Document:

exh10_10.htm

    

    ASSET
MANAGEMENT AGREEMENT

    

    This
ASSET MANAGEMENT AGREEMENT (this “Agreement”) is dated
as of this 29th day of February, 2008, between RRE PARK HILL HOLDINGS, LLC, a
Delaware limited liability company (the “Owner”), and RESOURCE
REAL ESTATE MANAGEMENT, LLC, a Delaware limited liability company (the “Manager”), with
reference to the following facts:

    

    RECITALS

    

    A.        
    Owner is the owner of a 288-unit multifamily project
(the “Property”) commonly
known as Park Hill Apartments located at 9939 Fredericksburg Road, San Antonio,
Texas.

    

    B.           
 The Property is subject to a non-recourse loan (the “Loan”) secured by a
deed of trust (the “Mortgage”) in favor
of Grandbridge Real Estate Capital LLC and/or Fannie Mae (together with its
successors and assigns, the “Lender”; and the Mortgage and other documents,
agreements and instruments evidencing, securing or delivered to the Lender in
connection with the Loan are collectively referred to herein as the “Loan
Documents”).

    

    C.           
 The Owner desires to engage the Manager to (i) oversee and supervise the
Property, and (ii) oversee the day-to-day management of the
Property.  The Manager may engage a local property manager, which may
be an affiliate of the Manager or a third party, which may further subcontract
some or all of these responsibilities, to directly manage, lease, operate and
maintain the Property on a day-to-day basis.

    

    1.             
Exclusive
Agency.  Owner hereby designates Manager to serve as the
"Property Manager" of the Property.  Manager shall have the exclusive
right and duty to rent, lease, operate and manage Property.  Upon the
terms hereinafter set forth for the period of one year beginning on the date
hereof, and thereafter for annual periods unless on or before the sixtieth
(60th) day
prior to the then expiration date of the term hereof, either party hereto shall
notify the other in writing of its intention to terminate this Agreement in
which case this Agreement shall terminate as of the end of the then current
term.

    

    Upon
termination of this Agreement, Manager shall turn over to Owner all books and
records and all leases and contracts pertaining to the Property.

    

    Notwithstanding
anything to the contrary herein, Manager may subcontract with a local property
manager to act as property manager for the Property.

    

    2.             
Manager’s
Obligations.  Manager and Owner acknowledge that Manager may
from time to time hereafter act as Manager for competing commercial projects and
is to use its best efforts to locate tenants and manage the Property on a basis
which is competitive with other projects it may hereafter manage in the San
Antonio, Texas area.  Manager accepts the obligations and provisions
of this Agreement and agrees:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (a)      
     Due
Diligence.  To use due diligence in the management of the
Property and performance of all duties and obligations of Manager in a
first-rate manner for the period and upon the terms herein provided, and agrees
to furnish or cause to be furnished the services of its organization for the
complete management of the Property, including but not limited to the renting,
operating, and care of the Property and negotiation of leases related
thereto.

    

    (b)       
    Vacancies.   To
advise Owner periodically as to vacant space and in reasonable detail as to the
physical condition of the Property, and of its competitive position with other
apartment complexes in the San Antonio, Texas region.

    

    (c)         
  Separate
Fund.  To deposit all receipts collected from the Property in a
trust account in a bank approved by Owner and insured by the Federal Deposit
Insurance Corporation, separate from Manager's personal account and to pay
expenses pursuant to an operating budget approved by Owner and to pay the
balance of such receipts pursuant to the instruments, documents and agreements
evidencing the Loan.   However, Manager will not be held liable
in the event of bankruptcy or failure of a depository.

    

    (d)          
 Negotiations
with Utility Companies.  To negotiate with utility companies
for competitive treatment with other projects in the respective area, if
applicable.

    

    (e)           
Operating Budget and
Marketing.  To prepare on an annual basis for Owner, if
appropriate, annual operating budgets for the Property and a marketing
plan.

    

    (f)            
Approval of
Owner.  Anything herein to the contrary notwithstanding, the
following decisions and actions of Manager shall be subject to the prior
approval of Owner:  determination of the amount and type of insurance
coverage and the company issuing the same; independent certified accountants;
settlements with insurance companies or condemning authorities involving amounts
in excess of $5,000 and the granting of any easements.

    

    (g)           
Inspection.  To
make periodic inspections of all space at the Property, in order to observe the
maintenance and condition thereof.  Owner shall reimburse Manager for
all travel expenses incurred in connection with such inspections or any other
business related to the management of the Property.

    

    (h)           
Personal Property
Inventory.  To maintain an inventory of all personal property
located on the Property.

    

    3.           
  Owner hereby gives Manager the following authority and
powers.  Owner agrees to assume the expenses in connection therewith
and Manager agrees to assume and undertake the following
responsibilities:

    

    (a)           
Rent
Collection.  To collect rents due or to become due; to serve in
the name of the Owner such notices as are deemed necessary by Manager to
institute and prosecute actions, to evict tenants and to recover possession of
said premises; from time to time to make rules and regulations pertaining to
tenants and to enforce the same and all other lease provisions; to advise Owner
of tenant complaints and steps taken to remedy the same; to sue and recover
rents and other sums due; and, when expedient, to settle, compromise and release
such actions or suits or reinstate such tenancies.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (b)      
     Repairs.  To
cause the Property to be maintained in a first-rate operating condition and to
assure that all equipment is kept in working order and that all service and
maintenance contracts are in force; to make or cause to be made and to supervise
preventive maintenance and repairs and alterations and to decorate on said
premises; to protect the Property from storms upon public warning; and to
purchase supplies at a reasonable price and pay all bills.  Manager
shall advise Owner of any violations of building codes and governmental
regulations and shall consult with Owner as to actions to be taken pertaining
thereto.  Notwithstanding anything herein to the contrary, Manager
shall not, without prior authority from Owner, make, cause to be made, contract
for, or agree to any one expenditure for repair the total cost of which will
exceed $5,000.  This restriction shall apply to the total cost of any
such repair even though undertaken on a partial completion or other basis, where
individual statements or vouchers would not exceed such sum, but where the
entire expenditures would, when the repair work is completed, exceed such
sum.

    
 

    (c)  
         Employees.  On
behalf of Owner, and subject to Owner's direction and approval, on the basis of
a job description and salary schedule, to train and supervise the work of and to
investigate, hire, pay and discharge employees and independent contractors
working on or on behalf of the Property, the cost of whose salaries and benefits
shall be borne by Owner.  Manager agrees to use due care and
businesslike prudence in the hiring of such employees and independent
contractors.

    

    (d)           
Insurance.  To
advise Owner as to insurance requirements and coverage and, if requested by
Owner, to procure such insurance coverage as Owner shall
request.  Manager shall promptly investigate and report to Owner all
accidents or claims for damage and shall cooperate with Owner in filing any
claims or defending any suits in connection therewith.  Owner shall
maintain workmen's compensation insurance on personnel employed under paragraph
3(c) and shall also maintain such public liability and other insurance as may be
required by law or this Agreement.  Owner authorizes Manager to
prepare for filing by Owner in the name of Owner, all federal, state and local
tax reports relating to the Property.  Owner reserves the right to
prepare any of such reports itself and shall advise Manager from time to time of
its decision to do so.

    

    (e)           
Compliance with Laws,
Regulations.  To be responsible for compliance with all
federal, state and local government laws, ordinances, rules, orders and
regulations pertaining to hiring, payment of wages, job conditions, social
security, taxes and withholdings; to prepare and file all forms, returns or
reports required by law; and to supervise and be responsible for all other
aspects of employee relations.

    

    (f)            
Service
Contracts.  To make, at a competitive price, on arm's length
and commercially reasonable terms, and enforce contracts for electricity, gas,
water, telephone, rubbish hauling, security, pest control, landscaping, and
other services or such of them as Manager shall deem advisable and to be
responsible for having such services rendered when needed and performed in an
efficient and proper manner.  Owner shall assume the obligations of
any contract so entered into at the termination of this
Agreement.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (g)       
    Professional
Personnel.  To retain, subject to Owner's approval and at
Owner's expense, accountants, attorneys and other professional advisors and
consultants and to authorize such persons to act on behalf of Owner in regard to
activities connected with the Property and Owner's duties with respect
thereto.

    

    (h)        
   Real
Estate Assessments.  To determine the fairness of all real
estate tax assessments and to make timely recommendations as to appropriate
action and, with Owner's approval, to take such action (including any appeals)
at Owner's cost, in timely fashion; and to advise Owner of the dates all taxes
are due, to cause timely payment to be made of such taxes out of Owner's funds
and to give Owner prompt notice of any need for additional funds.

    

    (i)           
 Monthly
Statements.  To maintain an adequate system of office records,
books and accounts with respect to Manager's functions and services hereunder in
accordance with generally accepted accounting principles and practices and to
permit examination by or on behalf of Owner, and to render monthly statements of
receipts, expenses and charges including a schedule of accounts receivable and
payable which shall be sufficiently detailed to reflect fairly the operations of
the Property and upon request of Owner shall include a reconciled bank statement
as of the end of each month, and to remit to Owner, on a monthly basis, receipts
less disbursements.  In the event the disbursements shall be in excess
of the rents collected by Manager, Owner hereby agrees to pay such excess
promptly upon demand of Manager, subject to the provisions of paragraph 8
hereof.

    

    4.        
     Tax
Payments.  Manager is hereby instructed and authorized to pay
property taxes, employee taxes and special assessments from Owner's funds to the
extent available from rental revenues received, except that, with the consent of
Owner, Manager shall not pay any taxes or assessments which Manager recommends
that Owner not pay and except further that Manager shall not pay any taxes or
assessments which Owner directs Manager to contest or refrain from
paying.  Owner reserves the right to pay any of any such taxes
directly and shall notify Manager of its decision to do so from time to
time.

    

    5.           
  Manager's
Authority to Act.  Manager represents to Owner that it has
obtained or will obtain and will keep in full force and effect during the term
hereof any licenses, permits or other governmental consents required of Manager
in order that Manager may fully perform its duties and obligations
hereunder.

    

    6.      
       Manager's
Compensation.   Owner shall pay Manager for its services
in performing its asset management responsibilities with respect to the Property
in accordance with the terms of this Agreement, an annual asset management fee,
payable monthly, equal to five percent (5%) of the Gross Revenue from the
Property (the “"Compensation").  Any
management fee due to any sub-property manager shall be paid by deducting such
amount from the Compensation.  As used herein, "Gross Revenue" shall
mean the entire amount of all revenue, determined on an accrual basis, from (a)
tenant rentals collected pursuant to tenant leases of apartment units, for each
month during the term hereof; provided that there shall be excluded from tenant
rentals any tenant security deposits (except as provided below); (b) cleaning,
tenant security and damage deposits forfeited by tenants in such period; (c)
laundry and vending machines income; (d) any and all other receipts from the
operation of the Property received and relating to the period in question; (e)
proceeds from rental interruption insurance, but not any other insurance
proceeds or proceeds from third-party damage claims, and (f) any other sums and
charges collected in connection with termination of the tenant
leases.  Gross Revenue does not include the proceeds of (i) any sale,
exchange, refinancing, condemnation, or other disposition of all or any part of
the Property, (ii) any loans to Owner whether or not secured by all or any part
of the Property, (iii) any capital expenditures or funds deposited to cover
costs of operations made by Owner, and (iv) any insurance policy (other than
rental interruption insurance or proceeds from third-party damage
claims).  Such compensation shall be in addition to all costs and
expenses for which Manager is to be reimbursed related to Manager's performance
of the obligations set forth in Section 3(a) through 3(i) of this Management
Agreement.  Any or all of the Compensation may be accrued until the
sale of the Property.  Notwithstanding the foregoing, Owner shall also
be responsible for paying any construction management fees that Manager is
obligated to pay to any sub-property mangers for the Property.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    7.      
       Notices.  Any
statement, notice, recommendation, request, demand, consent, or approval under
this Agreement shall be in writing and deemed delivered (a) if to Manager, when
delivered to Manager by personal receipted delivery, by United States certified
mail/return receipt requested, or by a recognized overnight courier properly
addressed to Manager (as set forth below), and, (b) if to Owner, when delivered
to Owner by personal receipted delivery, by United States certified mail/return
receipt requested, or by a recognized overnight courier properly addressed to
Owner (as set forth below).  Either party may, by written notice,
designate a different address.

    

    
      	 	
              To
      Owner:

            	
              RRE
      Park Hill Holdings, LLC

            

    

    c/o RCP
Park Hill Manager, LLC

    One
Crescent Drive, Suite 203

    Navy Yard
Corporate Center

    Philadelphia,
PA  19112

    Attn:  David
Bloom

    

    
      	 	
              To
      Manager:

            	
              Resource
      Real Estate Management, LLC.

            

    

    One
Crescent Drive, Suite 203

    Navy Yard
Corporate Center

    Philadelphia,
PA  19112

    Attn:  Alan
Feldman

    

    8.             
Indemnity.  Owner
shall (1) indemnify Manager and save Manager harmless from and against claims,
losses, expenses or liabilities by reason of any cause whatsoever either in and
about the Property or elsewhere resulting from Manager carrying out the
provisions of this Agreement or acting under the direction of Owner, unless such
damages or injuries result from the negligence or willful misconduct of Manager
or its employees; (2) reimburse Manager on demand for any monies which Manager
is required to pay out for any reason whatsoever, either in connection with or
as an expense in defense of any claim, civil or criminal action, proceeding,
charge or prosecution made, instituted or maintained against Manager or Owner,
jointly or severally, resulting from Manager carrying out the provisions of this
Agreement, or which affects or is due to the condition or use of the Property
except for any of the aforesaid resulting from the negligence and/or willful
misconduct of Manager or its employees; and (3) defend promptly and diligently,
at Owner's sole expense, any claim, action or proceeding brought against
Manager, or Manager and Owner jointly or severally, arising out of or in
connection with any of the foregoing; and to hold harmless and fully indemnify
Manager from any judgment, loss or settlement on account thereof, except for any
claim, action or proceeding resulting from the negligence or willful misconduct
of Manager or its employees or agents.  It is expressly understood and
agreed that the foregoing provisions of this paragraph shall survive the
termination of this Agreement.  As used in this paragraph, Manager
shall be deemed to include Manager’s officers, directors, shareholders and
employees.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    9.       
      Insurance.  Owner
shall include in each of its fire and extended coverage insurance policies
covering the Property a waiver of the insured's right of subrogation against
Manager.  Owner shall list Manager as an additional insured, but not a
party to whom any loss shall be payable, in any policy of general liability
insurance in connection with the Property.  Owner shall furnish
Manager with a copy of any such policy within thirty (30) days of assumption by
Manager of its duties hereunder.  It is further understood and agreed
that thirty (30) days written notice be given Manager in the event of
cancellation or reduction in coverage of said policies.

    

    10.     
      Defaults.  The
occurrence of any one or more of the following acts or events with respect to
either party, which act or event shall continue for 15 days after written notice
from the other party, shall be a violation of this Agreement which shall entitle
the other party to immediately terminate this Agreement by notice to such
defaulting party, whereupon, after giving of such notice, this Agreement shall
terminate without further liability on the part of either party (except Owner's
obligation to pay to Manager its Compensation and reimbursement of expenses
incurred by Manager, for which documentation has been submitted, up to the date
of termination) and Manager shall forthwith turn over all books, records, leases
and contracts relating to the property to Owner:  (1) an admission in
writing by either party of its inability to pay its debts generally as they
become due; (2) the filing by or against either party (and if against either
party, if the same is not withdrawn, discharged or otherwise terminated within
sixty (60) days), of a petition in bankruptcy for reorganization or to take
advantage of an insolvency statute; (3) an assignment for the benefit of either
party's creditors; (4) a consent by either party to the appointment of a
receiver of itself or of the whole or any substantial part of its property; or
(5) the failure to comply with any of the terms and/or conditions contained in
this Agreement.

    

    11.       
    Independent
Contractor.  Notwithstanding anything herein to the contrary,
the relationship of Manager (and any and all employees or persons utilized) and
Owner shall be that of independent contractor and in no event shall the
relationship between Owner and Manager be deemed to be that of
employer-employee, joint venture or partnership.

    

    Nothing
in this Agreement or in any other instrument shall cause Manager in any way to
be construed as a partner, joint venturer or associated in any way with Owner in
the ownership of the Property or subject Manager to any obligation, loss, charge
or expense connected with or arising from the ownership of said Property or part
thereof.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    12.     
      Miscellaneous.

    

    (a)      
     Each provision of this Agreement is intended to be
severable.  If any term or provision hereof shall be determined by a
court of competent jurisdiction to be illegal or invalid for any reason
whatsoever, such provision shall be severed from this Agreement and shall not
affect the validity of the remainder of this Agreement.

    

    (b)       
    In the event either of the parties to this Agreement
shall institute any action or proceeding against the other party relating to
this Agreement, the unsuccessful party in such action or proceeding shall
reimburse the successful party for its disbursements incurred in connection
therewith and for its reasonable attorney’s fees.  If not paid when
due, any unpaid amounts due under this Agreement shall accrue interest at a rate
of one percent (1%) per month, or the maximum interest rate as then permitted by
applicable law, if lesser.

    

    (c)        
   No consent or waiver, express or implied, by either party
hereto of any breach or default by the other party in the performance by the
other of its obligations hereunder shall be valid unless in writing, and no such
consent or waiver shall be deemed or construed to be a consent or waiver to or
of any other breach or default in the performance by such other party of the
same or any other obligations of such party hereunder.  Failure on the
part of either party to give notice of any act or failure to act of the other
party or to declare the other party in default, regardless of how long such
failure continues, shall not constitute a waiver by such party of its rights
hereunder.  The granting of any consent or approval in any one
instance by or on behalf of Owner shall not be construed to waive or limit the
need for such consent in any other or subsequent instance.

    

    (d)    
       The venue of any action or proceeding
brought by either party against the other arising out of this Agreement shall,
to the extent legally permissible, be in Philadelphia,
Pennsylvania.

    

    (e)      
     Owner and Manager agree that the Property will be
offered for lease in compliance with all applicable federal, state, and local
anti-discrimination laws and regulations.

    

    (f)       
     Owner agrees (i) that Manager shall have no
responsibility or liability to any person or entity (including any governmental
authority) arising out of the presence of any adverse physical or environmental
conditions affecting the Property including, but not limited to (a) structural,
mechanical, and soil conditions, and (b) the presence and location of asbestos,
if any, PCB transformers, if any, and other hazardous substances or underground
storage tanks on or about the Property, (unless the condition is caused by
Manager, its agents or employees), or out of any non-disclosure thereof by
Manager pursuant to Owner’s requirements, and (ii) to indemnify and hold
harmless Manager from and against all claims, damages, liabilities and expenses
made or incurred by lessees, leasing prospects and/or others claiming damage or
loss as a result of (A) the presence of any such physical or environmental
conditions; (B) Owner’s failure to disclose same to Manager; and/or (C) any
requirement of Owner which has the effect of prohibiting Manager from disclosing
to any leasing prospect the existence of any such physical  or
environmental conditions affecting the Property where the failure to make such
disclosure gives rise to a claim of liability for damage or loss by such lessee
or leasing prospect, provided the indemnity under the preceding clause (A) shall
not apply to any claim asserted against Manager arising out of Manager’s failure
to disclose any such matter to a leasing prospect where the matter at issue was
in fact disclosed by Owner to Manager Agent and where Owner authorized Manager
to disclose such matter to such leasing prospect, but Manager, nevertheless,
failed to make such disclosure to such leasing prospect.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    (g)     
      This Agreement embodies the entire agreement
between Owner and Manager as to the subject matter herein contained and any
amendment, modification or supplement to this Agreement must be in writing and
signed by all of the parties hereto.

    

    (h)       
    This Agreement shall be binding upon the successors and
assigns of Manager and Owner, and shall be governed by the law of the
Commonwealth of Pennsylvania.

    

    (i)          
  Captions and paragraph headings used herein are for convenience only
and are not part of this Agreement and shall not be used in construing
it.

    

    (j)     
       This Agreement may be executed in one
or more counterparts, all of which, taken together, shall constitute a complete
original Agreement.

    

    13.       
    Lender
Provisions.  For so long as Lender is the holder of the Loan,
following an Event of Default under the Mortgage (after the expiration of any
notice and cure periods under the Mortgage, if any), the holder of the Mortgage,
at its option, may terminate this Agreement, without penalty, by delivering
written notice of such termination to Owner and Manager.

    

    

    [SIGNATURES
CONTAINED ON FOLLOWING PAGE]

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, each party has caused its duly authorized representatives to
execute and deliver this Asset Management Agreement as of the date first above
written.

    

    
      	 
      	
              OWNER:

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
              RRE
      PARK HILL HOLDINGS, LLC, a Delaware limited liability
    company

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
              By:

            	
              RCP
      Park Hill Manager, LLC, its manager

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
              By:

            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	
              Name:

            	 
      	 
      
	 
      	 
      	 
      	 
      	
              Title:

            	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
              MANAGER:

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
              RESOURCE
      REAL ESTATE MANAGEMENT, LLC, a Delaware limited liability
      company

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
              By:

            	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
              Name:

            	 
      	 
      
	 
      	 
      	
              Title:

            	 
      	 
      

    

     

     

    9jbc_ex10-1.htm

    Exhibit 10.1

     

     

     

    EXCLUSIVE LICENSE
AGREEMENT

     

     

    This
Exclusive License Agreement and the attached Appendix A (collectively, the
“Agreement”) is made and is effective this 26th day of
September 2008 (the "Effective Date") between THE REGENTS OF THE UNIVERSITY OF
CALIFORNIA ("The Regents"), a California corporation having its corporate
offices located at 1111 Franklin Street, Oakland, California 94607-5200, acting
through The Office of Intellectual Property Administration of the University of
California, Los Angeles, located at 11000 Kinross Avenue, Suite 200, Los
Angeles, CA 90095-1406 and Entest BioMedical Inc. ("Licensee"), a corporation
having a principal place of business at 1010 University Avenue #40, San Diego, CA
92103.

     

    RECITALS

     

     

    WHEREAS,
a certain invention (the "Invention"), generally characterized as “SCREENING
TEST FOR GESTATIONAL DIABETES MELLITUS” (UCLA Case No. 2007-523) was made in the
course of research at the University of California, Los Angeles by Brian J.
Koos, and is and claimed in Regents' Patent Rights as defined
below;

     

    WHEREAS,
Brian J. Koos is an employee of The Regents and as such is obligated to assign
his/her right, title and interest in and to the Invention to The
Regents;

     

    WHEREAS,
The Regents wishes that Regents' Patent Rights be developed and utilized to the
fullest extent so that the benefits can be enjoyed by the general
public.

     

    WHEREAS,
Licensee is a "small business concern" as defined in 15 U.S.C. §§632;
and

     

    The
parties agree as follows:

     

    1.  DEFINITIONS

     

    
      	
              1.1

            	
              "Regents'
      Patent Rights" means The Regents’ interest in any of the patent
      applications listed in Appendix A attached to this Agreement and assigned
      to The Regents (UCLA Case No. 2007-523); any continuing applications
      thereof including divisions; but excluding continuations-in-part except to
      the extent of claims entirely supported in the specification and entitled
      to the priority date of the parent application; any patents issuing on
      these applications including reissues and reexaminations; and any
      corresponding foreign patents or patent applications; all of which will be
      automatically incorporated in and added to Appendix A and made a part of
      this Agreement.

            
	 
      	 
      
	
              1.2

            	
              "Licensed
      Product" means any article, composition, apparatus, substance, chemical,
      or any other material covered by Regents' Patent Rights or whose
      manufacture, use or sale would, absent the license granted under this
      Agreement, constitute an infringement, inducement of infringement, or
      contributory infringement, of any claim within Regents' Patent Rights, or
      any service, article, composition, apparatus, chemical, substance, or any
      other material made, used, or sold by or utilizing or practicing a
      Licensed Method. This definition of Licensed Product also includes a
      service either used by Licensee or sublicensee or provided by Licensee or
      sublicensee to its customers when such service requires the use of
      Licensed Product or performance of Licensed Method. If the Licensed
      Product is a component of another product such as a kit, composition of
      matter or combination, such kit, composition of matter or combination is
      deemed to be the Licensed Product for purposes of this Agreement.
      Likewise, if the Licensee or sublicensees receives a Licensed Product for
      incorporation into another product intended for sales, transfer, lease or
      other disposition, then, for the purposes of this Agreement, the Licensed
      Product is the product intended for sale, transfer, lease, or other
      disposition by recipient Licensee or
  sublicensee.

            

    

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    
      	
              1.3

            	
              "Licensed
      Method" means any process, service, or method which is covered by Regents'
      Patent Rights or whose use or practice would, absent the license granted
      under this Agreement, constitute an infringement, inducement of
      infringement, or contributory infringement, of any claim within Regents'
      Patent Rights.

            
	 
      	 
      
	
              1.4

            	
              The
      "Field of Use" means all fields of use.

            
	 
      	 
      
	
              1.5

            	
              "
      Affiliate " means any corporation or other business entity in which
      Licensee owns or controls, directly or indirectly, at least fifty percent
      (50%) of the outstanding stock or other voting rights entitled to elect
      directors. In any country where the local law does not permit foreign
      equity participation of at least fifty percent (50%), then "Affiliate"
      means any company in which Licensee owns or controls, directly or
      indirectly, the maximum percentage of outstanding stock or voting rights
      that is permitted by local law.

            
	 
      	 
      
	
              1.6

            	
              “Joint
      Venture” means any separate entity established pursuant to an agreement
      between a third party and the Licensee and/or Sublicensee to constitute a
      vehicle for a Joint Venture, in which the separate entity manufactures,
      uses, purchases, Sells or acquires Licensed Products from the Licensee or
      Sublicensee. Each reference to Licensee herein will be meant to include
      its Joint Venture(s), and Licensee will be responsible for all obligations
      of its Joint Ventures.

            
	 
      	 
      
	
              1.7

            	
              "First
      Commercial Sale" means the first sale of any Licensed Product by Licensee
      or sublicensee, following approval of it's marketing by the appropriate
      governmental agency for the country in which the sale is to be made. When
      governmental approval is not required, "First Commercial Sale" means the
      first sale in that country.

            
	 
      	 
      
	
              1.8

            	
              "Final
      Sale" means any sale, transfer, lease, exchange or other disposition or
      provision of a Licensed Product and/or a Licensed Method to a Customer by
      a Licensee or Sublicensee. A Final Sale will be deemed to have occurred
      upon the earliest to occur of the following (as applicable): (a) the
      transfer of title to such Licensed Product and/or Licensed Method to a
      Customer, (b) the shipment of such Licensed Product to a Customer, (c) the
      provision of a Licensed Method to a Customer, (d) the provision of an
      invoice for such Licensed Product or Licensed Method to a Customer, or (e)
      payment by the Customer for Licensed Products or Licensed Methods.
      Exchange of Licensed Products between Licensee and sublicense(s) is not a
      Final Sale if the Licensed Product is intended for further sale, transfer,
      lease, exchange or other disposition and instead the Final Sale will be
      deemed to have occurred upon sale, transfer, lease, exchange or other
      disposition or provision of Licensed Product by recipient to the Customer.
      If the Licensee or sublicense transfers Licensed Product at no cost during
      a clinical study, clinical trial, or as a free sample in product
      promotion, then such sale will not be considered a Final Sale and no
      royalty will be owed hereunder.

            

    

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    
      	
              1.9

            	
              "Net
      Sales" means the total of the gross amount invoiced or otherwise charged
      (whether consisting of cash or any other forms of consideration) for all
      Final Sales, less the following deductions (to the extent included in and
      not already deducted from the gross amount invoiced or otherwise charged)
      to the extent reasonable and customary: cash, trade or quantity discounts
      actually granted to Customers; sales, use, tariff, import/export duties or
      other excise taxes imposed on particular sales, and value added taxes
      (“vat”) to the extent that such vat is incurred and not reimbursed,
      refunded, or credited under a tax authority; and allowances or credits to
      Customers because of rejections or returns. Income taxes are not an
      allowed deduction under Net Sales. If the Licensee, a sublicense,
      development partner or Joint Venture is a Customer, then Licensee will pay
      royalties on Net sales based on the total gross amount normally charged to
      other Customers in arms length transactions.

            
	 
      	 
      
	
              1.10

            	
              Sublicensee"
      means any party sublicensed by Licensee to make, have made, use, sell,
      offer for sale or import any Licensed Product or to practice any Licensed
      Method.

            
	 
      	 
      
	
              1.11

            	
              "Sublicensing
      Income" means income received by Licensee under or on account of
      sublicenses. Sublicensing Income includes income received from
      Sublicensees attributable to the licensed Invention in the form of license
      issue fees, milestone payments, and the like but specifically excludes
      royalties on the sale or distribution of Licensed Products or the practice
      of Licensed Methods. Not included in the definition of Sublicensing Income
      is income received by Licensee as payment or reimbursement for research
      costs applied to the licensed Invention and conducted by or for Licensee,
      including costs of materials, equipment or clinical
    testing.

            
	 
      	 
      
	
              1.12

            	
              “Customer”
      means any individual or entity that receives Licensed Products or Licensed
      Methods, provided however, that Licensee or sublicensee shall be deemed a
      Customer only if it receives Licensed Products or Licensed Method that are
      not intended for further sale, transfer, lease, exchange or other
      disposition.

            
	 
      	 
      
	
              2.
  GRANT

            
	 
      	 
      
	
              2.1

            	
              Subject
      to the limitations set forth in this Agreement, The Regents hereby grants
      to Licensee an exclusive license (the "License") under Regents' Patent
      Rights, in jurisdictions where Regents' Patent Rights exist, to make, have
      made, use, sell, offer for sale and import Licensed Products and to
      practice Licensed Methods in the Field of Use to the extent permitted by
      law. The Licensee will not make, use, sell, import, or offer for sale,
      Licensed Products outside the Field of Use.

            
	 
      	 
      
	
              2.2

            	
              The
      Regents expressly reserves the right to: (a) use Regents' Patent Rights
      and associated technology for educational and research purposes, clinical
      research, and research sponsored by commercial entities (b) to publicly
      disclose research results, and (c) allow other non-profit research
      institutions to use Regents' Patent Rights and associated technology for
      the same purposes as (a) and (b).

            
	 
      	 
      
	
              2.3

            	
              The
      Agreement will terminate immediately if Licensee files a claim including
      in any way the assertion that any portion of Regents’ Patent Rights is
      invalid or unenforceable where the filing is by the Licensee, a third
      party on behalf of the Licensee, or a third party at the written urging of
      the Licensee

            

    

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    
      	
              3.
      SUBLICENSES

            
	 
      	 
      
	
              3.1

            	
              The
      Regents also grants to Licensee the right to issue exclusive or
      nonexclusive sublicenses ("Sublicenses") to third parties to make, have
      made, use, sell, offer for sale or import Licensed Products and to
      practice Licensed Methods in any jurisdiction in which Licensee has
      exclusive rights under this Agreement, but Sublicenses will not include
      further right to sublicense on the part of the Sublicensee. Each
      Sublicense will be issued in writing. To the extent applicable,
      sublicenses must include all of the rights of and will require the
      performance of obligations due to The Regents (and, if applicable, the
      U.S. Government under 35 U.S. C. §§201-212) contained in this Agreement.
      Affiliates have no rights hereunder, unless, granted a Sublicense. For the
      purposes of this Agreement, operations of Sublicensees are deemed to be
      the operations of the Licensee, for which the Licensee is
      responsible.

            
	 
      	 
      
	
              3.2

            	
              Licensee
      must pay to The Regents Twenty-five percent (25%) of all Sublicensing
      Income.

            
	 
      	 
      
	
              3.3

            	
              On
      Net Sales of Licensed Products sold or disposed of by a Sublicensee,
      Licensee must pay to The Regents an earned royalty in accordance with
      Article 5 (Royalties) as if these were Licensee's Net Sales. Any royalties
      received by Licensee in excess of royalties due to The Regents under this
      Paragraph 3.3 belong to Licensee.

            
	 
      	 
      
	
              3.4

            	
              Licensee
      must provide to The Regents a copy of each Sublicense within thirty (30)
      days of execution, and a copy of all information submitted to Licensee by
      Sublicensees relevant to the computation of the payments due to The
      Regents under this Article 3.

            
	 
      	 
      
	
              3.5

            	
              If
      this Agreement is terminated for any reason, all outstanding Sublicenses
      not in default will be assigned by Licensee to The Regents, at the option
      of The Regents. The Sublicenses will remain in full force and effect with
      The Regents as the licensor or sublicensor instead of Licensee, but the
      duties of The Regents under the assigned Sublicenses will not be greater
      than the duties of The Regents under this Agreement, and the rights of The
      Regents under the assigned Sublicenses will not be less than the rights of
      The Regents under this Agreement, including all financial consideration
      and other rights of The Regents.

            
	 
      	 
      
	
              4.
  FEES

            
	 
      	 
      
	
              4.1

            	
              In
      partial consideration for the License, Licensee will pay to The Regents a
      license issue fee of Five thousand dollars ($5,000) within thirty (30)
      days of the Effective Date. This fee is nonrefundable and is not an
      advance against royalties.

            
	 
      	 
      
	
              4.2

            	
              Licensee
      must pay to The Regents a license maintenance fee of Five thousand dollars
      ($5,000) beginning on the one-year anniversary date of the Effective Date
      of this Agreement and continuing annually on each anniversary date of the
      Effective Date. The maintenance fee will not be due and payable on any
      anniversary date of the Effective Date if on that date Licensee is
      commercially selling a Licensed Product and paying an earned royalty to
      The Regents on the sales of that Licensed Product. The license maintenance
      fees are non-refundable and are not an advance against
      royalties.

            

    

    

     

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    5.     ROYALTIES

     

    
      	
              5.1

            	
              Licensee
      must pay to The Regents for sales by Licensee and sublicensees an earned
      royalty of Six percent (6%) of Net Sales of Licensed Products or Licensed
      Methods.

            
	 
      	 
      
	
              5.2

            	
              Licensee
      must pay to The Regents a minimum annual royalty of Fifty thousand dollars
      ($50,000) for the life of Regents' Patent Rights, beginning one year after
      the First Commercial Sale of Licensed Product. Licensee must pay the
      minimum annual royalty to The Regents by February 28 of each year. The
      minimum annual royalty will be credited against the earned royalty due and
      owing for the calendar year in which the minimum payment was
      made.

            
	 
      	 
      
	
              5.3

            	
              Royalties
      are payable on products covered by pending patent applications and issued
      patents. Royalties accrue for the duration of this
    Agreement.

            
	 
      	 
      
	
              5.4

            	
              Licensee
      must pay royalties owed to The Regents on a quarterly basis. Licensee must
      pay the royalties within two (2) months of the end of the calendar quarter
      in which the royalties accrued.

            
	 
      	 
      
	
              5.5

            	
              All
      monies due The Regents must be paid in United States funds. When Licensed
      Products are sold for monies other than United States dollars, the
      royalties will first be determined in the currency of the country in which
      the Licensed Products were sold and, second, converted into equivalent
      United States funds. Licensee will use the exchange rate established by
      the Bank of America in San Francisco, California on the last day of the
      calendar quarter.

            
	 
      	 
      
	
              5.6

            	
              Any
      tax for the account of The Regents required to be withheld by Licensee
      under the laws of any foreign country must be promptly paid by Licensee
      for and on behalf of The Regents to the appropriate governmental
      authority. Licensee will use its best efforts to furnish The Regents with
      proof of payment of any tax. Licensee is responsible for all bank transfer
      charges. All payments made by Licensee in fulfillment of The Regents' tax
      liability in any particular country will be credited against fees or
      royalties due The Regents for that country.

            
	 
      	 
      
	
              5.7

            	
              If
      at any time legal restrictions prevent the acquisition or prompt
      remittance of United States Dollars by Licensee with respect to any
      country where a Licensed Product is sold, the Licensee shall pay royalties
      due to The Regents from Licensee’s other sources of United States
      Dollars.

            
	 
      	 
      
	
              5.8

            	
              If
      any patent or any claim included in Regents' Patent Rights is held invalid
      or unenforceable in a final decision by a court of competent jurisdiction
      from which no appeal has or can be taken, all obligation to pay royalties
      based on that patent or claim or any claim patentably indistinct from it
      will cease as of the date of that final decision. Licensee will not,
      however, be relieved from paying any royalties that accrued before that
      decision or that is based on another patent or claim not involved in that
      decision.

            
	 
      	 
      
	
              6.
    DILIGENCE

            
	 
      	 
      
	
              6.1

            	
              Upon
      the execution of this Agreement, Licensee must diligently proceed with the
      development, manufacture and sale ("Commercialization") of Licensed
      Products and must earnestly and diligently endeavor to market them within
      a reasonable time after execution of this Agreement and in quantities
      sufficient to meet the market demands for
them.

            

    

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    
      	
              6.2

            	
              Licensee
      must endeavor to obtain all necessary governmental approvals for the
      Commercialization of Licensed Products.

            
	 
      	 
      	 
      
	
              6.3

            	
              The
      Regents has the right and option to either terminate this Agreement or
      reduce Licensee’s exclusive license to a nonexclusive license if Licensee
      fails to perform any of the terms in this Paragraph 6.3. This right, if
      exercised by The Regents, supersedes the rights granted in Article 2
      (Grant).

            
	 
      	 
      	 
      
	 
      	
              6.3a

            	
              Initiate
      a study in humans to measure D-chiro-inositol (“DBI”) throughout pregnancy
      and correlate DBI levels with conventional gestational diabetes mellitus
      (“GDM”) assays to determine value of DBI in predicting GDM by September 1,
      2010.

            
	 
      	 
      	 
      
	 
      	
              6.3b

            	
              Complete
      a study in humans to measure D-chiro-inositol (“DBI”) throughout pregnancy
      and correlate DBI levels with conventional gestational diabetes mellitus
      (“GDM”) assays to determine value of DBI in predicting GDM by September 1,
      2011.

            
	 
      	 
      	 
      
	 
      	
              6.3c

            	
              Complete
      a study to measure plasma DBI levels in samples from the Hyperglycemia and
      Adverse Pregnancy Outcomes (HAPO) study and correlate these DBI levels to
      GDM incidence by June 1, 2012.

            
	 
      	 
      	 
      
	 
      	
              6.3d

            	
              Complete
      a prospective human study on DBI and its value in predicting GDM by June
      1, 2013.

            
	 
      	 
      	 
      
	 
      	
              6.3e

            	
              Develop
      a urine-based test for assaying DBI by September 1,
  2015.

            
	 
      	 
      	 
      
	 
      	
              6.3f

            	
              First
      Commercial Sale of a Licensed Product by September 1,
  2017.

            
	 
      	 
      	 
      
	
              6.4

            	
              Licensee
      has the sole discretion for making all decisions as to how to
      commercialize any Licensed Product.

            
	 
      	 
      	 
      
	
              7. PATENT FILING, PROSECUTION
      AND MAINTENANCE

            
	 
      	 
      	 
      
	
              7.1

            	
              As
      long as Licensee is current in reimbursing patent prosecution costs, The
      Regents will file, prosecute and maintain the patents and applications
      comprising Regents' Patent Rights. These patents will be held in the name
      of The Regents and will be obtained with counsel of The Regents' choice.
      The Regents must provide Licensee with copies of each patent application,
      office action, response to office action, request for terminal disclaimer,
      and request for reissue or reexamination of any patent or patent
      application under Regents' Patent Rights. The Regents will consider any
      comments or suggestions by Licensee and will use reasonable efforts to
      amend patent applications to include claims reasonably requested by the
      License to protect the products and services contemplated under this
      Agreement. The Regents is entitled to take action to preserve rights and
      minimize costs whether or not Licensee has commented.

            
	 
      	 
      	 
      
	
              7.2

            	
              Patent
      Costs.

            

    

    

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    
      	
              7.2.1

            	
              Licensee
      will bear all costs incurred prior to this Agreement as well as during the
      term of this Agreement for territories elected by Licensee pursuant to
      Section 7.3 of this Agreement, and invoiced to The Regents in the
      preparation, filing, prosecution and maintenance of patent applications
      and patents in Regents' Patent Rights. Prosecution includes interferences,
      oppositions and any other inter partes matters originating in a patent
      office. Licensee must send payment to The Regents within thirty (30) days
      after Licensee's receipt of an invoice.

            
	 
      	 
      
	
              7.2.2

            	
              The
      Regents will use reasonable efforts to give Licensee estimates in advance
      for patent actions costing more than two thousand dollars ($2,000) in
      order to get input from Licensee regarding the performance of such
      activity and cost control. Reasonable efforts pursuant to this Paragraph
      7.2.2 shall include: (A) providing to Licensee, after receipt by The
      Regents from The Regents’ outside counsel, copies of all estimates for
      fees and expenses to the extent such documents were not previously
      provided to Licensee by Regents’ outside counsel and (B) instructing its
      outside counsel to directly forward to Licensee, at the same time as its
      outside counsel forwards to The Regents and using the same means that The
      Regents’ outside counsel uses to forward to The Regents, copies of all
      estimates for fees and expenses. No later than (A) ten (10) weeks prior to
      the relevant patent action deadline (for example a patent filing bar date
      or an office action response deadline); or (B) within ten (10) business
      days of The Regents supplying the relevant cost estimate, whichever is
      first, Licensee will inform The Regents in writing whether or not it
      elects to proceed with the relevant patent action. If, based on the cost
      estimate, Licensee elects not to proceed with the relevant patent action
      such patent applications or the patents to which the office action
      applies, will then no longer be subject to this Agreement, and The Regents
      will be free to negotiate an agreement such as an option or license with
      another party for these patent applications or patent (s). The Regents
      will also instruct its outside counsel to send to Licensee a duplicate
      copy of each invoice sent by The Regents’ outside counsel to The Regents.
      Licensee will have fifteen (15) business days from the effective date of
      delivery of the invoice or billing statement pursuant to Article
      19(LIMITATION OF LIABILITY), to notify The Regents if Licensee believes
      there are any inaccurate, excessive, or questionable charges on such
      invoice or billing statement. For purposes of clarity it is understood
      that The Regents cannot guarantee that its outside counsel will adhere to
      these instructions.

            
	 
      	 
      
	
              7.3

            	
              Licensee
      has the right to request patent prosecution on the Invention in foreign
      countries if the rights are available. Licensee must notify The Regents of
      its decision no later than three (3) months prior to the Chapter Two
      Demand and no later than three (3) months prior to the National Phase
      filing date indicating which territories they wish to select for
      prosecution. This notice must be in writing and must identify the
      countries desired. With the notice of election the Licensee must pay in
      advance The Regents patent counsel’s estimated cost of the Chapter Two
      Demand or the entry into National Phase in the requested territories. The
      absence of this notice and advance payment either for Chapter Two or for
      National Phase from Licensee to The Regents will be considered an election
      not to secure the foreign rights associated with the specific phase of
      patent prosecution.

            
	 
      	 
      
	
              7.4

            	
              Three
      (3) months before the Chapter Two Demand and three (3) months before
      National Phase filing, but not sooner, The Regents will have the right to
      file patent applications at its own expense in any country which Licensee
      has not identified in written notice provided by Paragraph 7.3. These
      applications and resulting patents will not be part of Regents Patent
      Rights and therefore not subject to this
  Agreement.

            

    

    

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    
      	
              7.5

            	
              Licensee's
      obligation to underwrite and to pay all United States and foreign patent
      costs will continue for as long as this Agreement remains in effect.
      Licensee may terminate its obligations with respect to any given patent
      application or patent upon three (3) months written notice to The Regents.
      The Regents will use its best efforts to curtail patent costs chargeable
      to Licensee under this Agreement after this notice is received from
      Licensee. The Regents may continue prosecution or maintenance of these
      application(s) or patent(s) at its sole discretion and expense, and
      Licensee will have no further rights or licenses to
  them.

            
	 
      	 
      
	 
      	 
      
	
              7.6

            	
              The
      Regents will use its best efforts to not allow any Regents' Patent Rights
      for which Licensee is licensed and is underwriting the costs of to lapse
      or become abandoned without Licensee's written authorization under
      Paragraph 7.5 or reasonable notice, except for the filing of
      continuations, divisionals, or the like which substitute for the lapsed
      application.

            
	 
      	 
      
	
              8. PATENT
      INFRINGEMENT

            
	 
      	 
      
	
              8.1

            	
              In
      the event that The Regents (to the extent of the actual knowledge of the
      licensing professional responsible for the administration of this
      Agreement) or the Licensee learns of infringement of potential commercial
      significance of any patent licensed under this Agreement, the
      knowledgeable party will provide the other (i) with written notice of such
      infringement and (ii) with any evidence of such infringement available to
      it (the “Infringement Notice”). During the period in which, and in the
      jurisdiction where, the Licensee has exclusive rights under this
      Agreement, neither The Regents nor the Licensee will notify a third party
      (including the infringer) of infringement or put such third party on
      notice of the existence of any Regents’ Patent Rights without first
      obtaining consent of the other. If the Licensee puts such infringer on
      notice of the existence of any Regents’ Patent Rights with respect to such
      infringement without first obtaining the written consent of The Regents
      and if a declaratory judgment action is filed by such infringer against
      The Regents, then Licensee's right to initiate a suit against such
      infringer for infringement under Paragraph 8.2 below will terminate
      immediately without the obligation of The Regents to provide notice to the
      Licensee. Both The Regents and the Licensee will use their diligent
      efforts to cooperate with each other to terminate such infringement
      without litigation.

            
	 
      	 
      
	
              8.2

            	
              If
      infringing activity of potential commercial significance by the infringer
      has not been abated within ninety (90) days following the date the
      Infringement Notice takes effect, then the Licensee may institute suit for
      patent infringement against the infringer. The Regents may voluntarily
      join such suit at its own expense, but may not thereafter commence suit
      against the infringer for the acts of infringement that are the subject of
      the Licensee’s suit or any judgment rendered in the suit. The Licensee may
      not join The Regents in a suit initiated by Licensee without The Regents’
      prior written consent. If, in a suit initiated by the Licensee, The
      Regents is involuntarily joined other than by the Licensee, then the
      Licensee will pay any costs incurred by The Regents arising out of such
      suit, including but not limited to, any legal fees of counsel that The
      Regents selects and retains to represent it in the
  suit.

            

    

    

    

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    
      	
              8.3

            	
              If,
      within a hundred and twenty (120) days following the date the Infringement
      Notice takes effect, infringing activity of potential commercial
      significance by the infringer has not been abated and if the Licensee has
      not brought suit against the infringer, then The Regents may institute
      such suit for patent infringement against the infringer. If The Regents
      institutes such suit, then the Licensee may not join such suit without The
      Regents consent and may not thereafter commence suit against the infringer
      for acts of infringement that are subject to The Regents suit or any
      judgment rendered in that suit.

            
	 
      	 
      	 
      
	
              8.4

            	
              Any
      recovery or settlement received in connection with any suit will first be
      shared by The Regents and the Licensee equally to cover any litigation
      costs each incurred and next shall be paid to The Regents or the Licensee
      to cover any litigation costs it incurred in excess of the litigation
      costs of the other. In any suit initiated by the Licensee, any recovery in
      excess of litigation costs will be shared between Licensee and The Regents
      as follows: (a) for any recovery other than amounts paid for willful
      infringement: (i) The Regents will receive five percent (5%) of the
      recovery if The Regents was not a party in the litigation and did not
      incur any litigation costs, (ii) The Regents will receive twenty-five
      percent (25%) if The Regents was party in the litigation, but did not
      incur any litigation costs, including provisions of Paragraph 8.2 above,
      and (iii) The Regents will receive fifty percent (50%) of the recovery if
      The Regents incurred any litigation costs in connection with the
      litigation; and (b) for any recovery for willful infringement, The Regents
      will receive fifty percent (50%) of the recovery. In any suit initiated by
      The Regents, any recovery in excess of litigation costs will belong to The
      Regents. The Regents and the Licensee agree to be bound by all
      determinations of patent infringement, validity and enforceability (but no
      other issue) resolved by any adjudicated judgment in a suit brought in
      compliance with this Article 8 (Patent Infringement).

            
	 
      	 
      	 
      
	
              8.5

            	
              Any
      agreement made by the Licensee for purposes of settling litigation or
      other dispute shall comply with the requirements of Article 3
      (Sublicenses) of this Agreement.

            
	 
      	 
      	 
      
	
              8.6

            	
              Each
      party will cooperate with the other in litigation proceedings instituted
      hereunder but at the expense of the party who initiated the suit (unless
      such suit is being jointly prosecuted by the parties).

            
	 
      	 
      	 
      
	
              8.7

            	
              Any
      litigation proceedings will be controlled by the party bringing the suit,
      except that The Regents may be represented by counsel of its choice in any
      suit brought by the Licensee.

            
	 
      	 
      	 
      
	
              9. PROGRESS AND ROYALTY
      REPORTS

            
	 
      	 
      	 
      
	
              9.1

            	
              Beginning
      January 1, 2009, Licensee must submit to The Regents semiannual progress
      reports covering Licensee's activities related to the development and
      testing of all Licensed Products and the obtaining of the governmental
      approvals necessary for marketing. These progress reports must be made for
      each Licensed Product until its First Commercial Sale.

            
	 
      	 
      	 
      
	
              9.2

            	
              The
      progress reports submitted under Paragraph 9.1 must include the following
      topics:

            
	 
      	 
      	 
      
	 
      	
              9.2a

            	
              Summary
      of work completed.

            
	 
      	
              9.2b

            	
              Key
      scientific discoveries.

            
	 
      	
              9.2c

            	
              Summary
      of work in progress.

            
	 
      	
              9.2d

            	
              Current
      schedule of anticipated events or milestones.

            
	 
      	
              9.2e

            	
              Market
      plans for introduction of Licensed Products.

            
	 
      	
              9.2f

            	
              A
      summary of resources (dollar value) spent in the reporting
      period.

            

    

    

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

    
      	
              9.3.

            	
              Licensee
      must notify The Regents if Licensee or any of its sublicensees ceases to
      be a small entity (as defined by the United States Patent and Trademark
      Office) under the provisions of 35 U.S.C. §41(h).

            
	 
      	 
      	 
      
	
              9.4

            	
              Licensee
      must report the date of the First Commercial Sale in the royalty report
      immediately following that sale.

            
	 
      	 
      	 
      
	
              9.5

            	
              After
      the First Commercial Sale of each Licensed Product, Licensee will make
      quarterly royalty reports to The Regents by February 28, May 31, August 31
      and November 30 of each year (i.e., within two months from the end of each
      calendar quarter). Each royalty report will cover Licensee's most recently
      completed calendar quarter and must show:

            
	 
      	 
      	 
      
	 
      	
              9.5a

            	
              Gross
      sales and Net Sales of any Licensed Product.

            
	 
      	
              9.5b

            	
              Number
      of each type of Licensed Product sold.

            
	 
      	
              9.5c

            	
              Royalties
      payable to The Regents.

            
	 
      	 
      	 
      
	
              9.6

            	
              Licensee
      will state in its royalty report if it had no sales of any Licensed
      Product in the applicable quarter.

            
	 
      	 
      	 
      
	
              10. BOOKS AND
      RECORDS

            
	 
      	 
      	 
      
	
              10.1

            	
              Licensee
      must keep accurate books and records of all Licensed Products developed,
      manufactured, used or sold. Licensee must preserve these books and records
      for at least five (5) years from the date of the royalty payment to which
      they pertain. These books and records will be open to examination by
      representatives or agents of The Regents during regular office hours to
      determine their accuracy and assess the Licensee’s compliance with the
      terms of this Agreement. The Licensee will pay fees and expenses of these
      inspections if an error favoring Licensee of more than five percent (5%)
      of the total annual royalties is discovered, otherwise The Regents will
      pay the fees and expenses of inspections. Payment owed by Licensee
      hereunder for underpayment of royalties will be due within thirty (30)
      days of the examination result and payment by Licensee for any examination
      costs incurred by The Regents will be due within thirty (30) days from the
      date of The Regents’ invoice.

            
	 
      	 
      	 
      
	
              11. LIFE OF THE
      AGREEMENT

            
	 
      	 
      	 
      
	
              11.1

            	
              Unless
      otherwise terminated by operation of law or by acts of the parties in
      accordance with the terms of this Agreement, this Agreement is in force
      from the Effective Date recited on page one and remains in effect for the
      life of the last-to-expire patent or last to be abandoned patent
      application in Regents' Patent Rights, whichever is
  later.

            
	 
      	 
      	 
      
	
              11.2

            	
              Upon
      termination of this Agreement, Licensee will have no further right to
      make, have made, use or sell any Licensed Product except as provided in
      Article 14 (Disposition of Licensed Products on Hand Upon
      Termination).

            
	 
      	 
      	 
      
	
              11.3

            	
              Any
      expiration or termination of this Agreement will not affect the rights and
      obligations set forth in the following
Articles:

            

    

    

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

    
      	 
      	
              Article
      10

            	
              Books
      and Records.

            
	 
      	
              Article
      14

            	
              Disposition
      of Licensed Products on Hand upon Termination.

            
	 
      	
              Article
      16

            	
              Use
      of Names and Trademarks.

            
	 
      	
              Article
      17

            	
              Warranties

            
	 
      	
              Article
      18

            	
              Indemnification.

            
	 
      	
              Article
      23

            	
              Failure
      to Perform.

            
	 
      	
              Article
      24

            	
              Governing
      Laws

            

    

     

    12.     TERMINATION
BY THE REGENTS

     

    
      	
              12.1

            	
              If
      Licensee violates or fails to perform any material term of this Agreement,
      then The Regents may give written notice of the default ("Notice of
      Default") to Licensee. If Licensee does not repair the default within
      sixty (60) days after the effective date of the Notice of Default, then
      The Regents has the right to terminate this Agreement and the License by a
      second written notice ("Notice of Termination") to Licensee. If The
      Regents sends a Notice of Termination to Licensee, then this Agreement
      automatically terminates on the effective date of this notice. Termination
      does not relieve Licensee of its obligation to pay any royalty or fees
      owing at the time of termination and does not impair any accrued right of
      The Regents.

            
	 
      	 
      
	
              13. TERMINATION BY
      LICENSEE

            
	 
      	 
      
	
              13.1

            	
              Licensee
      has the right at any time to terminate this Agreement in whole or with
      respect to any portion of Regents' Patent Rights by giving written notice
      to The Regents. This notice of termination will be subject to Article 20
      (Notices) and will be effective ninety (90) days after the effective date
      of the notice.

            
	 
      	 
      
	
              13.2

            	
              Any
      termination in accordance with Paragraph 13.1 does not relieve Licensee of
      any obligation or liability accrued prior to termination. Nor does
      termination rescind anything done by Licensee or any payments made to The
      Regents prior to the effective date of termination. Termination does not
      affect in any manner any rights of The Regents arising under this
      Agreement prior to termination.

            
	 
      	 
      
	
              14. DISPOSITION OF LICENSED
      PRODUCTS

            
	
              ON HAND UPON
      TERMINATION

            
	 
      	 
      
	
              14.1

            	
              Upon
      termination of this Agreement, Licensee will have the right to dispose of
      all previously made or partially made Licensed Products, but no more,
      within a period of six (6) months. But Licensee must submit royalty
      reports on the sale of these Licensed Products and must pay royalties at
      the rate and at the time provided in this Agreement.

            
	 
      	 
      
	
              15. PATENT
      MARKING

            
	 
      	 
      
	
              15.1

            	
              Licensee
      must mark all Licensed Products made, used or sold under the terms of this
      Agreement, or their containers, in accordance with the applicable patent
      marking laws.

            
	 
      	 
      
	
              16. USE OF NAMES AND
      TRADEMARKS

            
	 
      	 
      
	
              16.1

            	
              The
      Licensee will not use any name, trade name, trademark or other designation
      of The Regents’ or its employees (including contraction, abbreviation or
      simulation of any of the foregoing) in advertising, publicity or other
      promotional activity. Unless required by law, Licensee is expressly
      prohibited from using the name "The Regents of the University of
      California" or the name of any campus of the University of California in
      advertising, publicity, or other promotional activity, without written
      permission of The Regents.

            

    

    

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

     

    17.    LIMITED
WARRANTY

     

    
      	
              17.1

            	
              The
      Regents warrants that it has the lawful right to grant this license to
      Licensee.

            
	 
      	 
      	 
      
	
              17.2

            	
              This
      License and the associated Invention are provided WITHOUT WARRANTY OF
      MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR ANY OTHER WARRANTY,
      EXPRESS OR IMPLIED. THE REGENTS MAKE NO REPRESENTATION OR WARRANTY THAT
      ANY LICENSED PRODUCT WILL NOT INFRINGE ANY PATENT OR OTHER PROPRIETARY
      RIGHT.

            
	 
      	 
      	 
      
	
              17.3

            	
              IN
      NO EVENT WILL THE REGENTS BE LIABLE FOR ANY INCIDENTAL, SPECIAL OR
      CONSEQUENTIAL DAMAGES RESULTING FROM EXERCISE OF THIS LICENSE OR THE USE
      OF THE INVENTION OR LICENSED PRODUCTS OR THE USE OR THE PRACTICE OF
      LICENSED METHODS.

            
	 
      	 
      	 
      
	
              17.4

            	
              Nothing
      in this Agreement will be construed as:

            
	 
      	 
      	 
      
	 
      	
              17.4a

            	
              A
      warranty or representation by The Regents as to the validity or scope of
      any Regents' Patent Rights.

            
	 
      	
              17.4b

            	
              A
      warranty or representation that anything made, used, sold or otherwise
      disposed of under any license granted in this Agreement is or will be free
      from infringement of patents of third parties.

            
	 
      	
              17.4c

            	
              Obligating
      The Regents to bring or prosecute actions or suits against third parties
      for patent infringement except as provided in Article 8 (Patent
      Infringement).

            
	 
      	
              17.4d

            	
              Conferring
      by implication, estoppel or otherwise any license or rights under any
      patents of The Regents other than Regents' Patent Rights as defined
      herein, regardless of whether such patents are dominant or subordinate to
      Regents' Patent Rights.

            
	 
      	
              17.4e

            	
              Obligating
      The Regents to furnish any know-how not provided in Regents' Patent
      Rights.

            
	 
      	 
      	 
      
	
              18.
      INDEMNIFICATION

            
	 
      	 
      	 
      
	
              18.1

            	
              Licensee
      will, and will require its sublicensees to, indemnify, hold harmless and
      defend The Regents, its officers, employees, and agents, the sponsors of
      the research that led to the invention, the inventors of the patents and
      patent applications in Regents' Patent Rights and their respective
      employers from and against any and all liability, claims, suits, losses,
      damages, costs, fees and expenses resulting from or arising out of
      exercise of this Agreement or any Sublicense. Indemnification includes but
      is not limited to products liability. If The Regents, in its sole
      discretion, believes that there will be a conflict of interest or it will
      not otherwise be adequately represented by counsel chosen by Licensee to
      defend The Regents in accordance with this Paragraph 18.1, then The
      Regents may retain counsel of its choice to represent it, and Licensee
      will pay all expenses for such
representation.

            

    

    

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    

    
      	
              18.2

            	
              Licensee,
      at its sole cost and expense, must insure its activities in connection
      with the work under this Agreement and obtain, keep in force and maintain
      Commercial Form General Liability Insurance (contractual liability
      included) with limits as follows:

            

    

    

    
      	 
      	
              18.2a

            	
              Each
      occurrence

            	
              $500,000

            
	 
      	
              18.2b

            	
              Products/completed
      operations aggregate

            	
              $1,000,000

            
	 
      	
              18.2c

            	
              Personal
      and advertising injury

            	
              $500,000

            
	 
      	
              18.2d

            	
              General
      aggregate (commercial form only)

            	
              $1,000,000

            

    

    

    
      	 
      	
              In Vitro
      Diagnostics

            
	 
      	
              Notwithstanding
      the foregoing, no later than the sooner of 60 days before the first use of
      any Licensed Product or Licensed Method in or on a human or 60 days before
      the anticipated date of market introduction of any Licensed Product or
      Licensed Method where such Licensed Product or Licensed Method is a
      diagnostic for in vitro use, Licensee, at its sole cost and expense, shall
      insure its activities in connection with the work under this Agreement and
      obtain, keep in force and maintain Comprehensive or Commercial Form
      General Liability Insurance (contractual liability included) with limits
      as follows (or an equivalent program of
  self-insurance):

            

    

    

    
      	 
      	
              18.2e

            	
              Each
      occurrence

            	
              $1,000,000

            
	 
      	
              18.2f

            	
              Products/completed
      operations aggregate

            	
              $5,000,000

            
	 
      	
              18.2g

            	
              Personal
      and advertising injury

            	
              $1,000,000

            
	 
      	
              18.2h

            	
              General
      aggregate (commercial form only)

            	
              $5,000,000

            

    

    

    
      	 
      	
              In Vivo
      Diagnostics

            
	 
      	
              Notwithstanding
      the foregoing, no later than 60 days before the first use of any Licensed
      Product or Licensed Method in or on a human where such Licensed Product or
      Licensed Method is a diagnostic for in vivo use, Licensee, at its sole
      cost and expense, shall insure its activities in connection with the work
      under this Agreement and obtain, keep in force and maintain Comprehensive
      or Commercial Form General Liability Insurance (contractual liability
      included) with limits as follows (or an equivalent program of
      self-insurance):

            

    

    

    
      	 
      	
              18.2i

            	
              Each
      occurrence

            	
              $2,000,000

            
	 
      	
              18.2j

            	
              Products/completed
      operations aggregate

            	
              $10,000,000

            
	 
      	
              18.2k

            	
              Personal
      and advertising injury

            	
              $1,000,000

            
	 
      	
              18.2l

            	
              General
      aggregate (commercial form only)

            	
              $4,000,000

            

    

    

    
      	 
      	
              Notwithstanding
      the foregoing, no later than 60 days before the anticipated date of market
      introduction of any Licensed Product or Licensed Method where such
      Licensed Product or Licensed Method is a diagnostic for in vivo use,
      Licensee, at its sole cost and expense, shall insure its activities in
      connection with the work under this Agreement and obtain, keep in force
      and maintain Comprehensive or Commercial Form General Liability Insurance
      (contractual liability included) with limits as follows (or an equivalent
      program of self-insurance):

            

    

    

    
      	 
      	
              18.2m

            	
              Each
      occurrence

            	
              $5,000,000

            
	 
      	
              18.2n

            	
              Products/completed
      operations aggregate

            	
              $10,000,000

            
	 
      	
              18.2o

            	
              Personal
      and advertising injury

            	
              $5,000,000

            
	 
      	
              18.2p

            	
              General
      aggregate (commercial form only)

            	
              $10,000,000

            

    

    

    

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

    
      	
              18.3

            	
              If
      the above insurance is written on a claims-made form, it shall continue
      for three (3) years following termination or expiration of this Agreement.
      The insurance shall have a retroactive date of placement prior to or
      coinciding with the Effective Date of this Agreement.

            
	 
      	 
      	 
      
	
              18.4

            	
              Licensee
      will obtain, keep in force and maintain Worker's Compensation Insurance as
      legally required in the jurisdiction in which Licensee is doing
      business.

            
	 
      	 
      	 
      
	
              18.5

            	
              Licensee
      expressly understands, however, that the coverages and limits in Paragraph
      18.2 do not in any way limit the Licensee's liability. Licensee must
      furnish The Regents with certificates of insurance evidencing compliance
      with all requirements. Licensee's insurance must:

            
	 
      	 
      	 
      
	 
      	
              18.5a

            	
              Provide
      for thirty (30) day advance written notice to The Regents of any
      modification.

            
	 
      	
              18.5b

            	
              Indicate
      that The Regents of the University of California is endorsed as an insured
      under the coverages listed in Paragraph 18.2.

            
	 
      	
              18.5c

            	
              Include
      a provision that the coverages will be primary and will not participate
      with nor will be excess over any valid and collective insurance or program
      of self-insurance carried or maintained by The Regents.

            
	 
      	 
      	 
      
	
              18.6

            	
              The
      Regents shall notify Licensee in writing of any claim or suit brought
      against The Regents in respect of which The Regents intends to invoke the
      provisions of this Article 18 (Indemnification). Licensee shall keep The
      Regents informed on a current basis of its defense of any claims under
      this Article 18 (Indemnification).

            
	 
      	 
      	 
      
	
              19. LIMITATIONS OF
      LIABLITY

            
	 
      	 
      	 
      
	
              19.1

            	
              THE
      REGENTS WILL NOT BE LIABLE FOR ANY LOST PROFITS, COSTS OF PROCURING
      SUBSTITUTE GOODS OR SERVICES, LOST BUSINESS, ENHANCED DAMAGES FOR
      INTELLECTUAL PROPERTY INFRINGEMENT OR ANY INDIRECT, INCIDENTAL,
      CONSEQUENTIAL, PUNITIVE OR OTHER SPECIAL DAMAGES SUFFERED BY LICENSEE,
      SUBLICENSEES, JOINT VENTURES, AFFILIATES OR DEVELOPMENT PARTNERS ARISING
      OUT OF OR RELATED TO THIS AGREEMENT. THE REGENTS WILL NOT BE LIABLE FOR
      ANY CAUSES OF ACTION OF ANY KIND (INCLUDING TORT, CONTRACT, NEGLIGENCE,
      STRICT LIABILITY AND BREACH OF WARRANTY) EVEN IF THE REGENTS HAS BEEN
      ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

            
	 
      	 
      	 
      
	
              20.
    NOTICES

            
	 
      	 
      	 
      
	
              20.1

            	
              Any
      notice or payment required to be given to either party must be sent to the
      respective address given below and is effective: (a) on the date of
      delivery if delivered in person, (b) five (5) days after mailing if mailed
      by first-class certified mail, postage paid, or (c) on the next business
      day if sent by overnight delivery. Either party may change its designated
      address by written notice.

            

    

    

    

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    

    
      	 
      	
              For
      Licensee:

            	
              Entest
      BioMedical Inc.

            
	 
      	 
      	
              1010
      University Avenue #40

            
	 
      	 
      	
              San
      Diego, CA 92103

            
	 
      	 
      	 
      
	 
      	 
      	
              Attention:
      David R. Koos

            
	 
      	 
      	 
      
	 
      	
              For
      The Regents:

            	
              The
      Regents of the University of California

            
	 
      	 
      	
              University
      of California, Los Angeles

            
	 
      	 
      	
              Office
      of Intellectual Property Administration

            
	 
      	 
      	
              11000
      Kinross Avenue, suite 200

            
	 
      	 
      	
              Los
      Angeles, CA 90095-1406

            
	 
      	 
      	 
      
	 
      	 
      	
              Attention:
      Director

            
	 
      	 
      	
              Ref:
      UC Case No. 2007-523

            

    

     

    21.     ASSIGNABILITY

     

    
      	
              21.1

            	
              This
      Agreement is binding upon and inures to the benefit of The Regents, its
      successors and assigns. But it is personal to Licensee and assignable by
      Licensee only with the written consent of The Regents. The consent of The
      Regents will not be required if the assignment is in conjunction with the
      transfer of all or substantially all of the business of Licensee to which
      this license relates.

            
	 
      	 
      
	
              22. LATE
      PAYMENTS

            
	 
      	 
      
	 
      	 
      
	
              22.1

            	
              For
      each royalty payment or fee not received by The Regents when due, Licensee
      must pay to The Regents a simple interest charge of 10% per annum to be
      calculated from the date payment was due until it was actually received by
      The Regents.

            
	 
      	 
      
	
              23.
    WAIVER

            
	 
      	 
      
	
              23.1

            	
              The
      waiver of any breach of any term of this Agreement does not waive any
      other breach of that or any other term.

            
	 
      	 
      
	
              24. FAILURE TO
      PERFORM

            
	 
      	 
      
	
              24.1

            	
              If
      either party takes legal action against the other because of a failure of
      performance due under this Agreement, then the prevailing party is
      entitled to reasonable attorney's fees in addition to costs and necessary
      disbursements.

            
	 
      	 
      
	
              25. GOVERNING
      LAW

            
	 
      	 
      
	
              25.1

            	
              THIS
      AGREEMENT IS TO BE INTERPRETED AND CONSTRUED IN ACCORDANCE WITH THE LAWS
      OF THE STATE OF CALIFORNIA, but the scope and validity of any patent or
      patent application will be governed by the applicable laws of the country
      of the patent or patent application.

            
	 
      	 
      
	
              26. GOVERNMENT APPROVAL OR
      REGISTRATION

            
	 
      	 
      
	
              26.1

            	
              If
      this Agreement or any associated transaction is required by the law of any
      nation to be either approved or registered with any governmental agency,
      Licensee will assume all legal obligations to do so. Licensee will notify
      The Regents if it becomes aware that this Agreement is subject to a United
      States or foreign government reporting or approval requirement. Licensee
      will make all necessary filings and pay all costs including fees,
      penalties, and all other out-of-pocket costs associated with such
      reporting or approval process.

            

    

    

    

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    

    
      	
              27. COMPLIANCE WITH
      LAWS

            
	 
      	 
      	 
      
	
              27.1

            	
              The
      Licensee will comply will all applicable international, national, state,
      regional, and local laws and regulations in performing its obligations
      hereunder and in its use, manufacture, sale or import of the Licensed
      Products or practice of the Licensed Methods. The Licensee will observe
      all applicable United States and foreign laws with respect to the transfer
      of Licensed Products and related technical data and the provision of
      services using Licensed Methods to foreign countries, including and
      without limitation, the International Traffic in Arms Regulations (ITAR)
      and the Export Administration Regulations. The Licensee will manufacture
      Licensed Products and practice the Licensed Methods in compliance with all
      applicable government importation laws and regulations of a country into
      which Licensed Products are imported.

            
	 
      	 
      	 
      
	
              29. FORCE
      MAJEURE

            
	 
      	 
      	 
      
	
              29.1

            	
              Except
      for the Licensee’s obligation to make any payments to The Regents
      hereunder, the parties shall not be responsible for any failure to perform
      due to the occurrence of any events beyond their reasonable control which
      render their performance impossible or onerous, including, but not limited
      to: accidents (environment, toxic spill, etc.); acts of God; biological or
      nuclear incidents; casualties; earthquakes; fires; floods; governmental
      acts; orders or restrictions; inability to obtain suitable and sufficient
      labor, transportation, fuel and materials; local, national or state
      emergency; power failure and power outages; acts of terrorism; strike; and
      war.

            
	 
      	 
      	 
      
	
              29.2

            	
              Either
      party to this Agreement, however, will have the right to terminate this
      Agreement upon thirty (30) days’ prior written notice if either party is
      unable to fulfill its obligations under this Agreement due to any of the
      causes specified in Paragraph 29.1 for a period of one (1)
      year.

            
	 
      	 
      	 
      
	
              30.
      CONFIDENTIALITY

            
	 
      	 
      	 
      
	
              30.1

            	
              If
      either party discloses confidential information to the other party, the
      disclosing party will designate this information as confidential by
      appropriate legend or instruction, and the receiving party
      will:

            
	 
      	 
      	 
      
	 
      	
              30.1a

            	
              Use
      the same degree of care to maintain the secrecy of the confidential
      information as it uses to maintain the secrecy of its own information of
      like kind.

            
	 
      	 
      	 
      
	 
      	
              30.1b

            	
              Use
      the confidential information only to accomplish the purposes of this
      Agreement.

            
	 
      	 
      	 
      
	
              30.2

            	
              Neither
      party will disclose confidential information received from the other party
      except to its employees, customers, distributors and other agents who are
      bound to it by similar obligations of confidence and only as required to
      accomplish the purposes of this
Agreement.

            

    

    

    

    

    

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    

    
      	
              30.3

            	
              Neither
      party will have any confidentiality obligation with respect to the
      confidential information belonging to or disclosed by the other party
      that:

            
	 
      	 
      	 
      
	 
      	
              30.3a

            	
              the
      receiving party can demonstrate by written records was previously known to
      it.

            
	 
      	 
      	 
      
	 
      	
              30.3b

            	
              the
      receiving party lawfully obtained from sources under no obligation of
      confidentiality.

            
	 
      	 
      	 
      
	 
      	
              30.3c

            	
              is
      or becomes publicly available other than through an act or omission of the
      receiving party or any of its employees.

            
	 
      	 
      	 
      
	 
      	
              30.3d

            	
              Is
      required to be disclosed under the California Public Records Act,
      governmental audit requirement or other requirement of
  law.

            
	 
      	 
      	 
      
	
              30.4

            	
              The
      provisions of this Article 30 will continue in effect for five (5) years
      after expiration or termination of this Agreement.

            
	 
      	 
      	 
      
	
              30.5

            	
              The
      Regents is free to release to the Inventors and senior administrators
      employed by The Regents the terms and conditions of this Agreement. If
      such release is made, then The Regents shall give notice of the
      confidential nature and shall request that the recipient not disclose such
      terms and conditions to others. If a third party inquires whether a
      license to Regents’ Patent Rights is available, then The Regents may
      disclose the existence of this Agreement and the extent of the grant in
      Articles 2 (Grant) and 3 (Sublicenses) to such third party, but will not
      disclose the name of Licensee or any other negotiated terms or conditions
      of this Agreement, except where The Regents is required to release
      information under the California Public Records Act, a governmental audit
      requirement, or other applicable law.

            
	 
      	 
      	 
      
	
              31.
      MISCELLANEOUS

            
	 
      	 
      	 
      
	
              31.1

            	
              The
      headings of the several sections are inserted for convenience of reference
      only and are not intended to be a part of, or to affect the meaning or
      interpretation of, this Agreement.

            
	 
      	 
      	 
      
	
              31.2

            	
              This
      Agreement is not binding upon the parties until it has been signed below
      on behalf of each party, in which event it becomes effective as of the
      date recited on page one.

            
	 
      	 
      	 
      
	
              31.3

            	
              No
      amendment or modification of this Agreement will be valid or binding upon
      the parties unless made in writing and signed by each
    party.

            
	 
      	 
      	 
      
	
              31.4

            	
              This
      Agreement and Appendix A (Regents’ Patent Rights) embodies the entire
      understanding of the parties and supersedes all previous communications,
      representations or understandings, either oral or written, between the
      parties relating to the subject matter hereof.

            
	 
      	 
      	 
      
	
              31.5

            	
              If
      any part of this Agreement is for any reason found to be unenforceable,
      all other parts nevertheless remain enforceable as long as a party's
      rights under this Agreement are not materially affected. In lieu of the
      unenforceable provision, the parties will substitute or add as part of
      this Agreement a provision that will be as similar as possible in economic
      and business objectives as was intended by the unenforceable
      provision.

            

    

    

    

    

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    

     

    Both The
Regents and Licensee have executed this Agreement in duplicate originals by
their authorized officers on the dates written below:

     

    
      	
              ENTEST BIOMEDICAL
      INC.

            	 
      	
              THE REGENTS OF THE UNIVERSITY
      OF CALIFORNIA

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              By

            	
              /s/David
      R. Koos

            	 
      	
              By

            	
              /s/Emily
      Loughran

            
	 
      	
              Signature

            	 
      	 
      	
              Signature

            
	
              Name:

            	
              David
      R. Koos

            	 
      	
              Name:

            	
              Emily
      Loughran

            
	
              Title

            	
              Chairman
      and CEO

            	 
      	
              Title

            	
              Director
      of Licensing

            
	
              Date

            	
              10/14/2008

            	 
      	
              Date

            	
              10/23/08

            

    

    

    

    

    

    

    

    

    

    

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    

     

    APPENDIX A

     

     

    REGENTS' PATENT
RIGHTS

     

     

    Provisional
Patent Application No. 61/030,316 entitled “SCREENING TEST FOR GESTATIONAL
DIABETES MELLITUS” filed 02/21/2008 (UCLA Case No. 2007-523-1) by Dr. Brian
Koos, and assigned to The Regents.

     

    

    

    

    

    

    

    

    

    

    

    

    

    

    
      
         

      

      
        19

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]