Document:

Exhibit
10.1

 

	
       EXCLUSIVE LICENSE
  AGREEMENT

	 
	
       between

	 
	
       ACCUDX CORPORATION

	 
	
       and

	 
	
       GRANT LIFE SCIENCES,
  INC.

 

THIS
LICENSE AGREEMENT is made and entered into as of this 7th day of
March, 2005 (“Effective Date”), by and between the ACCUDX CORPORATION, a
California corporation with offices located at 9466 Black Mountain Road, Suite
130, San Diego, CA 92126 USA (hereinafter referred to as "Licensor") and GRANT
LIFE SCIENCES, INC., a Nevada corporation with its principal place of business
at 64 East Winchester, Suite 205, Murray, UT 84107 USA (hereinafter referred to
as "Licensee"). 

WHEREAS,
Licensor owns certain rights, title, and interest in and to the Licensed
Technology (as defined herein), as follows:

 

	
      
	
      1.
	
      DxStrip
      HIV-1 and HIV-2, Rapid Test for HIV-1 and HIV-2, Catalogue # DSH3CS204,
      for in-vitro diagnostic use only.

 

	
      
	
      2.
	
      AccuSpotTM
      Dengue Fever, Rapid Test for Dengue Fever IgM and IgG, Catalogue
      #ASDF-CS201, for in-vitro diagnostic use
only.

	 	 	 

	 	3.	Trade Secrets/Know-how/manufacturing support - Colloidal
      Gold Suspension /Colloidal
      Gold custom manufacturing business;
and

 

WHEREAS,
Licensor wishes to have the Licensed Technology further developed and marketed
at the earliest possible time in order that products resulting therefrom may be
available for public use and benefit; and

 

WHEREAS,
Licensee desires to hereby enter into this Agreement whereby Licensee obtains
the exclusive rights to use the Licensed Technology for commercial purposes;
and

 

WHEREAS,
Licensee represents that it possesses the expertise to do so; and

 

WHEREAS,
Licensor is willing to enter into this Agreement with Licensee, under the terms
and conditions set forth herein.

 

NOW,
THEREFORE, in consideration of the mutual covenants and premises contained
herein, the receipt and sufficiency of which is hereby acknowledged, the Parties
hereto agree as follows:

 

ARTICLE
1. DEFINITIONS

The
following terms as used herein shall have the following meaning:

1.1  “Affiliate”
shall mean a corporation, company, partnership, or other legal entity that
controls or is controlled by, or is under common control, by Licensee. In the
case of a corporation or company, “control” means ownership either directly or
indirectly of at least fifty percent (51%) of the voting securities of a
corporation or other business organization with voting securities or (ii) a
fifty-one percent (51%) or greater interest in the net assets or profits of a
partnership or other business organization without voting
securities..

1.2  "Agreement"
or "License Agreement" shall mean this Agreement.

 

1.3  Authorized
Uses” shall mean uses of the Licensed Technology to develop and make and have
made Licensed Product(s) for use, license, market, distribution and
sale.

 

1.4  "Field of
Use" shall mean: commercial sale. 

 

1.5       “Licensed
Product(s)” shall mean products or services, the development, manufacture, use
or sale of which would require the use of Licensed
Technology.

1.6  "Licensed
Technology” shall mean (i) DxStrip HIV-1 and HIV-2, Rapid Test for HIV1 and
HIV-2, Catalogue # DSH3CS204; (ii) AccuSpotTM Dengue Fever, Rapid Test for Dengue
Fever IgM and IgG, Catalogue #ASDF-CS201; and (iii) Trade Secrets/Know
how/manufacturing support - Colloidal Gold Suspension /Colloidal Gold custom
manufacturing business.

 

1.7        "Licensed
Territory" shall mean worldwide.

 

1.8   “Net
Sales” means the amounts invoiced by Licensee and its Affiliates for the
arms-length sale of Licensed Product to customers and distributors, less
qualifying costs directly attributable to such sale and actually identified on
the invoice. Such qualifying costs shall be limited to the
following:

(a)  Customary
trade, quantity, cash and prompt payment discounts to wholesalers and
distributors; 

 

(b)  Credits
or refunds, not exceeding the original invoice amount, for claims, rejections
and returns;

 

(c)  Actual
outbound transportation costs and transportation insurance
premiums;

 

(d)  Any taxes
or other governmental charges levied on the production, sale, transportation,
delivery, or use of any Licensed Material or Licensed Product, paid by or on
behalf of Licensee, any Affiliate of Licensee, or a Sublicensee; 

 

(e)  Bad debts
and any cost of collection; and 

 

(f)  Costs
incurred by Licensee for providing samples to customers in reasonable and
customary amounts.

In any
transfers of Licensed Technology or Licensed Product between Licensee and its
Affiliate, Net Sales shall be calculated based on the final sale of the Licensed
Technology or Licensed Product to a Third Party. In the event that Licensee or a
Licensee Affiliate receives non-cash consideration for any Licensed Technology
or Licensed Products, Net Sales shall be calculated based on the fair market
value of such consideration. 

 

2

 

ARTICLE
2. GRANT OF LICENSE

 

2.1  Exclusive
License. Subject
to compliance with this Agreement, and subject to the reservation of rights
stated below, Licensor grants to Licensee an exclusive license to the Licensed
Technology on a royalty-bearing basis, including the exclusive right to grant
sublicenses, for revenue-generating Authorized Uses in the Field of Use in the
Licensed Territory.
Licensee may not sell Licensed Technology to a third-party or seek patent
protection for Licensed Technology. In order to ensure that Licensee can use the
license, Licensor will supply know-how, any and all constructs, any and all
clones, any and all recombinant proteins, any and all antibodies, any and all
equipment, reagents and other such materials as required to manufacture and sell
Licensed Technology.

2.2 Exclusivity.

(a) Except as
otherwise provided in this Article 2, during the Term, Licensor shall not,
directly or indirectly, (i) sell or distribute in the Licensed Territory other
than to or through Licensee as provided herein any Licensed Products, or (ii)
use or grant any other license for the use of the Licensed Technology in
connection with the sale or distribution of Licensed Products in the Licensed
Territory; provided,
however, that
nothing contained herein shall prevent Licensor or its Affiliates or any of
their other distributors or licensees from (A) manufacturing, selling or
distributing in the Licensed Territory goods of all types and descriptions other
than Licensed Products (or from using or granting any other license for the use
of the Licensed Technology in connection with the manufacture, sale or
distribution of such goods) or (B) manufacturing, selling or distributing in the
Licensed Territory Licensed Products using technology that is not the Licensed
Technology

(b) All
products, other than Licensed Products, manufactured and/or sold by Licensee
shall be distinguished from Licensed Products, and Licensee shall avoid
confusing similarity between such other products and Licensed Products. In
furtherance of the foregoing, Licensee shall not manufacture and/or sell any
products (other than Licensed Products) that are equivalent or higher quality
than Licensed Products or are otherwise directly competitive in the marketplace
with Licensed Products.   

2.3 Sublicensing.
Licensee will have the exclusive right to grant sublicenses, limited to the
Field of Use, consistent with the terms and conditions of this Agreement
provided that as between Licensor and Licensee, Licensee will be responsible for
the enforcement of such terms and conditions. Except as Licensor may in its
discretion otherwise agree in writing, any sublicense granted by Licensee under
this Agreement will provide for termination upon termination of this Agreement.
Licensee will provide to Licensor notice of all intended sublicense
agreements. Licensee
will provide the Licensor written notice of all intended sublicense agreements
and provide copies of all such sublicense agreements at least ten (10) days in
advance of final signature, for consent of Licensor, such consent not to be
unreasonably withheld and to be acted on in an expeditious manner.

ARTICLE
3. OPERATIONS UNDER THE LICENSE

 

3.1 Licensee
shall use its commercially reasonable best efforts throughout the term of this
Agreement to promote the sale, marketing and distribution of the Licensed
Products, in the licensed Field of Use and to create, supply, and market in the
Licensed Territory. Except as expressly set forth in this Agreement, Licensee
will be solely responsible for the selling, marketing and distribution of the
Licensed Products.. 

 

3

3.2 At the
option of the Licensee, Licensor shall use its best efforts to assist Licensee
in facilitating manufacturing at the Licensor’s FDA/GMP-compliant contract
manufacturing maquiladora facility in Tijuana, Mexico or another facility at
which the Licensor manufactures Licensed Products. 

3.3 Licensee
shall have the right, at its own expense, to apply for additional patents
relating to the Licensed Technology. Licensor shall use its best efforts to
cooperate with Licensee in facilitating any such patent applications. The Patent
Applications shall be assigned for use by the Licensee but will be owned by
Licensor subject to Article 9 herein.

ARTICLE
4. CONSIDERATION FOR LICENSE

4.1 License
Fee.

(a) Licensee
shall pay Licensor a one-time license fee in the amount of fifteen thousand
dollars ($15,000) upon execution hereof by delivery of a check payable to the
order of AccuDx, Inc. or, at the Licensor’s option, by wire transfer of
immediately available funds to an account designated by the Licensor. Said
license fee shall not be credited toward any other obligation of Licensee under
this Agreement.

(b) Licensee
shall deliver a promissory note upon execution hereof as additional compensation
with a $35,000 principal amount bearing interest at 6% per annum on the
outstanding balance paid quarterly in arrears and with a term of two years from
date of closing. The note shall amortize quarterly in arrears over the term of
the note in an amount equal to $4,375 per period. 

4.2 For a
period of two years after the effective date hereof, should the Licensee make
any public offering of its securities pursuant to an effective registration
statement under the Securities Act of 1933, as amended, Licensor shall be
entitled, and the Licensee agrees, to include in such registration any or all of
the common stock issuable granted to Licensor by the Licensee as consideration
hereunder (commonly referred to as “Piggyback Registration Rights”). Such
Piggyback Registration Rights, include, at Licensor’s option, registration on
Form SB-2. Notwithstanding the foregoing, the Licensor shall have no Piggyback
Registration Rights with respect to the Company’s current registration statement
on file with the Securities and Exchange Commission or upon any amendments
thereto. All such registration rights shall be subject to customary market
stand-off and underwriter cutback provisions.

4.3 Royalty
On Net Sales. As
further consideration for the grant of rights hereunder, Licensee will pay
Licensor a royalty equal to three percent (3%) of Net Sales of Licensed Product.

 

ARTICLE
5. REPORTS AND PAYMENTS

5.1  Written
Reports.
Licensee agrees to make written reports and payments of earned royalties to
Licensor within thirty (30) days of the end of each calendar quarter for the
term of this Agreement. For the quarter being reported, Licensee will provide:

	(a)  	
      For
      each Licensed Product, the Net Sales during the reporting
      period.

 

	(b)  	
      Total
      payments due to Licensor, with supporting
calculations.

 

Concurrent
with the issuance of each report, Licensee shall pay Licensor the amounts due
for the quarter covered by such report. Reports are required even if no earned
royalties are due. 

4

5.2 Payments. All
monies to be paid by Licensee hereunder shall be paid in U.S. Dollars. To the
extent that Net Sales received by Licensee in any calendar quarter are received
in currencies other than U.S. Dollars, for purposes of calculating the royalties
due hereunder, such Net Sales shall be converted to U.S. Dollars at the exchange
rate existing between the U.S. Dollar and the relevant currency on the last day
of such calendar quarter, as such rate is determined by the Chase Manhattan Bank
of New York. Payments required under this Agreement shall, if overdue, bear
interest until payment at a per annum rate two percent (2%) above the prime rate
in effect as published in the Wall
Street Journal on the
due date. The payment of such interest shall not foreclose Licensor from
exercising any other rights it may have because any payment is
late.

ARTICLE
6. CONFIDENTIALITY

6.1 Licensee
Obligations.
Licensee shall keep the Licensed Technology confidential, except to the extent
information needs to be disclosed to commercialize the Licensed Product.

6.2 Licensor
Obligations.
Licensor shall not without the express written consent of Licensee, for any
reason or at any time either during or subsequent to the term of this Agreement,
disclose to third parties other than to their financial and legal advisors
information about the sales, profits and business affairs of Licensee they
receive access to in connection with this Agreement.

ARTICLE
7. LIMITED WARRANTY, MERCHANTABILITY AND EXCLUSION OF
WARRANTIES

Each
Party warrants to the other that it is fully empowered to enter into this
Agreement. Licensor makes no representation whatsoever with regard to the scope
or commercial potential or profitability or income of or from the Licensed
Technology or that such Licensed Technology may be exploited by Licensee or its
Affiliates without infringing any rights of any other party. Licensor makes no
covenant to defend any infringement charge by a third party of Licensed
Technology. Licensor does not warrant that the Licensed Technology will meet
Licensee’s or any of Licensee’s customer’s specific requirements. Licensee
warrants that it possesses the necessary expertise and skill to make, and has
made, its own evaluation of the capabilities, safety, utility, and commercial
application of the Licensed Technology. 

 

 

ARTICLE
8. DAMAGES, INDEMNIFICATION, AND INSURANCE

8.1  Indemnification.
Licensee shall defend, indemnify and hold Licensor, their trustees, officers,
agents, employees or assigns, and [the Inventors] harmless from any and all
claims, demands, actions and causes of action against Licensor, whether
groundless or not, in connection with any and all injuries, losses, damages or
liability of any kind whatsoever arising, directly or indirectly, out of use,
exploitation, distribution, or sale of Licensed Technology or Licensed
Product(s) by or through the Licensee or its Affiliate(s) or Sublicensees;
provided, however, that Licensee shall not be required to indemnify Licensor
where damages are solely caused by the fault of the Licensed Technology or
Licensed Products or the fault or negligence of the Licensor. This
indemnification obligation shall include, without limiting the generality of the
foregoing, reasonable attorney fees and other costs or expenses incurred in
connection with the defense of any and all such claims, demands, actions, or
causes of action. Licensor promptly shall notify Licensee of any claim, demand,
action or other proceeding for which Licensor intends to claim indemnification.
Licensee shall have the right to participate in, and to the extent Licensee so
desires jointly with any other indemnitor similarly noticed, to assume the
defense thereof with counsel selected by Licensee; provided, however, that
Licensor shall have the right to retain its own 

 

5

counsel,
with the fees and expenses to be paid by Licensor, if representation of Licensor
by the counsel retained by Licensee would be inappropriate due to actual or
potential differing interests between Licensor and any other party represented
by such counsel in such proceedings. The indemnity obligations under this
Article 8 shall not apply to amounts paid in settlement of any claim, demand,
action or other proceeding if such settlement is effected without the prior
express written consent of Licensee, which consent shall not be unreasonably
withheld or delayed. The failure to deliver notice to Licensee within a
reasonable time after notice of any such claim or demand, or the commencement of
any such action or other proceeding, if prejudicial to its ability to defend
such claim, demand, action or other proceeding, shall relieve such indemnitor of
any liability to Licensor under this Article 8 with respect thereto, but the
omission so to deliver notice to Licensee shall not relieve it of any liability
that it may have to Licensor other than under this Article 8. Licensee may not
settle or otherwise consent to an adverse judgment in any such claim, demand,
action or other proceeding, that diminishes the rights or interests of Licensor
without the prior express written consent of Licensor, which consent shall not
be unreasonably withheld or delayed. Licensor and their employees and agents,
shall reasonably cooperate with Licensee and its legal representatives in the
investigation of any claim, demand, action or other proceeding covered by this
Article 8.

8.2 Licensor
shall defend, at its cost and expense, and with counsel of its choice, any
action or proceeding brought against Licensee for alleged infringement arising
out of Licensee's use of the Licensed Products in accordance with the provisions
of this Agreement. If any such action or proceeding is brought against Licensee,
Licensee shall give Licensor prompt notice thereof. 

8.3 Licensor
shall not hold Licensee liable for any claims, suits, actions, damages, costs,
expenses (including attorneys' fees) or losses (collectively, "Damages")
incurred through claims of third parties brought against Licensor for alleged
infringement arising out of Licensee's use of the Licensed Products in
accordance with this Agreement. Licensor shall indemnify Licensee and hold
Licensee harmless from and against any and all Damages incurred through claims
of third parties brought against Licensee for alleged infringement arising out
of Licensee's use of the Licensed Product in accordance with this
Agreement.

 

8.4 Insurance.
Licensee agrees to maintain such product liability and other insurance as is
customary in its industry.

 

8.5 Notification
of Claims.
Licensee shall promptly notify Licensor of each claim relating in any way to a
Licensed
Product
and provide Licensor with Licensee’s good-faith evaluation of the
claim.

 

ARTICLE
9. REPRESENTATIONS
AND WARRANTIES

Each
party represents and warrants to the other that it has the full right, power and
authority to enter into this Agreement and to perform all of its obligations
hereunder, this Agreement has been duly executed and delivered by such party and
constitutes a valid and binding obligation of such party in accordance with its
terms, and the execution by such party of this Agreement and the performance of
its obligations hereunder will not violate or result in a breach of or default
under any contract, agreement, instrument, judgment, decree, order, ruling or
statute or regulation to which such party is presently a party or by which it or
its properties may be is subject. 

6

Licensor
represents and warrants to Licensee that (i) Licensor owns all right, title and
interest in and to the Licensed Products, free and clear of all liens, claims
and encumbrances, (ii) Licensor has full legal right, power and authority to
execute and deliver this Agreement, and perform all of the transactions
contemplated hereby, without conflict with, or infringement on, the rights of
any third party, and (iii) there are no actions pending or, to the best of its
knowledge, threatened with respect to the use of the Licensed Products in the
manner contemplated hereunder.

 

ARTICLE
10. TERM AND TERMINATION

 

10.1 Term. Unless
otherwise extended in writing by mutual agreement of Licensor and Licensee, this
Agreement will remain valid and in force for ten (10) years from the Effective
Date.

 

10.2 Voluntary
Termination by Licensee.
Licensee shall have the right to terminate this Agreement at any time, upon
ninety (90) days prior written notice, without cause and for any reason. If
Licensee terminates this Agreement under this provision, Licensor will not be
under any obligation to return any portion of the consideration paid by Licensee
to Licensor. In the event of such termination, Licensee agrees, upon the request
of , to provide with all existing data in support of governmental registration
of Licensed Products, if any. 

 

10.3 Voluntary
Termination by Licensor.
If Licensee should at any time default or commit any breach of any covenant or
any obligation of the license which could have a material adverse effect, and
should fail to remedy any default or breach within thirty (30) days of
Licensee’s receipt of written notice, Licensor may, at its sole option,
terminate this license by notice in writing to the Licensee. Upon termination,
Licensee shall remain responsible for all obligations contained in this
Agreement, including without limiting the generality of the foregoing,
reasonable attorney fees and other costs or expenses incurred by Licensor as a
result of Licensee’s breach and/or default.

 

10.4 Termination
in Event of Insolvency. If
Licensee: (a) liquidates and ceases to carry on its business, (b) becomes
“insolvent” (as such term is defined in the United States Bankruptcy Code, as
amended from time to time), or (c) voluntarily seeks, consents to or acquiesces
in the benefits of any bankruptcy or similar debtor-relief laws, then Licensor
may terminate this Agreement without prejudice to any other remedy to which
Licensor may be entitled at law or in equity or elsewhere under this Agreement,
by giving written notice of termination to Licensee.

 

10.5 Effect
of Termination.

 

(a) Upon
termination of the Agreement Licensee shall cease all uses of the Licensed
Technology. If this Agreement is terminated for any reason whatsoever, Licensee
shall return, or at Licensor 's direction destroy, all plans, drawings, papers,
notes, writings and other documents, samples, organisms, biological materials
and models pertaining to the Licensed Technology, retaining no copies, and shall
refrain from using or publishing any portion thereof. Upon termination of this
Agreement, Licensee shall cease manufacturing, processing, producing, using, or
selling Licensed Products; provided, however, that Licensee may continue to sell
in the ordinary course of business for a period of six (6) months reasonable
quantities of Licensed Products that are fully manufactured and in Licensee 's
normal inventory at the date of termination if (a) all monetary obligations of
Licensee to Licensor have been satisfied, and (b) royalties on such sales are
paid to Licensor pursuant to Article 4 and 5 herein. However, nothing herein
shall be construed to release either party of any obligation that matured prior
to the effective date of such termination.

 

7

(b) In the
event of termination of the Term, Licensor shall have the prior right and option
to purchase any or all of the Licensed Products (including related work in
process) as Licensee may require to fill any unfilled orders received prior to
such expiration or termination), at the cost thereof to Licensee, as carried on
its books of account, but which amount shall not exceed the reasonable cost to
Licensor of comparable goods. Upon such termination or expiration the parties
hereto shall jointly immediately cause physical inventories to be taken of (a)
Licensed Products of Licensee on hand (including Licensed Products in the
process of manufacture on hand and for which orders have been placed that cannot
be canceled without penalty. Such inventories shall be reduced to writing and
copies thereof shall be delivered to and signed by each party.

 

10.6 Survival. The
provisions of Articles 6, 7 and 8 of this Agreement shall remain in full force
and effect notwithstanding the termination of this Agreement. 

 

ARTICLE
11. ADDITIONAL PATENTS

At
Licensee’s expense, Licensee shall have the right to apply for additional
patents with the cooperation of the Licensor. Such patents shall be owned by the
Licensor; provided that Licensor assigns them to Licensee. 

ARTICLE
12. ASSIGNMENT

This
Agreement shall be binding upon and shall inure to the benefit of the legal
representatives and assigns of Licensor and Licensee, provided, however, that
any assignment of this Agreement by Licensee to a third party (other than in
connection with the transfer of the entire business of Licensee) may be made
only upon prior written consent of Licensor, which consent may not be
unreasonably withheld by Licensor.

 

ARTICLE
13. MISCELLANEOUS

13.1 Legal
Compliance.
Licensee shall comply with all laws and regulations relating to its manufacture,
processing, producing, use, selling, or distributing of Licensed Products.
Licensee shall not take any action that would cause Licensor or Licensee to
violate any laws and regulations.

13.2 Independent
Contractor. The
relationship between Licensee and Licensor shall be that of an independent
contractor only. Neither Party shall be the agent of the other Party nor shall
have authority to act for or on behalf of the other in any matter. Persons
retained by a Party as employees or agents shall not by reason thereof be deemed
to be employees or agents of the other Party.

13.3 Use of
Names. The
Parties and their Affiliates shall obtain the prior written approval of the
other Parties (and their Affiliates, as applicable) prior to making use of their
names for any commercial purpose, except as required by law. As an exception to
the foregoing, both Licensee and Licensor shall have the right to publicize the
existence of this Agreement; however, neither Licensee nor Licensor shall
disclose the terms and conditions of this Agreement without the other party's
consent, except as set forth in Article 6 or as required by law.

13.4 Place
of Execution. This
Agreement and any subsequent modifications or amendments hereto shall be deemed
to have been executed in the State of Utah. 

13.5 Governing
Law; Venue. This
Agreement and all amendments, modifications, alterations, or supplements hereto,
and the rights of the parties hereunder, shall be construed under and governed
by the laws of the State of Utah and the United States of America. Any dispute
between Licensor and Licensee shall be determined solely and exclusively by a
court of competent jurisdiction in the State of Utah. The prevailing party in
any litigated dispute shall be entitled to reimbursement of its attorney’s fees
and costs.

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

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

13.8 Force
Majeure. Any
delays in, or failure of, performance of any party to this Agreement shall not
constitute default hereunder, or give rise to any claim for damages, if and to
the extent caused by occurrences beyond the control of the party affected,
including, but not limited to, acts of God, strikes or other work stoppages;
civil disturbances, fires, floods, explosions, riots, war, rebellion, sabotage,
acts of governmental authority or failure of governmental authority to issue
licenses or approvals that may be required.

ARTICLE
14. NOTICES

All
notices and other communications shall be hand delivered, sent by private
overnight mail service, or sent by registered or certified U.S. mail, postage
prepaid, return receipt requested, and addressed to the party to receive such
notice or other communication at the address given below, or such other address
as may hereafter be designated by notice in writing:

If to
Licensee:

Stan
Yakatan 

Chief
Executive Officer

Grant
Life Sciences, Inc.

64 East
Winchester

Suite
205

Murray,
UT 84107  

With a
copy to:

Gregory
Sichenzia, Esq.

Sichenzia
Ross Friedman Ference LLP

1065
Avenue of the Americas, 21st Floor

New York,
NY 10018 

If to
Licensor:       Ravi
Pottahil

8806
Cliffridge Avenue

La Jolla,
CA 92307

Facsimile:
(858) 777-3600

 

Such
notices or other communications shall be effective upon receipt by an employee,
agent or representative of the receiving party authorized to receive notices or
other communications sent or delivered in the manner set forth
above.

[REMAINDER
OF PAGE INTENTIONALLY OMITTED]

8

IN
WITNESS WHEREOF, Licensor and Licensee have caused this Agreement to be signed
by their duly authorized representatives, under seal, as of the day and year
indicated above.

	LICENSOR: 	 	LICENSEE:	 
	AccuDx Corporation	 	Grant Life Sciences, Inc.	 
	 	 	 	 
	By: /s/
      Ravi Pottahil   	 	By: /s/
      Stan Yakatan	 
	     Name: Ravi
      Pottahil  	 	     Name: Stan
      Yakatan	 
	     Title:
      President	 	     Title: Chief
      Executive Officer	 
	 	 	 	 

     

     

9Exhibit
10.2

CONSULTING
AGREEMENT

THIS
CONSULTING AGREEMENT (this “Agreement”), made, entered into, and effective this
7th day of
March, 2005 (the “Effective Date”), by and between RAVI POTTAHIL, Ph.D. and
INDIRA POTTAHIL, Ph.D., each, an individual having an address at 8806 Cliffridge
Avenue, La Jolla, California 92307 (each, a “Consultant” and together, the
“Consultants”), and GRANT LIFE SCIENCES, INC., a Nevada corporation with its
principal place of business in Murray, Utah (hereinafter referred to as the
“Corporation”).

W
I T N E S S E T H:

WHEREAS, the
Corporation desires to retain Consultants’ services under a consulting
agreement; and

WHEREAS, each
Consultant desires to provide such consulting services for the Corporation as an
independent contractor, with the understanding that each shall not be required
to devote each of their full time to the business of the Corporation and shall
be free to pursue other personal and business interests.

NOW,
THEREFORE, in
consideration of the premises, the mutual covenants of the parties herein
contained and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged by each of the parties hereto, it is agreed as
follows:

1. CONSULTING
ARRANGEMENT. The
Corporation hereby contracts for the services of Consultants and Consultants
agree to perform such duties and responsibilities and to render advice and
consulting as may be requested by the Corporation from time to time during the
term of this consulting arrangement in connection with the Corporation’s
business (“Consulting Arrangement”). Said consulting services shall include, but
not be limited to, 

	
      
	
      
	
      1.
	
      Technology
      Transfer of manufacturing process and know how for manufacturing of Rapid
      Test Strips.

	
      
	
      
	
      2.
	
      Technology
      Transfer of manufacturing process and know how for manufacturing of
      Colloidal Gold Suspensions

	
      
	
      
	
      3.
	
      Support
      in Development, Validation, Safety, Manufacturing, Quality Control,
      Dispensing, Kitting and Packing, of products licensed. (specifically as
      outlined in the AccuDx “Development and Manufacturing
      Overview”)

	
      
	
      
	
      4.
	
      Maintenance
      of the relationship with AccuDx, Inc. (“AccuDx”) to support the
      aforementioned activities.

Consultants
shall use their best efforts to keep the Corporation informed of all corporate
business opportunities which shall come to each of their attention and appear
beneficial to the Corporation’s business so that the Corporation can obtain the
maximum benefits from Consultants’ knowledge, experience, and personal
contacts.

 

2. RELATIONSHIP
BETWEEN PARTIES. During
the term of the Consulting Arrangement, each of the Consultants shall be
employed by AccuDx, Inc. and shall be deemed to be independent contractors of
the Corporation. Each Consultant shall be free to devote each of their time,
energy and skill to any such person, firm or company as each deems advisable
except to the extent each is obligated to devote each of their time, energy and
skill to the Corporation pursuant to the terms of this Agreement. Consultants
shall not be considered as 

 

having an
employee status vis-à-vis the Corporation, or by virtue of the Consulting
Arrangement being entitled to participate in any plans, arrangements or
distributions by the Corporation pertaining to or in connection with any
pension, stock, bonus, profit sharing, welfare benefits, or similar benefits for
the regular employees of the Corporation. The Corporation shall not withhold any
taxes in connection with the compensation due Consultants hereunder, and
Consultants will be responsible for the payment of any such taxes and hereby
agrees to indemnify the Corporation against nonpayment thereof.

3. TERM
OF CONSULTING ARRANGEMENT. The
Consulting Arrangement shall begin effective as of the Effective Date of this
Agreement and shall continue for a period of twenty-seven (27) months, until
April 5, 2008 (the “Consulting Period”); provided, however, that if and to the
extent either of the Consultants does not remain an employee of AccuDx, the
Corporation may terminate the Agreement.

 

4. COMPENSATION
FOR THE CONSULTING ARRANGEMENT. Consultants
shall be entitled to receive $150,000 worth of common stock of the Corporation
(the “Share Value”), par value $.001 per share which is to be registered on Form
S-8 in the name of Ravi Pottahil, of which one-third shall be issued six months
from the date hereof, one-third shall be issued 12 months from the date hereof
and one-third shall be issued 18 months from the date hereof. The number of
shares received shall equal the Share Value divided by the average price of the
common stock during the fifteen (15) trading days prior to the date hereof;
provided, however, that the Consultants shall not receive more than 310,000
shares of the common stock of the Corporation.

 

Pursuant
to Article 3, if either of the Consultants shall leave AccuDx prior to the end
of Consulting Period, Ravi Pottahil shall return to the Corporation a pro rata
portion of the Shares equal to the balance of the Consulting Period.

5. CONFIDENTIALITY
COVENANTS. 

5.1 Acknowledgments
by the Consultants. Each of
the Consultants acknowledges that (a) during the Consulting Period and as a part
of the Consulting Arrangement, each Consultant will be afforded access to
Confidential Information (as defined below); (b) public disclosure of such
Confidential Information could have an adverse effect on the Corporation and its
business; (c) because the Consultants possess substantial technical expertise
and skill with respect to the Corporation’s business, the Corporation desires to
obtain exclusive ownership of each Consultant Invention (as defined below), and
the Corporation will be at a substantial competitive disadvantage if it fails to
acquire exclusive ownership of each Consultant Invention; (d) the provisions of
this Section 5 are reasonable and necessary to prevent the improper use or
disclosure of Confidential Information and to provide the Corporation with
exclusive ownership of all Consultant Inventions.

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5.2 Agreements
of the Consultant. In
consideration of the compensation and benefits to be paid or provided to the
Consultants by the Corporation under this Agreement, each of the Consultants
covenants as follows:

(a) Confidentiality.

(i) During
and following the Consulting Period, the Consultant will hold in confidence the
Confidential Information and will not disclose it to any person except with the
specific prior written consent of the Corporation or except as otherwise
expressly permitted by the terms of this Agreement.

(ii) Any trade
secrets of the Corporation will be entitled to all of the protections and
benefits under any applicable law. If any information that the Corporation deems
to be a trade secret is found by a court of competent jurisdiction not to be a
trade secret for purposes of this Agreement, such information will,
nevertheless, be considered Confidential Information for purposes of this
Agreement. The Consultant hereby waives any requirement that the Corporation
submit proof of the economic value of any trade secret or post a bond or other
security.

(iii) None of
the foregoing obligations and restrictions applies to any part of the
Confidential Information that the Consultant demonstrates was or became
generally available to the public other than as a result of a disclosure by the
Consultant.

(iv) The
Consultant will not remove from the Corporation’s premises (except to the extent
such removal is for purposes of the performance of the Consultant’s duties at
home or while traveling, or except as otherwise specifically authorized by the
Corporation) any document, record, notebook, plan, model, component, device, or
computer software or code, whether embodied in a disk or in any other form
(collectively, the “Proprietary Items”). The Consultant recognizes that, as
between the Corporation and the Consultant, all of the Proprietary Items,
whether or not developed by the Consultant, are the exclusive property of the
Corporation. Upon termination of this Agreement by either party, or upon the
request of the Corporation during the Consulting Period, the Consultant will
return to the Corporation all of the Proprietary Items in the Consultant’s
possession or subject to the Consultant’s control, and the Consultant shall not
retain any copies, abstracts, sketches, or other physical embodiment of any of
the Proprietary Items.

(b) Consultant
Inventions. Each
Consultant Invention will belong exclusively to the Corporation. The Consultant
acknowledges that all of the Consultant’s writing, works of authorship, and
other Consultant Inventions are works made for hire and the property of the
Corporation, including any copyrights, patents, or other intellectual property
rights pertaining thereto. If it is determined that any such works are not works
made for hire, the Consultant hereby assigns to the Corporation all of the
Consultant’s right, title, and interest, including all rights of copyright,
patent, and other intellectual property rights, to or in such Consultant
Inventions. Each Consultant covenants that each will promptly:

(i) disclose
to the Corporation in writing any Consultant Invention;

3

(ii) assign to
the Corporation or to a party designated by the Corporation, at the
Corporation’s request and without additional compensation, all of the
Consultant’s right to the Consultant Invention for the United States and all
foreign jurisdictions;

(iii) execute
and deliver to the Corporation such applications, assignments, and other
documents as the Corporation may request in order to apply for and obtain
patents or other registrations with respect to any Consultant Invention in the
United States and any foreign jurisdictions;

(iv) sign all
other papers necessary to carry out the above obligations; and

(v) give
testimony and render any other assistance in support of the Corporation’s rights
to any Consultant Invention.

 

5.3 Disputes
or Controversies. Each of
the Consultants recognizes that should a dispute or controversy arising from or
relating to this Agreement be submitted for adjudication to any court,
arbitration panel, or other third party, the preservation of the secrecy of
Confidential Information may be jeopardized. All pleadings, documents,
testimony, and records relating to any such adjudication will be maintained in
secrecy and will be available for inspection by the Corporation, the
Consultants, and their respective attorneys and experts, who will agree, in
advance and in writing, to receive and maintain all such information in secrecy,
except as may be limited by them in writing.

5.4 Definitions. 

(a) For the
purposes of this Section 5, “Confidential Information” shall mean any and
all:

(i) trade
secrets concerning the business and affairs of the Corporation, product
specifications, data, know-how, formulae, compositions, processes, designs,
sketches, photographs, graphs, drawings, samples, inventions and ideas, past,
current, and planned research and development, current and planned manufacturing
or distribution methods and processes, customer lists, current and anticipated
customer requirements, price lists, market studies, business plans, computer
software and programs (including object code and source code), computer software
and database technologies, systems, structures, and architectures (and related
formulae, compositions, processes, improvements, devices, know-how, inventions,
discoveries, concepts, ideas, designs, methods and information.

(ii) information
concerning the business and affairs of the Corporation (which includes
historical financial statements, financial projections and budgets, historical
and projected sales, capital spending budgets and plans, the names and
backgrounds of key personnel, personnel training and techniques and materials,
however documented); and

(iii) notes,
analyses, compilations, studies, summaries, and other material prepared by or
for the Corporation containing or based, in whole or in part, on any information
included in the foregoing.

 

4

 

(b) For the
purposes of this Section 5, “Consultant Invention” shall mean any idea,
invention, technique, modification, process, or improvement (whether patentable
or not), any industrial design (whether registerable or not), any mask work,
however fixed or encoded, that is suitable to be fixed, embedded or programmed
in a semiconductor product (whether recordable or not), and any work of
authorship (whether or not copyright protection may be obtained for it) created,
conceived, or developed by either of the Consultants, either solely or in
conjunction with each other or others, during the Consulting Period, or a period
that includes a portion of the Consulting Period, that relates in any way to, or
is useful in any manner in, the business then being conducted or proposed to be
conducted by the Corporation, and any such item created by either of the
Consultants, either solely or in conjunction with each other or others,
following termination of the Consultant’s Consulting Arrangement with the
Corporation, that is based upon or uses Confidential Information.

6. NON-COMPETITION
AND NON-INTERFERENCE

 

6.1 Acknowledgments
by the Consultant. Each of
the Consultants acknowledges that: (a) the services to be performed by each
of them under this Agreement are of a special, unique, unusual, extraordinary,
and intellectual character; (b) the Corporation competes with other
businesses that are or could be located in any part of the United States and
worldwide; (d) the provisions of this Section 6 are reasonable and
necessary to protect the Corporation’s business.

6.2 Covenants
of the Consultant. In
consideration of the acknowledgments by the Consultants, and in consideration of
the compensation and benefits to be paid or provided to each Consultant by the
Corporation, each Consultant covenants that each may,
directly or indirectly:

(a) during
the Consulting Period, except in the course of the Consulting Arrangement
hereunder, and during the Post-Consulting Period (as defined below), engage or
invest in, own, manage, operate, finance, control, or participate in the
ownership, management, operation, financing, or control of, be employed by,
associated with, or in any manner connected with, lend the Consultant’s name or
any similar name to, lend Consultant’s credit to or render services or advice
to, any business whose products or activities compete in whole or in part with
the products or activities of the Corporation anywhere within the United States;
provided, however, that the Consultant may purchase or otherwise acquire up to
(but not more than) one percent of any class of securities of any enterprise
(but without otherwise participating in the activities of such enterprise) if
such securities are listed on any national or regional securities exchange or
have been registered under Section 12(g) of the Securities Exchange Act of 1934;

(b) whether
for the Consultant’s own account or for the account of any other person, at any
time during the Consulting Period and the Post-Consulting Period, solicit
business of the same or similar type being carried on by the Corporation, from
any person known by the Consultant to be a customer of the Corporation, whether
or not the Consultant had personal contact with such person during and by reason
of the Consultant’s Consulting Arrangement with the Corporation;

(c) whether
for the Consultant’s own account or the account of any other person (i) at
any time during the Consulting Period and the Post-Consulting Period, solicit,
employ, or otherwise engage as an employee, independent contractor, or
otherwise, any person who is or was an employee of the Corporation at any time
during the Consulting Period or in any manner induce or attempt to induce any
employee of the Corporation to terminate the Consulting Arrangement with the
Corporation; or (ii) at any time during the Consulting Period and for three
years thereafter, interfere with the Corporation’s relationship with any person,
including any person who at any time during the Consulting Period was an
employee, contractor, supplier, or customer of the Corporation; or

5

(d) at any
time during or after the Consulting Period, disparage the Corporation or any of
its shareholders, directors, officers, employees, or agents.

For
purposes of this Section 6.2, the term “Post-Consulting Period” means the
three-year period beginning on the date of termination of the Consultants’
Consulting Arrangement with the Corporation.

If any
covenant in this Section 6.2 is held to be unreasonable, arbitrary, or against
public policy, such covenant will be considered to be divisible with respect to
scope, time, and geographic area, and such lesser scope, time, or geographic
area, or all of them, as a court of competent jurisdiction may determine to be
reasonable, not arbitrary, and not against public policy, will be effective,
binding, and enforceable against the Consultants.

The
period of time applicable to any covenant in this Section 6.2 will be extended
by the duration of any violation by each Consultant of such
covenant.

	7.  	
      NOTICES.
      All notices, consents, waivers, and other communications under this
      Agreement must be in writing and will be deemed to have been duly given
      when (a) delivered by hand (with written confirmation of receipt),
      (b) sent by facsimile (with written confirmation of receipt),
      provided that a copy is mailed by registered mail, return receipt
      requested, or (c) when received by the addressee, if sent by a
      nationally recognized overnight delivery service (receipt requested), in
      each case to the appropriate addresses and facsimile numbers set forth
      below (or to such other addresses and facsimile numbers as a party may
      designate by notice to the other parties). 

 

 

	If to the Corporation: 	Stan Yakatan 
	 	Chief Executive Officer
	 	Grant Life Sciences, Inc.
	 	64 East Winchester
	 	Suite 205
	 	Murray, UT 84107  
	 	 
	With a copy to:	Gregory Sichenzia, Esq.
	 	Sichenzia Ross Friedman Ference
  LLP
	 	1065 Avenue of the Americas, 21st
      Floor
	 	New York, NY 10018 
	 	 
	If to the Consultants:	Ravi Pottahil 
	 	8806 Cliffridge Avenue
	 	La Jolla, CA 92307
	 	Facsimile: (858)
777-3600

 

6

10. BINDING
EFFECT. This
Agreement shall extend to, shall inure to the benefit of and shall be binding
upon all the parties hereto and upon all of their respective heirs, successors
and representatives.

11. ENTIRE
AGREEMENT. This
Agreement, including the agreements incorporated by reference, contains the
entire Agreement among the parties hereto with respect to the matters
contemplated hereby and supersedes all prior agreements and undertakings between
the parties with respect to such matters. This Agreement may not be amended,
modified or terminated in whole or in part, except in writing, executed by each
of the parties hereto.

12. INDEMNIFICATION.
Each of
the Consultants hereby agrees to hold harmless and indemnify Corporation from
and against any and all loss, damage, expense, and cost (including reasonable
attorneys’ fees incurred in connection with the same) incurred by Corporation as
a result of either Consultant’s breach of any covenant or agreement made
herein.

 

13. SPECIFIC
PERFORMANCE. Each of the Consultants acknowledges that each of them
obligations hereunder are unique, and that it would be extremely impracticable
to measure the resulting damages if either of the Consultants should default in
either of their obligations under this Agreement. Accordingly, in the event of
the failure by either of the Consultants to perform each of
them obligations hereunder, which failure constitutes a breach hereof by
him/her, the Corporation may, in addition to any other available rights or
remedies, sue in equity for specific performance and, in connection with any
such suit, the Consultants expressly waive the defense therein that the
Corporation has an adequate remedy at law.

14. SEVERABILITY.
Should
any part of any provision of this Agreement be declared invalid by a court of
competent jurisdiction, such decision or determination shall not affect the
validity of any remaining portion of such provision or any other provision and
the remainder of the Agreement shall remain in full force and effect and shall
be construed in all respects as if such invalid or unenforceable provision or
portion thereof were not contained herein. In the event of a declaration of
invalidity, the provision or portion thereof declared invalid shall not
necessarily be invalidated in its entirety, but shall be observed and performed
by the parties to the Agreement to the extent such provision is valid and
enforceable.

15. 
SECTION HEADINGS. The
section headings contained herein are for convenience of reference only and
shall not be considered any part of the terms of this Agreement.

16. CHOICE
OF LAW. This
Agreement shall be interpreted and performed in accordance with the laws of the
State of Utah, and the parties agree, notwithstanding the principles of
conflicts of law, that the internal laws of the State of Utah shall govern and
control the validity, interpretation, performance, and enforcement of this
Agreement.

7

IN
WITNESS WHEREOF,
Consultants have hereunto put their hand, and the Corporation has caused this
instrument to be executed in its corporate name by its duly authorized officer,
all as of the day and year first above written.

	 	CONSULTANT:
	 	 
	 	/s/ Ravi Pottahil
	 	Ravi Pottahil Ph.D.
	 	 
	 	/s/ Indira Pottahil
	 	Indira Pottahil, Ph.D.
	 	 
	 	CORPORATION:
	 	 
	 	GRANT LIFE SCIENCES, INC.
	 	 
	 	By: /s/
      Stan Yakatan
	 	       Stan
      Yakatan, CEO
	 	 

 

8

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