Document:

Exhibit 10.1

[LOGO OF OMRF] 

                                   
OKLAHOMA MEDICAL RESEARCH FOUNDATION

                                   
825 Northeast 13th Street • Oklahoma Cily, OK 73104 • 

                                   
405/271-6673 Fax 4051271-3980 • 1-800-522-0211 (in state) • 

www.omff.ouhsc.edu

LICENSE AGREEMENT

    This Agreement is made and entered into as
of the 9th day of May, 2001, by and between the OKLAHOMA MEDICAL RESEARCH
FOUNDATION, an Oklahoma nonprofit corporation ("OMRF"), 825 N.E. 13th Street,
Oklahoma City, Oklahoma 73104; and PROTEOMTECH-YIBAI, INC. ("Licensee"), a
corporation duly incorporated under the laws of Delaware, and maintaining
offices at 800 Research Parkway, Oklahoma City, Oklahoma 73104.

    A. OMRF owns all rights in and to the
Licensed Patents and the Licensed Technology.

    B. Licensee desires to obtain the right to
use the Licensed Technology to make, have made, use, lease, sell, offer for sale
and import the Licensed Products and to practice the Licensed Processes and to
sell and perform the Licensed Services.

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

1. Definitions

As used herein:

    1.1 "Agreement" means this Agreement
including all Exhibits attached to this Agreement together wi~ any written
amendments of any of the foregoing.

1.2 "Effective Date" means the date first set forth above.

	

1.3 "Licensed Patent(s)" means the following United States
Patent and Patent Applications: Provisional Patent Application Serial Number:
60/210,306, Xinli Lin, inventor, entitled "A Universal Method For Refolding
Recombinant Proteins" and all patent applications, their divisionals,
continuations, reissues, extensions, continuation-in-parts, reexaminations, and
non-U.S, counterparts that are entitled to the benefit of the filing date of the
above-identified provisional application, and all patents which issue from any
of the foregoing.

 

1.4 "Licensed Process" means any process which is covered in
whole or in part by an issued, unexpired claim or a pending claim contained in
the Licensed Patents in the country in which the process is practiced.

1.5 "Licensed Products" means any product or part of a product
which:

	

(a) is covered in whole or in part by an issued, unexpired
claim or a pending claim contained in the Licensed Patents in the Country in
which the product or part of a product is made, used, offer for sale, sold, or
imp~orted; or

(b) is manufactured using a Licensed Process.

1.6 "Licensed Servicgs" means services provided by utilizing a
Licensed Process.

	

1.7 "Licensed Technology" means the Licensed Patents and all
designs, technical information, know-how, knowledge, data, discoveries,
inventions, specifications, test results and other information relating to the
Licensed Patents and known to, or discovered by, and assigned to 

OMRF prior to or during the term of this Agieement.

1.8 '~Noncommercial Purposes" means,research and educational
purposes.

    1.9 "Commercial Purposes" means any
purpose other than a Noncommercial Purpose, including sales of products,
services, etc.

    1.10 "Licensee's Auditors" means the
independent certified or chartered accountants regularly employed by Licensee to
audit its accounts and certify its financial statements.

    1.11 "ProteomTech-YiBai Common Stock"
means the common stock having $0.40 par value, of ProteomTech-YiBai, Inc.

2. Grant of License

    2.1 License. Subject to the license
retained by OMRF in Paragraph 2.2 below and the other terms of this A~eement,
OMRF hereby grants to Licensee:

            (i) the
worldwide, exclusive right and license to use the Licensed Technology to make,
have made, use, lease, sell, offer for sale and import the Licensed Products and
to practice the Licensed Processes and to sell and perform Licensed Services
during the term of this Agreement, except that the exclusive rights granted in
this paragraph shall not include any rights related to aspartic proteases;

           
(ii) .the worldwide, nonexclusive right to use aspartic proteases in which OMRF
has proprietary rights on the date of this Agreement solely for Noncommercial
Purposes during the term of this Agreement; provided, however, that Licensee
shall not have the right to

ATLLIB01 1104259.1

publish or otherwise disclose to any third party any information: (a) about any
such proprietary rights, or (b) about, or learned or discovered in the course
of, any such activities; and

           
(iii) a perpetual, royalty-free, non-exclusive license to use for any purpose
any Licensed Technology that is not the subject of a pending patent application
or issued patent at the date upon which this Agreement terminates or is
terminated pursuant to section 7.

    2.2 Retained License. OMRF retains
on behalf of itself the perpetual, royalty-free right and license to practice
the Licensed Teehrl'ology for Noncommercial Purposes.

    2.3 Sublicense Agreements. Licensee
shall have the fight to enter into sublicensing agreements for the fights
ands.licenses granted hereunder. Upon any termination of this Agreement,
sublicensees' rights shall also terminate.

    2.4 Sublibensee Obligations. All
sublicenses granted by Licensee shall provide that the obligations to OMRF of
Licensee under seetio~ 3, 4, 6, 8, and 9 of this Agreement shall be binding upon
sublicensee as if it were a party to this Agreement, and a copy of those
sections of this Agreement shall be attached to all sublicense agreements.

    2.5 Sublicense Copies and Reports. LiCensee shall
provide to OMRF (1) a copy of all sublicense agreements promptly after
execution, and (2) annually, together with the reports required in section 4,
copies of all reports received by Licensee from its sublicensees during the
preceding twelve (12) month period.

    2.6 No Implied License. The license
and right granted in this Agreement shall not be construed to confer any rights
upon Licensee by implication, estoppel or otherwise as to any technology not
specifically identified in this Agreement as "Licensed Patents" or "'Licensed
Technology."

    2.7 Licensed Technology. During the
term of this Agreement, OMRF shall disclose Licensed Technology to Licensee on
an ongoing basis upon the reasonable request of Licensee.

3. Consideration ~.

    3.1 Equity, License Fee and Sublicense
Fees. As consideration for the rights and licenses granted hereunder,
Licensee shall make the following transfers and payments to OMRF during the term
of this Agreement:

           
(a) Licensee will issue to OMRF -- shares of Common Stock of Licensee, which
number of shares Licensee represents is equal to 2 1/2% of the number of shares
of Licensee outstanding on the date of this Agreement;

 

           
(b) Licensee will issue additional equity securities to OMRF each time that
Licensee issues any equity securities to any one so that at all times OMRF owns
2 1/2%.of the value of the Licensee;

           
(c) License shall pay to Licensor One Hundred Thousand United States Dollars
(US$100,000) within ten (10) days after the earlier of (a) September.30, 2001,
or (b) receipt by Licensee of cash investments in Licensee cumulatively totaling
the equivalent of at least Five Million United States Dollars (US$5,000,000);
and

           
(d) within thirty (30) days ~fier receipt of any payment from a sublicense
hereunder, Licensee will pay OMRF five percent (5%) of such payment received
during the first year after the Effective Date and ten percent (10%) of such
payment received by Licensee after the first year after the Effective Date.

4. Reports

    4.1 Licensee will provide to OMRF-within
thirty (30) days of December 31 of each year during the term of this Agreement
copies of all financial reports presented to Licensee's Board of Directors
during the previous twelve (12) month period and a copy of Licensee's Auditors'
annual audit report.

5. Patent Prosecution and Patent Infringement

    5.1 Patent Prosecution. OMRF shall
apply for, seek prompt issuance of, and maintain during the term of this
Agreement the patents and patent applications, as the case may be, included
within the Licensed Patents that are specifically identified by patent number or
application serial number in paragraph 1.4 of this Agreement. The prosecution
and maintenance of all patent applications and patents within the Licensed
Patents shall be the primary responsibility of OMRF; provided, however, that
Licensee shall be afforded reasonable opportunities to advise OMRF and shall
cooperate with OMRF in such prosecution and maintenance. Licensee shall
reimburse OMRF for all out-of-pocket fees, costs and expenses paid or incurred
by OMRF in filing, prosecuting and maintaining the Licen~'d Patents during the
term of this Agreement. Licensee shall deliver such reimbursement to OMRF (or,
if OMRF requests, directly to OMRF's patent counsel) within thirty (30) days
after OMRF (or OMRF's counsel) notifies Licensee from time to time of the amount
of such fees, costs and expenses which have been paid or incurred by OMRF. In
addition, OMRF shall promptly advise Licensee of the grant, lapse, revocation,
surrender, of any threatened invalidation or of its intention to abandon any
patent or application within the Licensed Patents.

    5.2 Notice of Infringement. 
Licensee shall promptly notify OMRF of any alleged infringement of the Licensed
Patents and of any available evidence of such .infringement.

    5.3 Suit By OMRF. OMRF shall have
the right, but shall not be obligated, to commence suit for any infringement of
the Licensed Patents, and Licensee agrees that OMRF may

ATLLIBOI 1104259.1

cause Licensee to join it as a party to any such suit at no expense to Licensee.
The total cost of any such infringement action commenced or defended solely by
OMRF shall be borne by OMRF, and OMRF shall retain any recovery or damages
awarded in such action.

    5.4 Suit By Licensee. Licensee
shall have the right, but shall not be obligated, to commence suit for
infringement of the Licensed Patents only if the infringing activities giving
rise to such suit come within the scope of activities exclusively licensed to
Licensee under paragraph 2.1 (i). The total cost of any such infringement action
commenced by Licensee shall be borne by Licensee, and Licensee shall retain any
recovery or damages awarded in such action.

    5.5 Defense. In the event that a
declaratory judgment action alleging invalidity, unenforceability or
noninfringement of any of the Licensed Patents shall be brought against OMRF or
Licensee, OMRF shal~ have the fight, but not the obligation, to defend such
action. In the event of the institution of any suit by a third party against
OMRF for patent infringement by a Licensed Product made, used, leased, sold,
offered for sale or imported by Licensee, Licensee shall have the obligation to
defend OMRF at Licensee's expense.

    5.6 Cooperation. In any suit or
setilement negotiations either party may commence or defend pursuant to its
fights under this Agreement in order to enforce or defend the Licensed Patents,
the other party shall, at the request and expense of the party initiating or
defending such suit or engaging in settlement negotiations, cooperate in all
respects and, to the extent possible, have its employees testify when requested
and make available relevant records, papers, information, samples, specimens and
the like.

6. Con.fldentiali~.

    6.1 Maintenance of Confidentiality. 
Neither party will, without the express written consent of the other party in
advance, for any reason or at any time either during or for a period of three
years subsequent to the expiration or termination of this Agreement except as
otherwise provided in this section, use (except as to Licensee in the course of
practicing the licenses granted in this Agreement) or disclose (excep~t as to
Licensee as is reasonable in the course of marketing and selling Licensed
Products or Licensed Services, or Obtaining governmental approval to do so, as
contemplated in this Agreement) to any person (including without limitation any
direct.or~officer or employee of Licensee or OMRF who is not under an obligation
of confidentiality substantially similar to the obligation contained herein) the
Licensed Patents or Licensed Technology or any other information relating to the
Licensed Products or the Licensed Services (hereinafter referred to as the
"Proprietary Information"). This obligation of non-use and non-disclosure shall
not extend to Proprietary Information:

(a) which can be demonstrated by the recipient of Proprietary
Information to have been within its legitimate possession prior to the time of
disclosure by OMRF;

(b) which was in the public domain prior to disclosure by the
disclosing party, as evidenced by documents which were generally published prior
to such disclosure;

ATLLIBOI 1104259.1

(c) which, after disclosure by the disclosing party, comes into the public
domain through no fault of the recipient;

(d) which is disclosed to the recipient by a third party having
legitimate possession thereof and the unrestricted right to make such
disclosure; or

	

(e) which is disclosed by the recipient to a third party in
connection with a valid business purpose and the third party executes a
Confidentiality Agreement with Licensee containing obligations of
confidentiality, substantially similar to the obligation contained herein, but
prohibiting further disclosures.

    6.2 Prior Agreements. The
provisions of this Agreement supersede and shall be substituted for any terms of
any" prior confidentiality agreement between Licensee and OMRF which are not
consistent with this Agreement.

7. Term and Termination

    7.1 Duration. Unless sooner terminated
as otherwise provided in this Agreement, the term of this Agreement shall
commence on the Effective Date and shall continue until the date of expiration
of the last to expire of the Licensed Patents.

    7.2 Termination. Subject to
paragraph 7.3, OMRF shall have the right to terminate this Agreement on the
occurrence of any one or more of the following events:

(a) default by Licensee on delivery of stock provided for in
paragraph 3.1;

Co) any assignment by Licensee of substantially all of its
assets for the benefit of creditors subject to U.S. Bankruptcy Code section
365(n), as amended;

(c) placement of Licensee's assets in the hands of a receiver
unless the receivership is dissolved within thirty (30) days thereafter subject
to U.S. Bankruptcy Code section 365(n), as amended;

(d) the bre~h by Licensee of any other term of this Agreement.

    7.3 Exercise. OMRF may exercise its
right of termination by giving Licensee, its trustees or receivers or assigns,
sixty (60) days prior written notice of OMRF's election to terminate. Upon the
expiration of such period, this Agreement shall automatically terminate unless
the other party has previously cured the breach or condition permitting
termination under the preceding paragraph, in which case this Agreement shall
not terminate. Such notice and termination shall not prejudice OMRF's rights to
any ProteomTech-YiBai Common Stock due hereunder prior to the date of
termination and shall not prejudice any cause of action or claim of OMRF accrued
or to accrue on account of any breach or default by Licensee.

7.4 Failure to Enforce. The failure of either party at
any time, or for .any period of time, to enforce any of the provisions of this
Agreement shall not be construed as a waiver of such provisions or the right of
such party thereafter to enforce each and every such provision.

7.5 Termination by Licensee. Licensee may terminate,
this Agreement at any time by givingOMRF ninety (90) days prior written notice
of Licensee's election to terminate.

7.6 Effect. In the event this Agreement is terminated
for any reason whatsoever, Licensee shall not have any right to return of any
payments of any kind theretofore made by it-to OMRF pursuant to this Agreement.
Each part3rshall return, or at the disclosing party's.direction destroy, all
Proprietary Information of the disclosing party, retaining no copies, and
refrain from using or publishing any portion of the other party's Proprietary
Information. Upon termination of this Agreement, Licensee shah cease
manufacturing, processing, producing, using, selling or distributing Licensed
Products and Licensed Services; provided, however, that Licensee may Continue to
sell in the ordinary course of business for a period of ninety (90) days
reasonable quantities of Licensed Products which are fully manufactured and in
Licensee's normal inventory on the date of termination if all monetary
obligations of Licensee to OMRF have been satisfied. The provisions of sections
6, 8, and 9 of this Agreement shall remain in full force and effect
notwithstanding any termination of this Agreement.

8. lndemni~cation and Insurance

    8.1 Indemnification. Licensee shall
defend, indemnify, and hold harmless OMRF, its affiliates and their officers,
directors, trustees and employees and all of their heirs, executors,
administrators and legal representatives ("Indemnitees") from and against any
and all claims, demands, loss, liability, expense or damage (including
investigative costs, court costs and attorneys' fees) Indemnitees may suffer,
pay or incur as a result of claims, demands or actions 

against any of the Indemnitees arising or alleged to arise
by-reason of or in connection with any and all personal injury, economic loss
and property damage caused or alleged to be caused or contributed to. in whole
or in part by the manufacture, use, lease, sale or sublieense of Licensed
Products or Licensed Services by Licensee or its sublicensees, whether asserted
under a tort or contractual theory or any other legal theory.

    8.2 lnsuran~ce. Without limiting
Licensee's indemnity obligations under the preceding paragraph, Licensee
represents that before any Licensed Product or Licensed Service is sold
commercially for human diagnostic or therapeutic use (other than for the purpose
of obtaining regulatory approvals), there will be a liability insurance policy
in force and agrees that Licensee shall maintain throughout the term of this
Agreement and for at least ten (10) years after its termination for any reason a
liability insurance policy that:

           
(a) Insures Indemnitees for all claims, demands and actions mentioned in the
preceding paragraph of this Agreement;

           
(b) Includes a contractual endorsement providing coverage for all liability
which may be incurred by Indemnitees in connection with this Agreement;

ATLLIB01 1104259.1

    7.4 Failure to Enforce. The failure of either party at
any time, or for .any period of time, to enforce any of the provisions of this
Agreement shall not be construed as a waiver of such provisions or the right of
such party thereafter to enforce each and every such provision.

    7.5 Termination by Licensee. 
Licensee may terminate, this Agreement at any time by givingOMRF ninety (90)
days prior written notice of Licensee's election to terminate.

    7.6 Effect. In the event this
Agreement is terminated for any reason whatsoever, Licensee shall not have any
right to return of any payments of any kind theretofore made by it-to OMRF
pursuant to this Agreement. Each part3rshall return, or at the disclosing
party's.direction destroy, all Proprietary Information of the disclosing party,
retaining no copies, and refrain from using or publishing any portion of the
other party's Proprietary Information. Upon termination of this Agreement,
Licensee shah cease manufacturing, processing, producing, using, selling or
distributing Licensed Products and Licensed Services; provided, however, that
Licensee may Continue to sell in the ordinary course of business for a period of
ninety (90) days reasonable quantities of Licensed Products which are fully
manufactured and in Licensee's normal inventory on the date of termination if
all monetary obligations of Licensee to OMRF have been satisfied. The provisions
of sections 6, 8, and 9 of this Agreement shall remain in full force and effect
notwithstanding any termination of this Agreement.

8. lndemni~cation and Insurance

    8.1 Indemnification. Licensee shall
defend, indemnify, and hold harmless OMRF, its affiliates and their officers,
directors, trustees and employees and all of their heirs, executors,
administrators and legal representatives ("Indemnitees") from and against any
and all claims, demands, loss, liability, expense or damage (including
investigative costs, court costs and attorneys' fees) Indemnitees may suffer,
pay or incur as a result of claims, demands or actions against any of the
Indemnitees arising or alleged to arise by-reason of or in connection with any
and all personal injury, economic loss and property damage caused or alleged to
be caused or contributed to. in whole or in part by the manufacture, use, lease,
sale or sublieense of Licensed Products or Licensed Services by Licensee or its
sublicensees, whether asserted under a tort or contractual theory or any other
legal theory.

    8.2 lnsuran~ce. Without limiting
Licensee's indemnity obligations under the preceding paragraph, Licensee
represents that before any Licensed Product or Licensed Service is sold
commercially for human diagnostic or therapeutic use (other than for the purpose
of obtaining regulatory approvals), there will be a liability insurance policy
in force and agrees that Licensee shall maintain throughout the term of this
Agreement and for at least ten (10) years after its termination for any reason a
liability insurance policy that:

           
(a) Insures Indemnitees for all claims, demands and actions mentioned in the
preceding paragraph of this Agreement;

           
(b) Includes a contractual endorsement providing coverage for all liability
which may be incurred by Indemnitees in connection with this Agreement;

           
(c) Requires the insurance carrier to provide OMRF with no less than thirty (30)
days written notice of any change in the terms or coverage of the policy or its
cancellation; and

           
(d) Provides Indemnitees product liability coverage in an amount not less than
$10,000,000 single limit for bodily injury and property damage liability,
subject to a deductible of not more than $1,000,000 occurrence.

    8.3 Notice of Claims. Licensee will
promptly notify OMRF of all claims involving Licensed Products and Licensed
Services and w~ll advise OMRF of the policy amounts that might be needed to
defend and pay any such claims. In the event OMRF believes the sum of such
policy amounts may exceed Licensee's total insurance coverage, OMRF may request
and Licensee shall acquire additional coverage, not to exceed the amounts set
forth in the preceding subparagraph of this Agreement, in order fully to protect
OMRF as set forth above.

    8.4 Insurance After Termination. 
Licensee hereafter shall, during the term of this Agreement and for a period of
ten (10) years after its termination for any reason, provide OMRF copies of
liability policies which comply fully with this Agreement. If Licensee fails at
any time to maintain insurance as required in this Agreement, OMRF may (but
shall be under no obligation to) purchase its own policy providing all or any of
the coverage and recover l~om Licensee the cost thereof, which shall be payable
on demand.

    8.5 Compliance with Securities Laws.
Licensee represents that any transfer of its securities to OMRF hereunder
will be conducted in compliance with all applicable laws, including without
limitation all applicable federal, state or foreign securities laws.

    8.6 lndemni.fication by Licensee. 
Licensee shall indemnify, defend and hold harmless Indemnitees against and with
respect to all third party losses, damages, claims, liabilities or expenses
(including reasonable attorneys' fees and expenses) paid by any of them in final
settlement or final adjudication from which no appeal is or can be taken as a
result of a third party claim as a result of, or arising out of, any violation,
breach or nonfulfillment on the part of Licensee of any representation,
warranty, covenant or agreement made by Licensee in this Agreement. OMRF or
other indemnified party hereunder shall notify in writing Licensee promptly
after it or fl~ey acquire actual knowledge of any action or claim against it or
them hereunder which may give rise to liability of Licensee pursuant to this
section, and the Indemnitees shall reasonably cooperate with Licensee in the
defense or settlement, at 

 

Licensee's expense.

9. Merchantability, Exclusion of Warranties, Limitation of
Liability and Warranties

    9.1 Warranty. Licensee possesses
the expertise and skill in the technical areas in which the Licensed Products
and Licensed Processes are involved necessary to make, and has made, its own
evaluation of the capabilities, safety, utility and commercial application of
the Licensed Technology, Licensed Products and Licensed Processes.

ATLLIB01 1104259.1

ACCORDINGLY, OMRF MAKES NO REPRESENTATION. OR WARRANTY OF ANY KIND WITH RESPECT
TO THE LICENSED TECHNOLOGY, LICENSED PRODUCTS, LICENSED PROCESSES OR LICENSED
SERVICES AND EXPRESSLY DISCLAIMS ANY WARRANTIES OF MERCHANTABILITY OR FITNESS
FOR A PARTICULAR PURPOSE AND ANY OTHER IMPLIED WARRANTIES WITH RESPECT TO THE

CAPABILITIES, SAFETY, UTILITY OR COMMERCIAL APPLICATION OF
LICENSED TECHNOLOGY, LICENSED PRODUCTS, LICENSED PROCESSES AND LICENSED
SERVICES.

Limitation of Liability.

(i) OMRF SHALL NOT BE LIABLE FOR ANY DIRECT, CONSEQUENTIAL OR
OTHER DAMAGES SUFFERED BY LICENSEE OR ANY OTHERS RESULTING FROM THE USE OF THE
LICENSED TECHNOLOGY, LICENSED PRODUCTS, LICENSED PROCESSES OR LICENSED SERVICES.

LICENSEE SHALL NOT BE LIABLE FOR ANY CONSEQUENTIAL, INDIRECT,
SPECIAL OR PUNITIVE DAMAGES OR LOSSES (INCLUDING, WITHOUT LIMITATION, LOSS OF
PROFITS OR LOSS OF VALUE OF EQUITY) SUFFERED BY OMRF OR ANY OTHERS RESULTNG FROM
OR IN CONNECTION WITH THE LICENSED TECHNOLOGY, LICENSED PRODUCTS, LICENSED
PROCESSES, LICENSED SERVICES, PROTEOMTECH-YIBAI COMMON STOCK OR THIS AGREEMENT.

    9.3 Representations and Warranties of
Licensee. Licensee hereby makes the following representations and warranties
to, OMRF, which representations and warranties, together with all other
representations and warranties of Licensee in this Agreement, are true and
correct on the Effective Date:

(a) Licensee is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware and has
all requisite corporate power and authority to enter into this Agreement and
perform its obligations hereunder.

(b) All action to authorize the execution and delivery of
this Agreement and the consummation of the transactions contemplated herein have
been duly taken, and this Agreement constitutes the valid and binding obligation
of Licensee enforceable in accordance with its terms.

(c) There are no claims (relating to patent infringement or
any other matters), actions, suits, proceedings, arbitrations or investigations
pending or, to the best of Licensee's

knowledge, threatened, against Licensee which if adversely determined would
adversely affect the Licensed Patents or Licensed Technology (or the
patentability thereof) or Licensee's ability to enter into or carry out this
Agreement or use or license Licensed Patents or Licensed Technology.

(d) the shares of Common Stock issued to OMRF under this
Agreement on the date hereof and the securities issued in the future by Licensee
to OMRF from time to time shall be validly issued, fully paid and nonassessable,
free and clear of any claims or restrictions of any kind except under federal
and state securities laws.

    9.4 Representations and Warranties of
OMRF. OMRF hereby warrants that it owns the entire right~ title .and
interest in the Licensed Patents and Licensed Technology and that it has full
power and authority to execute, deliver and perform this Agreement and the
obligations hereunder. OMRF further warrants and represents that there is
nothing in any third party agreement OMRF has entered into as of the Effective
Date that will limit OMRF's ability to perform the obligations undertaken by
OMRF hereunder, and that it will not enter into any agreement after the
Effective Date that would incur any such limitations.

10. Miscellaneous and General

	

    10.1 Export Controls. Licensee
acknowledges that OMRF is subject to United States laws and regulations
controlling the export of technical data, computer software, laboratory
prototypes and other commodities and that its obligations hereunder are
contingent on 

compliance with all applicable United States export and other
laws and regulations. The 

transfer of certain technical data and commodities may
require a license from the cognizant agency of the United States Government
and/or written assurances by Licensee that Licensee shall not export data or
commodities to certain foreign countries without prior approval of such agency.
OMRF neither represents that a license shall not be required nor that, if
required, it shall be issued.

    10.2 Legal Compliance. Licensee
agrees that it will comply with all applicable laws and regulations rela~ng to
its manufacture, processing, production, use, advertisement, marketing, sale and
di~tribution of Licensed Products and Licensed Services.

    10.3 Required Consents. Licensee
shall obtain any and all licenses, permits, approvals or authorizations
("Required Consents") required by any governmental entity or agency having
jurisdiction over the transactions contemplated by this Agreement. OMRF shall
cooperate with, and provide reasonable assistance to, Licensee in obtaining the
Required Consents; provided, however, that Licensee shall reimburse OMRF for all
of OMRF's reasonable out-of-pocket expenses incurred in providing such
assistance.

    10.4 Independent Contractor. 
Licensee's relationship to OMRF hereunder shall be that of a licensee only.
Licensee shall not be the agent of OMRF and shall have no authority to act for
or on behalf of OMRF in any matter. Persons retained by Licensee as employees or
agents shall not by reason thereof be deemed to be employees or agents of OMRF.

    10.5 Patent Marking. Licensee
agrees to mark the Licensed Products sold in the United States and, to the
extent practical, identify all Licensed Services with all applicable United
States patent numbers. All Licensed Products shipped to or sold in other
countries shall be .to the extent practical marked in such a manner as to
conform with the patent laws and practice of the country of manufacture or sale.
"

    10.6 Use of Names. Except as
required by law, none of the names of OMRF or any of its officers, trustees,
directors ~or employees may be used by Licensee in any manner for announcing,
advertising, promoting or marketing of Licensed Products, Licensed Services,
Licensed Processes or securities of Licensee unless the written permission of
OMRF, or the individual, as the c~se may be, is obtained in adv.ance, except
that Licensee may state that it is licensed by OMRF under one or more of the
patents and/or applications comprising the Licensed Patents. Licensee may,
however, use the name Of any employee of OMR-F who is a consultant or member of
an advisory board of Licensee, with their permission, and provided, also, that
their affiliation with OMRF is identified.

    10.7 Interpretation. The parties
are equally responsible for the preparation of this Agreement, and in any
judicial proceeding or arbitration the terms hereof shall not be more strictly
construed against one party than the other.

    10.8 Place of Execution. This Agreement and any
subsequent modifications or amendments hereto shall be deemed to have been
executed in the State of Oklahoma, U.S.A. This Agreement shall not become
effective or binding upon OMRF until signed on its behalf by its President.

    10.9 Governing Law. This Agreement
and all amendments, modifications, alterations, or supplements hereto, and the
rights of the parties hereunder, shall be construed under and governed by the
laws of the State of Oklahoma and the United States of America.

    10.10 Arbitr~'on. Subject to the
right of either party to seek an injunction or other temporary relief, any
controversy or claim arising out of or relating to this Agreement of the breach
thereof will be settled by arbitration in Oklahoma City, Oklahoma, before and in
accordance with the Commercial Arbitration Rules of the American Arbitration
Association. The award rendered in that arbitration will be binding on the
parties hereto, and judgment upon the award can be entered by any court having
jurisdiction thereof..Without detracting from the generality of the foregoing,
the following specific provisions also will apply:

(a) The proceedings will be held by a panel of three
arbitrators, each party having the right to select one arbitrator, with the
third to be selected in accordance with the Rules of the American Arbitration
Association;

(b) The parties, by mutual agreement, can. also provide that all or part of the
arbitration proceedings be held outside of Oklahoma City, Oklahoma; in this
event, the parties will equally bear any specific expenses resulting from that
decision;

(c) Before rendering their final decisions, the arbitrators
will first act as friendly, disinterested parties for the purpose of helping the
parties reach compromise settlements on the points in dispute; and

(d) The costs of the arbitration will"be in the discretion of
the arbitrators, provided, however, that no party is obliged to pay more than
its own costs, the costs of the arbitrator it has nominated, and the cost of the
third arbitrator.

    10.11 Notices. All notices,
statements and reports required or contemplated herein by one party to the other
shall be in writing and shall be deemed to have been given upon delivery in
person or upon the expiration of five (5) da3/s after deposit in a lawful mail
depository in the country of residence of the party giving the notice,
registered or certified airmail postage prepaid, and addressed as follows:

If to OMRF:

Attention: President

Oklahoma Medical Research Foundation

825 N. E. 13th Street

Oklahoma City, Oklahoma 73104

Facsimile: (405) 271-3980

With a copy (which shall not constitute notice) to:

John S. Pratt, Esq.

Kilpatrick Stockton LLP

Suite 2800

1100 Peachtree Street

Atlanta, GA 30309

Facsimile: (404) 815-6555

If to Licensee:

Attention: President

ProteomTech-YiBai, Inc.

800 Research Parkway

Oklahoma City, OK 73104

Facsimile: (405) 271-7180

    Either party hereto may change the address
to which notices to such party .are to be sent by giving notice to the other
party at the address and in the manner provided above. Any notice herein
required or permitted to be given may be given, in addition to the manner set
forth above, by telex, facsimile or cable, provided that the party giving such
notice obtains confirmation of transmission receipt. Notice made in this manner
shall be deemed to have been given when such notice has been transmitted.

    10.12 Assignments and Inurement. 
Neither party shall sell, transfer, assign, or delegate in whole or in part this
Agreement, or any rights, duties, obligations or liabilities under this
Agreement (collectively "assign"), by operation of law or otherwise without the
prior written consent of the other party; provided, however, either party shall
have the right to assign all of its rights, duties, obligations and liabilities
under this Agreement to any affiliate or other related entity, controlling,
cgntrolled by or under common control with such party or in connection with any
sale, merger, consolidation, recapitalization or .reorganization involving 

in each case the sale of all or substantially all of the
capital stock of the party or the assets of such party to which this Agreement
relates. This Agreement shall be binding upon and inure to the benefit of the •
successors and permitted assigns of the parties hereto.

    10.13 Entire Agreement. This Agreement constitutes the
entire agreement between OMRF and Licensee with respect to the subject matter
hereof and shall not be modified, amended or terminated except as herein
provided or except by another agreement in writing executed by the parties
hereto.

    10.14 Headings. The section and paragraph headings are
for convenience only and are not a part of this Agreement.

    10.15 Severability. All rights and restrictions
contained herein may be exercised and shall be applicable and binding only to
the extent that they do not violate any applicable laws and are intended to be
limited to the extent necessary so that they will not render this Agreement
illegal, invalid or unenforceable. If any provision or portion of any provision
of this Agreement not essential to the commercial purpose of this Agreement
shall be held to be illegal, invalid or unenforceable by a court of competent
jurisdiction, it is the intention of the parties that the remaining provisions'
or portions thereof shall constitute their agreement with respect to the subject
matter hereof, and all such remaining provisions or portions thereof shall
remain in full force and effect. To the extent legally permissible, any illegal,
invalid or unenforceable provision of this Agreement shall be replaced by a
legal, valid and enforceable provision which will implement the commercial
purpose of the illegal, invalid or unenforceable provision. In the event that
any provision essential to the commercial purpose of this Agreement is held to
be illegal, invalid or unenforceable and cannot be replaced by a legal, valid
and enforceable provision which will implement the commercial purpose of this
Agreement, either party shall have the right to terminate this Agreement
effective on notice.

    IN WITNESS WHEREOF, the parties have caused this Agreement to
be executed by their duly authorized representatives as of the Effective Date.

 

OKLAHOMA MEDICAL RESEARCH FOUNDATION

By: /s/ J. Donald Capra, M.D.

J. Donald Capra, M.D.,
President

 

 

PROTEOMTECH-YIBAI, INC.

By: /s/ Chao Gao, Ph.D. 

Chao Gao, Ph.D., PresidentExhibit 10.2

﻿EXCLUSIVE LICENSE AGREEMENT

BETWEEN

GEORGETOWN UNIVERSITY

AND

PROTEOMTECH, INC.

Effective as of 4th day of March 2002 ("Effective
Date"), GEORGETOWN UNNERSITY, a not-for-profit corporation of the District of
Columbia, having a principal address at 37th & 0 Streets, N.W., Washington, D C.
20057 ("Georgetown" or "LICENSOR"), and ProteomTech, Inc., a corporation, having
a principal place of business at 800 Research Parkway, Oklahoma City, OK 73104
("LICENSEE"), agree as follows: 

﻿1. BACKGROUND

﻿1.1 LICENSOR is the owner by assignment or obligation of
assignment to certain Technology directed generally to "Novel Isoforms of
Vascular Endothelial Cell Growth Inhibitor" ("VEGI")" (as further defined
herein). 

﻿1.2 LICENSOR wishes to have the Technology developed and
marketed at the earliest possible time in order that products resulting
therefrom may be available for public use and benefit. 

﻿1.3 LICENSEE wishes to acquire a license under said
Technology for the purpose of undertaking development, to manufacture, use and
sell Licensed Product(s) in the Licensed Field of Use. 

﻿2. DEFINITIONS

﻿2.1 "Exclusive" means LICENSOR has not granted and
shall not grant further licenses in the Licensed Field of Use, so long as this
Agreement is in effect. 

﻿2.2 "First Commercial Sale" means the first sale of a
Licensed Product at an arms length transaction with a third party unaffiliated
with any party to this Agreement. 

﻿2.3 "Georgetown Information" means respectively (i)
technical data, materials, formulas, pre-clinical data and clinical data, and
know-how pertaining to the manufacture or use of "Novel Isoforms o/Vascular
Endothelial Cell Growth Inhibitor" known to Georgetown through Dr. Luyuan Li on
the date hereof which constitutes proprietary information of Georgetown. 

﻿2.4 "Georgetown Patents" means any U.S. or foreign
patents or patent applications containing one or more claims to a Georgetown
Invention, or any division, continuation, continuation-in-part, re-issue or
re-examination of any of the foregoing. 

﻿

2.5 "Licensed Application(s)" means any U.S. or
foreign patent applications including, without limitation, any and all
divisionals, continuations, reissues, reexaminations thereof claiming
Technology. 

2.6 "Licensed Field of Use" means the use of VEGI
isoforms as therapeutic agents to treat cancers and other angiogenesis-dependent
diseases. 

2.7 "Licensed Patents" means any U.S. or foreign
patents issued or granted from the Licensed Applications claiming Technology.

2.8 "Licensed Product(s)" means any compound, product
or part thereof, device, method or service, the manufacture, use, or sale of
which: 

(a) is covered by a valid claim of an issued,
		unexpired Licensed Patent(s). A claim of an issued, unexpired Licensed
		Patent(s) shall be presumed to be valid unless and until it has been
		held to be invalid by a final judgment of a court of competent
		jurisdiction from which no appeal can be or is taken; 

		

	

                    (b) is covered by any claim being prosecuted in Licensed
Application( s). 

2.9 "LICENSEE" is understood to include ProteomTech,
Inc. and any and all of its Affiliates. An Affiliate of LICENSEE shall mean any
corporation or other business entity controlled by, controlling, or under common
control with LICENSEE during the term of this Agreement. For this purpose,
"control" means direct or indirect beneficial ownership: 

                    (a) of at least fifty percent (50%) of the voting stock; or

                    (b) of at least fifty percent (50%) interest in the income of
such corporation or other business. 

2.10 "Net Sales" means the gross revenue generated by
sale of the Licensed Product(s) or use of the Licensed Process(es) in the form
in which it is sold or used, whether or not assembled (and without excluding
therefrom any components or subassemblies thereof, whatever their origin and
whether or not patent impacted) less the following items: 

                    (a) Import, export, excise, value added and sales taxes, plus
custom duties; 

(b) Costs of insurance, packing and transportation
		from the place of manufacture to the customer's premises or point of
		installation; 

		

		(c) Normal and customary quantity and cash discounts;
		and 

		

		(d) Credit for returns, allowances, or trades
		actually given. 

		
		

﻿

2.11 "Patent Rights" refers to LICENSOR's rights
arising from U.S. Provisional Patent Application Serial No. 60/331,190, filed
November 11, 2001, titled "Novel Isoforms of Vascular Endothelial Cell Growth
Inhibitor," naming as inventors Luyuan LI, Hongguan Pan, Wei-qun Huang, Jingy
Yu, and Song Tian, including any foreign patent applications corresponding
thereto, any United States divisions, continuations, reissues, or reexaminations
thereof, and any United States or foreign patent(s) issued or granted therefrom
and any United States or foreign patents or patent applications claiming
Technology. Such patent application(s) are the "Licensed Application(s)" and any
resulting issued patents are the "Licensed Patent(s)." 

2.12 "Regulatory Approval" means any approval or
clearance by any governmental agency or agencies having authority to regulate
the use or sale of any Licensed Product(s) in the pertinent jurisdiction or
territory. 

2.13 "Technology" means any technical data, know-how,
material, research results and other information provided to LICENSEE by
LICENSOR or its employees or contractors relating to "Novel Isoforms of Vascular
Endothelial Cell Growth Inhibitor" including, without limitation, any
biochemical, preclinical, clinical, manufacturing, formulation, and scientific
research information of a confidential nature whether patentable or
unpatentable. 

3. GRANT

3.1 LICENSOR hereby grants and LICENSEE hereby accepts a
worldwide license in the Licensed Field of Use to make, have made, use, sell,
and have sold Licensed Product(s) and to use Technology. 

3.2 Said license, which includes the right to sublicense,
shall be Exclusive in the Licensed Field of Use. The terms and conditions of any
sublicense shall be consistent with the terms and conditions of this Agreement
and LICENSOR shall have the right to approve such sublicense, which approval
shall not be unreasonably withheld. The approval of LICENSOR shall also be
required in connection with any sublicense to any Affiliate of LICENSEE, which
approval shall not be unreasonably withheld. 

4. ROYALTIES, PAYMENTS AND MILESTONES

4.1 Within thirty (30) days after the effective date of this
Agreement, LICENSEE agrees to pay LICENSOR a one-time, non-refundable,
non-creditable upfront payment fee of Twenty Thousand Dollars ($20,000), payable
in United States dollars. Thereafter and during the term of this Agreement,
LICENSEE agrees to assume responsibility for future patent prosecution and
maintenance costs as provided in the following Paragraph 7.1. 

4.2 LICENSEE shall pay to LICENSOR benchmark royalties
relating to each Licensed Product as follows: 

﻿(1) $50,000 within thirty (30) days after the IND approval;

(2) $100,000 within thirty (30) days after approval of Phase
II tests 

(3) $250,000 within thirty (30) days after approval of Phase
ill tests; and 

(4) $500,000 within thirty (30) days after the approval of
the NDA. 

4.3 In addition, LICENSEE shall pay LICENSOR earned royalties
of two and a half percent (2.5%) on Net Sales of any Licensed Product sold
directly by LICENSEE in the country in which the Licensed Product is made, used
or sold. If the Licensed Product is sublicensed, LICENSEE shall pay to LICENSOR
fifteen percent (15%) of the Net Sales Licensee generates from a sublicensee;
however, in no event shall this return be less than two percent (2%) of Net
Sales of any Licensed Product sold by sublicensee. If LICENSEE receives any lump
sum payment from the sublicensee for the Licensed Product, LICENSEE shall pay to
LICENSOR fifteen percent (15%) of such payment. 

4.4 The royalty on sales in currencies other than U.S.
Dollars shall be calculated using the appropriate foreign exchange rate for such
currency quoted by the Wall Street Journal, on the close of business on the last
banking day of each calendar quarter. Royalty payments to LICENSOR shall be in
U.S. Dollars. 

4.5 In the event that the Patent Rights relating to a
particular Licensed Product are finally rejected as being unpatentable by the
U.S. Patent and Trademark Office or as being invalid by a court of competent
jurisdiction, or upon the expiration of the last patent covering such Licensed
Product, LICENSEE shall be entitled to a fifty percent (50%) reduction in all
royalties related to such Licensed Product accruing pursuant to this Article
4.3, commencing on the effective date of such determination, judgment or
expiration. 

5. REPORTS. PAYMENTS AND ACCOUNTING

5.1 Quarterly Royalty Payment and Report. LICENSEE
shall make written reports and royalty payments to LICENSOR within ninety (90)
days after the end of each calendar quarter following the First Commercial Sale.
This report shall state the number, description, and aggregate Net Sales of
Licensed Product(s) during such completed calendar quarter, and resulting
calculation of earned royalty payment due LICENSOR for such completed calendar
quarter. Concurrent with the making of each such report, LICENSEE shall include
payment due LICENSOR of royalties for the calendar quarter covered by such
report. 

        All Payments pursuant to the License shall be made to
Georgetown University and sent to the following address: 

﻿

PAYMENTS:     William J. Hartman 

                            Director, Research & Technology Development
				Services 

                            Suite 177, Building D

                            4000 Reservoir Road, N.W.

                            Washington, D.C. 20007 

			
		
	

5.2 Annual Progress Reports. LICENSEE shall provide
annual written progress reports within sixty (60) days after the anniversary
date of the effective date of this agreement. The reports shall include
sufficient detail to allow LICENSOR to determine progress on research and
development, manufacturing, sublicensing, marketing and sales during the
previous twelve (12) months as well as plans for the coming year. 

5.3 Accounting. LICENSEE agrees to keep records for a
period of two (2) years showing the manufacturing, sales, use, and other
disposition of products sold or otherwise disposed of under the license herein
granted in sufficient detail to enable the royalties payable hereunder by
LICENSEE to be determined, and further agrees to permit its books and records to
be examined from time to time by a certified public accountant of a nationally
recognized accounting firm, who is selected and paid for by LICENSOR, but no
more than once per calendar year, to the extent necessary to verify reports
provided for in Paragraph 5.1. Such examination is to be made by LICENSOR, at
its expense and all such information obtained shall be treated as confidential
information pursuant to Article 9. If LICENSOR determines that LICENSEE has, for
any reason, failed to pay adequate royalties, LICENSEE shall immediately upon
notice thereof pay to LICENSOR any owed royalties plus interest at the rate of
eleven percent (11 %) per annum, compounded daily, calculated from the date upon
which such royalties should have been paid to the date of actual payment of
LICENSOR. 

6. WARRANTY

6.1 LICENSOR represents and warrants that it has the right to
grant LICENSEE the license granted herein and that it has not granted the Patent
Rights or any rights in any Licensed Product(s) to any third party in the
Licensed Field of Use, except for United States government rights which may have
been required by law. LICENSOR also represents and warrants that, to the best of
LICENSOR's knowledge, information and belief, the Invention( s) are novel. 

7. PROSECUTION OF LICENSED PATENTS

7.1 LICENSEE agrees to accept liaison and financial
responsibilities, as hereinafter set forth, for the prosecution, by a patent
lawyer in independent practice, who shall be nominated by LICENSEE and approved
by LICENSOR, of the Licensed Applications. Said financial responsibilities shall
not only include the costs of prosecution but also the payment of maintenance
fees, where required, to maintain said patent applications and patents, if
issued, in force and effect for as long as possible. It is further agreed that

the ﻿patent lawyer selected by LICENSEE and approved by LICENSOR shall be
required, if so desired by LICENSOR, to keep a patent lawyer selected by
LICENSOR informed of all steps in the prosecution and maintenance of said Patent
Rights. Written approval will be required from LICENSOR to the patent lawyer
selected by LICENSEE for actions concerning this patent. 

7.2 Within two (2) weeks of notification to LICENSOR by
LICENSEE of the identity of the patent lawyer, LICENSOR will request that its
counsel furnish to the patent lawyer nominated in accordance with Paragraph 7.1
above: 

(a) Complete file histories of all of the patent applications
constituting said Licensed Applications; and 

(b) An executed power of attorney or powers of attorney
appointing such patent lawyer as attorney of record in connection with all of
said Licensed Applications. 

7.3 LICENSOR shall have the right at any time, by notice in
writing and sent to LICENSEE by registered mail, to assume and continue at its
own expense, direction of the prosecution of any of said Licensed Applications.
Upon receipt by LICENSEE of any such notice from LICENSOR, LICENSEE and the
patent lawyer nominated in accordance herewith shall provide in two weeks from
the time of notice an executed power of attorney and all the file histories of
the patent applications constituting said Licensed Applications. Upon receipt of
this documentation, LICENSEE and the patent attorney nominated by LICENSEE shall
be relieved of all future responsibilities to prosecute the Licensed
Applications to which the notice is directed. In which event, LICENSOR agrees to
use its good faith efforts to apply for, seek prompt issuance of, and maintain
during the term of this Agreement, Patent Rights to the extent necessary to
cover both broadly and specifically Licensed Products. LICENSEE shall have
reasonable opportunity to advise LICENSOR and shall cooperate with LICENSOR in
such filing, prosecution and maintenance. LICENSOR shall use its good faith
efforts to furnish LICENSEE with copies of any patent application sufficiently
in advance of its anticipated filing date to give LICENSEE a reasonable
opportunity to review and comment thereon. 

7.4 LICENSOR also agrees to furnish LICENSEE with copies of
all substantive communications to and from U. S. and foreign patent offices
regarding Licensed Applications and in good faith shall consider the reasonable
comments of LICENSEE regarding all communications and filings to and from the
respective patent office. If, for any reason, prosecution or maintenance of a
particular patent application or patent in a particular country is to be
abandoned by LICENSEE, LICENSOR will be notified in sufficient time to assume
prosecution. LICENSEE shall bear all cost to maintain the patent prosecution
until such time that LICENSOR can assume patent prosecution. 

8. INFRINGEMENT

8.1 LICENSOR and LICENSEE shall promptly give notice to the
other in writing of any alleged infringement of Patent Rights. The parties shall
thereupon confer as to what steps are to be taken to stop or prevent such
infringement. 

8.2 LICENSEE shall have the first right to defend Patent
Rights against any infringer at LICENSEE's cost and expense including by
bringing any legal action for infringement or defending any counterclaim of
invalidity or action of a third party for declaratory judgment of
non-infringement, which LICENSEE, in its sole discretion, decides is reasonable
and necessary for it to undertake. LICENSEE shall bring or defend or may settle
any such actions solely at its own expense and through counsel of its selection
and will be entitled to retain any settlement or damage award received except as
provided for in Paragraph 8.5; provided, however, that LICENSOR shall be
entitled in each instance to participate through counsel of its own selection
and its own expense. LICENSEE and LICENSOR acknowledge and agree that, although
LICENSOR shall have the right at LICENSOR's option to prosecute infringers as
provided in the following Paragraph 8.3, LICENSOR is not desirous of being a
party to any such infringement suit. LICENSEE shall not join LICENSOR as a
party-plaintiff in any suit which LICENSEE may institute unless necessary for
the maintenance of said suit, and then only with the prior knowledge and written
consent of LICENSOR. In such event, LICENSOR shall not be chargeable for any
costs or expenses. LICENSOR shall execute all documents necessary for the
prosecution of any infringement suit brought by LICENSEE and provide other such
support as LICENSEE may require including having its employees testify when
requested and make available relevant records, papers, information, samples,
specimens and the like, all however at the expense, with respect to travel and
the like, of LICENSEE. 

8.3 LICENSOR shall have the right to defend the Patent Rights
against infringement in the event that LICENSEE declines to exercise its rights
to defend Patent Rights under Paragraph 8.2 and shall have sole discretion to
file and prosecute, defend or settle such infringement and declaratory judgment
action at its own expense through counsel of its own selection and will be
entitled to retain any settlement or damage award received; provided, however,
that LICENSEE shall be entitled in each instance to participate through counsel
of its own selection and at its own expense. LICENSEE shall have no
responsibility or financial obligation with respect to any such infringement
action except to provide reasonable assistance to LICENSOR as requested and
LICENSOR shall reimburse LICENSEE for LICENSEE's out-of-pocket expenses in
connection with any such assistance. LICENSEE shall execute all documents
necessary for the prosecution of any infringement suit brought by LICENSOR and
provide other such support as LICENSOR may require, including having its
employees testify when requested and make available relevant records, papers,
information, samples, specimens and the like, all however at the expense, with
respect to travel and the like, of LICENSOR. 

﻿

8.4 In the event that LICENSOR decides to institute suit,
LICENSOR shall be entitled to retain the entire amount of any recovery or
settlement. Furthermore, at its option, LICENSOR may join LICENSEE as plaintiff.

8.5 LICENSOR shall be entitled to the percentage of any
recovery obtained in any infringement suit brought by LICENSEE equal to the
amount to which LICENSOR would be entitled under the sublicensee royalty
provision of this Agreement had said recovery been paid to LICENSEE as
sublicense royalties by the defendant in said infringement suit. LICENSEE may
deduct its reasonable costs and attorneys' fees incurred in prosecuting such
suit, to the extent such costs and fees are not otherwise recovered, prior to
calculating the share owing to LICENSOR pursuant to this provision. 

8.6 Should either LICENSOR or LICENSEE commence a suit under
the provisions of Paragraphs 8.2 or 8.3 and thereafter elect to abandon the
same, it shall give timely notice to the other party which may, if it so
desires, continue prosecution of such suit; provided, however, that the sharing
of expenses and any recovery in such suit shall be agreed upon between LICENSOR
and LICENSEE. 

8.7 LICENSEE during the period of this Agreement shall have
the sole right in accordance with the terms and conditions herein to sublicense
any alleged infringer, and LICENSOR shall be entitled to royalties therefrom as
specified in Paragraph 4.3. 

9. PUBLICITY AND CONFIDENTIALITY

9.1 Neither party shall use the name of the other in any form
of advertising or promotion without the prior written approval of the other. The
parties may, however, acknowledge, subject to the obligations of confidentiality
set forth in 9.3, Sponsor's support for the nature of the investigations being
pursued under this Agreement. In any such statement, the relationship of the
parties shall be accurately and appropriately described. 

9.2 Confidential Items. Confidential Items shall mean any
proprietary information or materials belonging to the disclosing party clearly
marked CONFIDENTIAL (whether or not patentable) including, but not limited to,
patent filings, formulations, techniques, methodology, equipment, data, reports,
know-how, sources of supply, patent positioning, consultants and business plans,
including without limitation, any negative developments, which are communicated
to, learned by, or otherwise acquired by the party receiving such information or
materials during or in the course of this Agreement, further including without
limitation, information concerning the existence, scope or activities of any
research and development project of the disclosing party. 

9.3 Each party shall hold in confidence for a period of five
(5) years, and shall not disclose to any person outside its respective
organization, any Confidential Items disclosed to it by the other party to this
Agreement. The party receiving such Confidential Items shall use such
Confidential Items only for the limited purpose for which it was disclosed and
shall not exploit such Confidential Items for its own benefit or the benefit of
another without the prior written consent of the disclosing party. Each party
shall 

disclose Confidential Items of the other party under this Agreement only
to persons within its organization and to consultants who have a need to know
such Confidential Items in the course of the performance of their duties and who
are bound to protect the confidentiality of such Confidential Items. 

9.4 The confidentiality and non-use obligations of the
receiving party shall not apply to any Confidential Item(s) which is received by
one party from the other party and which: 

        (i) is disclosed in a printed publication available to the
public, is described in an issued patent anywhere in the world, is otherwise in
the public domain at the time of disclosure, or becomes publicly known through
no breach of this Agreement by the receiving party; 

        (ii) becomes known to the receiving party through disclosure
by sources other than the disclosing party having the right to disclose such
Confidential Items; 

        (iii) is disclosed pursuant to the requirements of a
governmental agency or any law requiring disclosure thereof, provided that the
disclosing party is provided with prior written notice of any such disclosure;

        (iv) is generally disclosed to third parties by the
disclosing party without similar restrictions on such third parties; 

        (v) is approved for release by written authorization of an
officer of the disclosing party; or 

        (vi) is already known by the receiving party as evidenced by
its prior written records; 

provided, however, that a breach of the foregoing obligations
shall not be absolved by the subsequent occurrence of any of the above
exceptions. 

10. PUBLICATION

10.1 Subject to all other terms of this Agreement, including
but not limited to those concerning confidentiality, LICENSOR's investigators
have the right to publish or otherwise publicly disclose information. However,
LICENSOR shall provide LICENSEE with copies of articles reporting on research
involving the Technology prior to their submission for publication in order to
provide LICENSEE an opportunity to determine if patentable inventions or
Confidential Items are disclosed. LICENSEE shall inform LICENSOR and LICENSOR'S
author(s) within thirty (30) days after receipt of the material whether in its
judgment the material contains information on which patent ﻿applications mayor
should be filed and the identification of any LICENSEE Confidential Items to be
removed therefrom. Submission then may be delayed up to an additional sixty (60)
days to allow filing of appropriate patent applications. 

11. DUE DILIGENCE

11.1 LICENSEE shall use good faith efforts to develop, obtain
clinical approval for, manufacture, market and promote Licensed Products. 

11.2 LICENSOR shall have the right to terminate or render
this license or parts thereof nonexclusive at any time after two (2) years from
the date of the license if, in LICENSOR's reasonable judgment, LICENSEE: 

        (i) has not put the licensed subject matter into commercial
use in the country or countries where licensed, directly or through a
sublicense, and is not keeping the licensed subject matter reasonably available
to the public, or 

        (ii) is not demonstrably engaged in research, development,
manufacturing, marketing or licensing program, as appropriate, directed toward
this end, or 

        (iii) has failed to sublicense cancer related uses. 

In making this determination, LICENSEE shall take into
account the normal course of such programs conducted with sound and reasonable
business practices and judgment and shall take into account the reports provided
hereunder by LICENSEE. 

12. TERM AND TERMINATION

12.1 Term of License. 

        (a) The Term of this Agreement shall be for a period
beginning with the Effective Date and extending until the later often (10) years
after the First Commercial Sale or the last to expire valid claim of Patent
Rights covering a Licensed Product, unless sooner terminated as herein provided.
Thereafter, LICENSEE'S license granted in Paragraph 3.1 shall be a fully paid
up, non-exclusive license. Surviving any termination are: (a) LICENSEE's
obligation to pay royalties accrued or accruable; and (b) Any cause of action or
claim of LICENSEE or LICENSOR, accrued or to accrue, because of any breach or
default by the other party. 

        (b) Upon any material breach or default under this Agreement
by LICENSEE, LICENSOR may give written notice thereof to LICENSEE, and
LICENSEE, shall have thirty (30) days thereafter to cure such breach or default.
If such breach or default is not so cured, LICENSOR, may then in its sole
discretion and option (a) terminate this Agreement and the licenses granted
herein or (b) seek such other relief as may be provided by law in such
circumstances by giving written notice thereof to LICENSEE. 

﻿        (c) LICENSEE shall have the right to terminate this
Agreement at any time upon ninety (90) days written notice to LICENSOR and
payment of all amounts due LICENSOR through the effective date of termination.

 

        (d) Upon termination of this Agreement under any provision,
all further obligations of the parties under this Agreement shall terminate
without further liability of any party to another; provided, however, that the
publicity and confidentiality obligations of the parties contained in Article 9
hereof, shall survive any such termination for the periods set forth therein.
Termination shall not relieve any party of any obligation occurring prior to
such termination, of any liability for a breach of, or for any misrepresentation
under this Agreement or be deemed to constitute a waiver of any available remedy
(including, but not limited to specific performance, if available) for any such
breach or misrepresentation, provided, however, that neither party shall be
liable for consequential, punitive or special damages including without
limitation, lost profits. LICENSEE and any sublicensee thereof may, however,
after the effective date of such termination, sell all Licensed Products, and
complete Licensed Products in the process of manufacture and fulfill all orders
for Licensed Products at the time of such termination and sell the same,
provided that LICENSEE shall pay to LICENSOR the royalties thereon as required
by Article 4 of this Agreement and shall submit the reports required by Article
5 hereof on the sales of such Licensed Products. 

        (e) In the event of termination of this Agreement for any
reason, any and all rights granted LICENSEE hereunder, including any rights
granted by LICENSEE to any sublicensee, shall cease and terminate, and all such
rights shall revert to LICENSOR. LICENSEE shall diligently thereafter return to
LICENSOR, or to LICENSOR's designated attorneys, any files or other documents in
its possession or in the possession of its attorneys, agents or sublicensees,
relating to pending or issued Licensed Patent(s), except that one copy of each
such document may be retained by LICENSEE's attorney for the purpose of ensuring
compliance hereunder. LICENSEE shall also execute any and all documents
necessary to return control of said Licensed Patent(s) until such time as
control has properly been transferred to LICENSOR. Further, LICENSEE shall
immediately return to LICENSOR all research data, biological and other material
(including, but not limited to licensed cell lines), prototypes, process
information, clinical data and the like of LICENSOR in its possession or in the
possession of its sublicensees. 

13. ASSIGNMENT

13.1 This Agreement shall not be assignable by either party
without the prior written consent of the other party, except that LICENSEE may
assign this Agreement to an entity, which acquires all or substantially all of
the assets to which this Agreement pertains without the prior written consent of
LICENSOR; provided however, in such event LICENSEE shall give LICENSOR prior
written notice of such assignment. 

14. INDEMNIFICATION

14.1 LICENSEE agrees that during the term of this Agreement
and thereafter, it will indemnify, defend and hold LICENSOR, its trustees,
officers, employees and affiliates, ﻿harmless against all claims and expenses,
including, but not limited to, legal expenses and attorneys' fees, arising out
of the death of or injury to any person or persons, or out of any damage to
property, and against any other claim, proceeding, demand, 

expense and liability
of any kind whatsoever resulting from the production, manufacture, sales, use,
consumption, disposal or advertisement of Licensed Products by LICENSEE. 

15. NOTICES

15.1 All notices under this Agreement shall be deemed to have
been fully given when done in writing and deposited in the United States mail,
registered, certified or express, and addressed as follows: 

TO LICENSOR: William J. Hartman 

                            Director of Research and Technology
						Development Services 

                            Georgetown University Medical
						Center 

                           
Suite 177, Bldg. D. 

                            4000 Reservoir Road, N.W.

                            Washington, D.C. 20007 

					
				
			
		
	

TO LICENSEE:  Charles Gao, Ph.D. 

                            President

                            ProteomTech, Inc.

                            800 Research Parkway

                            Oklahoma City, OK 73104 

			
		
	

Either party may change its address upon notice to the other
party as provided herein. 

16. DISPUTE RESOLUTION

16.1 Should the parties hereafter have any dispute as to
their obligations pursuant to this Agreement, they shall first attempt to
resolve such dispute among themselves. If such efforts are not successful, the
exclusive method for resolving such a dispute shall be arbitration as described
herein. 

16.2 Either party may elect to submit the issue to
arbitration by giving written notice to the other party and naming an
arbitrator. The other party will then have thirty (30) days to select its own
arbitrator. Once both arbitrators have been selected they shall meet within
thirty (30) days of the appointment of the second arbitrator and select a third
arbitrator mutually agreeable to them. 

16.3 Once the panel of arbitrators has been chosen, they
shall conduct arbitration on the disputed issue or issues in accordance with the
Commercial Arbitration Rules of the American Arbitration Association. The third
arbitrator shall serve as the presiding ﻿arbitrator, although, in the event of
dispute among the arbitrators, the majority decision of the arbitration panel
shall be binding. The decision of the arbitrators shall be final and either
party may apply to a court located in the District of Columbia to enter judgment
based on the arbitrator's decision. All costs of the arbitrators and
arbitration, other than the respective parties' attorneys' fees and costs, shall
be borne equally by the parties. 

17. APPLICABLE LAW

17.1 This Agreement shall be construed, interpreted and
applied in accordance with the laws of the District of Columbia and applicable
federal laws without regard for its conflict of laws provisions. 

18. GENERAL PROVISIONS

18.1 Waiver. None of the terms, covenants and
conditions of this Agreement can be waived except by the written consent of the
party waiving compliance. 

18.2 Severability. The provisions of this Agreement
shall be deemed severable, and the invalidity or unenforceability of any
provision shall not affect the validity and enforceability of the other
provisions hereof. 

18.3 Headings. The description headings in this
Agreement are inserted for convenience only and do not constitute a part of this
Agreement. 

18.4 Execution in Counterpart. This Agreement may be
executed in any number of counterparts, each of which shall be deemed an
original. 

18.5 Entire Agreement. This writing constitutes the
entire agreement of the parties and there are no promises, understandings or
agreements of any kind pertaining to this Agreement other than those written in
this Agreement. 

IN WITNESS WHEREOF, the parties thereto have executed
this Agreement in duplicate originals by their duly authorized officers or
representatives. 

	
For LICENSOR:                                                

			 For LICENSEE: 
	

			 
	

Georgetown University                                    
 

			

		ProteomTech, Inc.

		
	

			 
	
﻿By: /s/ Pim Thukral                                               

			By: /s/ Charles Gao
	

			 
	
Pim Thukral, Chief Financial Officer                    

			Charles Gao, President 
	

			 
	
Date: 2/27/02                                                       

			Date: 3/4/02
	

			 

By: /s/ William J. Hartman

William J. Hartman, Director 

Research & Technology Development Services 

Date: 2/27/02

Date

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