 2, should read as follows

         

        “Licensee will
negotiate with University in an effort to enter into a Sponsored Research
Agreement in the Fields of Use for the benefit of Investigator(s) of as much as
five hundred thousand dollars ($500,000), the work plan of such sponsored
research to be mutually agreed upon by Licensee and University on or before July
1, 2009.  University hereby acknowledges that for Licensee to agree,
any such plan of sponsored research must be reasonably advantageous to Licensee
and its efforts to obtain commercialization of Licensed Product.  If
the Parties fail to reach an agreement within three months, Licensee is no
longer under an obligation to negotiate a Sponsored Research Agreement in the
Fields of Use.“

         

        2.           All
other terms, definitions, and conditions of the Agreement shall remain in full
force and effect.

         

        3.           In
the event of a conflict between the Agreement and the First Amendment, this
First Amendment shall prevail. This First Amendment and the Agreement represent
the entire agreement between the parties concerning the subject matter hereof
and may only be modified by an amendment executed by the parties’ authorized
representatives.

        
          
             

          

          
            Page 25
of 26

            
              

            

          

          
             

          

        

       

      IN WITNESS WHEREOF, the
parties have signed or caused this Amendment to be signed as of the dates
indicated below.

      
         

        
           

          
            
              	
                      University

                    	
                      Apro
      Bio Pharmaceutical Corporation

                    
	 
    	 
    
	 
    	 
    
	
                      By:  /s/
      David
      Allen

                    	
                      By:  /s/
      Vicki
      D.E
      Barone

                    
	
                            
      David Allen

                    	
                            
      Vicki D.E Barone

                    
	
                            
      Assoc. VP Technology Transfer

                    	
                            
      Chairperson

                    
	 
    	 
    
	 
    	 
    
	
                      Date: March
      17, 2009

                    	
                      Date:  March
      17, 2009

                    

            

          

           

           

           

          
            
              
              

            

            
              Page 26
of 26aafinancial8kex109_462009.htm

    
Exhibit
10.9

      
        
           

           

          [[University
of Colorado Stamp]]

          EXCLUSIVE LICENSE
AGREEMENT

           

          

           

          This Exclusive License
Agreement (the “Agreement”) is made and entered into this 12th  of
November, 2008, (the “Effective Date”) by and between the Regents of the
University of Colorado, a body corporate, having its principal office at 1800
Grant Street, 8th Floor,
Denver, CO 80203 (hereinafter “University”) and APRO Bio Pharmaceutical
Corporation, a Colorado corporation having a principal place of business at 5350
S. Roslyn St. #400, Greenwood Village, CO 80111 (hereinafter
“Licensee”).

           

          WHEREAS, University is the
owner of certain Patent Rights (as later defined herein) invented by University
employees Charles Dinarello, Eli Lewis and Leland Shapiro and has the right to
grant licenses under said Patent Rights, and;

           

          WHEREAS, Licensee is
interested in licensing and further developing the Patent Rights for commercial
applications, and;

           

          WHEREAS, University desires to
have the Patent Rights developed and commercialized to benefit the public and is
willing to grant a license hereunder;

           

          NOW, THEREFORE, in
consideration of the promises and the mutual covenants contained herein, the
parties hereto agree as follows:

           

          SECTION
1.  DEFINITIONS

           

          For the
purposes of this Agreement, the following words and phrases shall have the
following meanings:

           

          
            	
                    1.1

                  	
                    “Affiliate(s)”
      shall mean every corporation or entity, which, directly or indirectly, or
      through one or more intermediaries, controls, is controlled by, or is
      under common control with Licensee, as well as every officer and director
      of any such corporation or entity.  For the purposes of this
      definition, the term “control” means (a) beneficial ownership of at least
      fifty percent (50%) of the voting securities of a business organization
      with voting securities, or (b) a fifty percent (50%) or greater interest
      in the net assets or profits of a partnership or business organization
      without voting securities.

                  

          

           

          
            	
                    1.2

                  	
                    "Associate(s)"
      means any University employee working under the direction, supervision,
      and/or control of the
Investigator(s).

                  

          

           

          
            	
                    1.3

                  	
                    "Investigator(s)"
      means Dr. Charles Dinarello and/or Dr. Leland Shapiro, as long as each
      Investigator remains employed by
University.

                  

          

           

          
            
              	
                      1.4

                    	“Fields of Use” shall mean the fields of use identified in Exhibit
      A.

            

            
               

              
                	
                        1.5

                      	
                        "Improvement”
      shall mean any invention, the practice of which would also require the
      practice of an invention claimed in or covered by the Patent Rights and
      which is a modification of the inventions claimed in or covered by the
      Patent Rights, made by Investigator(s) for the life of the agreement or
      Associate(s) for a period of three (3) years from the Effective
      Date.,

                      

              

              
                 

                
                  	
                          1.6

                        	
                          “Know-How”
      shall mean University's proprietary information which has been created,
      developed, and fixed in any tangible medium of expression by the
      Investigators or

                        

                

                 

              

            

             

          

          
            
              
                
                  Exclusive
License – APRO Bio
Pharma                                                                                                                                          

                   CU
1268H and CU1778H

                

                 

              

              
                Page
1 of 22

                
                  

                

              

              
                 

              

            

          

          

          
            	
                     
      

                  	
                    Associates
      and which is directly related to the practice of the licensed Patent
      Rights, including, but not limited to, technical information,
      specifications, standards, devices, models, techniques, processes,
      methods, formulae, documents, drawings and materials ("Technical
      Information").  Know-How specifically includes, without
      limitation, any Technical Information that relates to the discovery of the
      underlying technology covered by the Patent
  Rights.

                  

          

           

          
            	
                    1.7

                  	
                    “Licensed
      Process(es)” shall mean any process, art, or method which is covered in
      whole or in part by an issued, unexpired claim or a pending claim
      contained in the Patent Rights or that incorporates or makes use of
      Know-How.

                  

          

           

          
            	
                    1.8

                  	
                    “Licensed
      Product(s)” shall mean any:

                  

          

           

          
            	
                     
      

                  	
                    a.

                  	
                    product
      or part thereof that is covered in whole or in part by an issued,
      unexpired claim or a pending claim contained in the Patent Rights or that
      incorporates or makes use of Know-How;
or

                  

          

           

          
            	
                     
      

                  	
                    b.

                  	
                    product,
      chemical composition, apparatus, or part thereof that is manufactured or
      discovered by using a Licensed Process(es) or is employed to practice a
      Licensed Process(es); or

                  

          

           

          
            	
                     
      

                  	
                    c.

                  	
                    product
      produced, discovered, manufactured or created through the use of any
      Licensed Product defined in §1.8(a) or
§1.8(b).

                  

          

           

          
            	
                     1.9

                  	
                    “Net
      Sales” shall mean the total gross receipts for sales of Licensed Products
      or practice of Licensed Processes by or on behalf of Licensee, its
      Affiliates and sublicensees, and from leasing, renting, or otherwise
      making Licensed Products available to others without sale or other
      dispositions, whether invoiced or not, less returns and allowances,
      packing costs, insurance costs, freight out, taxes or excise duties
      imposed on the transaction (if separately invoiced and paid), and
      wholesaler and cash discounts in amounts customary in the trade to the
      extent actually granted.  No deductions shall be made for
      commissions, or for the costs of collections.  Net Sales shall
      also include the fair market value of any non-cash consideration received
      by Licensee, its Affiliates and sublicensees, for the sale, lease, or
      transfer of Licensed Products or Licensed
  Processes.

                  

          

           

          
            	
                    1.10

                  	
                    “Patent
      Rights” shall mean all of the following University intellectual property
      and any utility applications, PCT applications, continuations,
      improvements and divisional applications thereof, patents issuing on any
      of the foregoing and all reissues, reexaminations or extensions of any of
      the foregoing, and any and all foreign patents and patent applications
      relating to any of the foregoing:

                  

          

           

          
            	
                     
      

                  	
                    a.

                  	
                    the
      United States and foreign patents and/or patent applications and/or
      provisional patent applications listed in Exhibit
      B;

                  

          

           

          
            	
                     
      

                  	
                    b.

                  	
                    United
      States and foreign patents issued from the applications listed in Exhibit
      B and from divisionals and continuations of these
      applications;

                  

          

           

          
            	
                     
      

                  	
                    c.

                  	
                    claims
      of U.S. and foreign continuation-in-part applications, and of the
      resulting patents, which are directed to subject matter specifically
      described in the U.S. and foreign applications listed in Exhibit
      B;

                  

          

           

          
            	
                     
      

                  	
                    d.

                  	
                    claims
      of all foreign patent applications, and of the resulting patents, which
      are directed to subject matter specifically described in the United States
      patents and/or patent applications described in this Subsection;
      and

                  

          

           

          
            	
                     
      

                  	
                    e.

                  	
                    any
      reissues of United States patents described in this
      Subsection.

                  

          

           

          
             

             

            
              
                
                  
                    Exclusive
License – APRO Bio
Pharma                                                                                                                                          

                     CU
1268H and CU1778H

                  

                   

                

                
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                      1.11

                    	
                      “Territory”
      shall mean the geographical area identified in Exhibit
      A.

                    

            

          

          

           

          SECTION 2. 
GRANT OF
LICENSE

           

          
            	
                    2.1

                  	
                    University
      hereby grants and Licensee and Affiliates accept, during the term and
      subject to the terms and conditions of this
  Agreement

                  

          

           

          
            	
                     
      

                  	
                    a.

                  	
                    a
      nonexclusive, royalty-bearing license to use the Know-How in the Territory
      and within the Fields of Use; and

                  

          

           

          
            	
                     
      

                  	
                    b.

                  	
                    an
      exclusive, royalty-bearing license to University’s Patent Rights in the
      Territory to make, use, sell, lease, offer to sell, and import any
      Licensed Products in the Fields of Use and to practice any Licensed
      Processes in the Fields of Use.

                  

          

           

          
            	
                    2.2

                  	
                    All
      Know-How due under this Agreement shall be delivered to Licensee prior to
      or on the Effective Date in written, oral or other form of communication.
      University shall use commercially reasonable efforts to ensure that
      Licensee is provided with all Know-How due under this
      Agreement.

                  

          

           

          
            	
                    2.3

                  	
                    Notwithstanding
      the terms as set forth in Section 2.2, if, at any time during the Term of
      this Agreement University discovers Know-How that should have been
      provided pursuant to Section 2.2, University shall promptly provide
      written notification to Licensee of the omission and provide any such
      Know-How due under Section 2.2 to Licensee within thirty days of such
      written notice.

                  

          

           

          
            	
                    2.4

                  	
                    Notwithstanding
      the terms as set forth in Section 2.2, if, at any time during the Term of
      this Agreement, Licensee discovers Know-How that should have been provided
      pursuant to Section 2.2, Licensee shall request the Know-How in writing
      from University and University shall provide any such Know-how due under
      Section 2.2 to Licensee within thirty days of the written
      request.

                  

          

           

          
            	
                    2.5

                  	
                    This
      Agreement confers no license or rights by implication, estoppel, or
      otherwise under any patent applications or patents of University other
      than licensed Patent Rights regardless of whether such patents are
      dominant or subordinate to licensed Patent
  Rights.

                  

          

           

          
            	
                    2.6

                  	
                    The
      license grant pursuant to Section 2.1 shall remain in effect regardless of
      any change in status of the Investigators, including without limitation,
      absence or withdrawal of one or both Investigators from further
      development or execution of the Patent
Rights.

                  

          

           

          

           

          SECTION
3.  IMPROVEMENTS & INDEPENDENT INVENTIONS

           

          
            	
                    3.1

                  	
                    Improvements:  In
      the event that University develops any Improvements to the inventions
      claimed in the Patent Rights, then each such Improvement will be
      considered part of this Agreement for no additional
      consideration.

                  

          

           

          
            	
                    3.2

                  	
                    Independent
      Inventions:

                  

          

           

          
            	
                     
      

                  	
                    a.

                  	
                    Provided
      that the Investigator(s) is/are at the time obligated to assign
      intellectual property to University and is/are involved as employee(s),
      board member(s), consultant to or 10% or greater shareholder of Licensee,
      in the event that the Investigator(s) or any Associate(s),  make
      any invention in the Field of Use, the practice of which would not require
      the practice of an invention claimed in or covered by the Licensed Patent
      Rights (“Independent Invention”), then provided such Independent Invention
      is not subject to any prior contractual or
legal

                  

          

           

          
             

             

            
              
                
                  
                    Exclusive
License – APRO Bio
Pharma                                                                                                                                          

                     CU
1268H and CU1778H

                  

                   

                

                
                  Page
3 of 22

                  
                    

                  

                

                
                   

                

              

            

          

          

          
            	
                     
      

                  	
                    obligations,
      the University hereby grants to Licensee an exclusive option (“Option”) to
      obtain the exclusive, worldwide, commercial rights to each Independent
      Invention on terms and conditions to be negotiated in good faith by the
      parties following the exercise by Licensee of the
      Option.  .

                  

          

           

          
            	
                     
      

                  	
                    b.

                  	
                    University
      shall disclose each Independent Invention to Licensee in reasonable
      written detail after the University’s Technology Transfer Office receives
      notification from the inventor(s) that such Independent Invention has been
      made, and Licensee shall have ninety (90) days (the “Option Period”)
      following receipt of such invention disclosure to exercise the Option with
      respect to such Independent Invention by delivering to University written
      notice indicating that Licensee desires to exercise the
      Option.  Upon such notice, the parties shall negotiate in good
      faith for a period of up to sixty (60) days commercially reasonable terms
      and conditions for a license under the intellectual property rights
      relating to such Independent
Invention

                  

          

           

          

           

          SECTION
4.  SUBLICENSING

           

          
            	
                    4.1

                  	
                    Licensee
      may sublicense to one or more third parties, the rights granted in Section
      2 subject to the following
limitations:

                  

          

           

          
            	
                     
      

                  	
                    a.

                  	
                    Licensee
      agrees that any sublicenses granted by it shall impose restrictions and
      conditions upon sublicensees equivalent in scope to those imposed upon
      Licensee;

                  

          

           

          
            	
                     
      

                  	
                    b.

                  	
                    Licensee
      agrees that, in the event University terminates this Agreement pursuant to
      Subsection 13.2(b), any sublicenses granted shall be directly enforceable
      by University;

                  

          

           

          
            	
                     
      

                  	
                    c.

                  	
                    Licensee
      agrees that any sublicenses granted shall adequately protect University's
      security and property interest in University's Know-How and Patent Rights;
      and

                  

          

           

          
            	
                     
      

                  	
                    d.

                  	
                    Any
      sublicenses granted by Licensee shall provide only for cash consideration
      from sublicensees unless University has expressly consented otherwise in
      writing in advance.   Any sublicenses made in other than
      arm’s-length transactions, the value of the transaction attributed under
      this Section to such a transaction shall be that which would have been
      received in an arm’s-length transaction, based on a like transaction at
      that time.

                  

          

           

          
            
              	
                    	For purposes of this Agreement, the term “sublicense” shall mean the
      license by Licensee to a third party of all or a portion of the
      intellectual property rights licensed to it by University hereunder in
      consideration of payments from such sublicensee to Licensee, and shall not
      include Licensee’s engagement of or joint venture with subcontractors to
      perform various services for Licensee in connection with its development
      of the Licensed Products and Licensed Processes, including, but not
      limited to, laboratory work, pre-clinical and clinical testing, assistance
      with the regulatory approval process, manufacturing, marketing and other
      similar product development services, provided that such services are for
      the sole benefit of Licensee and such third party does not have any
      independent use of the Patent Rights or Know-How. Licensee agrees to
      assume all obligations for protecting the University’s security and
      property interest in University's Know-How and Patent Rights in any such
      joint venture work consistent with the terms of this
  Agreement.

            

             

          

          
            	
                    4.2

                  	
                    Licensee
      agrees to forward to University a copy of each fully executed sublicense
      agreement postmarked within thirty (30) days of the execution of such
      agreement.

                  

          

           

          
             

             

            
              
                
                  
                    Exclusive
License – APRO Bio
Pharma                                                                                                                                          

                     CU
1268H and CU1778H

                  

                   

                

                
                  Page
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          SECTION
5.  RETAINED RIGHTS

           

          
            	
                    5.1

                  	
                    Government
      Rights:

                  

          

           

          
            	
                     
      

                  	
                    a.

                  	
                    Notwithstanding
      any use of descriptive terms within this Agreement such as “exclusive”,
      this Agreement is subject to all of the terms and conditions of Title 35
      U.S.C. §§ 200-204, et seq., (“Bayh-Dole Act”) and 37 C.F.R. 401, as such
      may be amended.

                  

          

           

          
            	
                     
      

                  	
                    b.

                  	
                    Further,
      Licensee agrees to take all reasonable action necessary to enable
      University to satisfy its obligations
hereunder.

                  

          

           

          
             

            
              	
                      5.2

                    	University
      Rights:

            

             

          

          
            	
                     
      

                  	
                    a.

                  	
                    University
      shall have the right to practice the Patent Rights and Know-How for its
      own research and education, including sponsored research, which right
      shall be transferable to other nonprofit or educational institutions;
      provided that University takes reasonable steps to avoid the loss of any
      Patent Rights or any other intellectual property that Licensee does not
      want disclosed, as a result of such activities and takes reasonable steps
      to avoid disclosure of Know-How.

                  

          

           

          
            	
                     
      

                  	
                    b.

                  	
                    University
      recognizes the need for Licensee to protect any information and Know-How
      included in the Patent Rights.  University shall have the right
      to publish any information included in the Patent Rights and the Know-How
      provided that University, prior to submission to a third party for
      publication of any information or Know-How included in the Patent Rights
      ("Proposed Submission"), provides written notice of any Proposed
      Submission to Licensee, such written notice to include specifics regarding
      the information to be disclosed in the Proposed Submission and a copy of
      the Proposed Submission.  Licensee shall have twenty (20) days
      to review the Proposed Submission and provide to the University written
      approval or disapproval for the Proposed Submission.  If
      Licensee disapproves the Proposed Submission, the Parties have thirty (30)
      days from the date of the written notice to negotiate terms for
      submission.  In the event that the Parties, at the expiration of
      this thirty (30) day period, fail to agree upon terms for submission, then
      the dispute will be resolved in accordance with Section 14.7
      herein.

                  

          

           

          
            	
                     
      

                  	
                    c.

                  	
                    University
      shall have the right to publish any information included in the Patent
      Rights and the Know-How provided that University takes reasonable steps to
      avoid the loss of any patent rights as a result of University exercising
      its rights under this Paragraph.  University shall make a
      reasonable effort to provide Licensee with ten (10) days’ advance notice
      of any such publication, including a copy of the information proposed to
      be published.

                  

          

           

          

           

          SECTION 6.  FEES
& ROYALTIES

           

          
            	
                    6.1

                  	
                    As
      consideration for the grant of rights under this
  Agreement,

                  

          

           

          
            	
                     
      

                  	
                    a.

                  	
                    Licensee
      agrees to pay to University a nonrefundable and non-creditable license fee
      as set forth in Exhibit
      C.

                  

          

           

          
            	
                     
      

                  	
                    b.

                  	
                    Licensee
      agrees to pay to University an annual, nonrefundable minimum royalty as
      set forth in Exhibit
      C.  The minimum annual royalty is due and payable on
      first

                  

          

           

          
             

             

            
              
                
                  
                    Exclusive
License – APRO Bio
Pharma                                                                                                                                          

                     CU
1268H and CU1778H

                  

                   

                

                
                  Page
5 of 22

                  
                    

                  

                

                
                   

                

              

            

          

          

          
            	
                     
      

                  	
                    business
      day of each calendar year and may be credited against any earned royalties
      due for Net Sales made that year;

                  

          

           

          
            	
                     
      

                  	
                     c.

                  	
                    Licensee
      agrees to pay University royalties as set forth in Exhibit
      C;

                  

          

           

          
            	
                    6.2

                  	
                    No
      multiple royalties shall be payable because any Licensed Products or
      Licensed Processes are covered by more than one of the Patent
      Rights.

                  

          

           

          
            	
                    6.3

                  	
                    On
      sales of Licensed Products by Licensee to sublicensees or on sales made in
      other than arm’s-length transactions, the value of the Net Sales
      attributed under this Section to such a transaction shall be that which
      would have been received in an arm’s-length transaction, based on a like
      transaction at that time.

                  

          

           

          
            	
                    6.4

                  	
                    Payment Due
      Date:

                  

          

           

          
            	
                     
      

                  	
                    a.

                  	
                    Unless
      otherwise provided herein, all payments required under this Agreement
      shall be due within thirty (30) days of written notice from
      University.

                  

          

           

          
            	
                     
      

                  	
                    b.

                  	
                    Payments
      past due shall bear interest at the rate of one and one-half percent (1
      1/2%) per month compounded, or the maximum interest rate allowed by
      applicable law, whichever is less.

                  

          

           

          
            	
                     
      

                  	
                    c.

                  	
                    All
      payments to Colorado are in United States Dollars, made payable to “The
      Regents of the University of Colorado” and mailed
  to:

                  

          

           

          
            	
                     
      

                  	
                                           
      Office of Technology Transfer

                  

          

          
            	
                     
      

                  	
                                           
      University of Colorado, 588 SYS

                  

          

          
            	
                     
      

                  	
                                           
      Suite 100, 4740 Walnut Street

                  

          

          
            	
                     
      

                  	
                                           
      Boulder, CO  80309 

                            ATTN:
      Accounts Receivable

                  

          

                                         

           

          SECTION
7.  REPORTS, RECORDS, AND AUDITS

           

          
            	
                    7.1

                  	
                    Reports:

                  

          

           

          
            	
                     
      

                  	
                    a.

                  	
                    Licensee
      shall, without request by University, within sixty (60) days following the
      end of each fiscal quarter of Licensee and sixty (60) days following the
      end of Licensee’s fiscal year, render to University written reports of the
      Net Sales of Licensed Products and/or Licensed Processes subject to
      royalty hereunder made during the prior three (3) month period and shall
      simultaneously pay to University the royalties due on such Net Sales, if
      any, in United States Dollars.  Licensee shall not be required
      to provide any such reports during the period prior to its initial sale of
      Licensed Products and/or Licensed
Processes.

                  

          

           

          
            	
                     
      

                  	
                    b.

                  	
                    Minimum
      annual royalties, if any, which are due University for any fiscal year,
      shall be paid by Licensee along with the written report due under this
      Agreement with respect to such fiscal
year.

                  

          

           

          
            	
                     
      

                  	
                    c.

                  	
                    Unless
      otherwise agreed to by the Parties, the written report shall be in the
      substantially the same form as Exhibit
      D.

                  

          

           

          
            
              	
                      7.2

                    	Records:

            

          

           

          
            	
                     
      

                  	
                    a.

                  	
                    Licensee
      shall keep accurate records and shall compel its Affiliates and
      sublicensees to keep accurate records, in sufficient detail to reflect its
      operations

                  

          

          
             

             

            
              
                
                  
                    Exclusive
License – APRO Bio
Pharma                                                                                                                                          

                     CU
1268H and CU1778H

                  

                   

                

                
                  Page
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                    under
      this Agreement and to enable the royalties accrued and payable under this
      Agreement to be determined.

                  

          

           

          
            	
                     
      

                  	
                    b.

                  	
                    Such
      records shall be retained for at least three (3) years after the close of
      the period to which they pertain, or for such longer time as may be
      required to finally resolve any question or discrepancy raised by
      University.

                  

          

           

          
            	
                    7.3

                  	
                    Audits:

                  

          

          
             

             

            
              	
                       
      

                    	
                      a.

                    	
                      Upon
      the request of University, with reasonable notice, but not more frequently
      than once a year, Licensee shall permit an independent public accountant
      selected and paid by University to have access during regular business
      hours to such records as may be necessary to verify the accuracy of
      royalty payments made or payable
hereunder.

                    

            

             

          

          
            
              	
                       
      

                    	
                      b.

                    	
                      Said
      accountant shall disclose information acquired to University only to the
      extent that it should properly have been contained in the royalty reports
      required under this Agreement.

                    

            

             

          

          
            
              	
                       
      

                    	
                      c.

                    	
                      If
      an inspection shows an underreporting or underpayment in excess of five
      percent (5%) for any twelve (12) month period, then Licensee shall
      reimburse University for the cost of the inspection and pay the amount of
      the underpayment including any interest as required by this
      Agreement.

                    

            

             

          

          

           

          SECTION
8.  CONFIDENTIAL INFORMATION

           

          
            	
                    8.1

                  	
                    Both
      University and Licensee (hereinafter, “Party” or “Parties”) shall
      vigilantly protect the confidential information related to the Patent
      Rights and Know-How from disclosure to third parties; and no such
      disclosure shall be made without the disclosing Party’s written
      permission.

                  

          

           

          
            	
                    8.2

                  	
                    All
      written documents containing confidential information and other material
      in tangible form received by either Party under this Agreement shall
      remain the property of the disclosing Party, and such documents and
      materials, together with copies of excerpts thereof, shall promptly be
      returned to disclosing Party upon request, except one copy may be retained
      for archival purposes.

                  

          

           

          
            	
                    8.3

                  	
                    Licensee
      acknowledges that University is subject to the Colorado Open Records Act
      (C.R.S. § 24-72-201, et seq.).  All plans and reports marked
      “Confidential” shall be treated by University as confidential to the
      extent permitted under § 24-72-204.

                  

          

           

          

           

          SECTION
9.  LICENSEE DUE DILIGENCE OBLIGATIONS

           

          
            	
                    9.1

                  	
                    Licensee
      shall use commercially reasonable efforts to bring Licensed Products and
      Licensed Processes to market through a thorough, vigorous and diligent
      program for exploitation of the Patent Rights, to develop internal or
      external manufacturing capabilities, to continue active, diligent
      marketing efforts, and to satisfy the needs of such market with the
      Licensed Products and Licensed Processes throughout the life of this
      Agreement.

                  

          

           

          
            	
                    9.2

                  	
                    Licensee
      acknowledges and agrees to the performance and diligence Milestones
      defined in Exhibit
      E, provided however, that
      specific dates for such milestones may be adjusted if required due to
      developments beyond the reasonable control of Licensee. It may be
      necessary to repeat or redesign an experiment (defined for the purpose of
      this Section 9.2

                  

          

           

          
             

             

            
              
                
                  
                    Exclusive
License – APRO Bio
Pharma                                                                                                                                          

                     CU
1268H and CU1778H

                  

                   

                

                
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                    as
      "Experimental Delays").  University hereby recognizes that any
      such Experimental Delays are beyond the reasonable control of
      Licensee.  In the event that Licensee's performance is adversely
      affected by any such Experimental Delays, University shall take reasonable
      steps to adjust the Milestones accordingly. Milestone dates can only be
      adjusted by mutual agreement in a written amendment to this Agreement. No
      additional changes to the dates of such Milestones will be made without
      the written consent, which will not be unreasonably denied by
      University.  In the event that the Parties fail to agree upon
      adjustment of the Milestones, then the dispute will be resolved in
      accordance with Section 14.7
herein.

                  

          

           

          
            	
                    9.3

                  	
                    Licensee
      agrees to use commercially reasonable efforts to develop a sublicensing
      program to commercialize Licensed Products and Licensed Processes in any
      Field of Use or Territory that Licensee decides not to exploit for its own
      benefit.

                  

          

           

          

           

          SECTION
10.  PATENT ADMINISTRATION

           

          
            	
                    10.1

                  	
                    Licensee
      shall reimburse University within thirty (30) days from the Effective Date
      an amount representing all patent expenses incurred by University prior to
      the Effective Date as set forth in Exhibit
      C.

                  

          

           

          10.2           Licensee Rights:

           

          
            	
                     
      

                  	
                    a.

                  	
                    Licensee
      shall control the preparation, filing, prosecution, and maintenance of any
      and all patent applications or patents included in the Patent Rights on or
      after the Effective Date and shall furnish copies of relevant
      patent-related documents to University.  Licensee shall provide
      University with advance written notice of its plans to file or prosecute
      any such patent applications or patents. University shall cooperate with
      Licensee in providing any additional scientific and other information
      reasonably necessary for Licensee to prepare, file, prosecute and maintain
      such patent applications and
patents.

                  

          

           

          
            	
                     
      

                  	
                    (i)

                  	
                    University
      shall have thirty (30) business days to review and comment on
      patent-related documents prior to the filing of said
      documents.

                  

          

           

           

          
            	
                     
      

                  	
                    b.

                  	
                    Licensee
      may request that University assume primary responsibility for all patent
      activities, including all costs, associated with the perfection and
      maintenance of Patent Rights.  Licensee shall provide University
      with sixty (60) days’ advance written notice of such
      request.  In the event University agrees to such
      request:

                  

          

           

          
            	
                     
      

                  	
                    (i)

                  	
                    University’s
      patent counsel shall keep Licensee advised as to the status of the Patent
      Rights by providing Licensee, in a timely manner prior to their due date,
      with copies of all official documents and correspondence relating to the
      prosecution, maintenance, and validity of the Patent
      Rights. 

                  

          

           

          
            	
                     
      

                  	
                    (ii)

                  	
                    University
      shall consult with Licensee in such prosecution and maintenance, shall
      diligently seek Licensee’s advice on all matters pertaining to the Patent
      Rights, shall diligently seek strong and broad claims under the Patent
      Rights, and shall not abandon prosecution of any patent application
      without first notifying Licensee sixty (60) days prior to any bar date, of
      University’s intention and reason therefore, and
      providing Licensee with reasonable opportunity to assume responsibility
      for prosecution, maintenance and associated costs of such patents and
      patent applications. 

                  

          

           

          
             

             

            
              
                
                  
                    Exclusive
License – APRO Bio
Pharma                                                                                                                                          

                     CU
1268H and CU1778H

                  

                   

                

                
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                      c.

                    	
                      No
      claims of the Patent Rights shall be modified, deleted, or abandoned by
      Licensee or its patent counsel without the express, prior written approval
      of University, such approval shall not be unreasonably withheld or
      delayed. 

                    

            

             

          

          
            	
                     
      

                  	
                    (i)

                  	
                    Licensee’s
      obligations under this Subsection shall include, without limitation, an
      obligation to inform University in a timely manner that Licensee will not
      pursue patents in any foreign countries where patent protection may be
      available such that University may prosecute patents in such countries if
      University so desires. 

                  

          

           

          
            	
                     
      

                  	
                    (ii)

                  	
                    If
      University pursues such foreign patent protection, then from that time
      forward all such subject patent applications and any patents arising there
      from shall no longer be considered Patent Rights under this Agreement and
      Licensee shall forfeit all rights under this Agreement to such patent
      applications and any patents arising there from.  University
      shall be responsible for all costs associated with those patent
      applications and patents it decides to pursue and
  maintain.

                  

          

          
             

            
              	
                       
      

                    	
                      d.

                    	
                      In
      the event that Licensee fails to diligently control preparation, filing,
      prosecution, and maintenance of any and all patent applications or patents
      included in the Patent Rights after thirty (30) days' written notice by
      University of any such failure,  University may provide Licensee
      with sixty (60) days’ advance written notice that University wishes to
      resume control, at Licensee’s expense, of the preparation, filing,
      prosecution, and maintenance of any and all patent applications or patents
      included in the Patent Rights.  Any such failure on behalf of
      Licensee shall be determined by University, acting reasonably, with such
      determination to be based on what would be commercially reasonable and
      customary with respect to patent obligations and expectations for a
      company of Licensee's size, financial status and position in the
      marketplace.  If University elects to resume such
      responsibilities, Licensee agrees to cooperate fully with University, its
      attorneys, and agents in the preparation, filing, prosecution, and
      maintenance of any and all patent applications or patents and to provide
      University with complete copies of any and all documents or other
      materials that University deems necessary to undertake such
      responsibilities.

                    

            

             

          

           

           

          SECTION
11.  PATENT ENFORCEMENT

           

          
            	
                    11.1

                  	
                    University
      and Licensee agree to inform the other Party promptly in writing of any
      suspected infringement of the Patent Rights by a third
      party.  Licensee shall have, for a period of 120 days from the
      date of any notice of infringement of the Patent Rights, the first right
      to institute suit against such third party and any recovery or settlement
      shall be applied first to defray the unreimbursed costs and expenses
      (including reasonable attorneys’ fees through appeal) incurred by Licensee
      in the action, second to pay University an amount equal to the
      Sublicensing Royalty that University would otherwise be entitled to at
      that time pursuant to Exhibit C to this
      Agreement if the amount remaining after the reimbursement of costs and
      expenses was treated as Sublicense Revenue, as defined in Exhibit C, and third any
      remaining balance shall be paid to
Licensee.

                  

          

           

          
            	
                    11.2

                  	
                    Thereafter,
      University and Licensee shall each have the right to institute an action
      for infringement of the Patent Rights against such third party in
      accordance with the following:

                  

          

           

          
             

             

            
              
                
                  
                    Exclusive
License – APRO Bio
Pharma                                                                                                                                          

                     CU
1268H and CU1778H

                  

                   

                

                
                  Page
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                      a.

                    	
                      If
      both University and Licensee agree to institute suit jointly, the suit
      shall be brought in both their names, the out-of-pocket costs thereof
      shall be borne equally, and any recovery or settlement, after the
      reimbursement of costs and expenses (including reasonable attorneys’ fees
      incurred in the action, shall be shared
equally.

                    

            

             

          

          
            	
                     
      

                  	
                    b.

                  	
                    University
      and Licensee shall agree to the manner in which they shall exercise
      control over such suit.  Each Party, at its option, may be
      represented by separate counsel of its own selection, the fees for which
      shall be paid by University.

                  

          

           

          
            	
                     
      

                  	
                    c.

                  	
                    In
      the absence of an agreement to institute a suit jointly, University may,
      but is not obligated to, institute suit, and at its option, join Licensee
      as a plaintiff.  If University decides to institute suit, it
      shall notify Licensee in writing.

                  

          

           

          
            	
                     
      

                  	
                    d.

                  	
                    Licensee’s
      failure to notify University in writing within thirty (30) days after the
      date of University’s notice pursuant to Section 11.2(c) above, that it
      will join in enforcing the Patent Rights pursuant to the terms hereof,
      shall be deemed conclusively to be Licensee’s assignment to University of
      all rights, causes of action, and damages resulting from any such alleged
      infringement.  University shall bear the entire cost of such
      litigation and shall be entitled to retain the entire amount of any
      recovery or settlement.

                  

          

           

          
            	
                     
      

                  	
                    e.

                  	
                    In
      the absence of an agreement to institute a suit jointly, and if University
      does not notify Licensee of its intent to pursue legal action within
      ninety (90) days, as provided in Subsections 11.1 – 11.2, Licensee may
      again have the right to institute suit.  In such event, Licensee
      shall bear the entire cost of such litigation and any recovery or
      settlement shall be applied first to defray the unreimbursed costs and
      expenses (including reasonable attorneys’ fees) incurred by Licensee in
      the action, second to pay University an amount equal to the Sublicensing
      Royalty (as set forth in Exhibit C) that
      University would otherwise be entitled to pursuant to Exhibit C to this
      Agreement if the amount remaining after the reimbursement of costs and
      expenses was treated as Sublicense Revenues, as defined in Exhibit C, and third any
      remaining balance shall be paid to
Licensee.

                  

          

           

          
            
              	
                       
      

                    	
                      f.

                    	
                      If
      Licensee undertakes to defend the Patent Rights by litigation, Licensee
      may deduct from its royalty payments to University with respect to the
      Patent Rights subject to suit an amount not exceeding fifty (50%) of
      reasonable attorney's fees, provided however, that such reduction shall
      not exceed fifty percent (50%) of the total royalty due to University in
      any single calendar year.

                    

            

             

          

          
            	
                    11.3

                  	
                    In
      the event that a declaratory judgment action alleging invalidity or
      non-infringement of any of the Patent Rights shall be brought against
      Licensee or raised by way of counterclaim or affirmative defense in an
      infringement suit brought by Licensee under this Section, pursuant to this
      Agreement and the provisions of Title 35 U.S.C. § 29 or other statutes,
      Licensee may:

                  

          

           

           

          
             

             

            
              	
                       
      

                    	
                      a.

                    	
                      defend
      the suit in its own name, at its own expense, and on its own behalf for
      presumably valid claims in the Patent
Rights;

                    

            

            
               

               

              
                	
                         
      

                      	
                        b.

                      	
                        in
      any such suit, ultimately to enjoin infringement and to collect for its
      use, damages, profits, and awards of whatever nature recoverable for such
      infringement consistent with this Section;
and

                      

              

              
                 

                 

                
                  	
                           
      

                        	
                          b.

                        	
                          settle
      any claim or suit for declaratory judgment involving the Patent Rights,
      except that Licensee shall have no right to deny the validity of any
      patent, patent claim, or patent application included in the Patent Rights
      in any compromise or

                        

                

                 

              

            

          

          
             

             

            
              
                
                  
                    Exclusive
License – APRO Bio
Pharma                                                                                                                                          

                     CU
1268H and CU1778H

                  

                   

                

                
                  Page
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                      settlement
      of any claim or suit for declaratory judgment without the express prior
      written consent of University; provided however, that University shall
      have the first right to take such actions described in this Subsection and
      shall have a continuing right to intervene in such
      suit.  Licensee shall take no action to compel University either
      to initiate or to join in any such declaratory judgment
      action.

                    

            

            
               

              
                	
                         
      

                      	
                        c.

                      	
                        If
      Licensee elects not to defend against such declaratory judgment action,
      University, at its option, may do so at its own expense and shall be
      entitled to retain the entire amount of any recovery or
      settlement.

                      

              

               

            

          

          
            	
                    11.4

                  	
                    In
      all cases, Licensee agrees to keep University reasonably apprised of the
      status and progress of any
litigation.

                  

          

           

          

           

          SECTION
12.  WARRANTIES, INDEMNIFICATIONS, AND INSURANCE

          

           

          
            	
                    12.1

                  	
                    Representations.  University
      is the owner of the Patent Rights and has full right and authority to
      enter into this Agreement.

                  

          

           

          
            	
                    12.2

                  	
                    Negation of
      Warranties:

                  

          

           

          
            	
                     
      

                  	
                    a.

                  	
                    UNIVERSITY
      MAKES NO REPRESENTATIONS, EXTENDS NO WARRANTIES OF ANY KIND, EITHER
      EXPRESS OR IMPLIED, AND ASSUMES NO RESPONSIBILITIES WHATSOEVER WITH
      RESPECT TO USE, SALE, OR OTHER DISPOSITION BY LICENSEE, SUBLICENSEE(S), OR
      THEIR VENDEES OR OTHER TRANSFEREES OF LICENSED PRODUCTS OR LICENSED
      PROCESSES INCORPORATING OR MADE BY USE OF THE PATENT
      RIGHTS.  THERE ARE NO EXPRESS OR IMPLIED WARRANTIES OF
      MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR THAT THE USE OR
      SALE OF SUCH PRODUCTS OR PROCESSES WILL NOT INFRINGE ANY PATENT,
      COPYRIGHT, TRADEMARK, SERVICE MARK, OR OTHER
  RIGHTS.

                  

          

           

          
            	
                     
      

                  	
                    b.

                  	
                    Notwithstanding
      anything in this Agreement to the contrary, nothing in this Agreement
      shall be construed as:

                  

          

           

          
            	
                     
      

                  	
                    (i)

                  	
                    A
      warranty or representation by University as to rights in Know-How or the
      validity or scope of any of the Patent
Rights;

                  

          

           

          
            	
                     
      

                  	
                    (ii)

                  	
                    A
      warranty or representation that the Patent Rights or anything made, used,
      sold or otherwise disposed of under the License will or will not infringe
      patents, copyrights or other rights of third parties;
  or

                  

          

           

          
            	
                     
      

                  	
                    (iii)

                  	
                    An
      obligation to furnish any know-how or technology not agreed to in this
      Agreement, to bring or prosecute actions or suits against third parties
      for infringement (except to the extent described in Subsections 11.1 –
      11.2), or to provide any services other than those specified in this
      Agreement.

                  

          

           

          
            
              	
                      12.3

                    	
                      Licensee
      Indemnification:  Except
      as set forth in Section 12.4, Licensee shall indemnify, defend, and hold
      University, its regents, employees, students, officers, agents,
      Affiliates, and representatives harmless from and against all liability,
      demands, damages, losses, and expenses (including reasonable attorney
      fees) (collectively, “Claims"), for death, personal injury, illness,
      property damage, noncompliance with applicable laws and any other claim,
      proceeding, demand, expense and liability of any kind whatsoever in
      connection with or arising out
of:

                    

            

          

           

          
             

             

            
              
                
                  
                    Exclusive
License – APRO Bio
Pharma                                                                                                                                          

                     CU
1268H and CU1778H

                  

                   

                

                
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                        a.

                      	
                        the
      use by or on behalf of Licensee, its sublicensees, Affiliates, directors,
      officers, employees, or third parties of any Patent Rights contrary to the
      terms of this Agreement;

                      

              

               

            

          

          
            	
                     
      

                  	
                    b.

                  	
                    the
      design, manufacture, production, distribution, advertisement, consumption,
      sale, lease, sublicense or use of any Licensed Product(s), Licensed
      Process(es) or materials by Licensee, or other products or processes
      developed in connection with or arising out of the Patent Rights;
      or

                  

          

           

          
            
              
                	
                         
      

                      	
                        c.

                      	any right or obligation of Licensee under this
Agreement.

              

               

              
                
                  
                    	
                          	With respect to Licensee’s indemnification provided for in this
      Section 12.3, the following provisions shall apply, Licensee shall (i)
      receive prompt notification from University in writing of any such Claims,
      and (ii) have full authority, information and assistance from University
      to defend such Claims.

                  

                

                 

              

            

          

          
            
              
                	
                        12.4

                      	
                        Insurance:  Licensee
      shall obtain general liability insurance, including product liability
      insurance, on such terms and in such amounts as are reasonable and
      customary within its
industry.

                      

              

            

            

 

          

           

          SECTION
13.  DURATION, TERMINATION, AND CONVERSION

           

          
            	
                    13.1

                  	
                    This
      Agreement shall become effective as of the Effective Date and shall expire
      on the expiration date of the last to expire patents within Patent
      Rights.

                  

          

           

          
             

            
              
                	
                        13.2

                      	Termination of
      Agreement:

              

            

          

           

          
            	
                     
      

                  	
                    a.

                  	
                    Licensee
      may terminate this Agreement at any time if University is in breach and
      University fails to cure the breach or default within thirty (30) days of
      written notice of the breach or default unless such breach or default is
      of a character that cannot be cured within thirty (30) days, in which
      event, University shall not be deemed to be in default unless it fails to
      diligently commence and pursue action to cure such default during such
      thirty day period; or, if at any time the general premise of the research
      related to the Patent Rights is proved invalid or, on sixty (60) days
      written notice to University, if
Licensee:

                  

          

           

          
            	
                     
      

                  	
                     (i)

                  	
                    pays
      all amounts due as well as all non-cancelable costs to University through
      the termination date;

                  

          

           

          
            	
                     
      

                  	
                    (ii)

                  	
                    submits
      a final report of the type described in Section
  7;

                  

          

           

          
            	
                     
      

                  	
                    (iii)

                  	
                    returns
      any confidential materials provided to Licensee by University in
      connection with this Agreement;

                  

          

           

          
            	
                     
      

                  	
                    (iv)

                  	
                    suspends
      its use and sales of the Licensed Product(s) and Licensed Process(es);
      provided however, that subject to making the payments required by Section
      6 and the reports required by Section 7, Licensee may, for a period of
      ninety (90) days after the effective date of such termination, sell all
      Licensed Products which may be in inventory;
and

                  

          

           

          
            	
                     
      

                  	
                    (v)

                  	
                    provides
      University the right to access any regulatory information filed with any
      U.S. or foreign government agency with respect to Licensed Products and
      Licensed Processes.

                  

          

           

          
            	
                     
      

                  	
                    b.

                  	
                    University
      may terminate this Agreement in the event
that:

                  

          

           

          
             

             

            
              
                
                  
                    Exclusive
License – APRO Bio
Pharma                                                                                                                                          

                     CU
1268H and CU1778H

                  

                   

                

                
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                       (i)

                    	
                      Licensee
      fails to pay University any amounts when due to University hereunder and
      Licensee fails to make such payment within thirty (30) days written
      notice;

                    

            

            
               

              
                	
                         
      

                      	
                         (ii)

                      	
                        Licensee
      becomes insolvent, files a petition in bankruptcy, or has such a petition
      filed against it and such petition is not dismissed within sixty (60) days
      of the filing date, or

                      

              

               

            

          

           

          SECTION
14.  GENERAL

           

          
            	
                    14.1

                  	
                    Assignment:  This
      Agreement shall be binding upon and inure to the benefit of the respective
      successors and assigns of the Parties hereto.  However, Licensee
      may not assign its rights in this Agreement without prior written approval
      by University, such approval not to be unreasonably withheld or
      delayed.

                  

          

           

          
            	
                    14.2

                  	
                    Notice:  Notice
      hereunder shall be deemed sufficient if given by registered mail, postage
      prepaid, and addressed to the Party to receive such notice at the address
      given below, or such other address as may hereafter be designated by
      notice in writing.

                  

          

           

          
            
              
                
                  	
                                  University:

                        	
                          Licensee:

                        
	
                                  License
      Administrator

                        	
                          Ed
      Larkin, CFO

                        
	
                                  Office
      of Technology Transfer

                        	
                          APRO Bio Pharmaceutical
      Corporation

                        
	
                                  University of
      Colorado                                                                           

                        	
                           5350 S. Roslyn St. #400

                        
	
                                  4740
      Walnut Street, Suite 100

                        	
                          Greenwood Village,
      CO  80111

                        
	
                                  Boulder, CO
      80309

                        	 
      

                

              

            

             

          

          
            	
                    14.3

                  	
                    Use of Names
      and Marks:  Licensee agrees not
      to identify University in any promotional advertising, press releases,
      sales literature or other promotional materials to be disseminated to the
      public or any portion thereof without University prior written consent in
      each case, except that (a) Licensee may state that it has a license for
      the Patent Rights from University; (b) Licensee may disclose as may be
      required by law, regulation, judicial or administrative process or in
      accordance with applicable professional standards, rules, or in connection
      with any public or private offerings or disclosures required by law; or
      (c) to the extent such information shall have otherwise become publicly
      available (including, without limitation, any information filed with any
      governmental agency and available to the public). Licensee further agrees
      not to use the name of University or any University faculty member,
      employee or student or any trademark, service mark, trade name, copyright
      or symbol of University, without the prior written consent of the
      University, entity or person whose name is sought to be used, which
      consent shall not be unreasonably withheld or
    delayed.

                  

          

           

          
            
              	
                      14.4

                    	Marking:  Licensee
      agrees to:

            

             

          

          
            	
                     
      

                  	
                    a.

                  	
                    Cause
      Licensed Products or the product of Licensed Processes sold under this
      license to be marked with the notice of the patent numbers or patent
      pending, as may be appropriate.

                  

          

           

          
            	
                     
      

                  	
                    b.

                  	
                    Commercially
      reasonable efforts to comply with all laws and regulations of the United
      States and any other country as appropriate concerning or controlling the
      import or export of the Licensed Products, data, software, laboratory
      prototypes or other commodities.  University makes no
      representation that a license or consent for
      export will not be required by applicable governmental agencies, or if
      required, that it will be
issued.

                  

          

           

          
             

             

            
              
                
                  
                    Exclusive
License – APRO Bio
Pharma                                                                                                                                          

                     CU
1268H and CU1778H

                  

                   

                

                
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                      c.

                    	
                      Commercially
      reasonable efforts to comply with all applicable statutes, regulations,
      and guidelines, including applicable governmental regulations, policies
      and guidelines in its use of any University-supplied
      materials.  Licensee agrees not to use the materials for
      research involving human subjects or clinical trials in the United States
      without complying with 21 C.F.R. Part 50 and 45 C.F.R. Part 46 (as those
      regulations may be amended from time to time).  Written
      notification to University of research involving human subjects or
      clinical trials outside of the United States shall be given no later than
      sixty (60) days prior to commencement of such research or
      trials.

                    

            

             

          

          
            	
                    14.5

                  	
                    Compliance with the
      Law:  Licensee shall use commercially reasonable efforts
      to comply with all commercially material local, state, federal, and
      international laws and regulations relating to its obligations under this
      Agreement regarding the development, manufacture, use, and sale of
      Licensed Products and Licensed
Processes.

                  

          

           

          
            	
                    14.6

                  	
                    Choice of
      Law:  This Agreement shall be governed by and construed
      in accordance with the laws of the State of
  Colorado.

                  

          

           

          
            	
                    14.7

                  	
                    Dispute
      Resolution:  In the event of any dispute arising out of
      or relating to this Agreement, the affected Party shall promptly notify
      the other Party (“Notice Date”), and the Parties shall attempt in good
      faith to resolve the matter.

                  

          

           

          
            	
                     
      

                  	
                    a.

                  	
                    Any
      disputes not so resolved shall be referred to senior executives, who shall
      meet at a mutually acceptable time and location within thirty (30) days of
      the Notice Date and shall attempt to negotiate a
    settlement.

                  

          

           

          
            
              	
                       
      

                    	
                      b.

                    	
                      If
      the senior executives fail to meet within thirty (30) days of the Notice
      Date, or if the matter remains unresolved for a period of sixty (60) days
      after the Notice Date, the Parties hereby irrevocably submit to the
      jurisdiction of a court of competent jurisdiction in the State of
      Colorado, and, by execution and delivery of this Agreement, each (i)
      accepts, generally and unconditionally, the jurisdiction of such court and
      any related appellate court, and (ii) irrevocably waives any objection it
      may now or hereafter have as to the venue of any such suit, action or
      proceeding brought in such court or that such court is an inconvenient
      forum.

                    

            

             

          

          
            	
                    14.8

                  	
                    Merger and Modification of
      Agreement:  The terms and provisions contained in this
      Agreement, and its Exhibits and Addenda, constitute the entire Agreement
      between the Parties and shall supersede all previous communications,
      representations, agreements or understandings, either oral or written,
      between the Parties hereto with respect to the subject matter hereof, and
      no agreement or understanding varying or extending this Agreement will be
      binding upon either Party hereto, unless in writing which specifically
      refers to this Agreement, signed by duly authorized officers or
      representatives of the respective Parties, and the provisions of this
      Agreement not specifically amended thereby shall remain in full force and
      effect according to their terms.

                  

          

           

          
            	
                    14.9

                  	
                    Severability:  The
      provisions and clauses of this Agreement are severable, and in the event
      that any provision or clause is determined to be invalid or unenforceable
      under any controlling body of the law, such invalidity or unenforceability
      will not in any way affect the validity or enforceability of the remaining
      provisions and clauses hereof.

                  

          

           

          
            
              	
                      14.10

                    	
                      Scope:  This
      Agreement does not establish a joint venture, agency or partnership
      between the Parties, nor create an employer - employee
      relationship.

                    

            

             

          

          
            
            

          

           

          
             

             

            
              
                
                  
                    Exclusive
License – APRO Bio
Pharma                                                                                                                                          

                     CU
1268H and CU1778H

                  

                   

                

                
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                    14.11

                  	
                    Preservation of
      Immunity:  The Parties agree that nothing in this
      Agreement is intended or shall be construed as a waiver, either express or
      implied, of any of the immunities, rights, benefits, defenses or
      protections provided to University under governmental or sovereign
      immunity laws from time to time applicable to University, including,
      without limitation, the Colorado Governmental Immunity Act (C.R.S. §
      24-10-101, et seq.) and the Eleventh Amendment to the United States
      Constitution.

                  

          

           

          
            	
                    14.12

                  	
                    Headings:  Headings
      are included herein for convenience only and shall not be used to construe
      this Agreement.

                  

          

           

          
            	
                    14.13

                  	
                    The
      provisions of Sections 6 and 10, and Subsections 7.1, 7.2, 12.1, 12.2,
      12.3, 13.1, 14.3, 14.6 – 14.9, and 14.11, and any other provision of this
      Agreement that by its nature is intended to survive, shall survive any
      termination or expiration of this
Agreement.

                  

          

           

           

          Authorized
signatures are on the following page

           

          
             

             

            
              
                
                  
                    Exclusive
License – APRO Bio
Pharma                                                                                                                                          

                     CU
1268H and CU1778H

                  

                   

                

                
                  Page
15 of 22

                  
                    

                  

                

                
                   

                

              

            

          

          

          IN WITNESS WHEREOF the parties
hereto have caused this Agreement, to be executed in duplicate by their
respective duly authorized officers.

          
             

            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        	 
      

                                                University:

                                              	 
      

                                                Licensee:

                                              
	 	 
      	 	 
      
	 By:	
                                                /s/ David N. Allen

                                              	By:	
                                                /s/
      Vicki D. E. Barone

                                              
	 	 
      	 	 
      
	 Name:	
                                                David
      N. Allen

                                              	Name: 	
                                                Vicki
      D. E. Barone

                                              
	 	 
      	 	 
      
	 Title:	
                                                Associate
      VP for Technology Transfer

                                              	Title: 	
                                                Chairman of the Board

                                              
	 	 
      	 	 
      
	
                                                Date:

                                              	
                                                 

                                              	
                                                Date:

                                              	
                                                 

                                              
	 	 
      	 	 
      
	
                                                Office
      of Technology Transfer

                                              	
                                                APRO Bio Pharmaceutical
      Corporation

                                              
	
                                                University
      of Colorado, 588 SYS

                                              	
                                                5350 S. Roslyn St. #400

                                              
	
                                                4740
      Walnut Street, Suite 100

                                              	
                                                Greenwood
      Village, CO 80111

                                              
	
                                                Boulder,
      CO 80309-0588

                                              	 	 
      

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

            

               

               

              
                
                  
                    
                      Exclusive
License – APRO Bio
Pharma                                                                                                                                          

                       CU
1268H and CU1778H

                    

                     

                  

                  
                    Page
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            EXCLUSIVE
LICENSE AGREEMENT

           

          EXHIBIT
A

           

          FIELDS
OF USE and TERRITORY

           

          

           

          - Fields of use:
prevention and treatment of graft rejection and promotion of graft
survival.

           

          - Territory:
worldwide.

           

          
             

             

            
              
                
                  
                    Exclusive
License – APRO Bio
Pharma                                                                                                                                          

                     CU
1268H and CU1778H

                  

                   

                

                
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            EXCLUSIVE
LICENSE AGREEMENT

          EXHIBIT  B

           

          PATENT
RIGHTS

          

           

          
            	
                    1.

                  	
                    “Inhibitors
      Of Serine Protease Activity And Their Use In Methods And Compositions For
      Treatment Of Graft Rejection And Promotion Of Graft Survival” PCT Patent
      Application filed on June 7, 2006, CU TTO File No.
  CU1268H

                  

          

          

           

          
            	
                    2.

                  	
                    “Methods
      and Compositions for Treatment of Graft Rejection and Promotion of Graft
      Survival,” Continuation in part filed on July 22, 2008, CU TTO File No.
      CU1778H.

                  

          

           

          
             

             

            
              
                
                  
                    Exclusive
License – APRO Bio
Pharma                                                                                                                                          

                     CU
1268H and CU1778H

                  

                   

                

                
                  Page
18 of 22

                  
                    

                  

                

                
                   

                

              

            

          

           

           

          
            EXCLUSIVE
LICENSE AGREEMENT

          EXHIBIT
C

           

          ROYALTIES

           

          In accordance with Section
6, Licensee shall pay the following to University:

          
            

            
              
                
                  
                    
                      	
                              Patent
      expenses:

                            	
                              Thirty
      four thousand seven hundred seventeen dollars ($34,717), plus additional
      costs attributable to any other patent expense related to University case
      #CU1268H and CU1778H in an amount not to exceed fifteen thousand dollars
      ($15,000).

                            
	 
      	 
      
	
                              License
      fee:

                            	
                              To
      be issued within thirty (30) days of the Effective Date: shares of
      Licensee's common stock representing two percent (2%) of all outstanding
      shares of capital stock of Licensee on a fully diluted basis at the
      closing of Licensee’s planned reverse merger, which calculation shall
      include all Placement Agent Warrants, Units, and Shares issued in
      connection with the closing of the merger, as described in the merger term
      sheet.   The shares shall be issued to University License
      Equity Holdings, Inc., a Colorado nonprofit corporation ("ULEHI"),
      pursuant to ULEHI's standard form stock subscription
      agreement.

                            
	 
      	 
      
	
                              Minimum
      annual royalty:

                            	
                              Fifty
      thousand dollars ($50,000) payable for each calendar year beginning the
      calendar year after the first Commercial Sale.  The minimum
      annual royalty shall be creditable against earned royalties due on Net
      Sales for the same calendar year. “Commercial Sale” shall mean sale of
      Licensed Product to a purchaser other than non-profit research
      institutions purchasing for research purposes.

                            
	 
      	 
      
	
                              Earned
      royalty:

                            	
                              Three
      percent (3%) of Net Sales by Licensee, Affiliates, or
      sublicensees.

                            
	 
      	 
      
	
                              Milestone
      royalties per indication are as follows:

                               

                            
	 
      	
                              Upon
      the initiation of any phase II clinical trial for any therapeutic
      indication, Licensee shall pay a one-time fee of twenty-five thousand
      dollars ($25,000) within sixty (60) days of initiation of such clinical
      trial.  This milestone does not include clinical (off-label)
      testing.

                            
	 
      	 
      
	 
      	
                              Upon
      the initiation of any phase III clinical trial for any therapeutic
      indication, Licensee shall pay a one-time fee of one hundred thousand
      dollars ($100,000) within sixty (60) days of initiation of such clinical
      trial.  This milestone does not include clinical (off-label)
      testing.

                            
	 
      	 
      
	 
      	
                              Upon
      approval from the United States Food and Drug Administration (FDA), or
      foreign equivalent, of any Licensed Product, Licensee shall pay two
      hundred thousand dollars ($200,000) within sixty (60) days of such
      approval.  This milestone does not include FDA approval for
      clinical (off-label) testing.

                            
	 
      	 
      
	
                              Sublicensing
      royalties:

                            	
                              The
      following percentages of consideration in any form received by Licensee or
      Affiliates in connection with a grant to any third party of a sublicense
      but excluding consideration included within Net Sales (“Sublicense
      Revenue”).  Sublicense Revenue shall include without limitation
      upfront fees, maintenance fees, milestone payments, the unearned portion
      of any minimum royalties, equity, and research and development funding in
      excess of the costs of performing such research and
      development.

                            
	 
      	 
      
	 
      	
                              Thirty
      percent (30%) of all Sublicense Revenue received under sublicenses
      executed during the first year after the Effective
Date.

                            
	 
      	 
      
	 
      	
                              Twenty-Five
      percent (25%) of all Sublicense Revenue received under sublicenses
      executed during the second year after the Effective
  Date.

                            
	 
      	 
      
	 
      	
                              Twenty
      percent (20%) of all Sublicense Revenue received under sublicenses
      executed during the third year after the Effective Date and each year
      thereafter until this Agreement is terminated or
  expires.

                            
	
                               
      

                            	 
      

                    

                  

                

              

            

             

          

          
             

             

            
              
                
                  
                    Exclusive
License – APRO Bio
Pharma                                                                                                                                          

                     CU
1268H and CU1778H

                  

                   

                

                
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                        Expiration
      of Royalties:
 	
                        All
      royalties payable hereunder (minimum royalties, earned royalties and
      sublicensing royalties) with respect to each Licensed Product or Licensed
      Process shall expire and terminate on the respective expiration date of
      the Patent Rights applicable to each such Licensed Product or Licensed
      Process.

                      
	
                         

                      	
                         

                      

              

               

               

            

             

            
              
                
                  
                    Exclusive
License – APRO Bio
Pharma                                                                                                                                          

                     CU
1268H and CU1778H

                  

                   

                

                
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          EXHIBIT
D

           

          FORM
OF ROYALTY REPORT

          
            FORM OF
ROYALTY REPORT

             

            
               

              
                
                  	
                          Licensee:
      ____________________________________________

                        	
                          Case
      No.:  _______________________________________

                        
	
                          Inventor: 
      ____________________________________________

                        	
                          Patent
      No.  _______________________________________

                        
	
                          Period
      Covered: From:  __________________________________

                        	
                          Through: 
      _________________________________________

                        
	
                          Prepared
      By:  _________________________________________

                        	
                          Date:
       ____________________________________________

                        
	
                          Approved
      By:  ________________________________________

                        	
                          Date: 
      ____________________________________________

                        

                

              
                                           

             

            If
license covers several major product lines, please prepare a separate report
for each
line. Then combine all product lines into a summary report.

             

            A
discussion of the progress and results, as well as ongoing plans, with respect
to the Licensed Products
and/or Licensed Processes, see § 6.01, is attached.

             

            
              	 Report
      Type:  	 ____	 Single
      Product Line Report: ______________________	 	 	 
	 	 ____	 Multiproduct
      Summary Report  Page 1
      of   ___  Pages	 	 	 
	 	 ____	 Product Line
      Detail	 
      Line: _______	 Trademark:
      _______	 Pages
      _______
	 	 	 	 	 	 

            

                            

             

            

            
              	
                      Country

                    	
                      Gross

                      Sales

                    	
                      *
      Less:

                      Allowances

                    	
                      Net

                      Sales

                    	
                      Royalty

                      Rate

                    	
                      Period
      Royalty Amount

                    
	
                      This
      Year

                    	
                      Last
      Year

                    
	
                      U.S.A.

                    	 
      	 
      	 
      	 
      	 
      	 
      
	
                      Canada

                    	 
      	 
      	 
      	 
      	 
      	 
      
	
                      Europe

                    	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                      Japan

                    	 
      	 
      	 
      	 
      	 
      	 
      
	
                      Other:

                    	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                      TOTAL:

                    	 
      	 
      	 
      	 
      	 
      	 
      

            

            

             

            Sublicense
Fees this quarter: $ ____ (attach page showing names, addresses, and
telephone numbers;
and amount of fees received; territory; field of use)

             

            Total
Royalty: $ ____

             

            The
following royalty forecast is non-binding and for University internal planning
purposes only:

             

          

          
             

             

            
              
                
                  
                    Exclusive
License – APRO Bio
Pharma                                                                                                                                          

                     CU
1268H and CU1778H

                  

                   

                

                
                  Page
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          EXHIBIT
E

           

          PERFORMANCE
MILESTONES

          

          Milestones
are defined for the first indication

          

          
            

            
              	
                      Pre
      Clinical testing

                    	
                      Completion
      by 12/31/2009

                    
	 
      	 
      
	
                      Phase
      III initiation

                    	
                      Completion
      by 12/31/2012

                    
	 
      	 
      
	
                      FDA
      submission

                    	
                      Completion
      by 12/31/2014

                    
	 
      	 
      
	
                      Market
      launch

                    	
                      Completion
      by 12/31/2016

                    

            

            
 

          

          DILIGENCE
MILESTONES

          

          
            
              	
                      1. 

                    	
                       Licensee
      shall deliver to University:

                    

            

          

           

          
            	
                     
      

                  	
                    (a)

                  	
                    within
      four (4) months days of the Effective Date, a comprehensive business plan
      that describes the Licensee’s technology commercialization strategy,
      including product development plans and timelines, marketing strategies,
      and plans for obtaining necessary financing.  The business plan
      shall include forecasts showing the funds, personnel, and time budgeted
      and planned for development of the Intellectual Property Rights and
      Know-How; and

                  

          

           

          
            	
                     
      

                  	
                    (b)

                  	
                    within
      six (6) months of the Effective Date, evidence that Licensee has
      received  investment funding of at least one million dollars
      ($1,000,000)

                  

          

          

          
            
              	
                      2. 

                    	
                       Licensee
      shall, within six (6) months after the Effective Date, enter into a
      sponsored research agreement for the benefit of Dr. Charles Dinarello as
      Principal Investigator to support work related to development of Licensed
      Products.  The amount of such sponsored research shall be at
      least $300,000 for the first year and at least $250,000 for each of the
      following two years (i.e., a total minimum amount of $800,000 for three
      years).

                    

            

          

          

           

           

          
            
              
                
                  Exclusive
License – APRO Bio
Pharma                                                                                                                                          

                   CU
1268H and CU1778H

                

                 

              

              
                Page
22 of 22

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