Document:

EXHIBIT
        10.5

       

      PLACEMENT
        AGENCY AGREEMENT

       

      October
        3, 2005 

       

      Brookshire
        Securities Corporation

      4
        West
        Las Olas Blvd.

      8th
        Floor

      Ft.
        Lauderdale, Florida 33301

       

      Re:    VirtualScopics,
        LLC 

       

      Ladies
        and Gentlemen:

       

      This
        Placement Agency Agreement (this “Agreement”)
        sets
        forth terms upon which Brookshire Securities Corporation, a registered
        broker-dealer and a member of the National Association of Securities Dealers,
        Inc. (together with its dealers, the “Placement
        Agent”),
        shall
        be engaged by VirtualScopics, LLC
        (“VirtualScopics”) and a publicly traded corporation, whose shares are
        registered with the Securities and Exchange Commission and are listed on
        the
        Over the Counter Bulletin Board (“Pubco”), to act as lead Placement Agent in
        connection with the private
        placement (the
        “Offering”)
        on a
“best efforts - 3,000 units or none” basis of
        up to
6,000
        units (“Units”),
        each
        Unit consisting of one share of Pubco’s Series A Convertible Preferred Stock
        (the “Series
        A Preferred Stock”),
        and a
        four year detachable, transferable warrant (the “Warrant”)
        to
        purchase 200 shares of Pubco’s common stock (the “Common
        Stock”)
        at an
        exercise price of $4.00 per share.
        In the
        event the Offering is oversubscribed, VirtualScopics and the Placement Agent
        may
        in their discretion sell as an over-allotment option up to an additional
        1,000
        Units. 

       

      Concurrently
        with the closing of this Offering, Pubco will acquire VirtualScopics through
        an
        exchange offer of its Common Stock for all of VirtualScopics’ outstanding
        membership units so that VirtualScopics will become a wholly-owned subsidiary
        of
        Pubco at the closing of this Offering (the
        “Exchange Offer”)
        and the
        members of VirtualScopics will become shareholders of Pubco. 

       

      Subject
        to Section 4(d), subscriptions for the Units will be accepted by Pubco at
        a
        price of $1,000 per Unit (the “Offering
        Price”),
        with
        a minimum investment of 50 Units ($50,000); provided, however, that
        subscriptions in lesser amounts may be accepted in Pubco’s and Placement Agent’s
        discretion. The Placement Agent shall not tender to Pubco subscriptions for
        any
        persons or entities who do not qualify as “accredited investors,” as such term
        is defined in Rule 501 of Regulation D as promulgated under Section 4(2)
        (“Regulation
        D”)
        of the
        Securities Act of 1933, as amended (the “Act”).
        The
        Units
        will be offered until October 31, 2005 (the “Initial
        Offering Period”)
        commencing on the issue date of the Memorandum (as defined below), which
        period
        may be extended by Pubco and the Placement Agent for an additional 90-day
        period
        (this additional period and the Initial Offering Period shall be referred
        to as
        the “Offering
        Period”).
        The
        date
        on which the Offering shall terminate shall be referred to as the “Termination
        Date.”

       

      
        
          
          

        

        
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      With
        respect to the Offering, Pubco shall provide the Placement Agent, on terms
        set
        forth herein, the right to offer and sell all (except for those provided
        in
        3.e)of the Units being offered. Each of the Placement Agent and Pubco may,
        in
        its sole reasonable discretion, accept or reject in whole or in part any
        prospective investment in the Units or allot to any prospective subscriber
        less
        than the number of Units that such subscriber desires to purchase. 

       

      The
        Offering will be made by Pubco solely pursuant to the Memorandum (as hereinafter
        defined), which at all times will be in form and substance reasonably acceptable
        to the Placement Agent, Pubco, VirtualScopics and their respective counsel
        and
        contain such legends and other information as such parties and their respective
        counsel may, from time to time, deem necessary and desirable to be set forth
        therein. “Memorandum”
        as used
        in this Agreement means Pubco’s Confidential Private Placement Memorandum dated
        September 30, 2005, inclusive of all annexes, and all amendments, supplements
        and appendices thereto.

       

      1.    Appointment
        of Placement Agent.
        On the
        basis of the representations and warranties provided herein, and subject
        to the
        terms and conditions set forth herein, the Placement Agent is appointed as
        exclusive Placement Agent of Pubco during the Offering Period to assist Pubco
        in
        finding qualified subscribers for the Offering. On the basis of such
        representations and warranties and subject to such terms and conditions,
        the
        Placement Agent hereby accepts such appointment and agrees to perform its
        services hereunder in a professional and businesslike manner and to use its
        commercially reasonable best efforts to assist Pubco in finding subscribers
        of
        Units who qualify as “accredited investors,” as such term is defined in Rule 501
        of Regulation D and to complete the Offering. The Placement Agent has no
        obligation to purchase any of the Units. Unless sooner terminated in accordance
        with this Agreement, the engagement of the Placement Agent hereunder shall
        continue until the later of the Termination Date or the Closing (as defined
        below). Prior to the Termination Date, neither Pubco nor VirtualScopics shall
        engage any other party to act as placement agent of any type of security
        (either
        debt or equity) of the either Pubco or VirtualScopics.

      

      2.    Representations
        and Warranties.
        

       

      The
        following representations and warranties of Pubco, only as to itself prior
        to
        the consummation of the Initial Closing and jointly, and severally with
        VirtualScopics after the consummation of the Initial Closing, and
        VirtualScopics, only as to itself prior to the consummation of the Initial
        Closing, and jointly and severally with Pubco after the consummation of the
        Initial Closing, contained in this Section 2 are true and correct as of the
        date
        of this Agreement:

       

      (a)    Pubco
        is
        a corporation, and VirtualScopics is a limited liability company, duly
        organized, validly existing and in good standing under the laws of its
        jurisdiction of incorporation or organization. Except as disclosed in the
        Memorandum, neither Pubco nor VirtualScopics has any subsidiaries and does
        not
        have an equity interest in any other firm, partnership, association or other
        entity. Each of Pubco and VirtualScopics is duly qualified to transact business
        as a foreign corporation or limited liability company and is in good standing
        under the laws of each jurisdiction where the location of its properties
        or the
        conduct of its business makes such qualification necessary, except where
        the
        failure to be so qualified would not have a material adverse effect on Pubco,
        VirtualScopics or their respective businesses.

       

      
        
          
          

        

        
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      (b)    Each
        of
        Pubco and VirtualScopics has all requisite power and authority to conduct
        its
        business as presently conducted and as proposed to be conducted, to enter
        into
        and perform its obligations under this Agreement and the share exchange
        agreement that will effect the Exchange Offer (the “Share
        Exchange Agreement”)
        and at
        the time of the Initial Closing Pubco will have all requisite power and
        authority to issue, sell and deliver the securities comprising the Units
        and the
        Placement Agent Warrants (as hereinafter defined). Upon due execution and
        delivery, this Agreement, the Subscription Agreement annexed to the Memorandum
        (the “Subscription
        Agreement”),
        the
        Warrants, the warrants to be issued to the Placement Agent at each closing
        of
        the Offering (“Placement
        Agent Warrants”)
        and
        the Share Exchange Agreement will constitute the valid and binding obligations
        of each of Pubco and VirtualScopics to the extent it is a party to such
        agreements or instruments, enforceable against each of Pubco and VirtualScopics
        in accordance with their respective terms, subject to any applicable bankruptcy,
        insolvency or other laws affecting the rights of creditors generally, securities
        laws applicable to indemnification and contribution obligations of the kind
        set
        forth herein and to general equitable principles and the availability of
        specific performance.

      

      (c)    None
        of
        the execution and delivery of, or performance by Pubco or VirtualScopics
        under
        this Agreement or the Subscription Agreement, the Warrants, the Placement
        Agent
        Warrants and the Share Exchange Agreement, will conflict with or violate,
        or
        will result in the creation or imposition of, any lien, charge or other
        encumbrance upon any of the assets of Pubco or VirtualScopics under any
        agreement or other instrument to which either Pubco or VirtualScopics is
        a party
        or by which either Pubco or VirtualScopics or their respective assets may
        be
        bound, or any term of the charter or by-laws of Pubco or the articles of
        organization or operating agreement of VirtualScopics, or any license, permit,
        judgment, decree, order, statute, rule or regulation applicable to Pubco,
        VirtualScopics or any of their respective assets.

       

      (d)    None
        of
        the Units, the Warrants, the Placement Agent Warrants and the shares of Common
        Stock issuable upon exercise of the Warrants or the Placement Agent Warrants
        are
        subject to preemptive or similar rights of any stockholder or security holder
        of
        Pubco or an adjustment under the anti-dilution or exercise rights of any
        holders
        of any outstanding shares of capital stock, options, warrants or other rights
        to
        acquire any securities of Pubco.

       

      (e)    Pubco
        agrees that no consent, authorization or filing of or with any United States
        court or government authority is required in connection with the consummation
        of
        the transactions contemplated herein, except for required filings with the
        United States Securities and Exchange Commission (the “SEC”)
        and
        applicable “Blue Sky” or state securities commissions relating specifically to
        the Offering.

       

      
        
          
          

        

        
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      (f)    The
        Memorandum does not, and will not, include any untrue statement of a material
        fact or omit to state any material fact required to be stated therein or
        necessary to make the statements therein, in light of the circumstances under
        which they were made, not misleading.

       

      (g)    The
        Memorandum has been prepared in conformity with all applicable law, and is
        in
        compliance with Regulation D, the Act and the requirements of all other rules
        and regulations (the “Regulations”)
        of the
        SEC relating to offerings of the type contemplated by the Offering, and the
        applicable securities laws and the rules and regulations of those jurisdictions
        wherein the Units are to be offered and sold other than foreign jurisdictions.
        The Units will be offered and sold pursuant to the registration exemption
        provided by Regulation D and Section 4(2) and/or Section 4(6) of the Act
        as a
        transaction not involving a public offering and the requirements of any other
        applicable state securities laws and the respective rules and regulations
        thereunder in those jurisdictions in the United States in which the Placement
        Agent notifies Pubco that the Units are being offered for sale. Neither Pubco
        nor VirtualScopics has taken, nor will either take, any action which conflicts
        with the conditions and requirements of, or which would make unavailable
        with
        respect to the Offering, the exemption(s) from registration available pursuant
        to Regulation D or Section 4(2) and/or Section 4(6) of the Act. None of Pubco,
        its predecessors or, to Pubco’s knowledge, its affiliates, has been subject to
        any order, judgment or decree of any court of competent jurisdiction
        temporarily, preliminarily or permanently enjoining such person for failing
        to
        comply with Section 503 of Regulation D.

       

      (h)    Each
        of
        VirtualScopics and Pubco owns its property and assets free and clear of all
        mortgages, liens, loans, pledges, security interests, claims, equitable
        interests, charges, and encumbrances, except such encumbrances and liens
        which
        arise in the ordinary course of business and do not materially impair Pubco’s or
        VirtualScopics’, ownership or use of such property or assets. With respect to
        the property and assets it leases, if any, each of Pubco and VirtualScopics
        is
        in compliance in all material respects with such leases and, to its knowledge,
        holds a valid leasehold interest free of any liens, claims, or encumbrances.
        

       

      (i)    Pubco
        has
        authorized and outstanding the capital stock as set forth in the Memorandum
        as
        of the date set forth therein. All outstanding shares of capital stock of
        Pubco
        are duly authorized, validly issued and outstanding, fully paid and
        nonassessable. Except for warrants referred to in the Memorandum: (i) there
        are
        no outstanding options, warrants or other rights permitting or requiring
        Pubco
        or others to purchase or acquire any shares of capital stock or other equity
        securities of Pubco or to pay any dividend or make any other distribution
        in
        respect thereof; (ii) there are no securities issued or outstanding which
        are
        convertible into or exchangeable for shares of capital stock or other equity
        securities of Pubco and there are no contracts, commitments or understandings
        to
        which Pubco is a party, whether or not in writing, to issue or grant any
        such
        option, warrant, right or convertible or exchangeable security; (iii) no
        shares
        of stock or other securities of Pubco are reserved for issuance for any purpose;
        (iv) there are no voting trusts or other contracts, commitments, understandings,
        arrangements or restrictions of any kind to which Pubco is a party with respect
        to the ownership, voting or transfer of Units of stock or other securities
        of
        Pubco, including without limitation, any preemptive rights, rights of first
        refusal, proxies or similar rights and (v) no person holds a right to require
        Pubco to register any securities of Pubco under the Act or to participate
        in any
        such registration. The issued and outstanding shares of capital stock of
        Pubco
        conform to all statements in relation thereto contained in the Memorandum
        and
        the Memorandum describes all material terms and conditions thereof. All
        issuances by Pubco of its securities have been registered or were exempt
        from
        registration under the Act and any applicable state securities
        laws.

       

      
        
          
          

        

        
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      (j)    The
        financial statements, together with the related notes, of Pubco included
        in
        Pubco’s SEC filings present fairly in all material respects the financial
        position of Pubco as of the respective dates specified and the results of
        its
        operations and cash flow for the respective periods covered thereby. Except
        as
        set forth in such financial statements, Pubco has not incurred any material
        liabilities of any kind, whether accrued, absolute, contingent or otherwise
        or
        entered into any material transactions subsequent to December 31, 2004. The
        financial statements, together with the related notes, of VirtualScopics
        included in the Memorandum present fairly in all material respects the financial
        position of VirtualScopics as of the respective dates specified and the results
        of its operations and cash flow for the respective periods covered thereby.
        Except as set forth in such financial statements and in the Memorandum,
        VirtualScopics has not incurred any material liabilities of any kind, whether
        accrued, absolute, contingent or otherwise or entered into any material
        transactions subsequent to December 31, 2004.

       

      (k)    The
        conduct of business by VirtualScopics as presently and proposed to be conducted
        is not subject to continuing oversight, supervision, regulation or examination
        by any governmental official or body of the United States or any other
        jurisdiction wherein VirtualScopics conducts or proposes to conduct such
        business, except as is described in the Memorandum or where such regulation
        is
        otherwise applicable to commercial enterprises generally. VirtualScopics
        has
        obtained all requisite licenses, permits and other governmental authorizations
        to conduct its business as presently conducted, except to the extent the
        failure
        to so obtain would not materially and adversely affect or could reasonably
        be
        expected to materially and adversely affect the business, financial condition,
        operations, prospects or property of Pubco or any of its subsidiaries, taken
        as
        a whole (a “Material
        Adverse Effect”).
        VirtualScopics has not received any notice of any violation of, or noncompliance
        with, any federal, state, local or foreign laws, ordinances, regulations
        and
        orders (including, without limitation, those relating to environmental
        protection, occupational safety and health, federal securities laws, equal
        employment opportunity, consumer protection, credit reporting,
“truth-in-lending”, and warranties and trade practices) applicable to its
        business, the violation of, or noncompliance with, which would have a Material
        Adverse Effect, and VirtualScopics knows of no facts or set of circumstances
        which would give rise to such a notice.

       

      (l)    Except
        as
        set forth in its SEC filings, no default by Pubco or, to the knowledge of
        Pubco,
        any other party exists in the due performance under any material agreements
        to
        which Pubco is a party or to which any of its assets are subject, other than
        defaults that would not have a Material Adverse Effect. Except as set forth
        in
        the Memorandum, no default by VirtualScopics or, to the knowledge of
        VirtualScopics, any other party exists in the due performance under any material
        agreements to which VirtualScopics is a party or to which any of its assets
        are
        subject, other than defaults that would not have a Material Adverse
        Effect.

       

      
        
          
          

        

        
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      (m)    Except
        as
        set forth in its SEC filings, there are no actions, suits, claims, hearings
        or
        proceedings pending before any court or governmental authority or, to the
        knowledge of Pubco, threatened, against Pubco, or involving its assets or
        any of
        its officers or directors (in their capacity as such) which, if determined
        adversely to Pubco or such officer or director, would have a Material Adverse
        Effect or adversely affect the transactions contemplated by this Agreement
        or
        the Share Exchange Agreement or the enforceability thereof. Except as set
        forth
        in the Memorandum, there are no actions, suits, claims, hearings or proceedings
        pending before any court or governmental authority or, to the knowledge of
        VirtualScopics, threatened, against VirtualScopics, or involving its assets
        or
        any of its officers or directors (in their capacity as such) which, if
        determined adversely to VirtualScopics or such officer or director, would
        have a
        Material Adverse Effect or adversely affect the transactions contemplated
        by
        this Agreement or the Share Exchange Agreement or the enforceability
        thereof.

       

      (n)    Neither
        Pubco nor VirtualScopics is: (i) in violation of its charter or By-laws;
        (ii) in
        default of any indenture, mortgage, deed of trust, note or other agreement
        or
        instrument to which it is a party or by which it is or may be bound or to
        which
        any of its assets may be subject, the default of which would have a Material
        Adverse Effect; (iii) in violation of any statute, rule or regulation, the
        violation of which would have a Material Adverse Effect; or (iv) in violation
        of
        any judgment, decree or order applicable to it, which violation or violations
        individually, or in the aggregate, would have a Material Adverse
        Effect.

       

      (o)    Except
        as
        set forth in the Memorandum, since June 30, 2005, there has been no: (i)
        material adverse change in the financial condition of VirtualScopics or (ii)
        damage, loss or destruction, whether or not covered by insurance, with respect
        to any material asset or property of VirtualScopics.

       

      (p)    VirtualScopics
        has appropriate casualty and liability insurance coverage, in scope and amounts
        reasonable and customary for similar businesses.

       

      (q)    Each
        of
Pubco
        and
        VirtualScopics has made or filed all federal, state and foreign income and
        all
        other tax returns, reports and declarations required by any jurisdiction
        to
        which it is subject and which are due (unless and only to the extent that
        it has
        set aside on its books provisions reasonably adequate for the payment of
        all
        unpaid and unreported taxes or has obtained an extension of the deadline
        for
        such filing) and has paid all taxes and other governmental assessments and
        charges that are material in amount, shown or determined to be due on such
        returns, reports and declarations, except those being contested in good faith
        and has set aside on its books provisions reasonably adequate for the payment
        of
        all taxes for periods subsequent to the periods to which such returns, reports
        or declarations apply. To Pubco’s knowledge, there are no unpaid taxes in any
        material amount claimed to be due by the taxing authority of any jurisdiction,
        and the officers of Pubco know of no basis for any such claim. Pubco has
        not
        executed a waiver with respect to the statute of limitations relating to
        the
        assessment or collection of any foreign, federal, statue or local tax. To
        Pubco’s knowledge, none of Pubco’s tax returns is presently being audited by any
        taxing authority. To VirtualScopics’ knowledge, there are no unpaid taxes in any
        material amount claimed to be due by the taxing authority of any jurisdiction,
        and the officers of VirtualScopics know of no basis for any such claim.
        VirtualScopics has not executed a waiver with respect to the statute of
        limitations relating to the assessment or collection of any foreign, federal,
        statue or local tax. To VirtualScopics’ knowledge, none of VirtualScopics’ tax
        returns is presently being audited by any taxing authority.

       

      
        
          
          

        

        
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      (s)    Pubco
        has
        filed all reports required to be filed by it under the Securities Exchange
        Act
        of 1934, as amended (the “Exchange
        Act”),
        including pursuant to Section 13(a) or 15(d) thereof (the foregoing materials
        being collectively referred to herein as the “SEC
        Filings”).
        As of
        their respective dates, the SEC Filings complied in all material respects
        with
        the requirements of the Act and the Exchange Act and the rules and regulations
        of the SEC promulgated thereunder, and none of the SEC Filings, when filed,
        did
        not contain any untrue statement of a material fact or omit to state a material
        fact required to be stated therein or necessary in order to make the statements
        therein, in light of the circumstances under which they were made, not
        misleading. All material agreements to which Pubco is a party have been filed
        as
        exhibits to the SEC Filings to the extent required. The financial statements
        of
        Pubco included in the SEC Filings comply in all material respects with
        applicable accounting requirements and the rules and regulations of the SEC
        with
        respect thereto as in effect at the time of filing.

       

      (t)    Since
        the
        adoption of the Sarbanes-Oxley Act of 2002 (the “New
        Act”),
        Pubco
        has complied in all material respects with the laws, rules and regulation
        under
        the New Act to the extent applicable to Pubco. 

       

      (u)    Neither
        the sale of the Units hereunder nor its use of the proceeds thereof will
        violate
        the Trading with the Enemy Act, as amended, or any of the foreign assets
        control
        regulations of the United States Treasury Department (31 CFR, Subtitle B,
        Chapter V, as amended) or any enabling legislation or executive order relating
        thereto. Without limiting the foregoing, neither Pubco nor any of its
        subsidiaries (a) is a person whose property or interests in property are
        blocked
        pursuant to Section 1 of Executive Order 13224 of September 23, 2001 Blocking
        Property and Prohibiting Transactions With Persons Who Commit, Threaten to
        Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)) or (b) engages in
        any
        dealings or transactions, or be otherwise associated, with any such person.
        Pubco and its subsidiaries are in compliance with the USA Patriot Act of
        2001
        (signed into law October 26, 2001).

       

      3.    Placement
        Agent Compensation.

       

      (a)    Pubco
        shall cause to be delivered to the Placement Agent copies of the Memorandum
        and
        has consented, and hereby consents, to the use of such copies for the purposes
        permitted by the Act and applicable securities laws and in accordance with
        the
        terms and conditions of this Agreement, and hereby authorizes the Placement
        Agent and its agents and employees to use the Memorandum in connection with
        the
        sale of the Units until the Termination Date, and no person or entity is
        or will
        be authorized to give any information or make any representations other than
        those contained in the Memorandum or to use any offering materials other
        than
        those contained in the Memorandum in connection with the sale of the
        Units.

       

      (b)    Pubco
        shall make available to the Placement Agent and its representatives such
        information as may be reasonably requested in making a reasonable investigation
        of Pubco and its affairs and shall provide access to such employees during
        normal business hours as shall be reasonably requested by the Placement
        Agent.

       

      
        
          
          

        

        
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      (c)    As
        compensation for its services under this Agreement, at the Closing, subject
        to
        Section 3(e) below, the Placement Agent will receive a cash fee (the
        “Placement
        Agent Fee”)
        equal
        to 8%
        of the
        aggregate proceeds that Pubco receives from the sale of the Units and (ii)
        reimbursement of all reasonable out-of-pocket expenses, including the reasonable
        fees and expenses of counsel for the Placement Agent in connection with the
        Offering up to an aggregate amount of $55,000,
        (the
“Expense
        Reimbursement”).
        Notwithstanding anything to the contrary contained herein, the Placement
        Agent
        shall reallow to Matrix USA, LLC that portion of the Placement Agent Fee
        that is
        attributable to sales of Units made by Matrix USA, LLC as sub-placement
        agent.

       

      (d)    In
        addition to the Placement Agent Fee, subject to Section 3(e), Pubco shall
        at
        Closing sell to Placement Agent, or its designee(s), for consideration of
        $10.00, a four-year warrant to purchase such number of shares of Common Stock
        at
        an exercise price of $2.50 per share equal to 10% of the number of shares
        of
        Common Stock initially issuable upon the conversion of the Series A Preferred
        Stock sold in this Offering (the
        “Placement Agent Warrants”).
        The
        Placement Agent Warrants shall have the same registration rights as those
        afforded to investors in the Offering and shall contain provisions for cashless
        exercise. Notwithstanding anything to the contrary contained herein, the
        Placement Agent shall reallow to Matrix USA, LLC that portion of the Placement
        Agent Warrants that are attributable to sales of Units made by Matrix USA,
        LLC
        as sub-placement agent. VirtualScopics hereby consents to such
        reallowance.

       

      (e)    With
        respect to the sale of the first 3,000 Units (i.e. gross proceeds of $3
        million), the Placement Agent shall not be entitled to the Placement Agent
        Fee
        or to purchase Placement Agent Warrants with respect to sales of Units arranged
        through the officers or directors of VirtualScopics to certain pre-existing
        prospective investors. With respect to sales of Units after the sale of the
        first 3,000 Units (i.e. gross proceeds in excess of $3 million), the Placement
        Agent Fee shall be reduced from 8% to 2% with respect to sales of Units arranged
        through the officers or directors of VirtualScopics. Notwithstanding anything
        to
        the contrary contained herein, with respect to sales of Units arranged through
        the officers or directors of VirtualScopics (whether as part of the first
        3,000
        Units or thereafter) to:
        (i)
        Merck, (ii) Pfizer, (iii) Quest Diagnostics, (iv) NGN or (v) any of
        VirtualScopic’s other existing investors as of the date hereof, the Placement
        Agent shall not be entitled to purchase the Placement Agent Warrants.

       

      (f)    To
        the
        extent there is more than one Closing, payment of the proportional amount
        of the
        Placement Agent Fee will be made out of the proceeds of subscriptions for
        the
        Units sold at each Closing and Placement Agent Warrants shall be issued at
        each
        Closing. Payment of the Expense Reimbursement incurred as of the date of
        each
        Closing, will be made out of the proceeds of subscriptions for Units at each
        Closing.

       

      4.    Subscription
        and Closing Procedures.

       

      (a)    The
        Units
        sold in the Offering will be sold pursuant to Subscription Agreements between
        Pubco and the investors in the Offering in the form annexed to the
        Memorandum.

       

      
        
          
          

        

        
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      (b)    All
        funds
        for subscriptions received from the sale of Units in the Offering will be
        deposited into the escrow account (the “Escrow
        Account”)
        established for such purpose with Signature Bank, New York, New York (the
        “Escrow
        Agent”).
        All
        such funds for subscriptions will be held in the Escrow Account pursuant
        to the
        terms of the Escrow Agreement by and among the Placement Agent, VirtualScopics
        and the Escrow Agent. Pubco will pay all fees related to the establishment
        and
        maintenance of the Escrow Account.

       

      (c)    If
        subscriptions for $3,000,000 of Units have been accepted prior to the expiration
        of the Initial Offering Period or any extension thereof, the funds therefor
        have
        been collected by the Escrow Agent and all of the conditions set forth elsewhere
        in this Agreement are fulfilled, the Initial Closing shall be held in accordance
        with the terms of the Subscription Agreements with respect to the Units sold
        at
        the offices of Greenberg Traurig, LLP, counsel to Pubco. Thereafter, additional
        closings may be held until the full $6.0 million of Units is sold. To the
        extent
        the over-allotment option is exercised, the remaining Units will continue
        to be
        offered and sold until the Termination Date, with the final closing (the
        “Final
        Closing”
        and
        each closing of the purchase and sale of Units is referred to in this Agreement
        as a “Closing”)
        to
        occur within 10 days from the earlier of the Termination Date or the sale
        of all
        Units offered. Delivery of payment for the accepted subscriptions for Units
        from
        funds held in the Escrow Account will be made at the Closing against delivery
        of
        the Units by Pubco. Executed certificates for the securities comprising the
        Units and the Placement Agent Warrants will be made available to the Placement
        Agent for checking and packaging at the Placement Agent’s office prior to the
        Closing or within five (5) business days following the Closing.

       

      (d)    If
        subscriptions for $3,000,000 of Units have not been received and accepted
        by
        Pubco (with VirtualScopics’ consent) on or before the expiration of the Initial
        Offering Period or any extension thereof for any reason, the Offering will
        be
        terminated, no Units will be sold, and the Escrow Agent will, at the request
        of
        the Placement Agent, cause all monies received from subscribers for the Units
        to
        be promptly returned to such subscribers without interest, penalty, expense
        or
        deduction. Subject
        to the receipt of such subscriptions for
        $3,000,000,
        Pubco
        (with VirtualScopics’ consent) will accept or reject the Subscription Document
        in a timely fashion and at each Closing will countersign the Subscription
        Document and provide duplicate copies of such Agreements to the Placement
        Agent
        for distribution to the Subscribers. Pubco will give written notice to the
        Placement Agent of its acceptance or rejection of each subscription. Pubco
        or
        the Placement Agent on the Company's behalf, will promptly return to Subscribers
        incomplete, improperly completed, improperly executed and rejected subscriptions
        and give written notice thereof to the Placement Agent upon such return.
        

       

      5.    Further
        Covenants.
        Each of
        Pubco and VirtualScopics hereby covenants and agrees that:

       

      (a)    Except
        upon prior written notice to the Placement Agent, neither Pubco nor
        VirtualScopics shall, at any time prior to the Closing, knowingly take any
        action which would cause any of the representations and warranties made by
        it in
        this Agreement not to be complete and correct in all material respects on
        and as
        of the Closing date with the same force and effect as if such representations
        and warranties had been made on and as of each such date.

       

      
        
          
          

        

        
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      (b)    If,
        at
        any time prior to the Closing, any event shall occur that causes or is
        reasonably likely to result in a Material Adverse Effect or as a result of
        which
        it becomes necessary to amend or supplement the Memorandum so that the
        representations and warranties herein remain true and correct in all material
        respects, or in case it shall be necessary to amend or supplement the Memorandum
        to comply with Regulation D or any other applicable securities laws or
        regulations, VirtualScopics will promptly notify the Placement Agent and
        shall,
        at its sole cost, prepare and furnish to the Placement Agent copies of
        appropriate amendments and/or supplements in such quantities as the Placement
        Agent may reasonably request. Neither Pubco nor VirtualScopics will at any
        time
        before the Closing prepare or use any amendment or supplement to the Memorandum
        of which the Placement Agent will not previously have been advised and furnished
        with a copy, or which is not in compliance in all material respects with
        the Act
        and other applicable securities laws. As soon as Pubco or VirtualScopics
        is
        advised thereof, Pubco or VirtualScopics will advise the Placement Agent
        and its
        counsel, and confirm the advice in writing, of any order preventing or
        suspending the use of the Memorandum, or the suspension of any exemption
        for
        such qualification or registration thereof for offering in any jurisdiction,
        or
        of the institution or threatened institution of any proceedings for any of
        such
        purposes, and Pubco and VirtualScopics will use their best efforts to prevent
        the issuance of any such order and, if issued, to obtain as soon as reasonably
        possible the lifting thereof.

       

      (c)    Pubco
        and
        VirtualScopics shall comply with the Act, the Exchange Act and the rules
        and
        regulations thereunder, all applicable state securities laws and the rules
        and
        regulations thereunder in the states in which Blue
        Sky
        counsel has advised the Placement Agent that the Units are qualified or
        registered for sale or exempt from such qualification or registration, so
        as to
        permit the continuance of the sales of the Units, and will file with the
        SEC,
        and shall promptly thereafter forward to the Placement Agent, any and all
        reports on Form D as are required.

       

      (d)    Pubco
        and
        VirtualScopics shall use commercially reasonable best efforts to qualify
        the
        Units for sale under the securities laws of such jurisdictions in the United
        States as may be mutually agreed to by Pubco, VirtualScopics and the Placement
        Agent, and Pubco and VirtualScopics will make such applications and furnish
        information as may be required for such purposes, provided that neither Pubco
        nor VirtualScopics will be required to qualify as a foreign corporation in
        any
        jurisdiction or execute a general consent to service of process. Pubco and
        VirtualScopics will, from time to time, prepare and file such statements
        and
        reports as are or may be required to continue such qualifications in effect
        for
        so long a period as the Placement Agent may reasonably request with respect
        to
        the Offering.

       

      (e)    Pubco
        shall place a legend on the certificates representing the securities comprising
        the Units and the Placement Agent Warrants that the securities evidenced
        thereby
        have not been registered under the Act or applicable state securities laws,
        setting forth or referring to the applicable restrictions on transferability
        and
        sale of such securities under the Act and applicable state laws.

       

      (f)    Pubco
        shall apply the net proceeds from the sale of the Units to fund its working
        capital requirements and for such other purposes as substantially described
        under the “Use of Proceeds” section of the Memorandum. 

       

      
        
          
          

        

        
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      (g)    During
        the Offering Period, VirtualScopics shall afford each prospective purchaser
        of
        Units the opportunity to ask questions of and receive answers from an officer
        of
        VirtualScopics concerning the terms and conditions of the Offering and the
        opportunity to obtain such other additional information necessary to verify
        the
        accuracy of the Memorandum to the extent it possesses such information or
        can
        acquire it without unreasonable expense or violation of any confidentiality
        agreements.

       

      (h)    Pubco
        and
        VirtualScopics shall pay all reasonable expenses incurred in connection with
        the
        preparation and printing of all necessary offering documents and instruments
        related to the Offering and the issuance of the Units and the Placement Agent
        Warrants and will also pay their own respective expenses for accounting fees,
        legal fees, and other costs involved with the Offering. VirtualScopics will
        provide at its own expense such quantities of the Memorandum and other documents
        and instruments relating to the Offering as the Placement Agent may reasonably
        request. In addition, Pubco will pay all reasonable filing fees, costs and
        legal
        fees for Blue Sky services and related filings and expenses of counsel with
        respect to Blue Sky qualifications. The Blue Sky filings shall be prepared
        by
        Pubco’s Blue Sky counsel and all Blue Sky filing fees shall be paid by Pubco
        prior to any filing. Pubco’s Blue Sky counsel shall promptly send copies of all
        Blue Sky filings that it makes to the Placement Agent following the Closing.
        All
        other fees and expenses of Blue Sky counsel shall be payable at the Closing.
        Further, as promptly as practicable after the Closing, Pubco shall prepare,
        at
        its own expense, velobound “closing binders” relating to the Offering and will
        distribute such binders to the individuals designated by counsel to the
        Placement Agent.

       

      (i)    Except
        with the prior written consent of the Placement Agent, not to be unreasonably
        withheld or delayed, as contemplated by the Memorandum or any transaction
        involving the issuance of equity securities to: (i) Merck, (ii) Pfizer, (iii)
        Quest Diagnostics, (iv) NGN or (v) any of the VirtualScopic’s other existing
        investors, neither Pubco nor VirtualScopics shall, at any time prior to the
        Closing, engage in any transaction outside the ordinary course of its business
        or issue, agree to issue or set aside for issuance any securities (debt or
        equity) or any rights to acquire any such securities.

       

      (j)    Except
        as
        otherwise approved by the Placement Agent, until
        the
        Termination Date, neither Pubco, nor VirtualScopics nor any person or entity
        acting on its behalf will negotiate with any other placement agent or
        underwriter with respect to a private or public offering of Pubco’s or any
        subsidiary’s debt or equity securities. Neither Pubco, nor anyone acting on its
        behalf will, until the Termination Date, without the prior written consent
        of
        the Placement Agent, offer for sale to, or solicit offers to subscribe for
        securities of Pubco or VirtualScopics from, or otherwise approach or negotiate
        in respect thereof with, any other person. The foregoing shall not in any
        limit
        the ability of VirtualScopics officers and directors from selling or offering
        for sale any Units in the Offering.

       

      6.    Conditions
        of Placement Agent’s Obligations.
        The
        obligations of the Placement Agent hereunder to effect the Closing are subject
        to the fulfillment, at or before the Closing, of the following additional
        conditions:

       

      (a)    Each
        of
        the representations and warranties of Pubco and VirtualScopics shall be true
        and
        correct in all material respects when made on and as of the Closing date
        as
        though made on and as of the Closing, except as to representations and
        warranties made as of a specific date.

       

      
        
          
          

        

        
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      (b)    Pubco
        and
        VirtualScopics shall have performed and complied in all material respects
        with
        all agreements, covenants and conditions required to be performed and complied
        with by it at or before the Closing.

       

      (c)    No
        order
        suspending the use of the Memorandum or enjoining the Offering or sale of
        the
        Units shall have been issued, and no proceedings for that purpose or a similar
        purpose shall have been initiated or pending, or, to the best of Pubco’s and
        VirtualScopics’ knowledge, be contemplated or threatened.

       

      (d)    The
        Placement Agent shall have received a certificate of the President and Chief
        Executive Officer of each of Pubco and VirtualScopics, dated as of the Closing
        Date, certifying, as to the fulfillment of the conditions set forth in
        subparagraphs (a), (b) and (c) above, as those conditions relate to their
        respective companies.

       

      (e)    Each
        of
        Pubco and VirtualScopics shall have delivered to the Placement Agent: (i)
        a
        recently dated good standing certificate from the secretary of state of its
        jurisdiction of incorporation or organization and each jurisdiction in which
        it
        is qualified to do business as a foreign corporation; and (ii) resolutions
        of
        its Board of Directors or other governing body approving this Agreement and
        the
        transactions and agreements contemplated by this Agreement, the Share Exchange
        Agreement and the Memorandum, certified by its President and Chief Executive
        Officer and (iii) resolutions of its shareholders or members, to the extent
        required, approving the Share Exchange Agreement and the transactions and
        agreements contemplated by the Share Exchange Agreement.

       

      (f)    At
        each
        Closing, Pubco shall pay to the Placement Agent the Placement Agent Fee and
        the
        Expense Reimbursement and shall issue the Placement Agent Warrants.

       

      (g)    Pubco
        shall deliver to the Placement Agent a signed opinion of Greenberg Traurig,
        LLP,
        counsel to Pubco dated as of the Closing Date, containing the opinions set
        forth
        in Exhibit A, subject to condtions, limitations and qualifications provided
        for
        therein. 

       

      (h)    VirtualScopics
        shall deliver to the Placement Agent a signed opinion of Woods Oviatt Gilman
        LLP, counsel to VirtualScopics, dated as of the Closing Date, containing
        the
        opinions set forth in Exhibit B, subject to condtions, limitations and
        qualifications provided for therein.

       

      (i)    All
        proceedings taken at or prior to each Closing in connection with the
        authorization, issuance and sale of the Units and the Placement Agent Warrants
        will be reasonably satisfactory in form and substance to the Placement Agent
        and
        its counsel, and such counsel shall have been furnished with all such documents,
        certificates and opinions as it may reasonably request upon reasonable prior
        notice in connection with the transactions contemplated hereby.

       

      (j)    The
        transactions contemplated in the Share Exchange Agreement shall have been
        consummated.

       

      
        
          
          

        

        
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      (k)    A
        Registration Rights Agreement covering the Placement Agent Warrants
        substantively equivalent to the registration rights granted to the investors
        in
        the Offering shall be executed and delivered by Pubco.

      

      (l)    The
        Share
        Exchange Agreement, which includes language pursuant to which the
        representations, warranties and covenants of VirtualScopics as contained
        therein, are made in favor of the Placement Agent, shall have been consummated.
        

       

      7.    Intentionally
        Omitted

       

      8.    Representation
        and Warranties of the Placement Agent; Covenants of the Placement
        Agent.

       

      (a)    The
        Placement Agent hereby represents and warrants to Pubco and VirtualScopics
        that
        (i) it is a registered broker-dealer pursuant to the Exchange Act and a member
        in good standing of the National Association of Securities Dealers, Inc.,
        and
        (ii) this Agreement has been duly authorized, executed and delivered by the
        Placement Agent and is a valid and binding agreement on its part.

       

      (b)    The
        Placement Agent shall not engage in any form of general solicitation or general
        advertising that is prohibited by Regulation D in connection with
        the
        Offering, or take any action that might reasonably be expected to jeopardize
        the
        availability for the Offering of the exemption from registration provided
        by
        Rule 506 under Regulation D. The Placement Agent shall comply in all
        material respects with all laws in effect in all US jurisdictions in which
        securities of Pubco are offered by it and the rules, regulations and orders
        of
        any securities administrator existing or adopted thereunder, including without
        limitation, the Act, the Exchange Act and the rules and regulations thereunder.
        

       

      (c)    The
        Placement Agent shall maintain appropriate records of the documents signed
        by
        each subscriber for a period of at least four years after the Termination
        Date.

       

      9.    Confidentiality.
        In the
        course of its services under this Agreement, the Placement Agent will have
        access to Confidential Information (as defined below) concerning Pubco and
        VirtualScopics. The Placement Agent agrees that all Confidential Information
        will be treated by the Placement Agent as confidential in all respects. The
        Placement Agent hereby agrees that it and its dealers, affiliates and
        representatives shall: (i) use the Confidential Information solely for the
        purposes of its engagement hereunder; and (ii) not disclose any Confidential
        Information to any other party except to those Placement Agent representatives
        who need to know such information for the purposes of the Placement Agent’s
        engagement hereunder and who have been advised of such confidentiality
        restrictions. The term “Confidential
        Information”
        shall
        mean all information, whether written or oral, which is or has been disclosed
        by
        Pubco, VirtualScopics or their respective affiliates, agents or representatives
        to the Placement Agent or any of its representatives in connection with the
        Offering and the transactions contemplated hereby, which is not in the public
        domain, but shall not include: (i) information which is publicly disclosed
        other
        than by the Placement Agent in violation of this Agreement; (ii) information
        which is obtained by the Placement Agent from a third party that (x) is not
        known by Placement Agent to have violated, or obtained such information in
        violation of, any obligation to Pubco, VirtualScopics, or their respective
        affiliates with respect to such information, and (y) does not require the
        Placement Agent to refrain from disclosing such information; and (iii)
        information which is required to be disclosed by the Placement Agent or its
        outside counsel under compulsion of law (whether by oral question,
        interrogatory, subpoena, civil investigative demand or otherwise) or by order
        of
        any court or governmental or regulatory body to whose supervisory authority
        the
        Placement Agent is subject; provided that,
        in such
        circumstance, the Placement Agent will give Pubco or VirtualScopics, as the
        case
        may be, prior written notice of such disclosure and cooperate with Pubco
        or
        VirtualScopics, as the case may be, to minimize the scope of any such
        disclosure. The Placement Agent’s obligation under this section shall continue
        for a period of two years after the
        date
        of expiration, termination or completion of this Agreement or the Placement
        Agent’s engagement hereunder.

      
        
          
          

        

        
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      10.    Indemnification.

       

      (a)    Each
        of
        Pubco and VirtualScopics shall: (i) indemnify and hold harmless the Placement
        Agent, its selected dealers, agents and their respective officers, directors,
        employees and each person, if any, who controls the Placement Agent within
        the
        meaning of the Act and such agents (each an “Indemnitee”)
        against, and pay or reimburse each Indemnitee for, any and all losses, claims,
        damages, liabilities or expenses whatsoever (or actions or proceedings or
        investigations in respect thereof), joint or several (which will, for all
        purposes of this Agreement, include, but not be limited to, all reasonable
        costs
        of defense and investigation and all reasonable attorneys’ fees, including
        appeals), to which any Indemnitee may become subject, under the Act or
        otherwise, in connection with the offer and sale of the Units, and (ii)
        reimburse each Indemnitee for any legal or other expenses reasonably incurred
        in
        connection with investigating or defending against any such loss, claim,
        action,
        proceeding or investigation; provided,
        however,
        that
        neither Pubco nor VirtualScopics will be liable in any such case to the extent
        that any such claim, damage or liability results from (A) an untrue statement
        or
        alleged untrue statement of a material fact made in the Memorandum, or an
        omission or alleged omission to state therein a material fact required to
        be
        stated therein or necessary to make the statements therein not misleading,
        in
        reliance upon and in conformity with written information furnished to Pubco
        by
        the Placement Agent or any such controlling persons specifically for use
        in the
        Memorandum, (B) any violations by the Placement Agent or such controlling
        persons of the Act or state securities laws which does not result from a
        violation thereof by Pubco or any of its affiliates, or (C) the gross
        negligence, willful misconduct, or bad faith of the Placement Agent or the
        party
        claiming a right to indemnification. In addition to the foregoing agreement
        to
        indemnify and reimburse, each of Pubco and VirtualScopics will indemnify
        and
        hold harmless each Indemnitee against any and all losses, claims, damages,
        liabilities or expenses whatsoever (or actions or proceedings or investigations
        in respect thereof), joint or several (which shall for all purposes of this
        Agreement, include, but not be limited to, all reasonable costs of defense
        and
        investigation and all reasonable attorneys’ fees, including appeals) to which
        any Indemnitee may become subject insofar as such costs, expenses, losses,
        claims, damages or liabilities arise out of or are based upon the claim of
        any
        person or entity that he or it is entitled to broker’s or finder’s fees from any
        Indemnitee in connection with the Offering, other than fees due to the Placement
        Agent and its selected dealers and agents and Verus International Group.
        

       

      
        
          
          

        

        
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      (b)    The
        Placement Agent will indemnify and hold harmless each of VirtualScopics and
        Pubco, its officers, directors, agents, employees and each person, if any,
        who
        controls Pubco or VirtualScopics within the meaning of the Act against, and
        pay
        or reimburse any such person for, any and all losses, claims, damages,
        liabilities or expenses whatsoever (or actions, proceedings or investigations
        in
        respect thereof) joint or several (which shall for all purposes of this
        Agreement, include, but not be limited to, all reasonable costs of defense
        and
        investigation and all reasonable attorneys’ fees, including appeals) to which
        Pubco, VirtualScopics or any such person may become subject under the Act
        or
        otherwise, whether such losses, claims, damages, liabilities or expenses
        shall
        result from any claim of Pubco or VirtualScopics, any of their respective
        officers, directors, agents, employees, any person who controls Pubco within
        the
        meaning of the Act or any third party, insofar as such losses, claims, damages
        or liabilities are based upon (A) any untrue statement or alleged untrue
        statement of any material fact contained in the Memorandum but only with
        reference to information contained in the Memorandum relating to the Placement
        Agent furnished in writing to Pubco by the Placement Agent or any controlling
        person; or (B) Placement Agent’s violation of the Act or state securities laws
        which did not result from a violation thereof by Pubco. 

       

      (c)    Promptly
        after receipt by an indemnified party under this Section 10 of notice of
        the
        commencement of any action, claim, proceeding or investigation (the
“Action”),
        such
        indemnified party, if a claim in respect thereof is to be made against the
        indemnified party under this Section 10, will notify the indemnifying party
        of
        the commencement thereof, but the omission to so notify the indemnifying
        party
        will not relieve it from any liability which it may have to any indemnified
        party under this Section 10 unless the indemnifying party has been substantially
        prejudiced by such omission. The indemnifying party will have the right,
        at its
        option, to assume the defense thereof subject to the provisions herein stated,
        with counsel reasonably satisfactory to such indemnified party, which consent
        shall not be unreasonably withheld. The indemnified party will have the right
        to
        employ separate counsel in any such Action and to participate in the defense
        thereof, but the fees and expenses of such counsel will not be at the expense
        of
        the indemnifying party if the indemnifying party has assumed the defense
        of the
        Action with counsel reasonably satisfactory to the indemnified party,
provided,
        however,
        that if
        the indemnified party shall be requested by the indemnifying party to
        participate in the defense thereof or shall have concluded in good faith
        and
        specifically notified the indemnifying party either that there may be specific
        defenses available to it which are different from or additional to those
        available to the indemnifying party or that such Action involves or could
        have a
        material adverse effect upon it with respect to matters beyond the scope
        of the
        indemnity agreements contained in this Agreement, then the counsel representing
        the indemnified party, to the extent made necessary by such defenses, shall
        have
        the right to direct such defenses of such Action on its behalf and in such
        case
        the reasonable fees and expenses of such counsel in connection with any such
        participation or defenses shall be paid by the indemnifying party. No settlement
        of any Action against an indemnified party will be made without the consent
        of
        the indemnified party, which consent shall not be unreasonably withheld or
        delayed in light of all factors of importance to such party, unless such
        settlement includes an unconditional release of such indemnified party from
        all
        liability arising or that may arise out of such Action. No indemnified party
        shall settle any Action for which indemnification may be sought by him or
        it
        hereunder without the prior written consent of the indemnifying
        party.

       

      
        
          
          

        

        
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      11.    Contribution.
        To
        provide for just and equitable contribution, if: (i) an indemnified party
        makes
        a claim for indemnification pursuant to Section 10 hereof and it is finally
        determined, by a judgment, order or decree not subject to further appeal
        that
        such claims for indemnification may not be enforced, even though this Agree-ment
        expressly provides for indemnification in such case; or (ii) any
        indemnified or indemnifying party seeks contribution under the Act, the Exchange
        Act, or otherwise, then each indemnifying party shall contribute to such
        amount
        paid or payable by such indemnified party in such proportion as is appropriate
        to reflect not only such relative benefits but also the relative fault of
        Pubco
        and VirtualScopics on the one hand and the Placement Agent on the other in
        connection with the statements or omissions which resulted in such losses,
        claims, damages, liabilities or expenses (or actions in respect thereof),
        as
        well as any other relevant equitable considerations. The relative benefits
        received by Pubco and VirtualScopics on the one hand and the Placement Agent
        on
        the other shall be deemed to be in the same proportion as the total net proceeds
        from the Offering (before deducting expenses) received by Pubco bear to the
        total compensation (with respect to stock compensation, the value of such
        stock
        shall be determined by reference to the value of the stock at the time the
        contribution payment is determined) received by the Placement Agent. The
        relative fault, in the case of an untrue statement, alleged untrue statement,
        omission or alleged omission will be determined by, among other things, whether
        such statement, alleged statement, omission or alleged omission relates to
        information supplied by Pubco or VirtualScopics or by the Placement Agent,
        and
        the parties’ relative intent, knowledge, access to information and opportunity
        to correct or prevent such statement, alleged statement, omission or alleged
        omission. Pubco, VirtualScopics and the Placement Agent agree that it would
        be
        unjust and inequitable if the respective contribution obligations of Pubco
        and
        VirtualScopics on the one hand and the Placement Agent on the other hand
        were
        determined by pro rata
        allocation of the aggregate losses, liabilities, claims, damages and expenses
        or
        by any other method or allocation that does not reflect the equitable
        considerations referred to in this Section 11. No person guilty of a fraudulent
        misrepresentation (within the meaning of Section 10(f) of the Act) will be
        entitled to contribution from any person who is not guilty of such fraudulent
        misrepresentation. For purposes of this Section 11, each person, if any,
        who
        controls the Placement Agent within the meaning of the Act will have the
        same
        rights to contribution as the Placement Agent, and each person, if any, who
        controls Pubco or VirtualScopics within the meaning of the Act will have
        the
        same rights to contribution as Pubco or VirtualScopics, subject in each case
        to
        the provisions of this Section 11. Anything in this Section 11 to the contrary
        notwithstanding, no party will be liable for contribution with respect to
        the
        settlement of any claim or action effected without its written consent. This
        Section 11 is intended to supersede, to the extent permitted by law, any
        right
        to contribution under the Act, the Exchange Act or otherwise
        available.

       

      12.    Termination.

       

      (a)    The
        engagement of the Placement Agent may be terminated by the Placement Agent
        at
        any time prior to the expiration of the Offering Period (such date of
        termination of the engagement of the Placement Agent or the date of termination
        of the engagement of the Placement Agent under Section 12(b) below, as the
        case
        may be, the “Expiration
        Date”)
        in the
        event that: (i) any of the representations or warranties of Pubco
        or
        VirtualScopics contained herein or in the Memorandum shall prove to have
        been
        false or misleading in any material respect when made or deemed made;
        (ii) Pubco or VirtualScopics shall have failed to perform any of its
        material obligations hereunder; or (iii) the Placement Agent shall
        determine in good faith that it is reasonably likely that any of the conditions
        to Closing set forth herein will not or cannot be satisfied (other than
        Placement Agent’s inability to sell at least $3 million of Units). In the event
        of any such termination occasioned by or arising out of or in connection
        with
        any breach or failure hereunder on the part of Pubco or VirtualScopics described
        in clauses (i), (ii), or (iii) above, the Placement Agent shall be entitled
        to
        receive from Pubco and VirtualScopics, jointly and severally, in addition
        to
        other rights and remedies it may have hereunder, at law or otherwise, an
        amount
        equal to the sum of: (A) all unpaid Placement Agent Fees earned through the
        Expiration Date based upon the amount of funds then in escrow and (B) the
        full
        amount of the unpaid Expense Reimbursement. 

      
        
          
          

        

        
          -
            16
            -

          
            

          

        

        
          
          

        

      

      (b)    The
        engagement of the Placement Agent may be terminated by Pubco or VirtualScopics
        at any time prior to the Expiration Date in the event: (i) any of
        the
        representations or warranties of the Placement Agent contained herein shall
        prove to have been false or misleading in any material respect when made
        or
        deemed made; (ii) the Placement Agent shall have failed to perform
        any of
        its material obligations hereunder; or (iii) of the gross negligence, bad
        faith,
        or willful misconduct of the Placement Agent or its agents or
        representatives.

      

      (c)    Upon
        any
        such termination, the Escrow Agent will, at the request of the Placement
        Agent,
        cause all monies received in respect of subscriptions for Units then in escrow
        to be promptly returned to such subscribers without interest, penalty, expense
        or deduction.

       

      13.    Survival.
        The
        provisions of Sections 9, 10, 11, 12, 13, 14, 15, 16, 17 and 18 shall survive
        any termination hereunder.

       

      14.    Notices.
        All
        communications hereunder will be in writing and, except as otherwise expressly
        provided herein or after notice by one party to the other of a change of
        address, if sent to the Placement Agent, will be mailed, delivered or telefaxed
        and confirmed to Brookshire Securities Corporation, 8 West Las Olas Blvd.,
        Ft.
        Lauderdale Florida 33301 telefax number (954) 714-9131 with a copy to Peckar
        & Abramson, PC, 70 Grand Avenue, River Edge, New Jersey 07661, Attn: Stephen
        P. Katz, Esq., telefax number (201) 343-6306, and if sent to Pubco, will
        be
        mailed, delivered or telefaxed and confirmed to the address set forth on
        the
        signature paged to this Agreement, with a copy to Greenberg Traurig, LLP,
        MetLife
        Building, 200 Park Avenue, New York, NY 10166 Attn: Spencer G. Feldman, Esq.,
        telefax
        number (212) 801-6400, and if sent to VirtualScopics, will be mailed, delivered
        or telefaxed and confirmed to 350 Linden Oaks, Rochester, New York 14625
        Attn: Robert
        Klimasewski, telefax number (585) 218-7350, with a copy to Woods Oviatt Gilman
        LLP, 700 Crossroads Building, 2 State Street, Rochester, NY 14614, Attn:
        Gordon
        Forth, Esq., telefax number (585) 987-2901.

      

      15.    Governing
        Law, Jurisdiction.
        This
        Agreement shall be deemed to have been made and delivered in Fort Lauderdale,
        Florida and shall be governed as to validity, interpretation, construction,
        effect and in all other respects by the internal laws of the State of Florida
        without regard to principles of conflicts of law thereof.  

       

      16.    Miscellaneous.
        No
        provision of this Agreement may be changed or terminated except by a writing
        signed by the party or parties to be charged therewith. Unless expressly
        so
        provided, no party to this Agreement will be liable for the performance of
        any
        other party’s obligations hereunder. Either party hereto may waive compliance by
        the other with any of the terms, provisions and conditions set forth herein;
        provided, however, that any such waiver shall be in writing specifically
        setting
        forth those provisions waived thereby. No such waiver shall be deemed to
        constitute or imply waiver of any other term, provision or condition of this
        Agreement.

       

      
        
          
          

        

        
          -
            17
            -

          
            

          

        

        
          
          

        

      

      17.    Entire
        Agreement.
        This
        Agreement together with any other agreement referred to herein supersedes
        all
        prior agreements between the parties with respect to the Offering and the
        subject matter hereof.

       

      18.    Counterparts.
        This
        Agreement may be executed in multiple counterparts, each of which may be
        executed by less than all of the parties and shall be deemed to be an original
        instrument which shall be enforceable against the parties actually executing
        such counterparts and all of which together shall constitute one and the
        same
        instrument.

       

      *****

       

      
         

         

        
          
          

        

        
          -
            18
            -

          
            

          

        

        
          
          

        

      

      If
        the
        foregoing is in accordance with your understanding of the agreement, kindly
        sign
        and return this Agreement, whereupon it will become a binding agreement between
        Pubco and the Placement Agent in accordance with its terms.

       

       

      VIRTUALSCOPICS,
        LLC

      

      

      

      By: 
         /s/ Molly Henderson

      Name:
        Molly Henderson

      Title:
        CFO

      

      

      Accepted
        and agreed to this

       

      3 day
        of October, 2005

       

      BROOKSHIRE
        SECURITIES CORPORATION

       

      By: 
        /s/ Timothy B. Ruggiero

      Name:
        Timothy B. Ruggiero

      Title:
        President

       

      

      By
        its
        execution of this Agreement on or before the Closing, Pubco hereby acknowledges,
        agrees and confirms that it will be deemed to be a party to this Agreement
        and
        shall have all of the related rights and obligations inuring to it as if
        Pubco
        had executed this Agreement on the original date of the Agreement. Pubco
        further
        ratifies and agrees to be bound by all of the terms, provisions and conditions
        contained in this Agreement.

      

      Pubco
        hereby acknowledges, agrees and confirms that, at the Closing, it shall execute
        and deliver to the Company and the Placement Agent a counterpart signature
        page
        of this Agreement, at which time it shall become bound by all of the terms,
        provisions and conditions hereof as if it was an original party
        hereto.

      

      PUBCO

      

      ConsultAmerica

      Name
        of
        Pubco

      

      By:
        /s/ Edward A. Sundberg

      Name:
        Edward A. Sundberg

      Title:
        President

      
        
          
          

        

        
          -
            19
            -

          
            

          

        

        
          
          

        

      

      Exhibit
        A

      Form
        of
        Opinion of Pubco Counsel

      

      1.    The
        “Company”
        (for
        purposes of the opinion, the Company means ___________
        after
        giving retroactive effect to the Offering and the Share Exchange)
        has
        been duly organized as a corporation and is validly existing in good standing
        under the laws of the jurisdiction of its incorporation, has full corporate
        power and authority to own, lease and operate its properties and conduct
        its
        business as described in its SEC filings and is duly qualified as a foreign
        corporation for the transaction of business and is in good standing in each
        jurisdiction where the conduct of its business makes such qualification
        necessary, except where the failure to so qualify would not have a material
        adverse effect upon the business (as currently conducted), financial condition
        or results of operation of the Company (a “Material Adverse
        Effect”).

      

      2.    The
        Company has the authorized and issued capital stock as set forth in the
        Memorandum. 

      

      3.    The
        (i)
        Units and (ii) the Placement Agent Warrants and the shares of Common Stock
        issuable upon exercise of the Warrants and the Placement Agent Warrants have
        been duly authorized for issuance by all necessary corporate action on the
        part
        of the Company; and the Units, the Placement Agent Warrants and the shares
        of
        Common Stock issuable upon exercise of the Warrants and the Placement Agent
        Warrants, when issued, sold and delivered against payment therefor in accordance
        with the provisions of the Warrants and the Placement Agent Warrants, as
        applicable, will be duly and validly issued, fully paid and
        non-assessable.
        The
        issuance of the Units, the Placement Agent Stock and the shares of Common
        Stock
        issuable upon exercise of the Warrants and the Placement Agent Warrants are
        not
        subject to any statutory or, to our knowledge, contractual or other preemptive
        rights. A sufficient number of authorized but unissued shares of Common Stock
        have been reserved for issuance upon exercise of the Warrants and the Placement
        Agent Warrants.

      

      4.    The
        execution and delivery by the Company of the Transaction Documents (this
        term
        shall include, without limitation, the Placement Agency Agreement, Subscription
        Agreements, Warrants, Placement Agent Warrants and the Share Exchange Agreement)
        and the consummation by the Company of the transactions contemplated thereby
        have been duly authorized by all necessary corporate action (including
        shareholder approval with respect to the Share Exchange Agreement) on the
        part
        of the Company, and the Transaction Documents have been duly executed and
        delivered by the Company. Each of the Transaction Documents constitutes the
        valid and binding obligation of the Company, enforceable against the Company
        in
        accordance with its terms.

      

      5.    The
        execution and delivery by the Company of the Transaction Documents and the
        consummation by the Company of the transactions contemplated thereby will
        not
        (a) violate the provisions of any U.S. Federal or state (limited to
        DE and
        NY) law, rule or regulation applicable to the Company or the Delaware General
        Corporation Law; (b) violate the provisions of the Company’s Certificate of
        Incorporation or By-laws, each as amended to date; (c) violate any
        judgment, decree, order or award of any court, governmental body or arbitrator
        specifically naming the Company of which we are aware; or (d) result
        in the
        breach or termination of any material term or provision of any agreement
        to
        which the Company is a party of which we are aware. 

      
        
          
          

        

        
          -
            20
            -

          
            

          

        

        
          
          

        

      

      6.    Assuming
        that the Units were sold only to “accredited investors” (as defined in Rule 501
        of Regulation D) and the Placement Agent complied with Regulation D, such
        sales
        were made in conformity with the requirements of Section 4(2) of the Act
        and
        Regulation D, and with the requirements of all other Regulations currently
        in
        effect relating to “private offerings” of the type made by the
        Company.

      

      7.    To
        our
        knowledge, there is no action, proceeding or litigation pending or threatened
        against the Company before any court, governmental or administrative agency
        or
        body.

      

      8.    No
        consent, approval or authorization of, or other action by, and no notice
        to or
        filing with, any United States Federal or state (limited to DE and NY)
        governmental authority on the part of the Company is required in connection
        with
        the valid execution and delivery of the Transaction Documents and the
        consummation by the Company of the transactions contemplated thereunder,
        except
        for (i) the filing of a Form D that may be filed with the Securities
        and
        Exchange Commission, (ii) any filings under the securities laws of
        the
        various jurisdictions in which the Units and the Placement Agent Warrants
        are
        being offered and sold by the Company (iii) the registration required
        by
        the registration rights provisions contained in the subscription document
        and
        (iv) any filings relating to public disclosure of the transactions
        contemplated by the Transaction Documents. 

      

      9.    We
        have
        participated in the preparation of the Memorandum and in conferences with
        officers and other representatives of the Company and VirtualScopics, at
        which
        such conferences the contents of the Memorandum and related matters were
        discussed, and although we have not undertaken to determine independently,
        and
        do not assume any responsibility for, the accuracy or completeness of the
        statements contained in the Memorandum, based upon those conferences and
        upon
        our participation in the preparation of the Memorandum, and any amendment
        or
        supplement thereto (other than the historical and projected financial
        statements, including supporting schedules and other financial and statistical
        information derived therefrom), the Memorandum, as of its date, does not
        contain
        any untrue statement of a material fact or omit to state a material fact
        required to be stated therein or necessary to make the statements therein,
        in
        light of the circumstances under which they were made, not misleading with
        respect to the Company (without giving effect to the Offering and the Exchange
        Offer); and with respect to the contents of the Memorandum relating to
        VirtualScopics, we offer no opinion and refer to the separate opinion rendered
        by Woods
        Oviatt Gilman LLP,
        counsel
        to VirtualScopics.

      
        
          
          

        

        
          -
            21
            -

          
            

          

        

        
          
          

        

      

      EXHIBIT
        B

      FORM
        OF
        OPINION OF VIRTUALSCOPICS

      

      1.    The
        Company is a limited liability company duly organized, validly existing and
        in
        good standing under the laws of the State of New York and has all requisite
        corporate power and authority to carry on its business, to own and hold its
        properties owned and leased, to enter into the Placement Agent Agreement
        and to
        carry out the provisions of such agreement. 

      

      2.    The
        Placement Agent Agreement has been duly executed and delivered by the Company
        and is the legal, valid and binding obligation of the Company enforceable
        against the Company in accordance with its terms, except (a) as such enforcement
        is limited by bankruptcy, reorganization, insolvency and other similar laws
        affecting the enforcement of creditors’ rights generally and (b) no opinion is
        expressed as to the availability of specific performance or other equitable
        remedies or the enforceability of indemnification or contribution obligations
        against securities laws claims.

      

      3.    The
        execution, delivery and performance by the Company of the Placement Agent
        Agreement and the consummation by the Company of the transactions contemplated
        by the Placement Agent Agreement will not (a) violate or contravene in any
        material respect any provision of the Company’s Articles of Organization,
        operating agreement or other constituent documents, as currently in effect;
        (b)
        violate the provisions of any U.S. Federal or state law, rule or regulation
        applicable to the Company or the New York Limited Liability Company Law;
        (c)
        violate any judgment, decree, order or award of any court, governmental body
        or
        arbitrator specifically naming the Company of which we are aware; or (d)
        result
        in the breach or termination of any material term or provision of any agreement
        to which the Company is a party of which we are aware.

      

      4.    No
        consent, approval or authorization of, or other action by, and no notice
        to or
        filing with, any United States Federal or governmental authority or the State
        of
        New York on the part of the Company is required in connection with the valid
        execution and delivery of the Placement Agent Agreement and the Share Exchange
        Agreement and the consummation by the Company of the transactions contemplated
        thereunder. 

      

      5.    To
        our
        knowledge, there is no action, proceeding or litigation pending or threatened
        against the Company before any court, governmental or administrative agency
        or
        body.

      

      6.    We
        have
        participated in conferences with officers and other representatives of the
        Company, at which conferences the contents of the Memorandum and related
        matters
        were discussed. Although we are not passing upon, and do not assume any
        responsibility for, the accuracy, completeness or fairness of the statements
        contained in the Memorandum and have made no independent check or verification
        thereof, based upon those conferences and upon our participation in the
        preparation of the Memorandum, nothing has come to our attention which would
        lead us to believe that the Memorandum, as of its date (except for historical
        and projected financial statements, including supporting schedules, and other
        financial and statistical information contained in the Memorandum, as to
        which
        we express no view), contained or contains any untrue statement of a material
        fact or omitted or omits to state a material fact required to be stated therein
        or necessary to make the statements contained therein, in light of the
        circumstances under which they were made, not misleading. ); and with respect
        to
        the contents of the Memorandum relating to Pubco, we offer no opinion and
        refer
        to the separate opinion rendered by Greenberg
        & Traurig, LLP, counsel
        to Pubco.

      
        
          
          

        

        
          -
            22
            -EXHIBIT
      10.6

    

    Confidential
      treatment has been requested for portions of this Exhibit. The copy filed
      herewith omits the information subject to the confidentiality request. Omissions
      are designated as (******). A complete version of this Exhibit has been filed
      separately with the Securities and Exchange Commission.

    

    

    CLINICAL
      IMAGING DEVELOPMENT AND SERVICES AGREEMENT

    

    This
      Agreement ("Agreement") is by and between VirtualScopics, LLC, a New York
      limited liability company with its principal place of business located at 350
      Linden Oaks, Rochester New York 14625 ("VirtualScopics") and Pfizer
      Inc, 235
      East
      42nd Street, New York, New York 10017-5755, and its Affiliates
      ("Pfizer").

    

    Whereas,
      Pfizer Inc and VirtualScopics were engaged in a previous agreement for Clinical
      Imaging and Services with an effective date of June 26th,
      2002;
      and

    

    Whereas,
      Pfizer Inc and VirtualScopics wish to continue to work together in the further
      development and validation of image analysis software and image-based biomarkers
      for use in the development of information for submission to regulatory agencies
      in support of applications for drug approvals and to encourage the wide
      acceptance of image-based biomarkers by regulatory agencies and the medical
      industry; and

    

    Now
      therefore, in consideration of the foregoing and the mutual covenants contained
      herein, the parties hereby agree as follows:

    

    1.    DEFINITIONS

    

    "Affiliate"
      means
      any
      corporation or other business entity that directly or indirectly controls,
      is
      controlled by, or is under common control with Pfizer Inc.

    

    "Collaborator"
      means
      third parties such as universities, companies or individual
      consultants
      with
      whom Pfizer has contractual relationships.

    

    "CRO
      Toolbox" means
      any
      Toolbox identified in the POP as being developed by VirtualScopics for use
      by
      VirtualScopics or a VirtualScopics partner in the provision of clinical research
      services, including the provision of Image Analysis Service to
      Pfizer.

    

    "Development
      Plan" means
      the
      overall plan for the conduct of Toolbox Development Services to be carried
      out
      by VirtualScopics each year.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    "Effective
      Date" means
      July 26, 2005.

    

    "Enhancements"
      means
      any
      and all changes or additions to the Software and Toolboxes, including without
      limitation any fixes, error corrections, improvements and upgrades
      thereof.

    

    "Image
      Analysis Protocols" means
      the
      protocols describing the steps and methodologies
      required
      to operate the Software and to perform specific image processing and analysis
      procedures, including Image Based Biomarkers.

    

    "Image
      Analysis Services" means
      the
      provision of clinical research services using Toolboxes including, the set
      up of
      imaging sites and the processing and analysis of images from preclinical or
      clinical studies.

    

    "Image
      Based Biomarkers" means
      the
      methods of assessing a quantifiable biological characteristic, whether
      patentable or not.

    

    "Maintenance"
      means
      the
      maintenance to be provided by VirtualScopics as described in Exhibit
      A.

    

    "NonVS-based
      Pfizer Toolbox" means
      any
      Pfizer Toolbox identified in the POP as being based
      upon
      Pfizer's or its Collaborator's Software.

    

    "Pfizer
      Toolbox" means
      any
      Toolbox identified in the POP as being developed by VirtualScopics for Pfizer's
      own research and development use, to be operated routinely at Pfizer sites,
      or
      at Pfizer's Collaborators' sites.

    

    "Project
      Deliverables" means
      the
      description, features, functions and specifications for the
      deliverables, as set forth in each POP.

    

    "Project
      Operating Plan" or "POP" means
      the
      detailed plans - with staged deliverables, and
      anticipated expenses - for each Toolbox Development Services project to be
      carried out under the Development Plan.

    

    "Release
      Event" means:
      (i) the filing by or against VirtualScopics of insolvency, receivership or
      bankruptcy proceedings, or any other proceedings for the settlement of
      VirtualScopics debts, or (ii) VirtualScopics voluntary or involuntary
      liquidation or dissolution, or (iii) VirtualScopics ceases to do business or
      an
      inability to meet its obligations and commitments under this Agreement, or
      (iv)
      VirtualScopics is unwilling or unable (except under circumstances beyond
      VirtualScopics' control and as long as such circumstances do not continue for
      a
      period longer than sixty days), to provide Image Analysis Services with respect
      to CRO Toolboxes or VS-Based Toolboxes at the rates listed in Exhibit B, and
      within reasonable planning and execution timeframes as outlined in a
      POP.

    

    "Site
      Operating Guides" means
      the
      guidelines and protocols aimed at calibrating and operating
      various
      instrument modalities to generate images of appropriate quality to allow further
      image processing and analysis.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    "Software"
      means
      novel algorithms and software code both in human and machine
      readable
      form and
      documentation needed to install, train and operate such code.

    

    "Toolbox"
      means
      a
      module consisting of Software, Image Analysis Protocols and Site
      Operating Guides for the analysis of one or more Image Based
      Biomarkers.

    

    "Toolbox
      Platform" means
      the
      VirtualScopics operating system software, middleware, and
      other
      platform systems necessary to produce and operate Toolboxes, as further
      described in Exhibit A.

    

    "Toolbox
      Development Services" means
      activities including the design, development, testing, installation, end-user
      training of Toolboxes.

    

    "VS-Based
      Pfizer Toolbox" means
      any
      Pfizer Toolbox identified in the POP as being based
      upon
      VirtualScopics' Toolbox Platform or Software.

    

    2.    DEVELOPMENT
      PLAN & PROJECT OPERATING PLANS

    

    2.1    Development
      Plan. Pfizer
      and VirtualScopics will collaborate in the design and implementation of the
      Development Plan. The Development Plan will include objectives, projects and
      timelines for the following 12 months. The initial Development Plan will be
      prepared by the Joint Steering Committee ("JSC") within 60 days of the Effective
      Date. The JSC will update the Development Plan on a semi-annual basis to
      reflect, amongst other matters, changes in Pfizer's research and development
      priorities.

    

    2.2    Diligent
      Efforts. VirtualScopics
      will use diligent efforts to complete each approved POP
      implemented under the Development Plan. VirtualScopics will assign appropriately
      project managers with appropriate skills, experience and qualifications to
      each
      POP. Pfizer will assign a point person for each project for regular
      communication with Virtualscopics project managers.

    

    2.3    Scientific
      Direction. Through
      the JSC, Pfizer will provide strategic scientific direction to
      VirtualScopics at least twice a year, and will facilitate exposure of
      VirtualScopics' capabilities to Pfizer's research and development teams in
      order
      to generate a pipeline of specific projects in line with the Development
      Plan.

    

    2.4    POPs.
      Pfizer
      provides no commitment under this Agreement to fund a minimum number of POPs
      during the term of this Agreement. All POPs are subject to Pfizer's prior
      written approval. VirtualScopics must not commence work under a POP until it
      receives written approval from Pfizer's chair of the JSC, or his Pfizer
      designee.

    

    2.5    Termination
      of POPs. Pfizer
      may terminate any POP at anytime, for any reason by giving VirtualScopics
      written notice. Upon receipt of the notice, VirtualScopics will stop all ongoing
      activities under the POP, and will account to Pfizer for all fees incurred
      up to
      that point at the rates listed in Exhibit B, as well as any expenses incurred
      as
      a result of stopping the activities, provided such expenses were pre-approved
      by
      Pfizer in writing. Pfizer's only obligation with respect to such POP will be
      to
      pay for these fees and such pre-approved expenses.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    2.6    Reporting.
      VirtualScopics
      will maintain a running list of all approved and proposed POPs, incurred and
      anticipated expenses and will provide quarterly updates to the JSC, or more
      frequently as needed and as reasonably requested by Pfizer. VirtualScopics
      will
      report progress under each POP at a frequency and through the means described
      in
      the specific project POPs. VirtualScopics will report to the JSC on the overall
      progress against the Development Plan in writing on a quarterly
      basis.

    

    3.    IMAGE
      ANALYSIS SERVICES.

    

    3.1    From
      time
      to time, Pfizer may engage VirtualScopics to provide Image Analysis Services.
      The Image Analysis Services will not be performed under the terms of this
      Agreement, but separate agreements to be entered into by the parties. But,
      the
      fees for such services will be determined in accordance with the fee schedule
      in
      Exhibit B.

    

    3.2    In
      return
      for Pfizer's support and funding of the development of Toolboxes, VirtualScopics
      agrees that for Image Analysis Services using CRO Toolboxes it will provide
      Pfizer with certain discounts as outlined in the fee schedule in Exhibit
      B.

    

    4.    SUPPLY
      OF EXPERT PERSONNEL

    

    4.1    FTEs.
      VirtualScopics
      will supply to Pfizer the services of (*****)
      ("FTE")
      to perform the following ("FTE Services") at Pfizer sites designated by Pfizer
      from time to time, and at the rates listed in Exhibit B:

    

    (a)    install
      the Software for Pfizer Toolboxes at various Pfizer sites and train Pfizer
      employees in the use of the Software and the Pfizer Toolbox;

    

    (b)    develop
      Enhancements to the Pfizer Toolboxes at Pfizer's direction; and

    

    (c)    support,
      at Pfizer's direction, Pfizer projects -including projects involving third
      parties - outside of the Development Plan related to image analysis and
      development of image analysis software.

    

    (d)    support,
      at Pfizer's direction, the transfer of the Pfizer Toolboxes and Toolbox
Platforms
      to Pfizer or to third parties immediately upon the provision of
      documentary
      evidence
      of one of a Release Event. Such provision shall survive termination for reasons
      outlined in section 13.4.

    
      ______________________

      ***** Certain
        information on this page has been omitted and filed separately with the
        Securities and Exchange Commission. Confidential treatment has been requested
        with respect to the omitted portions.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    4.2    Skills.
      VirtualScopics
      will ensure that the FTEs will have the proper skill level and type
      of
      experience to complete the FTE Services above in a good and workmanlike
      manner.

    

    4.3    Equipment.
      Except
      as
      otherwise agreed by the parties in writing, VirtualScopics shall
      furnish
      or cause to be furnished at its sole expense all required labor (including
      any
      subcontractors), tools, equipment, material, parts, transportation and
      supervision necessary to perform the FTE Services.

    

    4.4    Removal.
      If
      at any
      time during the performance of the FTE Services under this Agreement, Pfizer
      should be dissatisfied with the performance of any personnel assigned for
      reasons of unprofessional, illegal conduct, or inability to adequately perform
      to Pfizer's standards or expectations, Pfizer may demand the immediate removal
      and/or replacement of that person. If Pfizer requests replacement,
      VirtualScopics shall use its best efforts to provide another qualified person
      acceptable to Pfizer within seven (7) business days.

    

    4.5    Reassignment.
      VirtualScopics
      will not change or reassign personnel initially assigned to
      perform
      the FTE Services without thirty (30) days' prior written notice to Pfizer.
      If a
      change or reassignment of personnel is required through circumstances beyond
      VirtualScopics' control, Pfizer will have the right, in Pfizer's sole
      discretion, either to approve new personnel to be assigned or to cancel any
      portion of the FTE Services to be performed. VirtualScopics shall ensure
      continuity of assignments in the event of any or all personnel
      changes.

    

    4.6    Background
      Checks. Pfizer
      may require that any FTE first pass a suitable pre-employment and
      background/reference check as specified and approved by Pfizer. The current
      required background check will be supplied on request. VirtualScopics shall
      cause all its employees to comply with Pfizer's Drug Free Policy, a copy of
      which will be supplied on request.

    

    4.7    Duties.
      VirtualScopics
      shall perform the FTE Services (a) in a good, workmanlike and efficient manner;
      (b) in accordance with applicable laws, regulations, codes, permits and
      licenses; (c) in accordance with all applicable policies, practices and
      procedures in place at the Pfizer site where FTE Services are being performed,
      including, but not limited to, procedures regarding security, safety and
      confidentiality; and (d) otherwise in accordance with the terms and conditions
      applicable to all contractors, suppliers and vendors of Pfizer.

    

    4.8    Relationship.
      VirtualScopics
      shall render the FTE Services as an independent contractor
      and
      acknowledges that VirtualScopics, its personnel, or employees are not employees
      of Pfizer. Accordingly, neither VirtualScopics nor its employees or personnel
      will (a) participate in Pfizer employee benefit plans nor receive any other
      compensation beyond that stated in Section 9.2, (b) have the power or authority
      to bind Pfizer or to assume or create any obligation or responsibility, express
      or implied, on Pfizer's part or in Pfizer's name, except as otherwise set forth
      in this Agreement, or (c) represent to any person or entity that VirtualScopics,
      its personnel or any employee of VirtualScopics has such power or authority.
      VirtualScopics shall remain solely liable for all aspects of the employment
      of
      such persons including, without limitation, recruitment, hiring, firing,
      training, promotion, compensation, all payroll taxes and other deductions and
      all premiums or payments made for workers' compensation coverage, unemployment
      benefits or any other payments required by law to be made by employers for
      or on
      behalf of employees.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    4.9    Injury
      & Damage.
      Any
      personal injury or property damage suffered by VirtualScopics
      or by
      VirtualScopics FTE in the course of carrying out the FTE Services will be
      VirtualScopics' sole responsibility, except to the extent such personal injury
      or property damage occurs on Pfizer's premises and is caused by Pfizer's
      negligence.

    

    4.10   Authorization.
      VirtualScopics
      represents and warrants that it and its personnel, and employees are authorized
      to perform the FTE Services and that neither it nor its personnel or employees
      will act in violation of any applicable immigration laws or regulations.
      VirtualScopics shall indemnify Pfizer against any and all claims, fines,
      penalties and/or attorneys' fees incurred by Pfizer for breach by the
      VirtualScopics of any immigrations laws or regulations and of this
      warranty.

    

    4.11   Intellectual
      Property. Except
      for intellectual property created by an FTE in performance of specific duties
      of
      VirtualScopics under a POP, any intellectual property created or contributed
      to
      by an FTE in performance of the FTE Services will belong to Pfizer, and
      VirtualScopics will promptly disclose any such intellectual property to Pfizer
      and irrevocably assigns over to Pfizer all right, title and interest in and
      to
      such intellectual property. VirtualScopics will execute such documents and
      take
      such other action at Pfizer's expense as may be necessary or appropriate to
      establish, register, record or otherwise document Pfizer's ownership therein
      in
      any country.

    

    4.12   Information.
      Except
      for information produced by an FTE in performance of specific duties of
      VirtualScopics under a POP, any information which an FTE obtains from Pfizer
      or
      produces in performance of the FTE Services will be Pfizer's Information for
      the
      purposes of Section 7. VirtualScopics is not given any right to use or disclose
      such information under this Agreement.

    

    5.    JOINT
      STEERING COMMITTEE

    

    5.1    Members.
      Pfizer
      and VirtualScopics will establish a Joint Steering Committee ("JSC") composed
      of
      at least three employees from each party. Pfizer and VirtualScopics may appoint
      its representatives at their sole discretion, and substitutes may be appointed
      at any time. The parties will each appoint one of its representatives to act
      as
      the co-chair of the JSC. The members initially will be:

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Pfizer
      appointees:
      (*****)

    

    VirtualScopics
      appointees:
      (*****)

    

    5.2    Duties.
      The
      JSC
      will be charged with:

    

    (a)    coordinating
      the parties activities hereunder;

    

    (b)    approving
      allocations and prioritizations of tasks between the parties in order to carry
      out the Development Plan;

    

    (c)    reviewing
      the status of, discussing and approving modifications to the Development
      Plan;

    

    (d)    encouraging
      and facilitating ongoing cooperation between the parties; and

    

    (e)    performing
      such other functions as appropriate to further the purpose of this
      Agreement.

    

    5.3    Meetings.
      The
      JSC
      will meet formally via phone, videoconference or in person twice a year,
      or
      more frequently as determined by the JSC, at a time and location agreed to
      by
      the
      parties.
      JSC meetings will be chaired by a Pfizer JSC member. Each party will bear its
      own expenses in connection with the meetings.

    

    5.4    Minutes.
      The
      JSC
      will keep accurate minutes of its deliberations and record all
      proposed
      decisions and actions recommended or taken. Drafts of the minutes will be
      delivered to all JSC members within five business days after each meeting.
      Each
      party will alternatively
      be responsible for the preparation and circulation of the draft minutes.
      Draft
      minutes
      shall be edited by the co-chairpersons and will be issued in final form only
      with their approval and agreement.

    

    6.    PROPRIETARY
      RIGHTS AND LICENSE GRANTS

    

    6.1    VS-Based
      Pfizer Toolboxes

    

    (a)    Ownership.
      VirtualScopics
      will own the VS-Based Pfizer Toolboxes and all intellectual
      property and materials in the VS-Based Pfizer Toolboxes created by
      VirtualScopics, its employees, consultants or contractors in performance of
      the
      relevant POPs.

    

    (b)    License.
      VirtualScopics
      grants to Pfizer a perpetual, fully paid-up, non-exclusive, worldwide license
      to
      use, reproduce and modify the VS-Based Pfizer Toolboxes for
      the
      purposes of Pfizer's research and development of pharmaceutical
      products.
      Pfizer
      may grant sublicenses to third parties for limited purpose of the third party
      performing research or development activities on behalf of Pfizer.

    ______________________

    ***** Certain
      information on this page has been omitted and filed separately with the
      Securities and Exchange Commission. Confidential treatment has been requested
      with respect to the omitted portions.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    6.2    NonVS-Based
      Pfizer Toolboxes. Pfizer
      will own the NonVS-Based Pfizer Toolboxes and
      all
      intellectual property and materials in the NonVS-Based Pfizer Toolboxes
      created
      by
      VirtualScopics, its employees, consultants or contractors in performance of
      POPs. VirtualScopics will, if deemed necessary or desirable by Pfizer, at
      Pfizer's cost, execute an assignment of rights to Pfizer with respect to such
      intellectual property.

    

    6.3    Toolbox
      Platform and CRO Toolboxes

    

    (a)    Ownership.
      VirtualScopics
      will retain ownership of the Toolbox Platform and CRO Toolboxes and all
      intellectual property in the Toolbox Platform and CRO Toolboxes
      created by VirtualScopics, its employees, consultants or contractors
      in
      performance of the Development Plan.

    

    (b)    License.
      Upon
      occurrence of a Release Event, VirtualScopics grants to Pfizer a perpetual,
      fully paid-up, non-exclusive, worldwide license to use, reproduce and modify
      the
      Toolbox Platform and CRO Toolboxes, including those developed under the Clinical
      Imaging and Services Agreement dated June 26th
      2002,
      and listed in Exhibit A, for the purposes of Pfizer's research, development
      and
      commercialization of pharmaceutical products. Pfizer may grant sublicenses
      to
      third parties for limited purpose of the third party performing research or
      development activities on behalf of Pfizer.

    

    6.4    Images
      and Data provided by Pfizer from Pfizer trials. Pfizer
      will retain ownership of all data and images provide by, or on behalf of, Pfizer
      to VirtualScopics under the Development Plan. VirtualScopics may only use such
      data and images for the purposes of performing the Development
      Plan.

    

    6.5    Enhancements.
      Pursuant
      to the terms of this Agreement, VirtualScopics shall provide to Pfizer all
      Enhancements to the Pfizer Toolboxes and CRO Toolboxes at the same time that
      VirtualScopics makes such Enhancements available to its other customers, and
      at
      a certain discounts, as listed in Exhibit B of its then commercial
      prices.

    

    6.6    Except
      as
      expressly provided in this Section 6 neither party is granted any right, title
      or
      interest
      in any intellectual property owned or controlled by the other
      party.

    

    7.    CONFIDENTIALITY

    

    7.1    For
      purposes of this Agreement, the term "Information" will mean:

    

    (a)    with
      respect to Pfizer, the clinical and other data, images provided by, or on behalf
      of, Pfizer to VirtualScopics under the Development Plan, the Development Plan,
      the NonVS-Based Pfizer Toolboxes, all written information which Pfizer delivers
      to VirtualScopics pursuant to this Agreement stamped or otherwise identified
      in
      writing on the document "Confidential" and all oral information which Pfizer
      declares to be confidential and confirms such declaration in writing within
      30
      days of disclosure; and

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (b)    with
      respect to the VirtualScopics, the Toolbox Platform, VS-Based Toolboxes and
      CRO
      Toolboxes, all written information which VirtualScopics delivers to Pfizer
      pursuant to this Agreement stamped or otherwise identified in writing on the
      document "Confidential" and all oral information which VirtualScopics declares
      to be confidential and confirms such declaration in writing within 30 days
      of
      disclosure.

    

    7.2    A
      party
      receiving Information ("Receiving Party) from the other party ("Disclosing
      Party")
      will maintain the Information in confidence with the same degree of care it
      holds
      its own
      confidential information. The Receiving Party will only use and disclose the
      Information for the purposes of performing its obligations or exercising its
      rights under this Agreement and, except as permitted under this Agreement,
      will
      not disclose the Information to any third party and will only disclose the
      Information to its officers and employees that need it for the purposes of
      performing its obligations or exercising its rights under this
      Agreement.

    

    7.3    The
      Receiving Party's obligation of nondisclosure and the limitations upon the
      right
      to use the Information will not apply to the extent that the Receiving Party
      can
      demonstrate that the Information:

    

    (a)    was
      in
      the possession of the Receiving Party prior to the time of disclosure;
      or

    

    (b)    is
      or
      becomes public knowledge through no fault or omission of Receiving Party;
      or

    

    (c)    is
      obtained by Receiving Party from a third party under no obligation of
      confidentiality to the Disclosing Party. All Information will be returned to
      the
      Receiving Party upon termination of this Agreement for any reason, except for
      one
      copy,
      which Disclosing Party may use for the sole purpose of determining
      its
      continuing confidentiality obligation to the Disclosing Party under this
      Agreement; or

    

    (d)    if
      the
      Receiving Party is requested or ordered to disclose the Information in
      connection with a legal or administrative proceeding, the Receiving Party will
      give the Disclosing Party prompt notice of such request. The Disclosing Party
      may seek an appropriate protective order or other remedy or waive compliance
      with the provisions of this Agreement or both. If the Disclosing Party seeks
      a
      protective order or other remedy, the Receiving Party will cooperate with the
      Disclosing Party. If the Disclosing Party fails to obtain a protective order
      or
waive
      compliance within the relevant provisions of this Agreement, the
      Receiving
      Party
      will disclose only that portion of Information which its legal counsel
      determines it is required to disclose.

    

    7.4    All
      confidentiality obligations of under this Agreement shall survive the
      termination of
      this
      Agreement for a period of five (5) years.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    8.    ACCEPTANCE.
      Pfizer
      may reject any deliverables under a POP if they do not meet the acceptance
      criteria set forth in the POP or the Development Plan. Pfizer has 30 days from
      receipt of the deliverables to reject them. If Pfizer rejects the deliverables
      and VirtualScopics is unable to remedy the problem within 30 days of being
      notified, Pfizer will not be required to pay to VirtualScopics any fees for
      that
      POP and may require the refund
      of
      any fees already paid for activities towards deliverables which have not met
      the
      acceptance criteria.

    

    9.    PAYMENTS.

    

    9.1    Project
      Operating Plans. The
      rates
      for VirtualScopics' performance of POPs are as listed in Exhibit B. Pfizer
      will
      pay VirtualScopics for the performance of approved POPs in accordance with
      the
      budget and timetable set out in the POP.

    

    9.2    FTEs.
      As
      full and complete compensation for satisfactory performance of the
      FTE
      Services, Pfizer shall pay VirtualScopics as specified in Exhibit
      B.

    

    9.3    All
      payments to be made under this Agreement will be due by Pfizer thirty (30)
      days
      after Pfizer's receipt and acceptance of a supporting invoice from
      VirtualScopics. Each invoice shall reference the relevant Pfizer purchase order
      number and be sent to Pfizer Inc, North American Shared Work Plan, P.O. Box
      341802, Bartlett, TN 38184-1802 (*****).

    

    10.    REPRESENTATIONS
      AND WARRANTIES. VirtualScopics
      and Pfizer each represents and warrants as follows:

    

    10.1    It
      is a
      corporation duly organized, validly existing and is in good standing under
      the
      laws of the State of Delaware in the case of Pfizer and the laws of New York
      in
      the case of VirtualScopics, is qualified to do business and is in good standing
      as a corporation in each jurisdiction in which the conduct of its business
      of
      the ownership of its properties requires such qualification and has all
      requisite power and authority, corporate or otherwise, to conduct its business
      as now being conducted, to own, lease and operate its properties and to execute,
      deliver and perform this Agreement.

    

    10.2    The
      execution, delivery and performance by it of this agreement have been duly
      authorized by all necessary corporate action and do not and will not (a) require
      any consent or approval of its stockholders, (b) violate any provision of any
      law, rule, regulations, order, writ, judgment, injunctions, decree,
      determination award presently in effect having applicability to it or any
      provision of its certificate of incorporation or by-laws or (c) result in a
      breach of or constitute a default under any material agreement, mortgage, lease,
      license, permit or other instrument or obligation to which it is a party or
      by
      which it or its properties may be bound or affected.

    

    10.3    This
      Agreement is a legal, valid and binding obligation enforceable in accordance
      with its terms and conditions, except as such enforceability may be limited
      by
      applicable bankruptcy, insolvency, moratorium, reorganization or similar laws,
      from time to time in effect, affecting creditor's rights generally.

    _________________

    *****
      Certain information on this page has been omitted and filed separately with
      the
      Securities and Exchange Commission. Confidential treatment has been requested
      with respect to the omitted portions.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    10.4    It
      is not
      under any obligation to any person, or entity, contractual or otherwise, that
      is
      conflicting or inconsistent in any respect with the terms of this Agreement
      or
      that would impede the diligent and complete fulfillment of its
      obligations.

    

    10.5    It
      has
      good and marketable title to or valid leases for, all of its properties, rights
      and assets
      necessary for the fulfillment of its obligations under this Agreement, subject
      to no
      claim of
      any third party other than the relevant lessors or licensors.

    

    11.    INDEMNIFICATION
      BY VIRTUALSCOPICS

    

    11.1    VirtualScopics
      will defend, indemnify and hold harmless Pfizer and its Affiliates, and its
      or
      their officers, directors, shareholders, employees, agents and representatives
      from and against any and all liability, damage, loss, cost or expense (including
      reasonable attorney's fees, costs and amounts paid in settlement) (collectively,
      "Losses") resulting from
      any
      third party claim made or suit brought against Pfizer or any such persons
      arising
      out of
      VirtualScopics breach of any of its representations or warranties in this
      Agreement.

    

    11.2    Upon
      receipt of notice of any such claim or suit, Pfizer will promptly notify
      VirtualScopics thereof and will permit VirtualScopics, at its cost, to handle
      and control such
      claim or suit. VirtualScopics will have the right to participate in the defense
      of such
      claim or
      suit at its own expense. Pfizer will afford VirtualScopics all reasonable
      assistance (at VirtualScopics' cost and expense) and will make no admission
      prejudicial to the defense of such claim or suit.

    

    11.3    The
      foregoing indemnification obligation will not apply to any claim or suit to
      the
      extent it arises directly out of Pfizer's negligence, willful misconduct or
      breach of any term, representation, warranty or covenant contained in this
      Agreement.

    

    12.    INDEMNIFICATION
      BY PFIZER

    

    12.1    Pfizer
      will defend, indemnify and hold harmless VirtualScopics and its Affiliates,
      and
      its or
      their
      officers, directors, shareholders, employees, agents and representatives from
      and
      against
      any and all liability, damage, loss, cost or expense (including reasonable
      attorney's fees, costs and amounts paid in settlement) (collectively, "Losses")
      resulting from any third party claim made or suit brought against VirtualScopics
      or any such persons arising out of Pfizer's breach of any of its
      representations, or warranties in this Agreement.

    

    12.2    Upon
      receipt of notice of any such claim or suit, VirtualScopics will promptly notify
      Pfizer
      thereof and will permit Pfizer, at its cost, to handle and control such claim
      or
      suit.
      Pfizer
      will have the right to participate in the defense of such claim or suit at
      its
      own expense. VirtualScopics will afford Pfizer all reasonable assistance (at
      Pfizer's cost and expense) and will make no admission prejudicial to the defense
      of such claim or suit.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    12.3    The
      foregoing indemnification obligation will not apply to any claim or suit to
      the
      extent it
      arises
      directly out of Contractor's negligence, willful misconduct or breach of any
      term,
      representation, warranty or covenant contained in this Agreement.

    

    13.   TERMINATION
      OF AGREEMENT

    

    13.1    This
      Agreement will end two years from the Effective Date. Unless this Agreement
      has
been
      terminated pursuant to the provisions of this section 13, Pfizer may elect
      to
      extend
      the Term
      of this Agreement for up to two additional years upon written notice to
      Virtualscopics at least thirty (30) days before the second, and if applicable,
      third anniversaries of the Effective Date.

    

    13.2    Pfizer
      may terminate this Agreement without cause by giving 30 days notice to
      VirtualScopics in writing. If Pfizer terminates this Agreement without cause,
      Pfizer's only obligation will be to pay VirtualScopics for the services
      performed under the Agreement up to the date of termination, at the rates
      provided in Exhibit B. All payments paid to the Contractor in excess of those
      due to it under this Section will be returned to Pfizer.

    

    13.3    If
      either
      party breaches this Agreement, the other may terminate it if the breaching
      party
      does not cure the breach within thirty (30) days of written notice of same.
      Termination shall be without prejudice to any rights which may have been accrued
      to either party before termination.

    

    13.4    On
      termination of this Agreement for any reason VirtualScopics will return, at
      Pfizer's expense, all of Pfizer's data, images and other materials. In addition
      the parties will return to each all copies of the other party's Information
      except for one copy which may be retained for the sole purpose of determining
      continuing obligations under Section 7.

    

    13.5    (*****)

    

    13.6    Termination
      of this Agreement for any reason shall be without prejudice tothe rights and
      obligations of the parties set forth in any Sections which provide by their
      terms performance by either party subsequent to termination or any other
      remedies which either party may otherwise have.

    

    14.   SOURCE
      CODE ESCROW

    

    14.1    Within
      sixty (60) days of the execution of this Agreement, the parties will execute
      an
      escrow agreement (the "Escrow Agreement"). The escrow fees will be paid by
      Pfizer.

    ___________________
*****
      Certain information on this page has been omitted and filed separately
      with the Securities and Exchange Commission. Confidential treatment has been
      requested with respect to the omitted portions.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    14.2    Within
      fifteen (15) days after execution of the Escrow Agreement, VirtualScopics shall
      deposit with a mutually agreed firm which provides software escrow services
      (the
      "Escrow Agent"). During the term and on a quarterly basis, VirtualScopics will
      deposit with the Escrow Agent any modifications or any new versions of these
      Toolboxes protocols and guides since the previous quarters deposit, if any.
      Within fifteen (15) days after
      the
      completion of any Toolbox, VirtualScopics shall deposit with the Escrow
      Agent,
      pursuant
      to the terms of the Escrow Agreement, the software source code for the Toolbox
      Platform, the CRO Toolboxes and the VS-Based Toolboxes in machine and human
      readable form as well as the related Image Analysis Protocols and Sites
      Operating Guides for the Toolboxes.

    

    14.3    The
      Escrow Agreement shall provide, among other things, for one complete copy of
      the
      materials and information in escrow to be released to Pfizer immediately upon
      the provision to the Escrow Agent of documentary evidence of one of a Release
      Event.

    

    14.4    On
      occurrence of a Release Event, VirtualScopics will provide Pfizer, at Pfizer's
      costs, reasonable support to facilitate the transfer and use of the Toolbox
      Platform, CRO Toolboxes, VS-Based Toolboxes, Image Analysis Protocols, Site
      Operating guides, and any other relevant documents and information, to Pfizer
      or
      to a third party designated by Pfizer.

    

    15.   MISCELLANEOUS

    

    15.1    During
      the Term, Virtualscopics shall notify Pfizer, under confidentiality, at least
      60
      days prior to any sale, merger, acquisition, or transfer of all or substantially
      all of the assets of Virtualscopics or to a third party ("transaction"), which
      notice shall include the identity of such third party.

    

    15.2    Governing
      Law. This
      Agreement shall be governed by and construed and enforced in accordance with
      the
      laws of the State of New York.

    

    15.3    Severability.
      If
      any
      provision or any portion of any provision of this Agreement is construed to
      be
      illegal, invalid or unenforceable, such provision or portion thereof shall
      be
      deemed
      stricken and deleted from this Agreement to the same extent and effect as if
      it
      were
      never incorporated herein, but all other provisions of this Agreement and the
      remaining portion of any provision that is construed to be illegal, invalid
      or
      unenforceable in part shall continue in full force and effect.

    

    15.4    Entire
      Agreement. This
      Agreement constitutes the entire agreement between the parties and supersedes
      all previous agreements, promises, representations, understandings and
      negotiations, whether written or oral, between the parties with respect to
      the
      subject matter hereof. Without limiting the foregoing in any way, this Agreement
      specifically supersedes any "standard" or "shrink wrap" agreement or license
      that may accompany the Licensed Products. Any modification and/or amendment
      to
      this Agreement must be in writing and executed by both parties.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    15.5    Survival.
      The
      provisions of Sections 3, 4, 5, 6, and14 shall survive termination or expiration
      of this Agreement.

    

    15.6    Successors
      and Assigns. All
      the
      terms and conditions of this Agreement are binding upon
      and
      inure to the benefit of the parties hereto, their successors, legal
      representatives
      and
      permitted assigns. Either party may assign this Agreement upon the prior written
      consent of the other party, such consent not to be unreasonably withheld. In
      addition, Pfizer may transfer, lease, assign or sublicense its entire right,
      interest and obligation hereunder to any Affiliate.

    

    15.7    No
      Agency Relationship Between the Parties. Neither
      party shall represent itself as the agent or legal representative of the other
      or as joint ventures for any purpose whatsoever, and neither shall have any
      right to create or assume any obligations of any kind, express or implied,
      for
      or on behalf of the other in any way whatsoever.

    

    15.8    Non-Waiver.
      A
      failure
      of either party to enforce at any time any term, provision or condition of
      this
      Agreement, or to exercise any right or option herein, shall in no way operate
      as
      a waiver thereof, nor shall any single or partial exercise preclude any other
      right or option herein; in no way whatsoever shall a waiver of any term,
      provision or condition of this Agreement be valid unless in writing, signed
      by
      the waiving party, and only to the extent set forth in such
      writing.

    

    15.9    Facilities
      Management and Data Loss Recovery. Nothing
      express or implied in this Agreement shall prevent Pfizer from allowing duly
      authorized agents of Pfizer to access and utilize any of the Toolboxes listed
      in
      Exhibit A to manage Pfizer's computer, LAN or other information technology
      facilities.

    

    15.10   Notices.
      Unless
      expressly stated otherwise, all notices required herein shall be given in
      writing and shall be delivered (and notice shall be deemed effective upon
      delivery) in person, by courier, or sent by certified United States mail,
      postage prepaid, return receipt requested, to the following
      address:

    

      
        	 	
                VirtualScopics

              	
                Pfizer,
                  Inc.

              
	 	
                350
                  Linden Oaks

              	
                50
                  Pequot Ave.

              
	 	
                Rochester,
                  New York 14625

              	
                New
                  London, CT 05320

              
	 	
                Attn:
                  Molly Henderson

              	
                Attn:
                  General Counsel, PGRD

              

      

    

     

    15.11   Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      deemed to be an original, and all of which together shall be deemed to be one
      and the same instrument.

    

    15.12   Publicity.
      Except
      as
      required by law, neither party may disclose the terms of neither this Agreement
      nor the work described in it. VirtualScopics agrees that it shall not issue
      any
      press release or make any other public announcement with respect to this
      Agreement without obtaining Pfizer's written authorization.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS THEREOF, VirtualScopics and Pfizer have caused this Agreement to be
      signed and delivered, all as of the date first hereinabove written.

     

    
      
        	
                VirtualScopics
                  LLC

              	 	
                Pfizer,
                  Inc.

              
	 	 	 	 	 
	By:	/s/ Molly
                Henderson	 	By:	/s/ John
                L. LaMattina
	Name: 	
                
Molly
                Henderson	 	Name:	
                
John
                L. LaMattina
	Title:	CFO	 	Title:	President PGRD
	 	 	 	 	 
	Date:	8/9/05	 	Date:	8/8/05

      

    

    
 

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Exhibit
      A

    

    I.    Toolboxes
      and Toolbox Descriptions

    

    Legend:

    
      	
              Color

            	
              Description

            
	 	
              Windows
                Application

            
	 	
              Web
                Application

            
	 	
              Automated
                Task (command-line application)

            
	 	
              Database
                (SQL Server 2000)

            

    

    

    

    OA
      CRO Toolkit Components

    

    

    
      	
              Component

            	
              Description

            
	
              Configuration
                Editor

            	
              
                (*****)

              

            
	
              Image
                Sort and Inspection System (ISIS)

            	
              (*****)

            
	
              Workflow
                Editor

            	
              (*****)

            
	
              Automated
                Task Execution

            	
              (*****)

            
	
              Medical
                Editor

            	
              (*****)

            
	
              Exception
                Handler

            	
              (*****)

            
	
              Dataset
                Manager

            	
              (*****)

            
	
              Biomarker
                Reporter

            	
              (*****)

            
	
              Workbook
                Manager

            	
              (*****)

            
	
              User
                Management

            	
              (*****)

            
	
              Audit
                Trail Viewer

            	
              (*****)

            
	
              Register
                and Fuse

            	
              (*****)

            
	
              Bone
                Segmentation

            	
              
                (*****)

              

            
	
              Segmentation
                Tracking

            	
              (*****)

            
	
              Biomarker
                Extraction

            	
              (*****)

            
	
              Cartilage
                Extraction

            	
              (*****)

            
	
              Fluid
                and Edema Extraction

            	
              (*****)

            
	
              Segmentation
                Mapping

            	
              (*****)

            
	
              Workflow
                Database

            	
              (*****)

            
	
              User
                Database

            	
              (*****)

            

    

    ______________________

    
      ***** Certain
        information on this page has been omitted and filed separately with the
        Securities and Exchange Commission. Confidential treatment has been requested
        with respect to the omitted portions.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Oncology
      CRO Toolkit Components

    

    
      	
              Component

            	
              Description

            
	
              Configuration
                Editor

            	
              (*****)

            
	
              Image
                Sort and Inspection System (ISIS)

            	
              (*****)

            
	
              Workflow
                Editor

            	
              (*****)

            
	
              Automated
                Task Execution

            	
              (*****)

            
	
              Manual
                Task Execution

            	
              (*****)

            
	
              (*****)

            	
              (*****)

            
	
              (*****)

            	
              (*****)

            
	
              (*****)

            	
              (*****)

            
	
              Exception
                Handler

            	
              (*****)

            
	
              Dataset
                Manager

            	
              (*****)

            
	
              Biomarker
                Reporter

            	
              (*****)

            
	
              Workbook
                Manager

            	
              (*****)

            
	
              User
                Management

            	
              (*****)

            
	
              Audit
                Trail Viewer

            	
              (*****)

            
	
              (*****)

            	
              (*****)

            
	
              Workflow
                Database

            	
              (*****)

            
	
              User
                Database

            	
              (*****)

            

    

    

    
      ______________________

      ***** Certain
        information on this page has been omitted and filed separately with the
        Securities and Exchange Commission. Confidential treatment has been requested
        with respect to the omitted portions.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    FSAD
      CRO Toolkit Components

    

    
      	
              Component

            	
              Description

            
	
              Configuration
                Editor

            	
              
                (*****)

              

            
	
              Image
                Sort and Inspection System (ISIS)

            	
              (*****)

            
	
              Workflow
                Editor

            	
              (*****)

            
	
              Automated
                Task Execution

            	
              (*****)

            
	
              Manual
                Task Execution

            	
              (*****)

            
	
              (*****)

            	
              (*****)

            
	
              Exception
                Handler

            	
              (*****)

            
	
              Dataset
                Manager

            	
              (*****)

            
	
              Biomarker
                Reporter

            	
              (*****)

            
	
              Workbook
                Manager

            	
              (*****)

            
	
              User
                Management

            	
              (*****)

            
	
              Audit
                Trail Viewer

            	
              (*****)

            
	
              Workflow
                Database

            	
              (*****)

            
	
              User
                Database

            	
              (*****)

            

    

    

     

    IVUS
      CRO Toolkit Components (upon
      completion)

     

    
      	
              Component

            	
              Description

            
	
              Video
                Input Software

            	
              (*****)

            
	
              Video
                Editing Software

            	
              (*****)

            
	
              Reporting
                Software

            	
              (*****)

            
	
              Exception
                Handler

            	
              (*****)

            
	
              User
                Management

            	
              (*****)

            
	
              Audit
                Trail Viewer

            	
              (*****)

            
	
              Workflow
                Database

            	
              (*****)

            
	
              User
                Database

            	
              (*****)

            

    

    

    
      ______________________

      ***** Certain
        information on this page has been omitted and filed separately with the
        Securities and Exchange Commission. Confidential treatment has been requested
        with respect to the omitted portions.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Endometriosis
      Toolkit Components

    
      	
              Component

            	
              Description

            
	
              Endometriosis
                Application

            	
              
                (*****)

              

            

    

    

    Skin
      Flare Toolkit Components

    
      	
              Component

            	
              Description

            
	
              Skin
                Flare Application

            	
              (*****)

            

    

    

    Preclinical
      Toolkit Components

    
      	
              Component

            	
              Description

            
	
              VsVision

            	
              Research
                application for loading images, identifying regions, manipulating
                the
                images and regions, and calculating information from the images and
                regions.

            

    

    

    

    RA
      CRO Toolkit Components (upon
      completion)

    

    
      	
              Component

            	
              Description

            
	
              Configuration
                Editor

            	
              (*****)

            
	
              Image
                Sort and Inspection System (ISIS)

            	
              (*****)

            
	
              Workflow
                Editor

            	
              (*****)

            
	
              Automated
                Task Execution

            	
              (*****)

            
	
              Medical
                Editor

            	
              (*****)

            
	
              Exception
                Handler

            	
              (*****)

            
	
              Dataset
                Manager

            	
              (*****)

            
	
              Biomarker
                Reporter

            	
              (*****)

            
	
              Workbook
                Manager

            	
              (*****)

            
	
              User
                Management

            	
              (*****)

            
	
              Audit
                Trail Viewer

            	
              (*****)

            
	
              (*****)

            	
              (*****)

            
	
              (*****)

            	
              (*****)

            
	
              (*****)

            	
              (*****)

            
	
              (*****)

            	
              (*****)

            
	
              (*****)

            	
              (*****)

            
	
              (*****)

            	
              (*****)

            
	
              (*****)

            	
              (*****)

            
	
              (*****)

            	
              (*****)

            
	
              
                
                  (*****)

                

              

            	
              
                
                  (*****)

                

              

            
	
              (*****)

            	
              (*****)

            
	
              (*****)

            	
              (*****)

            

    

    ______________________

    
      ***** Certain
        information on this page has been omitted and filed separately with the
        Securities and Exchange Commission. Confidential treatment has been requested
        with respect to the omitted portions.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    B.    Description
      of Documentation to be Provided:
      

    For
      each
      of the Windows and Web applications in the CRO Toolkit Components listed in
      the
      sections above, there will be a user’s guide. In addition, there will be one
      document entitled “Production Platform Installation Guide” describing how to set
      up the system.

    

    C.    Form
      in which Licensed Toolboxes Will Be Delivered:

    The
      system will be stored in a technology escrow at Iron Mountain. Iron Mountain
      is
      able to accept the information to be released electronically over a secure
      web
      channel. VirtualScopics will upload versions of the CRO Toolkits (including
      documentation) to Iron Mountain quarterly or upon release of a new version,
      whichever is less frequent. If the release conditions are met, then Pfizer
      will
      be given a link (by Iron Mountain) to download the information stored at Iron
      Mountain.

    

    D.    Toolbox
      Platform Required to Operate the Licensed Toolboxes:

    The
      system requirements are detailed in the installation guide, but here is a
      summary:

    
      	 	
              1.

            	
              A
                Windows Server acting as a domain controller, running Windows 2000
                Server
                or Windows Server 2003.

            
	 	
              2.

            	
              A
                Windows Server acting as a database server, running Windows 2000
                Server or
                Windows Server 2003, and Microsoft SQL Server 2000. (Can be the same
                server as the domain controller.

            
	 	
              3.

            	
              A
                Windows Server acting as a Web Server, running Windows 2000 Server
                or
                Windows Server 2003, and IIS. (Can be the same server as either of
                the
                above).

            
	 	
              4.

            	
              Workstations
                that are part of the system should be running Windows 2000 Professional
                or
                Windows XP Professional. 512 MB of RAM is required, but 1GB is
                recommended.

            
	 	
              5.

            	
              (*****)

            
	 	
              6.

            	
              (*****)

            

    

    

    E.    Acceptance
      Criteria for Toolboxes:

    As
      defined in individual POPs and in Escrow Agreement.

     

    II.    Maintenance:

    

    Telephone
      Support.
      VirtualScopics shall provide telephone support for the Licensed Toolboxes from
      9:00 a.m. EST until 5:00 p.m. EST Monday through Friday. The telephone support
      shall be provided by individuals thoroughly trained in the use of the Licensed
      Toolboxes.

    
      ______________________

      ***** Certain
        information on this page has been omitted and filed separately with the
        Securities and Exchange Commission. Confidential treatment has been requested
        with respect to the omitted portions.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Enhancements.
      Enhancements are included as part of Maintenance as long as they are implemented
      and distributed during the Maintenance Term.

    

    Scope.
      Maintenance shall not include support, troubleshooting and repair of
      hardware.

    

    Error
      Classification & Response Time: VirtualScopics
      shall respond to a Pfizer’s inquiries regarding errors, bugs, and problems with
      the Licensed Toolboxes ("Errors") within eight (8) business hours (for Errors
      defined below as Critical Business Impact or Serious) of receipt of such
      inquiry. VirtualScopics shall use commercially reasonable efforts to correct
      Errors with a level of effort (including dedication of more senior level
      personnel) commensurate with the classification of the Error as
      follows:

    

    
      	
              Severity
                Level

            	
              Criteria

            	
              VirtualScopics
                Response

            
	
              Critical
                Business Impact

            	
              Errors
                that substantially limit the ability to use the Licensed Toolboxes
                as
                intended including problems that cause the Licensed Toolboxes to
                be down
                or constantly crashing, problems of severe data corruption, or other
                problems that are so severe that Pfizer cannot reasonably continue
                to work
                with the Licensed Toolboxes.

            	
              (*****)

            
	
              Serious

            	
              Errors
                that have a serious impact on Pfizer’s ability to use the Licensed
                Toolboxes as intended, however, Pfizer is able to continue some portion
                of
                its work with the Licensed Toolboxes. Such Errors may include critical
                features that are disabled or unstable and unreliable operation and
                functioning.

            	
              (*****)

            
	
              Non-Critical

            	
              Errors
                that result in a minor loss or interruption of features or functionality
                which do not significantly impair Pfizer’s general use of the Licensed
                Toolboxes.

            	
              (*****)

            

    

     

    On-Site
      Support: Notwithstanding
      anything to the contrary contained herein, if VirtualScopics is unable to
      reproduce an Error classified as a Critical Business Impact within twenty-four
      (24) business hours of receipt of Pfizer’s notification, VirtualScopics shall,
      upon Pfizer’s request, provide on-site service to Pfizer within the next
      business day to determine the cause of the error. 

    ______________________

    
      ***** Certain
        information on this page has been omitted and filed separately with the
        Securities and Exchange Commission. Confidential treatment has been requested
        with respect to the omitted portions.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Notwithstanding
      anything to the contrary contained herein, if VirtualScopics is unable to
      reproduce an Error classified as a Serious Error within forty (40) business
      hours of receipt of Pfizer’s notification, VirtualScopics shall, upon Pfizer’s
      request, provide on-site service to Pfizer within the next business day to
      determine the cause of the error. 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Exhibit
      B

    FEES

    (prices
      may be subject to a 5% annual increase)

    

    Toolbox
      Development Services Fees

    To
      be
      determined on an individual contract basis.

     

    Maintenance/Support
      Fees

    Upon
      the
      request of Pfizer, VS will provide support for a CRO Toolbox installed at Pfizer
      (listed in Exhibit A) at the hourly rates outlined below.

    

    Escrow
      Fees

    $10,000
      -
      Annual charge

    

    FTE
      Annual Services Fees

    

    
      	
              Groton
                

            	
              $275,000

            
	
              Ann
                Arbor

            	
              $265,000

            

    

    

    
      	
              Image
                Analysis Services Fees (per analysis/timepoint)

            	 	 
	 	
              Std. Rate

            	
              Pfizer
                Discounted Rate

            
	
              Oncology:

            	 	 
	
              Structural

            	
              *****

            	
              ****

            
	
              Perfusion

            	
              ****

            	
              ****

            
	 	 	 
	 	
              Std. Rate

            	
              Pfizer
                Discounted Rate

            
	
              OA:

            	 	 
	
              Standard
                human cartilage analysis

            	
              ****

            	
              ****

            
	
              -
                volume

            	 	 
	
              -
                thickness

            	 	 
	
              -
                surface area

            	 	 
	
              -
                denuded area 

            	 	 
	 	 	 
	
              Consulting
                Hourly Rates

            	
              Std
                Rate

            	
              Pfizer
                Discounted Rate

            
	
              MD/PhD

            	
              ****

            	
              ****

            
	
              Software
                Developer

            	
              ****

            	
              ****

            
	
              Project
                Manager

            	
              ****

            	
              ****

            
	
              Image
                Analysts

            	
              ****

            	
              ****

            

    

    
      ______________________

      ***** Certain
        information on this page has been omitted and filed separately with the
        Securities and Exchange Commission. Confidential treatment has been requested
        with respect to the omitted portions.

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