Document:

activecare10q20090630ex10-7.htm

    
      

      

    

    
      

       

      Patent
License Agreement

      
        
          	
                  Licensor
      name:

                   

                	
                  Futuristic
      Medical Devices, LLC

                
	
                  Licensor
      address:

                	
                  13 Augusta
      Avenue

                  Monsey, New York
      10952

                   

                
	
                  Licensee
      name:

                	
                  Volu-Sol
      Reagents Corporation

                   

                
	
                  Licensee
      address:

                	
                  5095
      West 2100 South

                  West
      Valley City, Utah 84120

                   

                
	
                  Upfront
      Royalty Payment:

                	
                  $300,000.00
      (Three Hundred Thousand Dollars)

                   

                
	
                  Royalty
      Percentage:

                	
                  5%
      (Five Percent)

                

        

      

      

      In
witness whereof, intending to be legally bound, the parties have signed below to
enter the attached Patent License Agreement and Exhibits (this “Agreement”) as of the
Effective Date with the terms and conditions that follow.  Capitalized
terms not otherwise defined are set forth in Section 9 of this
Agreement.

      

      
        
          	
                  LICENSOR:

                   

                  FUTURISTIC
      MEDICAL DEVICES LLC

                   

                   

                  By:    /s/ Jacob
      Pilchick                                                            
      

                   

                  Name:  Jacob
      Pilchick                                                                

                   

                  Title:  Manager                                                             
                   

                   

                	
                  LICENSEE:

                   

                  VOLU-SOL
      REAGENTS CORPORATION

                   

                   

                  By:  /s/ James
      Dalton                                                                 
      

                   

                  Name: James
      Dalton                                                                    

                   

                  Title: Chairman &
      CEO                                                                

                   

                

        

      

      

       

      Effective
Date:  May 1, 2009

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      PATENT
LICENSE AGREEMENT

       

      The
parties to this Patent License Agreement listed on the previous page hereby
agree as follows:

       

      1.          
  Grant of Exclusive License

       

      1.1           Exclusive
Patent License

       

      Licensor
hereby grants to Licensee the exclusive, irrevocable, worldwide, transferable,
sublicensable license of all rights of any kind conferred by the Patents,
including, without limitation, the rights of any kind to, or conferred by, the
Patents to (a) use or otherwise practice any art, methods, processes, and
procedures covered by the Patents, (b) make, have made, use, offer to sell,
sell, import, and otherwise distribute or dispose of any inventions,
discoveries, products, services, or technologies covered by the Patents,
(c) otherwise exploit any rights granted in the Patents and/or any
invention or discovery described in the Patents, and (d) exclude other
Persons from exercising any of such rights.

       

      1.2           Sublicenses

       

      The
exclusive license rights granted Licensee under the Patents include the right to
grant and authorize, from time to time and in Licensee's sole and absolute
discretion, one or more sublicenses.  No sublicense granted to any
Person pursuant to the terms of this Agreement will be terminable as a result of
the termination of this Agreement.

       

      1.3           Assignment
of Causes of Action and Other Rights

       

      Licensor
hereby assigns, transfers and conveys to Licensee all right, title and interest
in and to:

       

      (a)           Rights
to apply in any or all countries of the world for patents, certificates of
invention, utility models, industrial design protections, design patent
protections, or other governmental grants or issuances of any type related to
any of the Patents and the inventions and discoveries therein;

       

      (b)           All
causes of action and enforcement rights of any kind (whether such claims, causes
of action or enforcement rights are known or unknown; currently pending, filed,
to be filed; or otherwise) under the Patents and/or under or on account of any
of the Patents for past, current and future infringement of the Patents,
including without limitation, all rights to (i) pursue and collect damages,
profits and awards of whatever nature recoverable, (ii) injunctive relief,
(iii) other remedies, and (iv) compromise and/or settle all such
claims, causes of action and enforcement rights for such infringement by
granting an infringing party a sublicense or otherwise; and

       

      (c)           Rights
to collect royalties or other payments under or on account of any of the Patents
or any of the foregoing.

      
        
           

        

        
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      1.4           Right
to Purchase

       

      It is
understood and agreed that the Licensee is also hereby granted the right, at its
sole option and at such time as it may determine, to purchase the
Patents.  Upon exercise of this right to purchase, Licensor shall
assign all of its rights and interest in the Patents to Licensee in exchange for
Four Million (4,000,000) shares of the Licensee’s common stock.

       

      2.       
     Payment

       

      2.1           Upfront
Royalty Payment

       

      At the
Closing, Licensee will pay to Licensor an upfront royalty payment (the “Upfront Royalty
Payment”) in the
amount set forth on the cover page of this Agreement.

       

      2.2           Royalties

       

      Licensee
will pay to Licensor a royalty equal to the Royalty Percentage multiplied by
Licensee’s Net Sales Revenues for Licensed Products.  Additionally,
Licensee will pay to Licensor a royalty equal to the Royalty Percentage
multiplied by any revenue received by Licensee for the sublicensing of the
Patents.  (collectively, the “Royalties”). The
royalty will be payable on the due dates for the reports required by
paragraph 2.3 for royalties accrued during the respective Reporting
Period.

       

      2.3           Reports
and Records

       

      As of
each December 15 during the Term of this Agreement, Licensee will provide to
Licensor a report reasonably detailing its royalty producing activities with
respect to the Patents for the preceding twelve (12) month period ending as of
September 30 (each,
a “Reporting Period”) when there have been
Royalties accrued under Section 2.2 with respect to the Patents in such
Reporting Period.

       

      2.4           Books
of Account

       

      Licensee
will keep accurate books of account containing all particulars that may
reasonably be deemed necessary for the purpose of showing the Amounts payable to
Licensor hereunder.  Not more than once during every twenty-four (24)
month period and upon Licensor’s advance request of at least thirty (30) days,
Licensee will make said books and the supporting data available for inspection
by Licensor or its agents during normal business hours for the two (2) most
recent Reporting Periods for the sole purpose of verifying Licensee's
calculations of the Royalties under this Agreement.  Should such
inspection lead to the discovery of a greater than ten percent (10%) discrepancy
in reporting to Licensor's detriment, Licensee agrees to pay the reasonable fees
and expenses of Licensor’s agents who conducted the
inspection.  Licensee will promptly pay to Licensor all amounts
appropriately determined by any audit to be due to Licensor.  Any and
all disputes with respect to the Royalties due under this Agreement or the
calculation of Net Sales Revenue must be (a) raised within ninety (90) days
after completion of the associated audit, and (b) resolved solely and
exclusively pursuant to the provisions of paragraph 10.8.

      
        
           

        

        
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      3.  
          Closing

       

      3.1           Deliverables

       

      Within
thirty (30) days following the later of Effective Date or the date Licensee
receives a Transmitted Copy of this Agreement executed by the Licensor, to the
extent that Licensor has control of such documents, Licensor will deliver to
Licensee copies of the Assignment Agreements, the Prosecution History Files, the
Docket, and copies of all files and original documents owned or controlled by
Licensor, which include publicly available documents (including, without
limitation, Assignment Agreements, copies of Letters Patent, and other documents
necessary to establish that Licensor’s representations and warranties in Section
6 are true and correct) relating to the Patents and/or the Abandoned Assets
(“Initial
Deliverables”).  Licensor
acknowledges and agrees that Licensee may request, and Licensor will promptly
deliver, additional documents based on Licensee’s review of the Initial
Deliverables (such additional documents, related information and the Initial
Deliverables, collectively, the “Deliverables”) and
the Deliverables, and that as a result of Licensee’s review, the listing of
assets in Exhibits A
and B, and
the list of Abandoned Assets on Exhibit C, may be revised
before and after the Closing to conform these lists to the definition of Patents
(and these revisions may require the inclusion of additional provisional patent
applications, patent applications, and patents on Exhibits A and B or
both).  To the extent the listing of assets on Exhibits A and B is reduced, the amount
payable under paragraph 2.1 and the Royalty Percentage may be reduced by the
mutual agreement of the parties.  Licensor shall not be obligated to
provide any attorney client confidential information or attorney work
product.

       

      3.2           Closing

       

      Licensor
and Licensee will use reasonable efforts to complete the review of the
Deliverables and satisfy the conditions to closing described in paragraph 3.3
within thirty (30) calendar days following the later of the Effective Date or
the date the last of the Deliverables was received by
Licensee.  Licensee will thereafter pay Licensor the Upfront Royalty
Payment on the closing (the “Closing”), and
Licensee may then record Memoranda of Exclusive License/Rights.

       

      
        3.3          
Closing
Conditions

      

       

      The
Closing will occur when Licensee determines that all the following conditions
have been satisfied or waived:

       

      
        	
                 
      

              	
                (a)

              	
                Signature by
      Licensor.  Licensor timely executed this Agreement and
      delivered a Transmitted Copy of this Agreement to Licensee’s
      representatives by not later than May 26, 2009 at 5:00 p.m., Mountain
      Daylight Time and promptly delivered one (1) executed original of this
      Agreement to Licensee’s
representatives.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                Transmittal of
      Documents.  Licensor will have delivered to Licensee all
      the Deliverables.

              

      

       

      
        
           

        

        
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      (c)           Compliance With
Agreement.  Licensor performed and complied in all respects
with all of the obligations under this Agreement that are to be performed or
complied with by it on or prior to the Closing.

       

      (d)           Representations and
Warranties True.  Licensee is satisfied that, as of the
Effective Date and as of the Closing, the representations and warranties of
Licensor contained in Section 6 are true and correct.

       

      (e)           Patents Not
Abandoned.  Licensee is satisfied that, as of the Effective
Date and as of the Closing, none of the assets that are included in the Patents
have expired, lapsed, been abandoned, or deemed withdrawn.

       

      (f)           Delivery of Executed
Memorandum.  Licensor will have delivered to Licensee executed
and notarized Memoranda of Exclusive License/Rights.

       

      The
preceding conditions are conditions precedent to the Closing and to Licensee’s
obligation to make the payments contemplated pursuant to this
Agreement.

       

      3.4           Further
Cooperation

       

      At the
reasonable request of Licensee, Licensor will execute and deliver such other
instruments and do and perform such other acts and things as may be reasonably
necessary for effecting completely the consummation of the transactions
contemplated hereby, including, without limitation, execution, acknowledgment
and recordation of other such papers, and using reasonable efforts to obtain the
same from the respective inventors, as necessary for fully perfecting and
conveying unto Licensee the benefit of the transactions contemplated hereby,
including, without limitation, providing and assisting in obtaining execution of
any assignments, confirmations, powers of attorney, inventor declarations, and
other documents that Licensee may request for prosecuting, maintaining, filing,
obtaining issuance of, registering, enforcing, defending, or bringing any
proceeding relating to the Patents.  To the extent any attorney-client
privilege or the attorney work-product doctrine applies to any portion of the
Prosecution History Files, Licensor will ensure that, if any such portion of the
Prosecution History File remains under Licensor’s possession or control after
the Closing, it is not disclosed to any third party unless (a) disclosure is
ordered by a court of competent jurisdiction, after all appropriate appeals to
prevent disclosure have been exhausted, and (b) Licensor gave Licensee prompt
notice upon learning that any third party sought or intended to seek a court
order requiring the disclosure of any such portion of the Prosecution History
File.  In addition, Licensor will continue to prosecute, maintain, and
defend the Patents at its sole expense until the Closing.

       

      4.    
        Filing, Prosecution and
Maintenance of Patent Rights

       

      4.1           Costs

       

      After the
Closing, Licensee will be solely entitled and responsible for the preparation,
filing, prosecution, maintenance and defense of all Patents (except to the
extent of any portion of the Patents abandoned pursuant to the terms of this
Agreement).  Licensee may, but is not obliged to consult with Licensor
regarding execution of its responsibility.

      
        
           

        

        
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      4.2           Copies
of Prosecution Documents

       

      Licensee
will, upon Licensor’s reasonable written request, provide Licensor with a copy
of documents received or filed by Licensee pertaining to the filing,
prosecution, maintenance or defense of Patents, including, without limitation,
each patent application, office action, response to office action, request for
terminal disclaimer, and request for reissue or reexamination of any patent
issuing from such patent application.

       

      4.3           Conduct
of Prosecution

       

      Licensor
will execute and deliver to Licensee one or more memoranda in the form of the
Memoranda of Exclusive License/Rights and will execute at least one such
memorandum prior to the Closing.  The conduct of the preparation, filing,
prosecution, maintenance, and defense of the Patents will be under Licensee’s
exclusive control and discretion.  Licensee will consult with Licensor
on such matters from time to time on Licensor’s reasonable
request.  At the reasonable request of Licensee, Licensor will execute
and deliver to Licensee such other instruments, and do and perform such other
acts and things, as may be reasonably necessary or desirable for confirming in
Licensee exclusive right to prosecute, maintain, defend, file, obtain issuance,
register, enforce, defend, or bring any proceeding relating to the Patents
including, without limitation, execution, acknowledgment and recordation of such
papers necessary to convey to Licensee any right or power of attorney in the
USPTO or other governmental patent office, in respect to prosecution,
maintenance, defense, filing, issuance, or registration of the
Patents.

       

      4.4           Abandonment
of License to Patents

       

      Licensee
will at any time be entitled to abandon its license and other rights to all or
any part of the Patents by providing at least thirty (30) days’ advance written
notice of such intention to Licensor; provided, Licensee will give such notice
not less than sixty (60) days prior to the last allowable date for filing or
taking any other action required with respect to such portion of the
Patents.  From and after providing such notice of abandonment,
Licensee will have no further obligation with respect to such abandoned portion
of the Patents.  Any sublicense granted with respect to any Patents
abandoned hereunder will not be terminated or altered as a result of such
abandonment, provided that such sublicense was granted prior to the
effectiveness of such abandonment.

       

      4.5           Licensor’s
Assistance

       

      Licensor
will provide Licensee with such advice and assistance as Licensee will
reasonably request in connection with the filing, prosecution, maintenance, or
defense of the Patents.  Licensee will not be responsible for any
costs incurred by Licensor without Licensee’s prior written agreement to bear
such costs.

       

      5.        
    Enforcement of Patents

       

      5.1           Enforcement

       

      Licensee will have the exclusive right,
but not the obligation, to institute, prosecute, and control any action or
proceeding with respect to infringement of the Patents, using counsel of its
choice, including any declaratory judgment action arising from such
infringement.  In the event Licensee exercises its right to commence
such action or proceeding, Licensee will use reasonable efforts to advise
Licensor prior to such commencement.  Thereafter, on Licensor's
written request no more frequently than every two (2) months, Licensee will
report to Licensor reasonable, nonprivileged information on the status of the
action or proceeding commenced by Licensee.  Licensor does not have
and/or retain any right to, and will not, institute any case, action or other
enforcement proceeding with respect to infringement of the
Patents.

      
        
           

        

        
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      5.2           Joinder;
Cooperation in Litigation

       

      This
Agreement transfers to Licensee all substantial rights under the Patents and, as
a result, Licensee has the right to bring any future action or proceeding to
enforce claims under the Patents in its own name, without naming Licensor as a
party thereto.  However, if necessary or desirable in Licensee's sole
discretion, Licensee may name Licensor as a party in any action or proceeding to
enforce the Patents.  If Licensee finds it necessary or desirable,
Licensor will execute all papers or perform any other acts or provide any
assistance, at Licensee's expense, toward pursuing such action or proceeding, as
reasonably required by Licensee.  Licensor will use its best efforts
to ensure that any Licensor personnel will be available to cooperate, at
Licensee's expense, toward pursuing such action.

       

      5.3           Damages
for Breach

       

      In the
event of a material breach of this Agreement by Licensee, subject to the terms
and conditions of this Agreement, Licensor may seek exclusively money damages
pursuant to the terms and conditions of this Agreement.  In no event,
however, will Licensor be entitled to take any action or direct any proceeding
with respect to the Patents without Licensee’s express consent and direction
unless and until there has been a termination of the Term because of Licensee's
proven, continuing and uncured breach.

       

      6.     
       Representations and Warranties of
Licensor

       

      Licensor
represents and warrants to Licensee as of the Effective Date and as of the
Closing:

       

      6.1           All
Substantial Rights

       

      Licensor
intends by this Agreement to transfer to Licensee all substantial rights under
the Patents.

       

      6.2           Authority

       

      Licensor
has the full power and authority and has obtained all third party consents,
approvals, and/or authorizations required to enter into this Agreement and to
carry out its obligations hereunder, including, without limitation, the
assignment to Licensee of all causes of action with respect to the
Patents.

      
        
           

        

        
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      6.3           Title
and Contest

       

      Licensor
owns, and as of the Closing Licensee will hold, all right, title and interest to
each right conferred under this Agreement with respect to the Patents,
including, without limitation, all rights, title, and interest in and to the
causes of action assigned by this Agreement.  Licensor has obtained
and properly recorded previously executed assignments for the Patents as
necessary to fully perfect its rights and title therein in accordance with
governing law and regulation in each jurisdiction.  Each right
conferred under this Agreement with respect to the Patents is free and clear of
all liens, mortgages, security interests, and restrictions on
transfer.  There are no actions, suits, investigations, claims, or
proceedings threatened, pending or in progress relating in any way to any right
conferred under this Agreement with respect to the Patents.  There are
no existing contracts, agreements, options, commitments, proposals, bids,
offers, or rights with, to or in any Person to acquire any Patents.

       

      6.4           Existing
Licenses and Restrictions on Rights

       

      No
rights, interests, or licenses have been granted under any Patents or retained
by prior owners or inventors.  Licensee will not be subject to any
covenant not to sue or similar restrictions on its enforcement or enjoyment of
any of Patents or the related causes of action as a result of the transactions
contemplated in this Agreement or any prior transaction related to the Patents
or the Abandoned Assets.

       

      6.5           Validity
and Enforceability

       

      None of
the Patents or the Abandoned Assets (other than Abandoned Assets for which
abandonment resulted solely from unpaid fees and/or annuities) has been found
invalid, unpatentable, or unenforceable for any reason in any administrative,
arbitration, judicial or other proceeding; and Licensor does not know, has not
received any notice or claim from any source suggesting that, the Patents are
invalid, unpatentable, or unenforceable.  To the extent “small entity”
fees were paid to the United States Patent and Trademark Office for any of the
Patents, such reduced fees were then appropriate because the payor qualified to
pay “small entity” fees at the time of such payment and specifically had not
licensed rights in the any of the Patents to an entity that was not a “small
entity.”

       

      6.6           Conduct

       

      Licensor
and its representatives have not engaged in any conduct, or omitted to perform
any necessary act, the result of which would invalidate any of the Patents or
hinder its enforcement, including, without limitation, misrepresenting
Licensor’s patent rights to a standard-setting organization.

       

      6.7           Enforcement

       

      Licensor
has not (a) put a third party on notice of actual or potential infringement of
any of the Patents or the Abandoned Assets or (b) initiated enforcement
action(s) with respect to any of the Patents or the Abandoned
Assets.

      
        
           

        

        
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      6.8           Patent
Office Proceedings

       

      None of
the Patents or the Abandoned Assets has been or is currently involved in any
re-examination, reissue, interference proceeding, or any similar proceeding, and
no such proceedings are pending or threatened.

       

      6.9           Fees

       

      All
maintenance fees, annuities and the like due or payable on each of the Patents
have been timely paid.  For the avoidance of doubt, Licensor shall pay
any maintenance fees for which the fee is payable (e.g., the fee payment window
opens) on or prior to the Closing even if the surcharge date or final deadline
for payment of such fee would be after the Closing.

       

      6.10           Abandoned
Patents

       

      According
to each applicable patent office, each of the Abandoned Assets has expired,
lapsed, or been abandoned or deemed withdrawn.

       

      7.          
  Representations and Warranties of Licensee

       

      Licensee
represents and warrants to Licensor as of the Effective Date and the
Closing:

       

      7.1           Authority

       

      Licensee
is duly organized and validly existing under the laws of the jurisdiction of its
formation and has full power and authority to enter into this Agreement and to
carry out the provisions hereof.

       

      7.2           Due
Authorization

       

      Licensee
is duly authorized to execute and deliver this Agreement and to perform its
obligations hereunder.  The individual executing this Agreement on
Licensee’s behalf has been duly authorized to do so by all requisite corporate
action.

       

      8.       
     Disclaimer of Representations and Warranties;
Limitation of Liability; Exclusions From Damages

       

      8.1           Disclaimer
of Representations and Warranties

       

      NEITHER
PARTY MAKES ANY REPRESENTATION OR WARRANTY EXCEPT FOR THEIR RESPECTIVE
REPRESENTATIONS AND WARRANTIES SET FORTH IN SECTIONS 6 AND 7, AND EACH PARTY
DISCLAIMS ALL IMPLIED WARRANTIES, INCLUDING, WITHOUT LIMITATION, THE IMPLIED
WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
PURPOSE.  LICENSEE GIVES LICENSOR NO ASSURANCE THAT ANY ROYALTIES WILL
BE GENERATED FOR LICENSOR OR THAT ANY ROYALTIES WILL BE PAYABLE TO
LICENSOR.  EXCEPT AS EXPRESSLY SET FORTH IN SECTION 6, LICENSOR GIVES
LICENSEE NO ASSURANCE (A) REGARDING THE PATENTABILITY OF ANY CLAIMED INVENTION
IN, OR THE VALIDITY, OF ANY PATENT; OR (B) THAT LICENSEE’S OR ITS
SUBLICENSEES’  MANUFACTURE, USE, SALE, OFFERING FOR SALE, IMPORTATION,
EXPORTATION OR OTHER DISTRIBUTION OF ANY PRODUCT OR METHOD DISCLOSED AND CLAIMED
IN ANY PATENT BY LICENSEE OR ANY SUBLICENSEE OR ANYONE ELSE WILL NOT CONSTITUTE
AN INFRINGEMENT OF THE INTELLECTUAL PROPERTY RIGHTS OF OTHERS.

      
        
           

        

        
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      8.2           Limitation
of Liability

       

      EXCEPT IN
THE EVENT OF BREACH OF ANY OF THE PRIMARY WARRANTIES BY LICENSOR OR LICENSOR’S
INTENTIONAL MISREPRESENTATION, NEITHER PARTY’S TOTAL LIABILITY UNDER THIS
AGREEMENT WILL EXCEED THE PAYMENT AMOUNT SET FORTH IN PARAGRAPH
2.1.  THE PARTIES ACKNOWLEDGE THAT THE FOREGOING LIMITATION ON
POTENTIAL LIABILITY WAS AN ESSENTIAL ELEMENT IN SETTING CONSIDERATION UNDER THIS
AGREEMENT.

       

      8.3           Exclusion
of Certain Damages

      

      NEITHER
PARTY WILL HAVE ANY OBLIGATION OR LIABILITY (WHETHER IN CONTRACT, WARRANTY, TORT
(INCLUDING NEGLIGENCE) OR OTHERWISE, AND NOTWITHSTANDING ANY FAULT, NEGLIGENCE
(WHETHER ACTIVE, PASSIVE OR IMPUTED), REPRESENTATION, STRICT LIABILITY OR
PRODUCT LIABILITY), FOR COVER OR FOR ANY INCIDENTAL, INDIRECT OR CONSEQUENTIAL,
MULTIPLIED, PUNITIVE, SPECIAL, OR EXEMPLARY DAMAGES OR LOSS OF REVENUE, PROFIT,
SAVINGS OR BUSINESS ARISING FROM OR OTHERWISE RELATED TO THIS AGREEMENT, EVEN IF
A PARTY OR ITS REPRESENTATIVES HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES.  LICENSOR UNDERSTANDS AND CONFIRMS THAT THERE MAY NOT BE ANY
ROYALTIES PAID UNDER THIS AGREEMENT. THE
PARTIES ACKNOWLEDGE THAT THESE EXCLUSIONS OF POTENTIAL DAMAGES WERE AN ESSENTIAL
ELEMENT IN SETTING CONSIDERATION UNDER THIS AGREEMENT.

      

      8.4.          Compliance with
Laws

      

      Notwithstanding
anything contained in this Agreement to the contrary, the obligations of the
parties with respect to the consummation of the transactions contemplated by
this Agreement shall be subject to all laws, present and future, of any
government having jurisdiction over the parties and this transaction, and to
orders, regulations, directions or requests of any such
government.

      
        
           

        

        
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      8.5           Confidentiality
of Terms

       

      The
parties hereto will keep the terms and existence of this Agreement and the
identities of the parties hereto and their affiliates confidential and will not
now or hereafter divulge any of this information to any third party except
(a) with the prior written consent of the other party; (b) as otherwise may
be required by law or legal process, including, without limitation, in
confidence to legal and financial advisors in their capacity of advising a party
in such matters; (c) during the course of litigation, so long as the
disclosure of such terms and conditions is restricted in the same manner as is
the confidential information of other litigating parties; (d) in confidence
to its legal counsel, accountants, banks and financing sources and their
advisors solely in connection with complying with its obligations under this
Agreement; (e) by Licensee, in order to perfect Licensee’s interest in the
Patents or the Abandoned Assets with any governmental patent office (including,
without limitation, recording Memoranda of Exclusive License/Rights in any
governmental patent office); or (f) to enforce Licensee’s rights and interest in
the Patents, the causes of action transferred under this Agreement, or the
Abandoned Assets; provided, in (b) through (d) above, (i) to the extent
permitted by law, the disclosing party will use all legitimate and legal means
available to minimize the disclosure to third parties, including, without
limitation, seeking a confidential treatment request or protective order
whenever appropriate or available; and (ii) the disclosing party will provide
the other party with at least ten (10) days’ prior written notice of such
disclosure.  Without limiting the foregoing, Licensor will cause its
agents involved in this transaction to abide by the terms of this paragraph,
including, without limitation, ensuring that such agents do not disclose or
otherwise publicize the existence of this transaction with actual or potential
clients in marketing materials or industry conferences.  In the event
of any breach or default, threatened or otherwise, under this paragraph, the
parties acknowledge and agree that damages alone would be insufficient to
compensate for any such breach or default and that irreparable harm would result
from such breach or default.  Consequently, in the event of any such
breach or default, or any threat of such breach or default by either party, the
other party will be entitled to temporary or permanent injunctive relief,
specific performance and such other equitable relief as may be appropriate in
the circumstances in order to restrain or enjoin such breach or
default.  These remedies will not be the exclusive remedies for
violation of the terms of the confidentiality obligations contained in this
paragraph but will be in addition to all other remedies available to the parties
at law or in equity.

       

      9.         
   Definitions

       

      Capitalized
terms used in this Agreement that are not otherwise defined have the meanings
set forth in this Section.

       

      “Abandoned
Assets” means those specific provisional patent applications, patent
applications, patents and other governmental grants or issuances, if any, listed
on Exhibit C (as such list may be updated based on Licensee’s review
pursuant to paragraph 3.1).

       

      “Affiliate”
means, with respect to any Person, any Entity in whatever country organized that
controls, is controlled by or is under common control with such
Person.  The term “control” means possession, direct or indirect, of
the power to direct or cause the direction of the management and policies of an
Entity, whether through the ownership of voting securities, by contract or
otherwise.

      
        
           

        

        
          -11-

          
            

          

        

        
           

        

      

       

      “Amounts” as generally used in this
Agreement refers to cash amounts, and amounts that are not cash will be valued
by Licensee at their cash equivalent under customary valuation
techniques.

       

      “Assignment
Agreements” means the agreements assigning to Licensor ownership of the
Patents and the Abandoned Assets from the inventors and/or any prior owners to
Licensor.

       

      “Closing”
has the meaning set forth in paragraph 3.2.

       

      “Effective
Date” means the date set forth as the Effective Date on the cover page of
this Agreement.

       

      “Entity”
means any corporation, partnership, limited liability company, association,
joint stock company, trust, joint venture, unincorporated organization,
governmental entity (or any department, agency, or political subdivision
thereof) or any other legal entity.

       

       “Licensed Products” means any
product sold by Licensee which would otherwise infringe one or more claims of a
Patent.

       

      “Memoranda of
Exclusive License/Rights” means one or more documents in substantially
the form of Exhibit B,
which form may be adjusted for the requirements of the particular government
patent office, that memorialize the license and other rights transferred to
Licensee by this Agreement

       

      “Net Sales Revenues” means the
gross sales revenue minus product returns for credit, discounts, rebates or
similar price adjustments or credits, freight and insurance charges, value added
taxes, sales taxes and/or similar taxes and duties for all Licensed
Products.

       

      “Patent” or “Patents” means (a) all patents
listed in Exhibit A and
the inventions therein described {the “Inventions”); (b) the entire
right, title and interest in said Invention in the listed patents and any
related patent applications, and in all divisionals, continuations and
continuations-in-part of the applications, or reissues or extensions of Letters
Patent or patents granted thereon, and in all corresponding applications filed
in any and all jurisdictions and/or countries foreign to the United States, and
in all patents issuing thereon in the United States and/or foreign jurisdictions
or countries; (c) the entire right, title and interest to any and all developed
ideas, trade secrets, confidential information, and copyrightable matter
directly related to said Invention; and (d) all extensions, modifications, new
developments, improvements, supplements, technical data, scientific know-how,
and all other property, legal, equitable, and contractual rights directly and
indirectly relating to said Invention, whether now existing or hereafter
arising..

       

      “Person”
means any individual or Entity.

       

      “Primary
Warranties” means, collectively, the representations and warranties of
Licensor set forth in paragraphs 6.1, 6.2, 6.3, 6.4, and 6.5
hereof.

       

      “Prosecution
History Files” means the names, addresses, email addresses, and phone
numbers of prosecution counsel and agents, and all files, documents and tangible
things, as those terms have been interpreted pursuant to rules and laws
governing the production of documents and things, constituting, comprising or
relating to the investigation, evaluation, preparation, prosecution,
maintenance, defense, filing, issuance, registration, assertion or enforcement
of the Patents.

       

      “Reporting
Period” has the
meaning set forth in paragraph 2.3.

      
        
           

        

        
          -12-

          
            

          

        

        
           

        

      

       

      “Royalties” has the meaning set forth
in paragraph 2.2

       

      “Royalty
Percentage”
means the percentage set forth on the cover page of this Agreement.

       

      “Transmitted
Copy” has the meaning set forth in paragraph 10.14.

       

      “Upfront Royalty
Payment” has the meaning set forth in paragraph 2.1.

       

      10.           Miscellaneous

       

      10.1         Indemnification

       

      Licensee
shall defend (with legal counsel selected and retained by Licensee and approved
by Licensor, which approval shall not be unreasonably withheld), indemnify and
hold harmless Licensor, its governors, regents, directors, officers, employees,
agents and their respective successors, assigns and heirs (“Indemnitees”) against
any and all claims, suits and legal actions by any third party (“Claims”), based upon
any theory of liability (including, without limitation, warranty, strict
liability or tort, and regardless of any factual basis), arising out of the
exercise of any rights under this Agreement to the Patents by Licensee or any of
its Affiliates, successors or assigns, or by any sublicensee of Licensee, all
subject to the following:

       

      
        	
                (a)

              	
                Indemnitees
      shall give Licensee written notice of the Claim which any Indemnitee
      desires Licensee to defend, indemnify and hold harmless under this
      Agreement promptly after any Indemnitee receive notice thereof along with
      sufficient information for Licensee to identify the
      Claim.  Indemnitees shall not settle or compromise any such
      Claim without the prior written consent of
      Licensee.  Indemnitees shall cooperate and provide such
      assistance (including, without limitation, testimony and access to
      documentation within the possession or control of any Indemnitee) as
      Licensee may reasonably request in connection with Licensee's defense,
      settlement and satisfaction of the Claim; provided that Licensee shall pay
      or reimburse all of the costs and expenses reasonably incurred by
      Indemnitees to provide any such cooperation and assistance in accordance
      with Licensee's request.

              

      

       

      
        	
                (b)

              	
                As
      part of Licensee's obligation to defend, indemnify and hold harmless
      Indemnitees, Licensee shall pay any and all (i) costs and expenses
      reasonably incurred by Licensee in connection with the defense, settlement
      or satisfaction of any Claim (including, without limitation, any amounts
      agreed to by Licensee in settlement of the Claim) and (ii) amounts
      required by any judgment or order of any court to be paid by Indemnitees
      as damages or other relief based upon the Claim; provided that Indemnitees
      have complied with their obligations under (a) above with respect to the
      Claim.

              

      

       

      
        	
                (c)

              	
                Licensee
      shall not be obligated to defend, indemnify or hold harmless any
      Indemnitee against any Claim or related costs and expenses, if and to the
      extent the Claim arises out of any breach of this Agreement by Licensor
      (including, without limitation, any breach of Licensor's representations
      and warranties set forth in Section
6).

              

      

       

      
        	
                (d)

              	
                Licensee
      shall be entitled to a credit against future royalties or other amounts
      payable by Licensee to Licensor under this Agreement in an amount equal to
      any out-of-pocket amounts expended by Licensee in the specific defense of
      claims levied against Licensor, or Licensee where Licensor is a named
      party in the claim, by the
claimant.

              

      

       

      
        
           

        

        
          -13-

          
            

          

        

        
           

        

      

       

      Except
as specifically provided in (a) and (b) above, Licensee shall not have any
obligation to pay or reimburse any costs or expenses (including, without
limitation, any fees or expenses of any legal counsel retained by any
Indemnitee), unless otherwise agreed in writing by Licensee.

       

      10.2           Relationship
of Parties

       

      The
parties hereto are independent contractors.  Nothing in this Agreement
will be construed to create a partnership, joint venture, franchise, fiduciary,
employment or agency relationship between the parties.  Neither party
has any express or implied authority to assume or create any obligations on
behalf of the other or to bind the other to any contract, agreement or
undertaking with any third party.

       

      10.3           Assignment;
Successors

       

      The terms
and conditions of this Agreement will inure to the benefit of Licensee, its
successors, assigns and other legal representatives, and will be binding upon
Licensor, its successors, assigns, and other legal
representatives.  Without Licensor’s consent, Licensee may assign, in
whole or in part, this Agreement, and/or any license or other rights Licensee
acquires hereunder, to its Affiliates.  Licensor will not unreasonably
withhold or delay its consent to any other assignment requested by Licensee of
this Agreement, in whole or in part, or of any license or other rights Licensee
acquires hereunder.

       

      10.4           Term
and Termination

       

      The term
of this Agreement (the “Term”) will commence
on the Effective Date and will continue in effect until the last of the Patents
expires, or such longer time as may be necessary, as determined at Licensee’s
sole and absolute discretion, to permit Licensee to fully enforce and protect
its rights under the Patents for any action or proceeding for infringement
arising before such expiration.  Subject to the provisions of
paragraph 10.10, in the event of a material breach of this Agreement, the
non-breaching party will be entitled to terminate the Term by written notice to
the breaching party, if such breach is not cured within ten (10) business days
(for monetary defaults) and sixty (60) days (for non-monetary defaults) after
written notice specifying the breach is given to the breaching
party.

      

      10.5           Survival/Effect
of Termination

       

      No
termination of the Term will relieve a breaching party of its obligations
arising prior to such termination.

       

      10.6           Export
Controls

       

      It is
understood and agreed that to the extent Licensor is subject to United States
laws and regulations controlling the export of technical data, computer
software, laboratory prototypes, and other commodities (including the Arms
Export Control Act, as amended, and the Export Administration Act of 1979), and
that its obligations hereunder are contingent on compliance with applicable
United States export laws and regulations.  The transfer of certain
technical data and commodities may require a license from the cognizant agency
of the United States Government and/or written assurances by Licensee that
Licensee will not export data or commodities to certain foreign countries
without prior approval of such agency.  Licensor neither represents
that a license will not be required nor that, if required, it will be
issued.

      
        
           

        

        
          -14-

          
            

          

        

        
           

        

      

       

      10.7           Governing
Law

       

      Any claim
arising under or relating to this Agreement will be governed by the laws of the
State of Utah, without regard to choice of law principles to the
contrary.

       

      10.8           Dispute
Resolution

       

      Except as
provided under paragraph 8.5, the parties hereby waive their respective rights
to seek remedies in court, and will resolve any and all claims, disputes, or controversies
relating in any way to, or arising out of, this Agreement, including, without
limitation, any breach or threatened breach of this Agreement, the amount of
Royalties due under this Agreement, or the
calculation of Net Sales
Revenue (“Disputes”), as follows:

       

      (a)           The
party raising the Dispute shall promptly provide the other party with a written
notice describing the nature of the Dispute in reasonable detail (a “Dispute
Notice”).  During the thirty (30) day period after a party’s receipt
of a Dispute Notice, the parties will commence discussions to attempt to resolve
the Dispute.

       

      (b)           If
the parties cannot timely resolve the Dispute through negotiation, before
resorting to arbitration the parties will try in good faith to settle the
Dispute by mediation before a mutually agreed mediator in Utah.  The
mediation will be conducted in English and administered by the American
Arbitration Association (“AAA”) under its
Commercial Mediation Procedures.  If the parties are unable to agree
upon a mutually acceptable mediator, the AAA will appoint a qualified
mediator.  The mediation proceeding shall take place on the earliest
practicable date following the submission of a request for mediation by either
party, which request shall be submitted within sixty (60) days after a party’s
receipt of a Dispute Notice.

       

      (c)           If
the Dispute is not resolved through mediation within thirty (30) days after the
mediation hearing, the parties will submit the Dispute to final and binding
arbitration administered by the AAA under its Commercial Arbitration
Rules.  The arbitrator may enter a default decision against any party
who fails to participate in the arbitration proceedings.

       

      (i)           The
arbitration will be conducted before a mutually agreed panel of three neutral
(3) arbitrators in Utah.  If the parties are unable to agree upon a
mutually acceptable panel of three (3) arbitrators, the panel will be selected
by the AAA.

       

      (ii)           The
arbitration hearing will be conducted in English, and under no circumstances
will the arbitration hearing extend for more than one (1) business
day.  The award shall be rendered within one hundred twenty (120) days
of the demand and the arbitrators shall agree to comply with this schedule
before accepting appointment.  The parties have included these time
limits to expedite the proceeding, but they are not jurisdictional, and the
arbitrator may for good cause permit reasonable extensions which shall not
affect the validity of the award.

      
        
           

        

        
          -15-

          
            

          

        

        
           

        

      

       

      (iii)           All
documents and information relevant to the Dispute in the possession of any party
shall be made available to the other party not later than sixty (60) days after
the demand for arbitration is served, and the arbitrator may permit such
depositions or other discovery deemed necessary for a fair hearing.

       

      (iv)           The
parties agree that the arbitration method to be employed by the parties will be
"baseball arbitration," in which case each party will submit to the arbitrators
and exchange with each other in advance of the hearing their last, best offers
and the arbitrators will be limited to awarding only one or the other of the two
figures submitted.

       

      (v)           The
arbitrators’ award may be entered and enforced in any court with competent
jurisdiction and will be nonappealable.  Such decision may be used in
a court of law only for the purpose of seeking enforcement of the arbitrator's
decision permitted under this Agreement.

       

      (vi)           The
costs of the arbitration proceeding, including reasonable attorneys’ fees and
costs, will be determined by the arbitrators, who may apportion costs equally,
or in accordance with any finding of fault or lack of good faith of either
party.

       

      (vii)          To
the fullest extent permitted by law, no arbitration under this Agreement shall
be joined to any other arbitration, and no class arbitration proceedings shall
be permitted.

       

      (viii)        Except
as may be required by law, neither a party nor any arbitrator may disclose the
existence, content, or results of any arbitration hereunder without the prior
written consent of both parties.

       

      Notwithstanding
the foregoing, nothing in this paragraph 10.8 will be construed to waive any
rights of timely performance of any obligations existing under this Agreement
through the Closing.

       

      10.9           Notices
and Payment Delivery

       

      All
notices required or permitted to be given hereunder will be in writing, will
make reference to this Agreement and will be delivered by hand, or dispatched by
prepaid air courier or by registered or certified airmail, postage prepaid, to
the addresses set forth on the cover page of this Agreement.  Such
notices will be deemed served when received by addressee or, if delivery is not
accomplished by reason of some fault of the addressee, when tendered for
delivery.  Either party may give written notice of a change of address
to the other.  After notice of such change has been received, any
notice or request will thereafter be given to such party at such changed
address.

      
        
           

        

        
          -16-

          
            

          

        

        
           

        

      

       

      10.10                      Remedies

       

      Licensor's
sole and exclusive remedy in the event of any claim, dispute, or controversy
under this Agreement will be the recovery of money damages, subject to the
disclaimer and limitations set forth in this Agreement, including, without
limitation, those in paragraphs 8.1 through 8.3.

       

      10.11                      Severability

       

      If any
provision of this Agreement is found to be invalid or unenforceable, then the
remainder of this Agreement will have full force and effect, and the invalid
provision will be modified, or partially enforced, to the maximum extent
permitted to effectuate the original objective.

       

      10.12                      Waiver

       

      Failure
by either party to enforce any term of this Agreement will not be deemed a
waiver of future enforcement of that or any other term in this Agreement or any
other agreement that may be in place between the parties.

       

      10.13                      Miscellaneous

       

      This
Agreement, including its exhibits, constitutes the entire agreement between the
parties with respect to the subject matter hereof and merges and supersedes all
prior and contemporaneous agreements, understandings, negotiations, and
discussions.  Neither of the parties will be bound by any conditions,
definitions, warranties, understandings, or representations with respect to the
subject matter hereof other than as expressly provided herein.  The
section headings contained in this Agreement are for reference purposes only and
will not affect in any way the meaning or interpretation of this
Agreement.  No oral explanation or oral information by either party
hereto will alter the meaning or interpretation of this Agreement.  No
amendments or modifications will be effective unless in a writing signed by
authorized representatives of both parties; provided, however, that, both prior
to and after the Closing, Licensee may update Exhibits A
and B to
include any patents or patent applications within the definition of Patents,
based on its review of the Deliverables as defined in paragraph 3.1, by
providing updated Exhibits A and
B to Licensor.  The terms and conditions of this Agreement will
prevail notwithstanding any different, conflicting or additional terms and
conditions that may appear on any letter, email or other communication or other
writing not expressly incorporated into this Agreement.  The following
exhibits are attached hereto and incorporated herein:  Exhibit A
(entitled “Patents
Being Licensed”); Exhibit B
(entitled “Memorandum
of Exclusive License/Rights”); and Exhibit D
(entitled “Transfer of
Rights in Certain Assets”).

      
        
           

        

        
          -17-

          
            

          

        

        
           

        

      

       

      10.14                      Counterparts;
Electronic Signature

       

      This
Agreement may be executed in counterparts, each of which will be deemed an
original, and all of which together constitute one and the same
instrument.  Each party will execute and promptly deliver to the other
parties a copy of this Agreement bearing the original
signature.  Prior to such delivery, in order to expedite the process
of entering into this Agreement, the parties acknowledge that a Transmitted Copy
of this Agreement will be deemed an original document.  “Transmitted Copy”
means a copy bearing a signature of a party that is reproduced or transmitted
via email of a .pdf file, photocopy, facsimile, or other process of complete and
accurate reproduction and transmission.

       

      

       

      [Remainder
of Page Intentionally Left Blank.]

       

      

       

      

      
        
           

        

        
          -18-

          
            

          

        

        
           

        

      

      

       

      EXHIBIT
A

       

      PATENTS BEING
LICENSED

       

      

      

      
        
          	 
      	 
      	 
      	 
      
	
                  Patent
      or

                  Application
      No.

                	
                  Country

                	
                  Issue
      Date

                	
                  Title of
      Patent

                
	
                   

                  6,044,257

                   

                	
                   

                  United
      States

                	
                   

                  March
      28, 2000

                	
                   

                  Panic
      Button Phone

                
	
                  6,636,732

                   

                	
                  United
      States

                	
                  October
      21, 2003

                	
                  Emergency
      Phone with Single Button Activation

                
	
                  6,226,510

                	
                  United
      States

                	
                  May
      1, 2001

                	
                  Emergency
      Phone for Automatically Summoning Multiple Emergency Response
      Services

                
	
                  7,092,695

                	
                  United
      States

                	
                  August
      15, 2006

                	
                  Emergency
      Phone with Alternate Number Calling Capability

                
	
                  7,251,471

                   

                	
                  United
      States

                	
                  July
      31, 2007

                	
                  Emergency
      Phone with Single Button
Activation

                

        

      

      

      
        
           

        

        
          -19-

          
            

          

        

        
           

        

      

       

      EXHIBIT
B

       

      MEMORANDUM OF EXCLUSIVE
LICENSE/RIGHTS

       

      

       

      Futuristic
Medical Devices, LLC, a Delaware limited liability company having offices at 13
Augusta Avenue, Monsey, New York 10952, (“Licensor”), has granted to Volu-Sol Reagents
Corporation, a Utah corporation, having an office at 5095 West
2100 South, West Valley City, Utah 84120 (“Licensee”), the exclusive, worldwide,
transferable, sublicensable, license of all rights of any kind conferred by the
patents, patent applications, and provisional patent applications listed in the
table below:

      
        
          	 
      	 
      	 
      	 
      
	
                  Patent
      or

                  Application
      No.

                	
                  Country

                	
                  Issue
      Date

                	
                  Title of
      Patent

                
	
                   

                  6,044,257

                   

                	
                   

                  United
      States

                	
                   

                  March
      28, 2000

                	
                   

                  Panic
      Button Phone

                
	
                  6,636,732

                   

                	
                  United
      States

                	
                  October
      21, 2003

                	
                  Emergency
      Phone with Single Button Activation

                
	
                  6,226,510

                   

                	
                  United
      States

                	
                  May
      1, 2001

                	
                  Emergency
      Phone for Automatically Summoning Multiple Emergency Response
      Services

                
	
                  7,092,695

                	
                  United
      States

                	
                  August
      15, 2006

                	
                  Emergency
      Phone with Alternate Number Calling Capability

                
	
                  7,251,471

                   

                	
                  United
      States

                	
                  July
      31, 2007

                	
                  Emergency
      Phone with Single Button
Activation

                

        

      

      

      including,
without limitation, the rights of any kind to, or conferred by, the Patents
(defined below) to (a) use or otherwise practice any art, methods,
processes, and procedures covered by the Patents, (b) make, have made, use,
offer to sell, sell, import, and otherwise distribute or dispose of any
inventions, discoveries, products, services, technologies or services covered by
the Patents, (c) otherwise exploit any rights granted in the Patents and/or
any invention or discovery described in the Patents, and (d) exclude other
Persons from exercising any of such rights.

       

      The
“Patents” include all right, title, and interest that exist today and may exist
in the future in and to any and all of the following:

       

       (a)
all patents listed in Exhibit A and the inventions therein described {the
“Inventions”);

       

      (b) the
entire right, title and interest in said Invention in the listed patents and any
related patent applications, and in all divisionals, continuations and
continuations-in-part of the applications, or reissues or extensions of Letters
Patent or patents granted thereon, and in all corresponding applications filed
in any and all jurisdictions and/or countries foreign to the United States, and
in all patents issuing thereon in the United States and/or foreign jurisdictions
or countries;

      
        
           

        

        
          -20-

          
            

          

        

        
           

        

      

       

      (c) the
entire right, title and interest to any and all developed ideas, trade secrets,
confidential information, and copyrightable matter directly related to said
Invention; and

       

      (d) all
extensions, modifications, new developments, improvements, supplements,
technical data, scientific know-how, and all other property, legal, equitable,
and contractual rights directly and indirectly relating to said Invention,
whether now existing or hereafter arising.

       

      Licensor
has also assigned, transferred and conveyed to Licensee all right, title, and
interest in and to:

       

      (x)           rights
to apply in any or all countries of the world for patents, certificates of
invention, utility models, industrial design protections, design patent
protections, or other governmental grants or issuances of any type related to
any of the Patents and the inventions and discoveries therein;

       

      (y)           all
causes of action and enforcement rights of any kind (whether such claims, causes
of action or enforcement rights are known or unknown; currently pending, filed,
to be filed, or otherwise) under the Patents and/or under or on account of any
of the Patents for past, current and future infringement of the Patents,
including without limitation, all rights to (i) pursue and collect damages,
profits and awards of whatever nature recoverable, (ii) injunctive relief,
(iii) other remedies, and (iv) compromise and/or settle all such
claims, causes of action and enforcement rights, for such infringement by
granting an infringing party a sublicense or otherwise; and

       

      (z)           rights
to collect royalties or other payments under or on account of any of the Patents
or any of the foregoing.

       

      The
preparation, filing, prosecution, maintenance and defense of the Patents will be
under Licensee’s exclusive control and discretion, in all pertinent governmental
patent offices anywhere in the world.

       

      Licensor
hereby irrevocably grants Licensee the exclusive power to grant one or more
powers of attorney with respect to the Patents and the
exclusive discretion to transfer that right to Licensee's agent(s) or
representative(s) that Licensee may designate one or more time, now or in the
future.  Licensor understands that execution of this document confers
on any attorney(s) or agent(s) to whom Licensee may grant a power of attorney
the exclusive right to correspond with any patent office with repect to the
Patents, and that this document does not create an attorney - client
relationship with such practitioners to whom Licensee grants powers of attorney
pursuant to this paragraph. 

       

      
        
           

        

        
          -21-

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF this Memorandum of Exclusive License/Rights is executed at
__________ on May 25, 2009.

       

      

      
        	
                LICENSOR:

                 

                FUTURISTIC
      MEDICAL  DEVICES, LLC

                 

                 

                By:   /s/ Jacob
      Pilchick                                                            
      

                 

                Name: Jacob
      Pilchick                                                                

                 

                Title: Manager                                                                
                

                 

              	 
      

      

       

      

      
        
          
            
              	
                      STATE
      OF NEW YORK

                    	
                      )

                    
	 
      	
                      )
      ss.

                    
	
                      COUNTY
      OF KINGS

                    	
                      )

                    

            

          

        

      

      

      

      On May
25, 2009, before me, Doron Evans, Notary Public in and for said State,
personally appeared Jacob Pilchick, personally known to me (or proved to me on
the basis of satisfactory evidence) to be the person whose name is subscribed to
the within instrument and acknowledged to me that he/she executed the same in
his/her authorized capacity, and that by his/her signature on the instrument the
person, or the entity upon behalf of which the person acted, executed the
instrument.

      

      

      WITNESS
my hand and official seal.

       

      

       

      Signature  /s/ Doron
Evans                                         
       [NOTARY SEAL]

       

      

      
        
           

        

        
          -22-

          
            

          

        

        
           

        

      

       

      EXHIBIT
C

       

      ABANDONED
ASSETS

       

      

       

      

      
        
           

        

        
          -23-

          
            

          

        

        
           

        

      

       

      EXHIBIT
D

       

      TRANSFER OF RIGHTS IN
CERTAIN ASSETS

       

       

       

       

      

        -24-activecare10q20090630ex10-8.htm

    
      

      

    

    
      DISTRIBUTION
AND LICENSE AGREEMENT

       

      This
Distribution and License Agreement (this “Agreement”) is made
effective May 28, 2009 (the “Effective Date”) by
and between Volu-Sol Reagents Corporation, a Utah corporation (“Licensor”), and
euromicron AG, a German corporation (“Licensee”).  Licensor
and Licensee may be referred to herein as a “party” or together as the
“parties.”

       

      WHEREAS, Licensor holds all
necessary rights in certain patents (as defined below, the “Patents”) and other
intellectual property and has the right to grant the licenses contemplated by
this Agreement;

       

      WHEREAS, Licensor, under the
Patents, has developed and holds all rights necessary to manufacture, market and
distribute a GPS-based tracking device, now in prototype form, that will be
marketed to a consumer-oriented market, including seniors and other vulnerable
individuals (as defined below, the “Volu-Sol
Product”);

       

      WHEREAS, concurrently with
this Agreement, Licensee has entered into a separate Distribution and License
Agreement with RemoteMDx, Inc. (“RemoteMDx”) dated as
of May 28, 2009 (the “RemoteMDx Agreement”)
to distribute a certain GPS-based tracking device for use by law enforcement
agencies for tracking offenders;

       

      WHEREAS, in connection with
the transactions contemplated by this Agreement and the RemoteMDx Agreement,
Licensor has received material consideration from RemoteMDx;

       

      WHEREAS, Licensor desires to
grant to Licensee, and Licensee desires to accept, an exclusive license to
manufacture, market and distribute the Volu-Sol Product in the Territory (as
defined below), subject to the terms and conditions of this
Agreement.

       

      NOW, THEREFORE, in
consideration of the premises and the mutual covenants and promises set forth in
this Agreement, the legal sufficiency of which is hereby acknowledged, the
parties hereby agree as follows:

       

      1.      
      Definitions

       

      .  The
following terms when used in this Agreement shall have the meanings set forth
below.

       

      1.1.           “Business Day” means
any day, other than Saturday or Sunday, on which commercial banks in the United
States of America are open for business.

       

      1.2.           “Distributors” has the
meaning set forth in Section 2.6.

       

      1.3.           “Implementation Plan”
has the meaning set forth in Section 3.2(c).

       

      1.4.           “Intellectual Property
Rights” means any and all now known or hereafter known (a) rights
associated with works of authorship throughout the world, including but not
limited to copyrights and moral rights, (b) trademarks, service marks, trade
name and logo rights and similar rights, (c) trade secret rights and know-how,
(d) patent rights, designs, algorithms and other intellectual property rights,
(e) domain names and Internet keywords and (f) all other intellectual and
industrial property rights (of every kind and nature throughout the world and
however designated), whether arising by operation of law, contract, license, or
otherwise, and (g) all registrations, initial applications, renewals,
extensions, continuations, divisions or reissues thereof now or hereafter in
force (including any rights in any of the foregoing).

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      1.5.           “Know How” means the
accumulation of skills, processes, information, experience and documents related
to the Licensed Intellectual Property and needed to enable Licensee, itself or
through third-party sublicensees, to practice the Licensed Intellectual Property
to manufacture, service and sell the Volu-Sol Product, including, but not
limited to, any and all materials, technical information, blueprints, process
documents, drawings, CAD-CAM and other electronic files, supplier lists,
specifications, trade secrets, Know How, techniques, discoveries, processes,
procedures, methods, protocols, designs, diagrams, test results, studies, raw
material sources, data, formulation, production technology and other such
materials.

       

      1.6.           “Licensed Intellectual
Property” means all Intellectual Property Rights in and to the Volu-Sol
Product, including without limitation the Patents, the Licensed Trademarks, the
Product Documentation and any Product Marketing Materials.

       

      1.7.           “Licensed Trademarks”
means the trademarks of Licensor set forth on Exhibit B, as
amended from time to time by mutual agreement of Licensor and
Licensee.

       

      1.8.           “Licensee Monitoring
Center” has the meaning set forth in Section 3.2(b).

       

      1.9.           “Local Communications and
Customer Service Center” has the meaning set forth in Section
3.2(a).

       

      1.10.       
 “Modifications” has
the meaning set forth in Section 7.5.

       

      1.11.       
 “New
Trademarks” means any trademark or trade name, whether registered or not,
created by or licensed to Licensee for use in connection with the Volu-Sol
Product, but New Trademarks excludes Licensed Trademarks.

       

      1.12.         “Patents” means all
patents used in the design or manufacture of the Volu-Sol Product and listed on
Exhibit A.

       

      1.13.         “Product
Documentation” means all designs, specifications, manuals, instructions,
drawings and other such work created by Licensor describing the manufacture and
performance of the Volu-Sol Product (including such materials relating to
Software incorporated into the Volu-Sol Product).

       

      1.14.         “Product Marketing
Materials” has the meaning set forth in Section 2.3.

       

      1.15.         “Purchase Order” has
the meaning set forth in Section 4.3.

       

      1.16.         “Software” means the
entire software application developed by Licensor to provide functionality to
the Volu-Sol Product and to monitor and manage the Volu-Sol Product in the form
used by Licensor as of the Effective Date (including all software and firmware
incorporated into the Volu-Sol Product and all software and source code licensed
to Licensor from RemoteMDx, Inc.), expressed in a fully compiled or assembled
series of instructions in machine language, which will guide the operation of a
processor; modifications and improvements made thereto by Licensor and
commercially released from time to time; and all documentation, manuals,
instructions and other similar work prepared by Licensor that is reasonably
necessary to permit Licensee to operate the Software in the manner intended, but
Software does not include Third Party Software.

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      1.17.         “Start-up Services”
means the services provided by Licensor as agreed upon by the parties and
attached hereto as Exhibit D for the
purpose of establishing one or more Licensee Monitoring Center(s) as further
described in Section 3.2.

       

      1.18.         “Sublicensees” has the
meaning set forth in Section 2.6.

       

      1.19.         “Supplied Product” has
the meaning set forth in Section 4.7.

       

      1.20.         “Term” has the meaning
set forth in Section 9.1.

       

      1.21.         “Territory” means the
countries listed on Exhibit C.

       

      1.22.         “Third Party Software”
means all software licensed by Licensor from third parties, other than open
source software, that is integrated into the Software or the Volu-Sol Product,
as set forth on Exhibit E as the
same shall be updated from time to time and in any event promptly after Licensor
obtains any new Third Party Software.

       

      1.23.         “Translated Materials”
means documents, software, training materials, product materials, scripts,
technical documentation and related information that has been translated by
Licensee for use in the Territory.

       

      1.24.         “Upgrade” has the
meaning set forth in Section 3.4.

       

      1.25.         “Volu-Sol Product”
means the GPS-based personal tracking system currently in a prototype format
that is targeted to the consumer end-user, (through any channel) and that
attaches to the individual with health, mobility or other health concerns or
impairments so that he or she can communicate to a third party if needed, the
Software incorporated into such product, all improvements, modifications and
derivatives based on such product or Software, and all Intellectual Property
Rights in any of the foregoing, including, without limitation, such rights in
the Patents.

       

      1.26.         “Volu-Sol Product
Warranty” has the meaning set forth in Section 4.17.

       

      1.27.         “Warranty Procedures”
has the meaning set forth in Section 4.17.

       

      2.         
   License
Grants.

       

      2.1.           Product
License.  Licensor hereby grants to Licensee (including its
present and future affiliates), and Licensee accepts, an exclusive,
sublicensable and transferable (subject to the provisions hereof) license under
the Licensed Intellectual Property to make, have made, market, distribute, sell
and otherwise commercially exploit the Volu-Sol Product in the Territory during
the Term, subject to all the terms and conditions of this
Agreement.  As used in this Agreement, “exclusive” means that Licensor
shall not, during the Term, have any right to make, have made, market,
distribute, sell or otherwise commercially exploit the Volu-Sol Product in the
Territory or to authorize any affiliate or third party to do
so.

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      2.2.           Trademark
Licenses.

       

      (a)    
       Licensor hereby grants to Licensee
(including its present and future affiliates), and Licensee accepts, an
exclusive, sublicensable and transferable (subject to the provisions hereof)
license to use the Licensed Trademarks in connection with the Volu-Sol Product,
Product Marketing Materials relating to such Product or on related Translated
Materials in the Territory, subject to the terms and conditions of this
Agreement.  Licensee may, at its option, place Licensed Trademarks or
New Trademarks, or a combination of the foregoing, on the Volu-Sol
Product.  Notwithstanding the foregoing, Licensor may use any
corporate trademark in the Territory for general corporate purposes, provided
Licensor first obtains Licensee’s written consent, not to be unreasonably
withheld and that such Volu-Sol Trademark is not used in connection with the
Volu-Sol Product or any product competitive similar to the Volu-Sol
Product.  Licensee acknowledges that Licensed Trademarks used in
connection with Volu-Sol Products may be visible in the Territory through the
Internet, and such display shall not be deemed a breach of this Agreement if
Licensor has not deliberately targeted customers in the Territory for the sale
of such products.

       

      (b)           Licensee
shall comply with Licensor’s policies and guidelines for use of the Licensed
Trademarks, as such policies and guidelines may be issued and revised from time
to time, and Licensee shall comply with proper legal standards.  The
initial or most prominent use of a Licensed Trademark in all materials shall be
followed by the appropriate trademark symbol (®
or TM).  Licensee acknowledges that the good will and value of
the Licensed Trademarks and Licensor’s name may be adversely affected unless the
Volu-Sol Product, Product Marketing Materials and Translated Materials that use
any Licensed Trademark meet the quality standards of Licensor.  Upon
written request from either of the Licensor, Licensee shall submit to Licensor
for review, within a commercially reasonable time, samples of requested Volu-Sol
Products, Product Marketing Materials or Translated Materials that make use of
the Licensed Trademarks.  If so requested in writing, Licensee shall
make any reasonable changes to such materials, provided that Licensee shall have
no obligation to cease use of or destroy materials where the use of the Licensed
Trademarks does not vary materially from any trademark use guidelines that are
developed by Licensee and Licensor and where the quality of the materials is
reasonably consistent with the quality of such materials produced by or for
Licensor.

       

      2.3.           Copyright
License.  Promptly after the Effective Date and from time to
time during the Term upon reasonable written request from Licensee, Licensor
shall furnish Licensee with electronic data files of artwork and information to
create materials for use in connection with the marketing, distribution and sale
of the Volu-Sol Product (“Product Marketing
Materials”).  Licensor hereby grants to Licensee (including its
present and future affiliates), and Licensee accepts, under Licensor’s
copyrights and other Intellectual Property Rights relating to the Product
Marketing Materials, a non-exclusive, sublicensable and transferable (subject to
the provisions hereof) right to use, reproduce, prepare derivative works
(including translations) of, display and distribute the Product Marketing
Materials in the Territory during the Term in connection with the Volu-Sol
Product.  If Licensor objects in writing to any versions of the
Product Marketing Materials prepared or used by Licensee, the parties shall
cooperate in good faith to resolve Licensor’s concerns.  Licensee
agrees to place such notices on Product Marketing Materials and translated
versions thereof as are reasonably requested by Licensor to protect its
copyrights in such materials and in the Licensed Trademarks used
therein.  Nothing in this Section 2.3 shall prevent or restrict
Licensee from freely creating, distributing or using any marketing materials for
Volu-Sol Products that do not incorporate the Licensed Trademarks and that do
not infringe on Licensor’s copyrights or other Intellectual Property
Rights.

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      2.4.           Software
License.  Licensor hereby grants to Licensee (including its
present and future affiliates), and Licensee accepts, a non-exclusive,
world-wide, sublicensable and transferable (subject to the provisions hereof)
license to access, distribute, display, host, translate into local languages in
the Territory and otherwise commercially exploit the Software in connection with
the manufacture, marketing, distribution and sale of Volu-Sol Products in the
Territory.  For clarity, monitoring services may be based outside of
the Territory provided such services are directed at Volu-Sol Products in the
Territory.

       

      2.5.           Technology
Transfer.  Licensor hereby grants to Licensee (including its
present and future affiliates), and Licensee accepts, an exclusive,
sublicensable and transferable (subject to the provisions hereof) license to the
Know How to make, have made, market, distribute, sell and otherwise commercially
exploit the Volu-Sol Product in the Territory during the Term, subject to all
the terms and conditions of this Agreement.  

       

      2.6.           Sublicenses.  Licensee
shall have the right to grant written sublicenses consistent with the terms of
this Agreement to third parties with the appropriate skills and qualifications
to exercise such sublicenses (“Sublicensees”).  Licensee
may appoint third-party distributors, resellers, dealers and sales
representatives for the Volu-Sol Product in the Territory (“Distributors”).  Licensee
shall require each Sublicensee and Distributor to agree in writing that it will
comply with the applicable restrictions of this Agreement, and shall take
commercially reasonable measures to ensure that all Sublicensees and
Distributors comply with such terms.

       

      3.     
       Licensor’s
Services.

       

      3.1.           Transfer of Know
How.  Within thirty (30) days of the Effective Date,
Licensor shall make available and disclose to Licensee or its designated
representatives all Know How in Licensor’s possession, custody or
control.  In addition, Licensor shall promptly disclose to Licensee
all additional Know How as it becomes available during the Term of the
Agreement.

       

      3.2.           Establishment of Monitoring
Centers; Software.

       

      (a)           Licensor
shall assist Licensee in the establishment of at least one Local Communications
and Customer Service Center inside the Territory within two (2) years of the
Effective Date.  A “Local Communications and
Customer Service Center” means a locally staffed surveillance operation
within the Territory, which will fully utilize a hosted Volu-Sol monitoring and
data center infrastructure in support of up to 5,000 in-service devices
within the Territory.

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      (b)           Licensor
shall provide the Start-up Services to assist Licensee in the establishment of
one or more Licensee Monitoring Center(s) at location(s) inside or outside the
Territory.  The parties agree to cooperate in good faith to create and
attach hereto as Exhibit D a document that sets out the general requirements of
the parties and a general timetable for establishing the first Licensee
Monitoring Center.  The parties will use commercial best efforts to
complete Exhibit D within six (6) months of the Effective Date.  A
“Licensee Monitoring
Center” means a dedicated monitoring and data center infrastructure under
Licensee’s financial and operational control and responsibility supporting all
in-service devices throughout the Territory.  The first Licensee
Monitoring Center will be capable of supporting the monitoring and tracking of
more than 5,000 customers utilizing the Licensor Software and Third Party
Software in a manner consistent with the functionality and performance
maintained by Licensor in its own monitoring centers at the time of
establishment of the Licensee Monitoring Center.

       

      (c)           Within
thirty (30) days after Licensee so requests in writing, Licensor shall
deliver to Licensee a detailed implementation plan (the “Implementation Plan”)
that sets forth the specific tasks and timetables required to have the first
Licensee Monitoring Center operational.  The Licensee Monitoring
Center will be deemed operational when a group of reasonably skilled technicians
selected by Licensee can demonstrate the functionality of the Volu-Sol Product
in a robust test environment suitable to show potential customers that the
system can be operated to meet their reasonable requirements, provided that the
parties may agree in writing to establish more detailed acceptance
criteria.

       

      (d)           For
the Start-up Services (including, for purposes of clarity, the services provided
by Volu-Sol under the Implementation Plan), Licensee shall pay Licensor the fees
mutually agreed upon and set forth in the Implementation Plan.

       

      3.3.           Software
Services.

       

      (a)           As
part of the Implementation Plan, Licensor shall set forth the requirements to
deliver and install the Software and Third Party Software in Licensee’s computer
environment, including specifications of all hardware required by
Licensee.  Prior to the date on which the Software is to be delivered
and installed, the parties shall agree in writing on the criteria for testing
and demonstrating that the Software is compatible and works with the Volu-Sol
Product in Licensee’s hosted environment.

       

      (b)           In
addition to any criteria agreed upon by the parties in writing, Licensor
warrants that, at the time the Software is delivered and installed, such
Software, including Third Party Software that is then part of Licensor’s
application, will operate in Licensee’s environment in substantially the same
way as such Software operates in Licensor’s hosted environment.  If
the Software does not meet such standards in Licensee’s hosted environment,
Licensor shall, at its own expense, correct the Software so that it functions
according to the standards provided.  If Licensor is unable to make
the required changes, Licensee may engage its own software developers, subject
to the terms and conditions of this Agreement, to make appropriate fixes to the
Software, and Licensee shall have the right to set off all such reasonable
expenses against payments required to be made by Licensee under this
Agreement.

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      (c)           During
the Term, Licensor agrees (i) to employ qualified software developers with the
skill and knowledge to maintain and support the Software and to integrate the
Software with any Third Party Software, or (ii) to enter into a service
agreement with one or more third parties that possess such
skills.  The parties acknowledge that Licensor has named Licensee as
an authorized sublicensee under a certain License Agreement by and between
Licensor and RemoteMDx effective February 27, 2009, pursuant to which, among
other things, Licensee (as authorized sublicensee under such agreement) is
entitled to certain software-related services from RemoteMDx.

       

      3.4.           Upgrades to Volu-Sol Product
and Software.  On at least a quarterly basis, Licensor shall
notify Licensee in writing of any upgrades or modifications to the Software or
the Volu-Sol Product developed by Licensor (directly or indirectly) that have
been made available to its own customers (including any bug-fixes) (each an
“Upgrade”).  Licensor
shall (a) describe such Upgrades and their purpose or functionality in
detail in such notice, and (b) without any additional charge to Licensee,
provide the Upgrade to Licensee in the format agreed upon by the parties, so
that such Upgrade may be used by Licensee according to the terms of this
Agreement.  Any Upgrade to the Volu-Sol Product or Software shall be
deemed part of the Volu-Sol Product or Software for purposes of this
Agreement.  Licensor reserves the right to modify the Volu-Sol Product
at any time.  Licensee may continue to distribute the prior version of
a Volu-Sol Product but will use reasonable efforts to adopt an Upgrade when
feasible.  If Licensor includes Third Party Software in any Upgrade,
Licensor shall use commercially reasonable efforts to ensure the
interoperability of such Third Party Software with the Software as it then
exists.  

       

      3.5.           Additional
Assistance.  From time to time, Licensee may request the
services of Licensor for any training, technical support assistance, marketing
assistance, custom development, and other services.  Licensor shall
give reasonable consideration to such requests, and the parties will reasonably
cooperate to agree upon the assistance to be provided by Licensor, subject to
payment as described in Section 3.6.

       

      3.6.           Professional Services Rates
and Fees.  Except as expressly provided in this Agreement,
Licensee agrees to pay Licensor for any training, technical support assistance,
marketing assistance, custom development, and other services provided by
Licensor to Licensee or its customers under this Agreement at reasonable rates
agreed upon by such parties in writing.  Licensee agrees to reimburse
Licensor for its reasonable travel expenses, provided that Licensee may adopt
reasonable travel policies from time to time regarding expenses that will be
reimbursed.

       

      4.         
   Supply
Agreement.

       

      4.1.           Manufacture and
Supply.  Licensor agrees that it will supply Licensee with the
quantities of Volu-Sol Product when so requested by Licensee and as agreed upon
under a Purchase Order, subject to the terms and conditions of this Agreement
and Licensor’s reasonable inventory limitations.  For purposes of
clarity, nothing in this Section 4 shall be construed to require Licensee
to purchase any Volu-Sol Product from Licensor.

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

      4.2.           Sales
Forecasts.  Within three (3) months after Licensee places
Volu-Sol Products in service with customers in the Territory, Licensee shall
provide to Licensor a written non-binding forecast for its expected sales of
Volu-Sol Products during the then-following fiscal
quarter.  Thereafter, within sixty (60) days after the beginning
of each of Licensee’s fiscal quarters, Licensee shall deliver to Licensor a
non-binding, rolling forecast of its expected orders for Volu-Sol Products in
each of the following two fiscal quarters.

       

      4.3.           Purchase
Orders.  Licensee may order Volu-Sol Products by submitting to
Licensor a purchase order that sets forth at minimum (a) a unique purchase order
number, (b) a description of the Volu-Sol Products to be purchased, including
any model number and all necessary technical information (including the country
in the Territory in which the unit will be deployed if applicable), (c) the
quantity of Volu-Sol Products requested, (d) the delivery address and mode of
shipment, (e) the delivery date and (f) the bill-to address (a “Purchase
Order”).  The price for any Volu-Sol Product ordered hereunder
shall be as set forth on Exhibit G
attached hereto.  This Agreement shall govern each Purchase Order, and
any conflict or inconsistency between the terms of this Agreement and a Purchase
Order shall be resolved in favor of this Agreement.  No terms in any
Purchase Order that conflict with this Agreement and no additional or
conflicting terms in any acknowledgement or acceptance from Licensor shall
govern.

       

      4.4.           Acceptance of Purchase
Orders.  Licensor shall notify Licensee within five (5)
Business Days of receipt of any Purchase Order setting forth either (a) its
acceptance of the Purchase Order; or (b) any proposed amendments to the
delivery date and/or quantities of the Volu-Sol Product
ordered.  Licensor shall use commercially reasonable efforts to
fulfill Licensee’s requests for Volu-Sol Product, provided that Licensor may
reject a Purchase Order if Licensee is past due on any undisputed payments
owed.  Failure by Licensor to notify Licensee within five (5)
Business Days of receipt of a Purchase Order shall be deemed acceptance of the
Purchase Order by Licensor.

       

      4.5.           Lead
Times.  Unless otherwise expressly agreed to in writing by
Licensor, Purchase Orders for Volu-Sol Products must allow for at least ninety
(90) days from the date of receipt of the Purchase Order to the date of
requested shipment of such Products, unless the number of units of Volu-Sol
Products under such Purchase Order exceeds 1,000, in which case the Purchase
Order must allow for at least 120 days from the date of receipt of the Purchase
Order to the date of requested shipment of such Products.

       

      4.6.           Cancellations.  A
Purchase Order may be canceled, in whole or in part, upon written notice by
Licensee at any time prior to thirty (30) days before the applicable delivery
date(s) specified in the applicable Purchase Order.  Licensee shall
reimburse Licensor for the actual costs incurred by Licensor that are directly
related to the cancelled Purchase Order and that cannot be mitigated by Licensor
within a reasonable time through returns, reuse or other commercially reasonable
measures.  Licensee shall have no right to cancel a Purchase Order
within thirty (30) days of the delivery date specified in the applicable
Purchase Order.  In no event shall Licensee be liable for any
incidental, special, consequential or punitive damages for cancellation of any
Purchase Orders submitted under this Agreement.

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

       

      4.7.           Shipment;
Delivery.  Licensor shall ship Volu-Sol Products in accordance
with each binding Purchase Order (each such Product so shipped by Licensor
including any Software included therewith, a “Supplied
Product”).  Unless otherwise expressly agreed by Licensor, all
Supplied Product deliveries shall be made FCA Incoterms 2000, Licensor’s
place of shipment, with shipping costs and insurance paid by
Licensee.  Title to Supplied Products shall pass to Licensee upon full
payment for the Supplied Products.  Licensee shall bear all risk of
loss or damage to Supplied Products during transit, and is responsible for
filing any necessary claims with the carrier or insurance
company.  All Supplied Products will be new unless the applicable
Purchase Order expressly states that a Supplied Product is reconditioned,
provided that such reconditioned Supplied Product will remain subject to the
Volu-Sol Warranty as if it were new.

       

      4.8.           Inspection;
Acceptance.  Notwithstanding any written confirmation from the
supplying party, all Supplied Products supplied hereunder shall be received by
Licensee subject to inspection and performance testing in a commercially
reasonable manner.  Licensee shall have ten (10) Business Days from
the date of receipt of each shipment of the Supplied Products to determine to
its reasonable satisfaction whether the Supplied Products are of the correct
count and conform to the applicable Product Documentation (the “Inspection
Period”).  Licensee’s failure to provide notice of acceptance
or rejection (pursuant to Section 4.9 below) to Licensor prior to the end of the
applicable Inspection Period shall be deemed acceptance.  The
acceptance of any Supplied Product shall in no way limit Licensee’s rights under
any warranty or for indemnification hereunder.

       

      4.9.           Rejection.

       

      (a)           If
Licensee reasonably determines that the Supplied Products do not conform to the
applicable Product Documentation, Licensee may, at its option, reject the same
by giving Licensor written notice thereof by no later than the close of business
on the last day of the applicable Inspection Period.  Licensee may
hold the Supplied Products for Licensor, may require replacements of
non-conforming Supplied Products or may return any rejected Supplied Products to
Licensor for credit for the full price of the rejected Supplied
Product.  If Licensee determines that the Supplied Products are not of
the correct count (excluding a reasonable percentage of excess units shipped by
Licensor as safety stock, as agreed by the parties), Licensee shall promptly
notify Licensor.  If the number of units shipped was excessive,
Licensee may at its option return the excess units at Licensor’s
expense.

       

      (b)           Licensee
shall maintain a safety stock of Volu-Sol Products, segregated at the premises
of Licensee, in an amount to be agreed upon in writing from time to time by the
parties.  All safety stock shall be the property of Licensor until
Licensee elects to take ownership of and pays for such safety
stock.  Until Licensee elects to take ownership of and pay for such
safety stock, Licensor shall own and maintain such safety stock.  If
Licensor made a good faith effort to deliver all the required Volu-Sol Products
and the number of such units nevertheless was insufficient, Licensor shall have
an additional twenty (20) Business Days to deliver the
shortfall.  Licensor may draw on any safety stock to satisfy the
shortfall.

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

       

      4.10.         Invoices.  Except
as expressly provided herein, Licensor shall invoice Licensee for the Supplied
Products price upon shipment of the Supplied Products under each Purchase
Order.

       

      4.11.         Payment.

       

      (a)           Payment
of undisputed amounts for Supplied Products shall be due thirty (30) days from
the date of receipt by Licensee of an invoice, provided, that if Licensee
rejects such Supplied Products pursuant to Section 4.9, and Licensor thereafter
delivers replacement Supplied Products, then payment shall be due in U.S.
dollars for such replacement Supplied Products within thirty (30) days after
receipt by Licensee of the invoice for replacement Supplied
Products.

       

      (b)           Notwithstanding
the payment terms of Section 4.11(a), if Licensee places a Purchase Order for
more than 1,000 units of Volu-Sol Products and Licensor’s third-party
manufacturers require cash prepayment before beginning such work, Licensee
agrees to pre-pay fifty percent (50%) of the estimated cost of such order, which
shall be due upon Licensor’s acceptance of the Purchase
Order.  Licensor agrees to grant to Licensee a Purchase Money Security
Interest in the pre-paid parts, and to take such actions and deliver such
documents as may be required to perfect such security
interest.  Remaining payments under such Purchase Order will be due
and payable according to the provisions of Section 4.11(a).

       

      4.12.         Quality
Standards.  Supplied Products delivered by Licensor pursuant to
this Agreement shall be of the same quality as like products sold by Licensor in
its usual channels of commerce.  Licensor acknowledges that, unless
expressly agreed in writing, Supplied Products will be manufactured to
electrical, technical and regulatory standards applicable to the country in the
Territory in which such Supplied Product will be deployed.

       

      4.13.         Restrictions.  For
all Supplied Products, except as expressly permitted under this Agreement,
Licensee shall refrain from doing any of the following without the prior written
consent of Licensor:

       

      (a)           removing
or altering, or permitting the removal or alteration of, any patent markings,
trademarks, logos, trade dress, service marks, trade names, corporate names,
written notices, serial numbers, labels, tags or other identifying marks,
symbols or legends of Licensor (including the Licensed Trademarks) or any third
party or any legal or other industry mandatory markings affixed to the Supplied
Products or their documentation, packaging or labeling; or

       

      (b)           affixing,
or permitting the affixing of, any of Licensee’s (or any third party’s)
trademarks, identifying marks, symbols or legends other than New Trademarks to
the Supplied Products or their packaging, or taking any other action which may
be detrimental to Licensor’s proprietary interests in the Supplied Products or
Licensor’s trademarks, logos, trade dress, service marks, trade names, domain
names, corporate names, patents, copyrights, trade secrets or any other
intellectual property rights used in connection herewith.

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

       

      4.14.         Taxes.  Licensee
shall be responsible for all sales, use, excise, value-added, and other federal,
state or local taxes, tariffs, and customs or import duties, arising out of this
Agreement (other than taxes on Licensor’s net income imposed by the
U.S.).

       

      4.15.         Records;
Audit.  Licensor shall maintain, for two (2) years from the
calendar year in question, adequate records concerning the manufacturing,
packaging and labeling of Supplied Products.  Licensor agrees that
Licensee may, directly or through its auditors or advisors, inspect, review and
obtain copies of such records from Licensor upon reasonable notice and subject
to confidentiality agreements reasonably satisfactory to Licensor for the
purposes of:  (a) confirming that Supplied Products were manufactured
in compliance with this Agreement, and (b) that the prices charged to Licensee
were calculated correctly.  Such audits shall occur not more often
than once per year (unless the previous audit disclosed a material
underpayment).  If an audit shows Licensee overpaid for any Supplied
Product, Licensor shall promptly pay to Licensee the amount of the overpayment
plus interest of 1% per month (12% APR) or the highest amount allowed by law,
whichever is less, accruing from the date on which the overpayment
occurred.

       

      4.16.         Recall.  If
either party is required by a governmental authority (or voluntarily decides) to
initiate a recall of any Volu-Sol Product, whether or not such recall has been
requested or ordered by any governmental authority or agency having jurisdiction
over either party, the parties shall cooperate in good faith to manage the
recall and to allocate the costs of the recall.

       

      4.17.         Returns.  The
parties acknowledge that Licensor provides a limited manufacturer’s warranty for
Supplied Products (the “Volu-Sol Product
Warranty”).  Licensee agrees to pass the Volu-Sol Product
Warranty through to end customers without alteration except as required to
comply with local law in the Territory.  The Volu-Sol Product Warranty
in effect as of thirty (30) days before any Volu-Sol Product is in service shall
be attached hereto by Licensor as Exhibit
F-1.  Within ninety (90) days after any Volu-Sol Product
Warranty takes effect, the parties shall cooperate in good faith to establish
procedures for processing claims by Licensee’s customers against the Volu-Sol
Product Warranty and shall attach such procedures as Exhibit F-2 (the
“Warranty
Procedures”)  Licensor shall reimburse Licensee for all its
costs relating to the processing claims against the applicable Volu-Sol Product
Warranty (but not, for purposes of clarity, relating to the process of claims of
additional warranties required by local law in the Territory).  Except
as expressly provided in this Agreement, all sales of Supplied Products by
Licensor to Licensee are final.

       

      5.        
    Obligations of
Licensee.

       

      5.1.           Due
Diligence.  Once any Volu-Sol Product is in service, Licensee
shall use commercially reasonable, diligent efforts to promote and sell the
Volu-Sol Product in the Territory.  Such efforts will include, without
limitation, actively marketing and selling Volu-Sol Product within the Territory
and maintaining adequate inventories of Volu-Sol Product.

       

      5.2.           Selection of
Manufacturers.  Licensor acknowledges and agrees that Licensee,
in manufacturing the Volu-Sol Product itself, may source parts for Volu-Sol
Products or have the Volu-Sol Products made outside of the
Territory.  At the request of Licensor, Licensee will reasonably
assist in facilitating discussions between Licensor and Licensee’s manufacturers
for Licensor to purchase Volu-Sol Products from such manufacturer(s) for sale by
Licensor outside of the Territory.  Licensee agrees that Licensor
shall be permitted to purchase from approved manufacturers selected or
identified by Licensee under this Section 5.2.

      
        
           

        

        
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      5.3.           No
Diversion.  Licensee shall use commercially reasonable efforts
to prevent the diversion of Volu-Sol Products outside of the Territory, and
Licensor shall use commercially reasonable efforts to prevent the diversion of
Volu-Sol Products by other of Licensor’s distributors or sublicensees into the
Territory.  Each party shall notify the other of diversion and take
reasonable, mutually agreed-upon actions.  Notwithstanding the
foregoing, the parties agree that it shall not be deemed a breach of this
Agreement if the parties have taken commercially reasonable efforts to prevent
diversion.  Licensor acknowledges that in the ordinary course
Licensee’s customers may travel outside the Territory, and Licensee may freely
provide all the services permitted under this Agreement to such customer while
traveling.  Licensor further agrees that Licensee shall not be deemed
in violation of this Agreement if Licensee enters into a contract with a
customer who is a resident in the Territory for the Volu-Sol Product and that
customer subsequently relocates outside the Territory, and Licensee may, for
purposes of clarity, continue to serve that customer regardless of the person’s
place of residence, including renewals.  Subject to the prior written
consent of Licensor, Licensee may enter into a bulk transaction for the use of
Volu-Sol Products with customers whose operations are substantially within the
Territory and shall permit such customer to use a portion of the Volu-Sol
Products outside of the Territory.

       

      5.4.           Staff.  Licensee
will have sufficient technical, sales, and marketing staff to develop a market
for the Volu-Sol Product and to handle inquiries from potential customers in the
Territory regarding the Volu-Sol Product and be able to respond within a
reasonable time to technical support inquiries and to all sales leads provided
by Licensor or others.

       

      5.5.           Limited
Warranty.  Licensee will ensure that a written limited
warranty, in a form consistent with the Volu-Sol Product Warranty (the “Licensee Product
Warranty”), is provided to each customer in connection with each sale of
a Product unit manufactured by Licensee and bearing a Licensed
Trademark.

       

      5.6.           Customer
Support.  Except as expressly provided in this Agreement
(including, without limitation, Section 11.3 and the Warranty Procedures),
Licensee will be responsible for and adequately provide all necessary warranty
and after-sales support to customers who purchase Volu-Sol Product from
Licensee, directly or indirectly.

       

      6.       
     Financial
Terms.

       

      6.1.           Royalties.  In
consideration for the rights and licenses granted by Licensor, Licensee will pay
to Licensor each calendar quarter a royalty as described on Exhibit G attached
hereto for each Volu-Sol Product unit during such quarter that is in service,
active and monitored in the Territory, less credits given to customers because a
unit was active and monitored but no longer in service or other such
reason.  Payment shall be made within thirty (30) days of the end of
the applicable calendar quarter.  Any amounts not paid within the
stipulated time shall accrue interest at the rate of 1% per month (12% APR) or
the highest rate allowed by law, whichever is less.  Licensee’s
payment shall be accompanied by a report setting forth the number of Volu-Sol
Product units distributed by Licensee during such quarter in each country in the
Territory, and the calculation of royalties due.

       

      
        
           

        

        
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      6.2.           Audit.  Licensee
shall maintain, for two (2) years from the calendar year in question, adequate
records concerning the manufacturing and distribution of Volu-Sol Products
(including Volu-Sol Product units in service but excluding records relating to
Licensee’s manufacturing processes) so that Licensor may determine that the
royalties hereunder were accurately calculated.  Licensee agrees that
Licensor may, directly or through its auditors or advisors, inspect, review and
obtain copies of such records from Licensee upon reasonable notice and subject
to confidentiality agreements reasonably satisfactory to Licensee for the
purposes of confirming that the royalties hereunder were accurately
calculated.  Such audits shall occur not more often than once per year
(unless the previous audit disclosed a material underpayment).  If an
audit shows that license fees were underpaid, Licensee shall promptly pay the
amount due plus interest as set forth above.

       

      7.      
      Intellectual
Property.

       

      7.1.           Licensed Intellectual
Property.  Licensee acknowledges that, as between Licensee and
Licensor, Licensor owns all Intellectual Property Rights in and to the Volu-Sol
Product and the Licensed Intellectual Property.  Licensee agrees not
to contest Licensor’s ownership of such Licensed Intellectual Property, and
Licensee hereby assigns to Licensor any rights it may obtain in such Licensed
Intellectual Property.  All goodwill accrued through such use of the
Licensed Trademarks shall inure exclusively to benefit of
Licensor.  Licensee further acknowledges and agrees that, as between
Licensee and Licensor, Licensor shall retain all copyrights to any Product
Marketing Material modified by Licensee (including, for purposes of clarity,
Translated Works) if such Product Marketing Material or Translated Work includes
any Licensed Trademark, and Licensee hereby assigns to Licensor all its
copyrights in such work.  Except as set forth in the preceding
sentence, as between Licensee and Licensor, Licensee shall own all rights in any
of Licensee’s modifications to the Product Marketing Material, subject to
Licensor’s ownership of the original materials.

       

      7.2.           Licensee Intellectual
Property.  Licensor acknowledges that, as between Licensee and
Licensor, Licensee owns all Intellectual Property Rights in and to any New
Trademarks.  Licensor agree not to contest Licensee’s ownership of
such New Trademarks, unless such New Trademark infringes an existing trademark
held by Licensor.  Except as provided in the previous sentence,
Licensor hereby assigns to Licensee any rights it may obtain in such New
Trademarks.

       

      7.3.           No
Confusion.  Neither party shall adopt, use or register any
words, phrases or symbols which are identical to or confusingly similar to the
other party’s trademarks, logos, trade dress, service marks, domain names, trade
names or corporate names, except as expressly permitted
herein.  Neither party shall register, nor seek to have registered,
the other party’s trademarks, logos, trade dress, service marks, trade names,
domain names or corporate names.  Except as expressly provided in this
Agreement, each party shall be solely responsible for, and may exercise its sole
discretion in, deciding whether to apply for and prosecute applications for
registration of its own trademarks, logos, trade dress, service marks, trade
names or corporate names or domain names in any jurisdiction and whether to
maintain any such registrations therefor.

      
        
           

        

        
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      7.4.           Patent
Marking.  Licensee shall mark all Volu-Sol Products
manufactured by Licensee (whether directly or through third parties) under the
terms of this Agreement in accordance with the applicable patent marking laws of
any country in the Territory where such Volu-Sol Products are sold.

       

      7.5.           Modifications.  The
parties agree that, as between Licensor and Licensee, all modifications,
translations, and other derivative works of the Software or Product
Documentation by Licensee and its employees and independent contractors
hereunder (collectively, “Modifications”) shall
be considered a “work made for hire” under copyright law, and that all right,
title, and interest in such Modifications is and shall be owned by
Licensor.  To the extent such work for hire doctrine is inapplicable
for any reason, in consideration of the rights and licenses granted to Licensee
under this Agreement, Licensee hereby irrevocably assigns to Licensor any and
all of its right, title and interest in and to such Modifications and agrees to
execute any additional documents reasonably requested by Licensor to evidence
Licensor’s ownership of the same.  Licensee shall enter into written
contracts consistent with this Section 7.5 with employees and independent
contractors who undertake Modifications on behalf of Licensee.  All
permitted Modifications created by Licensee or under its direction shall be
subject to the license grant and other terms and conditions of this
Agreement.  On at least a quarterly basis, Licensee will notify
Licensor in writing of any significant Modifications developed by Licensee
relating to the Volu-Sol Product.  Licensee shall (a) describe such
Modifications and their purpose or functionality in detail in such notice, and
(b) if reasonably requested by Licensor, provide the Modification to the
requesting Licensor in the format agreed upon by the parties, without any
additional charge to the requesting Licensor.

       

      7.6.           Filings, Maintenance and
Renewal.

       

      (a)           Because
some countries require licensors to register trademarks or file a copy of this
Agreement with a government agency, Licensee shall give Licensor advance written
notice of each particular country in which Volu-Sol Products bearing a Licensed
Trademark will be distributed.  The parties agree to cooperate with
regard to the preparation and filing of any applications, renewals or other
documentation necessary or useful to protect Licensor’s Intellectual Property
Rights in the Licensed Trademarks.

       

      (b)           Licensor
shall have the primary right to determine whether to file or maintain
registrations for any of its Licensed Trademarks in the
Territory.  The parties shall mutually agree upon the initial
registrations to be made in the Territory, and Licensor agrees to make such
registrations at its own cost, not to exceed $25,000.  Thereafter,
Licensee may request that Licensor maintain registrations for a Licensed
Trademark for a country or class in the Territory, and Licensor shall take such
action at Licensor’s expense, provided that Licensor shall incur no additional
expense for initial registrations.  If Licensor does not wish to make
any other initial filing, Licensee may do so at its own expense; provided,
however, that Licensee shall make all such filings and registrations solely in
the name of Licensor or its designee.  Licensor shall be responsible
for all fees related to maintaining registrations.  Licensee may make
renewal filings and deduct the reasonable out-of-pocket costs actually incurred
by Licensee for maintaining registrations from royalties or other amounts
payable to Licensor under this Agreement.

      
        
           

        

        
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      (c)           Should
local counsel of a party reasonably recommend that Licensee be appointed as a
recorded licensee of Licensor for its Licensed Trademarks in the Territory
because (i) Licensor reasonably determines that such license should be recorded
with the appropriate trademark or customs office as reasonably necessary to
protect Licensor’s rights in its Licensed Trademarks, then Licensor shall
prepare and file the necessary documents subject to Licensee’s approval, which
shall not be unreasonably withheld or delayed; or (ii) Licensee reasonably
determines that such license should be recorded with the appropriate trademark
or customs office as reasonably necessary to protect Licensee’s ability to
enforce its rights in the Territory, Licensor shall prepare and file the
necessary documents on behalf of Licensee.  Licensee agrees to sign
any documents reasonably necessary for Licensor to cause any recordals to be
terminated as to any Volu-Sol Product upon termination of the license applicable
to such Product hereunder.

       

      7.7.           Registering Patents in
Territory.  Licensor will use its best efforts to register in
each country in the Territory all Patents as promptly as reasonably
practicable.

       

      8.           
 Enforcement and
Defense of Infringement Claims.

       

      8.1.           Notification.  The
parties shall reasonably cooperate in providing notice to each other in writing
(a “Notice of Alleged
Infringement”) if a party becomes aware of any use of a Licensed
Intellectual Property in the Territory which may infringe on the rights therein
of Licensor.

       

      8.2.           Action by Licensor to
Enforce.  Licensor shall have the primary right, but not the
obligation, to determine whether to institute and/or pursue any proceedings to
enforce any rights in the Licensed Intellectual Property, as well as the right
to select counsel.  Licensee shall cooperate, in a commercially
reasonable manner, with Licensor in any such suit, including being joined as a
party with respect to such infringement (and execute any documents necessary to
effectuate the same) if necessary under the applicable rules of civil procedure
to effect standing, and Licensee shall be reimbursed for reasonably incurred
expenses.  Licensor will be solely responsible for the costs of such
action and will retain all recoveries and awards, provided that, prior to any
such litigation, Licensor shall offer to Licensee the option to share equally
the expenses of such action and to share equally any recoveries and
awards.  Notwithstanding any other provision to the contrary, in no
event shall Licensee be required to satisfy or comply with any settlement or
other agreement concerning its use of the Licensed Intellectual Property to
which Licensee has not consented (such consent not to be unreasonably withheld
or delayed).  If Licensor declines in writing to institute or pursue a
proceeding under this Section 8.2, Licensee may undertake such action as
provided in Section 8.3 and Licensee shall be entitled to 100% of any
recovery or award in any such action or proceeding.

       

      8.3.           Action by Licensee to
Enforce.  If applicable law in any jurisdiction in the
Territory requires that Licensee enforce rights in the Licensed Intellectual
Property against alleged infringers, or if Licensor declines in writing to
enforce its rights in the Licensed Intellectual Property with respect to the
alleged infringement set forth in the Notice of Alleged Infringement, Licensee
shall have the right, but not the obligation, to enforce such rights with
respect to Licensed Intellectual Property subject to any direction Licensor
provides.  Licensor shall cooperate, in a commercially reasonable
manner, with Licensee in any such suit, including granting Licensee the right to
bring suit in Licensor’s name (and execute any documents necessary to effectuate
the same) if necessary under the applicable rules of civil procedure to effect
standing, and Licensor, as appropriate, shall be reimbursed for reasonably
incurred expenses.  Any recoveries and awards in excess of Licensee’s
costs and expenses, to the extent that such recoveries and awards are related to
Volu-Sol Product, shall be allocated equally between Licensee and
Licensor.

       

      
        
           

        

        
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      8.4.           Licensor Defense of
Third-Party Claims.  Licensor shall have the sole right to
defend the Licensed Intellectual Property against imitation, infringement or any
claim of prior use.  Licensee shall cooperate, in a commercially
reasonable manner, with Licensor, at Licensor’s reasonable request and
Licensor’s expense, in connection with the defense of any such
claim.

       

      9.         
   Term
and Termination.

       

      9.1.           Term of
Agreement.  The initial term of this Agreement shall be for the
period beginning on the Effective Date and continuing six (6) years (the “Initial
Term”).  Thereafter, this Agreement shall automatically renew
for two additional terms of two years each (each such term, a “Renewal Term” and
together with the Initial Term, the “Term”) unless
Licensee provides sixty (60) days’ written notice of its intent to terminate
before the end of the Initial Term or any Renewal Term.

       

      9.2.           Termination for
Cause.  Either party may terminate this Agreement for a
material breach that remains uncured for sixty (60) days after delivery of
written notice of such breach.

       

      9.3.           Termination without
Cause.  After two (2) years from the Effective Date, Licensee
may terminate this Agreement for any reason upon thirty (30) days’ notice to
Licensor.

       

      9.4.           Termination for
Insolvency.  If either party files for bankruptcy, ceases to do
business for more than thirty (30) days or is generally unable to meet its
financial obligations, the other party may terminate this Agreement immediately
by providing written notice.

       

      9.5.           Effect of
Termination.  Upon termination of this Agreement for any
reason, the parties shall have the following rights and
obligations:

       

      (a)           All
licenses granted by Licensor to Licensee shall terminate, except as necessary to
permit Licensee to exercise its rights under Section 9.6;

       

      (b)           Each
party as a Recipient agrees to return all Confidential Information received from
the Discloser or to certify in writing that such Confidential Information has
been destroyed;

       

      (c)           Licensee,
at its option, may continue to provide service and support with respect to
Volu-Sol Products in service as of the effective date of termination or placed
in service pursuant to Section 9.6(c), for a period of up to three (3) years
after termination of this Agreement, provided, however, that Licensee continues
to pay the applicable royalties in connection with Volu-Sol Product that remain
in service;

      
        
           

        

        
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      (d)           Licensor
agrees to repay to Licensee all of its direct, reasonable expenses for
Modifications during Term that are used or repurposed by Licensor or a
subsequent distributor or sublicensee after termination of this Agreement by
paying to Licensee an amount as specified on Exhibit G
attached hereto per day per unit that any product using such Modifications is in
service, active and monitored within the Territory.  The remaining
balance owing to Licensee under this Section 9.5(d) will be due and payable
to Licensee on the third anniversary of the termination date.

       

      9.6.           Termination
Inventory.

       

      (a)           Within
thirty (30) days after the termination of this Agreement, Licensee shall prepare
and deliver to Licensor a written summary of Volu-Sol Product and Product
Marketing Materials remaining in its inventory, including work in
process.

       

      (b)           Licensor
shall have the option, exercisable within ten (10) days after receipt of the
written inventory received from Licensee, to purchase all or any portion of
Volu-Sol Products for a purchase price equal to Licensee’s
cost.  Licensee shall deliver to Licensor the Volu-Sol Product
purchased, within five (5) days after receipt of notice exercising its option to
purchase, and Licensor shall pay the purchase price within thirty (30) days
after receipt of all items purchased.  Unless otherwise expressly
agreed by Licensee, all Volu-Sol Product deliveries shall be made FCA
Incoterms 2000, Licensee’s place of shipment, with shipping costs and
insurance paid by Licensor.  Title to Volu-Sol Products shall pass to
Licensor upon full payment for the Volu-Sol Products.  Licensor shall
bear all risk of loss or damage to Volu-Sol Products during transit, and is
responsible for filing any necessary claims with the carrier or insurance
company.

       

      (c)           For
a period of one (1) year after the expiration of Licensor’s option to purchase
inventory under this Section 9.6, Licensee may complete work in process, place
finished Volu-Sol Product in service to customers and use all Product Marketing
Materials remaining in inventory, on a non-exclusive basis and in accordance
with all of applicable terms of this Agreement.  Any items in the
inventory, including Volu-Sol Product manufactured by or for Licensee, not sold
and remaining after the selling period provided for in this Section 9.6 shall be
delivered to Licensor, disposed of, or destroyed in accordance with Licensor’s
written instructions.

       

      10.           Confidentiality.

       

      10.1.         “Confidential
Information” means all information disclosed by one party (the “Discloser”) to any
other party (the “Recipient”) (in
writing, orally or in any other form) that is designated, at or before the time
of disclosure, as confidential or that reasonably should be understood by the
Recipient to be confidential.  Confidential Information does not
include information or material that (a) is now, or hereafter becomes, through
no act or failure to act on the part of the Recipient, generally known or
available; (b) is or was known by the Recipient at or before the time such
information or material was received from the Discloser, as evidenced by a
contemporaneous writing; (c) is furnished to the Recipient by a third party that
is not under an obligation of confidentiality to the Discloser with respect to
such information or material; or (d) is independently developed by the
Recipient, as evidenced by a contemporaneous writing.

       

      
        
           

        

        
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      10.2.         Restrictions on
Use.  The Recipient shall hold Confidential Information in
confidence and shall not disclose to third parties or use such information for
any purpose whatsoever other than as necessary in order to fulfill its
obligations or exercise its rights under this Agreement.  The
Recipient shall take all reasonable measures to protect the confidentiality of
the other party’s Confidential Information in a manner that is at least
protective as the measures it uses to maintain the confidentiality of its own
Confidential Information of similar importance but in any event using reasonable
care.  Notwithstanding the foregoing, the Recipient may disclose the
other party’s Confidential Information (a) to employees and consultants that
have a need to know such information, provided that each such employee and
consultant is under a duty of nondisclosure that is consistent with the
confidentiality and nondisclosure provisions herein, and (b) to the extent the
Recipient is legally compelled to disclose such Confidential Information,
provided that the Recipient shall give advance notice of such compelled
disclosure to the other party, and shall cooperate with the other party in
connection with any efforts to prevent or limit the scope of such disclosure or
use of the Confidential Information.

       

      11.           Representations and
Warranties.

       

      11.1.         Licensor Representations and
Warranties.  Licensor represents and warrants
that:

       

      (a)           it
is duly organized, validly existing and in good standing under the laws of its
jurisdiction of incorporation or organization, and that it has the requisite
power and authority to execute and deliver this Agreement and to perform all of
its obligations hereunder;

       

      (b)           the
execution, delivery and performance by Licensor of this Agreement have been duly
authorized and approved by all necessary action by Licensor, and assuming due
authorization, execution and delivery by Licensor, this Agreement constitutes
the legal, valid and binding obligations of Licensor, enforceable against
Licensor in accordance with its terms;

       

      (c)           the
execution and delivery of this Agreement and the performance of Licensor’s
obligations hereunder do not conflict with, violate, breach, constitute a
default under, or require any consent under any contract between Licensor and
any third party;

       

      (d)           it
has the right to grant all licenses granted to Licensee under this
Agreement;

       

      (e)           other
than licenses to Third Party Software and certain grants of rights made to
Licensee under the RemoteMDx Agreement, Licensor has granted to Licensee all
Intellectual Property Rights necessary to make, have made, market, distribute,
sell and otherwise commercially exploit the Volu-Sol Product in the Territory in
the manner contemplated by this Agreement;

      
        
           

        

        
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      (f)    
       the Volu-Sol Products, Product
Marketing Materials, and the Software, and the use thereof, do not and, during
the Term, will not infringe, violate or constitute misappropriation or
unauthorized use of the copyright, patent, trade secret, license or other
intellectual property, proprietary or contract rights of any third party in any
manner that would have an adverse effect on Licensee’s use and enjoyment
thereof;

       

      (g)           the
Supplied Products delivered by Licensor shall (i) conform to the Product
Documentation and to the quality standards set forth in this Agreement; (ii) be
free and clear of any lien or encumbrance; (iii) be merchantable; and (iv)
except as provided herein, be new;

       

      (h)           when
installed on Licensee’s servers by Licensor pursuant to the terms of this
Agreement, the Software, including Third Party Software that is then part of
Licensor’s application, will operate in substantially the same way as such
software operates in Licensor’s hosted environment as of such installation
date;

       

      (i)    
       the Software does not and will not
contain any computer code (i) designed to disrupt, disable or harm the operation
thereof, or any other associated software, hardware, computer system or network,
(ii) that would disable or impair the operation thereof based on the elapsing of
a period of time, the exceeding of an authorized number of users or copies, or
the advancement to a particular date or other numeral, or (iii) that would
permit access by Licensor or any third party to cause such disablement or
impairment, or any other harmful, malicious or hidden procedures, routines or
mechanisms that would cause the Software to malfunction or to damage or corrupt
data, storage media, programs, equipment or communications, or otherwise
interfere with the operations of Licensee, its affiliates or its
customers;

       

      (j)       
    the Software does not and will not contain any computer
code that would impose any requirements on how the products of, or other
intellectual property used by, Licensee are licensed or otherwise distributed to
third parties; and

       

      (k)           it
does and, during the Term, shall comply with all published laws, regulations,
rules and orders applicable to the performance of its obligations under this
Agreement.

       

      11.2.        Licensee Representations and
Warranties.  Licensee represents and warrants
that:

       

      (a)           it
is duly organized, validly existing and in good standing under the laws of its
jurisdiction of incorporation or organization, and that it has the requisite
power and authority to execute and deliver this Agreement and to perform all of
its obligations hereunder;

       

      (b)           the
execution, delivery and performance by Licensee of this Agreement have been duly
authorized and approved by all necessary action by Licensee, and assuming due
authorization, execution and delivery by Licensee, this Agreement constitutes
the legal, valid and binding obligations of Licensee, enforceable against
Licensee in accordance with its terms;

       

      
        
           

        

        
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      (c)           the
execution and delivery of this Agreement and the performance of Licensee’s
obligations hereunder do not conflict with, violate, breach, constitute a
default under, or require any consent between Licensee and any third party;
and

       

      (d)           it
will not make any warranties to customers for the Volu-Sol Products,
except (i) those warranties contained in the Volu-Sol Product Warranty
for Supplied Products, (ii) additional warranties required under local
law in the Territory, and (iii) warranties contained in the Licensee
Product Warranty.

       

      11.3.         Manufacturers’
Warranties.  Licensor agrees that the Volu-Sol Product Warranty
shall apply to Licensee’s customers in the Territory for all Supplied Products,
and that Licensor shall be responsible for all valid claims against Supplied
Products under the Volu-Sol Product Warranty.  Licensor agrees that it
will not materially alter the Volu-Sol Product Warranty without the prior
written consent of Licensee.  Subject to the terms of the Warranty
Procedures, Licensor agrees to promptly process any warranty claim under the
Volu-Sol Product Warranty.  Licensee agrees that it shall be
responsible for and process claims under the Licensee Product Warranty for
manufacturing defects of those Products manufactured by
Licensee.  Licensee, to the exclusion of Licensor, shall be solely
responsible for any warranty given by Licensee in excess of the Volu-Sol Product
Warranty.  Licensor is not responsible or liable if changes in laws,
regulations, operation, procedures, or services require modifying the Volu-Sol
Product or render it obsolete.

       

      11.4.         Disclaimer.  EXCEPT
AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE PARTIES HEREBY SPECIFICALLY
DISCLAIM ANY WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, THE
WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, VALIDITY,
ENFORCEABILITY, TITLE AND NON-INFRINGEMENT OF THIRD-PARTY RIGHTS, AND ANY
WARRANTIES THAT MAY ARISE DUE TO COURSE OF PERFORMANCE, COURSE OF DEALING OR
USAGE OF TRADE, WHETHER RELATED TO THE LICENSED INTELLECTUAL PROPERTY OR
OTHERWISE.

       

      12.           Indemnification.

       

      12.1.         Indemnification by
Licensor.  Licensor shall, at its own expense, indemnify,
defend, and hold harmless Licensee and its affiliates, and their respective
officers, directors, employees and representatives, from and against any claim,
demand, cause of action, liability, expense (including attorney’s fees and
costs), or damages to the extent arising from a third-party claim with respect
to:

       

      (a)           An
allegation that the Volu-Sol Product or Software infringes any third party
copyright or patent, or misappropriates any trade secret.  If the
Volu-Sol Product or Software is finally held or believed by Licensor to infringe
or its distribution is enjoined, in addition to holding Licensee harmless as
provided in this Section 12.1, Licensor may, at its option, (i) obtain a
license or grant of rights under the rights that have been infringed, (ii)
modify the Volu-Sol Product or Software so it is noninfringing or provide to
Licensee a substitute Volu-Sol Product or Software that is noninfringing, or
(iii) if the foregoing options are not commercially reasonable, Licensor may
terminate this Agreement upon written notice to Licensee.  Licensor
shall have no liability for infringement based on modification of the Volu-Sol
Product or Software by anyone other than Licensor, or the combination or use of
the Volu-Sol Product or Software with any other product, software, equipment, or
process not furnished by Licensor, if use of the Volu-Sol Product or Software
alone and in its unmodified form would not have been an
infringement.

      
        
           

        

        
          20

          
            

          

        

        
           

        

      

       

      (b)           Supplied
Products, including any claim alleging product liability or injury to property
or person or the failure of Supplied Products to meet requirements within the
Territory for electrical, technical and regulatory standards;

       

      (c)           the
design of the Volu-Sol Product or the Software, including any claim alleging
product liability, injury to property or person;

       

      (d)           the
Product Marketing Materials, including any claim alleging infringement of
intellectual property rights (except to the extent that Licensee is obligated to
provide indemnification for such infringement claim under Section 12.2);
and

       

      (e)           any
breach by Licensor of this Agreement.

       

      12.2.        Indemnification by
Licensee.  Licensee shall, at its own expense, indemnify,
defend, and hold harmless Licensor and its affiliates, and their respective
officers, directors, employees and representatives, from and against any claim,
demand, cause of action, liability, expense (including attorney’s fees and
costs), or damages to the extent arising from a third-party claim against
Licensor with respect to:

       

      (a)           infringement
of intellectual property rights based on Licensee’s Modifications;

       

      (b)           product
liability claims based on (i) Modifications made by Licensee, or (ii)
manufacturing defects in Volu-Sol Products manufactured by Licensee or its third
party manufacturers and not subject to indemnification by Licensor under
Section 12.1(c);

       

      (c)           acts
by a Sublicensee or Distributor which, if so taken by Licensee, would be a
breach of this Agreement; and

       

      (d)           any
breach by Licensee of this Agreement.

       

      12.3.        Procedures.  The
party seeking to be indemnified pursuant to this Section 12 (as applicable, the
“Indemnified
Party”) shall be entitled to indemnification hereunder only (a) if it
gives written notice to the party obligated to provide such indemnification
hereunder (the “Indemnifying Party”)
of any claims, suits or proceedings by third parties which may give rise to a
claim for indemnification with reasonable promptness after receiving written
notice of such claim (or, in the case of a proceeding, is served in such
proceeding); provided, however, that failure to give such notice shall not
relieve the Indemnifying Party of its obligation to provide indemnification,
except if and to the extent that the Indemnifying Party is actually and
materially prejudiced thereby, and (b) once the Indemnifying Party confirms in
writing to the Indemnified Party that it is prepared to assume its
indemnification obligations hereunder, the Indemnifying Party has sole control
over the defense of the claim, at its own cost and expense; provided, however,
that the Indemnified Party shall have the right to be represented by its own
counsel at its own cost in such matters.  Notwithstanding the
foregoing, the Indemnifying Party shall not settle or dispose of any such matter
in any manner which would require the Indemnified Party to make any admission,
or to take any action (except for ceasing use or distribution of the items
subject to the claim) without the prior written consent of the Indemnified
Party, which shall not be unreasonably withheld or delayed.  Each
party shall reasonably cooperate with the other party and its counsel in the
course of the defense of any such suit, claim or demand, such cooperation to
include using reasonable efforts to provide or make available documents,
information and witnesses and to mitigate damages.

       

      
        
           

        

        
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      13.           Disputes.

       

      13.1.         Litigation Rights
Reserved.  If any dispute arises with respect to the
unauthorized use of Confidential Information or the trademarks or other
intellectual property of a party by another party, the aggrieved party may seek
any available remedy at law or equity from a court of competent jurisdiction, in
addition to its right to arbitration as provided in Section 13.2.

       

      13.2.         Arbitration.  Except
as provided in Section 13.1 above, any dispute, claim or controversy which shall
arise out of or in relation to this Agreement or any Purchase Order, or the
breach thereof, shall be finally settled by binding arbitration at London,
England in accordance with the Rules of the LCIA (the “Rules”), which Rules
are deemed to be incorporated by reference.  Any such arbitration
shall be conducted by three (3) arbitrators appointed by mutual agreement of the
parties or, failing such agreement, in accordance with the Rules.  At
least one (1) arbitrator shall be an experienced business attorney with
background in international licensing and distribution of products under New
York law.  The arbitration shall be conducted in the English
language.  Notwithstanding any contrary provisions in the Rules, each
party shall bear its own costs and expenses of the arbitration and one-half
(1/2) of the fees and costs for the arbitrators unless the arbitrators determine
the fees and costs should be borne by one of the parties.  The
arbitrators may not award or assess punitive damages against either
party.

       

      13.3.         Governing
Law.  This Agreement shall be governed by and interpreted and
construed in accordance with the laws of New York, U.S.A., excluding its choice
of law rules and excluding the United Nations Convention on Contracts for the
International Sale of Goods.

       

      14.           Miscellaneous.

       

      14.1.         Limitation of
Liability.  IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE
OTHER, EXCEPT FOR CLAIMS RELATING TO A BREACH OF OBLIGATIONS UNDER SECTION 2
(LICENSE GRANTS), A BREACH OF SECTION 10 (CONFIDENTIALITY) AND PAYMENTS MADE
PURSUANT TO SECTION 12 (INDEMNIFICATION), FOR ANY SPECIAL, CONSEQUENTIAL,
INCIDENTAL, EXEMPLARY, INDIRECT OR PUNITIVE DAMAGES, OR FOR “LOST PROFITS” EVEN
IF ADVISED OF THE POSSIBILITY THEREOF, REGARDLESS OF THE THEORY OF LIABILITY
(INCLUDING WITHOUT LIMITATION, TORT, CONTRACT, NEGLIGENCE OR STRICT
LIABILITY).  EXCEPT AS OTHERWISE PROVIDED, ALL REMEDIES SHALL BE
CUMULATIVE AND NON-EXCLUSIVE.  NOTWITHSTANDING ANYTHING ELSE IN THIS
AGREEMENT, EXCEPT FOR CLAIMS RELATING TO A BREACH OF OBLIGATIONS UNDER SECTION 2
(LICENSE GRANTS), A BREACH OF SECTION 10 (CONFIDENTIALITY) AND PAYMENTS MADE
PURSUANT TO SECTION 12 (INDEMNIFICATION), THE TOTAL CUMULATIVE LIABILITY OF EACH
PARTY FOR ANY CLAIMS ARISING OUT OF THIS AGREEMENT SHALL BE LIMITED TO
U.S. $3,500,000.

      
        
           

        

        
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      14.2.         Notice.  All
notices, demands and other communications to be given or delivered under or by
reason of the provisions of this Agreement will be in writing, in the English
language, and will be deemed to have been given (a) when delivered if
personally delivered by hand, (b) when received if sent by a nationally or
internationally recognized overnight courier service (receipt requested),
(c) seven (7) Business Days after being mailed, if sent by first class
mail, return receipt requested, or (d) when receipt is acknowledged by an
affirmative act of the party receiving notice, if sent by facsimile, e-mail,
telecopy or other electronic transmission device (provided that such an
acknowledgement does not include an acknowledgment generated automatically by a
facsimile, e-mail, telecopy machine or other electronic transmission
device).  Notices, demands and communications to Licensor and Licensee
will, unless another address is specified in writing, be sent to the address
indicated below:

       

      If to
Licensee:

       

      euromicron
AG

      Speicherstrasse
1

      D-60327
Frankfurt am Main

      Germany

      Attn:  Dr.
Willibald Späth, CEO]

      Facsimile
No.:  +49 (0) 69 63 15 83-17

       

      With a
copy of legal notices to (which shall not constitute notice):

       

      Dorsey &
Whitney LLP

      136 South
Main Street, Suite 1000

      Salt Lake
City, Utah  84010

      Attn:  Nolan S.
Taylor

      Facsimile
No.:  (801) 933-7373

       

      If to
Licensor:

      

      Volu-Sol
Reagents Corporation

      5095 West
2100 South

      Salt Lake
City, Utah

      Attn:  Michael
G. Acton, CFO

      Facsimile
No.:  (801) 974-9553

      
        
           

        

        
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      With a
copy of legal notices to (which shall not constitute notice):

       

      Durham
Jones & Pinegar

      111 East
Broadway, Suite 900

      Salt Lake
City, Utah  84111

      Attn:  Kevin
R. Pinegar

      Facsimile
No.:  (801) 415-3500

       

      14.3.         Entire Agreement;
Modification.  This Agreement (including all Exhibits attached
hereto), when executed and delivered, contains the complete agreement between
the parties as to the subject matter thereof and supersedes any prior
understandings, agreements or representations by or between the parties, written
or oral.  This Agreement may only be amended or modified by a separate
writing signed by the parties hereto.

       

      14.4.         Further
Assurances.  Each party shall, at any time, and from time to
time, prior to or after the Effective Date, at reasonable request of the other
party, execute and deliver to the other such instruments and documents and shall
take such actions as may be required to more effectively carry out the terms of
this Agreement.

       

      14.5.         Waiver.  A
party’s failure to insist on strict performance of any provision of this
Agreement shall not be deemed a waiver of any of its rights or remedies, nor
shall it relieve the other party from performing any subsequent obligation
strictly in accordance with the terms of this Agreement.  No waiver
shall be effective unless it is in writing and signed by the party against whom
enforcement is sought.

       

      14.6.         Survival.  The
provisions of Sections 2.4, 2.5, 4.14, 4.15, 4.17, 6.2, 7, 8, 9.4, 9.5, 10,
11, 12, 13 and 14 and all defined terms shall survive termination or expiration
of this Agreement for any reason.

       

      14.7.         Assignment.  This
Agreement may not be assigned by any party without the prior written permission
of the other parties, provided, however, that any party may, without permission
of another party, upon written notice to the other parties, assign this
Agreement to any entity that acquires all of or substantially all of its capital
stock or its assets connected to the business to which this Agreement relates,
whether through purchase, merger, consolidation or otherwise.  Any
attempted assignment in violation of this provision shall be void.

       

      14.8.         Force
Majeure.  No party shall be liable to the other for any loss or
damage attributable to, and neither party shall deemed to be in default
hereunder as a result of, any failure or delay in performance caused by force
majeure.  For purposes of this Agreement, the term “force majeure”
shall include strike, lockout, earthquake, hurricane, flood, fire, or other acts
of God or nature, war, rebellion, civil disorders, piracy, laws, regulations,
acts of civil or military authorities (including the denial or cancellation of
any export or other necessary license), and any other causes beyond the
reasonable control of the party whose performance is affected.  Both
parties shall use all reasonable efforts to minimize the consequences of force
majeure.  Without limiting its obligations under the Volu-Sol Product
Warranty, Licensor is not liable for nonperformance or faulty performance of
Volu-Sol Products caused by any act or omission of an unaffiliated or unrelated
third party (including any emergency services providers or unauthorized repair
persons expressly excluding manufacturers of Volu-Sol Products), or by equipment
failure, equipment or facility shortage, signal failure or interference (by
buildings, tunnels, geographic features, etc.), or other force majeure events
beyond Licensor’s control.

      
        
           

        

        
          24

          
            

          

        

        
           

        

      

       

      14.9.         Captions.  The
captions of the various sections and subsections of this Agreement are for the
convenience of reference only and are not binding provisions of this Agreement,
nor shall they have delimiting effect or interpretive weight
hereunder.

       

      14.10.       Relationship of the
Parties.  This Agreement does not constitute, and is not
intended to give rise to, a partnership or joint venture among the
parties.  Each party will operate under the terms of this Agreement as
an independent entity and not as an agent for, or an employee of, any
other.

       

      14.11.       Severabililty.  If
any provision of this Agreement is deemed invalid or unenforceable, that
provision shall be modified, if possible, to the minimum extent necessary to
make it valid and enforceable, or if it cannot be so modified, then severed, and
the remainder of this Agreement shall remain in full force and
effect.

       

      14.12.       Insurance.  Each
party shall maintain comprehensive general liability insurance in effect to
protect Licensor and Licensee, beginning on the date Volu-Sol Products are first
placed in service in the Territory.  Licensee’s insurance shall be
primary coverage and shall name Licensor as an additional
insured.  Licensor’s insurance shall be primary coverage and shall
name Licensee as an additional insured.  Each policy shall provide a
minimum coverage of 2,000,000 Euros or the equivalent in U.S. Dollars as of
the date Volu-Sol Products are first placed in service in the
Territory.  Licensee and Licensor shall provide the other with a
certificate of insurance evidencing its compliance with the terms of this
Section 14.12 within thirty (30) days of the date Volu-Sol Products
are first placed in service in the Territory.  That certificate shall
specify that such policies will not be cancelled or terminated without at least
thirty (30) days advance written notice to such additional
insured.

       

      14.13.       Publicity.  Neither
Licensor nor Licensee will make any press release or other public disclosure
regarding this Agreement or the transactions contemplated hereby without the
other party’s express prior written consent, except as required under applicable
law or regulation, including SEC regulation, or by any governmental agency, in
which case the party required to make the press release or public disclosure
shall use commercially reasonable efforts to obtain the approval of the other
party as to the form, nature and extent of the press release or public
disclosure prior to issuing the press release or making the public
disclosure.

      
        
           

        

        
          25

          
            

          

        

        
           

        

      

      IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be executed as of the date first
set forth above.

       

      
        
          	
                  VOLU-SOL
      REAGENTS CORPORATION

                   

                   

                   

                   

                  By:  /s/ James
      Dalton                                                         
                    

                  Name: /s/ James
      Dalton                                                                    

                  Title: CEO                                                                                    
            

                	
                  EUROMICRON
      AG

                   

                   

                   

                   

                  By:  /s/ Edgar
      Bernardi                                                                    

                  Name:  Edgar
      Bernardi                                                                     

                  Title: COO                                                                          
                     

                
	 
      	 
      

        

      

      

      

      
        G-26

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