Document:

LICENSE
      AGREEMENT

    

    THIS
      AGREEMENT made and effective as of the date of last signing (herein the
“Effective Date”) by and between Nanosenors, Inc. (herein “Company”), having a
      principal place of business at 1800 Wyatt Drive, Suite 2, Santa Clara, CA 95054,
      and Michigan State University (herein “MSU”), having a principal place of
      business in East Lansing, Michigan 48824, USA. Company and MSU are each a
“party”, and may collectively be referred to as the “parties.”

    

    INTRODUCTION

    

    
      	
              1.

            	
              WHEREAS,
                MSU has developed and is continuing research in the area of the
                Technology, as defined in Paragraph 1.1 of this Agreement; and
                

            

    

    

    
      	
              2.

            	
              WHEREAS,
                Company desires to obtain certain rights in and to the Technology;
                and

            

    

    

    
      	
              3.

            	
              WHEREAS,
                Company and MSU mutually desire to formalize an agreement which delineates
                their respective rights and obligations with respect to the
                Technology.

            

    

    

    NOW
      THEREFORE, in consideration of the mutual covenants and promises contained
      in
      this Agreement and other good and valuable consideration, MSU and Company agree
      as follows:

    

    ARTICLE
      1 - DEFINITIONS

    

    In
      the
      terms defined and used herein, the singular shall include the plural and vice
      versa. Terms in this Agreement (other than names of parties and Article
      headings) which are set forth in upper case letters have the meanings
      established for such terms in this Article 1.

    

    
      	
              1.1

            	
              “Technology”
                means MSU Invention Disclosure No. 05068 “Nanoporous Silicon-Based
                Electrochemical DNA Biosensor”. 

            

    

     

    
      	
              1.2

            	
              “Know-how”
                means the data and information embodied in or required to enable
                the
                Technology.

            

    

    

    
      	
              1.3

            	
              “Patents”
                means any and all patent applications (including any amendments or
                extensions to the initial applications) filed in any country of the
                world
                by or on behalf of MSU claiming the Technology and/or any patents
                maturing
                from such patent applications. Patents and patent applications claiming
                the technology at the time of execution of this Agreement include,
                without
                limitation, United States provisional patent application 60/704,550
                titled
                “Nanoporous Silicon-Based Electrochemical DNA Biosensor”, filed August 2,
                2005.

            

    

    

    
      	
              1.5

            	
              “Adjusted
                Gross Sales” means the aggregate gross revenues derived by Company and its
                Affiliates from the sale of Products and Services to, and practice
                of
                Processes for, an unaffiliated third party in an arms length commercial
                transaction, less credits granted on account of price adjustments,
                recalls, rejection or return of items previously
                sold.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              1.6

            	
              “Product”
                means any and all products sublicensed, offered or sold by or on
                behalf of
                the Company embodying or practicing the Technology, Know-how and/or
                the
                Patents.

            

    

    

    
      	
              1.7

            	
              “Process”
                means any and all processes embodying or practicing the Technology,
                Know-how and/or the Patents.

            

    

    

    
      	
              1.8

            	
              “Service”
                means any and all services sublicensed, offered or sold by or on
                behalf of
                the Company embodying or practicing the Technology, Know-how and/or
                the
                Patents.

            

    

    

    
      	
              1.9

            	
              “Term”
                means the period beginning on the Effective Date and extending to
                the
                expiration of the last to expire of the Patents, or until Fifteen
                (15)
                years after the Effective Date, whichever is
                longer.

            

    

    

    
      	
              1.10

            	
              “Field”
                means use of the Technology (and Know-how) limited to detection of
                Escherichia
                and Salmonella
                bacteria.

            

    

    

    
      	
              1.11

            	
              “Territory”
                means worldwide.

            

    

    

    
      	
              1.12

            	
              “Improvement”
                means (a) divisionals of the Patents, (b) any continuations of the
                Patents
                deriving from inventions made within the Term (i) in the course of
                research at MSU supported by Company hereunder, or (ii) conceived
                or first
                reduced to practice by MSU employees while conducting work for the
                Company
                under a private agreement that is disclosed to and approved by MSU
                consistent with the then current MSU policy on outside work for pay.
                

            

    

    

    
      	
              1.13

            	
              “Affiliate”
                means any company, corporation or business which is at least fifty
                percent
                owned or controlled by Company, or which owns or controls at least
                fifty
                percent of Company, or which together with Company is commonly owned
                or
                controlled by a third party who owns or controls at least fifty percent
                of
                each.

            

    

    

    
      	
              1.14

            	
              “Government”
                means the United States Government.

            

    

    

    
      	
              1.17

            	
              “Sublicensing
                Revenues” means any and all payments, royalties and other consideration
                collected by Company from its sublicensees in connection with the
                sale,
                license or other commercial disposition of Products, Processes or
                Services
                by such sublicensees.

            

    

    

    ARTICLE
      2 - LICENSES GRANTED AND RIGHTS RETAINED

    

    
      	
              2.1

            	
              MSU
                hereby grants to Company during the Term of this Agreement an exclusive
                license within the Territory, limited to the Field, with the right
                to
                sublicense, to make, modify, reproduce, have made, lease, use, distribute,
                market, promote, sell, offer for sale, license and otherwise dispose
                of
                and exploit the Products, practice the Processes, and offer the Services
                under the Technology, the Know-how and/or the Patents and Improvements.
                

            

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      	
              2.2

            	
              The
                exclusive license specified in Paragraphs 2.1 is subject to a reserved
                right of MSU to utilize the Technology, Know-how, and/or the Patents
                solely for the non-commercial research and educational purposes of
                MSU.

            

    

    

    
      	
              2.3

            	
              Company
                is hereby granted by MSU a right of first refusal applicable to any
                exclusive option or exclusive license that MSU elects to offer with
                respect to the Technology, Know-how and/or the Patents in connection
                with
                any products, practice of the processes, and offer of the services
                under
                the Technology, the Know-how and/or the Patents outside of the licensed
                Field. With respect to any such option or license offered by MSU,
                the
                Company’s right of first refusal shall expire sixty days after the Company
                receives the offered terms from MSU. During reasonable business hours,
                MSU
                shall provide the Company with any requested information that MSU
                is
                legally permitted to provide, including access to personnel, in connection
                with the Company’s due diligence investigation in deciding whether to
                exercise any such right of first refusal hereunder. In addition,
                any
                commercial non-exclusive option or license that MSU elects to offer
                with
                respect to the Technology, Know-how and/or the Patents in connection
                with
                any such products, practice of the processes, and offer of the services
                under the Technology, the Know-how and/or the Patents outside the
                licensed
                Field shall be offered to Company simultaneously and under identical
                terms
                with the offer to any third party.

            

    

    

    
      	
              2.4

            	
              The
                exclusive licenses specified in Paragraphs 2.1 and 2.3 may be subject
                to
                certain rights of the Government if the Technology, Know-how, and/or
                the
                Patents were created or invented in the course of Government-funded
                research. Such rights may include for example a royalty-free license
                to
                the Government and the requirement that any Product produced for
                sale in
                the United States will be manufactured substantially in the United
                States.
                In the event that the Government exercises its march-in rights to
                the
                Technology to the substantial detriment of Company’s business, then
                Company and MSU may negotiate a reduced royalty
                rate.

            

    

    

    
      	
              2.5

            	
              This
                Agreement shall not be construed as implying that either Party hereto
                shall have the right to use Background Intellectual Property of the
                other
                in connection with this Agreement or otherwise, except as expressly
                stated
                herein. “Background Intellectual Property” means property and the legal
                right therein of either or both parties developed a) before or b)
                independent of but during Term of this Agreement, including inventions,
                patent applications, patents, copyrights, trademarks, mask works,
                trade
                secrets and any information embodying proprietary data such as technical
                data and computer software and all derivatives thereof (other than
                Project
                Intellectual Property, as defined below). Except for the rights expressly
                granted by one Party to the other hereunder, no license, interest
                or right
                in, or title to, a Party’s Background Intellectual Property, or any
                intellectual property rights therein or associated therewith, shall
                be
                deemed to have been granted, vested in or transferred to the other
                Party
                under the terms of the Agreement and no such rights shall be construed
                by
                estoppel. All title to and ownership of a Party’s Background Intellectual
                Property (and the intellectual property rights therein or associated
                therewith) remain with such Party. 

            

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      	
              2.6

            	
              For
                clarity, inventions made by Company relating to the Technology and
                without
                an MSU inventor are the sole property of Company. Company shall have
                no
                obligation to MSU for such inventions, except as may be provided
                in
                Article 13.4 herein.

            

    

     

    ARTICLE
      3 - R&D PERFORMANCE & MARKETING

    

    
      	
              3.1

            	
              Company
                shall use reasonable efforts to introduce Products and Processes
                into the
                commercial market as soon as practicable, consistent with sound and
                reasonable business practices and judgment. Thereafter, Company shall
                endeavor to keep Products and Processes reasonably available to the
                public
                during the remainder of the Term.

            

    

    

    
      	
              3.2

            	
              MSU
                shall have the right to terminate or render this license nonexclusive
                at
                any time after three (3) years from the Effective Date if Company:
                (a) has
                not put the Technology into commercial use in the Territory, directly
                or
                through a sublicense or (b) is not demonstrably engaged in a research,
                development, manufacturing, marketing or sublicensing program, as
                appropriate, directed toward this end. MSU shall, prior to exercising
                any
                right under this Section 3.2, provide the Company with at least thirty
                (30) days written notice of its intention to exercise any rights
                hereunder, and shall notify Company in writing after the expiration
                of
                such thirty (30) day notice period to confirm that MSU is in fact
                exercising its rights hereunder.

            

    

    

    ARTICLE
      4 - PATENTS AND PATENT COSTS

    

    
      	
              4.1

            	
              MSU
                shall retain title to the Technology, Know-how, and the
                Patents.

            

    

    

    
      	
              4.2

            	
              MSU
                shall file, prosecute, and maintain Patents in the United States
                and in
                any other countries designated by Company at Company’s expense. Company
                may later approach MSU to add non-designated countries for which
                MSU has
                pending applications or patents. Any such later addition shall be
                at MSU’s
                discretion.

            

    

    

    
      	
              4.3

            	
              Company
                agrees promptly to reimburse MSU for its outside legal costs incurred
                under Paragraph 4.2 within thirty (30) days after the receipt of
                invoices
                from MSU. Late payment shall be subject to interest charges of one
                and
                one-half percent (11⁄2 %) per month. Such reimbursement payments by Company
                of costs incurred by MSU under Paragraph 4.2 shall be creditable
                against
                up to 50% of the royalties that are due from Company to MSU under
                Article
                6 during the same calendar year in which such reimbursements are
                due.

            

    

    

    
      	
              4.4

            	
              Failure
                of Company to pay the amounts required under Paragraph 4.3 within
                ninety
                (90) days after the receipt of invoices from MSU shall constitute
                a
                default by Company under this Agreement, and entitle MSU to exercise
                its
                rights to terminate this Agreement, including the provision of notice
                and
                the Company’s right to cure, under Article
                13.

            

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      	
              4.5

            	
              Nothing
                in this Agreement shall prevent MSU from seeking patents on the Technology
                in countries other than those designated by Company. Such patent
                applications shall be filed, prosecuted and maintained at MSU’s expense,
                and shall be free of any obligations to Company under this
                Agreement.

            

    

    

    ARTICLE
      5 - PUBLICATION RIGHTS

    

    
      	
              5.1

            	
              MSU
                reserves the right to publish or present the results of its research
                on
                the Technology. 

            

    

    

    ARTICLE
      6 - PAYMENTS AND ROYALTIES

    

    
      	
              6.1

            	
              Company
                agrees to pay to MSU a non-refundable initial fee of Twenty Thousand
                United States Dollars ($20,000.00) within ten business days from
                the
                execution of this License
                Agreement.

            

    

     

    
      	6.2	
              (a)

            	
              During
                the Term of this Agreement, the Company shall pay to MSU a royalty
                of five
                percent (5.0 %) of Adjusted Gross Sales. Where a Product or Process
                is not
                sold, but is otherwise disposed of for commercial value, Adjusted
                Gross
                Sales for the purpose of computing royalties shall be the Adjusted
                Gross
                Sales price at which Products or Processes of similar kind and quality,
                sold in similar quantities, are currently being offered for sale
                by
                Company. Where such Products and Processes are not currently being
                separately offered for sale by Company, but are offered in connection
                with
                other products or processes, Adjusted Gross Sales shall be Company’s cost
                of manufacture, determined by Company’s customary accounting procedures,
                increased by 100 %.

            

    

    

    
      	 	
              (b)

            	
              During
                the Term, Company shall pay to MSU a royalty of five percent (5.0%)
                of
                Adjusted Gross Sales of any Sublicensee.

            

    

    

    
      	
              6.3

            	
              Beginning
                in calendar year 2008, Company agrees to pay MSU an annual minimum
                payment
                as shown in the table below. Should the actual royalties paid under
                Paragraph 6.2 fall short of this minimum amount, Company shall pay
                MSU the
                difference when the royalty payment for the last calendar quarter
                of such
                calendar year is due in accordance with Paragraph 6.4.
                

            

    

    

    
      	
              Year

            	
              Minimum
                Payment

            
	
              2008-2012

            	
              $10,000.00

            
	
              2013-2017

            	
              $20,000.00

            
	
              2018-2022

            	
              $25,000.00

            
	
              2023-termination

            	
              $30,000.00

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      	
              6.4

            	
              During
                each fiscal year during the Term, Company shall deliver to MSU within
                forty-five (45) days after the end of each of its first three fiscal
                quarters and within ninety (90) days following the end of its fiscal
                year:

            

    

    

    
      	 	
              (a)

            	
              A
                written report showing all figures necessary to compute Adjusted
                Gross
                Sales and Company’s computation of all remuneration to MSU due under this
                Agreement for such calendar quarter, accompanied by a check in full
                payment of the remuneration due. Adjusted Gross Sales shall be segmented
                in each such report on a country-by-country basis, including the
                rates of
                exchange used for conversion to USA Dollars from the currency in
                which
                such sales were made.

            

    

    

    
      	 	
              (b)

            	
              For
                any Adjusted Gross Sales which are made in a currency other than
                U.S.
                dollars, the amount of such sales shall be converted to U.S. Dollars
                using
                the currency exchange rates set forth in The
                Wall Street Journal
                on
                the last day of the calendar
                quarter.

            

    

    

    
      	 	
              (c)

            	
              All
                payments due shall be made in U.S. dollars without deduction for
                taxes,
                assessments, or other charges of any kind which may be imposed on
                Company
                by the government of the country where the transactions occur or
                any
                political subdivision thereof with respect to any amounts payable
                to MSU
                pursuant to this Agreement, and such taxes, assessments, or other
                charges
                shall be assumed by Company.

            

    

    

    
      	 	
              (d)

            	
              Late
                payments shall be subject to an interest charge of one and one-half
                percent (11⁄2%) per month. 

            

    

    

    
      	
              6.5

            	
              Company
                shall keep for a period of three (3) years following the year to
                which
                such records relate, full, true and accurate books of accounts and
                other
                records containing all information and data which may be necessary
                to
                ascertain and verify the remuneration payable to MSU hereunder. During
                the
                Term and for a period of two (2) years following its termination
                or
                expiration, MSU shall have the right, upon reasonable prior written
                notice, to audit, or have an agent, accountant or other representative,
                audit such books, records and supporting data upon fifteen (15) days
                notice. All information subject to such audit shall be deemed Confidential
                Information and treated in accordance with the provisions of Section
                10.
                Any audit shall be at MSU’s expense, except that Company shall reimburse
                MSU for the cost of the audit in the event that the audit establishes
                an
                underpayment of ten percent (10%) or more of the amount
                due.

            

    

    

    ARTICLE
      7 - RESERVED

    

    ARTICLE
      8 - DILIGENCE

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    
      	
              8.1

            	
              Company
                shall deliver to MSU within one hundred twenty (120) days after the
                end of
                fiscal 2007 and 2008, a report describing Company’s progress toward
                meeting its objectives together with an updated version of its business
                plan. 

            

    

    

    ARTICLE
      9 - INFRINGEMENT

    

    
      	
              9.1

            	
              Each
                party shall promptly report in writing to the other party during
                the Term
                any infringement or suspected infringement of any Patent, or unauthorized
                use or misappropriation of the Technology or Know-how by a third
                party of
                which it becomes aware, and shall provide the other party with all
                available evidence supporting said infringement, suspected infringement
                or
                unauthorized use or
                misappropriation.

            

    

    

    
      	
              9.2

            	
              Company
                shall have the right to initiate an infringement suit or other appropriate
                action against any third party who at any time has infringed or is
                suspected of infringing any of the Patents or of using without proper
                authorization all or any portion of the Technology or Know-how. Company
                shall give MSU sufficient advance written notice of its intent to
                initiate
                such action and the reasons therefor, and shall provide MSU with
                an
                opportunity to make suggestions and comments regarding such action.
                Company shall keep MSU promptly informed of the status of any such
                action.
                Company shall pay all expenses of such action. MSU shall offer reasonable
                assistance to Company in connection therewith at no charge to Company
                except for reimbursement of reasonable out-of-pocket expenses. Recoveries,
                reimbursements, damages, profits or awards from such action shall
                first be
                applied to reimburse Company and MSU for litigation costs. Any remaining
                recoveries, reimbursements, damages, profits or awards of whatever
                nature
                shall be treated as Adjusted Gross Sales under this
                Agreement.

            

    

    

    
      	
              9.3

            	
              In
                the event that MSU is a legally indispensable party to an infringement
                suit or other action as described in Paragraph 9.2, MSU may join
                the
                action as a co-plaintiff. Company shall reimburse MSU for any reasonable
                costs it incurs as a party to any action brought by Company or its
                sublicensee, irrespective of whether MSU shall become a
                co-plaintiff.

            

    

    

    
      	
              9.4

            	
              In
                the event that Company does not within six (6) months from first
                determining that an actual infringement of the Technology is likely
                to
                exist, (a) secure cessation of the infringement, or (b) initiate
                suit
                against the infringer, MSU shall thereafter have the right but not
                the
                obligation to take action against the infringer at MSU’s own expense.
                Company shall offer reasonable assistance to MSU in connection with
                such
                action at no charge to MSU except for the reimbursement of reasonable
                out-of-pocket expenses. Any damages, profits or awards of whatever
                nature
                recovered from such action shall belong solely to
                MSU.

            

    

    

    ARTICLE
      10 - CONFIDENTIALITY

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    
      	
              10.1

            	
              In
                connection with this Agreement, it is acknowledged that each party
                may
                disclose its confidential and proprietary information to the other
                party.
                Any such information that is first disclosed in writing, or if first
                disclosed orally is later transmitted in written form, and is labeled
                as
                “Confidential” is referred to herein as “Confidential Information.” No
                ownership or other rights or interests in Confidential Information
                shall
                be transferred or otherwise affected by its disclosure to the other
                Party.

            

    

    

    
      	
              10.2

            	
              Each
                party hereto shall maintain the Confidential Information of the other
                party in confidence, and shall not disclose or otherwise communicate
                such
                Confidential Information to others, or use it for any purpose except
                pursuant to, and in order to carry out, the terms and objectives
                of this
                Agreement, and hereby agrees to exercise every reasonable precaution
                to
                prevent and restrain the unauthorized disclosure of such Confidential
                Information by any of its directors, officers, employees, consultants
                or
                agents.

            

    

    

    
      	
              10.3

            	
              Each
                Party may disclose Confidential Information of the other Party
                to
                its legal or financial advisors and to those employees, directors
                or
                consultants that have a need to know such Confidential Information,
                provided such persons are bound by confidentiality restrictions
                substantially similar to those set forth herein.
                Each Party shall be responsible for compliance with the confidentiality,
                use and other terms of this Article by (a) such Party itself and
                its
                Affiliates, sublicensees, contractors and consultants (including
                third-party clinicians), and (b) each of the foregoing
                persons’ respective personnel, agents and representatives, as well as (c)
                any other persons to whom such Party directly or indirectly makes
                available, discloses or provides any Confidential Information of
                the other
                Party in accordance with this Section 10.3. Each Party shall take
                appropriate action, whether by instruction, agreement or otherwise,
                to
                ensure the protection, confidentiality and security of such Confidential
                Information.

            

    

    

    
      	
              10.4

            	
              The
                obligations set forth in this Article 10 shall remain in force during
                and
                shall survive the entry into and expiration or earlier termination
                of this
                Agreement for any reason.
                Failure on the part of the receiving party to abide by this section
                or
                Article 10 shall cause the disclosing party irreparable harm for
                which
                damages will not be an adequate remedy at law. Accordingly, the disclosing
                party shall have the right to seek injunctive relief to prevent any
                threatened or actual violations of this section in addition to whatever
                remedies it may have at law. Receiving party expressly
                waives the defense that a remedy in damages will be
                adequate.

            

    

    

    
      	
              10.5

            	
              The
                provisions of this Article 10 shall not apply to any Confidential
                Information disclosed hereunder
                which:

            

    

    

    
      	 	
              (a)

            	
              Was
                lawfully disclosed to the recipient by an independent third party
                rightfully in possession of the Confidential Information;
                or

            

    

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    
      	 	
              (b)

            	
              Has
                been published or is generally known to the public in accordance
                with
                Article 5 or otherwise through no fault or omission by any of the
                parties;
                or

            

    

    

    
      	 	
              (c)

            	
              Was
                independently known to the recipient prior to receipt from the disclosing
                party without confidentiality restriction, or was independently developed
                by the recipient without reference to the disclosing party’s Confidential
                Information, in either case, as is demonstrably documented in written
                records of the recipient; or

            

    

    

    
      	 	
              (d)

            	
              Is
                required to be disclosed by either party to comply with court orders
                or
                applicable laws (including the disclosure obligations of the Company
                pursuant to the Securities Exchange Act of 1934, as amended, and
                the
                disclosure obligations of MSU pursuant to the Michigan Freedom of
                Information Act), to defend or prosecute litigation or to comply
                with
                governmental regulations; provided, however, that such party gives
                the
                other party prompt notice of such requirement so as to enable the
                disclosing party to take steps to protect its Confidential Information
                and
                to take reasonable and lawful actions to avoid and/or minimize the
                degree
                of such disclosure.

            

    

     

    ARTICLE
      11 - WARRANTY DISCLAIMER; LIMITATION ON LIABILITY

    

    
      	
              11.1

            	
              Nothing
                in this Agreement shall be construed
                as:

            

    

    

    
      	 	
              (a)

            	
              A
                warranty or representation by MSU as to the validity or scope of
                any
                Patent;

            

    

    

    
      	 	
              (b)

            	
              Except
                as listed in 11.2, 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, copyrights and/or
                trademarks of third parties;

            

    

    

    
      	 	
              (c)

            	
              An
                obligation of MSU to bring or prosecute actions or suits against
                third
                parties for infringement;

            

    

    

    
      	 	
              (d)

            	
              Conferring
                rights to use in advertising, publicity or otherwise any trademark
                or the
                name of MSU; or

            

    

    

    
      	 	
              (e)

            	
              Granting
                by implication, estoppel or otherwise any licenses under patents
                of MSU
                other than the licenses granted under Section 2 hereof, regardless
                of
                whether such other patents are dominant of or subordinate to any
                Patent.

            

    

    

    

    
      	
              11.2

            	
               

            

    

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    (a)
      Ownership.
      MSU
      represents to the best of its knowledge that MSU has acquired all of the
      inventor’s rights in and to the Technology, Know-How and Patents and that MSU
      has the right to grant the licenses granted to Company under this
      Agreement.

     

    (b)
      Right
      to License.
      Subject
      to any rights retained by the Government, MSU represents to the best of its
      knowledge that it has the full, unrestricted right, power and authority to
      enter
      into and perform this Agreement and license to Company the Technology, Know-how
      and Patents, including, but not limited to, the right to grant and authorize
      Company to grant sublicenses thereunder. MSU shall take all reasonable steps
      to
      retain such full, unrestricted right, power, and authority throughout the Term
      of this Agreement and shall not grant or otherwise cause to be granted to any
      person other than Company any license or rights that are inconsistent with
      the
      licenses or rights granted to Company under this Agreement, except as may be
      required in accordance with Article 2.4.

     

    (c)
      Knowledge
      of Infringement.
      To the
      best of MSU’s knowledge without conducting separate inquiry, as of the Effective
      Date of this Agreement: (i) none of the Technology, Know-how and Patents, the
      making, use, sale, offer for sale, import, and other exploitation of the
      Technology, Know-how and Patents, or the exercise of any rights granted in
      this
      Agreement under the Technology, Know-how and Patents, infringes upon or
      misappropriates the intellectual property or proprietary or other rights of
      any
      other person or entity, and no such person or entity has alleged any such
      infringement, and MSU is not aware of any basis for any claim thereof; and
      (ii)
      there is no infringement of any of the Technology, Know-how or
      Patents.

     

    (d)
      Knowledge
      of Invalidity.
      To the
      best of MSU’s knowledge as of the Effective Date of this Agreement, none of the
      Technology, Know-how and Patents is subject to any litigation or proceedings,
      and MSU has no knowledge of any threat of such litigation or proceeding or
      of
      facts that would likely be the basis for instituting any such litigation or
      proceeding. 

     

    
      	
              11.3

            	
              Except
                as expressly set forth in this Agreement, MSU MAKES NO REPRESENTATIONS,
                EXTENDS NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, AND
                ASSUMES
                NO RESPONSIBILITIES WHATEVER WITH RESPECT TO THE USE, SALE OR OTHER
                DISPOSITION BY COMPANY OR ITS VENDEES OR OTHER TRANSFEREES OF PRODUCTS,
                PROCESSES, OR SERVICES INCORPORATING OR MADE BY USE OF THE TECHNOLOGY,
                KNOW-HOW, OR PATENTS LICENSED UNDER THIS AGREEMENT OR INFORMATION,
                IF ANY,
                FURNISHED UNDER THIS AGREEMENT. SUCH TECHNOLOGY, KNOW-HOW, PATENTS
                AND
                INFORMATION ARE PROVIDED AS IS, WITHOUT WARRANTY OF MERCHANTABILITY
                OR
                FITNESS FOR A PARTICULAR PURPOSE OR ANY OTHER WARRANTY, EXPRESS OR
                IMPLIED.

            

    

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    
      	
              11.3

            	
              MSU
                ASSUMES NO LIABILITY UNDER THIS AGREEMENT. IN NO EVENT WILL MSU BE
                LIABLE
                FOR ANY LOSS OF DATA, LOST PROFITS, COST OF PROCUREMENT OF SUBSTITUTE
                TECHNOLOGY OR SERVICES OR FOR ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL
                OR
                INDIRECT DAMAGES ARISING FROM THE USE OF THE PATENTS OR KNOW HOW
                OR
                OTHERWISE ARISING OUT OF THIS AGREEMENT, HOWEVER CAUSED AND ON ANY
                THEORY
                OF LIABILITY, WHETHER FOR BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE)
                OR OTHERWISE. THIS LIMITATION WILL APPLY EVEN IF MSU HAS BEEN ADVISED
                OF
                THE POSSIBILITY OF SUCH DAMAGES. THESE LIMITATIONS SHALL APPLY
                NOTWITHSTANDING THE FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED
                REMEDY.

            

    

    

    ARTICLE
      12 - NOTICES

    

    
      	
              12.1

            	
              Communications
                to Company concerning this Agreement should be addressed
                to:

            

    

    

    Dr.
      Ted
      Wong

    President

    Nanosensors,
      Inc.

    1800
      Wyatt Drive, Suite 2

    Santa
      Clara, CA 95054

    FAX:
      (408) 855-0079

    Email:
      tlwongusa@yahoo.com

    

    
      	
              12.2

            	
              Communications
                to MSU concerning this Agreement should be addressed
                to:

            

    

    

    Ms.
      Loraine J. Hudson, Director

    Office
      of
      Intellectual Property

    Michigan
      State University

    246
      Administration Building

    East
      Lansing, MI 48824-1046

    Fax:
      (517) 432-3880

    

    Any
      such
      communication shall be deemed to have been given (i) when delivered, if
      personally delivered or sent by facsimile (with confirmed receipt and promptly
      confirmed by personal delivery, registered or certified mail or overnight
      courier as provided herein) during the addressee’s normal business on a business
      day, (ii) on the business day after dispatch, if sent by
      nationally-recognized overnight courier, and (iii) on the third business day
      following the date of mailing, if sent by mail.

    

    ARTICLE
      13 - TERMINATION

    

    
      	
              13.1

            	
              Company
                may terminate this Agreement at any time by providing one year’s written
                notice to MSU. Upon termination a final report shall be submitted
                to MSU,
                and any royalty payments and unreimbursed patent expenses due to
                MSU shall
                become immediately payable. 

            

    

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    
      	
              13.2

            	
              In
                the event that MSU shall be in material default of any of its obligations
                hereunder, the Company may, at its sole option terminate this Agreement
                by
                providing written notice to MSU specifying the nature of the default.
                Termination under these circumstances shall be effective thirty (30)
                days
                following receipt of said notice by MSU, unless MSU cures said default
                prior to the expiration of said thirty (30) day
                period.

            

    

    

    
      	
              13.3

            	
              In
                the event that Company shall be in material default of any of its
                obligations hereunder, MSU may at its sole option: (a) terminate
                this
                Agreement or (b) convert the exclusive license hereunder to a
                non-exclusive license. MSU shall exercise either of these options
                by
                providing written notice to Company specifying the nature of the
                default
                including the amount of royalties then due, if any. Termination under
                these circumstances shall be effective thirty (30) days following
                receipt
                of said notice by Company, unless Company cures said default and
                makes
                payment of all monies due plus interest, if any, prior to the expiration
                of said thirty (30) day period. 

            

    

    

    
      	
              13.4

            	
              Upon
                termination, Company shall provide MSU
                with:

            

    

    

    
      	 	
              (a)

            	
              The
                right to access any regulatory information filed with any US or foreign
                government agency with respect to the Technology, Know-How or Patents;
                and
                

            

    

    

    
      	 	
              (b)

            	
              If
                Company has filed patent applications or obtained patents which represent
                a modification or improvement within the scope of the claims contained
                in
                the Patents, Company agrees upon request to enter into good faith
                negotiations with MSU or its future licensee(s) for the purpose of
                granting licensing rights to said modifications or improvements in
                timely
                fashion and under commercially reasonable
                terms.

            

    

    

    
      	
              13.5

            	
              Upon
                any termination of this Agreement or conversion to a non-exclusive
                license
                under Paragraph 13.3, neither party shall be relieved of any obligations
                incurred prior to such termination or conversion, and the obligations
                of
                the parties under any provisions which by their nature are intended
                to
                survive any such termination or conversion shall survive and continue
                to
                be enforceable. Upon the expiration (but not in the event of premature
                termination) of the Agreement, Company shall have a perpetual, royalty
                free, fully paid-up, non-exclusive license under any Know-How to
                make,
                have made, use, sell, offer for and sale the Products, Processes
                and
                Services after such expiration.

            

    

    

    
      	
              13.6

            	
              In
                the event (i) that a court of competent jurisdiction determines that
                the
                Company is insolvent, such that its liabilities exceed the fair market
                value of its assets, (ii) the Company shall make an assignment for
                the
                benefit of creditors, or (iii) of the filing of a petition for relief
                in
                bankruptcy by the Company on its own behalf, or the filing of any
                such
                petition against the Company if the proceeding is not dismissed or
                withdrawn within ninety (90) days thereafter, MSU shall have the
                right to
                terminate this entire Agreement immediately upon giving Company written
                notice of such termination.

            

    

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    
      	
              13.8

            	
              Any
                sublicenses granted by Company under this Agreement shall provide
                for
                assignment to MSU of Company’s interest therein upon termination of this
                Agreement, solely as it may relate to any rights licensed by MSU
                to
                Company pursuant to this Agreement, but not to any other interest
                therein
                of the Company. 

            

    

    

    ARTICLE
      14 - INDEMNIFICATION

    

    
      	
              14.1

            	
              Company
                agrees to defend MSU at Company's cost and expense, and will indemnify
                and
                hold harmless MSU and its trustees, officers, faculty, professional
                staff,
                employees, and agents and their respective successors, heirs and
                assigns
                (the “MSU Indemnitees”) from and against any and all claims, losses,
                costs, damages, fees (including attorneys fees) or expenses arising
                out of
                or in connection with (i) the manufacture, use, commercialization,
                marketing or sale by Company of any Product, Process, or Service
                hereunder
                (including but not limited to any product liability claims, whether
                brought as a tort, breach of warranty or strict liability cause of
                action), (ii) any breach by Company of a material term of this Agreement,
                and (iii) the use or misuse by Company or a third party (including
                end
                consumers) of any Technology, Know-How, Patent, Product, Process,
                or
                Service (including but not limited to any product liability claims,
                whether brought as a tort, breach of warranty or strict liability
                cause of
                action). 

            

    

    

    (a)    Company
      agrees, at its own expense, to provide attorneys reasonably acceptable to MSU
      to
      defend against any actions brought or filed against any MSU Indemnitee with
      respect to the subject of the indemnity contained herein, whether or not such
      actions are rightfully brought. 

    

    
      	
              14.4

            	
              The
                indemnification obligations hereunder are contingent upon the indemnified
                party (a) giving prompt written notice of any claim for which
                indemnification is sought to the indemnifying party; (b) granting
                sole control of the defense or settlement of the claim or action
                to the
                indemnifying party (except that the indemnified party’s prior written
                approval will be required for any settlement that reasonably can
                be
                expected to require a material affirmative obligation of or result
                in any
                ongoing material liability to the indemnified party); and
                (c) providing reasonable cooperation to the indemnifying party and,
                at the indemnifying party’s request and expense, assistance in the defense
                or settlement of the claim. Notwithstanding the foregoing, the
                indemnification obligations hereunder shall not be relieved hereunder
                for
                failure to do the foregoing, or delay with so doing, unless the
                indemnifying party is prejudiced thereby. In addition, the indemnified
                party may, at its own expense, participate in its defense of any
                claim.
                

            

    

    

    ARTICLE
      15 - INSURANCE REQUIREMENTS

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

    
      	
              15.1

            	
              Beginning
                at such time as Company begins to exercise the rights it has been
                granted
                pursuant to Article 2, Company shall at its sole cost and expense
                procure
                and maintain commercial general liability insurance in amounts not
                less
                than two million U.S. Dollars ($2,000,000) per incident and $2,000,000
                annual aggregate, and naming the Indemnitees as additional insureds.
                Such
                general liability insurance shall provide (i) product liability coverage
                and (ii) broad form contractual liability coverage for Company’s
                indemnification obligations under this Agreement. The Company shall
                also
                maintain worker’s compensation coverage consistent with statutory
                requirements. Such insurance shall be carried with companies rated
“A” or
                better by A. M. Best or a self-insurance program reasonably acceptable
                to
                MSU. The minimum amounts of insurance coverage required shall not
                be
                construed to create a limit of Company’s liability with respect to its
                indemnification obligations under this
                Agreement.

            

    

    

    
      	
              15.2

            	
              Company
                shall provide MSU with written evidence of such insurance upon request
                of
                MSU. Company shall provide MSU with written notice at least 30 days
                prior
                to the cancellation, non-renewal or material adverse change in such
                insurance. If Company or its sublicensee, Affiliate or agent does
                not
                obtain replacement insurance providing comparable coverage within
                a period
                of 60 days following any such cancellation, non-renewal or material
                adverse change, MSU shall have the right to terminate this Agreement
                effective at the end of such 60 day period upon written notice to
                the
                Company.

            

    

    

    
      	
              15.3

            	
              Company
                shall maintain such commercial general liability insurance beyond
                the
                expiration or termination of this Agreement during (i) the period
                that any
                Product, Process or Service incorporating the Technology, Know-How
                or
                Patents continues to be commercially distributed or sold by Company
                or by
                a sublicensee, or an Affiliate or agent of Company and (ii) for a
                reasonable period thereafter, which in no event shall be less than
                seven
                (7) years.

            

    

    

    ARTICLE
      16 - MISCELLANEOUS

    

    
      	
              16.1

            	
              Company
                shall not use or refer to MSU, any MSU trademarks, or any MSU employees
                or
                departments in any advertisement, sales material, website, or any
                other
                form of publicity without the prior written consent of MSU. MSU
                acknowledges that Company has or may have a reporting obligation
                under the
                Securities Exchange Act of 1934, as amended, which has or may have
                certain
                disclosure and filing obligations under applicable law, including
                but not
                limited to the public announcement and disclosure of this Agreement
                and
                the filing of the same with the United States Securities and Exchange
                Commission. It is acknowledged and agreed that such disclosure and
                filing
                shall not be deemed a violation of this
                Agreement.

            

    

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    

    
      	
              16.2

            	
              This
                exclusive li-cense Agreement is personal as to Company, and neither
                this
                Agreement nor any of the rights or obligations hereunder may be assigned
                or transferred by either party without the prior written consent
                of the
                other party. 

            

    

    

    
      	
              16.3

            	
              It
                is understood that MSU is subject to United States laws and regulations
                controlling the export of technical data, computer software, laboratory
                prototypes and other commodities (including inter
                alia
                the Arms Export Control Act, as amended and the Export Administration
                Act
                of 1979 as amended), and that its obligations hereunder are contingent
                on
                compliance with all applicable United States export laws and regulations.
                The transfer of certain technical data and/or commodities may require
                a
                license from the cognizant agency of the United States Government
                and/or
                written assurances by Company that Company shall not export data
                or
                commodities to certain foreign countries without prior approval of
                such
                agency. MSU neither represents nor warrants that a license shall
                not be
                required nor that, if required, it shall be issued. In any event,
                Company
                specifically agrees not to export or re-export any information and/or
                technical data and/or products in violation of any applicable USA
                laws
                and/or regulations.

            

    

    

    
      	
              16.4

            	
              This
                Agreement shall be construed under and interpreted under the laws
                of the
                State of Michigan, USA, except that questions affecting the construction
                and effect of any Patent or copyrights shall be determined by the
                national
                law of the country in which the Patent or copyrights have been
                granted.

            

    

    

    
      	
              16.5

            	
              All
                written communications under this Agreement shall be in the English
                language.

            

    

    

    
      	
              16.6

            	
              In
                the event that either party is prevented from performing or is unable
                to
                perform any of its obligations under this Agreement due to any act
                of God,
                fire, casualty, flood, war, strike, lockout, failure of public utilities,
                government regulation or the like, such party shall give notice to
                the
                other party in writing promptly, and thereupon the affected party's
                performance shall be excused and the time for performance shall be
                extended for the period of delay or inability to perform due to such
                occurrence.

            

    

    

    
      	
              16.7

            	
              The
                waiver by either party of a breach or default of any provisions of
                this
                Agreement by the other party must be in written form and signed by
                both
                parties, and shall not be construed as a waiver of any succeeding
                breach
                of the same or any other provision. No failure or delay by either
                Party to
                require the other to perform strictly in accordance with the terms
                hereof
                shall preclude that Party from requiring performance by the other
                at any
                later time.

            

    

    

    
      	
              16.8

            	
              This
                Agreement contains the full understanding of the parties with respect
                to
                the subject matter hereof and supersedes all prior understandings
                and
                writings relating thereto.

            

    

    

    
      	
              16.9

            	
              This
                Agreement may only be amended in a writing executed by an authorized
                signatory for each party. The parties agree that any photocopied
                or
                electronically produced copy of this fully executed original Agreement
                shall have the same legal force and effect as a copy of the Agreement
                that
                has the original signatures. The parties also agree that this Agreement
                may be executed in two counterparts, which together shall constitute
                one
                original version of this Agreement.

            

    

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    
      	
              16.10

            	
              Each
                Party shall bear its own costs and expenses incurred in the performance
                of
                its obligations hereunder without charge or expense to the other
                except as
                otherwise expressly provided in this Agreement. The Parties are and
                shall
                remain independent contractors, and nothing in this Agreement shall
                be
                construed to establish any joint venture, franchise, or relationship
                of
                partnership, employment or agency between the Parties. No fiduciary
                or
                quasi-fiduciary relationship does or shall exist between the Parties
                by
                reason of or in connection with this Agreement, in whole or in part,
                and
                each of the Parties hereby irrevocably waives any and all claims
                and
                causes of action against the other for the breach of any fiduciary
                or
                quasi-fiduciary duty arising out of or in connection with this Agreement.
                

            

    

    

    
      	
              16.11

            	
              If
                any non-material provision of this Agreement is held to be illegal,
                invalid or unenforceable under any applicable present or future law
                (a)
                such provision shall be fully severable, (b) this Agreement shall
                be
                construed and enforced as if such illegal, invalid or unenforceable
                provision had never comprised a part hereof, and (c) the remaining
                provisions of this Agreement shall remain in full force and effect
                and
                shall not be affected by the illegal, invalid or unenforceable provision
                or by its severance herefrom. 

            

    

     

    
      	
              16.12

            	
              Each
                Party shall duly execute and deliver, or cause to be duly executed
                and
                delivered, such further documents and instruments and do and cause
                to be
                done such further acts and things, including the filing of such
                assignments, agreements, documents and instruments, as may be necessary,
                or as the other Party may reasonably request, to carry out the provisions
                of this Agreement.

            

    

     

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

    

    
      	
              Michigan
                State University

            	 	
              Nanosensors,
                Inc.

            
	 	 	 
	 	 	 
	
              /s/
                Loraine Hudson

            	 	
              /s/
                Ted Wong

            
	
              Signature

            	 	
              Signature

            
	 	 	 
	
              Lorain
                J. Hudson

            	 	
              Ted
                Wong

            
	
              Printed
                Name

            	 	
              Printed
                Name

            
	 	 	 
	
              Director
                of Intellectual Property

            	 	
              President

            
	
              Title

            	 	
              Title

            
	 	 	 
	
              8/21/06

            	 	
              August
                21, 2006

            
	
              Date

            	 	
              Date

            

    

     

    
      
         

      

      
        16LICENSE
      AGREEMENT

    

    THIS
      AGREEMENT made and effective as of the date of last signing (herein the
“Effective Date”) by and between Nanosenors, Inc. (herein “LICENSEE”), having a
      principal place of business at 1800 Wyatt Drive, Suite 2, Santa Clara, CA 95054,
      and POSTECH(herein
      “LICENSOR”), having a principal place of business in Pohang
      University of Science and Technology (POSTECH) at San31, Nam-Gu, Hyoja-Dong,
      Pohang, Gyungbook, 790-784, South Korea.
      LICENSEE and LICENSOR are each a “party”, and may collectively be referred to as
      the “parties.”

    

    INTRODUCTION

    

    
      	
              1.

            	
              WHEREAS,
                LICENSOR has developed and is continuing research in the area of
                the
                Technology, as defined in Paragraph 1.1 of this Agreement; and
                

            

    

    

    
      	
              2.

            	
              WHEREAS,
                LICENSEE desires to obtain certain rights in and to the Technology;
                and

            

    

    

    
      	
              3.

            	
              WHEREAS,
                LICENSEE and LICENSOR mutually desire to formalize an agreement which
                delineates their respective rights and obligations with respect to
                the
                Technology.

            

    

    

    NOW
      THEREFORE, in consideration of the mutual covenants and promises contained
      in
      this Agreement and other good and valuable consideration, LICENSOR and LICENSEE
      agree as follows:

    

    ARTICLE
      1 - DEFINITIONS

    

    In
      the
      terms defined and used herein, the singular shall include the plural and vice
      versa. Terms in this Agreement (other than names of parties and Article
      headings) which are set forth in upper case letters have the meanings
      established for such terms in this Article 1.

    

    
      	
              1.1

            	
              “Technology”
                means LICENSOR Invention Korea Patent Application No. 2005-117687“FET
                凐䏨 㼣䉼㡰 厀ᄆ 㻄㻤,
                刈㢨 㟤㞐 䏗䍫 䏱 刈䚄&
amp;
                #160;㢌㥗⪤ 㼣䉼㡰 厀ᄆ 䏗䍫”describing
                the improvement of increased sensitivity in detection by the effect
                relating with Schottky contact region and a second planned patent
                application which will describe the process for fabricating a single
                nanowire device. A copies are presented as exhibits in Appendice
                A and B
                once this Agreement is signed by Parties. Technology shall also mean,
                for
                the purposes of this Agreement, any Improvements or modifications
                to the
                Technology as it exists on the Effective Date, but subject to Section
                2.6.

            

    

    

    
      	
              1.2

            	
              “Know-how”
                means the data and information embodied in or required to enable
                the
                Technology.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              1.3

            	
              “Patents”
                means any and all patent applications (including any amendments or
                extensions to the initial applications) filed in any country of the
                world
                by or on behalf of LICENSOR claiming the Technology and/or any patents
                maturing from such patent applications. Patents and patent applications
                claiming the technology at the time of execution of this Agreement
                include, without limitation, Korea patent application No.2005-117687
                titled “
                FET 凐䏨 㼣䉼㡰 厀ᄆ 㻄㻤,
                刈㢨 㟤㞐 䏗䍫 䏱 刈䚄&
amp;
                #160;㢌㥗⪤ 㼣䉼㡰 厀ᄆ 䏗䍫”,
                filed __December, 2005.

            

    

    
 

    
      	
              1.5

            	
              “Adjusted
                Gross Sales” means the aggregate gross revenues derived by LICENSEE and
                its Affiliates from the sale of Products and Services to, and practice
                of
                Processes for, an unaffiliated third party in an arms length commercial
                transaction, less credits granted on account of price adjustments,
                recalls, rejection or return of items previously
                sold.

            

    

    

    
      	
              1.6

            	
              “Product”
                means any and all products offered or sold by or on behalf of the
                LICENSEE
                embodying or practicing the Technology, Know-how and/or the
                Patents.

            

    

    

    
      	
              1.7

            	
              “Process”
                means any and all processes embodying or practicing the Technology,
                Know-how and/or the Patents.

            

    

    

    
      	
              1.8

            	
              “Service”
                means any and all services offered or sold by or on behalf of the
                LICENSEE
                embodying or practicing the Technology, Know-how and/or the
                Patents.

            

    

    

    
      	
              1.9

            	
              “Term”
                means the period beginning on the Effective Date and extending to
                the
                expiration of the last to expire of the Patents, or until Fifteen
                (15)
                years after the Effective Date, whichever is
                longer.

            

    

    

    
      	
              1.10

            	
              “Field”
                means use of the Technology (and Know-how) limited to detection of
                Homeland Security and Environmental Protection Agency
                applications

            

    

    

    
      	
              1.11

            	
              “Territory”
                means worldwide.

            

    

    

    
      	
              1.12

            	
              “Improvement”
                means (a) divisionals of the Patents, (b) any continuations of the
                Patents
                deriving from inventions made within the Term (i) in the course of
                research at LICENSOR supported by LICENSEE hereunder, or (ii) conceived
                or
                first reduced to practice by LICENSOR employees while conducting
                work for
                the LICENSEE under a private agreement that is disclosed to and approved
                by LICENSOR consistent with the then current LICENSOR policy on outside
                work for pay, and (c) all derivative works, discoveries and/or inventions,
                whether patentable or not, made by the parties, acting alone or jointly,
                that constitutes a modification, enhancement, extension or improvement
                of
                the Technology. 

            

    

    

    
      	
              1.13

            	
              “Affiliate”
                means any LICENSEE, corporation or business which is at least fifty
                percent owned or controlled by LICENSEE, or which owns or controls
                at
                least fifty percent of LICENSEE, or which together with LICENSEE
                is
                commonly owned or controlled by a third party who owns or controls
                at
                least fifty percent of each.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
              1.14

            	
              “Government”
                means the United States Government.

            

    

    

    
      	
              1.17

            	
              “Sublicensing
                Revenues” means any and all payments, royalties and other consideration
                collected by LICENSEE from its subLICENSEEs in connection with the
                sale,
                license or other commercial disposition of Products, Processes or
                Services
                by such subLICENSEEs.

            

    

    

    ARTICLE
      2 - LICENSES GRANTED AND RIGHTS RETAINED

    

    
      	
              2.1

            	
              LICENSOR
                hereby grants to LICENSEE during the Term of this Agreement an exclusive
                license within the Territory, limited to the Field, with the right
                to
                sublicense, to make, modify, reproduce, have made, lease, use, distribute,
                market, promote, sell, offer for sale, license and otherwise dispose
                of
                and exploit the Products, practice the Processes, and offer the Services
                under the Technology, the Know-how and/or the Patents.
                

            

    

    

    
      	
              2.2

            	
              The
                exclusive license specified in Paragraphs 2.1 is subject to a reserved
                right of LICENSOR to utilize the Technology, Know-how, and/or the
                Patents
                solely for the non-commercial research and educational purposes of
                LICENSOR.

            

    

    

    
      	
              2.3

            	
              LICENSEE
                is hereby granted by LICENSOR a right of first refusal applicable
                to any
                exclusive option or exclusive license that LICENSOR elects to offer
                with
                respect to the Technology, Know-how and/or the Patents in connection
                with
                any products, practice of the processes, and offer of the services
                under
                the Technology, the Know-how and/or the Patents outside of the licensed
                Field. With respect to any such option or license offered by LICENSOR,
                the
                LICENSEE’s right of first refusal shall expire sixty days after the
                LICENSEE receives the offered terms from LICENSOR. During reasonable
                business hours, LICENSOR shall provide the LICENSEE with any information
                requested by the LICENSEE, including access to personnel, in connection
                with the LICENSEE’s due diligence investigation in deciding whether to
                exercise any such right of first refusal hereunder. In addition,
                any
                commercial non-exclusive option or license that LICENSOR elects to
                offer
                with respect to the Technology, Know-how and/or the Patents in connection
                with any such products, practice of the processes, and offer of the
                services under the Technology, the Know-how and/or the Patents outside
                the
                licensed Field shall be offered to LICENSEE simultaneously and under
                identical terms with the offer to any third
                party.

            

    

    

    
      	
              2.4

            	
              The
                exclusive licenses specified in Paragraphs 2.1 and 2.3 may be subject
                to
                certain rights of the Government if the Technology, Know-how, and/or
                the
                Patents were created or invented in the course of Government-funded
                research. Such rights may include for example a royalty-free license
                to
                the Government and the requirement that any Product produced for
                sale in
                the United States will be manufactured substantially in the United
                States.
                LICENSOR agrees that in the event the Government exercises its right
                to
                obtain a royalty-free license from LICENSOR, then the parties will
                be
                obligated to exercise their best efforts to renegotiate, in good
                faith,
                the royalties and other amounts payable to LICENSOR pursuant to this
                Agreement to achieve an arrangement more favorable to the LICENSEE
                after
                giving full consideration to the actual or potential impact of the
                grant
                to the Government of such license. In such an event, LICENSOR further
                agrees that the LICENSEE will not be in breach of this Agreement
                in the
                event that it withholds payment of the royalties and other amounts
                which
                may be due hereunder pending the parties’ negotiations to amend the
                royalty requirements of this Agreement.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
              2.5

            	
              This
                Agreement shall not be construed as implying that either Party hereto
                shall have the right to use Background Intellectual Property of the
                other
                in connection with this Agreement or otherwise, except as expressly
                stated
                herein. “Background Intellectual Property” means property and the legal
                right therein of either or both parties developed before or independent
                of, but during term of, this Agreement including inventions, patent
                applications, patents, copyrights, trademarks, mask works, trade
                secrets
                and any information embodying proprietary data such as technical
                data and
                computer software and all derivatives thereof (other than Project
                Intellectual Property, as defined below). Except for the rights expressly
                granted by one Party to the other hereunder, no license, interest
                or right
                in, or title to, a Party’s Background Intellectual Property, or any
                intellectual property rights therein or associated therewith, shall
                be
                deemed to have been granted, vested in or transferred to the other
                Party
                under the terms of the Agreement and no such rights shall be construed
                by
                estoppel. All title to and ownership of a Party’s Background Intellectual
                Property (and the intellectual property rights therein or associated
                therewith) remain with such Party. 

            

    

    

    
      	
              2.6

            	
              Unless
                otherwise agreed in writing, legal rights relating to Project Intellectual
                Property shall be owned by the Party whose employees make or generate
                the
                Project Intellectual Property as supported by documentary evidence.
                Jointly made or generated Project Intellectual Property shall be
                jointly
                owned by the Parties unless otherwise agreed in writing. Jointly
                owned
                Project Intellectual Property shall be subject to exploitation by
                either
                without consent or obligation of other. “Project Intellectual Property”
                means the inventions, patent applications, patents, copyrights,
                trademarks, mask works, trade secrets, and any other potentially
                legally
                protectable information, including computer software, first made
                or
                generated during the performance of this Agreement. Any revenues
                and
                profits resulting from the practice, licensing, or exploitation of
                Project
                Intellectual Property pursuant to this Agreement shall be allocated
                between the LICENSEE and LICENSOR in accordance with this Agreement.
                The
                Parties agree to disclose Project Intellectual Property to each other,
                in
                writing subject to the non-disclosure and confidentiality obligations
                herein. The Parties acknowledge that they will make this disclosure
                to
                each other within three (3) months after their respective inventor(s)
                first disclose the invention in writing to the person(s) responsible
                for
                patent matters of the disclosing party.

            

    

    

    ARTICLE
      3 - R&D PERFORMANCE & MARKETING

    

    
      	
              3.1

            	
              LICENSEE
                shall use reasonable efforts to introduce Products and Processes
                into the
                commercial market as soon as practicable, consistent with sound and
                reasonable business practices and judgment. Thereafter, LICENSEE
                shall
                endeavor to keep Products and Processes reasonably available to the
                public
                during the remainder of the Term.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	
              3.2

            	
              LICENSOR
                shall have the right to terminate or render this license nonexclusive
                at
                any time after three (3) years from the Effective Date if LICENSEE:
                (a)
                has not put the Technology into commercial use in the Territory,
                directly
                or through a sublicense or (b) is not demonstrably engaged in a research,
                development, manufacturing, marketing or sublicensing program, as
                appropriate, directed toward this end. LICENSOR shall, prior to exercising
                any right under this Section 3.2, provide the LICENSEE with at least
                thirty (30) days written notice of its intention to exercise any
                rights
                hereunder and deliver a second written notice to the LICENSEE after
                the
                expiration of such thirty (30) day notice period in the event that
                LICENSOR determines to exercise its rights hereunder in the event
                that the
                LICENSEE has failed to either cure the claimed default or to take
                substantial steps towards curing such default during the thirty (30)
                day
                notice period.

            

    

    

    
      	
              3.3

            	
              LICENSOR
                agrees promptly after the Effective Date of this Agreement to deliver
                and
                to disclose to duly authorized representatives of LICENSEE, (i) all
                Know-how and proprietary technical data, methods, processes, including
                the
                technology, and other information and specifications relating to
                the
                Know-How and (ii) copies of all patent prosecution documents concerning
                the Patents and Technology, and any other documents relevant to the
                Technology and Know-how that have not been provided to LICENSEE as
                of such
                date. 

            

    

    

    ARTICLE
      4 - PATENTS AND PATENT COSTS

    

    
      	
              4.1

            	
              LICENSOR
                shall retain title to the Technology, Know-how, and the
                Patents.

            

    

    

    
      	
              4.2

            	
              LICENSOR
                shall file, prosecute, and maintain Patents in the United States
                and in
                any other countries designated by LICENSEE at LICENSEE’s expense. LICENSOR
                and LICENSEE shall jointly control, including selection of outside
                counsel
                and consultants, all pending and future preparation, filing, prosecution
                and maintenance of Patents, for which LICENSEE shall reimburse LICENSOR
                for any and all future out of pocket expenses (e.g., outside attorney
                fees, patent office registration and renewal costs etc.) relating
                to such.
                

            

    

    

    
      	
              4.3

            	
              LICENSEE
                agrees promptly to reimburse LICENSOR for its outside legal costs
                incurred
                under Paragraph 4.2 within thirty (30) days after the receipt of
                invoices
                from LICENSOR. Late payment shall be subject to interest charges
                of one
                and one-half percent (11⁄2 %) per month. Such reimbursement payments by
                LICENSEE of costs incurred by LICENSOR under Paragraph 4.2 shall
                be
                creditable against up to 50% of the royalties that are due from LICENSEE
                to LICENSOR under Article 6 during the same calendar year in which
                such
                reimbursements are due.

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
              4.4

            	
              Failure
                of LICENSEE to pay the amounts required under Paragraph 4.3 within
                ninety
                (90) days after the receipt of invoices from LICENSOR shall constitute
                a
                default by LICENSEE under this Agreement, and entitle LICENSOR to
                exercise
                its rights to terminate this Agreement, including the provision of
                notice
                and the LICENSEE’s right to cure, under Article
                13.

            

    

    

    
      	
              4.5

            	
              Nothing
                in this Agreement shall prevent LICENSOR from seeking patents on
                the
                Technology in countries other than those designated by LICENSEE;
                provided,
                however, that LICENSOR has first notified the LICENSEE of its intention
                to
                seek such additional patents and provided the LICENSEE with a reasonable
                opportunity to join in prosecution of such additional patents pursuant
                to
                Section 4.2. In the event the LICENSEE declines to pursue such patent
                prosecution, it may be filed, prosecuted and maintained at LICENSOR’s sole
                expense, and shall be free of any obligations to LICENSEE under this
                Agreement.

            

    

    

    ARTICLE
      5 - PUBLICATION RIGHTS

    

    
      	
              5.1

            	
              Subject
                to obtaining the prior written consent of the LICENSEE, which shall
                not be
                unreasonably withheld, LICENSOR reserves the right to publish or
                present
                the results of its research on the Technology.

            

    

    

    ARTICLE
      6 - PAYMENTS AND ROYALTIES

    

    
      	
              6.1

            	
              LICENSEE
                agrees to pay to LICENSOR a non-refundable initial fee of Ten Thousand
                United States Dollars ($10,000.00) within ten business days from
                the
                execution of this License
                Agreement.

            

    

     

    
      	6.2	
              (a)

            	
              During
                the Term of this Agreement, the LICENSEE shall pay to LICENSOR a
                royalty
                of five percent (5.0 %) of Adjusted Gross Sales. Where a Product
                or
                Process is not sold, but is otherwise disposed of for commercial
                value,
                Adjusted Gross Sales for the purpose of computing royalties shall
                be the
                Adjusted Gross Sales price at which Products or Processes of similar
                kind
                and quality, sold in similar quantities, are currently being offered
                for
                sale by LICENSEE. Where such Products and Processes are not currently
                being separately offered for sale by LICENSEE, but are offered in
                connection with other products or processes, Adjusted Gross Sales
                shall be
                LICENSEE’s cost of manufacture, determined by LICENSEE’s customary
                accounting procedures, increased by 100
                %.

            

    

    

    
      	 	
              (b)

            	
              During
                the Term, LICENSEE shall pay to LICENSOR a royalty of five percent
                (5.0%)
                of Adjusted Gross Sales of any SubLICENSEE.

            

    

    

    
      	
              6.3

            	
              Beginning
                in calendar year 2008, LICENSEE agrees to pay LICENSOR an annual
                minimum
                payment as shown in the table below. Should the actual royalties
                paid
                under Paragraph 6.2 fall short of this minimum amount, LICENSEE shall
                pay
                LICENSOR the difference when the royalty payment for the last calendar
                quarter of such calendar year is due in accordance with Paragraph
                6.4.
                

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
              Year

            	
              Minimum
                Payment

            
	
              2008-2012

            	
              $10,000.00

            
	
              2013-2017

            	
              $20,000.00

            
	
              2018-2022

            	
              $25,000.00

            
	
              2023-termination

            	
              $30,000.00

            

    

    

    
      	
              6.4

            	
              During
                any fiscal year during the Term, LICENSEE shall deliver to LICENSOR
                within
                forty-five (45) days after the end of each of its first three calendar
                quarters and within ninety (90) days following the end of its fiscal
                year:

            

    

    

    
      	 	
              (a)

            	
              A
                written report showing all figures necessary to compute Adjusted
                Gross
                Sales and LICENSEE’s computation of all remuneration to LICENSOR due under
                this Agreement for such calendar quarter, accompanied by a check
                in full
                payment of the remuneration due. Adjusted Gross Sales shall be segmented
                in each such report on a country-by-country basis, including the
                rates of
                exchange used for conversion to USA Dollars from the currency in
                which
                such sales were made.

            

    

    

    
      	 	
              (b)

            	
              For
                any Adjusted Gross Sales which are made in a currency other than
                U.S.
                dollars, the amount of such sales shall be converted to U.S. Dollars
                using
                the currency exchange rates set forth in The
                Wall Street Journal
                on
                the last day of the calendar
                quarter.

            

    

    

    
      	 	
              (c)

            	
              All
                payments due shall be made in U.S. dollars without deduction for
                taxes,
                assessments, or other charges of any kind which may be imposed on
                LICENSEE
                by the government of the country where the transactions occur or
                any
                political subdivision thereof with respect to any amounts payable
                to
                LICENSOR pursuant to this Agreement, and such taxes, assessments,
                or other
                charges shall be assumed by
                LICENSEE.

            

    

    

    
      	 	
              (d)

            	
              Late
                payments shall be subject to an interest charge of one and one-half
                percent (11⁄2%) per month. 

            

    

    

    
      	
              6.5

            	
              LICENSEE
                shall keep for a period of three (3) years following the year to
                which
                such records relate, full, true and accurate books of accounts and
                other
                records containing all information and data which may be necessary
                to
                ascertain and verify the remuneration payable to LICENSOR hereunder.
                During the Term and for a period of two (2) years following its
                termination or expiration, LICENSOR shall have the right, upon reasonable
                prior written notice, to audit, or have an agent, accountant or other
                representative, audit such books, records and supporting data upon
                fifteen
                (15) days notice. All information subject to such audit shall be
                deemed
                Confidential Information and treated in accordance with the provisions
                of
                Section 10. Any audit shall be at LICENSOR’s expense, except that LICENSEE
                shall reimburse LICENSOR for the cost of the audit in the event that
                the
                audit establishes an underpayment of ten percent (10%) or more of
                the
                amount due.

            

    

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    ARTICLE
      7 - RESERVED

    

    ARTICLE
      8 - DILIGENCE

    

    
      	
              8.1

            	
              LICENSEE
                shall deliver to LICENSOR within one hundred twenty (120) days after
                the
                end of fiscal 2007 and 2008, a report describing LICENSEE’s progress
                toward meeting its objectives together with an updated version of
                its
                business plan. 

            

    

    

    ARTICLE
      9 - INFRINGEMENT

    

    
      	
              9.1

            	
              Each
                party shall promptly report in writing to the other party during
                the Term
                any infringement or suspected infringement of any Patent, or unauthorized
                use or misappropriation of the Technology or Know-how by a third
                party of
                which it becomes aware, and shall provide the other party with all
                available evidence supporting said infringement, suspected infringement
                or
                unauthorized use or
                misappropriation.

            

    

    

    
      	
              9.2

            	
              LICENSEE
                shall have the right to initiate an infringement suit or other appropriate
                action against any third party who at any time has infringed or is
                suspected of infringing any of the Patents or of using without proper
                authorization all or any portion of the Technology or Know-how. LICENSEE
                shall give LICENSOR sufficient advance written notice of its intent
                to
                initiate such action and the reasons therefor, and shall provide
                LICENSOR
                with an opportunity to make suggestions and comments regarding such
                action. LICENSEE shall keep LICENSOR promptly informed of the status
                of
                any such action. LICENSEE shall pay all expenses of such action.
                LICENSOR
                shall offer reasonable assistance to LICENSEE in connection therewith
                at
                no charge to LICENSEE except for reimbursement of reasonable out-of-pocket
                expenses. Recoveries, reimbursements, damages, profits or awards
                from such
                action shall first be applied to reimburse LICENSEE and LICENSOR
                for
                litigation costs. Any remaining recoveries, reimbursements, damages,
                profits or awards of whatever nature shall be treated as Adjusted
                Gross
                Sales under this Agreement.

            

    

    

    
      	
              9.3

            	
              In
                the event that LICENSOR is a legally indispensable party to an
                infringement suit or other action as described in Paragraph 9.2,
                LICENSOR
                may join the action as a co-plaintiff. LICENSEE shall reimburse LICENSOR
                for any reasonable costs it incurs as a party to any action brought
                by
                LICENSEE or its subLICENSEE, irrespective of whether LICENSOR shall
                become
                a co-plaintiff.

            

    

    

    
      	
              9.4

            	
              In
                the event that LICENSEE does not within six (6) months from first
                determining that an actual infringement of the Technology is likely
                to
                exist, (a) secure cessation of the infringement, or (b) initiate
                suit
                against the infringer, LICENSOR shall thereafter have the right to
                take
                action against the infringer at LICENSOR’s own expense. LICENSEE shall
                offer reasonable assistance to LICENSOR in connection with such action
                at
                no charge to LICENSOR except for the reimbursement of reasonable
                out-of-pocket expenses. Any damages, profits or awards of whatever
                nature
                recovered from such action shall belong solely to
                LICENSOR.

            

    

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    ARTICLE
      10 - CONFIDENTIALITY

    

    
      	
              10.1

            	
              In
                connection with this Agreement, it is acknowledged that each party
                may
                disclose its confidential and proprietary information to the other
                party.
                Any such information that is first disclosed in writing, or if first
                disclosed orally is later transmitted in written form, and is labeled
                as
                “Confidential” is referred to herein as “Confidential Information.” No
                ownership or other rights or interests in Confidential Information
                shall
                be transferred or otherwise affected by its disclosure to the other
                Party.

            

    

    

    
      	
              10.2

            	
              Each
                party hereto shall maintain the Confidential Information of the other
                party in confidence, and shall not disclose or otherwise communicate
                such
                Confidential Information to others, or use it for any purpose except
                pursuant to, and in order to carry out, the terms and objectives
                of this
                Agreement, and hereby agrees to exercise every reasonable precaution
                to
                prevent and restrain the unauthorized disclosure of such Confidential
                Information by any of its directors, officers, employees, consultants
                or
                agents.

            

    

    

    
      	
              10.3

            	
              Each
                Party may disclose Confidential Information of the other Party
                to
                its legal or financial advisors and to those employees, directors
                or
                consultants that have a need to know such Confidential Information,
                provided such persons are bound by confidentiality restrictions
                substantially similar to those set forth herein.
                Each Party shall be responsible for compliance with the confidentiality,
                use and other terms of this Article by (a) such Party itself and
                its
                Affiliates, subLICENSEEs, contractors and consultants (including
                third-party clinicians), and (b) each of the foregoing
                persons’ respective personnel, agents and representatives, as well as (c)
                any other persons to whom such Party directly or indirectly makes
                available, discloses or provides any Confidential Information of
                the other
                Party in accordance with this Section 10.3. Each Party shall take
                appropriate action, whether by instruction, agreement or otherwise,
                to
                ensure the protection, confidentiality and security of such Confidential
                Information.

            

    

    

    
      	
              10.4

            	
              The
                obligations set forth in this Article 10 shall remain in force during
                and
                shall survive the entry into and expiration or earlier termination
                of this
                Agreement for any reason.
                Failure on the part of the a receiving party to abide by this section
                or
                Article 10 shall cause the disclosing party irreparable harm for
                which
                damages will not be an adequate remedy at law. Accordingly, the disclosing
                party shall have the right to seek injunctive relief to prevent any
                threatened or actual violations of this section in addition to whatever
                remedies it may have at law. Receiving party expressly
                waives the defense that a remedy in damages will be
                adequate.

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	
              10.5

            	
              The
                provisions of this Article 10 shall not apply to any Confidential
                Information disclosed hereunder
                which:

            

    

    

    
      	 	
              (a)

            	
              Was
                lawfully disclosed to the recipient by an independent third party
                rightfully in possession of the Confidential Information;
                or

            

    

    

    
      	 	
              (b)

            	
              Has
                been published or is generally known to the public in accordance
                with
                Article 5 or otherwise through no fault or omission by any of the
                parties;
                or

            

    

    

    
      	 	
              (c)

            	
              Was
                independently known to the recipient prior to receipt from the disclosing
                party without confidentiality restriction, or was independently developed
                by the recipient without reference to the disclosing party’s Confidential
                Information, in either case, as is demonstrably documented in written
                records of the recipient; or

            

    

    

    
      	 	
              (d)

            	
              Is
                required to be disclosed by either party to comply with court orders
                or
                applicable laws (including the disclosure obligations of the LICENSEE
                pursuant to the Securities Exchange Act of 1934, as amended), to
                defend or
                prosecute litigation or to comply with governmental regulations;
                provided,
                however, that such party gives the other party prompt notice of such
                requirement so as to enable to take steps to protect its Confidential
                Information and takes reasonable and lawful actions to avoid and/or
                minimize the degree of such
                disclosure.

            

    

     

    ARTICLE
      11 - WARRANTY DISCLAIMER; LIMITATION ON LIABILITY

    

    
      	
              11.1

            	
              Nothing
                in this Agreement shall be construed
                as:

            

    

    

    
      	 	
              (a)

            	
              A
                warranty or representation by LICENSOR as to the validity or scope
                of any
                Patent;

            

    

    

    
      	 	
              (b)

            	
              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, copyrights and/or trademarks of third
                parties, except as set forth
                herein;

            

    

    

    
      	 	
              (c)

            	
              An
                obligation of LICENSOR to bring or prosecute actions or suits against
                third parties for infringement;

            

    

    

    
      	 	
              (d)

            	
              Conferring
                rights to use in advertising, publicity or otherwise any trademark
                or the
                name of LICENSOR; or

            

    

    

    
      	 	
              (e)

            	
              Granting
                by implication, estoppel or otherwise any licenses under patents
                of
                LICENSOR other than the licenses granted under Section 2 hereof,
                regardless of whether such other patents are dominant of or subordinate
                to
                any Patent.

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	
              11.2

            	
              LICENSOR
                hereby represents and warrants that:

            

    

     

    (a)
      Ownership.
      LICENSOR has exclusive legal right, power and ability, and throughout the term
      of this Agreement, will continue to have exclusive legal right, power and
      ability, to grant and authorize any access to, possession and use of and to
      license to the Technology, Know-how and Patents, free and clear of all liens,
      charges and encumbrances, and of any rights of third parties and without
      violating any applicable law, regulation, agreement or obligation. 

     

    (b)
      Right
      to License.
      LICENSOR has the full, unrestricted right, power and authority to enter into
      and
      perform this Agreement and license to LICENSEE the Technology, Know-how and
      Patents, including, but not limited to, the right to grant and authorize
      LICENSEE to grant sublicenses thereunder. LICENSOR shall retain such full,
      unrestricted right, power, and authority throughout the term of this Agreement
      and shall not grant or otherwise cause to be granted to any person other than
      LICENSEE any license or rights that are inconsistent with, derogate from or
      reduce the licenses or rights granted to LICENSEE under this
      Agreement.

     

    (c)
      Knowledge
      of Infringement.
      To the
      best of LICENSOR’s knowledge, as of the Effective Date of this Agreement: (i)
      none of the Technology, Know-how and Patents, the making, use, sale, offer
      for
      sale, import, and other exploitation of the Technology, Know-how and Patents,
      or
      the exercise of any rights granted in the Agreement under the Technology,
      Know-how and Patents, infringes upon or misappropriates the intellectual
      property or proprietary or other rights of any other person or entity, and
      no
      such person or entity has alleged any such infringement, and LICENSOR is not
      aware of any basis for any claim thereof; and (ii) there is no infringement
      of
      any of the Technology, Know-how or Patents.

     

    (d)
      Knowledge
      of Invalidity.
      As of
      the Effective Date of this Agreement, none of the Technology, Know-how and
      Patents is subject to any litigation or proceedings, and LICENSOR has no
      knowledge of any threat of such litigation or proceeding or of facts that would
      likely be the basis for instituting any such litigation or proceeding. LICENSOR
      has no reason to believe that any of the Technology, Know-how and Patents will
      be invalid, unenforceable or will fail to issue, or that the claims of Patent
      will be materially limited or restricted beyond the presently pending
      claims.

     

    (e)
      Due
      Diligence.
      LICENSOR has not knowingly failed to provide to LICENSEE any documents or
      information or access to sufficient data and information to conduct a reasonable
      fully informed evaluation of the Technology, Know-how and Patents, and has
      not,
      in connection with the Parties’ entry into this Agreement communicated or
      otherwise provided to LICENSEE any statement of material fact, or failed to
      communicate or provide to LICENSEE any fact, the communication or omission
      of
      which is or was, as of the Effective Date, known, or upon reasonable inquiry
      should have been known, by LICENSOR to be false, misleading or deceptive in
      any
      material respect, including any information set forth in this
      Agreement.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    
      	
              11.3

            	
              Except
                as expressly set forth in this Agreement, NEITHER PARTY MAKES ANY
                REPRESENTATIONS, EXTENDS ANY WARRANTIES OF ANY KIND, EITHER EXPRESS
                OR
                IMPLIED, AND ASSUMES NO RESPONSIBILITIES WHATEVER WITH RESPECT TO
                THE USE,
                SALE OR OTHER DISPOSITION OF PRODUCTS, PROCESSES, OR SERVICES
                INCORPORATING OR MADE BY USE OF THE TECHNOLOGY, KNOW-HOW, OR PATENTS
                LICENSED UNDER THIS AGREEMENT OR INFORMATION, IF ANY, FURNISHED UNDER
                THIS
                AGREEMENT. EXCEPT AS EXPRESSLY SET FORTH HEREIN, SUCH TECHNOLOGY,
                KNOW-HOW, PATENTS AND INFORMATION ARE PROVIDED AS IS, WITHOUT WARRANTY
                OF
                MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR ANY OTHER
                WARRANTY,
                EXPRESS OR IMPLIED.

            

    

    

    
      	
              11.4

            	
              EXCEPT
                AS PROVIDED IN SECTION 11.6, BELOW, NEITHER PARTY ASSUMES ANY LIABILITY
                UNDER THIS AGREEMENT FOR ACTUAL MONETARY DAMAGES IN EXCESS OF THE
                AGGREGATE ROYALTY PAYMENTS MADE BY LICENSEE TO LICENSOR DURING THE
                TWELVE
                MONTH PERIOD IMMEDIATELY PRECEDING THE DATE OF ASSERTION OF A FIRST
                CLAIM
                BY A PARTY OR $50,000, WHICHEVER IS GREATER. EXCEPT AS PROVIDED IN
                SECTION
                11.6, BELOW, IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER
                PARTY
                FOR ANY LOSS OF DATA, LOST PROFITS, COST OF PROCUREMENT OF SUBSTITUTE
                TECHNOLOGY OR SERVICES OR FOR ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL
                OR
                INDIRECT DAMAGES ARISING FROM THE USE OF THE PATENTS OR KNOW HOW
                OR
                OTHERWISE ARISING OUT OF THIS AGREEMENT, HOWEVER CAUSED AND ON ANY
                THEORY
                OF LIABILITY, WHETHER FOR BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE)
                OR OTHERWISE. THIS LIMITATION WILL APPLY EVEN IF A PARTY HAS BEEN
                ADVISED
                OF THE POSSIBILITY OF SUCH DAMAGES. THESE LIMITATIONS SHALL APPLY
                NOTWITHSTANDING THE FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED
                REMEDY.

            

    

    

    
      	
              11.5

            	
              The
                preceding Section 11.4 shall not apply to (a) a material breach by
                a Party
                of Article 10 (Confidentiality), or (b) damages, losses and claims
                arising
                out of a Party’s willful misconduct or fraud, or (c) a Party’s
                indemnification obligations under Article 14. The Parties acknowledge
                that
                these Limitations of Liability, as expressed in Sections 11.4 and
                11.5
                have been separately negotiated, are a material inducement to the
                Parties
                entering into this Agreement on the terms provided herein and shall
                be
                enforceable regardless of whether any remedy provided for fails of
                its
                essential purpose.

            

    

    

    ARTICLE
      12 - NOTICES

    

    
      	
              12.1

            	
              Communications
                to LICENSEE concerning this Agreement should be addressed
                to:

            

    

    

    Dr.
      Ted
      Wong

    President

    Nanosensors,
      Inc.

    1800
      Wyatt Drive, Suite 2

    Santa
      Clara, CA 95054

    FAX:
      (408) 855-0079

    Email:
      tlwongusa@yahoo.com

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    
      	
              12.2

            	
              Communications
                to LICENSOR concerning this Agreement should be addressed
                to:

            

    

    

    POSTECH

    Office
      for Technology Licensing

    Pohang
      University of Science and Technology (POSTECH)

    San31,
      Nam-Gu, Hyoja-Dong

    Pohang,
      Gyungbook, South Korea 790-784

    FAX:
      +82-54-279-8798

    

    Any
      such
      communication shall be deemed to have been given (i) when delivered, if
      personally delivered or sent by facsimile (with confirmed receipt and promptly
      confirmed by personal delivery, registered or certified mail or overnight
      courier as provided herein) during the addressee’s normal business on a business
      day, (ii) on the business day after dispatch, if sent by
      nationally-recognized overnight courier, and (iii) on the third business day
      following the date of mailing, if sent by mail.

    

    ARTICLE
      13 - TERMINATION

    

    
      	
              13.1

            	
              LICENSEE
                may terminate this Agreement at any time by providing three month’s
                written notice to LICENSOR. Upon termination a final report shall
                be
                submitted to LICENSOR, and any royalty payments and unreimbursed
                patent
                expenses due to LICENSOR shall become immediately payable.
                

            

    

    

    
      	
              13.2

            	
              In
                the event that LICENSOR shall be in default of any of its obligations
                hereunder, the LICENSEE may, at its sole option terminate this Agreement
                by providing written notice to LICENSOR specifying the nature of
                the
                default. Termination under these circumstances shall be effective
                thirty
                (30) days following receipt of said notice by LICENSOR, unless LICENSOR
                cures said default prior to the expiration of said thirty (30) day
                period.

            

    

    

    
      	
              13.3

            	
              In
                the event that LICENSEE shall be in material default of any of its
                obligations hereunder, LICENSOR may at its sole option: (a) terminate
                this
                Agreement or (b) convert the exclusive license hereunder to a
                non-exclusive license. LICENSOR shall exercise either of these options
                by
                providing written notice to LICENSEE specifying the nature of the
                default
                including the amount of royalties then due, if any. Termination under
                these circumstances shall be effective thirty (30) days following
                receipt
                of said notice by LICENSEE, unless LICENSEE cures said default, or
                has
                taken substantial steps to cure such default, and makes payment of
                all
                monies due plus interest, if any, prior to the expiration of said
                thirty
                (30) day period.

            

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    
      	
              13.4

            	
              Upon
                termination, LICENSEE shall provide LICENSOR
                with:

            

    

    

    
      	 	
              (a)

            	
              The
                right to access any regulatory information filed with any US or foreign
                government agency with respect to the Technology, Know-How or Patents;
                and
                

            

    

    

    
      	 	
              (b)

            	
              If
                LICENSEE has filed patent applications or obtained patents which
                represent
                a modification or improvement within the scope of the claims contained
                in
                the Patents, LICENSEE agrees upon request to enter into good faith
                negotiations with LICENSOR or its future LICENSEE(s) for the purpose
                of
                granting licensing rights to said modifications or improvements in
                timely
                fashion and under commercially reasonable
                terms.

            

    

    

    
      	
              13.6

            	
              Upon
                any termination of this Agreement or conversion to a non-exclusive
                license
                under Paragraph 13.3, neither party shall be relieved of any obligations
                incurred prior to such termination or conversion, and the obligations
                of
                the parties under any provisions which by their nature are intended
                to
                survive any such termination or conversion shall survive and continue
                to
                be enforceable. Upon the expiration (but not in the event of premature
                termination) of the Agreement, LICENSEE shall have a perpetual, royalty
                free, fully paid-up, non-exclusive license under any Know-How to
                make,
                have made, use, sell, offer for and sale the Products, Processes
                and
                Services after such expiration. 

            

    

    

    
      	
              13.7

            	
              In
                the event (i) that a court of competent jurisdiction determines that
                the
                LICENSEE is insolvent, such that its liabilities exceed the fair
                market
                value of its assets, (ii) the LICENSEE shall make an assignment for
                the
                benefit of creditors, or (iii) of the filing of a petition for relief
                in
                bankruptcy by the LICENSEE on its own behalf, or the filing of any
                such
                petition against the LICENSEE if the proceeding is not dismissed
                or
                withdrawn within ninety (90) days thereafter, LICENSOR shall have
                the
                right to terminate this entire Agreement immediately upon giving
                LICENSEE
                written notice of such termination.

            

    

    

    
      	
              13.8

            	
              Any
                sublicenses granted by LICENSEE under this Agreement shall provide
                for
                assignment to LICENSOR of LICENSEE’s interest therein upon termination of
                this Agreement, solely as it may relate to the Technology, Know-how
                or
                Patents and not to any other interest therein of the LICENSEE.
                

            

    

    

    ARTICLE
      14 - INDEMNIFICATION

    

      
        	
                14.1

              	
                LICENSEE
                  agrees to defend LICENSOR at LICENSEE’s cost and expense, and will
                  indemnify and hold harmless LICENSOR and its trustees, officers,
                  faculty,
                  professional staff, employees, and agents and their respective
                  successors,
                  heirs and assigns (the “LICENSOR Indemnitees”) from and against any and
                  all claims, losses, costs, damages, fees (including attorneys fees)
                  or
                  expenses arising out of or in connection with (i) the manufacture,
                  use,
                  commercialization, marketing or sale by LICENSEE of any Product,
                  Process,
                  or Service hereunder (including but not limited to any product
                  liability
                  claims, whether brought as a tort, breach of warranty or strict
                  liability
                  cause of action) and (ii) any breach by LICENSEE of a material
                  term of
                  this Agreement. Notwithstanding the foregoing, the LICENSEE’s
                  indemnification obligations hereunder shall not apply to any claim
                  or
                  action alleging that the Technology, Know-How or Patent infringes
                  the
                  intellectual property rights of a third-party if such infringement
                  would
                  exist even without the actions of the LICENSEE under this Agreement,
                  in
                  which event LICENSOR shall defend and indemnify the LICENSEE in
                  accordance
                  with the provisions of Section 14.2 hereof. LICENSEE agrees, at
                  its own
                  expense, to provide attorneys reasonably, acceptable to LICENSOR
                  to defend
                  against any actions brought or filed against any LICENSOR Indemnitee
                  with
                  respect to the subject of the indemnity contained herein, whether
                  or not
                  such actions are rightfully
                  brought.

              

      

    

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    
      	
              14.2

            	
              LICENSOR
                agrees to defend LICENSEE at LICENSOR’s cost and expense, and will
                indemnify and hold harmless LICENSEE and the LICENSEE’s Affiliates,
                directors, officers, agents and personnel and their respective successors,
                heirs and assigns (the “LICENSEE Indemnitees”) from and against any and
                all claims, losses, costs, damages, fees (including attorneys fees)
                or
                expenses arising out of or in connection with (i) a claim that the
                Technology, Know-how or Patents infringes the intellectual property
                rights
                of a third-party and (ii) any breach by LICENSOR of a material term
                of
                this Agreement. Notwithstanding the foregoing, LICENSOR’s indemnification
                obligations hereunder shall not apply to any claim or action contemplated
                by Section 14.2(i) to the extent that such claim arises directly
                from the
                LICENSEE’s manufacture, use, commercialization, marketing or sale of any
                Product, Process, or Service hereunder, in which event the LICENSEE
                shall
                defend and indemnify LICENSOR in accordance with the provisions of
                Section
                14.1 hereof. LICENSOR agrees, at its own expense, to provide attorneys
                reasonably, acceptable to LICENSEE to defend against any actions
                brought
                or filed against any LICENSEE Indemnitee with respect to the subject
                of
                the indemnity contained herein, whether or not such actions are rightfully
                brought.

            

    

    

    
      	
              14.3

            	
              If
                such an infringement claim is made, the party providing indemnity
                hereunder may, at its own expense, exercise any of the following
                remedies
                that is reasonably and commercially practicable: (1) obtain for the
                other
                party the right to continue to use, the Technology consistent with
                the
                Agreement; (2) modify the Technology so it is non-infringing and
                in
                compliance with this Agreement; or (3) replace the Technology with
                non-infringing technology that is compliant with this Agreement.
                

            

    

     

    
      	
              14.4

            	
              The
                indemnification obligations hereunder are contingent upon the indemnified
                party (a) giving prompt written notice of any claim for which
                indemnification is sought to the indemnifying party; (b) granting
                sole control of the defense or settlement of the claim or action
                to the
                indemnifying party (except that the indemnified party’s prior written
                approval will be required for any settlement that reasonably can
                be
                expected to require a material affirmative obligation of or result
                in any
                ongoing material liability to the indemnified party); and
                (c) providing reasonable cooperation to the indemnifying party and,
                at the indemnifying party’s request and expense, assistance in the defense
                or settlement of the claim. Notwithstanding the foregoing, the
                indemnification obligations hereunder shall not be relieved hereunder
                for
                failure to do the foregoing, or delay with so doing, unless the
                indemnifying party is prejudiced thereby. In addition, the indemnified
                party may, at its own expense, participate in its defense of any
                claim.
                

            

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      15 - INSURANCE REQUIREMENTS

    

    
      	
              15.1

            	
              Beginning
                at such time as LICENSEE begins to exercise the rights it has been
                granted
                pursuant to Article 2, LICENSEE shall at its sole cost and expense
                procure
                and maintain commercial general liability insurance in amounts not
                less
                than one million U.S. Dollars ($1,000,000) per incident and $1,000,000
                annual aggregate, and naming the Indemnitees as additional insureds.
                Such
                general liability insurance shall provide (i) product liability coverage
                and (ii) broad form contractual liability coverage for LICENSEE’s
                indemnification obligations under this Agreement. The LICENSEE shall
                also
                maintain worker’s compensation coverage consistent with statutory
                requirements. Such insurance shall be carried with companies rated
“A” or
                better by A. M. Best or a self-insurance program reasonably acceptable
                to
                LICENSOR. The minimum amounts of insurance coverage required shall
                not be
                construed to create a limit of LICENSEE’s liability with respect to its
                indemnification obligations under this
                Agreement.

            

    

    

    
      	
              15.2

            	
              LICENSEE
                shall provide LICENSOR with written evidence of such insurance upon
                request of LICENSOR. LICENSEE shall provide LICENSOR with written
                notice
                at least 30 days prior to the cancellation, non-renewal or material
                adverse change in such insurance. If LICENSEE or its subLICENSEE,
                Affiliate or agent does not obtain replacement insurance providing
                comparable coverage within a period of 60 days following any such
                cancellation, non-renewal or material adverse change, LICENSOR shall
                have
                the right to terminate this Agreement effective at the end of such
                60 day
                period upon written notice to the
                LICENSEE.

            

    

    

    
      	
              15.3

            	
              LICENSEE
                shall maintain such commercial general liability insurance beyond
                the
                expiration or termination of this Agreement during (i) the period
                that any
                Product, Process or Service incorporating the Technology, Know-How
                or
                Patents continues to be commercially distributed or sold by LICENSEE
                or by
                a subLICENSEE, or an Affiliate or agent of LICENSEE and (ii) for
                a
                reasonable period thereafter, which in no event shall be less than
                five
                (5) years.

            

    

    

    ARTICLE
      16 - MISCELLANEOUS

    

    
      	
              16.1

            	
              LICENSEE
                shall not use or refer to LICENSOR, any LICENSOR trademarks, or any
                LICENSOR employees or departments in any advertisement, sales material,
                website, or any other form of publicity without the prior written
                consent
                of LICENSOR, which consent shall not be unreasonably
                withheld.

            

    

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    
      	
              16.2

            	
              This
                exclusive license Agreement is personal as to LICENSEE, and neither
                this
                Agreement nor any of the rights or obligations hereunder may be assigned
                or transferred by either party without the prior written consent
                of the
                other party. 

            

    

    

    
      	
              16.3

            	
              It
                is understood that LICENSOR is subject to United States laws and
                regulations controlling the export of technical data, computer software,
                laboratory prototypes and other commodities (including inter
                alia
                the Arms Export Control Act, as amended and the Export Administration
                Act
                of 1979 as amended), and that its obligations hereunder are contingent
                on
                compliance with all applicable United States export laws and regulations.
                The transfer of certain technical data and/or commodities may require
                a
                license from the cognizant agency of the United States Government
                and/or
                written assurances by LICENSEE that LICENSEE shall not export data
                or
                commodities to certain foreign countries without prior approval of
                such
                agency. LICENSOR neither represents nor warrants that a license shall
                not
                be required nor that, if required, it shall be issued. In any event,
                LICENSEE specifically agrees not to export or re-export any information
                and/or technical data and/or products in violation of any applicable
                USA
                laws and/or regulations.

            

    

    

    
      	
              16.4

            	
              This
                Agreement shall be construed under and interpreted under the laws
                of the
                State of California, USA, except that questions affecting the construction
                and effect of any Patent or copyrights shall be determined by the
                national
                law of the country in which the Patent or copyrights have been
                granted.

            

    

    

    
      	
              16.5

            	
              All
                written communications under this Agreement shall be in the English
                language.

            

    

    

    
      	
              16.6

            	
              In
                the event that either party is prevented from performing or is unable
                to
                perform any of its obligations under this Agreement due to any act
                of God,
                fire, casualty, flood, war, strike, lockout, failure of public utilities,
                government regulation or the like, such party shall give notice to
                the
                other party in writing promptly, and thereupon the affected party's
                performance shall be excused and the time for performance shall be
                extended for the period of delay or inability to perform due to such
                occurrence.

            

    

    

    
      	
              16.7

            	
              The
                waiver by either party of a breach or default of any provisions of
                this
                Agreement by the other party must be in written form and signed by
                both
                parties, and shall not be construed as a waiver of any succeeding
                breach
                of the same or any other provision. No failure or delay by either
                Party to
                require the other to perform strictly in accordance with the terms
                hereof
                shall preclude that Party from requiring performance by the other
                at any
                later time.

            

    

    

    
      	
              16.8

            	
              This
                Agreement contains the full understanding of the parties with respect
                to
                the subject matter hereof and supersedes all prior understandings
                and
                writings relating thereto.

            

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    
      	
              16.9

            	
              This
                Agreement may only be amended in a writing executed by an authorized
                signatory for each party. The parties agree that any photocopied
                or
                electronically produced copy of this fully executed original Agreement
                shall have the same legal force and effect as a copy of the Agreement
                that
                has the original signatures. The parties also agree that this Agreement
                may be executed in two counterparts, which together shall constitute
                one
                original version of this Agreement.

            

    

    

    
      	
              16.10

            	
              Each
                Party shall bear its own costs and expenses incurred in the performance
                of
                its obligations hereunder without charge or expense to the other
                except as
                otherwise expressly provided in this Agreement. The Parties are and
                shall
                remain independent contractors, and nothing in this Agreement shall
                be
                construed to establish any joint venture, franchise, or relationship
                of
                partnership, employment or agency between the Parties. No fiduciary
                or
                quasi-fiduciary relationship does or shall exist between the Parties
                by
                reason of or in connection with this Agreement, in whole or in part,
                and
                each of the Parties hereby irrevocably waives any and all claims
                and
                causes of action against the other for the breach of any fiduciary
                or
                quasi-fiduciary duty arising out of or in connection with this Agreement.
                

            

    

    

    
      	
              16.11

            	
              If
                any provision of this Agreement is held to be illegal, invalid or
                unenforceable under any applicable present or future law (a) such
                provision shall be fully severable, (b) this Agreement shall be construed
                and enforced as if such illegal, invalid or unenforceable provision
                had
                never comprised a part hereof, (c) the remaining provisions of this
                Agreement shall remain in full force and effect and shall not be
                affected
                by the illegal, invalid or unenforceable provision or by its severance
                herefrom and (d) in lieu of such illegal, invalid or unenforceable
                provision, there shall be added automatically as a part of this Agreement,
                a legal, valid and enforceable provision as similar in terms to such
                illegal, invalid or unenforceable provision as may be
                possible.

            

    

     

    
      	
              16.12

            	
              Each
                Party shall duly execute and deliver, or cause to be duly executed
                and
                delivered, such further documents and instruments and do and cause
                to be
                done such further acts and things, including the filing of such
                assignments, agreements, documents and instruments, as may be necessary,
                or as the other Party may reasonably request, in connection with
                this
                Agreement or to carry out more effectively the provisions and purposes,
                or
                to better assure and confirm unto such other Party its rights and
                remedies
                under this Agreement.

            

    

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    

     

    
      
        
        

      

      
        19

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