Document:

Unassociated Document

    EXHIBIT
      10.2

    

    [Redux
      Letterhead]

    

    Redux
      Holdings, Inc.

    11726
      San
      Vicente Blvd., Suite 300

    Los
      Angeles, CA 90049

    

     

    August
      31, 2006

     

    Laurus
      Master Fund, Ltd. (“Laurus”)

    c/o
      Laurus Capital Management, LLC

    825
      Third Ave 

    14th&
      17th
      Floor

    New
      York, NY 10022

    

    Re:
      Naturade Inc. - Treatment of Claims of Laurus Master Fund, Ltd.
      (Laurus)

    

    Dear
      Sirs,

     

    This
      binding letter agreement confirms the obligation of Redux Holdings, Inc.
      concerning the following terms for the treatment of Laurus’s claim in the
      case.

    

    1. Allowed
      Secured Claim.
      Laurus’s claim in the amount of approximately $2.9 million, will be treated as
      being fully secured in the case. Laurus will maintain, without modification,
      the
      liens granted to Laurus pursuant to the Amended and Restated Security and
      Purchase Agreement (“Security Agreement”).

    

    2. DIP
      Financing.
      Laurus will provide to Naturade DIP financing pursuant to the terms and
      conditions set forth in the Amended and Restated Secured Revolving Note and
      the
      Security Agreement. Naturade’s obligations to Laurus pursuant to the Revolving
      Note will not be modified in the case. 

    

    3.
       Pre-Confirmation
      Treatment of Term Note Obligations.
      Naturade’s obligations to Laurus pursuant to the Amended and Restated Secured
      Term Note (“Term Note”) will accrue interest during Naturade’s Chapter 11 case
      in accordance with the terms and conditions of the Term Note. No payments of
      principal or interest will be made on the Term Note until the first day of
      the
      first full month following the effective date (“Effective Date”) of a Chapter 11
      plan to be filed by Naturade in its case (“Plan”). 

    

    4.
       Post-Confirmation
      Treatment of Term Note Obligations.
      Pursuant to Naturade’s Plan, Naturade will satisfy its obligations to Laurus
      pursuant to the Term Note, without any modification, except only that (i) the
      Maturity Date will be extended by one year, from January 6, 2009 to January
      6,
      2010, and (ii) Section 1.3 of the Term Note will be revised to provide that,
      commencing on the first day of the first full month following the Effective
      Date
      of the Plan, Naturade will satisfy the Principal Amount of the Term Note by
      means of equal monthly payments through the Maturity Date. 

    

    5. Redux
      Holdings, Inc. Obligation To Fund.
      To the extent that the Laurus DIP financing and/or Naturade’s use of Laurus cash
      collateral is insufficient, Redux Holdings, Inc. shall be responsible for
      funding all payments needed to confirm the plan and for working capital of
      Naturade before and after confirmation. 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    6. Support
      for Plan.
      Laurus will support the treatment of Laurus’s claims pursuant to Naturade’s
      Plan, and will cast a vote in favor of the confirmation of the Plan, provided
      that the treatment of Laurus’s claims pursuant to the Plan is materially the
      same as that set forth herein.

    

    If
      you have any questions or comments regarding any of the foregoing, please call
      me. I look forward to working with you to achieve a successful reorganization
      of
      Naturaade’s financial affairs. 

     

    
      	 	
              Very
                truly yours,

            
	 	 
	 	REDUX HOLDINGS, INC.
	 	 
	 	
              By/s/
                Adam Michelin

              Name:
                Adam Michelin

              Title:
                Chairman of the Board and Chief 

              Executive
                OfficerExhibit
      10.24

     

    

    Technology
      License Agreement

     

    between

     

    The
      Research Foundation of State University of New York

     

    for
      and on behalf of University at Buffalo

     

    and

     

    Medi-Hut
      Co., Inc.

    

    This
      Technology License Agreement (this “Agreement”) is entered into this 10th day of
      November, 2006 (the “Effective Date”) by and between The Research Foundation of
      State University of New York, for and on behalf of University at Buffalo, a
      non-profit corporation organized and existing under the laws of the State of
      New
      York (the “Foundation”), Donald D. Hickey, M.D. (“Hickey”) and Clas E. Lundgren,
      M.D., Ph.D. (a/k/a Claes Lundgren and referenced herein as “Lundgren”) and
      Medi-Hut Co., Inc., a corporation duly organized under the laws of the State
      of
      Nevada, and having its principal place of business at 215 Morris Avenue, Spring
      Lake, New Jersey 07762 (“Licensee”). Foundation, Hickey and Lundgren will be
      collectively referenced herein as “Licensor”.

     

    WHEREAS,
      Licensor and Licensee wish to enter into an exclusive license agreement to
      facilitate the development and commercialization of certain technology owned
      by
      Licensor so that this technology may be utilized to the fullest extent for
      the
      benefit of Licensee, Licensor, the inventor(s) and the public;

     

    NOW,
      THEREFORE, in consideration of the terms and considerations hereinafter set
      forth, the parties agree as follows:

     

    1.    DEFINITIONS

    

    All
      capitalized terms used in this Agreement will have the meanings stated below
      or
      defined elsewhere in the Agreement.

     

    1.1    “Affiliate”
means
      every corporation or entity which, directly or indirectly, or through one or
      more intermediaries, controls, is controlled by, or is under common control
      with
      Licensee. 

     

    1.2    “Copyrights”
      means
      Licensor’s copyrights in any software (the “Software”) developed and/or owned by
      Licensor to embody or enable the technology claimed in the Patent Rights and
      any
      manuals, protocols or any other documentation, whether in electronic or print
      format, relating to the Software.

    

    1.3    “Derivatives”
      means
      Licensee created computer software and any documentation, whether in electronic
      or print format, relating thereto which will include, or be based in whole
      or in
      part on, Software.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1.4    “Field”
      means
      all fields of use.

    

    1.5    “Licensor
      Improvements”means
      any
      further technological developments of the Technology developed by Dr. Donald
      D.
      Hickey during the term of this Agreement and owned or controlled by Licensor
      and/or the Foundation, Hickey or Lundgren individually, that is not filed as
      a
      continuation-in-part application claiming priority to any patent applications
      listed in Exhibit A.

    

    1.6    “Licensee
      Improvements”
      means
      any further technological developments of the Technology developed by Licensee
      during the term of this Agreement and owned or controlled by
      Licensee.

    

    1.7    “Intellectual
      Property”
      means
      all know-how, experimentation documentation, lab notebooks, patient
      documentation, source code, and any and all trade secrets relating to the Patent
      Rights. 

    

    1.8    “Licensed
      Product”
      means
      all products that incorporate, utilize, or are made with the use of the
      Technology, Licensee Improvements, Licensor Improvements licensed to Licensee
      after the Effective Date, Software, or any part thereof and products that
      incorporate, utilize or are made with the use of a Derivative or Source Code.
      

    

    1.9    “Net
      Sales”
      means
      the gross revenues actually received by Licensee, Affiliates and Sublicensees
      in
      the Field and Territory during the Term from the manufacture, use, sale, lease
      or other transfer of Licensed Product to non-sublicensee third parties, less:
      (a) sales and/or use taxes actually paid, import and/or export duties actually
      paid, excise taxes and other compulsory payments to governmental authorities,
      (b) outbound transportation paid, prepaid or allowed, including shipping,
      freight, transportation and insurance for the Licensed Product to the extent
      such costs are included in Licensee’s or Sublicensees’ invoice price to its
      customers for the Licensed Product, and (c) all bona fide allowances for
      returns, rebates, chargebacks, provisions for bad debts determined in accordance
      with U.S. G.A.A.P., and discounts actually given to and taken by non-sublicense
      third parties, such allowances to be adjusted to actual on a periodic basis,
      no
      less frequently than annually. In this context, gross revenues will also include
      the fair market value of any non-cash consideration actually received by
      Licensee, Affiliates and Sublicensees for the manufacture, use, sale, lease,
      or
      other transfer of Licensed Product. Net Sales does not include the transfer
      price paid by a Sublicensee to the Licensee for Licensed Product. 

    

    1.10    “Patent
      Costs”
      means
      all reasonable costs
      incident to filing, prosecuting and maintaining the patents associated with
      the
      Patent Rights in the United States and elected foreign countries, and any and
      all reasonable costs incurred in filing continuations, divisional applications
      or related applications thereon and any re-examinations or reissue proceedings
      thereof.

    

    1.11    “Patent
      Rights”
      means
      Licensor’s patent rights to any subject matter claimed in or covered by (a) any
      pending or issued United States or foreign patent or any patent application
      listed in Exhibit A attached hereto, including any reissues, reexaminations,
      renewals, substitutions, or extensions thereof; (b) any continuation,
      continuation-in-part or divisional applications of the patents and patent
      applications listed in Exhibit A; and (c) any patents issued on continuation
      or
      divisional applications, including reissues and reexaminations, of the patents
      and patent applications listed in Exhibit A.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    1.12    “Source
      Code”
      means
      the source code for the Software and/or any Derivative.

    

    1.13    “Sublicensing
      Revenue”
      means
      any payments that Licensee or an Affiliate receives from a Sublicensee in
      consideration of the sublicense of the rights granted Licensee and Affiliates
      under Article 5, including without limitation, license fees, milestone payments,
      license maintenance fees, and other payments, but specifically excluding
      royalties on Net Sales, development grants specifically for the development
      of
      Licensed Products, equity or debt sold to Sublicensee, reimbursed patent costs
      and expenses (may only be deducted once and for the first time collected),
      any
      payment made pursuant to the indemnification obligations of the parties, and
      any
      payment made to Licensee in connection with a cross-license of technology or
      similar in-kind technology transfers or exchanges directly related to the
      development, manufacture and sale of Licensed Product. 

    

    1.14    “Sublicensee”
      means
      any non-Affiliate sublicensee of the rights granted Licensee under Article
      5,
      specifically excluding those non-Affiliate entities to which a sublicense is
      granted only in connection with a distribution agreement with the Licensee
      and
      no royalty is paid to Licensee under such distribution agreement; provided,
      however, that a royalty is paid by Licensee or an Affiliate to Licensor for
      Licensed Products sold under such distribution agreement.

    

    1.15    “Technology”
      means
      (a) confidential
      and/or proprietary Information and materials in which Licensor has a legal
      interest and which involves the Technology and/or UB IPD File Nos. S-409,
      R-5421 and R-6013 and which was developed by Donald D. Hickey, M.D. at the
      University at Buffalo on or before the Effective Date and which Licensor is
      free
      to disclose to Licensee (“Know-How”), (b) the Patent Rights, (c) the Copyrights,
      and (d) the Intellectual Property. 

    

    1.16    “Term”
      means
      the period of time beginning on the Effective Date and ending on the later
      of
      (i) the expiration date of the last to expire Patent Right, or (ii) ten (10)
      years from the sale of the first Licensed Product. 

    

    1.17    “Territory”
      means
      worldwide.

    

    2.    
      GRANT
      OF RIGHTS AND RETAINED RIGHTS

    

    2.1    Exclusive
      License.
      Licensor
      grants to Licensee an exclusive license under its Technology rights to (a)
      develop, make, have made, use, sell and offer for sale or otherwise exploit
      the
      Licensed Products, and (b) use and reproduce Software, create Derivatives,
      and
      distribute Software to end-users through the normal channels of distribution,
      in
      the Field and Territory during the Term. Licensees will have the unrestricted
      right to develop Licensee Improvements relating to the Licensed Products in
      the
      United States for distribution and exploitation of the Licensed Products either
      in the United States or outside of the United States. Licensee will also have
      the unrestricted right to develop Licensee Improvements relating to the Licensed
      Products in any foreign country for distribution and exploitation of the
      Licensed Products in any other country, including the U.S. 

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    2.2    Retained
      Rights.
      Licensor
      retains the right to use and reproduce the Technology and Software and to create
      derivatives of the Software for educational purposes and internal research
      and
      development only. Unless Licensor has complied with the ‘First Look’ provision
      set forth in Section 2.3, Licensor will not have the right to use and reproduce
      the Technology and create and exploit such derivatives of the Software for
      any
      other purpose. Unless Licensor has complied with the ‘First Look’ provision set
      forth in Section 2.3, Licensor will not use the Technology and/or Software
      to
      create any product that competes or has the potential to compete with the
      Licensed Products in the Territory. Hickey and Lundgren each will execute a
      restrictive covenant agreement, attached hereto as Exhibit D for Hickey and
      Exhibit E for Lundgren and incorporated by reference herein.

    

    2.3    “First
      Look" Right. Subject
      to any existing obligations to third parties and so long as Licensee is not
      in
      default of any of its obligations hereunder, Licensor hereby grants to Licensee
      a "first look" right as to any Licensor Improvements. "First Look" right means
      the exclusive right to negotiate a definitive license agreement for an
      exclusive, royalty bearing, worldwide license to use and otherwise commercially
      exploit Licensor’s intellectual property rights to any Improvements. This "first
      look" right will commence on the date that Licensor discloses the Improvements
      to Licensee, and Licensee has sixty (60) days (“Notice Period”) to provide
      Licensor written notice (“First Look Notice”) of its interest in entering into
      negotiations for a license under Licensor’s intellectual property rights to
      make, have made, use, sublicense, sell, offer for sale products that make use
      of
      the Improvements. If and when Licensor receives the First Look Notice, the
      parties will promptly and in good faith commence license negotiations. The
      first
      look right will terminate (1) at the end of the Notice Period if Licensee has
      not notified Licensor of its interest in negotiating a license, or (2) one
      hundred fifty (150) days after Licensor receives the First Look Notice if the
      parties have not yet finalized a definitive license agreement. In the event
      that
      the parties are unable to agree on terms for a complete license agreement for
      the Licensor Improvement within ninety (90) days of the notification of the
      “first look”, Licensee, may at its discretion, refer any outstanding issues to a
      mutually agreed upon mediator. The mediator will, based upon and consistent
      with
      the terms and conditions of this Agreement, upon the parties’ prior offers to
      one another, and upon custom and practice in transactions between medical device
      companies and universities, make recommendations to both parties for resolution
      of any outstanding issues. If, after thirty (30) days of mediation, the parties
      still have not reached agreement, the “first look” right will expire.
Disclosure
      to Licensee of any confidential
      or proprietary information relating to any Improvements will be considered
      “Confidential Information” subject to Section 16 of this Agreement. Subject to
      any existing or hereafter incurred obligations to third parties, Licensor will
      not undertake to negotiate entering into any exclusive license under its
      intellectual property rights to make, have made, use, sell, offer for sale
      products that make use of the Licensor Improvements with any other party until
      after termination of Licensee’s “First Look” right. 

    

    2.4    Consulting
      Obligation.
      Hickey
      and Lundgren will each individually provide up to fifty (50) hours of consulting
      services to Licensee regarding the Technology. Such consulting services will
      be
      provided at no additional cost to Licensee at such times and places to be
      determined by the parties. Such consulting services will only be for consulting
      that can reasonably be expected to be within Hickey’s and Lundgren’s respective
      areas of knowledge and expertise with respect to the Technology, but will not
      include the performance of research and development projects, animal studies,
      or
      clinical studies. Any consulting services requested by Licensee in excess of
      the
      fifty (50) hours will be provided for a consulting fee to be determined by
      the
      parties. Licensee will be responsible for and advance or promptly reimburse
      Hickey and Lundgren for any out-of-pocket costs associated with the consulting
      services, such as travel, food and lodging.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    2.5    No
      Compulsory Package License.
      The
      parties agree and acknowledge that Licensor requested that Licensee license
      all
      of the licensed patents together under a single license and that the Licensor
      did not request that Licensee license any patent individually.

    

    2.6    Transfer
      of Tangible Assets.
      Within
      fifteen (15) days of the Effective Date of this Agreement, Licensor will deliver
      or otherwise provide to Licensee all of Licensor’s tangible assets relating to
      the Licensed Products, Intellectual Property, Software, Source Code, Licensor
      Improvements and Derivatives, including but not limited to those items set
      forth
      on Exhibit B attached hereto and incorporated herein. Title ownership of the
      items listed in Exhibit B will remain with Licensor. Licensor may request that
      any item listed in Exhibit B be returned to Licensor by Licensee for Licensor’s
      use under Section 2.2 Retained Rights according to a mutually agreeable
      schedule, and any such item must be returned upon termination of this Agreement
      for any reason.

    

    3.    COMPENSATION
      AND PAYMENT TERMS

    

    3.1    Royalties
      on Net Sales.
      Licensee
      will pay Licensor a royalty of 5% (“Royalty Rate”) on annual Net Sales. Earned
      royalties due on Net Sales made in the United States will be paid to Foundation,
      and earned royalties on Net Sales made outside of the United States will be
      paid
      to Hickey and Lundgren.

    

    3.2    Reduction
      in Royalty Rate.
      Notwithstanding the foregoing, Licensee will have the right to reduce the
      Royalty Rate owed to Licensor hereunder Section 3.1 in the following
      circumstances and in accordance with the following calculations:

    

    (a)    Licensee
      will have the right to reduce the Royalty Rate paid to Licensor for a Licensed
      Product in the event that Ethox International, Inc. or its employees
      (collectively “Ethox”) has any intellectual property right or claim or any other
      legal right with respect to the Technology and such right(s) were developed,
      owned, assigned or originated by Ethox prior the execution of this Agreement
      and
      such right(s) prevent or otherwise limit Licensee’s ability to exploit the
      Technology. The royalty rate payable to Ethox may be deducted from the Royalty
      Rate specified under Section 3.1 but in no case will the Royalty Rate specified
      in Section 3.1 be reduced by more than one percent (1%). For example, if the
      royalty rate payable to Ethox is 1%, the Royalty Rate specified in Section
      3.1
      will be reduced to 4%. 

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (b)    In
      the
      event that a competitor of Licensee or Sublicensee sells a product in a country
      where there is no patent protection, which is competitive with a Licensed
      Product and captures twenty-five percent (25%) or more of the market in such
      country for esophageal balloon catheter-based cardiac performance measurement,
      then the royalties otherwise payable in such country as set forth in this
      section after any adjustments made under 3.2 (a), (b) or (c) will be reduced
      by
      35%. In order to make such an adjustment to the royalty for sales in a country
      where there is no patent protection, Licensee must provide to Licensor i)
      evidence of sales of the competitive product in that country and ii) reasonably
      demonstrate the capture of twenty-five percent (25%) of the market by providing
      to Licensor third party market tracking service data, if available. If third
      party market tracking service data is not available, the licensee will make
      reasonable efforts to demonstrate the capture of twenty-five percent (25%)
      of
      the market through other means. 

    

    (c)    The
      Royalty Rate payable by Licensee on Net Sales by Sublicensees may be reduced
      according to the adjustments provided in this Section 3.2, provided that any
      incremental royalty rate paid by a Sublicensee to Licensee is similarly reduced
      under the same circumstances and in accordance with the same calculations
      provided for in this Section 3.2.

    

    Each
      such
      Royalty Rate or payment reduction will be indicated in the quarterly and annual
      reports provided to Licensor pursuant to Section 7.2, below. 

    

    3.3    Annual
      Minimum Royalty.
      Beginning with the first full calendar year of sales of Licensed Product in
      the
      United States and for two years thereafter, Licensee will pay Licensor an Annual
      Minimum Royalty payment of $100,000 against which any Royalty on Net Sales
      paid
      in the same calendar year for sales in the United States will be credited.
      Subject to Section 10.3, beginning with the first full year of sales of Licensed
      Product outside of the United States (“Non U.S.”) and for two years thereafter,
      Licensee will pay Licensor an Annual Minimum Royalty payment of $100,000 against
      which any Royalty on Net Sales paid in the same calendar year for sales outside
      the United States will be credited. The Annual Minimum Royalty for a given
      year
      will be due at the time payments are due for the calendar quarter ending on
      December 31. 

    

    Annual
      Minimum Royalty due on sales made in the United States will be paid to
      Foundation and Annual Minimum Royalty due on sales made outside of the United
      States will be paid to Hickey and Lundgren.  

     

    3.4    Sublicensing
      Fees.
      Licensee
      will pay Hickey and Lundgren 18.75% of Sublicensing Revenue, and Licensee will
      pay Foundation 6.25% of Sublicensing Revenue (Licensor will in the aggregate
      receive 25% of the Sublicensing Revenue, and such amount will be considered
      “Sublicensing Fees”). 

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    3.5    Milestone
      Payments.
      Licensee
      will pay Licensor milestone payments according to the following schedule or
      events (each payable one time only):

    

    
      	
              Milestone

            	 	
              One
                Time Payment 

              Owed
                to
                Foundation 

            	 	
              One
                Time Payment Owed
to Hickey and
                Lundgren

            
	
               

              First
                insertion of a catheter utilizing the Technology in a human clinical
                trial. 

            	 	
              $18,750

            	 	
              $56,250

            
	
               

              First
                submission for regulatory approval in any country

            	 	
              $25,000

            	 	
              $75,000

            
	
               

              First
                notice of regulatory approval to market in any country.

            	 	
              $37,500

            	 	
              $112,500

            

    

    

    3.6    Payment
      Terms.
      All
      dollar amounts referenced herein will refer to U.S. Dollars. Payments with
      designated payment dates are due and payable on or before those dates. Earned
      royalty payments will be made within thirty (30) days after the end of each
      calendar quarter for the calendar quarter. All invoiced payments will be paid
      within thirty (30) days of Licensee’s receipt of invoice. When Licensed Products
      are sold for currencies other than U.S. Dollars, earned royalties will first
      be
      determined in the foreign currency of the country in which the Licensed Products
      were sold and then converted into equivalent U.S. Dollars. The exchange rate
      is
      that rate quoted in the Wall Street Journal on the last business day of the
      reporting period and is quoted as local currency per U.S. Dollar.

    

    3.7    Payment
      Address for Foundation. All
      payments due Foundation will be made payable to “The Research Foundation of
      State University of New York” and will be sent to the below
      address:

    

    UB
      Office
      of Science, Technology Transfer & Economic Outreach

    Intellectual
      Property Division

    UB
      Technology Incubator

    Baird
      Research Park

    1576
      Sweet Home Road

    Amherst,
      NY 14228

    Attn:
      Licensing Specialist

    

    3.8    Payment
      Address for Hickey and Lundgren.
      All
      payments due Hickey and Lundgren will be made payable to the Client Trust
      Account reference of “Lundgren & Hickey 01378.00019” and will be wired to
      the below address:

     

    
      	
              Account
                Name:

            	
              Hodgson
                Russ LLP

            
	
              Account
                Number:

            	
              10-314-3

            
	
              Bank
                Name:

            	
              Manufacturers
                and Traders Trust Co.

            
	
              Bank
                ABA Number:

            	
              022000046

            
	
              Foreign
                Wire:

            	
              M&T
                Swift Code MANTUS 33

            
	
              Contact :

            	
              Sandy
                Pulli, Extension 1378

            
	
              Please
                Reference :

            	
              Lundgren
                & Hickey 01378.00019

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    3.9    Foreign
      Charges.
      Royalties due on Net Sales that occur in any country outside the United States
      may not be reduced by any deduction of withholding, value-added taxes, fees,
      or
      other charges imposed by the government of such country, except as permitted
      in
      the definition of Net Sales. Licensee is responsible for all bank transfer
      charges.

    

    4.0    DUE
      DILIGENCE

     

    4.1    Licensee
      will use commercially reasonable efforts to commercialize and market Licensed
      Products as soon as practicable and in accordance with the milestone events
      set
      forth herein.

    

    4.2    Unless
      there is “good reason” that such milestones cannot be reached with commercially
      reasonable efforts, Licensee undertakes to reach the following milestones in
      the
      timeframes set forth below:

    

    
      	(a)  	
              Within
                nine (9) months of the Effective Date, Licensee
                will:

            

    

    
      	i.  	
              Make
                contact with and engage in an initial meeting with the FDA and the
                EMEA to
                seek guidance on approval of the
                device,

            

    

    
      	ii.  	
              Engage
                a manufacturer and seek completion of the prototype devices necessary
                to
                conduct clinical trials, should such trials be required by FDA or
                EMEA,

            

    

    
      	iii.  	
              Design
                the required clinical trials and define the endpoints sought from
                such
                clinical trials.

            

    

     

    
      	(b)  	
              Within
                fifteen (15) months from the Effective Date, Licensee
                will:

            

    

    
      	i.  	
              Make
                application for approval to market the device in the U.S. and EU
                with the
                respective governing agencies,

            

    

    
      	ii.  	
              Make
                contact with and engage in an initial meeting with the governing
                agencies
                in Japan and India to seek guidance on approval of the
                device,

            

    

    
      	iii.  	
              Negotiate
                a manufacturing contract for the production of the device to be marketed
                commercially.

            

    

     

    
      	(c)  	
              Within
                twenty-four (24) months from the Effective Date, Licensee
                will:

            

    

    
      	i.  	
              Gain
                approval to market the device in at least one
                jurisdiction,

            

    

    
      	ii.  	
              Be
                capable of manufacturing, or having manufactured, commercial versions
                of
                the device for sale,

            

    

    
      	iii.  	
              Have
                developed a sales force, either internally or per a third party service
                or
                distributor, in the U.S. and the
                EU.

            

    

    
      	iv.  	
              Have
                established a service agent to provide customer service for the device
                in
                each jurisdiction in which the device may be
                marketed.

            

    

     

    
      	(d)  	
              Within
                thirty-six (36) months from the date that the Licensed Product is
                approved
                by the FDA for marketing in the U.S., Licensee will on its own or
                through
                a Sublicensee, gain approval to market the device in Japan.
                

            

    

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    As
      used
      herein, the term “good reason” will include:

    

    
      	1.  	
              Events
                of force majeure bearing on the ability of Licensee to make, use
                or sell
                the device in the respective
                jurisdiction(s);

            

    

     

    
      	2.  	
              The
                performance of the device in such a fashion that it is deemed to
                be
                dangerous or to incur undo risk for the user or patient or is medically
                unreliable;

            

    

     

    
      	3.  	
              A
                determination by a governmental agency that the device will require
                clinical trials that reasonably cannot be completed before the milestone
                is reached;

            

    

     

    
      	4.  	
              A
                challenge, claim, suit or interference to the Patent Rights or division
                of
                a patent that raises a significant commercial risk unless
                resolved;

            

    

     

    
      	5.  	
              A
                determination that the device will require the filing of a PMA (by
                FDA in
                the U.S., or by similar determination by a governing agency in another
                jurisdiction);

            

    

     

    
      	6.  	
              The
                revelation of facts concerning the state of development of the device,
                the
                clinical or biological results pertaining thereto, the ownership
                of the
                device or other significant facts bearing on the commercial viability
                of
                the device, which are contrary to or in conflict with the statements
                and/or representations of the Licensor or its agents concerning the
                device; or

            

    

     

    
      	7.  	
              Adverse
                events or other clinical results suggesting a change in design or
                manufacture.

            

    

    

    Except
      with respect to the occurrence of the events set forth in either 4 or 6 above,
      in the event of failure to meet the milestones for “good reason”, Licensee and
      Licensor will negotiate in good faith to amend the milestones, taking into
      account the “good reason” event that has occurred, in order to establish a
      revised set of commercially reasonable milestones and timeframes to be met
      by
      Licensee going forward. 

    

    In
      the
      event that: (i) a challenge, claim, suit interference to the Patent Rights
      that
      raises a significant commercial risk unless resolved, or is incapable of being
      resolved, or (ii) the revelation of facts concerning the state of development
      of
      the device, the clinical or biological results pertaining thereto, the ownership
      of the device or other significant facts bearing on the commercial viability
      of
      the device, which are contrary to or in conflict with the statements and/or
      representations of the Licensor or its agents concerning the device, Licensee
      will have the right to terminate this Agreement in accordance with Section
      10.3.

    

    5.0    SUBLICENSING

    

    The
      license granted in this Agreement includes the right of Licensee to grant
      sublicenses to third parties during the Term.
      With
      respect to sublicenses granted pursuant to Article 5, Licensee will:

    

    
      	
            	(a)	
              not
                receive, or agree to receive, anything of value in lieu of cash as
                considerations from a third party under a sublicense granted pursuant
                to
                Article 5 without the express written consent of Licensor,
                unless such consideration is a cross-license of technology by Sublicensee
                to Licensee for Licensee’s exploitation of the Patent Rights;
                

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	
            	(b)	
              to
                the extent applicable, include all of the rights of and obligations
                due to
                Licensor and contained in this Agreement;

            

    

     

    
      	
            	(c)	
              promptly
                provide Licensor with a copy of each sublicense issued; and

            

    

     

    
      	
            	(d)	
              use
                commercially reasonable efforts to collect all
                payments due, directly or indirectly, to Licensor from Sublicensees
                and
                summarize and deliver all reports due, directly or indirectly, to
                Licensor
                from Sublicensees.
                

            

    

    

    Upon
      termination
      of this Agreement for any reason, Licensor,
      at
      its
      sole discretion,
      will
determine
      whether Licensee
      will cancel
      or
assign
      to
      Licensor any and all sublicenses. 

    

    6.    PATENT
      PROSECUTION AND PATENT COSTS

    

    6.1    Patent
      Costs Incurred Pre-Effective Date.
      Licensee
      will reimburse Licensor $264,300 for actual Patent Costs incurred by Licensor
      prior to the Effective Date in accordance with the following payment
      schedule:

    

    
      	
              Payment
                Due Date

            	 	
              Payment
                Amount to
the
                Foundation

            	 	
              Payment
                Amount to
Hickey
                and Lundgren

            
	 	 	 	 	 
	
              Within
                Five (5) Days of
the Effective Date

            	 	
               

              $
                9,435

            	 	
               

              $
                31,465

            
	
              November
                1, 2007

            	 	
              $
                18,870

            	 	
              $
                61,130

            
	
              November
                1, 2008

            	 	
              $
                33,822

            	 	
              $
                109,578

            

    

    

    6.2    Patent
      Rights Management.
      Licensor
      will control and manage all future preparation, filing, prosecution and
      maintenance of the Patent Rights; provided however, that Licensor will (a)
      cause
      its patent counsel to timely copy Licensee on all official actions and written
      correspondence with, and received from, any patent office, and (b) allow
      Licensee a reasonable opportunity to comment and advise Licensor on all filings
      and communications to be made with any patent office and Licensor will consider
      and reasonably incorporate all comments and advice, provided they are consistent
      with Licensor’s interests. In the event that Licensor’s patent counsel fails to
      perform legal services in accordance with professional standards or performs
      services in a manner that may jeopardize the Patent Rights, Licensee will notify
      Licensor that new patent counsel should be selected and the parties will
      cooperate in the joint selection of new patent counsel acceptable to both
      parties. If Licensee is not satisfied with the services performed by Licensor’s
      patent counsel for any reason other than those stated above, Licensee may notify
      Licensor of the issue with patent counsel and Licensor will seek to resolve
      the
      issue in a timely manner, not to exceed thirty (30) days from the date of such
      notice. If the issue is not resolved to the satisfaction of Licensee within
      said
      time period, then Licensee may request the selection of new patent counsel.
      The
      parties will cooperate in the selection of new patent counsel, which counsel
      will be mutually acceptable to both parties. The selection of the new counsel
      will be made within thirty (30) days of the date Licensee requests new patent
      counsel. Both parties agree to be reasonable in the selection of new patent
      counsel. When the new counsel is agreed upon by the parties, Licensor will
      dismiss the original patent counsel and request a transfer of all legal files
      to
      the new patent counsel with as much speed as is reasonable, but in not more
      than
      fifteen (15) days. 

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    6.3    Post-Effective
      Date Patent Costs.
      Licensee
      will be directly responsible for payment of all Patent Costs incurred after
      the
      Effective Date. Licensor will instruct respective patent counsels to set up
      direct billing arrangements with Licensee under terms and conditions
      satisfactory to the Licensee and consistent with industry practices between
      similar entities. Licensee will directly negotiate billing terms and legal
      fees
      with Licensor’s patent counsel. Licensor will request copies of all invoices
      from patent counsel and Licensee will copy Licensor on all payments to patent
      counsel.

     

    6.4    Declinations.
      Licensee
      may elect to terminate its payment obligations with respect to any patent
      application or patent in Patent Rights upon three (3) months written notice
      to
      Licensor. Licensor will use reasonable efforts to curtail further Patent Costs
      for such application or patent when such notice of termination is received
      from
      Licensee. Licensee is responsible for paying any Patent Cost incurred prior
      to
      the end of the three (3) month notice period. Licensor, in its sole discretion
      and at its sole expense, may continue prosecution and maintenance of said
      application or patent, in which case Licensee’s license under such Patent Rights
      and other rights related to Technology in such country or territory will
      terminate. Non-payment of any portion of Patent Costs with respect to any
      application or patent may be deemed by Licensor as an election by Licensee
      to
      terminate its payment obligations with respect to such application or patent.
      The failure of Licensee to pay any such fee or costs within one-hundred twenty
      (120) days of receipt of an invoice for same will cause Licensee to, upon
      receipt of notice from Licensor, lose all rights in the country or territory
      for
      which fees or costs were due, unless Licensor receives notice from Licensee
      that
      such invoice is in dispute. In the event of a dispute regarding an invoice,
      Licensee’s rights will not be subject to termination for non-payment of the
      disputed invoice in accordance with this section. Licensor and Licensee will
      make good faith efforts to resolve any such dispute with the respective patent
      counsel. Following the loss of rights in any country or territory by Licensee,
      Licensor will be free to exploit or contract with third parties to exploit
      the
      Technology rights to (a) make, have made, use, sell and offer for sale Licensed
      Products, and (b) use and reproduce Software, create Derivatives, and distribute
      Software to end users in such jurisdiction. Nothing herein will obligate
      Licensor to apply for, prosecute or maintain any patent or copyright
      registration in any jurisdiction other than those set forth in Exhibit A (List
      of Patents).

     

    7.    BOOKS,
      RECORDS AND REPORTS

    

    7.1    Books
      and Records.
      Licensee
      will keep complete, true and accurate books of account containing reasonable
      particulars that may be necessary for the purpose of showing the amounts payable
      to Licensor hereunder and for the purpose of showing compliance with all other
      obligations under this Agreement. Licensee will use reasonable efforts to
      require any Affiliate and Sublicensee to comply with this Section. Said books
      and the supporting data will be available at all reasonable times for five
      (5)
      years following the end of the calendar year to which they pertain, to
      confidential inspection (subject to Foundation’s obligations relating to
      internal reporting and accounting requirements) by Licensor or its agents,
      upon
      reasonable notice to Licensee, for the purpose of verifying Licensee’s royalty
      statement or compliance in other respects with this Agreement. Licensor and
      its
      agents may make copies of relevant information during the course of an
      inspection. In addition, Licensee agrees to provide copies to Licensor of
      relevant records upon request of Licensor. Each party will promptly pay or
      credit the other for any underpayment or overpayment discovered during an
      inspection. Should such inspection lead to the discovery of a greater than
      5%
      discrepancy in reporting to Licensor’s detriment, Licensee will pay (a) the full
      cost of the inspection, and (b) accrued interest at the lesser of the maximum
      rate allowed by law or 1 1⁄2 % per month. 

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    7.2    Reports.
      After an
      initial sale of Licensed Product by Licensee, Affiliate or Sublicensee in a
      given country, within sixty (60) days after the end of each calendar quarter
      during the term of the Agreement, Licensee will provide reports containing
      the
      following information relating to the quarter: (a) number and type of Licensed
      Products made by or for Licensee and any Sublicensees; (b) number and type
      of
      Licensed Products sold by Licensee, Affiliates and Sublicensees; (c) Net Sales
      (and the calculation of Net Sales); (d) royalties due under Section 3.1; (e)
      Sublicensing Revenue (and the calculation of Sublicensing Revenue, including
      documentation of any allowed exclusions under Section 1.14); (f) Sublicensing
      Fees due under Section 3.3, (g) the total amount (royalties and Sublicensing
      Fees) due for such quarter; and (h) justification for any reduction in Royalty
      Rate under Section 3.2 . Within ninety (90) days after the end of each calendar
      year during the term of the Agreement, Licensee will also provide reports
      containing the following information relating to the calendar year: (a) progress
      on the commercialization of the Technology and the development of Licensed
      Products (i.e., new product development, product evaluation and testing,
      marketing plans, sales forecasts, significant commercialization events and
      progress related to completion of the milestones set forth in Section 4.2);
      and
      (b) any Net Sales adjustments for allowances according to Section 1.9. The
      foregoing will be provided on a country-by-country basis.

    

    7.3    Report
      Certification.
      Each
      report will be signed by an officer of Licensee, and all reports will be
      prepared in accordance with U.S. G.A.A.P. If no royalties are due for a fiscal
      quarter, Licensee will submit a report to Licensor that states
      this.

    

    8.    PATENT
      RIGHTS INFRINGEMENT

    

    Upon
      either Party becoming aware of any potential infringement of the Patent Rights,
      Software, Technology, Derivatives, Licensor Improvements, or other intellectual
      property relating to the Licensed Products in the Territory, such Party will
      promptly give notice thereof to the other Party which notice will contain all
      information possessed by the Party, giving such notice relating to such
      potential infringement. Licensee will have the right but not the obligation,
      in
      its own name, to institute infringement proceedings against third parties based
      on any such potential or actual infringement. If Licensee does not institute
      infringement proceedings against such third parties within thirty (30) days
      after its knowledge of such potential infringement, Licensor will have the
      right, but not the obligation, to institute such proceedings. The expenses
      of
      such proceedings, including legal fees, will be borne by the Party instituting
      suit. Each Party will execute all necessary and proper documents and take all
      other appropriate action to allow the other Party to institute and prosecute
      such proceedings. Any award paid by third parties as a result of such
      proceedings (whether by way of settlement or otherwise) will be applied as
      follows: 

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    
      	(a)  	
               first,
                toward reimbursement for the legal fees and expenses incurred by
                the Party
                or Parties that instituted and prosecuted suit;

            

    

     

    
      	(b)  	
               second,
                after payment of the amount set forth in clause (a) above, thirty
                percent
                (30%) of any remainder may be retained by the Party or Parties that
                instituted and prosecuted the suit;
                and

            

    

     

    
      	(c)  	
               third,
                after payment of the amount set forth in clauses (a) and (b) above,
                any
                remainder will be treated as Net Sales under this Agreement. In the
                event
                that Licensor receives an award, Licensor will deduct the appropriate
                royalty payment in accordance with Section 3.3 and pay Licensee the
                balance of the award within thirty (30) days of Licensor’s receipt of such
                award. 

            

    

     

    The
      indemnifications obligations under this Section 8 will be applicable to any
      counterclaims of infringement asserted in connection with any legal proceeding
      arising under Section 9.

    

    9.    INDEMNIFICATION

     

    9.1    Licensee
      will defend, indemnify and hold Licensor, its officers, trustees, employees
      and
      agents harmless from and against any and all claims, actions, suits, loss,
      injury, expenses, damages, liability, cost and expenses (including reasonable
      attorneys’ fees) of any kind or nature arising out of, or resulting from, the
      exercise or practice of the license granted under this Agreement, including
      without limitation, liabilities arising from the production, manufacture, sale,
      use, lease, or advertisement of Licensed Products, Technology and/or Software
      provided that Licensor provides prompt written notice to Licensee of such claim.
      Any settlement will require Licensor’s prior written approval, which approval
      will not be unreasonably withheld. Licensee will carry product liability
      insurance which covers Licensed Product having such coverage limits appropriate
      to the risk involved in marketing the Licensed Products and will list
      Foundation, Hickey and Lundgren as additional named insured. Licensee will
      provide written evidence of such insurance upon request of Licensor and will
      provide Licensor with at least thirty (30) days prior written notice of any
      material change in or cancellation of the insurance coverage. 

    

    9.2    Foundation
      will
      defend, indemnify and hold Licensee, Hickey, Lundgren and their respective
      officers, trustees, employees and agents harmless from and against any and
      all
      claims, actions, suits, loss, injury, expenses, damages, liability, cost and
      expenses (including reasonable attorneys’ fees) of any kind or nature arising
      out of, or resulting from, any production, manufacture, sale, use, lease,
      advertisement, development, testing and/or clinical trial of the Technology
      or
      Software or any product created from the Technology prior to the Effective
      Date,
      including without limitation any product liability claim or other claim of
      any
      kind relating to the use of a device that was manufactured using the Technology
      prior to this Agreement and used prior to the Effective Date of this Agreement.
      Foundation will also indemnify and hold Licensee, Hickey, Lundgren and their
      respective officers, trustees, employees and agents harmless from and against
      any and all claims, actions, suits, loss, injury, expenses, damages, liability,
      cost and expenses (including reasonable attorneys’ fees) of any kind or nature
      arising out of, or resulting from its use of the Technology or Software under
      Section 2.2 Retained Rights. 

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    10.    TERMINATION

    

    10.1    Termination
      for Licensee Breach.
      If
      Licensee should (a) materially violate or fail to perform any covenant,
      condition or undertaking of the Agreement, or (b) have a bankruptcy action
      filed
      against it, or (c) have a receiver appointed for it; then Licensor may give
      written notice of such default to Licensee. If Licensee should fail to cure
      such
      default within ninety (90) days of notice of such default, then this Agreement
      may, at Licensor’s option, be terminated by a second written notice to Licensee.

    

    10.2    Automatic
      Termination.
      If
      Licensee (a) will cease to attempt to carry on its business with respect to
      the
      rights granted in the Agreement for a period of sixty (60) days, (b) has filed
      a
      bankruptcy action seeking liquidation, (c) becomes financially unable to
      continue operations as a going concern, or (d) makes an assignment for the
      benefit of creditors, this Agreement will terminate upon thirty (30) days prior
      written notice to Licensee.

    

    10.3    Termination
      by Country.
      If
      either party materially breaches its obligations under this Agreement, only
      in
      respect of a particular country or particular countries within the Territory,
      then the non-breaching party may terminate the obligations of the parties under
      this Agreement with respect to each such country, in accordance with the notice
      procedure set forth in Section 10.1 above, provided that the non-breaching
      party
      will expressly identify, in the notice of termination, the country or countries
      subject to such termination. Upon
      a
      termination of this Agreement solely with respect to a particular country
      pursuant to this Section 10.3, the Agreement will continue in full force and
      effect, provided that the definition of the term “Territory” will be deemed to
      exclude the country or countries in respect of which the Agreement was
      terminated. Additionally, Licensee will immediately assign or cause to be
      transferred to Licensor, at Licensor’s cost and expense, all regulatory
      approvals and all licenses and all registered user, distributor and other rights
      Licensee may have acquired with respect to the Licensed Products, in such
      country, and Licensee will cease to use and have no further rights thereto
      in
      such country. To the extent assignment or transfer of approvals, licenses,
      registered user, distribution and other rights is not permitted under local
      law
      in such country, Licensee will co-operate in their cancellation or abandonment,
      and in their reissuance to Licensor. 

    

    10.4    Termination
      for Licensor Breach.
      If
      Licensee discovers
      (i) a
      challenge, claim, suit interference to the Patent Rights that raises a
      significant commercial risk unless resolved, or is incapable of being resolved,
      or (ii) the revelation of facts concerning the state of development of the
      device, the clinical or biological results pertaining thereto, the ownership
      of
      the device of other significant facts bearing on the commercial viability of
      the
      device, which are contrary to or in conflict with the statements and/or
      representations of the Licensor or its agents concerning the device, Licensee
      will have the right to terminate this Agreement upon written notice to Licensor.
      At Licensee’s option, such termination can be for the entire Agreement or only
      in respect of certain countries or territories, as set forth in Section 10.3,
      above. Upon such termination, any and all obligations of Licensee in respect
      of
      the Licensed Products and Technology will cease, including but not limited
      to
      Licensee’s obligations to pay Annual Minimum Royalties, and any and all
      Technology rights granted to Licensee by Licensor will also cease. 

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    10.5    New
      Intellectual Property.
      Any new
      intellectual property related to the Technology (including Licensee Improvements
      and Derivatives) developed by or owned by Licensee will be assigned by Licensee
      to Licensor if the entire Agreement (i.e. does not include Section 10.3
      Termination By Country) is terminated for any reason prior to its scheduled
      expiration; provided however, that if Licensee challenges a termination by
      Licensor before a court or arbitrator of competent jurisdiction, the assignment
      will only be made if such court or arbitrator determines that Licensee is in
      breach of this Agreement. Any manufacturing, engineering or technical consulting
      contracts entered into by Licensee or its Affiliates related to the Technology
      and the development of Licensed Products will include terms requiring that
      the
      contracted party must assign all intellectual property rights to Licensee such
      that Licensee may fulfill its obligations under this Section.

    

    10.6    Technology
      Related Property.
      Documentation, technical information and property of any kind relating to the
      Technology and developed by or for Licensee during the Term (collectively,
      “Technology Related Property”) will be provided to and become the property of
      Licensor if the Agreement is terminated for any reason prior to its scheduled
      expiration; provided however, that if Licensee challenges a termination by
      Licensor before a court or arbitrator of competent jurisdiction, the assignment
      will be made only if such court or arbitrator determines that Licensee is in
      breach of this Agreement. Technology Related Property includes, but is not
      limited to, product designs and specifications, software, test data, laboratory
      and clinical trial data, market research results, and dies for making Licensed
      Products.

    

    10.7    Accrued
      Obligations.
      Termination of this Agreement will not relieve either party of any obligation
      or
      liability accrued hereunder prior to such termination, or rescind or give rise
      to any right to rescind any payments made or other consideration given to
      Licensor hereunder prior to the time such termination becomes effective. Such
      termination will not affect in any manner any rights of Licensor arising under
      this Agreement prior to the date of such termination. Licensee will pay all
      attorneys’ fees and costs incurred by Licensor in enforcing any obligation of
      Licensee or accrued right of Licensor.

    

    10.8    Disposition
      of Licensed Products.
      Upon
      expiration or termination of this Agreement by either party, Licensee will
      provide Licensor with a written inventory of all Licensed Products in process
      of
      manufacture, in use or in stock. Licensee may dispose of any such Licensed
      Products within the one hundred and fifty (150) day period following such
      expiration or termination, provided, however, that Licensee will pay royalties
      and render reports to Licensor thereon in the manner specified
      herein.

    

    10.9    Survival.
      The
      provisions Section 1 (Definitions), Section 7 (Books, Records and Reports),
      Section 9 (Indemnification), Section 10.3 (New Intellectual Property), Section
      10.4 (Technology Related Property), Section 10.6 (Disposition of Licensed
      Products), Section 10.7 (Survival), Section 11 (Warranty and Liability), Section
      14 (Non-Use of Names), Section 16 (Confidentiality) and Section 17
      (Miscellaneous) will survive termination of this Agreement. 

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    11.    WARRANTY
      AND LIABILITY

     

    11.1    Authority.
      As of
      the Effective Date, each party represents and warrants to the other that (a)
      it
      has the corporate power and authority to enter into this Agreement and perform
      its obligations hereunder; (b) it has taken all necessary corporate action
      on
      its part required to authorize the execution and delivery of this Agreement
      and
      the performance of its obligations hereunder; and (c) the Agreement has been
      duly executed and delivered on behalf of such party, and constitutes a legal,
      valid and binding obligation of such party and is enforceable against it in
      accordance with its terms.

    

    11.2    Intellectual
      Property.
      As of
      the Effective Date, Licensor represents and warrants to Licensee that to the
      best of its knowledge (a) it owns, free and clear of any liens, all right,
      title
      and interest in the Technology, patents, trade secrets, know-how, copyrights,
      and other intellectual property that are licensed to Licensee under this
      Agreement, (b) it has all rights and licenses necessary to enable it to grant
      the licenses granted hereunder, (c) it is not aware of any pending or threatened
      litigation (and has not received any communication relating thereto) which
      alleges that Licensor’s activities with respect to the Patent Rights, Technology
      or otherwise related to this Agreement have infringed or misappropriated, or
      that by conducting the activities as contemplated herein Licensor would infringe
      or misappropriate, any of the intellectual property rights of any other third
      party, (d) none of the licensed Patents have been subject to a judicial or
      administrative judgment, order or decree holding any of the licensed Patents
      to
      be invalid or unenforceable, (e) all maintenance fees and/or annuity payments
      required to prevent abandonment of any of the licensed Patents have been paid
      as
      of the date of this Agreement, (f) it has no knowledge of any charges that
      the
      licensed Patents infringe on any rights of any third parties, and (g) it has
      no
      knowledge of any infringement of any of the licensed Patents. 

    

    11.3    No
      Consents or Approvals.
      Except
      as otherwise described in this Agreement, each party represents and warrants
      to
      the other that all necessary consents, approvals and authorizations of all
      governmental authorities and other persons or entities required to be obtained
      by such party in connection with entry into this Agreement have been
      obtained.

    

    11.4    Clinical
      Trials.
      Licensor
      represents and warrants, to the best of its knowledge and understanding, that
      Exhibit C, attached hereto, is a true and accurate list of all of the clinical
      trials that were conducted worldwide by Licensor, its agents or subcontractors
      or third parties in respect of the Technology. 

    

    11.5    No
      Conflict.
      Each
      party represents and warrants to the other that the execution and delivery
      of
      this Agreement by such party and the performance of such party's obligations
      hereunder (a) do not conflict with or violate any requirement of applicable
      law
      or regulation or any provision of articles of incorporation or bylaws of such
      party in any material way, and (b) do not conflict with, violate, breach,
      constitute a default or require any consent under, any contractual obligation
      or
      court or administrative order by which such party is bound.

    

    11.6    EXCEPT
      AS
      OTHERWISE EXPRESSLY SET FORTH HEREIN, LICENSOR MAKES NO ADDITIONAL
      REPRESENTATIONS AND EXTENDS NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR
      IMPLIED, INCLUDING, BUT NOT LIMITED TO, WARRANTY OF MERCHANTABILITY, FITNESS
      FOR
      A PARTICULAR PURPOSE, AND VALIDITY OF PATENT RIGHTS CLAIMS, ISSUED OR PENDING.
      

    

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    11.7    Other
      than the provisions of Sections 11.1, 11.2, 11.3, 11.4 and 11.5 above, Licensor
      makes no further warranty or representation that anything made, used, sold
      or
      commercially transferred under the terms of this Agreement will be free from
      infringement of any third party patents, copyright or other intellectual
      property claims.

    

    11.8    EXCEPT
      WITH RESPECT TO THE INDEMNITY OBLIGATIONS SET FORTH IN SECTION 9.2, IN NO EVENT
      WILL LICENSOR BE LIABLE FOR ANY INCIDENTAL, SPECIAL PUNITIVE OR CONSEQUENTIAL
      DAMAGES RESULTING FROM THE EXERCISE OF THIS LICENSE OR THE USE OF THE
      TECHNOLOGY, SOFTWARE, LICENSED PRODUCT OR LICENSED METHOD, INCLUDING FOR LOST
      PROFITS, OR FOR LOST DATA OR DOWNTIME, WHETHER OR NOT LICENSOR HAS BEEN ADVISED
      OF THE POSSIBILITY OF SUCH DAMAGES.

    

    11.9    THIS
      AGREEMENT DOES NOT CONFER BY IMPLICATION, ESTOPPEL, OR OTHERWISE ANY LICENSE
      OR
      RIGHTS TO ANY OTHER LICENSOR PROPERTY OTHER THAN THOSE RIGHTS EXPRESSLY STATED
      HEREIN.

    

    11.10    Each
      party to this Agreement, by execution hereof, acknowledges, covenants and agrees
      that it has not been induced in anyway by one or more of the other parties,
      or
      any of their employees, to enter into this Agreement, and further warrants
      and
      represents that (i) it has conducted sufficient due diligence with respect
      to
      all items and issues pertaining to this Article 11 and all other matters
      pertaining to this Agreement; and (ii) has adequate knowledge and expertise,
      or
      has utilized knowledgeable and expert consultants, to adequately conduct due
      diligence, and agrees to accept all risks inherent herein.

    

    12.    ASSIGNMENT

     

    This
      Agreement will not be assignable by a party hereto without the express written
      consent of the other party, except that either party may assign or otherwise
      transfer this Agreement and the rights and obligations hereunder, without the
      other party’s consent, to a successor to all or substantially all of its
      business or assets to which this Agreement pertains, whether by merger, sale,
      operation or law or otherwise. This Agreement will be binding upon and inure
      to
      the benefit of the permitted successors and assigns of the parties. The
      foregoing will not be construed to preclude either party from retaining
      subcontractors or distributors in connection with each party’s performance under
      this Agreement, without notice or consent of the other party, provided, however,
      that each party will be responsible for the performance of its subcontractors
      to
      the same extent as if such performance had been made by such party.

     

    13.    OBLIGATIONS
      TO FEDERAL GOVERNMENT AND OTHER SPONSORS

     

    The
      Agreement will be subject to the rights of the United States Government, if
      any,
      resulting from any funding of the Technology by the United States Government.
      This Agreement will also be subject to the rights of any other entities that
      may
      have contributed funding to development of the Technology, if any. Licensee
      acknowledges that such rights, if applicable to Technology, may reserve to
      the
      United States Government, a royalty-free, non-exclusive, non-transferable
      license to practice or have practiced on it’s behalf any government-funded
      invention claimed within any associated patents or patent applications as well
      as other rights. 

    

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    14.    NON-USE
      OF NAMES

    

    Licensee
      agrees that it will not use any Licensor name or State University of New York,
      or University at Buffalo, adaptation thereof (including logos and symbols
      associated with Foundation and “State University of New York, and “University at
      Buffalo”) (collectively “SUNY”), or the names of the scientists, researchers or
      others employed at or with SUNY in any advertising, promotional or sales
      literature without first obtaining Licensor’s prior written consent, or in the
      case of the names of such researchers, scientists or employees the prior written
      consent of the individuals, except that Licensee may state that it is a licensee
      of the Licensor. 

    

    15.    COMPLIANCE
      WITH LAWS

    

    15.1    General
      Compliance.
      Licensee
      will ensure compliance with all applicable county, state, federal or foreign
      laws, rules, and regulations governing the production, use, marketing, sale,
      and
      distribution of Licensed Products. 

    

    15.2    Registration
      of this Agreement.
      When
      required by local or national law, Licensee will register this Agreement, pay
      all costs and legal fees connected therewith, and otherwise insure that the
      local/national laws affecting this Agreement are fully satisfied.

    

    15.3    Export
      Control Laws.
      The
      Export Administration Regulations of the U.S. Department of Commerce (15 CFR
      Parts 770 and 785) prohibit, except under a special validated license, the
      exportation from the United States of technical data relating to certain
      commodities (listed in the Regulations), unless the exporter has received
      certain written assurance from the foreign importer. In order to facilitate
      the
      exchange of technical information under this Agreement, therefore, Licensee
      gives its assurance to Licensor that Licensee will not knowingly, unless prior
      authorization is obtained from the U.S. Office of Export Controls, re-export
      directly or indirectly any technical data received from Licensor under this
      Agreement and will not export directly Licensed Product or technical data to
      any
      restricted country in each case, except in compliance with all U.S. laws and
      regulations. Licensor neither represents that a license is or is not required
      nor that, if required, it will be issued by the U.S. Department of
      Commerce.

     

    16.    CONFIDENTIALITY

    

    16.1    Confidential
      Information.
      As used
      in this Agreement, “Confidential Information” will mean confidential or
      proprietary information exchanged between the parties hereunder and relating
      to
      the Technology Rights or the performance of the obligations set forth herein.
      Confidential Information will include, but not be limited to: (a) written or
      other tangible information marked as confidential or proprietary, (b) orally
      disclosed information that is identified as confidential and summarized in
      a
      notice delivered within thirty (30) days of the disclosure, and (c) information
      that should reasonably be considered confidential under the context in which
      the
      disclosure is made including but not limited to, Improvements information
      disclosed pursuant to Section 2.3 hereunder, reports provided to Licensor
      pursuant to Section 7.2, information relating to payments made by Licensee
      in
      respect of the Licensed Products, nonpublic patenting information and nonpublic
      infringement information.

    

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    16.2    Confidentiality
      Obligations.
      Each
      party agrees to (a) maintain the other party’s Confidential Information in
      confidence, and (b) not disclose the other party’s Confidential Information to
      any other party, without the prior written consent of the disclosing party.
      Each
      party agrees to limit its use of the other party’s Confidential Information to
      the purposes permitted by this Agreement. To the extent that either party is
      required to disclose the Confidential Information of the other party pursuant
      to
      interrogatories, requests for information or documents in legal proceedings,
      subpoena, civil investigative demand or other similar process, such party will
      provide the other party with prompt written notice of any such request. The
      owner of the Confidential Information may then seek a protective order or other
      appropriate remedy and/or waive compliance with Section 16 of this Agreement.
      Nothing in this confidentiality obligation will restrict Licensee’s ability to
      disclose information required by the SEC or other governmental regulatory
      agency.

    

    16.3    Termination
      and Expiration of Confidentiality Obligations.
      The
      obligations of Section 16.2 will terminate with respect to any particular
      portion of the Confidential Information which (a) was in the receiving party’s
      possession prior to disclosure to it by the disclosing party; (b) is or
      hereafter becomes, through no fault of the receiving party, part of the public
      domain by publication or otherwise; (c) is furnished to the receiving party
      by a
      third party after the time of disclosure hereunder as a matter of right and
      without restriction on its disclosure; or (d) is independently developed by
      employees or agents of the receiving party independently of and without
      reference to Confidential Information received from the disclosing party.

    

    17.    MISCELLANEOUS
      

    

    17.1    Arbitration.
      The
      parties agree that in the event of a dispute between them arising out of,
      concerning or in any way relating to this Agreement, including its
      interpretation, but specifically excluding disputes involving ownership of
      Technology, which can not be settled by a good faith effort by the parties
      to
      resolve such issue, will be submitted to binding arbitration under the Federal
      Arbitration Act as amended and in accordance with the Commercial Arbitration
      Rules then prevailing of the American Arbitration Association (“AAA”). The
      arbitration will be held in New York County, New York by a panel of three (3)
      arbitrators appointed pursuant to the AAA rules and judgment upon the award
      rendered by the arbitrators may be entered into any court having jurisdiction
      thereof. The parties agree that any dispute with respect to the ownership of
      the
      Technology will be brought in the Southern District of New York and the parties
      hereby consent and agree to the exclusive jurisdiction of that court.

    

    17.2    Governing
      Law.
      This
      Agreement will be construed, governed, interpreted and applied in accordance
      with the laws of the State of New York, except that questions affecting the
      construction and effect of any patent will be determined by the law of the
      country in which the patent was granted. 

    

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    17.3    Entire
      Agreement.
      This
      Agreement, including any Exhibits or attachments hereto, embodies the entire
      agreement and understanding among the parties to this Agreement and supersedes
      all prior agreements and understandings relating to the subject matter of this
      Agreement. None of the terms or provisions of this Agreement may be altered,
      modified, or amended except by the execution of a written instrument signed
      by
      the parties hereto.

    

    17.4    Severability.
      The
      provisions of this Agreement are severable, and in the event that any provisions
      of this Agreement are determined to be invalid or unenforceable under any
      controlling body of law, such invalidity or unenforceability will not in any
      way
      affect the validity or unenforceability of the remaining provisions
      hereof.

    

    17.5    Notices. All
      notices, requests, consents and other communications to be provided under this
      Agreement must be in writing and will be delivered in person or sent overnight
      delivery by a nationally recognized courier or by certified or registered mail,
      return receipt requested to the addresses provided below, and will be deemed
      to
      have been given when hand delivered, one (1) day after mailing when mailed
      by
      overnight courier or five (5) days after mailing by registered or certified
      mail:

    

    If
      to
      Licensee, to:

    

    Medi-Hut
      Co., Inc.

    215
      Morris Avenue 

    Spring
      Lake, New Jersey 07762

    Attn:
      Thomas S. Gifford, Executive Vice President and Chief Financial Officer

    

    and

    

    Giordano,
      Halleran and Ciesla

    125
      Half
      Mile Road

    P.O.
      Box
      190

    Middletown,
      New Jersey 07748

    Attn:
      Paul T. Colella

    

    If
      to
      Licensor, to:

    

    UB
      Office
      of Science, Technology Transfer and Economic Outreach (STOR)

    Intellectual
      Property Division 

    University
      at Buffalo Technology Incubator Baird Research Park

    1576
      Sweet Home Road

    Amherst,
      NY 14228

    Attn:
      Director of Intellectual Property Division

    

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    and

    Donald
      D.
      Hickey, M.D.

    33
      Burbank Drive

    Snyder,
      New York 14226

    and

     

    Clas
      Lundgren, M.D., Ph.D.

    42
      Burroughs Drive

    Snyder,
      New York 14226

    

    17.6    Waiver.
      No
      waiver by either party hereto of any breach or default of any of the covenants
      or agreements herein set forth will be deemed a waiver as to any subsequent
      and/or similar breach or default.

    

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

    

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

    

    
      	MEDI-HUT CO.,
              INC.	 	 	THE RESEARCH FOUNDATION
              OF
STATE UNIVERSITY OF NEW
              YORK
	 	 	 	 	 	 
	 	 	 	 	 	 
	By:	/s/ David
              R.
              LaVance	 	 	By:	/s/ Robert
              J.
              Genco
	 	
              
David
              R. LaVance	 	 	 	
              
Robert
              J. Genco, D.D.S., Ph.D.
	 	
               

              Title: President and Chief Executive
                Officer

Date: November
                10, 2006

            	 	 	 	
               

              Title: Vice Provost, Director, STOR

Date: November
                10, 2006

            

    

     

    
      	DONALD D. HICKEY,
              M.D.	 	 	CLAS E. LUNDGREN,
              M.D.,
              Ph.D.
	 	 	 	 	 	 
	 	 	 	 	 	 
	By:	/s/ Donald
              D.
              Hickey	 	 	By:	/s/ Clas
              E.
              Lundgren
	 	
              
Donald
              D. Hickey, M.D.	 	 	 	
              
Clas
              E. Lundgren, M.D., Ph.D.
	 	
Date: November
              10, 2006	 	 	 	
Date: November
              10, 2006

    

    

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A - PATENTS

     

    

    
      	
              Patent
                or Application Number

            	
              Location

            	
              Title
                (RF Docket Number)

            	
               

              Filed

            	
              Issued

            	
               

               

              Expires

            	
              Assignee

            	
              Inventor

            	
              Sponsor

            
	
              5,048,532

            	
              U.S.
                Patent

            	
              Method
                and Apparatus for Measuring Blood Pressure (S-409)

            	
              9/18/1989

            	
              9/17/1991

            	
              9/18/2009

            	
              Research
                Foundation

            	
              Hickey

            	
              None

            
	
              5,181,517

            	
              U.S.
                Continuation in Part Patent

            	
              Method
                and Apparatus for the Measurement of Atrial Pressure
                (S-409)

            	
              6/25/1991

            	
              1/26/1993

            	
              1/26/2010

            	
              Research
                Foundation

            	
              Hickey

            	
              None

            
	
              PCT/US

              91/04504

            	
              Corresponds
                to U.S. 5,181,517

            	
              Method
                and Apparatus for the Measurement of Atrial Pressure
                (S-409)

            	
              6/24/1991

            	
              N/A

            	
              N/A

            	
              Hickey
                and Lundgren

            	
              Hickey

            	
              None

            
	
              2,111,094

            	
              Canada

            	
              Method
                and Apparatus for the Measurement of Atrial Pressure
                (S-409)

            	
              6/24/1991

            	
              5/4/1999

            	
              6/24/2011

            	
              Hickey
                and Lundgren

            	
              Hickey

            	
              None

            
	
              615,422

            	
              Netherlands,
                France, United Kingdom, Italy

            	
              Method
                and Apparatus for the Measurement of Atrial Pressure
                (S-409)

            	
              6/24/1991

            	
              1/19/2000

            	
              6/24/2011

            	
              Hickey
                and Lundgren

            	
              Hickey

            	
              None

            
	
              69131931.6

            	
              Germany

            	
              Method
                and Apparatus for the Measurement of Atrial Pressure
                (S-409)

            	
              6/24/1991

            	
              1/19/2000

            	
              6/24/2011

            	
              Hickey
                and Lundgren

            	
              Hickey

            	
              None

            
	
              3289898

            	
              Japan

            	
              Method
                and Apparatus for the Measurement of Atrial Pressure
                (S-409)

            	
              6/24/1991

            	
              1/10/2002

            	
              6/24/2011

            	
              Hickey
                and Lundgren

            	
              Hickey

            	
              None

            
	
              665747

            	
              Australia

            	
              Method
                and Apparatus for the Measurement of Atrial Pressure
                (S-409)

            	
              6/24/1991

            	
              7/18/1996

            	
              6/24/2011

            	
              Hickey
                and Lundgren

            	
              Hickey

            	
              None

            
	
              180459

            	
              Mexico

            	
              Method
                and Apparatus for the Measurement of Atrial Pressure
                (S-409)

            	
              7/30/1991

            	
              1/3/1996

            	
              7/30/2011

            	
              Hickey
                and Lundgren

            	
              Hickey

            	
              None

            
	
              NI-59518

            	
              Taiwan

            	
              Method
                and Apparatus for the Measurement of Atrial Pressure
                (S-409)

            	
              7/5/1991

            	
              2/1/1992

            	
              7/4/2011

            	
              Hickey
                and Lundgren

            	
              Hickey

            	
              None

            
	
              184,960

            	
              India

            	
              Method
                and Apparatus for the Measurement of Atrial Pressure
                (S-409)

            	
              7/8/1991

            	
              7/6/2001

            	
              7/8/2011

            	
              Hickey
                and Lundgren

            	
              Hickey

            	
              None

            

    

    

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

    

    
      	
              Patent
                or Application Number

            	
              Location

            	
              Title
                (RF Docket Number)

            	
               

              Filed

            	
              Issued

            	
               

               

              Expires

            	
              Assignee

            	
              Inventors

            	
              Sponsor

            
	
              5,263,485

            	
              U.S.
                Continuation in Part Patent

            	
              Combination
                Esophageal Catheter for the Measurement of Atrial Pressure
                (S-409)

            	
              11/23/1992

            	
              11/23/1993

            	
              11/23/2010

            	
              Research
                Foundation

            	
              Hickey

            	
              None

            
	
              5,398,692

            	
              U.S.
                Continuation in Part Patent

            	
              Combination
                Esophageal Catheter for the Measurement of Atrial Pressure
                (S-409))

            	
              8/31/1993

            	
              3/21/1995

            	
              9/17/2008

            	
              Research
                Foundation

            	
              Hickey

            	
              None

            
	
              5,551,439

            	
              U.S.
                Continuation in Part Patent

            	
              Method
                of Determining a Mean Pressure from a Source within a Body
                (S-409)

            	
              2/24/1995

            	
              9/3/1996

            	
              9/3/2013

            	
              Research
                Foundation

            	
              Hickey

            	
              None

            
	
              5,570,671

            	
              U.S.
                Continuation in Part Patent

            	
              Method
                for Positioning Esophageal Catheter for Determining Pressures Associated
                with the Left Atrium (S-409) 

            	
              6/7/1995

            	
              11/5/1996

            	
              11/5/2013

            	
              Research
                Foundation

            	
              Hickey

            	
              None

            
	
              5,697,375

            	
              U.S.
                Continuation in Part Patent

            	
              Method
                and Apparatus Utilizing Heart Sounds for Determining Pressure Associated
                with the Left Atrium (S-409)

            	
              1/24/1995

            	
              12/16/1997

            	
              12/16/2014

            	
              Research
                Foundation

            	
              Hickey

            	
              None

            
	
              5,921,935

            	
              U.S.
                Divisional Patent

            	
              Method
                and Apparatus for Utilizing Heart Sounds For Determining Pressures
                Associated with the Left Atrium (S-409)

            	
              9/2/1997

            	
              7/13/1999

            	
              9/18/2009

            	
              Research
                Foundation

            	
              Hickey

            	
              None

            
	
              PCT/US

              96/17617

            	
              Corresponds
                to U.S. ‘671, ‘375, ‘935

            	
              Method
                and Apparatus for Determining Pressures Associated with the Left
                Atrium
                (S-409)

            	
              11/4/1996

            	
              N/A

            	
              N/A

            	
              Hickey
                and Lundgren

            	
              Hickey

            	
              None

            
	
              2,270,978

            	
              Canada

            	
              Apparatus
                for Determining Pressures Associated with the Left Atrium
                (S-409)

            	
              11/4/1996

            	
              N/A

            	
              11/14/2016

              (if
                granted)

            	
              Hickey
                and Lundgren

            	
              Hickey

            	
              None

            

    

     

    
      
        
        

      

      
        A-2

        
          

        

      

      
        
        

      

    

     

    
      	
              Patent
                or Application Number

            	
              Location

            	
              Title
                (RF Docket Number)

            	
               

              Filed

            	
              Issued

            	
               

               

              Expires

            	
              Assignee

            	
              Inventors

            	
              Sponsor

            
	
              69635830

            	
              Germany

            	
              Apparatus
                for Determining Pressures Associated with the Left Atrium
                (S-409)

            	
              11/4/1996

            	
              2/15/2006

            	
              11/4/2016

            	
              Hickey
                and Lundgren

            	
              Hickey

            	
              None

            
	
              957,755

            	
              France

            	
              Apparatus
                for Determining Pressures Associated with the Left Atrium
                (S-409)

            	
              11/4/1996

            	
              2/15/2006

            	
              11/4/2016

            	
              Hickey
                and Lundgren

            	
              Hickey

            	
              None

            
	
              957,755

            	
              Italy

            	
              Apparatus
                for Determining Pressures Associated with the Left Atrium
                (S-409)

            	
              11/4/1996

            	
              2/15/2006

            	
              11/4/2016

            	
              Hickey
                and Lundgren

            	
              Hickey

            	
              None

            
	
              957,755

            	
              Netherlands

            	
              Apparatus
                for Determining Pressures Associated with the Left Atrium
                (S-409)

            	
              11/4/1996

            	
              2/15/2006

            	
              11/4/2016

            	
              Hickey
                and Lundgren

            	
              Hickey

            	
              None

            
	
              957,755

            	
              United
                Kingdom

            	
              Apparatus
                for Determining Pressures Associated with the Left Atrium
                (S-409)

            	
              11/14/1996

            	
              2/15/2006

            	
              11/4/2016

            	
              Hickey
                and Lundgren

            	
              Hickey

            	
              None

            
	
              H10-521,324

            	
              Japan

            	
              Apparatus
                for Determining Pressures Associated with the Left Atrium
                (S-409)

            	
              11/4/1996

            	
              6/5/2006

            	
              11/4/2016

            	
              Hickey
                and Lundgren

            	
              Hickey

            	
              None

            
	
              2005-375167
                

            	
              Japan
                

              (Divisional
                of H10-521,324)

            	
              Apparatus
                for Determining Pressures Associated with the Left Atrium
                (S-409)

            	
              12/27/2005

            	
              N/A

            	
              11/4/2016

            	
              Research
                Foundation

            	
              Hickey

            	
              None

            
	
              6,120,442

            	
              U.S.
                Patent

            	
              Method
                and Apparatus for Noninvasive Determination of Cardiac Performance
                Parameters (R-5421)

            	
              6/12/1998

            	
              9/19/2000

            	
              6/12/2018

            	
              Research
                Foundation

            	
              Hickey

            	
              None

            
	
              6,238,349

            	
              U.S.
                Divisional Patent

            	
              Method
                and Apparatus for Noninvasive Determination of Cardiac Performance
                Parameters (R-5421)

            	
              7/25/2000

            	
              5/29/2001

            	
              6/12/2018

            	
              Research
                Foundation

            	
              Hickey

            	
              None

            

    

     

    
      
        
        

      

      
        A-3

        
          

        

      

      
        
        

      

    

     

    
      	
              Patent
                or Application Number

            	
              Location

            	
              Title
                (RF Docket Number)

            	
               

              Filed

            	
              Issued

            	
               

               

              Expires

            	
              Assignee

            	
              Inventors

            	
              Sponsor

            
	
              PCT/US

              98/12505

            	
              Corresponds
                to U.S. ‘442 and ‘349

            	
              Method
                and Apparatus for Noninvasive Determination of Cardiac Performance
                Parameters (R-5421)

            	
              6/12/1998

            	
              N/A

            	
              N/A

            	
              Hickey
                and Lundgren

            	
              Hickey

            	
              None

            
	
              2,294,998

            	
              Canada

            	
              Non-Invasive
                Monitoring of Cardiac Performance (‘442 and ‘349 Patents)

            	
              6/12/1998

            	
              Pending

            	
              Will
                expire 6/12/18, if granted.

            	
              Hickey
                and Lundgren

            	
              Hickey

            	
              None

            
	
              98932763.0

            	
              Europe
                designating Germany, United Kingdom, France, Italy, Spain, Switzerland,
                Liechtenstein

            	
              Non-Invasive
                Monitoring of Cardiac Performance (‘442 and ‘349 Patents)

            	
              6/12/1998

            	
              Pending

            	
              Will
                expire 6/12/18, if granted.

            	
              Hickey
                and Lundgren

            	
              Hickey

            	
              None

            
	
              742481

            	
              Australia

            	
              Non-Invasive
                Monitoring of Cardiac Performance (‘442 and ‘349 Patents)

            	
              6/12/1998

            	
              4/18/2002

            	
              6/12/2018

            	
              Hickey
                and Lundgren

            	
              Hickey

            	
              None

            
	
              6,432,059

            	
              U.S.
                Continuation in Part Patent

            	
              Method
                and Apparatus for More Precisely Determined Mean Left Atrial Pressure
                (R-5421)

            	
              5/15/2001

            	
              8/13/2002

            	
              6/12/2018

            	
              Research
                Foundation

            	
              Hickey

            	
              None

            
	
              60/691,561

            	
              U.S.
                Provisional Application

            	
              Esophageal
                Catheter for Monitoring Cardiac Performance (R-6013)

            	
              6/17/2005

            	
              N/A

            	
              N/A

            	
              Research
                Foundation

            	
              Hickey

            	
              None

            
	
              11/471,145

            	
              U.S.
                Non-Provisional Application

            	
              Method
                of Determining Cardiac Indicators (R-6013)

            	
              6/19/2006

            	
              N/A

            	
              N/A

            	
              Research
                Foundation

            	
              Hickey

            	
              None

            
	
              TBD

            	
              U.S.
                Provisional Application

            	
              Method
                for Positioning Esophogeal Catheter (Docket TBD)

            	
              TBD

            	
              N/A

            	
              Research
                Foundation

            	
              TBD

            	
              NYS
                CAT

            	
              TBD

            

    

    

    
      
        
        

      

      
        A-4

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B - TANGIBLE PROPERTY

     

    
      	1.  	
              One
                prototype two-balloon esophogeal
                catheter.

            

    

     

    
      	2.  	
              One
                prototype system control box.

            

    

     

    
      	3.  	
              One
                copy of Source Code.

            

    

     

    
      	4.  	
              One
                laptop with operational Source Code, which will be returned to Licensor
                within ninety (90) days of the transfer, unless otherwise mutually
                agreed
                to by the parties.

            

    

     

    
      	5.  	
              One
                Dynamap Blood Pressure Monitor, which will be returned to Licensor
                within
                ninety (90) days of the transfer, unless otherwise mutually agreed
                to by
                the parties.

            

    

     

    
      	6.  	
              One
                ECG device compatible with the system, which will be returned to
                Licensor
                within ninety (90) days of the transfer, unless otherwise mutually
                agreed
                to by the parties.

            

    

     

    
      
        
        

      

      
        B-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      C - CLINICAL TRIALS WORLDWIDE TO DATE

     

    
      	1.  	
              Lab
                subjects. Healthy volunteers used for testing and development of
                device at
                University at Buffalo physiology lab. 21 individuals. Testing from
                1986 to
                2001. No sponsor.

            

    

    

    
      	2.  	
              Intensive
                care unit patients in Millard Fillmore Hospital, Buffalo, N.Y. 25
                individuals from July 1991 to April 1992. No
                sponsor.

            

    

    

    
      	3.  	
              Open
                heart surgery patients in Millard Fillmore Hospital, Buffalo, N.Y.
                16
                individuals from November 1993 to July 1994. Sponsored by Cobe
                Cardiovascular.

            

    

    

    
      	4.  	
              Cobe
                Cardiovascular conducted catheter experiments in patients in Florida
                sometime around 1994 under a license agreement then in effect. Neither
                Dr.
                Hickey or, to the best of Licensor’s knowledge, any other employee or
                agent of the Licensor was privy to the protocol, had anything to
                do with
                the conduct of the experiments or has knowledge of the patient enrollment,
                results or outcomes of the study. The study may have been done in
                open
                heart surgery.

            

    

    

    
      
        
        

      

      
        C-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      D 

    

    RESTRICTIVE
      COVENANT AND CONFIDENTIALITY AGREEMENT

     

    THIS
      RESTRICTIVE COVENANT AND CONFIDENTIALITY AGREEMENT (hereinafter referred to
      as
      the “Agreement”) is made and entered into this ____ day of November 2006, by and
      between Donald D. Hickey, M.D. (“Hickey”) and Medi-Hut Co., Inc., a corporation
      duly organized under the laws of the State of Nevada, and having its principal
      place of business at 215 Morris Avenue, Spring Lake, NJ 07762 (“Licensee”). This
      Agreement is incorporated by reference and is part of the Technology License
      Agreement, dated November ___, 2006 by and among Licensee, Hickey and The
      Research Foundation of State University of New York, for and on behalf of
      University at Buffalo (the “Foundation”). Defined terms have the same meaning as
      in the Technology License Agreement unless they are otherwise defined herein.
      

     

    AGREEMENT

     

    WHEREAS,
      pursuant to the terms and conditions of the Technology License Agreement,
      Licensee wishes to obtain the exclusive license to the Technology, Licensed
      Product and related Intellectual Property (as used herein, the terms
“Technology”, “Licensed Product” and “Intellectual Property” will have the
      meaning ascribed to such terms in the Technology License
      Agreement),

     

    WHEREAS,
      Dr. Hickey has developed and has had access to the Technology, Licensed Product
      and Intellectual Property relating to the Technology; 

     

    NOW
      THEREFORE, in consideration of the foregoing, of the mutual promises herein
      contained, and of other good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, the parties hereto, intending
      legally to be bound, hereby agree as follows:

     

    1.    Non-compete.
      Except
      as provided for below, Dr. Hickey agrees that during the term of the Technology
      License Agreement, he will not knowingly own, operate, franchise or become
      employed by, or be under contract with, or otherwise assist any person or entity
      which markets or distributes any product that competes or has the potential
      to
      compete with the Licensed Products in the Territory (as defined in the
      Technology License Agreement). Dr. Hickey agrees that he will not have the
      right
      to use, create, duplicate, or otherwise exploit the Technology, Software or
      Derivatives to engage in, or assist any person or entity to engage in, the
      commercial exploitation of the Technology, Software, Derivatives or Licensed
      Products. 

     

    Nothing
      herein will be construed as prohibiting Dr. Hickey from continuing to perform
      (a) services incident to his position at the University of Buffalo, including,
      for example and without limitation, educational research, internal research
      and
      development for educational purposes of the Technology, Software and
      Derivatives. Dr. Hickey will have the right to create derivatives of the
      Software for internal and educational purposes only. Nothing set forth in this
      Section 1 will be construed to grant Dr. Hickey a license or otherwise permit
      Dr. Hickey to copy, create derivative works from, publish, reproduce or
      otherwise use or reuse any of the items subject to the Technology License
      Agreement for any purpose whatsoever, without
      complying with the ‘First Look’ provisions of the Technology License Agreement.
      Dr. Hickey hereby waives and agrees not to assert any moral rights against
      Licensee in respect of such items. 

     

    
      
        
        

      

      
        D-1

        
          

        

      

      
        
        

      

    

     

    2.    Non-Disclosure
      of Confidential Information.
      Dr.
      Hickey agrees that he will not, in any fashion, form or manner, either directly
      or indirectly, use, sell, divulge, communicate, furnish or disclose to any
      person, firm, partnership, company, corporation, or other entity, any Know
      How,
      Intellectual Property and/or trade secrets, including without limitation any
      and
      all confidential information relating to the Technology. Nothing herein will
      be
      construed as prohibiting Dr. Hickey from disclosing the Know How, Intellectual
      Property and/or trade secrets and/or other confidential information relating
      to
      the Technology or software as it existed as of the date of this Agreement to
      his
      research and/or teaching collaborators and graduate assistants who have been
      made aware of and have agreed to undertake this confidentiality obligation.
      Moreover, this obligation will not extend to information which, through no
      fault
      of Dr. Hickey, becomes part of the public domain by publication or otherwise;
      is
      received from third parties on a non-confidential basis, or is independently
      developed by Dr. Hickey, his collaborators and/or graduate assistants subsequent
      to the date of this Agreement, provided that the ‘First Look’ provisions of the
      Technology License Agreement have been satisfied.

     

    3.    Remedies
      

     

    (a)
      Dr.
      Hickey agrees that the remedy at law for any breach or threatened breach of
      the
      requirements of paragraph 1 or 2 of this Agreement may be inadequate and that
      any breach or attempted breach may cause immediate and permanent damage to
      the
      Licensee in an amount which would be difficult to ascertain and, therefore,
      Dr.
      Hickey agrees and consents that in the event of any breach or threatened breach
      of said paragraphs, in addition to any and all other legal and equitable
      remedies available to the Licensee for such breach or threatened breach,
      including a recovery of damages, the Licensee will be entitled to seek
      preliminary or permanent injunctive relief without the necessity of proving
      actual damages by reason of such breach, and, to the extent permissible under
      the applicable statutes and rules of procedure, Dr. Hickey also agrees that
      a
      temporary restraining order may be sought upon commencement of such an
      action.

     

    (b)
      In
      the event that any action, suit or proceeding at law or in equity is brought
      pursuant to this Agreement to construe, interpret, or enforce any provision
      of
      this Agreement or to seek money damages for the threatened breach or breach
      thereof, the prevailing party will be entitled, upon demand, to reimbursement
      from the other party of any and all expenses incurred in connection therewith,
      including without limitation, attorney’s fees and disbursements actually
      incurred.

     

    4.    Reasonableness
      of Restrictions.
      Dr.
      Hickey has carefully read and considered the provisions hereof and, having
      done
      so, agrees that the restrictions set forth herein are fair and reasonable and
      are reasonably required for the protection of the interests of the Licensee.
      

     

    5.    Severability.
      If any
      one or more of the provisions of this Agreement will be determined to be
      invalid, illegal, or unenforceable in any respect for any reason, the validity,
      legality, and enforceability of any such provision in every other respect and
      the remaining provisions of this Agreement will not in any way be impaired.
      Dr.
      Hickey acknowledges and agrees that if any of the restrictive covenants in
      this
      Agreement are found by any court having jurisdiction to be too broad or too
      restrictive, then the covenant will nevertheless remain effective, but will
      be
      considered amended to a point considered by said court as reasonable and, as
      so
      amended, will be fully enforceable. 

     

    
      
        
        

      

      
        D-2

        
          

        

      

      
        
        

      

    

     

    6.    Assignment.
      In the
      event that the Licensee will at any time be merged or consolidated with any
      other person, corporation or entity or will sell or otherwise transfer a
      substantial portion of its assets to any person, corporation or entity and
      assign this Agreement in connection with such sale, the provisions of this
      Agreement will be binding upon and inure to the benefit of the Licensee or
      other
      entity surviving or resulting from such merger or consolidation or to which
      such
      assets will be sold or transferred, as the case may be. This Agreement will
      be
      binding upon the parties and their heirs, administrators, successors and
      permitted assigns.

     

    7.    Governing
      Law.
      It is
      understood and agreed that the construction and interpretation of this Agreement
      will, at all times and in all respects, be governed by the internal laws of
      the
      State of New York, without giving effect to the conflict of laws provisions
      thereof. 

     

    8.    Waiver.
      No
      delay or failure on the part of the Licensee in exercising any right, power,
      or
      privilege under this Agreement will impair any such right, power, or privilege
      or be construed as a waiver of any default or any acquiescence therein. No
      single or partial exercise of any such right, power, or privilege will preclude
      the further exercise of such right, power, or privilege, or the exercise of
      any
      other right, power, or privilege. No waiver will be valid against the Licensee
      unless made in writing and signed by the Licensee and then only to the extent
      expressly specified therein.

     

    9.    Headings.
      The
      headings of the paragraphs contained in this Agreement are for reference
      purposes only and will not in any way affect the meaning or interpretation
      of
      any provision of this Agreement. 

     

    10.    Pronouns.
      All
      pronouns used herein will be deemed to refer to the masculine, feminine, or
      neuter gender as the context requires.

     

    11.    Entire
      Agreement.
      This
      Agreement and the agreements referenced herein constitute the entire among
      the
      parties with respect to the subject matter hereof and supersede and replace
      all
      prior understandings and agreements among the parties with respect to the
      subject matter hereof. 

     

    IN
      WITNESS WHEREOF, the Licensee and Dr. Hickey have duly executed this Restrictive
      Covenant and Confidentiality Agreement as of the day and year first written
      above.

     

    
      	Medi-Hut Co., Inc.	 	 	 
	 	 	 	 
	 	 	 	 
	
              
By:
              David R. LaVance	 	 	
              
Donald
              D. Hickey, M.D., individual
	Title: President and Chief Executive
              Officer	 	 	 

    
      
        
        

      

      
        D-3

        
          

        

      

      
        
        

      

    

    EXHIBIT
      E

     

    RESTRICTIVE
      COVENANT AND CONFIDENTIALITY AGREEMENT

     

    THIS
      RESTRICTIVE COVENANT AND CONFIDENTIALITY AGREEMENT (hereinafter referred to
      as
      the “Agreement”) is made and entered into this ____ day of November 2006, by and
      between Clas E. Lundgren, M.D., Ph.D. (“Lundgren”) and Medi-Hut Co., Inc., a
      corporation duly organized under the laws of the State of Nevada, and having
      its
      principal place of business at 215 Morris Avenue, Spring Lake, NJ 07762
      (“Licensee”). This Agreement is incorporated by reference and is part of the
      Technology License Agreement, dated November __, 2006 by and among Licensee,
      Lundgren and The Research Foundation of State University of New York, for and
      on
      behalf of University at Buffalo (the “Foundation”). Defined terms have the same
      meaning as in the Technology License Agreement unless they are otherwise defined
      herein. 

     

    AGREEMENT

     

    WHEREAS,
      pursuant to the terms and conditions of the Technology License Agreement,
      Licensee wishes to obtain the exclusive license to the Technology, Licensed
      Product and related Intellectual Property (as used herein, the terms
“Technology”, “Licensed Product” and “Intellectual Property” will have the
      meaning ascribed to such terms in the Technology License
      Agreement),

     

    WHEREAS,
      Dr. Lundgren has had access to the Technology, Licensed Product and Intellectual
      Property relating to the Technology; 

     

    NOW
      THEREFORE, in consideration of the foregoing, of the mutual promises herein
      contained, and of other good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, the parties hereto, intending
      legally to be bound, hereby agree as follows:

     

    1.    Non-compete.
      Except
      as provided for below, Dr. Lundgren agrees that during the term of the
      Technology License Agreement, he will not knowingly own, operate, franchise
      or
      become employed by, or be under contract with, or otherwise assist any person
      or
      entity which markets or distributes any product that competes or has the
      potential to compete with the Licensed Products in the Territory (as defined
      in
      the Technology License Agreement). Dr. Lundgren agrees that he will not have
      the
      right to use, create, duplicate, or otherwise exploit the Technology, Software
      or Derivatives to engage in, or assist any person or entity to engage in, the
      commercial exploitation of the Technology, Software, Derivatives or Licensed
      Products. 

     

    Nothing
      herein will be construed as prohibiting Dr. Lundgren from continuing to perform
      (a) services incident to his position at the University of Buffalo, including,
      for example and without limitation, educational research, internal research
      and
      development for educational purposes of the Technology, Software and
      Derivatives. Dr. Lundgren will have the right to create derivatives of the
      Software for internal and educational purposes only. Nothing set forth in this
      Section 1 will be construed to grant Dr. Lundgren a license or otherwise permit
      Dr. Lundgren to copy, create derivative works from, publish, reproduce or
      otherwise use or reuse any of the items subject to the Technology License
      Agreement for any purpose whatsoever, without complying with the ‘First Look’
provisions of the Technology License Agreement. Dr. Lundgren hereby waives
      and
      agrees not to assert any moral rights against Licensee in respect of such items.
      

     

    
      
        
        

      

      
        E-1

        
          

        

      

      
        
        

      

    

     

    2.    Non-Disclosure
      of Confidential Information.
      Dr.
      Lundgren agrees that he will not, in any fashion, form or manner, either
      directly or indirectly, use, sell, divulge, communicate, furnish or disclose
      to
      any person, firm, partnership, company, corporation, or other entity, any Know
      How, Intellectual Property and/or trade secrets, including without limitation
      any and all confidential information relating to the Technology. Nothing herein
      will be construed as prohibiting Dr. Lundgren from disclosing the Know How,
      Intellectual Property and/or trade secrets and/or other confidential information
      relating to the Technology or software as it existed as of the date of this
      Agreement to his research and/or teaching collaborators and graduate assistants
      who have been made aware of and have agreed to undertake this confidentiality
      obligation. Moreover, this obligation will not extend to information which,
      through no fault of Dr. Lundgren, becomes part of the public domain by
      publication or otherwise; is received from third parties on a non-confidential
      basis, or is independently developed by Dr. Lundgren, his collaborators and/or
      graduate assistants subsequent to the date of this Agreement, provided that
      the
‘First Look’ provisions of the Technology License Agreement have been
      satisfied.

     

    3.    Remedies
      

     

    (a)
      Dr.
      Lundgren agrees that the remedy at law for any breach or threatened breach
      of
      the requirements of paragraph 1 or 2 of this Agreement may be inadequate and
      that any breach or attempted breach may cause immediate and permanent damage
      to
      the Licensee in an amount which would be difficult to ascertain and, therefore,
      Dr. Lundgren agrees and consents that in the event of any breach or threatened
      breach of said paragraphs, in addition to any and all other legal and equitable
      remedies available to the Licensee for such breach or threatened breach,
      including a recovery of damages, the Licensee will be entitled to seek
      preliminary or permanent injunctive relief without the necessity of proving
      actual damages by reason of such breach, and, to the extent permissible under
      the applicable statutes and rules of procedure, Dr. Lundgren also agrees that
      a
      temporary restraining order may be sought upon commencement of such an
      action.

     

    (b)
      In
      the event that any action, suit or proceeding at law or in equity is brought
      pursuant to this Agreement to construe, interpret, or enforce any provision
      of
      this Agreement or to seek money damages for the threatened breach or breach
      thereof, the prevailing party will be entitled, upon demand, to reimbursement
      from the other party of any and all expenses incurred in connection therewith,
      including without limitation, attorney’s fees and disbursements actually
      incurred.

     

    4.    Reasonableness
      of Restrictions.
      Dr.
      Lundgren has carefully read and considered the provisions hereof and, having
      done so, agrees that the restrictions set forth herein are fair and reasonable
      and are reasonably required for the protection of the interests of the Licensee.
      

     

    5.    Severability.
      If any
      one or more of the provisions of this Agreement will be determined to be
      invalid, illegal, or unenforceable in any respect for any reason, the validity,
      legality, and enforceability of any such provision in every other respect and
      the remaining provisions of this Agreement will not in any way be impaired.
      Dr.
      Lundgren acknowledges and agrees that if any of the restrictive covenants in
      this Agreement are found by any court having jurisdiction to be too broad or
      too
      restrictive, then the covenant will nevertheless remain effective, but will
      be
      considered amended to a point considered by said court as reasonable and, as
      so
      amended, will be fully enforceable. 

     

    
      
        
        

      

      
        E-2

        
          

        

      

      
        
        

      

    

     

    6.    Assignment.
      In the
      event that the Licensee will at any time be merged or consolidated with any
      other person, corporation or entity or will sell or otherwise transfer a
      substantial portion of its assets to any person, corporation or entity and
      assign this Agreement in connection with such sale, the provisions of this
      Agreement will be binding upon and inure to the benefit of the Licensee or
      other
      entity surviving or resulting from such merger or consolidation or to which
      such
      assets will be sold or transferred, as the case may be. This Agreement will
      be
      binding upon the parties and their heirs, administrators, successors and
      permitted assigns.

     

    7.    Governing
      Law.
      It is
      understood and agreed that the construction and interpretation of this Agreement
      will, at all times and in all respects, be governed by the internal laws of
      the
      State of New York, without giving effect to the conflict of laws provisions
      thereof. 

     

    8.    Waiver.
      No
      delay or failure on the part of the Licensee in exercising any right, power,
      or
      privilege under this Agreement will impair any such right, power, or privilege
      or be construed as a waiver of any default or any acquiescence therein. No
      single or partial exercise of any such right, power, or privilege will preclude
      the further exercise of such right, power, or privilege, or the exercise of
      any
      other right, power, or privilege. No waiver will be valid against the Licensee
      unless made in writing and signed by the Licensee and then only to the extent
      expressly specified therein.

     

    9.    Headings.
      The
      headings of the paragraphs contained in this Agreement are for reference
      purposes only and will not in any way affect the meaning or interpretation
      of
      any provision of this Agreement. 

     

    10.    Pronouns.
      All
      pronouns used herein will be deemed to refer to the masculine, feminine, or
      neuter gender as the context requires.

     

    11.    Entire
      Agreement.
      This
      Agreement and the agreements referenced herein constitute the entire among
      the
      parties with respect to the subject matter hereof and supersede and replace
      all
      prior understandings and agreements among the parties with respect to the
      subject matter hereof. 

     

    IN
      WITNESS WHEREOF, the Licensee and Dr. Lundgren have duly executed this
      Restrictive Covenant and Confidentiality Agreement as of the day and year first
      written above.

    
       

      
        	Medi-Hut Co., Inc.	 	 	 
	 	 	 	 
	 	 	 	 
	
                
By:
                David R. LaVance	 	 	
                
Clas
                E. G. Lundgren, M.D., PhD, individual
	Title: President and Chief Executive
                Officer	 	 	 

      
        
          
          

        

        E-3

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